CoreCivic, Inc. (NYSE: CXW) (the Company)
announced today its financial results for the second quarter of
2023.
Damon T. Hininger, CoreCivic's President and Chief
Executive Officer, said, “Our second quarter financial results were
better than our forecast and we are increasing our financial
outlook for the year. We are increasing our financial outlook
despite the challenging labor market, above average inflation and a
higher interest rate environment. During the second quarter, we
continued to execute on our long-term capital allocation strategy
of reducing debt by repurchasing $21.0 million of our 8.25% Senior
Notes that are scheduled to mature on April 15, 2026, through open
market purchases."
Hininger continued, “The post-pandemic environment
is creating new challenges for a number of our government partners,
particularly as a result of the expiration of the Public Health
Emergency for COVID-19 that occurred in May, which ended the Title
42 closure of the southern border. Specifically, certain government
agencies are experiencing an increase in the need for correctional
and detention capacity. We believe the significant investments we
have made in our workforce have positioned us well to meet these
emerging needs."
Financial Highlights – Second Quarter 2023
- Total revenue of $463.7 million
- CoreCivic Safety revenue of $421.7
million
- CoreCivic Community revenue of $28.4
million
- CoreCivic Properties revenue of $13.6
million
- Net Income of $14.8 million
- Diluted earnings per share of $0.13
- Adjusted Diluted EPS of $0.12
- Normalized Funds From Operations per diluted share of
$0.33
- Adjusted EBITDA of $72.1 million
Second Quarter 2023 Financial Results Compared With
Second Quarter 2022
Net income in the second quarter of 2023 totaled
$14.8 million, or $0.13 per diluted share, compared with net income
in the second quarter of 2022 of $10.6 million, or $0.09 per
diluted share. Adjusted for special items, adjusted net income in
the second quarter of 2023 was $13.6 million, or $0.12 per diluted
share (Adjusted Diluted EPS), compared with adjusted net income in
the second quarter of 2022 of $16.2 million, or $0.13 per diluted
share. Special items for each period are presented in detail in the
calculation of Adjusted Net Income and Adjusted Diluted EPS in the
Supplemental Financial Information following the financial
statements presented herein.
The special items in the prior year quarter
contributed to the increase in net income per share of $0.04. The
$0.01 per share decline in Adjusted Diluted EPS occurred in part
due to the expiration of our contract with the Federal Bureau of
Prisons (BOP) at the McRae Correctional Facility on November 30,
2022, and ongoing labor market pressures, including above average
wage inflation, and higher staffing levels. Despite the expiration
of the contract with the BOP at the McRae facility, a facility we
sold to the state of Georgia in 2022, our renewal rate on owned and
controlled facilities remains high at 94% over the previous five
years. We believe our renewal rate on existing contracts remains
high due to a variety of reasons including the aged and constrained
supply of available beds within the U.S. correctional system, our
ownership of the majority of the beds we operate, the value our
government partners place in the wide range of recidivism-reducing
programs we offer to those in our care, and the cost effectiveness
of the services we provide.
Earnings before interest, taxes, depreciation and
amortization (EBITDA) was $71.8 million in the second quarter of
2023, compared with $71.1 million in the second quarter of 2022.
Adjusted EBITDA was $72.1 million in the second quarter of 2023,
compared with $78.8 million in the second quarter of 2022. Adjusted
EBITDA decreased from the prior year quarter primarily due to the
previously mentioned labor market pressures across our facility
portfolio, including above average wage inflation and higher
staffing levels in anticipation of increased occupancy, and the
expiration of our BOP contract at the McRae Correctional Facility
in November 2022. EBITDA at the McRae Correctional Facility was
$2.4 million during the second quarter of 2022.
