CoreCivic, Inc. (NYSE: CXW) (the Company)
announced today its financial results for the fourth quarter and
full year 2023.
Damon T. Hininger, CoreCivic's President and Chief
Executive Officer, commented, "CoreCivic is experiencing strong
business momentum as we head into 2024. Our margins and occupancy
are progressing toward pre-COVID-19 levels. Labor availability and
wage inflation are normalizing. Our government partners are
increasingly looking to us to help solve their growing capacity and
infrastructure challenges, evidenced by the three new management
contracts and increase in overall utilization during the fourth
quarter. We have managed our business prudently, and we are
well-positioned to serve their growing needs."
Financial Highlights – Full Year 2023
- Total revenue of $1.90 billion
- CoreCivic Safety revenue of $1.73 billion
- CoreCivic Community revenue of $115.1
million
- CoreCivic Properties revenue of $49.9
million
- Net income of $67.6 million
- Diluted earnings per share of $0.59
- Adjusted Diluted EPS of $0.61
- Normalized FFO per diluted share of $1.47
- Adjusted EBITDA of $311.0 million
Commenting on financial results for the quarter,
Hininger added, "We are pleased with CoreCivic's financial
performance for 2023, as we exceeded the financial guidance for the
fourth quarter we provided in November 2023, and ended up in the
top half of the financial guidance range we provided in February
2023 for Net income, Diluted EPS, FFO per diluted share and EBITDA.
Importantly, we experienced a positive progression in our
population and occupancy during each quarter of 2023, and we ended
the year at 74% occupancy - our highest quarterly level since the
second quarter of 2020, near the onset of the COVID-19 pandemic.
The population increases came across federal, state and local
government partners, and we are thankful for the trust our partners
have in the essential solutions CoreCivic provides."
Hininger continued, "We are also very pleased with
our debt reduction progress. During 2023, we reduced total debt by
$158 million, and we ended the year with leverage, measured by net
debt to Adjusted EBITDA, at 2.8x - nearly in line with our
longer-term target of 2.25x-2.75x. Given the significant progress
on our debt reduction strategy, we continue to return capital to
shareholders through a share repurchase program, initiated in 2022.
During the year we repurchased 3.5 million shares of our common
stock, representing over 3% of our outstanding shares, at a total
cost of $38.1 million, or $10.97 per share. Our access to capital
remains strong, as evidenced by the amendment and extension of our
Bank Credit Facility, executed in October 2023, which increased the
credit facility's size and lengthened its maturity by over two
years to October 2028."
"Looking ahead," Hininger added, "we are excited to
have returned to a more normal operating environment, with most
issues relating to COVID-19, including Title 42 occupancy
restrictions and our most acute labor challenges, largely behind
us. We anticipate the continued positive population trends in 2024,
both through higher utilization of existing contracts and new
contracts signed in 2023. Facility operating margins are also
expected to show improvement compared to 2023, reflecting the
positive impact of higher occupancy on our leveraged operating
model, as well as the continued normalization of our operating
expenses. Against that, our guidance includes the impact of the
expected March 31, 2024 expiration of the lease of our California
City Correctional Center to the California Department of
Corrections and Rehabilitation, which generated $31.1 million in
rental revenue and $25.5 million in EBITDA in 2023."
Financial Highlights – Fourth Quarter 2023
- Total revenue of $491.2 million
- CoreCivic Safety revenue of $448.7
million
- CoreCivic Community revenue of $30.5
million
- CoreCivic Properties revenue of $12.0
million
- Net Income of $26.5 million
- Diluted earnings per share of $0.23
- Adjusted Diluted EPS of $0.23
- Normalized FFO per diluted share of $0.45
- Adjusted EBITDA of $90.0 million
Fourth Quarter 2023 Financial Results Compared With
Fourth Quarter 2022
Net income in the fourth quarter of 2023 increased
to $26.5 million, or $0.23 per diluted share, compared with net
income in the fourth quarter of 2022 of $24.4 million, or $0.21 per
diluted share. Adjusted for special items, adjusted net income in
the fourth quarter of 2023 increased to $26.4 million, or $0.23 per
diluted share (Adjusted Diluted EPS), compared with adjusted net
income in the fourth quarter of 2022 of $25.0 million, or $0.22 per
diluted share. Special items for each period are presented in
detail in the calculation of Adjusted Diluted EPS in the
Supplemental Financial Information following the financial
statements presented herein.
