CoreCivic, Inc. (NYSE: CXW) (the Company)
announced today its financial results for the third quarter of
2023.
Damon T. Hininger, CoreCivic's President and Chief
Executive Officer, said, “We are pleased with our third quarter
results, and are optimistic that the post-pandemic environment will
continue to result in increasing opportunities to serve our
government partners. Federal, state, and local government agencies
are experiencing an increase in the need for the solutions that we
provide."
Hininger continued, "We also continue to execute on
our capital allocation strategy, repaying nearly $140 million of
debt net of the change in cash so far this year, and reducing
leverage, measured by net debt to EBITDA, to 2.8x using the
trailing twelve months. Our debt reduction strategy has contributed
to a meaningful reduction to interest expense from the prior year,
despite an increasing interest rate environment. The amendment and
extension of our bank credit facility obtained subsequent to
quarter-end, which included an increase in size and an extension of
the maturity to 2028, provides us with additional flexibility to
execute on our long-term capital allocation strategy, including
share repurchases."
Financial Highlights – Third Quarter 2023
- Total revenue of $483.7 million
- CoreCivic Safety revenue of $443.3
million
- CoreCivic Community revenue of $29.8
million
- CoreCivic Properties revenue of $10.5
million
- Net Income of $13.9 million
- Diluted earnings per share of $0.12
- Adjusted Diluted EPS of $0.14
- Normalized Funds From Operations per diluted share of
$0.35
- Adjusted EBITDA of $75.2 million
Third Quarter 2023 Financial Results Compared With Third
Quarter 2022
Net income in the third quarter of 2023 totaled
$13.9 million, or $0.12 per diluted share, compared with net income
in the third quarter of 2022 of $68.3 million, or $0.58 per diluted
share. Among other special items, net income in the prior year
quarter included gains on sales of real estate assets of $83.8
million, or $0.53 per share, including a $77.5 million gain on the
sale of our McRae Correctional Facility. Adjusted for special
items, adjusted net income in the third quarter of 2023 was $15.6
million, or $0.14 per diluted share (Adjusted Diluted EPS),
compared with adjusted net income in the third quarter of 2022 of
$9.7 million, or $0.08 per diluted share, representing a per share
increase of 75%. 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 $0.06 per share increase in Adjusted Diluted
EPS primarily resulted from higher federal and state populations,
combined with lower interest expense resulting from our debt
reduction strategy. These earnings increases were partially offset
by the expiration of our contract with the Federal Bureau of
Prisons (BOP) at the McRae Correctional Facility on November 30,
2022, and the lease with the Oklahoma Department of Corrections
(ODC) at our North Fork Correctional Facility on June 30, 2023. We
sold the McRae facility to the state of Georgia in August 2022, but
continued to lease the facility so that we could fulfill our
obligations to the BOP through the expiration date of the
contract.
While we continue to experience ongoing labor
market pressures and continue to incur temporary incentives and
related incremental operating expenses at certain facilities, we
have achieved notable improvements in our attraction and retention
rates as a result of our staffing strategies and due to an overall
improvement in the hiring environment. We believe the investments
in our staffing have positioned us to manage the increased number
of residents we have begun to experience now that the remaining
occupancy restrictions caused by the COVID-19 pandemic have been
removed, most notably Title 42, which ended May 11, 2023. Under
Title 42, asylum-seekers and anyone crossing the border without
proper documentation or authority were denied entry at the United
States border in an effort to contain the spread of COVID-19. Since
May 11, 2023 through September 25, 2023, the number of individuals
in the custody of U.S. Immigration and Customs Enforcement (ICE)
has increased 66%. Since May 11, 2023 through September 30, 2023,
ICE detention populations within our facilities have increased by
4,729, or 84%, which we believe was possible, in part, because of
our investments in staffing.
Earnings before interest, taxes, depreciation and
amortization (EBITDA) was $72.8 million in the third quarter of
2023, compared with $147.9 million in the third quarter of 2022.