Although labor market pressures continue to be more
difficult than historical norms, we have experienced improvements
in the number of applicants at many of our facilities which has
allowed us to achieve higher staffing levels in the second quarter
of 2023 than in the prior year quarter. We believe the investments
in staffing we made during the pandemic have positioned us to
manage the increased number of residents we began to experience in
the second quarter of 2023. On May 11, 2023, all remaining COVID-19
related health policies expired, most notably occupancy
restrictions on our facilities and Title 42, a policy that denied
entry at the United States border to asylum-seekers and anyone
crossing the border without proper documentation or authority in an
effort to contain the spread of COVID-19. Since the end of Title
42, the number of individuals in the custody of U.S. Immigration
and Customs Enforcement (ICE) has increased 43%. We have
experienced a similar increase within our facilities under contract
with ICE, which we believe was possible because of our investments
in staffing. Since May 11, 2023, through July 31, 2023, ICE
detention populations within our facilities have increased by
2,573, or 45%. Despite the difficult labor market, we have been
able to reduce certain labor-related expenses, such as registry
nursing, temporary wage incentives, and travel, each of which
moderated during the second quarter of 2023. We believe we can
further reduce these expenses as the tight labor market continues
to alleviate, which we expect will take additional time.
Funds From Operations (FFO) was $39.0 million, or
$0.34 per diluted share, in the second quarter of 2023, compared to
$34.3 million, or $0.28 per diluted share, in the second quarter of
2022. Normalized FFO, which excludes special items, was $37.8
million, or $0.33 per diluted share, in the second quarter of 2023,
compared with $40.7 million, or $0.34 per diluted share, in the
second quarter of 2022. Normalized FFO was impacted by the same
factors that affected Adjusted EBITDA.
Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO,
and Normalized FFO, and, where appropriate, their corresponding per
share amounts, are measures calculated and presented on the basis
of methodologies other than in accordance with generally accepted
accounting principles (GAAP). Please refer to the Supplemental
Financial Information and the note following the financial
statements herein for further discussion and reconciliations of
these measures to net income, the most directly comparable GAAP
measure.
Business Update
New Lease Agreement with the State of Oklahoma at the
Davis Correctional Facility. On June 14, 2023, we
announced that we entered into a lease agreement with the Oklahoma
Department of Corrections (ODOC) for the company-owned 1,670-bed
Davis Correctional Facility, which we currently report in our
CoreCivic Safety segment and operate under a management contract
with the ODOC. The management contract was scheduled to expire on
June 30, 2023. However, effective July 1, 2023, the Company entered
into a 90-day contract extension for the management contract, after
which time operations of the Davis facility will transfer from
CoreCivic to the ODOC in accordance with the new lease agreement.
We incurred a facility net operating loss of $0.9 million and $1.5
million for the three and six months ended June 30, 2023,
respectively. Annual lease revenue under the new lease agreement
will be $7.5 million during the base term, which we expect will
generate margins consistent with the average margin we report in
our Properties segment. The new lease agreement includes a base
term commencing October 1, 2023, with a scheduled expiration date
of June 30, 2029, and unlimited two-year renewal options. Upon
commencement of the new lease agreement, the Davis facility will be
reported in our CoreCivic Properties segment.
Share Repurchases
On May 12, 2022, our Board of Directors approved a share
repurchase program authorizing the Company to repurchase up to
$150.0 million of our common stock. On August 2, 2022, our Board of
Directors authorized an increase in our share repurchase program of
up to an additional $75.0 million in shares of our common stock, or
a total of up to $225.0 million. During the three and six months
ended June 30, 2023, we repurchased 0.1 million and 2.6 million
shares of our common stock, respectively, at an aggregate purchase
price of $0.7 million and $25.6 million, respectively, and in each
case excluding fees, commissions and other costs related to the
repurchases. Since the share repurchase program was authorized,
through June 30, 2023, we have repurchased a total of 9.2 million
shares at an aggregate price of $100.1 million under this share
repurchase program, excluding fees, commissions and other costs
related to the repurchases.
As of June 30, 2023, we had $124.9 million remaining under the
share repurchase program authorized by the Board of Directors.
Additional repurchases of common stock will be made in accordance
with applicable securities laws and may be made at management’s
discretion within parameters set by the Board of Directors from
time to time in the open market, through privately negotiated
transactions, or otherwise. The share repurchase program has no
time limit and does not obligate us to purchase any particular
amount of our common stock. The authorization for the share
repurchase program may be terminated, suspended, increased or
decreased by our Board of Directors in its discretion at any
time.
