CCA (NYSE:CXW) (the “Company” or “Corrections
Corporation of America”), America's largest owner of partnership
correctional, detention, and re-entry facilities, announced today
its financial results for the fourth quarter and full year 2015.
Fourth Quarter 2015 Highlights
- Revenue of $447.8 million increased 5.8% from the prior year
quarter
- Diluted EPS of $0.41 and Adjusted Diluted EPS of $0.43
- Normalized FFO per diluted share of $0.63
- AFFO per diluted share of $0.58
Full Year 2015 Highlights
- Total revenue of $1.79 billion in 2015 versus $1.65 billion in
2014
- Diluted EPS of $1.88 in 2015 versus $1.66 in 2014
- Adjusted diluted earnings per share of $1.93 in 2015 versus
$1.92 in 2014
- Normalized FFO per diluted share of $2.69 in 2015 versus $2.65
in 2014
- AFFO per diluted share of $2.62 in 2015 versus $2.57 in
2014
"I am pleased to close the year out on such a positive note with
normalized FFO per share coming in $0.03 above the upper end of the
guidance we provided in November," said Damon Hininger, CCA's chief
executive officer. "I'm also encouraged by the many ways
we've been able to help provide solutions to the challenges our
government partners faced in 2015. We completed construction
on over 6,400 beds at three new facilities, significantly expanded
our community-based corrections capabilities through the
acquisition of more than 3,700 residential re-entry beds and were
awarded a new 1,000-bed contract with the state of Arizona to
provide capacity and correctional services such as re-entry
programming. Our value proposition is as strong as ever and
we continue to see meaningful opportunities to make investments to
further align our business with the needs of our government
partners."
Fourth Quarter 2015 Results
Total revenue for the fourth quarter of 2015 was $447.8 million
compared to $423.5 million in the fourth quarter of 2014. The
increase in revenue was primarily attributable to a contract at the
South Texas Family Residential Center, which commenced during the
fourth quarter of 2014 and generated approximately $71.6 million in
revenue during the fourth quarter of 2015 compared with $21.0
million in the fourth quarter of 2014. Total revenue also
increased following the acceptance of over 1,000 additional inmates
from the state of Arizona at our Red Rock Correctional Center,
including 500 in the first quarter of 2015 pursuant to a new
contract, and an additional 560 in July 2015 on a six month
emergency contract that ended in December 2015. These
increases in revenue were partially offset by a decline in inmate
populations from the state of California, which in the aggregate
declined $18.8 million compared with the fourth quarter of 2014,
the non-renewal of a contract with the Federal Bureau of Prisons at
our Northeast Ohio Correctional Center effective May 31, 2015, and
from the transfer of operations at the Winn Correctional facility
to another provider on September 30, 2015.
Net income generated in the fourth quarter of 2015
totaled $48.6 million, or $0.41 per diluted share, compared with
$30.0 million, or $0.25 per diluted share in the fourth quarter of
2014. Adjusted for special items, net income in the fourth
quarter of 2015 was $50.6 million, or $0.43 per diluted share
(Adjusted Diluted EPS), compared with $57.7 million, or $0.49 per
diluted share, in the fourth quarter of 2014. Special items
in the fourth quarter of 2015 included expenses associated with
mergers and acquisitions of $2.0 million, primarily associated with
the acquisition of Avalon Correctional Services, Inc. which closed
in October 2015. Special items in the fourth quarter of 2014
included non-cash asset impairment charges of $27.8 million for
certain non-core assets.
Normalized Funds From Operations (FFO) was $74.8
million, or $0.63 per diluted share, during the fourth quarter of
2015, compared with $79.4 million, or $0.67 per diluted share,
during the fourth quarter of 2014. Adjusted Funds From
Operations (AFFO) was $68.6 million, or $0.58 per diluted share,
during the fourth quarter of 2015, compared with $76.8 million, or
$0.65 per diluted share, during the fourth quarter of 2014.