Adjusted EBITDA, which excludes special items, was $75.2 million in
the third quarter of 2023, compared with $68.4 million in the third
quarter of 2022, an increase of 10.0%. The increase in Adjusted
EBITDA was attributable to an increase in occupancy, combined with
a general reduction in temporary staffing incentives, partially
offset by the expiration of the contract with the BOP at the McRae
facility and the lease with the ODC at the North Fork facility. The
contract expirations at the McRae and North Fork facilities
resulted in an aggregate reduction to EBITDA of $4.8 million from
the third quarter of 2022.
Funds From Operations (FFO) was $38.5 million, or
$0.34 per diluted share, in the third quarter of 2023, compared to
$33.3 million, or $0.28 per diluted share, in the third quarter of
2022. Normalized FFO, which excludes special items, was $40.5
million, or $0.35 per diluted share, in the third quarter of 2023,
compared with $33.9 million, or $0.29 per diluted share, in the
third quarter of 2022, representing an increase in Normalized FFO
per share of 21%. 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
isn't reflected in 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 Updates
Capital Strategy
Debt Repayments. We continued to make progress
on our debt reduction strategy, increasing our total debt repaid
for the nine months ended September 30, 2023, to $137.7 million,
net of the change in cash, including $65.0 million during the third
quarter of 2023. 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 undrawn, except for $17.4 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 nine months ended September 30, 2023, we repurchased 2.6
million shares of our common stock, at an aggregate purchase price
of $25.6 million, excluding fees, commissions and other costs
related to the repurchases. Since the share repurchase program was
authorized, through September 30, 2023, we have repurchased a total
of 9.2 million shares at an aggregate price of $100.1 million,
excluding fees, commissions and other costs related to the
repurchases. We did not repurchase any shares of our common stock
during the third quarter of 2023.
As of September 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.
New Management Contracts
New Management Contract With Hinds County,
Mississippi. On September 25, 2023, we announced that we
signed a new management contract with Hinds County, Mississippi for
up to 250 adult male pre-trial detainees at our 2,672-bed
Tallahatchie County Correctional Facility in Tutwiler, Mississippi.
The initial contract term is for two years, which may be extended
for an additional year upon mutual agreement. We currently care for
approximately 200 residents from Hinds County at the Tallahatchie
facility, in addition to over 400 residents from the U.S. Marshals
Service, Vermont, South Carolina, the U.S. Virgin Islands, and
Tallahatchie County.
Intent to Award New Management Contract From State of
Montana. On October 11, 2023, we were notified by the
state of Montana of its intent to award us a new management
contract for up to 120 inmates at our 1,896-bed Saguaro
Correctional Facility in Eloy, Arizona. We expect to execute the
contract in the short-term and begin accepting residents from
Montana later in the fourth quarter of 2023. We currently care for
approximately 875 residents from Hawaii and nearly 600 residents
from the state of Idaho at the Saguaro Correctional Facility. We
also manage the fully occupied company-owned Crossroads
Correctional Center in Shelby, Montana for the State pursuant to a
separate management contract.
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 |
• Net income |
$58.7 million to $64.9 million |
$58.4 million to $66.4 million |
• Adjusted net income |
$62.3 million to $68.5 million |
$59.5 million to $67.5 million |
• Diluted EPS |
$0.51 to $0.57 |
$0.51 to $0.58 |
• Adjusted Diluted EPS |
$0.54 to $0.60 |
$0.52 to $0.59 |
• FFO per diluted share |
$1.37 to $1.43 |
$1.36 to $1.44 |
• Normalized FFO per diluted share |
$1.40 to $1.46 |
$1.37 to $1.45 |
• EBITDA |
$298.8 million to $303.0 million |
$297.0 million to $303.0 million |
• Adjusted EBITDA |
$302.5 million to $306.8 million |
$297.3 million to $303.3 million |
During 2023, we expect to invest $66.0 million to $69.0 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 $5.0 million to
$6.0 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 third 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 fourth quarter of 2023. Written materials used in
the investor presentations will also be available on our website
beginning on or about November 29, 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 11:00 a.m. central
time (12:00 p.m. eastern time) on Tuesday, November 7, 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/BI3e522c1e25f444ec98977db80437da4f.
