CoreCivic Declares Quarterly Cash Dividend of $0.42 Per Share
December 08 2016 - 5:09PM
CoreCivic, Inc. (NYSE:CXW) (the “Company")
announced today that its Board of Directors declared a quarterly
dividend of $0.42 per share to be paid on January 13, 2017, to
shareholders of record as of the close of business on January 3,
2017. The authorized dividend represents a payout of approximately
80 percent of the Company's Adjusted Funds From Operations ("AFFO")
per share, or 75 percent of Normalized Funds From Operations
("FFO"), based on the Company's 2017 financial guidance provided on
November 2, 2016.
Damon Hininger, CoreCivic's President and Chief
Executive Officer, stated, "We believe our updated dividend level
appropriately reflects the current cash flows of the business
following the renegotiation in October of the South Texas Family
Residential Center contract with Immigration and Customs
Enforcement. We also believe maintaining our targeted payout ratio
of approximately 80 percent of AFFO per share, or approximately 75
percent of Normalized FFO per share, demonstrates our confidence in
the business and provides sufficient flexibility for the Company to
effectively compete for the numerous growth opportunities requiring
the deployment of capital that we see in the market."
About CoreCivic
The Company is a diversified government solutions company with
the scale and experience needed to solve tough government
challenges in 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, innovative and
cost-saving government real estate solutions, and a growing network
of residential reentry centers to help address America’s recidivism
crisis. We are a publicly traded real estate investment trust
(REIT) and the nation’s largest owner of partnership correctional,
detention and residential reentry facilities. The Company has been
a flexible and dependable partner for government for more than 30
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
http://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. 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,
detention, and residential reentry 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,
detention, and residential reentry facilities and the commencement
of new management contracts, as well as our ability to utilize
current available beds and new capacity as new development and
expansion projects are completed; (v) changes in government
policy regarding the utilization of the private sector for
corrections and detention capacity and our services by the U.S.
Department of Justice and the Department of Homeland Security; (vi)
changes in government policy and in legislation and regulation of
corrections and detention contractors that affect our business,
including but not limited to, California's utilization of
out-of-state contracted correctional capacity and the continued
utilization of the South Texas Family Residential Center by U.S.
Immigration and Customs Enforcement under terms of the current
contract, and the impact of any changes to immigration reform and
sentencing laws (Our company does 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.); (vii) our ability to successfully integrate operations
of our acquisitions and realize projected returns resulting
therefrom; (viii) the ability to attract and retain key
personnel; (ix) escalation in salaries, wages, incentives and the
costs of providing employee health care; (x) our ability to meet
and maintain qualification for taxation as a REIT; (xi) the
availability of debt and equity financing on terms that are
favorable to us; and (xii) 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 delays and increased 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.
CoreCivic 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.
Contact:
Investors: Cameron Hopewell - Managing Director, Investor Relations - (615) 263-3024
Media: Steve Owen – Managing Director, Communications - (615) 263-3107
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