CoreCivic, Inc. (NYSE: CXW) (the Company)
announced today its financial results for the first quarter of
2021.
Financial Highlights – First Quarter 2021
- Total revenue of $454.7 million
- CoreCivic Safety revenue of $409.8
million
- CoreCivic Community revenue of $23.7
million
- CoreCivic Properties revenue of $21.3
million
- Special items include income tax expense of $114.2 million
primarily associated with change in corporate tax structure and
$51.7 million for a shareholder litigation settlement
- Net loss attributable to common stockholders of $125.6
million
- Diluted loss per share of $1.05
- Adjusted diluted EPS of $0.24
- Normalized FFO per diluted share of $0.44
- Adjusted EBITDA of $96.3 million
Damon T. Hininger, CoreCivic's President and Chief
Executive Officer, said, "While our GAAP financial results were
impacted by certain non-recurring charges related to our conversion
from a REIT to a taxable C-corporation and a shareholder litigation
settlement, we are pleased with the strong underlying performance
of the business despite the challenges of operating during the
COVID-19 pandemic. We continue to generate strong cash flows and
remain focused on repaying debt to improve our credit profile.
Following the revocation of our REIT status, in April we were able
to successfully access the credit markets to extend our debt
maturities by issuing unsecured senior notes."
We are dedicated to helping those in our care be
successful in their next step in life. Every day, our 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, our 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. We help our 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.
First Quarter 2021 Financial Results Compared With First
Quarter 2020
Net loss attributable to common stockholders in the
first quarter of 2021 totaled $125.6 million, or $1.05 per diluted
share, and was driven by $154.8 million, or $1.29 per share, of
special items, compared with net income attributable to common
stockholders generated in the first quarter of 2020 of $32.1
million, or $0.27 per diluted share. Adjusted for special items,
net income in the first quarter of 2021 was $29.3 million, or $0.24
per diluted share (Adjusted Diluted EPS), compared with adjusted
net income in the first quarter of 2020 of $37.2 million, or $0.30
per diluted share. Special items in the first quarter of 2021
included a non-recurring charge of $114.2 million in income taxes
primarily associated with change in corporate tax structure, $51.7
million in shareholder litigation expense, $1.6 million in expenses
associated with COVID-19, $1.3 million in asset impairments, less
$14.1 million of income tax benefits for the aforementioned special
items. Special items in the first quarter of 2020 included $3.1
million of deferred tax expenses related to our Kansas lease
structure, $0.5 million in asset impairments, and $0.3 million of
expenses associated with mergers and acquisitions.
Funds From Operations (FFO) was a loss of $100.9
million, or $0.83 per diluted share, in the first quarter of 2021,
compared to $61.7 million, or $0.51 per diluted share, in the first
quarter of 2020. Normalized FFO, which excludes the special items
described above, was $53.0 million, or $0.44 per diluted share, in
the first quarter of 2021, compared with $65.3 million, or $0.54
per diluted share, in the first quarter of 2020.
EBITDA was $41.6 million in the first quarter of
2021, compared with $99.5 million in the first quarter of 2020.
Adjusted EBITDA, which excludes the special items described above,
was $96.3 million in the first quarter of 2021, compared with
$100.4 million in the first quarter of 2020, including a decrease
of $2.3 million resulting from the sale of 42 properties sold in
the fourth quarter of 2020.
Adjusted financial results in the first quarter of
2021, compared with the first quarter of 2020, declined primarily
because 2021 financial results reflect an income tax provision
under our new corporate tax structure, compared with the prior year
when we were entitled to a deduction for dividends paid as a real
estate investment trust (REIT). As a REIT, therefore, we incurred
very little income tax expense. Financial results in 2021 also
reflected lower utilization under contracts with Immigration and
Customs Enforcement (ICE) and modest occupancy declines across many
of our state-level contracts due to the ongoing impact of
COVID-19.