Adjusted net income, EBITDA, Adjusted EBITDA, FFO,
Normalized FFO and AFFO, and 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 related note following the financial statements
herein for further discussion and reconciliations of these measures
to GAAP measures.
Business Development Update
Trousdale Turner Correctional Center
Update. Construction of the
2,552-bed Trousdale Turner Correctional Center was completed during
the fourth quarter of 2015 at a total cost of approximately $144.0
million. We began receiving inmates from the state of
Tennessee in January 2016 pursuant to an Intergovernmental Services
Agreement with Trousdale County and anticipate a six-month ramp
schedule until full utilization of the facility.
Otay Mesa Detention Center Update.
Construction of the new 1,482-bed Otay Mesa Detention Center was
completed near the end of the third quarter of 2015 at a total cost
of approximately $157.0 million. During the fourth quarter of
2015 we completed the transition of operations to the new facility
and transferred the existing San Diego Correctional Facility to the
County of San Diego upon the lease expiration date of December 31,
2015.
New Contract with the State of Arizona.
During the fourth quarter of 2015, CCA entered into a new contract
with the state of Arizona to house up to an additional 1,000 state
inmates at our Red Rock Correctional Center. We currently
house approximately 1,000 inmates at the 1,596-bed Red Rock
facility under an initial multi-year contract that commenced in
2014. We have begun construction to expand the facility to
2,024 beds and to add additional space for inmate re-entry
programming. The cost of the expansion is estimated to range
from $35.0 million to $38.0 million, and is expected to be complete
and ready to accept inmates near the end of the third quarter or
early fourth quarter of 2016.
Acquisition of Avalon Correctional Services,
Inc. On October 28, 2015, CCA closed on the
acquisition of 100% of the stock of Avalon Correctional Services,
Inc. (Avalon), a privately held community corrections company,
along with a facility operated by Avalon. On November 4,
2015, CCA closed on the acquisition of an additional facility
operated by Avalon. These transactions added 11 community
corrections facilities containing 3,157 beds to our portfolio,
significantly expanding the real estate and services available to
our partners while creating a platform for further organic and
external growth in the re-entry market. The aggregate
purchase price for these transactions of $157.5 million includes
two earn-outs, including one for $5.5 million based on the
completion of and transition to a newly constructed facility that
will deliver the contracted services previously provided at the
Dallas Transition Center, and another for $2.0 million based on the
achievement of certain utilization milestones over the ensuing 12
months.
2016 Guidance
We currently expect Adjusted Diluted EPS for the first quarter
of 2016 to be in the range of $0.37 to $0.39, while FFO and AFFO
per diluted share are expected to be in the range of $0.57 to $0.59
and $0.56 to $0.58, respectively. For the full year 2016, we
expect Adjusted Diluted EPS to be in the range of $1.76 to $1.84,
while FFO and AFFO per diluted share are expected to be in the
range of $2.54 to $2.62 and $2.47 to $2.55, respectively.
During 2016, we expect to invest approximately $96.0 million to
$111.0 million in capital expenditures, consisting of approximately
$40.0 million to $50.0 million in on-going prison construction and
expenditures related to potential land acquisitions; approximately
$27.0 million in maintenance capital expenditures on real estate
assets; and approximately $29.0 million to $34.0 million for
capital expenditures on other assets and information
technology.
Supplemental Financial Information and Investor
Presentations
We have made available on our website supplemental
financial information and other data for the fourth quarter and
full year 2015. We do not undertake any obligation, and
disclaim any duty to update any of the information disclosed in
this report. Interested parties may access this information
through our website at www.cca.com under “Financial Reports”
of the Investors section.
Management may meet with investors from time to
time during the first quarter of 2016. Written materials used
in the investor presentations will also be available on our website
beginning on or about February 24, 2016. Interested parties
may access this information through our website at
www.cca.com under “Webcasts” of the Investors section.