The increased adjusted per share amounts resulted
primarily from higher federal and state populations, particularly
at our facilities serving U.S. Immigration & Customs
Enforcement (ICE), combined with lower interest expense and a
decrease in shares outstanding, both resulting from our capital
allocation strategy. These earnings increases were partially offset
by the expiration of our lease with the Oklahoma Department of
Corrections (ODC) at our North Fork Correctional Facility on June
30, 2023, and tax credits reflected in the fourth quarter of 2022
that were available under the Coronavirus Aid, Relief and Economic
Security Act.
Our labor attraction and retention initiatives
continue, and our staffing levels have improved while the costs of
temporary labor resources, including associated travel expenses,
overtime and incentives, declined meaningfully from the prior year
quarter. The investments in our staffing place CoreCivic in a
strong position to manage increased populations resulting from the
end of Title 42 COVID-19 occupancy restrictions, which ended May
11, 2023. Under Title 42, asylum-seekers and others crossing the
border without proper documentation or authority were denied entry
at the United States border to contain the spread of COVID-19. From
mid-May 2023 through December 2023, the number of individuals in
the custody of ICE increased 74%. Over the same period, ICE
detention populations within our facilities increased 76%, which we
believe was possible, in part, because of our investments in
staffing.
Earnings before interest, taxes, depreciation and
amortization (EBITDA) was $90.1 million in the fourth quarter of
2023, compared with $87.0 million in the fourth quarter of 2022.
Adjusted EBITDA, which excludes special items, was $90.0 million in
the fourth quarter of 2023, compared with $87.7 million in the
fourth quarter of 2022. The increase in Adjusted EBITDA
was attributable to an increase in occupancy, combined with a
general reduction in temporary staffing incentives and related
labor costs, partially offset by the expiration of the lease with
the ODC at the North Fork facility.
Funds From Operations (FFO) increased to $51.0
million, or $0.44 per diluted share, in the fourth quarter of 2023,
compared to $48.8 million, or $0.42 per diluted share, in the
fourth quarter of 2022. Normalized FFO, which excludes special
items, increased to $51.3 million, or $0.45 per diluted share, in
the fourth quarter of 2023, compared with $49.1 million, or $0.42
per diluted share, in the fourth quarter of 2022, representing an
increase in Normalized FFO per share of 7%. Normalized FFO was
impacted by the same factors that affected Adjusted EBITDA, further
improved by a reduction in interest expense as a result of our debt
reduction strategy that is not reflected in Adjusted EBITDA, as
well as a 1% reduction in weighted average shares
outstanding.
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 Updates
Capital Strategy
Debt Repayments. We continued to make progress
on our debt reduction strategy, and our total debt repaid for the
twelve months ended December 31, 2023 was $157.8 million, or $130.3
million, net of the change in cash. We have no debt maturities
until April 2026 when our 8.25% Senior Notes, which have an
outstanding principal balance of $593.1 million, are scheduled to
mature.
Amendment and Extension of Bank Credit
Facility. On October 11, 2023, we entered into a Fourth
Amended and Restated Credit Agreement (New Bank Credit Facility) in
an aggregate amount of $400.0 million, effectively replacing our
Third Amended and Restated Credit Agreement dated May 12, 2022,
which was an aggregate amount of $350.0 million. The New Bank
Credit Facility, among other things, increases the available
borrowings under the revolving credit facility from $250.0 million
to $275.0 million and increases the size of the term loan from an
initial balance of $100.0 million to $125.0 million, extends the
maturity date to October 11, 2028 from May 12, 2026, and makes
conforming changes to replace the Bloomberg Short-Term Bank Yield
Index to the Secured Overnight Financing Rate. Further, financial
covenants were modified to remove the $100.0 million limit of
netting unrestricted cash and cash equivalents when calculating the
consolidated total leverage ratio and the consolidated secured
leverage ratio. At the closing of the New Bank Credit Facility, we
received $33.8 million of net borrowings before transaction costs
as a result of the increased size of the term loan, and the
revolving credit facility remains unused, except for $17.9 million
in outstanding letters of credit.