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 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) government budget uncertainty, the
impact of the debt ceiling and the potential for government
shutdowns and changing funding 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) |
ASSETS |
|
September 30,2023 |
|
December 31,2022 |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
103,697 |
|
|
$ |
149,401 |
|
Restricted cash |
|
|
14,214 |
|
|
|
12,764 |
|
Accounts receivable, net of
credit loss reserve of $7,358 and $8,008, respectively |
|
|
269,416 |
|
|
|
312,435 |
|
Prepaid expenses and other
current assets |
|
|
32,638 |
|
|
|
32,134 |
|
Assets held for sale |
|
|
- |
|
|
|
6,936 |
|
Total current assets |
|
|
419,965 |
|
|
|
513,670 |
|
Real estate and related
assets: |
|
|
|
|
Property and equipment, net of
accumulated depreciation of $1,798,675 and $1,716,283,
respectively |
|
|
2,127,800 |
|
|
|
2,176,098 |
|
Other real estate assets |
|
|
204,096 |
|
|
|
208,181 |
|
Goodwill |
|
|
4,844 |
|
|
|
4,844 |
|
Other assets |
|
|
311,903 |
|
|
|
341,976 |
|
|
|
|
|
|
Total assets |
|
$ |
3,068,608 |
|
|
$ |
3,244,769 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses |
|
$ |
290,385 |
|
|
$ |
285,226 |
|
Current portion of long-term
debt |
|
|
13,982 |
|
|
|
165,525 |
|
Total current liabilities |
|
|
304,367 |
|
|
|
450,751 |
|
|
|
|
|
|
Long-term debt, net |
|
|
1,055,588 |
|
|
|
1,084,858 |
|
Deferred revenue |
|
|
18,869 |
|
|
|
22,590 |
|
Non-current deferred tax
liabilities |
|
|
98,124 |
|
|
|
99,618 |
|
Other liabilities |
|
|
133,358 |
|
|
|
154,544 |
|
|
|
|
|
|
Total liabilities |
|
|
1,610,306 |
|
|
|
1,812,361 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Preferred stock ― $0.01 par
value; 50,000 shares authorized; none issued and outstanding at
September 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 September 30, 2023 and December 31, 2022,
respectively |
|
|
1,136 |
|
|
|
1,150 |
|
Additional paid-in
capital |
|
|
1,792,481 |
|
|
|
1,807,689 |
|
Accumulated deficit |
|
|
(335,315 |
) |
|
|
(376,431 |
) |
Total stockholders’ equity |
|
|
1,458,302 |
|
|
|
1,432,408 |
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
3,068,608 |
|
|
$ |
3,244,769 |
|
CORECIVIC, INC. AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF OPERATIONS(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT
PER SHARE AMOUNTS) |
|
|
For the Three Months EndedSeptember
30, |
|
For the Nine Months EndedSeptember
30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
REVENUE: |
|
|
|
|
|
|
|
|
Safety |
|
$ |
443,324 |
|
|
$ |
423,186 |
|
|
$ |
1,282,717 |
|
|
$ |
1,253,788 |
|
Community |
|
|
29,791 |
|
|
|
26,379 |
|
|
|
84,569 |
|
|
|
76,269 |
|
Properties |
|
|
10,477 |
|
|
|
14,587 |
|