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 11, 2016, to
discuss our fourth quarter 2015 financial results and future
outlook. To listen to this discussion, please access
"Presentations, Webcasts and Events" on the Investors page at
www.cca.com. The conference call will be archived on our
website following the completion of the call. In addition, a
telephonic replay will be available at 1:00 p.m. central time (2:00
p.m. eastern time) on February 11, 2016, through 1:00 p.m. central
time (2:00 p.m. eastern time) on February 19, 2016. To access the
telephonic replay, dial 888-203-1112 in the U.S. and Canada,
International callers dial +719-457-0820 and enter passcode
2042560.
About CCA
CCA, a publicly traded real estate investment trust (REIT), is
the nation’s largest owner of partnership correctional, detention,
and residential re-entry facilities and one of the largest prison
operators in the United States. We currently own or control
66 correctional, detention and re-entry facilities, with a design
capacity of approximately 75,000 beds, and manage 11 additional
facilities owned by our government partners with a total design
capacity of approximately 14,000 beds, in 20 states and the
District of Columbia. CCA specializes in owning, operating and
managing prisons and other correctional facilities and providing
residential, community re-entry and prisoner transportation
services for governmental agencies. In addition to providing
fundamental residential services, our facilities offer a variety of
rehabilitation and educational programs, including basic education,
faith-based services, life skills and employment training and
substance abuse treatment. These services are intended to
help reduce recidivism and to prepare offenders for their
successful re-entry into society upon their release.
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 as defined within the meaning of the
Private Securities Litigation Reform Act of 1995. 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) general economic and
market conditions, including the impact governmental budgets can
have on our per diem rates, occupancy, and overall utilization;
(ii) fluctuations in our operating results because of, among
other things, changes in occupancy levels, competition, increases
in cost of operations, fluctuations in interest rates and risks of
operations; (iii) our ability to obtain and maintain
correctional facility management contracts, including, but not
limited to, sufficient governmental appropriations, contract
compliance and as a result of inmate disturbances;
(iv) changes in the privatization of the corrections and
detention industry, the public acceptance of our services, the
timing of the opening of and demand for new prison facilities and
the commencement of new management contracts; (v) changes in
government policy and in legislation and regulation of the
corrections and detention industry that affect our business,
including but not limited to, California's continued utilization of
out of state private correctional capacity and the continued
utilization of the South Texas Family Residential Center by U.S.
Immigration and Customs Enforcement (Our policy prohibits us from
engaging in lobbying or advocacy efforts that would influence
enforcement efforts, parole standards, criminal laws, and
sentencing policies.); (vi) our ability to successfully integrate
operations of Avalon and realize projected returns resulting
therefrom; (vii) our ability to meet and maintain REIT
qualification status; and (viii) increases in costs to
construct or expand correctional and other facilities that exceed
original estimates, or the inability to complete such projects on
schedule as a result of various factors, many of which are beyond
our control, such as weather, labor conditions and material
shortages, resulting in increased construction costs. 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.
CCA takes 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.