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 twelve months ended December 31, 2023, we
repurchased 0.9 million and 3.5 million shares of our common stock,
respectively, at aggregate purchase prices of $12.5 million and
$38.1 million, respectively, excluding fees, commissions and other
costs related to the repurchases. Since the share repurchase
program was authorized, through December 31, 2023, we have
repurchased a total of 10.1 million shares at an aggregate price of
$112.6 million, or $11.16 per share, excluding fees, commissions
and other costs related to the repurchases.
As of December 31, 2023, we had $112.4 million remaining under
the share repurchase program. 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.
New Management Contracts
New Management Contract with State of Montana.
On November 14, 2023, we announced a new management contact with
the state of Montana to care for up to 120 inmates at our 1,896-bed
Saguaro Correctional Facility in Eloy, Arizona. The initial term of
the contract is for two years, ending October 31, 2025. The
contract may be extended by mutual agreement in two-year intervals,
or any interval advantageous to the State. The total term,
including renewals, may not exceed seven years. The intake process
for the 120 inmates was complete as of December 31, 2023. As of
December 31, 2023, we also cared for approximately 875 residents
from Hawaii and nearly 600 residents from the state of Idaho at the
Saguaro Correctional Facility. The new contract represents an
expansion of our relationship with the state of Montana where we
also manage the fully occupied company-owned Crossroads
Correctional Center in Shelby, Montana for the state of Montana
pursuant to a separate management contract.
New Management Contract with State of
Wyoming. On November 16, 2023, we announced a new
management contact with the state of Wyoming to care for up to 240
inmates at the Company's 2,672-bed Tallahatchie County Correctional
Facility in Tutwiler, Mississippi. We previously cared for inmates
for Wyoming under a management contract that had not been utilized
since 2019. The term of the new contract runs through June 30,
2026. The intake process for the 240 inmates was complete as of
December 31, 2023.
New Management Contract with Harris County,
Texas. On November 16, 2023, we announced a new management
contract to care for up to 360 inmates at the Tallahatchie County
Correctional Facility. Upon mutual agreement, the County may access
an additional 360 beds at the Tallahatchie facility. The initial
contract term began on December 1, 2023, and ends November 30,
2024. The contract may be extended at the County's option for up to
four additional one-year terms. We began receiving inmates from
Harris County during the fourth quarter of 2023 and anticipate the
intake process to be complete during the first quarter of 2024.
We also cared for residents from the U.S. Marshals Service,
Wyoming, Vermont, South Carolina, the U.S. Virgin Islands,
Tallahatchie County (MS), and Hinds County (MS) at the Tallahatchie
County Correctional Facility.
2024 Financial Guidance
Based on current business conditions, we are providing the
following financial guidance for the full year 2024:
|
Full Year 2024 |
• Net income |
$65.0 million to $80.0 million |
• Diluted EPS |
$0.58 to $0.72 |
• FFO per diluted share |
$1.46 to $1.61 |
• EBITDA |
$300.3 million to $313.3 million |
During 2024, we expect to invest $69.0 million to $75.0 million
in capital expenditures, consisting of $30.0 million to $31.0
million in maintenance capital expenditures on real estate assets,
$32.0 million to $35.0 million for maintenance capital expenditures
on other assets and information technology, and $7.0 million to
$9.0 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 fourth 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 first quarter of 2024. Written materials used in
the investor presentations will also be available on our website
beginning on or about February 29, 2024. 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 Thursday, February 8, 2024, 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
/BI9f81fd3b3bcb458780947f04024c22e2. 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 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, impacting
utilization primarily by the United States Federal Bureau of
Prisons 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) government budget uncertainty, the
impact of the debt ceiling and the potential for government
shutdowns and changing budget priorities; (viii) our ability to
successfully identify and consummate future development and
acquisition opportunities and realize projected returns resulting
therefrom; (ix) 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 (x) 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, except as may be required by law.