Debt Repayments
During the second quarter of 2023, we reduced our total debt
balance by $34.1 million, or $24.5 million, net of the change in
cash, increasing out total debt repaid for the six months ended
June 30, 2023, to $72.7 million, net of the change in cash. During
the second quarter of 2023, we purchased $21.0 million of our 8.25%
Senior Notes in open market purchases, reducing the outstanding
balance of the 8.25% Senior Notes to $593.1 million. We have no
debt maturities until the 8.25% Senior Notes mature in April
2026.
2023 Financial Guidance
Based on current business conditions, we are providing the
following update to our financial guidance for the full year
2023:
|
GuidanceFull Year 2023 |
Prior GuidanceFull Year 2023 |
|
$58.4 million to $66.4 million |
$51.2 million to $63.2 million |
|
$59.5 million to $67.5 million |
$53.5 million to $65.5 million |
|
$0.51 to $0.58 |
$0.44 to $0.55 |
|
$0.52 to $0.59 |
$0.46 to $0.57 |
|
$1.36 to $1.44 |
$1.29 to $1.40 |
- Normalized FFO per diluted share
|
$1.37 to $1.45 |
$1.31 to $1.42 |
|
$297.0 million to $303.0 million |
$291.3 million to $301.3 million |
|
$297.3 million to $303.3 million |
$293.6 million to $303.6 million |
During 2023, we expect to invest $68.0 million to $71.0 million
in capital expenditures, consisting of $36.0 million to $37.0
million in maintenance capital expenditures on real estate assets,
$25.0 million to $26.0 million for maintenance capital expenditures
on other assets and information technology, and $7.0 million to
$8.0 million for other capital investments.
Supplemental Financial Information and Investor
Presentations
We have made available on our website supplemental financial
information and other data for the second quarter of 2023.
Interested parties may access this information through our website
at http://ir.corecivic.com/ under “Financial Information” of the
Investors section. We do not undertake any obligation and disclaim
any duties to update any of the information disclosed in this
report.
Management may meet with investors from time to
time during the third quarter of 2023. Written materials used in
the investor presentations will also be available on our website
beginning on or about August 28, 2023. Interested parties may
access this information through our website at
http://ir.corecivic.com/ under “Events & Presentations” of the
Investors section.
Conference Call, Webcast and Replay
Information
We will host a webcast conference call at 10:00 a.m. central
time (11:00 a.m. eastern time) on Tuesday, August 8, 2023, which
will be accessible through the Company's website at
www.corecivic.com under the “Events & Presentations” section of
the "Investors" page. To participate via telephone and join the
call live, please register in advance here
https://register.vevent.com/register/BI245ce05fd4c64a6ead7845124358177d.
Upon registration, telephone participants will receive a
confirmation email detailing how to join the conference call,
including the dial-in number and a unique passcode.
About CoreCivic
CoreCivic is a diversified, government-solutions company with
the scale and experience needed to solve tough government
challenges in flexible, cost-effective ways. We provide a broad
range of solutions to government partners that serve the public
good through high-quality corrections and detention management, a
network of residential and non-residential alternatives to
incarceration to help address America’s recidivism crisis, and
government real estate solutions. We are the nation’s largest owner
of partnership correctional, detention and residential reentry
facilities, and one of the largest prison operators in the United
States. We have been a flexible and dependable partner for
government for 40 years. Our employees are driven by a deep sense
of service, high standards of professionalism and a responsibility
to help government better the public good. Learn more at
www.corecivic.com.