CORRECTIONS CORPORATION OF AMERICA AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS) |
|
|
|
December 31, |
|
December 31, |
ASSETS |
|
2015 |
|
2014 |
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
65,291 |
|
|
$ |
74,393 |
|
Restricted cash |
|
|
877 |
|
|
|
- |
|
Accounts receivable,
net of allowance of $459 and $748, respectively |
|
|
234,456 |
|
|
|
248,588 |
|
Prepaid expenses and
other current assets |
|
|
41,434 |
|
|
|
29,775 |
|
Total current assets |
|
|
342,058 |
|
|
|
352,756 |
|
|
|
|
|
|
Property and equipment,
net |
|
|
2,883,060 |
|
|
|
2,658,628 |
|
|
|
|
|
|
Restricted cash |
|
|
131 |
|
|
|
2,858 |
|
Investment in direct
financing lease |
|
|
684 |
|
|
|
3,223 |
|
Goodwill |
|
|
35,557 |
|
|
|
16,110 |
|
Non-current deferred
tax assets |
|
|
9,824 |
|
|
|
15,530 |
|
Other assets |
|
|
84,704 |
|
|
|
68,541 |
|
|
|
|
|
|
Total assets |
|
$ |
3,356,018 |
|
|
$ |
3,117,646 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses |
|
$ |
317,675 |
|
|
$ |
317,620 |
|
Income taxes
payable |
|
|
1,920 |
|
|
|
1,368 |
|
Current portion of
long-term debt |
|
|
5,000 |
|
|
|
- |
|
Total current
liabilities |
|
|
324,595 |
|
|
|
318,988 |
|
|
|
|
|
|
Long-term debt, net of
current portion |
|
|
1,447,077 |
|
|
|
1,190,455 |
|
Deferred revenue |
|
|
63,289 |
|
|
|
87,227 |
|
Other liabilities |
|
|
58,309 |
|
|
|
39,476 |
|
|
|
|
|
|
Total liabilities |
|
|
1,893,270 |
|
|
|
1,636,146 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Preferred stock ― $0.01
par value; 50,000 shares authorized; none issued and outstanding at
December 31, 2015 and December 31, 2014, respectively |
|
|
- |
|
|
|
- |
|
Common stock ― $0.01
par value; 300,000 shares authorized; 117,232 and 116,764 shares
issued and outstanding at December 31, 2015 and December 31, 2014,
respectively |
|
|
1,172 |
|
|
|
1,168 |
|
Additional paid-in
capital |
|
|
1,762,394 |
|
|
|
1,748,303 |
|
Accumulated
deficit |
|
|
(300,818 |
) |
|
|
(267,971 |
) |
|
|
|
|
|
Total stockholders’
equity |
|
|
1,462,748 |
|
|
|
1,481,500 |
|
|
|
|
|
|
Total liabilities and
stockholders’ equity |
|
$ |
3,356,018 |
|
|
$ |
3,117,646 |
|
CORRECTIONS CORPORATION OF AMERICA AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE
AMOUNTS) |
|
|
For the Three Months |
|
|
For the Twelve Months |
|
|
Ended December 31, |
|
|
Ended
December 31, |
|
|
|
2015 |
|
|
2014 |
|
|
|
2015 |
|
|
2014 |
|
REVENUE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned and
controlled properties |
$ |
396,371 |
|
$ |
368,087 |
|
|
$ |
1,576,938 |
|
$ |
1,409,597 |
|
Managed only and
other |
|
51,464 |
|
|
55,390 |
|
|
|
216,149 |
|
|
237,270 |
|
Total revenue |
|
447,835 |
|
|
423,477 |
|
|
|
1,793,087 |
|
|
1,646,867 |
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned and controlled
properties |
|
264,250 |
|
|
246,943 |
|
|
|
1,050,582 |
|
|
933,217 |
|
Managed only and other |
|
46,681 |
|
|
51,490 |
|
|
|
205,546 |
|
|
222,918 |
|
Total operating
expenses |
|
310,931 |
|
|
298,433 |
|
|
|
1,256,128 |
|
|
1,156,135 |
|
General and
administrative |
|
27,166 |
|
|
26,843 |
|
|
|
103,936 |
|
|
106,429 |
|
Depreciation and
amortization |
|
43,199 |
|
|
28,512 |
