CoreCivic, Inc. (NYSE: CXW)
(the Company) announced today its financial results for the fourth
quarter and full year 2020.
Financial Highlights – Full Year 2020
- Total revenue of $1.91 billion
- CoreCivic Safety revenue of $1.71 billion
- CoreCivic Community revenue of $106.0
million
- CoreCivic Properties revenue of $93.1
million
- Net income attributable to common stockholders of $54.2
million
- Diluted EPS per share of $0.45
- Adjusted diluted EPS of $1.32
- Normalized FFO per diluted share of $2.25
- Adjusted EBITDA of $404.8 million
- Non-cash impairment charges of $60.6 million
Damon T. Hininger, CoreCivic's President and Chief
Executive Officer, said, “While 2020 was an unprecedented and
unpredictable year, we once again displayed the value of the
mission-critical solutions we provide to our government partners
and the durability of our cash flows. For the full year, we
generated Normalized FFO per share of $2.25, only 4% below the
mid-point of our guidance of $2.35 announced in February 2020,
before the COVID-19 pandemic. In the fourth quarter we continued
our capital allocation strategy of debt reduction by repaying more
than $125 million in long-term debt, net of the change in cash, due
to our strong operating cash flows and net proceeds provided by our
recently announced sale of non-core government-leased real estate
assets. We currently expect the sale of additional non-core assets,
when combined with the sale completed in the fourth quarter of
2020, will result in aggregate net cash proceeds consistent with
our original estimate of up to $150 million.
"Our achievements are only possible thanks to our
dedicated professionals who continue to be on the front lines of
the COVID-19 pandemic. Their dedication and diligence have been
essential to meeting the needs of our government partners through a
difficult period of time, and we continue to work tirelessly to
protect our employees and the individuals in our care," added
Hininger.
CoreCivic is dedicated to helping those in its care
be successful in their next step in life. Every day, CoreCivic’s
chaplains, counselors and instructors help nearly 1,500 inmates
learn the life and vocational skills they need to find and keep
employment once released. Every year, its dedicated teachers help
more than 1,500 inmates earn a GED, which research shows makes them
30% less likely to return to prison after they’re released.
CoreCivic helps its government partners solve some of their
toughest challenges by providing flexibility to manage constantly
changing needs and populations and delivering on proven reentry
programs that fight recidivism and change lives.
Financial Highlights – Fourth Quarter 2020
- Total revenue of $473.5 million
- CoreCivic Safety revenue of $424.3
million
- CoreCivic Community revenue of $25.3
million
- CoreCivic Properties revenue of $23.8
million
- Net loss attributable to common stockholders of $26.8
million
- Diluted loss per share of $0.22
- Adjusted diluted EPS of $0.40
- Normalized FFO per diluted share of $0.63
- Adjusted EBITDA of $108.7 million
- Non-cash impairment charges of $47.6 million
Fourth Quarter 2020 Financial Results Compared With
Fourth Quarter 2019
Net loss attributable to common stockholders in the
fourth quarter of 2020 totaled $26.8 million, or $0.22 per diluted
share, and was driven by $75.6 million, or $0.62 per share, of
special items, compared with net income attributable to common
stockholders generated in the fourth quarter of 2019 of $42.0
million, or $0.35 per diluted share. Adjusted for special items,
net income in the fourth quarter of 2020 was $48.8 million, or
$0.40 per diluted share (Adjusted Diluted EPS), compared with
adjusted net income in the fourth quarter of 2019 of $42.8 million,
or $0.36 per diluted share, a per share increase of 11.1%. Special
items in the fourth quarter of 2020 included primarily $47.6
million in asset impairments, $7.1 million in expenses associated
with debt repayments and refinancing transactions, $2.8 million in
expenses associated with COVID-19, and $17.9 million in loss on
sale of real estate assets. Special items in the fourth quarter of
2019 included $0.6 million in expenses associated with debt
repayments and refinancing transactions and $0.2 million of
expenses associated with mergers and acquisitions.
Funds From Operations (FFO) was $22.8 million, or
$0.19 per diluted share, in the fourth quarter of 2020, compared to
$69.0 million, or $0.58 per diluted share, in the fourth quarter of
2019. Normalized FFO, which excludes the special items described
above, was $76.3 million, or $0.63 per diluted share, in the fourth
quarter of 2020, compared with $69.8 million, or $0.59 per diluted
share, in the fourth quarter of 2019, an increase in Normalized FFO
per share of 6.8%.