Forward-Looking Statements
This press release contains statements as to our beliefs and
expectations of the outcome of future events that are
"forward-looking" statements within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended, and the Private
Securities Litigation Reform Act of 1995, as amended. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from the
statements made. These include, but are not limited to, the risks
and uncertainties associated with: (i) changes in government
policy, legislation and regulations that affect utilization of the
private sector for corrections, detention, and residential reentry
services, in general, or our business, in particular, including,
but not limited to, the continued utilization of our correctional
and detention facilities by the federal government, including as a
consequence of the United States Department of Justice, or DOJ, not
renewing contracts as a result of President Biden's Executive Order
on Reforming Our Incarceration System to Eliminate the Use of
Privately Operated Criminal Detention Facilities, or the Private
Prison EO, impacting utilization primarily by the BOP and the
United States Marshals Service, and the impact of any changes to
immigration reform and sentencing laws (we do not, under
longstanding policy, lobby for or against policies or legislation
that would determine the basis for, or duration of, an individual’s
incarceration or detention); (ii) our ability to obtain and
maintain correctional, detention, and residential reentry facility
management contracts because of reasons including, but not limited
to, sufficient governmental appropriations, contract compliance,
negative publicity and effects of inmate disturbances;
(iii) changes in the privatization of the corrections and
detention industry, the acceptance of our services, the timing of
the opening of new facilities and the commencement of new
management contracts (including the extent and pace at which new
contracts are utilized), as well as our ability to utilize
available beds; (iv) general economic and market conditions,
including, but not limited to, the impact governmental budgets can
have on our contract renewals and renegotiations, per diem rates,
and occupancy; (v) fluctuations in our operating results
because of, among other things, changes in occupancy levels;
competition; contract renegotiations or terminations; inflation and
other increases in costs of operations, including a continuing rise
in labor costs; fluctuations in interest rates and risks of
operations; (vi) the impact resulting from the termination of Title
42, the federal government's policy to deny entry at the United
States southern border to asylum-seekers and anyone crossing the
southern border without proper documentation or authority in an
effort to contain the spread of the coronavirus and related
variants, or COVID-19; (vii) our ability to successfully identify
and consummate future development and acquisition opportunities and
realize projected returns resulting therefrom; (viii) our ability
to have met and maintained qualification for taxation as a real
estate investment trust, or REIT, for the years we elected REIT
status; and (ix) the availability of debt and equity financing on
terms that are favorable to us, or at all. Other factors that could
cause operating and financial results to differ are described in
the filings we make from time to time with the Securities and
Exchange Commission.
We take no responsibility for updating the information contained
in this press release following the date hereof to reflect events
or circumstances occurring after the date hereof or the occurrence
of unanticipated events or for any changes or modifications made to