|
|
37,888 |
|
|
|
43,704 |
|
Other |
|
|
113 |
|
|
|
59 |
|
|
|
215 |
|
|
|
135 |
|
|
|
|
483,705 |
|
|
|
464,211 |
|
|
|
1,405,389 |
|
|
|
1,373,896 |
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
Operating |
|
|
|
|
|
|
|
|
Safety |
|
|
350,946 |
|
|
|
342,190 |
|
|
|
1,015,070 |
|
|
|
987,472 |
|
Community |
|
|
23,268 |
|
|
|
22,022 |
|
|
|
68,888 |
|
|
|
63,531 |
|
Properties |
|
|
3,067 |
|
|
|
3,902 |
|
|
|
9,752 |
|
|
|
10,561 |
|
Other |
|
|
42 |
|
|
|
80 |
|
|
|
158 |
|
|
|
259 |
|
Total operating expenses |
|
|
377,323 |
|
|
|
368,194 |
|
|
|
1,093,868 |
|
|
|
1,061,823 |
|
General and administrative |
|
|
33,927 |
|
|
|
30,194 |
|
|
|
99,218 |
|
|
|
92,808 |
|
Depreciation and amortization |
|
|
32,526 |
|
|
|
31,931 |
|
|
|
95,183 |
|
|
|
96,218 |
|
Shareholder litigation expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,900 |
|
Asset impairments |
|
|
2,710 |
|
|
|
3,513 |
|
|
|
2,710 |
|
|
|
3,513 |
|
|
|
|
446,486 |
|
|
|
433,832 |
|
|
|
1,290,979 |
|
|
|
1,256,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE): |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(17,886 |
) |
|
|
(20,793 |
) |
|
|
(55,305 |
) |
|
|
(65,381 |
) |
Expenses associated with debt repayments and refinancing
transactions |
|
|
(100 |
) |
|
|
(783 |
) |
|
|
(326 |
) |
|
|
(7,588 |
) |
Gain on sale of real estate assets, net |
|
|
368 |
|
|
|
83,828 |
|
|
|
343 |
|
|
|
87,149 |
|
Other income (expense) |
|
|
(74 |
) |
|
|
(71 |
) |
|
|
(43 |
) |
|
|
934 |
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES |
|
|
19,527 |
|
|
|
92,560 |
|
|
|
59,079 |
|
|
|
132,748 |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
(5,635 |
) |
|
|
(24,242 |
) |
|
|
(17,957 |
) |
|
|
(34,865 |
) |
NET
INCOME |
|
$ |
13,892 |
|
|
$ |
68,318 |
|
|
$ |
41,122 |
|
|
$ |
97,883 |
|
BASIC EARNINGS PER
SHARE |
|
$ |
0.12 |
|
|
$ |
0.59 |
|
|
$ |
0.36 |
|
|
$ |
0.82 |
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS
PERSHARE |
|
$ |
0.12 |
|
|
$ |
0.58 |
|
|
$ |
0.36 |
|
|
$ |
0.82 |
|
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 EndedSeptember
30, |
|
For the Nine Months EndedSeptember
30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
13,892 |
|
|
$ |
68,318 |
|
|
$ |
41,122 |
|
|
$ |
97,883 |
|
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
Expenses associated with debt repayments and refinancing
transactions |
|
|
100 |
|
|
|
783 |
|
|
|
326 |
|
|
|
7,588 |
|
Income tax expense associated with change in corporate tax
structure |
|
|
- |
|
|
|
- |
|
|
|
930 |
|
|
|
- |
|
Gain on sale of real estate assets, net |
|
|
(368 |
) |
|
|
(83,828 |
) |
|
|
(343 |
) |
|
|
(87,149 |
) |
Shareholder litigation expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,900 |
|
Asset impairments |
|
|
2,710 |
