Fourth Quarter & Full Year 2023 Financial Results
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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.