this press release or the information contained herein by any
third-parties, including, but not limited to, any wire or internet
services.
CORECIVIC, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS)
ASSETS |
|
June 30,2023 |
|
December 31,2022 |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
41,840 |
|
|
$ |
149,401 |
|
Restricted cash |
|
|
13,256 |
|
|
|
12,764 |
|
Accounts receivable, net of
credit loss reserve of $7,771 and $8,008, respectively |
|
|
261,539 |
|
|
|
312,435 |
|
Prepaid expenses and other
current assets |
|
|
37,087 |
|
|
|
32,134 |
|
Assets held for sale |
|
|
- |
|
|
|
6,936 |
|
Total
current assets |
|
|
353,722 |
|
|
|
513,670 |
|
Real estate and related
assets: |
|
|
|
|
Property and equipment, net of accumulated depreciation of
$1,771,005 and $1,716,283, respectively |
|
|
2,141,714 |
|
|
|
2,176,098 |
|
Other real estate assets |
|
|
204,850 |
|
|
|
208,181 |
|
Goodwill |
|
|
4,844 |
|
|
|
4,844 |
|
Other assets |
|
|
322,651 |
|
|
|
341,976 |
|
|
|
|
|
|
Total
assets |
|
$ |
3,027,781 |
|
|
$ |
3,244,769 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses |
|
$ |
260,395 |
|
|
$ |
285,226 |
|
Current portion of long-term
debt |
|
|
13,243 |
|
|
|
165,525 |
|
Total
current liabilities |
|
|
273,638 |
|
|
|
450,751 |
|
|
|
|
|
|
Long-term debt, net |
|
|
1,058,816 |
|
|
|
1,084,858 |
|
Deferred revenue |
|
|
20,109 |
|
|
|
22,590 |
|
Non-current deferred tax
liabilities |
|
|
95,674 |
|
|
|
99,618 |
|
Other liabilities |
|
|
140,408 |
|
|
|
154,544 |
|
|
|
|
|
|
Total
liabilities |
|
|
1,588,645 |
|
|
|
1,812,361 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Preferred stock ― $0.01 par value; 50,000 shares authorized; none
issued and outstanding at June 30, 2023 and December 31, 2022,
respectively |
|
|
- |
|
|
|
- |
|
Common stock ― $0.01 par value; 300,000 shares authorized; 113,605
and 114,988 shares issued and outstanding at June 30, 2023 and
December 31, 2022, respectively |
|
|
1,136 |
|
|
|
1,150 |
|
Additional paid-in
capital |
|
|
1,787,207 |
|
|
|
1,807,689 |
|
Accumulated deficit |
|
|
(349,207 |
) |
|
|
(376,431 |
) |
Total stockholders’ equity |
|
|
1,439,136 |
|
|
|
1,432,408 |
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
3,027,781 |
|
|
$ |
3,244,769 |
|
CORECIVIC, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS)
|
|
For the Three Months EndedJune
30, |
|
For the Six Months EndedJune
30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
REVENUE: |
|
|
|
|
|
|
|
|
Safety |
|
$ |
421,743 |
|
|
$ |
416,354 |
|
|
$ |
839,393 |
|
|
$ |
830,602 |
|
Community |
|
|
28,364 |
|
|
|
25,775 |
|
|
|
54,778 |
|
|
|
49,890 |
|
Properties |
|
|
13,574 |
|
|
|
14,526 |
|
|
|
27,411 |
|
|
|
29,117 |
|
Other |
|
|
1 |
|
|
|
42 |
|
|
|
102 |
|
|
|
76 |
|
|
|
|
463,682 |
|
|
|
456,697 |
|
|
|
921,684 |
|
|
|
909,685 |
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
Operating |
|
|
|
|
|
|
|
|
Safety |
|
|
335,726 |
|
|
|
324,261 |
|
|
|
664,124 |
|
|
|
645,282 |
|
Community |
|
|
22,905 |
|
|
|
21,282 |
|
|
|
45,620 |
|
|
|
41,509 |
|
Properties |
|
|
3,324 |
|
|
|
3,377 |
|
|
|
6,685 |
|
|
|
6,659 |
|
Other |
|
|
53 |
|
|
|
80 |
|
|
|
116 |
|
|
|
179 |
|
Total operating
expenses |
|
|
362,008 |
|
|
|
349,000 |
|
|
|
716,545 |
|
|
|
693,629 |
|
General and administrative |
|
|
32,612 |
|
|
|
31,513 |
|
|
|
65,291 |
|
|
|
62,614 |
|
Depreciation and amortization |
|
|
31,615 |
|
|
|
32,259 |
|
|
|
62,657 |
|
|
|
64,287 |
|
Shareholder litigation expense |
|
|
- |
|
|
|
1,900 |
|
|
|
- |
|
|
|
1,900 |
|
|
|
|
426,235 |
|
|
|
414,672 |
|
|
|
844,493 |
|
|
|
822,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(18,268 |
) |
|
|
(21,668 |
) |
|
|
(37,419 |
) |
|
|
(44,588 |
) |
Expenses associated with debt repayments and refinancing