|
|
|
3,513 |
|
|
|
2,710 |
|
|
|
3,513 |
|
Income tax expense (benefit) for special items |
|
|
(709 |
) |
|
|
20,959 |
|
|
|
(784 |
) |
|
|
19,543 |
|
Adjusted net income |
|
$ |
15,625 |
|
|
$ |
9,745 |
|
|
$ |
43,961 |
|
|
$ |
43,278 |
|
Weighted average common shares
outstanding – basic |
|
|
113,605 |
|
|
|
116,569 |
|
|
|
113,919 |
|
|
|
119,282 |
|
Effect of dilutive
securities: |
|
|
|
|
|
|
|
|
Restricted stock-based awards |
|
|
802 |
|
|
|
881 |
|
|
|
686 |
|
|
|
774 |
|
Weighted average shares and
assumed conversions - diluted |
|
|
114,407 |
|
|
|
117,450 |
|
|
|
114,605 |
|
|
|
120,056 |
|
Adjusted Diluted EPS |
|
$ |
0.14 |
|
|
$ |
0.08 |
|
|
$ |
0.38 |
|
|
$ |
0.36 |
|
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 EndedSeptember
30, |
|
For the Nine Months EndedSeptember
30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
13,892 |
|
|
$ |
68,318 |
|
|
$ |
41,122 |
|
|
$ |
97,883 |
|
Depreciation and amortization
of real estate assets |
|
|
24,837 |
|
|
|
24,158 |
|
|
|
73,206 |
|
|
|
72,825 |
|
Impairment of real estate
assets |
|
|
- |
|
|
|
3,513 |
|
|
|
- |
|
|
|
3,513 |
|
Gain on sale of real estate
assets, net |
|
|
(368 |
) |
|
|
(83,828 |
) |
|
|
(343 |
) |
|
|
(87,149 |
) |
Income tax expense for special
items |
|
|
107 |
|
|
|
21,165 |
|
|
|
100 |
|
|
|
22,073 |
|
Funds From Operations |
|
$ |
38,468 |
|
|
$ |
33,326 |
|
|
$ |
114,085 |
|
|
$ |
109,145 |
|
|
|
|
|
|
|
|
|
|
Expenses associated with debt
repayments and refinancing transactions |
|
|
100 |
|
|
|
783 |
|
|
|
326 |
|
|
|
7,588 |
|
Income tax expense associated
with change in corporate tax structure |
|
|
- |
|
|
|
- |
|
|
|
930 |
|
|
|
- |
|
Shareholder litigation
expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,900 |
|
Other asset impairments |
|
|
2,710 |
|
|
|
- |
|
|
|
2,710 |
|
|
|
- |
|
Income tax benefit for special
items |
|
|
(816 |
) |
|
|
(206 |
) |
|
|
(884 |
) |
|
|
(2,530 |
) |
Normalized Funds From Operations |
|
$ |
40,462 |
|
|
$ |
33,903 |
|
|
$ |
117,167 |
|
|
$ |
116,103 |
|
|
|
|
|
|
|
|
|
|
Funds From Operations Per
Diluted Share |
|
$ |
0.34 |
|
|
$ |
0.28 |
|
|
$ |
1.00 |
|
|
$ |
0.91 |
|
Normalized Funds From
Operations Per Diluted Share |
|
$ |
0.35 |
|
|
$ |
0.29 |
|
|
$ |
1.02 |
|
|
$ |
0.97 |
|
CALCULATION OF EBITDA AND ADJUSTED EBITDA |
|
|
For the Three Months EndedSeptember
30, |
|
For the Nine Months EndedSeptember
30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
13,892 |
|
|
$ |
68,318 |
|
|
$ |
41,122 |
|
|
$ |
97,883 |
|
Interest expense |
|
|
20,734 |
|
|
|
23,455 |
|
|
|
64,037 |
|
|
|
73,139 |
|
Depreciation and
amortization |
|
|
32,526 |
|
|
|
31,931 |
|
|
|
95,183 |
|
|
|
96,218 |
|
Income tax expense |
|
|
5,635 |
|
|
|
24,242 |
|
|
|
17,957 |
|
|
|
34,865 |
|