|
|
|
151,514 |
|
|
113,925 |
|
Asset
impairments |
|
- |
|
|
27,844 |
|
|
|
955 |
|
|
30,082 |
|
|
|
381,296 |
|
|
381,632 |
|
|
|
1,512,533 |
|
|
1,406,571 |
|
OPERATING
INCOME |
|
66,539 |
|
|
41,845 |
|
|
|
280,554 |
|
|
240,296 |
|
OTHER (INCOME)
EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
15,981 |
|
|
10,447 |
|
|
|
49,696 |
|
|
39,535 |
|
Expenses
associated with debt refinancing transactions |
|
- |
|
|
- |
|
|
|
701 |
|
|
- |
|
Other (income)
expense |
|
295 |
|
|
(61 |
) |
|
|
(58 |
) |
|
(1,204 |
) |
|
|
16,276 |
|
|
10,386 |
|
|
|
50,339 |
|
|
38,331 |
|
INCOME BEFORE
INCOME TAXES |
|
50,263 |
|
|
31,459 |
|
|
|
230,215 |
|
|
201,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
(1,665 |
) |
|
(1,453 |
) |
|
|
(8,361 |
) |
|
(6,943 |
) |
NET INCOME |
$ |
48,598 |
|
$ |
30,006 |
|
|
$ |
221,854 |
|
$ |
195,022 |
|
BASIC EARNINGS PER SHARE: |
$ |
0.41 |
|
$ |
0.26 |
|
|
$ |
1.90 |
|
$ |
1.68 |
|
DILUTED EARNINGS PER SHARE: |
$ |
0.41 |
|
$ |
0.25 |
|
|
$ |
1.88 |
|
$ |
1.66 |
|
DIVIDENDS DECLARED PER
SHARE |
$ |
0.54 |
|
$ |
0.51 |
|
|
$ |
2.16 |
|
$ |
2.04 |
|
CORRECTIONS CORPORATION OF AMERICA AND
SUBSIDIARIES |
SUPPLEMENTAL FINANCIAL
INFORMATION |
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE
AMOUNTS) |
|
CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED
EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months |
|
|
For the Twelve Months |
|
|
Ended December 31, |
|
|
Ended December 31, |
|
|
|
2015 |
|
|
2014 |
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
48,598 |
|
$ |
30,006 |
|
|
$ |
221,854 |
|
$ |
195,022 |
|
Special items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses associated with debt
refinancing transactions, net |
|
- |
|
|
- |
|
|
|
698 |
|
|
- |
|
Expenses associated with mergers
and acquisitions, net |
|
1,967 |
|
|
- |
|
|
|
3,620 |
|
|
- |
|
Asset impairments, net |
|
- |
|
|
27,727 |
|
|
|
955 |
|
|
29,962 |
|
Adjusted net
income |
$ |
50,565 |
|
$ |
57,733 |
|
|
$ |
227,127 |
|
$ |
224,984 |
|
Weighted average common
shares outstanding – basic |
|
117,128 |
|
|
116,357 |
|
|
|
116,949 |
|
|
116,109 |
|
Effect of dilutive
securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options |
|
379 |
|
|
895 |
|
|
|
631 |
|
|
895 |
|
Restricted stock-based
compensation |
|
277 |
|
|
443 |
|
|
|
205 |
|
|
308 |
|
Weighted average shares
and assumed conversions - diluted |
|
117,784 |
|
|
117,695 |
|
|
|
117,785 |
|
|
117,312 |
|
Adjusted Diluted
Earnings Per Share |
$ |
0.43 |
|
$ |
0.49 |
|
|
$ |
1.93 |
|
$ |
1.92 |
|
CORRECTIONS CORPORATION OF AMERICA AND
SUBSIDIARIES |
|
SUPPLEMENTAL FINANCIAL
INFORMATION |
|
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE
AMOUNTS) |
|
|
|
CALCULATION OF NORMALIZED FUNDS FROM OPERATIONS AND
ADJUSTED FUNDS FROM OPERATIONS |
|
|
|
|
|
|
|
|
For the Three Months |
|
|
For the Twelve Months |
|
|
Ended December 31, |
|
|
Ended December 31, |
|
|
|
2015 |
|
|
2014 |
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
48,598 |
|
$ |
30,006 |
|
|
$ |
221,854 |
|
$ |
195,022 |
|
Depreciation of real
estate assets |
|
24,195 |
|
|
21,640 |
|
|
|
90,219 |
|
|
85,560 |
|
Impairment of real