transactions |
|
|
(226 |
) |
|
|
(6,805 |
) |
|
|
(226 |
) |
|
|
(6,805 |
) |
Gain (loss) on sale of real estate assets, net |
|
|
(25 |
) |
|
|
1,060 |
|
|
|
(25 |
) |
|
|
3,321 |
|
Other income (expense) |
|
|
78 |
|
|
|
(37 |
) |
|
|
31 |
|
|
|
1,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES |
|
|
19,006 |
|
|
|
14,575 |
|
|
|
39,552 |
|
|
|
40,188 |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
(4,176 |
) |
|
|
(4,013 |
) |
|
|
(12,322 |
) |
|
|
(10,623 |
) |
NET INCOME |
|
$ |
14,830 |
|
|
$ |
10,562 |
|
|
$ |
27,230 |
|
|
$ |
29,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE |
|
$ |
0.13 |
|
|
$ |
0.09 |
|
|
$ |
0.24 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE |
|
$ |
0.13 |
|
|
$ |
0.09 |
|
|
$ |
0.24 |
|
|
$ |
0.24 |
|
CORECIVIC, INC. AND
SUBSIDIARIESSUPPLEMENTAL FINANCIAL
INFORMATION (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT
PER SHARE AMOUNTS)
CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED
EPS
|
For the Three Months EndedJune
30, |
|
For the Six Months EndedJune
30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
14,830 |
|
|
$ |
10,562 |
|
|
$ |
27,230 |
|
|
$ |
29,565 |
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
Expenses associated with debt repayments and refinancing
transactions |
|
226 |
|
|
|
6,805 |
|
|
|
226 |
|
|
|
6,805 |
|
Income tax expense (benefit) associated with change in corporate
tax structure |
|
(1,378 |
) |
|
|
- |
|
|
|
930 |
|
|
|
- |
|
Loss (gain) on sale of real estate assets, net |
|
25 |
|
|
|
(1,060 |
) |
|
|
25 |
|
|
|
(3,321 |
) |
Shareholder litigation expense |
|
- |
|
|
|
1,900 |
|
|
|
- |
|
|
|
1,900 |
|
Income tax benefit for special items |
|
(75 |
) |
|
|
(2,041 |
) |
|
|
(75 |
) |
|
|
(1,416 |
) |
Adjusted net income |
$ |
13,628 |
|
|
$ |
16,166 |
|
|
$ |
28,336 |
|
|
$ |
33,533 |
|
Weighted average common shares outstanding – basic |
|
113,628 |
|
|
|
120,529 |
|
|
|
113,840 |
|
|
|
120,662 |
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
Restricted stock-based awards |
|
324 |
|
|
|
817 |
|
|
|
631 |
|
|
|
721 |
|
Weighted average shares and assumed conversions - diluted |
|
113,952 |
|
|
|
121,346 |
|
|
|
114,471 |
|
|
|
121,383 |
|
Adjusted Diluted EPS |
$ |
0.12 |
|
|
$ |
0.13 |
|
|
$ |
0.25 |
|
|
$ |
0.28 |
|
CORECIVIC, INC. AND
SUBSIDIARIESSUPPLEMENTAL FINANCIAL
INFORMATION (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT
PER SHARE AMOUNTS)
CALCULATION OF FUNDS FROM OPERATIONS AND NORMALIZED
FUNDS FROM OPERATIONS
|
For the Three Months EndedJune
30, |
|
For the Six Months EndedJune
30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
14,830 |
|
|
$ |
10,562 |
|
|
$ |
27,230 |
|
|
$ |
29,565 |
|
Depreciation and amortization
of real estate assets |
|
24,198 |
|
|
|
24,501 |
|
|
|
48,369 |
|
|
|
48,667 |
|
Loss (gain) on sale of real
estate assets, net |
|
25 |
|
|
|
(1,060 |
) |
|
|
25 |
|
|
|
(3,321 |
) |
Income tax expense (benefit)
for special items |
|
(7 |
) |
|
|
283 |
|
|
|
(7 |
) |
|
|
908 |
|
Funds From Operations |
$ |
39,046 |
|
|
$ |
34,286 |
|
|
$ |
75,617 |
|
|
$ |
75,819 |
|
|
|
|
|
|
|
|
|
Expenses associated with debt
repayments and refinancing transactions |
|
226 |
|
|
|
6,805 |
|
|
|
226 |
|
|
|
6,805 |
|
Income tax expense (benefit)
associated with change in corporate tax structure |
|
(1,378 |
) |
|
|
- |
|
|
|
930 |
|
|
|
- |
|
Shareholder litigation
expense |
|
- |
|
|
|
1,900 |
|
|
|
- |
|
|
|
1,900 |
|
Income tax benefit for special
items |
|
(68 |
) |
|
|
(2,324 |
) |
|
|
(68 |
) |
|
|
(2,324 |
) |
Normalized Funds From Operations |
$ |
37,826 |
|
|
$ |
40,667 |
|
|
$ |
76,705 |
|
|
$ |
82,200 |
|
|
|
|
|
|
|
|
|
Funds From Operations Per
Diluted Share |
$ |
0.34 |
|
|
$ |
0.28 |
|
|
$ |
0.66 |
|
|
$ |
0.62 |