EBITDA was $33.0 million in the fourth quarter of
2020, compared with $102.7 million in the fourth quarter of 2019.
Adjusted EBITDA was $108.7 million in the fourth quarter of 2020,
compared with $103.5 million in the fourth quarter of 2019, an
increase of 5.0%. Adjusted EBITDA excludes the special items
described above.
Adjusted financial results in the fourth quarter of
2020, compared with the fourth quarter of 2019, improved primarily
because of incremental utilization under new contracts executed in
2019 and 2020 with (i) Immigration and Customs Enforcement (ICE) to
activate our previously idle 910-bed Torrance County Detention
Facility in New Mexico, (ii) ICE to utilize capacity at our
3,060-bed La Palma Correctional Center in Arizona, (iii) the U.S.
Marshals Service (USMS) to utilize capacity at our 1,600-bed
Cimarron Correctional Facility in Oklahoma, (iv) the states of
Mississippi and Idaho to utilize available capacity at our
2,672-bed Tallahatchie County Correctional Facility in Mississippi
and our 1,896-bed Saguaro Correctional Facility in Arizona.
Financial results were also favorably impacted by lower general and
administrative expenses in the fourth quarter of 2020 due to a
reduction in incentive compensation.
The improved financial results were partially
offset by lower utilization of our existing contracts with ICE and
modest utilization declines across many of our state-level
contracts due to the ongoing impact of COVID-19.
Balance Sheet and Liquidity as of December 31,
2020
As of December 31, 2020, cash on hand was $113.2
million, with an additional $566.2 million available under our
revolving credit facility. Cash from operations and net proceeds
from the sale of a portfolio of government-leased properties
enabled us to repay $127.7 million of total debt during the fourth
quarter of 2020, net of the change in cash and cash equivalents,
increasing our financial flexibility. We have no material capital
commitments, and no debt maturities until October 2022, when $250.0
million of 5.0% unsecured notes matures. We currently expect to
repay these notes upon maturity with existing resources.
Recent Developments
On January 26, 2021, President Biden issued the Executive Order
(EO) on Reforming Our Incarceration System to Eliminate the Use of
Privately Operated Criminal Detention Facilities. The EO directs
the Attorney General to not renew Department of Justice (DOJ)
contracts with privately operated criminal detention facilities.
Two agencies of the DOJ, the BOP and the USMS, utilize our
services. The BOP houses inmates who have been convicted, and the
USMS is generally responsible for detainees who are awaiting trial.
The BOP has experienced a steady decline in inmate populations over
the last seven years, a trend that has been accelerated by the
COVID-19 pandemic. CoreCivic has one prison contract with the BOP,
accounting for 2% of its total revenue for the year ended December
31, 2020, which was recently renewed through November 2022.
Commenting on the EO, Damon Hininger stated, "With nearly 70,000
fewer individuals in their system since its peak in 2013, the BOP's
need for prison capacity from the private sector has been reduced
substantially. We are extremely proud of the critically important
services we have provided to the BOP during their period of need
extending for more than 20 years. Providing government agencies
flexibility to manage fluctuations in their populations is one of
the most important ways we provide value." Hininger concluded, "We
believe that our work is in alignment with the administration's
goals on equity. Our most recent ESG report shows we're making
real, measurable progress on our goals to expand proven reentry
programs to fight recidivism and change lives – programs that help
those in our care develop to their fullest potential and find
success in their next step in life."
Unlike the BOP, the USMS, does not own detention capacity and
relies on the private sector, along with county jails, for their
detainee population. We do not believe the USMS currently has
sufficient detention capacity that satisfies their need without the
private sector, and we are not currently aware of an alternative
solution for the USMS. CoreCivic currently has eight detention
facilities that have separate contracts where the USMS is the
primary customer that all expire at various times over the next
several years, with the exception of two contracts that have
indefinite terms. For the year ended December 31, 2020, the USMS
accounted for 21% of our total revenue.
Business Development Update
New Contract Award for the Development and Lease of Two
Correctional Facilities for the State of Alabama. On
February 1, 2021, we were awarded two new 30-year lease agreements
with the Alabama Department of Corrections (ADOC) for the
development of two correctional facilities, to be operated by the
ADOC. Final lease costs for both properties will become available
when project financing is completed. The two facilities will be the
largest development projects in the Company's history. We expect to
finance 10%-15% of the project costs with existing resources, with
the balance financed with non-recourse, project specific debt.