Issuance of Senior Unsecured Notes
On April 14, 2021, we completed the offering of $450.0 million
aggregate principal amount of 8.25% senior unsecured notes, due
April 2026 (the new notes). The new notes priced at 99% of face
value and as a result have an effective yield to maturity of 8.5%.
We used net proceeds from the offering of the new notes of
approximately $435.1 million, after deducting the original
issuance, underwriting discounts, and estimated offering expenses,
to redeem all $250.0 million principal amount of our outstanding
5.0% senior unsecured notes due 2022, which have been called for
redemption on May 14, 2021 by a redemption notice issued on April
14, 2021, including the payment of the applicable make-whole amount
and accrued interest. We used additional net proceeds from the
offering to repay $149.0 million of the $350.0 million principal
amount of our outstanding 4.625% senior unsecured notes due 2023
(the 2023 notes) at an aggregate purchase price of $151.2 million
in privately negotiated transactions, reducing the outstanding
balance of the 2023 notes to $201.0 million. The remaining net
proceeds from the offering were used to pay-down a portion of the
amounts outstanding under our revolving credit facility and for
general corporate purposes.
Business Development Update
Update on Contracts with the United States Marshals
Service.Pursuant to President Biden's Executive Order on
Reforming Our Incarceration System to Eliminate the Use of
Privately Operated Criminal Detention Facilities, or the Private
Prison EO, the U.S. Marshals Service ("USMS") has indicated that it
has been advised by the Office of the Deputy Attorney General not
to renew existing contracts, or enter into new contracts for
private detention facilities. We currently have four contracts with
the USMS that expire in 2021. The USMS has notified the Company
that it will not be renewing its contract for our Northeast Ohio
Correctional Center, which expires May 30, 2021. We continue to
explore opportunities with various government agencies, including
the state of Ohio, the primary user of the Northeast Ohio facility,
to replace the capacity currently used by the USMS.
In addition to the contract with the USMS for our Northeast Ohio
Correctional Center, the USMS has full access to our 600-bed West
Tennessee Detention Facility and our 1,033-bed Leavenworth
Detention Center under direct contracts with the USMS that expire
in September 2021 and December 2021, respectively. The USMS also
utilizes less than 100 of the 664 beds at our Crossroads
Correctional Center under a contract that was scheduled to expire
in April 2021, but was extended through June 30, 2021, and is not
expected to be renewed thereafter. We currently expect the USMS to
relocate detainees at the Crossroads Correctional Center. The state
of Montana, which utilizes the remaining capacity at the Crossroads
facility, has expressed a desire to utilize the beds used by the
USMS at the facility, and we currently expect to incorporate their
utilization into a contract renewal that begins July 1, 2021,
negating the financial impact of the USMS vacancy. We do not yet
know if the USMS will relocate the detainees at our West Tennessee
and Leavenworth facilities. We continue to work with the USMS to
enable it to fulfill its mission, including at the Northeast Ohio,
West Tennessee, and Leavenworth facilities. However, we can provide
no assurance that we will be able to provide a solution that is
acceptable to all parties that would be involved in such a
solution.
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 actions and policies 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 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 first quarter of
2021. 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 second quarter of 2021. Written materials
used in the investor presentations will also be available on our
website beginning on or about May 17, 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, May 6, 2021, and will
be accessible through the Company's website at www.corecivic.com
under the “Events & Presentations” section 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 7487376. An online replay of the call will be archived on
our website promptly following the conference 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 May 6, 2021, through 1:00
p.m. central time (2:00 p.m. eastern time) on May 14, 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 8097453.
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. CoreCivic provides 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. CoreCivic is the nation’s largest
owner of partnership correctional, detention and residential
reentry facilities, and believes it is the largest private owner of
real estate used by government agencies in the U.S. CoreCivic has
been a flexible and dependable partner for government for more than
35 years. CoreCivic’s employees are driven by a deep sense of
service, high standards of professionalism and a responsibility to
help government better the public good.