|
Normalized Funds From
Operations Per Diluted Share |
$ |
0.33 |
|
|
$ |
0.34 |
|
|
$ |
0.67 |
|
|
$ |
0.68 |
|
CALCULATION OF EBITDA AND ADJUSTED EBITDA
|
For the Three Months EndedJune
30, |
|
For the Six Months EndedJune
30, |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
14,830 |
|
$ |
10,562 |
|
|
$ |
27,230 |
|
$ |
29,565 |
|
Interest expense |
|
21,214 |
|
|
24,292 |
|
|
|
43,303 |
|
|
49,684 |
|
Depreciation and
amortization |
|
31,615 |
|
|
32,259 |
|
|
|
62,657 |
|
|
64,287 |
|
Income tax expense |
|
4,176 |
|
|
4,013 |
|
|
|
12,322 |
|
|
10,623 |
|
EBITDA |
$ |
71,835 |
|
$ |
71,126 |
|
|
$ |
145,512 |
|
$ |
154,159 |
|
Expenses associated with debt
repayments and refinancing transactions |
|
226 |
|
|
6,805 |
|
|
|
226 |
|
|
6,805 |
|
Loss (gain) on sale of real
estate assets, net |
|
25 |
|
|
(1,060 |
) |
|
|
25 |
|
|
(3,321 |
) |
Shareholder litigation
expense |
|
- |
|
|
1,900 |
|
|
|
- |
|
|
1,900 |
|
Adjusted EBITDA |
$ |
72,086 |
|
$ |
78,771 |
|
|
$ |
145,763 |
|
$ |
159,543 |
|
CORECIVIC, INC. AND
SUBSIDIARIESSUPPLEMENTAL FINANCIAL
INFORMATION (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT
PER SHARE AMOUNTS)
GUIDANCE -- CALCULATION OF ADJUSTED NET INCOME, FUNDS
FROM OPERATIONS, EBITDA & ADJUSTED EBITDA
|
For the Year EndingDecember 31,
2023 |
|
Low End of Guidance |
|
High End of Guidance |
Net income |
$ |
58,394 |
|
|
$ |
66,394 |
|
Expenses associated with debt repayments and refinancing
transactions |
|
226 |
|
|
|
226 |
|
Income tax expense associated with change in corporate tax
structure |
|
930 |
|
|
|
930 |
|
Loss on sale of real estate assets, net |
|
25 |
|
|
|
25 |
|
Income tax benefit for special items |
|
(75 |
) |
|
|
(75 |
) |
Adjusted net income |
$ |
59,500 |
|
|
$ |
67,500 |
|
|
|
|
|
Net income |
$ |
58,394 |
|
|
$ |
66,394 |
|
Depreciation and amortization of real estate assets |
|
97,250 |
|
|
|
97,750 |
|
Loss on sale of real estate assets, net |
|
25 |
|
|
|
25 |
|
Income tax benefit for special items |
|
(7 |
) |
|
|
(7 |
) |
Funds From Operations |
$ |
155,662 |
|
|
$ |
164,162 |
|
Expenses associated with debt repayments and refinancing
transactions |
|
226 |
|
|
|
226 |
|
Income tax expense associated with change in corporate tax
structure |
|
930 |
|
|
|
930 |
|
Income tax benefit for special items |
|
(68 |
) |
|
|
(68 |
) |
Normalized Funds From
Operations |
$ |
156,750 |
|
|
$ |
165,250 |
|
Diluted EPS |
$ |
0.51 |
|
|
$ |
0.58 |
|
Adjusted Diluted EPS |
$ |
0.52 |
|
|
$ |
0.59 |
|
FFO per diluted share |
$ |
1.36 |
|
|
$ |
1.44 |
|
Normalized FFO per diluted
share |
$ |
1.37 |
|
|
$ |
1.45 |
|
|
|
|
|
Net income |
$ |
58,394 |
|
|
$ |
66,394 |
|
Interest expense |
|
84,750 |
|
|
|
83,750 |
|
Depreciation and
amortization |
|
127,750 |
|
|
|
127,750 |
|
Income tax expense |
|
26,106 |
|
|
|
25,106 |
|
EBITDA |
$ |
297,000 |
|
|
$ |
303,000 |
|
Expenses associated with debt repayments and refinancing
transactions |
|
226 |
|
|
|
226 |
|
Loss on sale of real estate assets, net |
|
25 |
|
|
|
25 |
|
Adjusted EBITDA |
$ |
297,251 |
|
|
$ |
303,251 |
|
|
|
|
|
|
|
|
|
NOTE TO SUPPLEMENTAL FINANCIAL INFORMATION
Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and
Normalized FFO, and, where appropriate, their corresponding per
share metrics are non-GAAP financial measures. The Company believes
that these measures are important operating measures that
supplement discussion and analysis of the Company's results of
operations and are used to review and assess operating performance
of the Company and its properties and their management teams. The
Company believes that it is useful to provide investors, lenders
and securities analysts disclosures of its results of operations on
the same basis that is used by management.