CORECIVIC, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS) |
|
|
|
|
|
December 31, |
ASSETS |
|
|
2023 |
|
|
|
2022 |
|
Cash and cash equivalents |
|
$ |
121,845 |
|
|
$ |
149,401 |
|
Restricted cash |
|
|
7,111 |
|
|
|
12,764 |
|
Accounts receivable, net of
credit loss reserve of $6,827 and $8,008, respectively |
|
|
312,174 |
|
|
|
312,435 |
|
Prepaid expenses and other
current assets |
|
|
26,304 |
|
|
|
32,134 |
|
Assets held for sale |
|
|
7,480 |
|
|
|
6,936 |
|
Total current assets |
|
|
474,914 |
|
|
|
513,670 |
|
Real estate and related
assets: |
|
|
|
|
Property and equipment, net of accumulated depreciation of
$1,821,015 and $1,716,283, respectively |
|
|
2,114,522 |
|
|
|
2,176,098 |
|
Other real estate assets |
|
|
201,561 |
|
|
|
208,181 |
|
Goodwill |
|
|
4,844 |
|
|
|
4,844 |
|
Other assets |
|
|
309,558 |
|
|
|
341,976 |
|
Total assets |
|
$ |
3,105,399 |
|
|
$ |
3,244,769 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
Accounts payable and accrued
expenses |
|
$ |
285,857 |
|
|
$ |
285,226 |
|
Current portion of long-term
debt |
|
|
11,597 |
|
|
|
165,525 |
|
Total current liabilities |
|
|
297,454 |
|
|
|
450,751 |
|
Long-term debt, net |
|
|
1,083,476 |
|
|
|
1,084,858 |
|
Deferred revenue |
|
|
18,315 |
|
|
|
22,590 |
|
Non-current deferred tax
liabilities |
|
|
96,915 |
|
|
|
99,618 |
|
Other liabilities |
|
|
131,673 |
|
|
|
154,544 |
|
Total liabilities |
|
|
1,627,833 |
|
|
|
1,812,361 |
|
Commitments and
contingencies |
|
|
|
|
Preferred stock – $0.01 par
value; 50,000 shares authorized; none issued and outstanding at
December 31, 2023 and 2022, respectively |
|
|
— |
|
|
|
— |
|
Common stock – $0.01 par value;
300,000 shares authorized; 112,733 and 114,988 shares issued and
outstanding at December 31, 2023 and 2022, respectively |
|
|
1,127 |
|
|
|
1,150 |
|
Additional paid-in capital |
|
|
1,785,286 |
|
|
|
1,807,689 |
|
Accumulated deficit |
|
|
(308,847 |
) |
|
|
(376,431 |
) |
Total stockholders' equity |
|
|
1,477,566 |
|
|
|
1,432,408 |
|
Total liabilities and stockholders' equity |
|
$ |
3,105,399 |
|
|
$ |
3,244,769 |
|
|
|
|
|
|
CORECIVIC, INC. AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF OPERATIONS(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT
PER SHARE AMOUNTS) |
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
REVENUE: |
|
|
|
|
|
|
|
Safety |
$ |
448,704 |
|
|
$ |
430,247 |
|
|
$ |
1,731,421 |
|
|
$ |
1,684,035 |
|
Community |
|
30,499 |
|
|
|
26,994 |
|
|
|
115,068 |
|
|
|
103,263 |
|
Properties |
|
11,987 |
|
|
|
14,169 |
|
|
|
49,875 |
|
|
|
57,873 |
|
Other |
|
56 |
|
|
|
23 |
|
|
|
271 |
|
|
|
158 |
|
|
|
491,246 |
|
|
|
471,433 |
|
|
|
1,896,635 |
|
|
|
1,845,329 |
|
EXPENSES: |
|
|
|
|
|
|
|
Operating: |
|
|
|
|
|
|
|
Safety |
|
341,426 |
|
|
|
326,095 |
|
|
|
1,356,496 |
|
|
|
1,313,567 |
|
Community |
|
23,007 |
|
|
|
22,485 |
|
|
|
91,895 |
|
|
|
86,016 |
|
Properties |
|
4,077 |
|
|
|
3,121 |
|
|
|
13,829 |
|
|
|
13,682 |
|
Other |
|
52 |
|
|
|
268 |
|
|
|
210 |
|
|
|
527 |
|
Total operating expenses |
|
368,562 |
|
|
|
351,969 |
|
|
|
1,462,430 |
|
|
|
1,413,792 |
|
General and administrative |
|
36,866 |
|
|
|
34,892 |
|
|
|
136,084 |
|
|
|
127,700 |
|
Depreciation and amortization |
|
32,133 |
|
|
|
31,688 |
|
|
|