Construction of both facilities, which will contain an aggregate of
approximately 7,000 beds, is expected to commence later this year
or the beginning of 2022. The two facilities are expected to be
ready for occupancy once construction is completed in approximately
three years. Both facilities will be leased, operated and staffed
by the ADOC. CoreCivic will retain ownership and be responsible for
facility maintenance throughout the term of the leases.
Commencement of New Management Contract with the Federal
Bureau of Prisons for Reentry Services. On October 1,
2020, we were awarded a new contract by the Federal Bureau of
Prisons for residential reentry and home confinement services at
our 289-bed Turley Residential Center in Tulsa, Oklahoma and our
494-bed Oklahoma Reentry Opportunity Center in Oklahoma City,
Oklahoma. As a result, we have recently reactivated the Turley
Residential Center and began accepting residents at the facility
and at the Oklahoma Reentry Opportunity Center under the new
contract in February 2021. This contract supplements the existing
contract with the state of Oklahoma at the Oklahoma Reentry
Opportunity Center.
Sale of 42 Property Portfolio of Non-Core
Government-Leased Properties. On December 23, 2020, we
completed the sale of 42 non-core government-leased properties in a
single transaction to a third party for an aggregate price of
$106.5 million, generating net proceeds of $27.8 million after the
repayment of non-recourse mortgage notes associated with some of
the properties and other transaction-related costs. After
considering tax protection payments required to be paid to the
contributing partners of our wholly-owned subsidiary, Government
Real Estate Solutions, LLC (GRES) in connection with the sale, we
reported a net loss on this sale of $17.9 million. In connection
with the sale, we also incurred a net debt defeasance charge of
$7.1 million associated with the prepayment of the non-recourse
mortgage notes. We intend to dissolve GRES in 2021, and currently
expect to report a gain upon dissolution of the partnership
reflected as an increase to stockholders' equity of $15.0 million
to $20.0 million, assuming we take no further actions that impact
the partnership.
Assets Held for Sale. As of December 31,
2020, we had three additional non-core real estate assets held for
sale with a net book value of $279.4 million. Although we can
provide no assurance, based on interest expressed to-date, we are
hopeful to consummate the sale of these assets during the first
half of 2021. If we are successful in consummating the sale of
these assets, combined with the sale completed in the fourth
quarter of 2020, we expect the net proceeds from our sale of
non-core assets will be consistent with our original estimate of up
to $150 million.
Goodwill Impairment of Community
Segment. In connection with our annual impairment
test for the goodwill associated with the Community reporting unit,
during the fourth quarter of 2020, we performed a quantitative
goodwill impairment test and concluded to record an impairment
charge of $42.6 million, representing the full value of goodwill
allocated to this reporting unit. Our analysis considered numerous
factors, with the impairment predominantly driven by our
consideration of the broad-based declines in the market
capitalization of publicly-traded companies in our industry,
primarily during the second half of 2020, which is an indicator of
fair value under ASU 2017-04, "Intangibles-Goodwill and Other
(Topic 350): Simplifying the Test of Goodwill Impairment". Our
analysis also considered the reduction in cash flows from the
COVID-19 pandemic and the anticipated change in tax structure
effective January 1, 2021. We believe the cash flows in this
segment will improve once effects of the pandemic subside, and
remain committed to this segment, which focuses on helping those
entrusted to our care obtain employment and successfully
reintegrate into their communities. This segment serves a critical
need to parolees, defendants, and offenders who are serving their
full sentence, the last portion of their sentence, waiting to be
sentenced, awaiting trial while supervised in a community
environment, or as an alternative to incarceration.
Financial Guidance
At this time we are not providing 2021 financial guidance
because of uncertainties associated with COVID-19, as well as
uncertainties associated with the application of the
administration's various executive orders related to immigration
and criminal justice. We do not expect to provide financial
guidance until we have further clarity around these uncertainties.
Our business is very durable, and continues to generate cash flow
even during these unprecedented disruptions to the economy and
criminal justice system. This resiliency is due to the essential
nature of our facilities and services in our Safety and Community
segments, further enhanced by the diversification and stability of
our Properties segment, all supported by payments from highly rated
federal, state, and local government agencies.
Supplemental Financial Information and Investor
Presentations
We have made available on our website supplemental financial
information and other data for the fourth quarter of 2020.