EBITDA |
|
$ |
72,787 |
|
|
$ |
147,946 |
|
|
$ |
218,299 |
|
|
$ |
302,105 |
|
|
|
|
|
|
|
|
|
|
Expenses associated with debt
repayments and refinancing transactions |
|
|
100 |
|
|
|
783 |
|
|
|
326 |
|
|
|
7,588 |
|
Gain on sale of real estate
assets, net |
|
|
(368 |
) |
|
|
(83,828 |
) |
|
|
(343 |
) |
|
|
(87,149 |
) |
Shareholder litigation
expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,900 |
|
Asset impairments |
|
|
2,710 |
|
|
|
3,513 |
|
|
|
2,710 |
|
|
|
3,513 |
|
Adjusted EBITDA |
|
$ |
75,229 |
|
|
$ |
68,414 |
|
|
$ |
220,992 |
|
|
$ |
227,957 |
|
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 |
|
$ |
58,672 |
|
|
$ |
64,922 |
|
Expenses associated with debt repayments and refinancing
transactions |
|
|
1,363 |
|
|
|
1,363 |
|
Income tax expense associated with change in corporate tax
structure |
|
|
930 |
|
|
|
930 |
|
Gain on sale of real estate assets, net |
|
|
(343 |
) |
|
|
(343 |
) |
Asset impairments |
|
|
2,710 |
|
|
|
2,710 |
|
Income tax benefit for special items |
|
|
(1,082 |
) |
|
|
(1,082 |
) |
Adjusted net income |
|
$ |
62,250 |
|
|
$ |
68,500 |
|
|
|
|
|
|
Net income |
|
$ |
58,672 |
|
|
$ |
64,922 |
|
Depreciation and amortization of real estate assets |
|
|
98,000 |
|
|
|
98,500 |
|
Gain on sale of real estate assets, net |
|
|
(343 |
) |
|
|
(343 |
) |
Income tax expense for special items |
|
|
100 |
|
|
|
100 |
|
Funds From Operations |
|
$ |
156,429 |
|
|
$ |
163,179 |
|
Expenses associated with debt repayments and refinancing
transactions |
|
|
1,363 |
|
|
|
1,363 |
|
Income tax expense associated with change in corporate tax
structure |
|
|
930 |
|
|
|
930 |
|
Other asset impairments |
|
|
2,710 |
|
|
|
2,710 |
|
Income tax benefit for special items |
|
|
(1,182 |
) |
|
|
(1,182 |
) |
Normalized Funds From
Operations |
|
$ |
160,250 |
|
|
$ |
167,000 |
|
Diluted EPS |
|
$ |
0.51 |
|
|
$ |
0.57 |
|
Adjusted Diluted EPS |
|
$ |
0.54 |
|
|
$ |
0.60 |
|
FFO per diluted share |
|
$ |
1.37 |
|
|
$ |
1.43 |
|
Normalized FFO per diluted
share |
|
$ |
1.40 |
|
|
$ |
1.46 |
|
|
|
|
|
|
Net income |
|
$ |
58,672 |
|
|
$ |
64,922 |
|
Interest expense |
|
|
85,500 |
|
|
|
84,500 |
|
Depreciation and
amortization |
|
|
128,000 |
|
|
|
128,000 |
|
Income tax expense |
|
|
26,598 |
|
|
|
25,598 |
|
EBITDA |
|
$ |
298,770 |
|
|
$ |
303,020 |
|
Expenses associated with debt repayments and refinancing
transactions |
|
|
1,363 |
|
|
|
1,363 |
|
Gain on sale of real estate assets, net |
|
|
(343 |
) |
|
|
(343 |
) |
Asset impairments |
|
|
2,710 |
|
|
|
2,710 |
|
Adjusted EBITDA |
|
$ |
302,500 |
|
|
$ |
306,750 |
|
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: David Garfinkle –
Chief Financial Officer – (615) 263-3008Financial 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