FFO, in particular, is a widely accepted non-GAAP supplemental
measure of performance of real estate companies, grounded in the
standards for FFO established by the National Association of Real
Estate Investment Trusts (NAREIT). NAREIT defines FFO as net income
computed in accordance with GAAP, excluding gains (or losses) from
sales of property and extraordinary items, plus depreciation and
amortization of real estate and impairment of depreciable real
estate and after adjustments for unconsolidated partnerships and
joint ventures calculated to reflect funds from operations on the
same basis. As a company with extensive real estate holdings, we
believe FFO and FFO per share are important supplemental measures
of our operating performance and believe they are frequently used
by securities analysts, investors and other interested parties in
the evaluation of REITs and other real estate operating companies,
many of which present FFO and FFO per share when reporting results.
EBITDA, Adjusted EBITDA, and FFO are useful as supplemental
measures of performance of the Company's properties because such
measures do not take into account depreciation and amortization, or
with respect to EBITDA, the impact of the Company's tax provision
and financing strategies. Because the historical cost accounting
convention used for real estate assets requires depreciation
(except on land), this accounting presentation assumes that the
value of real estate assets diminishes at a level rate over time.
Because of the unique structure, design and use of the Company's
properties, management believes that assessing performance of the
Company's properties without the impact of depreciation or
amortization is useful. The Company may make adjustments to FFO
from time to time for certain other income and expenses that it
considers non-recurring, infrequent or unusual, even though such
items may require cash settlement, because such items do not
reflect a necessary or ordinary component of the ongoing operations
of the Company. Normalized FFO excludes the effects of such items.
The Company calculates Adjusted Net Income by adding to GAAP Net
Income expenses associated with the Company’s debt repayments and
refinancing transactions, and certain impairments and other charges
that the Company believes are unusual or non-recurring to provide
an alternative measure of comparing operating performance for the
periods presented.
Other companies may calculate Adjusted Net Income, EBITDA,
Adjusted EBITDA, FFO, and Normalized FFO differently than the
Company does, or adjust for other items, and therefore
comparability may be limited. Adjusted Net Income, EBITDA, Adjusted
EBITDA, FFO, and Normalized FFO and, where appropriate, their
corresponding per share measures are not measures of performance
under GAAP, and should not be considered as an alternative to cash
flows from operating activities, a measure of liquidity or an
alternative to net income as indicators of the Company's operating
performance or any other measure of performance derived in
accordance with GAAP. This data should be read in conjunction with
the Company's consolidated financial statements and related notes
included in its filings with the Securities and Exchange
Commission.
Contact: |
|
Investors: Cameron Hopewell -
Managing Director, Investor Relations - (615) 263-3024Financial
Media: David Gutierrez, Dresner Corporate Services - (312)
780-7204 |
CoreCivic (NYSE:CXW)
Historical Stock Chart
From Jun 2024 to Jul 2024
CoreCivic (NYSE:CXW)
Historical Stock Chart
From Jul 2023 to Jul 2024