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 2021. Written materials used in
the investor presentations will also be available on our website
beginning on or about March 1, 2021. 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 11, 2021, to
discuss our fourth quarter and full year 2020 financial results and
business outlook. Interested parties may access this information
through our website at http://ir.corecivic.com/ under “Events &
Presentations” of the Investors page. The live broadcast can also
be accessed by dialing 800-367-2403 in the U.S. and Canada,
including the confirmation passcode 3061661. The conference call
will be archived on our website following the completion of the
call. In addition, there will be a telephonic replay available
beginning at 1:00 p.m. central time (2:00 p.m. eastern time) on
February 11, 2021, through 1:00 p.m. central time (2:00 p.m.
eastern time) on February 19, 2021. To access the telephonic
replay, dial 888-203-1112 in the U.S. and Canada. International
callers may dial +1 719-457-0820 and enter passcode 3061661.
About CoreCivic
The Company 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 corrections and detention management, a network of
residential reentry centers 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 believe we are the largest
private owner of real estate used by U.S. government agencies. The
Company has been a flexible and dependable partner for government
for more than 35 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) changes in government policy (including
the DOJ not renewing contracts as a result of the EO), 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, 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); (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, increases in
costs of operations, fluctuations in interest rates and risks of
operations; (vi) the duration of the federal government’s
denial of 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 COVID-19; (vii) government and staff
responses to staff or residents testing positive
for COVID-19 within public and private correctional,
detention and reentry facilities, including the facilities we
operate; (viii) the location and duration of shelter in place
orders and other restrictions associated with COVID-19 that disrupt
the criminal justice system, along with government policies on
prosecutions and newly ordered legal restrictions that affect the
number of people placed in correctional, detention, and reentry
facilities; (ix) whether revoking our REIT election, effective
January 1, 2021, and our revised capital allocation strategy can be
implemented in a cost effective manner that provides the expected
benefits, including facilitating our planned debt reduction
initiative and planned return of capital to shareholders; (x) our
ability to identify and consummate the sale of additional non-core
assets at attractive prices; (xi) our ability to successfully
identify and consummate future development and acquisition
opportunities and our ability to successfully integrate the
operations of our completed acquisitions and realize projected
returns resulting therefrom; (xii) increases in costs to develop or
expand real estate properties 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 the
effects of, and delays caused by, COVID-19, weather, the
availability of labor and materials, labor conditions, delays in
obtaining legal approvals, unforeseen engineering, archeological or
environmental problems, and cost inflation, resulting in increased
construction costs; (xiii) our ability to identify and initiate
service opportunities that were unavailable under our former REIT
structure; (xiv) our ability to have met and maintained
qualification for taxation as a REIT for the years we elected REIT