127,316 |
|
|
|
127,906 |
|
Shareholder litigation expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,900 |
|
Asset impairments |
|
- |
|
|
|
879 |
|
|
|
2,710 |
|
|
|
4,392 |
|
|
|
437,561 |
|
|
|
419,428 |
|
|
|
1,728,540 |
|
|
|
1,675,690 |
|
OTHER INCOME
(EXPENSE): |
|
|
|
|
|
|
|
Interest expense, net |
|
(17,655 |
) |
|
|
(19,593 |
) |
|
|
(72,960 |
) |
|
|
(84,974 |
) |
Expenses associated with debt repayments and refinancing
transactions |
|
(360 |
) |
|
|
(489 |
) |
|
|
(686 |
) |
|
|
(8,077 |
) |
Gain on sale of real estate assets, net |
|
455 |
|
|
|
579 |
|
|
|
798 |
|
|
|
87,728 |
|
Other income |
|
619 |
|
|
|
52 |
|
|
|
576 |
|
|
|
986 |
|
INCOME BEFORE INCOME
TAXES |
|
36,744 |
|
|
|
32,554 |
|
|
|
95,823 |
|
|
|
165,302 |
|
Income tax expense |
|
(10,276 |
) |
|
|
(8,117 |
) |
|
|
(28,233 |
) |
|
|
(42,982 |
) |
NET
INCOME |
$ |
26,468 |
|
|
$ |
24,437 |
|
|
$ |
67,590 |
|
|
$ |
122,320 |
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE |
$ |
0.23 |
|
|
$ |
0.21 |
|
|
$ |
0.59 |
|
|
$ |
1.03 |
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE |
$ |
0.23 |
|
|
$ |
0.21 |
|
|
$ |
0.59 |
|
|
$ |
1.03 |
|
|
|
|
|
|
|
|
|
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 Ended |
|
For the Twelve Months ended |
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
26,468 |
|
|
$ |
24,437 |
|
|
$ |
67,590 |
|
|
$ |
122,320 |
|
Special items: |
|
|
|
|
|
|
|
Expenses associated with debt repayments and refinancing
transactions |
|
360 |
|
|
|
489 |
|
|
|
686 |
|
|
|
8,077 |
|
Income tax expense associated with change in corporate tax
structure |
|
- |
|
|
|
- |
|
|
|
930 |
|
|
|
- |
|
Gain on sale of real estate assets, net |
|
(455 |
) |
|
|
(579 |
) |
|
|
(798 |
) |
|
|
(87,728 |
) |
Shareholder litigation expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,900 |
|
Asset impairments |
|
- |
|
|
|
879 |
|
|
|
2,710 |
|
|
|
4,392 |
|
Income tax expense (benefit) for special items |
|
26 |
|
|
|
(205 |
) |
|
|
(758 |
) |
|
|
19,338 |
|
Adjusted net income |
$ |
26,399 |
|
|
$ |
25,021 |
|
|
$ |
70,360 |
|
|
$ |
68,299 |
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding - basic |
|
113,440 |
|
|
|
114,982 |
|
|
|
113,798 |
|
|
|
118,199 |
|
Effect of dilutive
securities: |
|
|
|
|
|
|
|
Restricted stock-based
awards |
|
1,346 |
|
|
|
1,274 |
|
|
|
852 |
|
|
|
899 |
|
Weighted average shares and
assumed conversions - diluted |
|
114,786 |
|
|
|
116,256 |
|
|
|
114,650 |
|
|
|
119,098 |
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS |
$ |
0.23 |
|
|
$ |
0.22 |
|
|
$ |
0.61 |
|
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
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 Ended |
|
For the Twelve Months Ended |
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
26,468 |
|
|
$ |
24,437 |
|
|
$ |
67,590 |
|
|
$ |
122,320 |
|
Depreciation and amortization
of real estate assets |
|
24,870 |
|
|
|
24,092 |
|
|
|
98,076 |
|
|
|
96,917 |
|
Impairment of real estate
assets |
|
- |
|
|
|
879 |
|
|
|
- |
|
|
|
4,392 |
|
Gain on sale of real estate
assets, net |
|
(455 |
) |
|
|
(579 |
) |
|
|
(798 |
) |
|
|
(87,728 |
) |
Income tax expense (benefit)
for special items |
|
126 |
|
|
|
(78 |
) |
|
|
226 |
|
|
|
21,995 |
|
Funds From Operations |
$ |
51,009 |