estate assets, net |
|
- |
|
|
27,608 |
|
|
|
- |
|
|
29,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds From Operations |
$ |
72,793 |
|
$ |
79,254 |
|
|
$ |
312,073 |
|
$ |
310,425 |
|
Expenses associated
with debt refinancing transactions, net |
|
- |
|
|
- |
|
|
|
698 |
|
|
- |
|
Expenses associated
with mergers and acquisitions, net |
|
1,967 |
|
|
- |
|
|
|
3,620 |
|
|
- |
|
Goodwill and other
impairments, net |
|
- |
|
|
119 |
|
|
|
955 |
|
|
119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized Funds From
Operations |
$ |
74,760 |
|
$ |
79,373 |
|
|
$ |
317,346 |
|
$ |
310,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance capital
expenditures on real estate assets |
|
(10,762 |
) |
|
(6,901 |
) |
|
|
(26,609 |
) |
|
(25,481 |
) |
Stock-based
compensation |
|
3,878 |
|
|
3,537 |
|
|
|
15,394 |
|
|
13,975 |
|
Amortization of debt
costs and other non-cash interest |
|
787 |
|
|
777 |
|
|
|
2,973 |
|
|
3,102 |
|
Other non-cash revenue
and expenses |
|
(16 |
) |
|
(16 |
) |
|
|
(64 |
) |
|
(64 |
) |
Adjusted Funds From Operations |
$ |
68,647 |
|
$ |
76,770 |
|
|
$ |
309,040 |
|
$ |
302,076 |
|
Normalized Funds From Operations Per Diluted
Share |
$ |
0.63 |
|
$ |
0.67 |
|
|
$ |
2.69 |
|
$ |
2.65 |
|
Adjusted Funds From
Operations Per Diluted Share |
$ |
0.58 |
|
$ |
0.65 |
|
|
$ |
2.62 |
|
$ |
2.57 |
|
CORRECTIONS CORPORATION OF AMERICA AND
SUBSIDIARIES |
|
SUPPLEMENTAL FINANCIAL
INFORMATION |
|
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE
AMOUNTS) |
|
|
|
CALCULATION OF ADJUSTED FUNDS FROM OPERATIONS PER SHARE
& ADJUSTED EBITDA GUIDANCE |
|
|
|
|
For the Quarter Ending |
|
|
For the Year Ending |
|
|
March 31, 2016 |
|
|
December 31, 2016 |
|
|
Low End of Guidance |
|
High End of Guidance |
|
|
Low End of Guidance |
|
High End of Guidance |
|
Net income |
$ |
44,000 |
|
$ |
46,500 |
|
|
$ |
209,000 |
|
$ |
218,500 |
|
Depreciation of real
estate assets |
|
23,000 |
|
|
23,000 |
|
|
|
92,000 |
|
|
92,000 |
|
Funds From
Operations |
$ |
67,000 |
|
$ |
69,500 |
|
|
$ |
301,000 |
|
$ |
310,500 |
|
Other non-cash revenue
and expenses |
|
4,500 |
|
|
4,500 |
|
|
|
18,500 |
|
|
18,500 |
|
Maintenance capital
expenditures on real estate assets |
|
(5,000 |
) |
|
(5,000 |
) |
|
|
(27,000 |
) |
|
(27,000 |
) |
Adjusted Funds From
Operations |
$ |
66,500 |
|
$ |
69,000 |
|
|
$ |
292,500 |
|
$ |
302,000 |
|
Adjusted EPS per
diluted share |
$ |
0.37 |
|
$ |
0.39 |
|
|
$ |
1.76 |
|
$ |
1.84 |
|
FFO per diluted
share |
$ |
0.57 |
|
$ |
0.59 |
|
|
$ |
2.54 |
|
$ |
2.62 |
|
AFFO per diluted
share |
$ |
0.56 |
|
$ |
0.58 |
|
|
$ |
2.47 |
|
$ |
2.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
44,000 |
|
$ |
46,500 |
|
|
$ |
209,000 |
|
$ |
218,500 |
|
Interest expense,
net |
|
17,000 |
|
|
18,000 |
|
|
|
69,000 |
|
|
71,000 |
|
Depreciation and
amortization |
|
42,500 |
|
|
42,500 |
|
|
|
174,000 |
|
|
174,000 |
|
Income tax expense |
|
2,000 |
|
|
2,500 |
|
|
|
11,000 |
|
|
11,500 |
|
EBITDA |
$ |
105,500 |
|
$ |
109,500 |
|
|
$ |
463,000 |
|
$ |
475,000 |
|
Depreciation associated
with STFRC lease |
|
(10,600 |
) |
|
(10,600 |
) |
|
|
(42,500 |
) |
|
(42,500 |
) |
Interest expense
associated with STFRC lease |