status; and (xv) 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.
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.
CORECIVIC, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS)
ASSETS |
|
December 31,2020 |
|
December 31,2019 |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
113,219 |
|
|
$ |
92,120 |
|
Restricted cash |
|
|
23,549 |
|
|
|
26,973 |
|
Accounts receivable, net of
credit loss reserve of $6,103 and $3,217, respectively |
|
|
267,705 |
|
|
|
280,785 |
|
Prepaid expenses and other
current assets |
|
|
33,243 |
|
|
|
35,507 |
|
Assets held for sale |
|
|
279,406 |
|
|
|
- |
|
Total current assets |
|
|
717,122 |
|
|
|
435,385 |
|
Real estate and related
assets: |
|
|
|
|
Property and equipment, net of accumulated depreciation of
$1,559,388 and $1,510,117, respectively |
|
|
2,350,272 |
|
|
|
2,700,107 |
|
Other real estate assets |
|
|
228,243 |
|
|
|
238,637 |
|
Goodwill |
|
|
5,902 |
|
|
|
50,537 |
|
Non-current deferred tax
assets |
|
|
11,113 |
|
|
|
16,058 |
|
Other assets |
|
|
396,663 |
|
|
|
350,907 |
|
|
|
|
|
|
Total assets |
|
$ |
3,709,315 |
|
|
$ |
3,791,631 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses |
|
$ |
274,318 |
|
|
$ |
337,462 |
|
Current portion of long-term
debt |
|
|
39,087 |
|
|
|
31,349 |
|
Total current liabilities |
|
|
313,405 |
|
|
|
368,811 |
|
|
|
|
|
|
Long-term debt, net |
|
|
1,747,664 |
|
|
|
1,928,023 |
|
Deferred revenue |
|
|
18,336 |
|
|
|
12,469 |
|
Other liabilities |
|
|
216,468 |
|
|
|
105,579 |
|
|
|
|
|
|
Total liabilities |
|
|
2,295,873 |
|
|
|
2,414,882 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Preferred stock ― $0.01 par
value; 50,000 shares authorized; none issued and outstanding at
December 31, 2020 and 2019, respectively |
|
|
- |
|
|
|
- |
|
Common stock ― $0.01 par
value; 300,000 shares authorized; 119,638 and 119,096 shares issued
and outstanding at December 31, 2020 and 2019, respectively |
|
|
1,196 |
|
|
|
1,191 |
|
Additional paid-in
capital |
|
|
1,835,494 |
|
|
|
1,821,810 |
|
Accumulated deficit |
|
|
(446,519 |
) |
|
|
(446,252 |
) |
Total stockholders’ equity |
|
|
1,390,171 |
|
|
|
1,376,749 |
|
Non-controlling interest –
operating partnership |
|
|
23,271 |
|
|
|
- |
|
Total equity |
|
|
1,413,442 |
|
|
|
1,376,749 |
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
3,709,315 |
|
|
$ |
3,791,631 |
|
CORECIVIC, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS)
|
|
For the Three Months EndedDecember
31, |
|
For the Twelve Months EndedDecember
31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
Safety |
|
$ |
424,318 |
|
|
$ |
447,413 |
|
|
$ |
1,706,232 |
|
|
$ |
1,779,958 |
|
Community |
|
|
25,320 |
|
|
|
31,145 |
|
|
|
105,990 |
|
|
|
123,265 |
|
Properties |
|
|
23,802 |
|
|
|
19,224 |
|
|
|
93,098 |
|
|
|
77,307 |
|
Other |
|
|
37 |
|
|
|
27 |
|
|
|
165 |
|
|
|
159 |
|
|
|
|
473,477 |
|
|
|
497,809 |
|
|
|
1,905,485 |
|
|
|
1,980,689 |
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
Operating |
|
|
|
|
|
|
|
|
Safety |
|
|
315,127 |
|
|
|
332,415 |
|
|
|
1,288,938 |
|
|
|
1,304,121 |
|
Community |
|
|
21,158 |
|
|
|
24,409 |
|
|
|
88,903 |
|
|
|
95,159 |
|
Properties |
|
|
6,857 |
|
|
|
5,426 |
|
|
|
28,128 |
|
|
|
22,803 |
|
Other |
|
|
65 |
|
|
|
273 |
|
|
|
407 |
|
|
|
686 |
|
Total operating expenses |
|
|
343,207 |
|
|
|
362,523 |
|
|
|
1,406,376 |
|
|
|
1,422,769 |
|
General and administrative |
|
|
27,031 |
|
|
|
32,231 |
|
|
|
124,338 |
|
|
|
127,078 |
|
Depreciation and amortization |
|
|
36,425 |
|
|
|
36,804 |
|
|
|
150,861 |
|
|
|
144,572 |
|
Contingent consideration for acquisition of businesses |
|
|
- |
|
|
|
- |
|
|
|
620 |
|
|
|
- |
|
Asset impairments |
|
|
47,570 |
|
|
|
- |
|
|
|
60,628 |
|
|
|
4,706 |
|
|
|
|
454,233 |
|
|
|
431,558 |
|
|
|