|
|
$ |
48,751 |
|
|
$ |
165,094 |
|
|
$ |
157,896 |
|
|
|
|
|
|
|
|
|
Expenses associated with debt
repayments and refinancing transactions |
|
360 |
|
|
|
489 |
|
|
|
686 |
|
|
|
8,077 |
|
Income tax expense associated
with change in corporate tax structure |
|
- |
|
|
|
- |
|
|
|
930 |
|
|
|
- |
|
Shareholder litigation
expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,900 |
|
Other asset impairments |
|
- |
|
|
|
- |
|
|
|
2,710 |
|
|
|
- |
|
Income tax benefit for special
items |
|
(100 |
) |
|
|
(127 |
) |
|
|
(984 |
) |
|
|
(2,657 |
) |
Normalized Funds From Operations |
$ |
51,269 |
|
|
$ |
49,113 |
|
|
$ |
168,436 |
|
|
$ |
165,216 |
|
Funds from Operations Per
Diluted Share |
$ |
0.44 |
|
|
$ |
0.42 |
|
|
$ |
1.44 |
|
|
$ |
1.33 |
|
Normalized Funds From
Operations Per Diluted Share |
$ |
0.45 |
|
|
$ |
0.42 |
|
|
$ |
1.47 |
|
|
$ |
1.39 |
|
|
|
|
|
|
|
|
|
CORECIVIC, INC. AND
SUBSIDIARIESSUPPLEMENTAL FINANCIAL
INFORMATION (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT
PER SHARE AMOUNTS)
CALCULATION OF EBITDA AND ADJUSTED EBITDA
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
26,468 |
|
|
$ |
24,437 |
|
|
$ |
67,590 |
|
|
$ |
122,320 |
|
Interest expense |
|
21,228 |
|
|
|
22,712 |
|
|
|
85,265 |
|
|
|
95,851 |
|
Depreciation and
amortization |
|
32,133 |
|
|
|
31,688 |
|
|
|
127,316 |
|
|
|
127,906 |
|
Income tax expense |
|
10,276 |
|
|
|
8,117 |
|
|
|
28,233 |
|
|
|
42,982 |
|
EBITDA |
$ |
90,105 |
|
|
$ |
86,954 |
|
|
$ |
308,404 |
|
|
$ |
389,059 |
|
|
|
|
|
|
|
|
|
Expenses associated with debt
repayments and refinancing transactions |
|
360 |
|
|
|
489 |
|
|
|
686 |
|
|
|
8,077 |
|
Gain on sale of real estate
assets, net |
|
(455 |
) |
|
|
(579 |
) |
|
|
(798 |
) |
|
|
(87,728 |
) |
Shareholder litigation
expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,900 |
|
Asset impairments |
|
- |
|
|
|
879 |
|
|
|
2,710 |
|
|
|
4,392 |
|
Adjusted EBITDA |
$ |
90,010 |
|
|
$ |
87,743 |
|
|
$ |
311,002 |
|
|
$ |
315,700 |
|
|
|
|
|
|
|
|
|
CORECIVIC, INC. AND
SUBSIDIARIESSUPPLEMENTAL FINANCIAL
INFORMATION (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT
PER SHARE AMOUNTS)
GUIDANCE -- CALCULATION OF FUNDS FROM OPERATIONS &
EBITDA
|
For the Year Ending |
|
December 31, 2024 |
|
Low End ofGuidance |
|
High End ofGuidance |
|
|
|
|
Net Income |
$ |
65,000 |
|
$ |
80,000 |
Depreciation and amortization of real estate assets |
|
98,250 |
|
|
99,250 |
Funds From Operations |
$ |
163,250 |
|
$ |
179,250 |
|
|
|
|
Diluted EPS |
$ |
0.58 |
|
$ |
0.72 |
|
|
|
|
FFO per diluted share |
$ |
1.46 |
|
$ |
1.61 |
|
|
|
|
|
|
|
|
Net income |
$ |
65,000 |
|
$ |
80,000 |
Interest expense |
|
79,000 |
|
|
78,000 |
Depreciation and
amortization |
|
126,500 |
|
|
126,500 |
Income tax expense |
|
29,750 |
|
|
28,750 |
EBITDA |
$ |
300,250 |
|
$ |
313,250 |
|
|
|
|
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, security
analysts, and other interested parties 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 provisions 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: Mike Grant - Managing Director, Investor Relations -
(615) 263-6957 |
|
Financial Media: David Gutierrez,
Dresner Corporate Services - (312) 780-7204 |
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