|
(2,900 |
) |
|
(2,900 |
) |
|
|
(10,500 |
) |
|
(10,500 |
) |
Adjusted EBITDA |
$ |
92,000 |
|
$ |
96,000 |
|
|
$ |
410,000 |
|
$ |
422,000 |
|
NOTE TO SUPPLEMENTAL FINANCIAL
INFORMATION
Adjusted Net Income, EBITDA, Adjusted EBITDA, Funds From
Operations (FFO), Normalized FFO and Adjusted Funds From Operations
(AFFO), and, where appropriate, their corresponding per share
metrics are non-GAAP financial measures. CCA 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 correctional facilities and their management teams. CCA
believes that it is useful to provide investors, lenders and
security analysts' disclosures of its results of operations on the
same basis that is used by management. FFO and AFFO, in
particular, are widely accepted non-GAAP supplemental measures of
REIT performance, each 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
generally accepted accounting principles, excluding gains (or
losses) from sales of property and extraordinary items, plus
depreciation and amortization of real estate and impairment of
depreciable real estate. EBITDA, Adjusted EBITDA, FFO and
AFFO are useful as supplemental measures of performance of the
Company's corrections facilities because they don't 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. Adjusted EBITDA includes depreciation and interest
expense in order to more properly reflect the cash flows associated
with the lease at the South Texas Family Residential Center.
CCA 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 component of the
ongoing operations of the Company. Normalized FFO excludes
the effects of such items. CCA calculates AFFO by adding to
Normalized FFO non-cash expenses such as the amortization of
deferred financing costs and stock-based compensation, and by
subtracting from Normalized FFO recurring real estate expenditures
that are capitalized and then amortized, but which are necessary to
maintain a REIT's properties and its revenue stream. Some of
these capital expenditures contain a discretionary element with
respect to when they are incurred, while others may be more
urgent. Therefore, these capital expenditures may fluctuate
from quarter to quarter, depending on the nature of the
expenditures required, seasonal factors such as weather, and
budgetary conditions. CCA calculates Adjusted Net Income by adding
or deducting from GAAP Net Income amounts associated with the
Company’s debt refinancing, mergers and acquisitions activity and
certain impairments that the Company believes are unusual or
nonrecurring to provide an alternative measure of comparing
operating performance for the periods presented.
Other companies may calculate Adjusted Net Income, EBITDA,
Adjusted EBITDA, FFO, Normalized FFO, and AFFO differently than the
Company does, or adjust for other items, and therefore
comparability may be limited. Adjusted Net Income, EBITDA,
Adjusted EBITDA, FFO, Normalized FFO, and AFFO and 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 and Analysts: Cameron Hopewell,
CCA at (615)263-3024
Financial Media: David Gutierrez,
Dresner Corporate Services at (312)780-7204
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