1,742,823 |
|
|
|
1,699,125 |
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME |
|
|
19,244 |
|
|
|
66,251 |
|
|
|
162,662 |
|
|
|
281,564 |
|
|
|
|
|
|
|
|
|
|
OTHER (INCOME)
EXPENSE: |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
19,572 |
|
|
|
21,328 |
|
|
|
83,299 |
|
|
|
84,401 |
|
Expenses associated with debt repayments and refinancing
transactions |
|
|
7,141 |
|
|
|
602 |
|
|
|
7,141 |
|
|
|
602 |
|
Loss (gain) on sale of real estate assets |
|
|
17,943 |
|
|
|
- |
|
|
|
13,023 |
|
|
|
(287 |
) |
Other (income) expense |
|
|
188 |
|
|
|
450 |
|
|
|
(525 |
) |
|
|
123 |
|
|
|
|
44,844 |
|
|
|
22,380 |
|
|
|
102,938 |
|
|
|
84,839 |
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME TAXES |
|
|
(25,600 |
) |
|
|
43,871 |
|
|
|
59,724 |
|
|
|
196,725 |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
(1,203 |
) |
|
|
(1,897 |
) |
|
|
(4,386 |
) |
|
|
(7,839 |
) |
NET INCOME (LOSS) |
|
$ |
(26,803 |
) |
|
$ |
41,974 |
|
|
$ |
55,338 |
|
|
$ |
188,886 |
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest |
|
|
- |
|
|
|
- |
|
|
|
(1,181 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON
STOCKHOLDERS |
|
$ |
(26,803 |
) |
|
$ |
41,974 |
|
|
$ |
54,157 |
|
|
$ |
188,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS (LOSS) PER SHARE |
|
$ |
(0.22 |
) |
|
$ |
0.35 |
|
|
$ |
0.45 |
|
|
$ |
1.59 |
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS (LOSS) PER SHARE |
|
$ |
(0.22 |
) |
|
$ |
0.35 |
|
|
$ |
0.45 |
|
|
$ |
1.59 |
|
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 EndedDecember
31, |
|
For the Twelve Months EndedDecember
31, |
|
|
2020 |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
Net income (loss) attributable to common stockholders |
$ |
(26,803 |
) |
|
$ |
41,974 |
|
$ |
54,157 |
|
$ |
188,886 |
Non-controlling interest |
|
- |
|
|
|
- |
|
|
1,181 |
|
|
- |
Diluted net income (loss) attributable to common
stockholders |
$ |
(26,803 |
) |
|
$ |
41,974 |
|
$ |
55,338 |
|
$ |
188,886 |
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
Expenses associated with debt repayments and refinancing
transactions |
|
7,141 |
|
|
|
602 |
|
|
7,141 |
|
|
602 |
Expenses associated with mergers and acquisitions |
|
- |
|
|
|
175 |
|
|
338 |
|
|
1,132 |
Expenses associated with COVID-19 |
|
2,792 |
|
|
|
- |
|
|
13,777 |
|
|
- |
Expenses associated with changes in corporate tax structure |
|
195 |
|
|
|
- |
|
|
5,240 |
|
|
- |
Deferred tax expense on Kansas lease structure |
|
- |
|
|
|
- |
|
|
3,085 |
|
|
- |
Start-up expenses |
|
- |
|
|
|
- |
|
|
- |
|
|
9,480 |
Contingent consideration for acquisition of businesses |
|
- |
|
|
|
- |
|
|
620 |
|
|
- |
Loss on sale of real estate assets, net of taxes |
|
17,943 |
|
|
|
- |
|
|
13,555 |
|
|
- |
Asset impairments |
|
47,570 |
|
|
|
- |
|
|
60,628 |
|
|
4,706 |
Adjusted net income |
$ |
48,838 |
|
|
$ |
42,751 |
|
$ |
159,722 |
|
$ |
204,806 |
Weighted average common shares outstanding – basic |
|
119,636 |
|
|
|
119,096 |
|
|
119,559 |
|
|
119,028 |
Effect of dilutive securities: |
|
|
|
|
|
|
|
Stock options |
|
- |
|
|
|
- |
|
|
- |
|
|
22 |
Restricted stock-based awards |
|
56 |
|
|
|
144 |
|
|
28 |
|
|
114 |
Non-controlling interest – operating partnership units |
|
1,342 |
|
|
|
- |
|
|
1,342 |
|
|
- |
Weighted average shares and assumed conversions - diluted |
|
121,034 |
|
|
|
119,240 |
|
|
120,929 |
|
|
119,164 |
Adjusted Diluted Earnings Per Share |
$ |
0.40 |
|
|
$ |
0.36 |
|
$ |
1.32 |
|
$ |
1.72 |
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 EndedDecember
31, |
|
For the Twelve Months EndedDecember
31, |
|
|
2020 |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(26,803 |
) |
|
$ |
41,974 |
|
$ |
55,338 |
|
$ |
188,886 |
|
Depreciation and amortization of real estate assets |
|
27,447 |
|
|
|
27,036 |
|
|
112,046 |
|
|
107,402 |
|
Impairment of real estate assets |
|
4,225 |
|
|
|
- |
|
|
14,380 |
|
|
4,428 |
|
Loss (gain) on sale of real estate assets, net of taxes |
|
17,943 |
|
|
|
- |
|
|
13,555 |
|
|
(287 |
) |
Funds From Operations |
$ |
22,812 |
|
|
$ |
69,010 |
|
$ |
195,319 |
|
$ |
300,429 |
|
|
|
|
|
|
|
|
|
Expenses associated with debt repayments and refinancing
transactions |
|
7,141 |
|
|
|
602 |
|
|
7,141 |
|
|
602 |
|
Expenses associated with mergers and acquisitions |
|
- |
|
|
|
175 |
|
|
338 |
|
|
1,132 |
|
Contingent consideration for acquisition of businesses |
|
- |
|
|
|
- |
|
|
620 |
|
|
- |
|
Expenses associated with COVID-19 |
|
2,792 |
|
|
|
- |
|
|
13,777 |
|
|
- |
|
Expenses associated with changes in corporate tax
structure |
|
195 |
|
|
|
- |
|
|
5,240 |
|
|
- |
|
Deferred tax expense on Kansas lease structure |
|
- |
|
|
|
- |
|
|
3,085 |
|
|
- |
|
Start-up expenses |
|
- |
|
|
|
- |
|
|
- |
|
|
9,480 |
|
Goodwill and other impairments |
|
43,345 |
|
|
|
- |
|
|
46,248 |
|
|
278 |
|
Normalized Funds From Operations |
$ |
76,285 |
|
|
$ |
69,787 |
|
$ |
271,768 |
|
$ |
311,921 |
|
|
|
|
|
|
|
|
|
Funds From Operations Per Diluted Share |
$ |
0.19 |
|
|
$ |
0.58 |
|
$ |
1.62 |
|
$ |
2.52 |
|
Normalized Funds From Operations Per Diluted Share |
$ |
0.63 |
|
|
$ |
0.59 |
|
$ |
2.25 |
|
$ |
2.62 |
|
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 EndedDecember
31, |
|
For the Twelve Months EndedDecember
31, |
|
|
2020 |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(26,803 |
) |
|
$ |
41,974 |
|
$ |
55,338 |
|
$ |
188,886 |
Interest expense |
|
22,216 |
|
|
|
22,033 |
|
|
93,453 |
|
|
86,661 |
Depreciation and amortization |
|
36,425 |
|
|
|
36,804 |
|
|
150,861 |
|
|
144,572 |
Income tax expense |
|
1,203 |
|
|
|
1,897 |
|
|
4,386 |
|
|
7,839 |
EBITDA |
$ |
33,041 |
|
|
$ |
102,708 |
|
$ |
304,038 |
|
$ |
427,958 |
Expenses associated with debt repayments and refinancing
transactions |
|
7,141 |
|
|
|
602 |
|
|
7,141 |
|
|
602 |
Expenses associated with mergers and acquisitions |
|
- |
|
|
|
175 |
|
|
338 |
|
|
1,132 |
Expenses associated with COVID-19 |
|
2,792 |
|
|
|
- |
|
|
13,777 |
|
|
- |
Expenses associated with changes in corporate tax
structure |
|
195 |
|
|
|
- |
|
|
5,240 |
|
|
- |
Contingent consideration for acquisition of businesses |
|
- |
|
|
|
- |
|
|
620 |
|
|
- |
Start-up expenses |
|
- |
|
|
|
- |
|
|
- |
|
|
9,480 |
Loss on sale of real estate assets |
|
17,943 |
|
|
|
- |
|
|
13,023 |
|
|
- |
Asset impairments |
|
47,570 |
|
|
|
- |
|
|
60,628 |
|
|
4,706 |
Adjusted EBITDA |
$ |
108,682 |
|
|
$ |
103,485 |
|
$ |
404,805 |
|
$ |
443,878 |
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 security 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 REIT performance,
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.
EBITDA, Adjusted EBITDA, and Normalized 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.
Start-up expenses represent the incremental operating losses
incurred during the period we activate idle correctional
facilities. 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 refinancing, M&A
activity, start-up expenses, 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. Even though expenses associated with
mergers and acquisitions may be recurring, the magnitude and timing
fluctuate based on the timing and scope of M&A activity, and
therefore, such expenses, which are not a necessary component of
the ongoing operations of the Company, may not be comparable from
period to period.
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: Cameron Hopewell - Managing Director, Investor Relations
- (615) 263-3024Financial Media: David Gutierrez, Dresner Corporate
Services - (312) 780-7204 |
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