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 United States Department of Justice, or DOJ, not renewing
contracts as a result of the Private Prison EO) (two agencies of
the DOJ, the United States Federal Bureau of Prisons and the USMS
utilize our services), 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) 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, including financing we
are pursuing on behalf of the state of Alabama for the construction
of two correctional facilities. 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 |
|
March 31,2021 |
|
December 31,2020 |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
168,141 |
|
|
$ |
113,219 |
|
Restricted cash |
|
|
16,413 |
|
|
|
23,549 |
|
Accounts receivable, net of
credit loss reserve of $6,105 and $6,103, respectively |
|
|
259,620 |
|
|
|
267,705 |
|
Prepaid expenses and other
current assets |
|
|
27,681 |
|
|
|
33,243 |
|
Assets held for sale |
|
|
281,523 |
|
|
|
279,406 |
|
Total current assets |
|
|
753,378 |
|
|
|
717,122 |
|
Real estate and related
assets: |
|
|
|
|
Property and equipment, net of accumulated depreciation of
$1,572,711 and $1,559,388, respectively |
|
|
2,333,340 |
|
|
|
2,350,272 |
|
Other real estate assets |
|
|
225,341 |
|
|
|
228,243 |
|
Goodwill |
|
|
5,902 |
|
|
|
5,902 |
|
Non-current deferred tax
assets |
|
|
- |
|
|
|
11,113 |
|
Other assets |
|
|
395,843 |
|
|
|
396,663 |
|
|
|
|
|
|
Total assets |
|
$ |
3,713,804 |
|
|
$ |
3,709,315 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses |
|
$ |
346,494 |
|
|
$ |
274,318 |
|
Current portion of long-term
debt |
|
|
38,914 |
|
|
|
39,087 |
|
Total current liabilities |
|
|
385,408 |
|
|
|
313,405 |
|
|
|
|
|
|
Long-term debt, net |
|
|
1,719,115 |
|
|
|
1,747,664 |
|
Deferred revenue |
|
|
22,804 |
|
|
|
18,336 |
|
Non-current deferred tax
liabilities |
|
|
85,356 |
|
|
|
- |
|
Other liabilities |
|
|
210,886 |
|
|
|
216,468 |
|
|
|
|
|
|
Total liabilities |
|
|
2,423,569 |
|
|
|
2,295,873 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Preferred stock ― $0.01 par
value; 50,000 shares authorized; none issued and outstanding at
March 31, 2021, and December 31, 2020, respectively |
|
|
- |
|
|
|
- |
|
Common stock ― $0.01 par
value; 300,000 shares authorized; 120,277 and 119,638 shares issued
and outstanding at March 31, 2021 and December 31, 2020,
respectively |
|
|
1,203 |
|
|
|
1,196 |
|
Additional paid-in
capital |
|
|
1,838,066 |
|
|
|
1,835,494 |
|
Accumulated deficit |
|
|
(572,305 |
) |
|
|
(446,519 |
) |
Total stockholders’ equity |
|
|
1,266,964 |
|
|
|
1,390,171 |
|
Non-controlling interest –
operating partnership |
|
|
23,271 |
|
|
|
23,271 |
|
Total equity |
|
|
1,290,235 |
|
|
|
1,413,442 |
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
3,713,804 |
|
|
$ |
3,709,315 |
|
|
|
|
|
|
|
|
|
|
CORECIVIC, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS)
|
|
For the Three Months EndedMarch
31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
REVENUES: |
|
|
|
|
Safety |
|
$ |
409,769 |
|
|
$ |
437,765 |
|
Community |
|
|
23,658 |
|
|
|
30,599 |
|
Properties |
|
|
21,255 |
|
|
|
22,679 |
|
Other |
|
|
36 |
|
|
|
58 |
|
|
|
|
454,718 |
|
|
|
491,101 |
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
Operating |
|
|
|
|
Safety |
|
|
305,427 |
|
|
|
330,737 |
|
Community |
|
|
21,100 |
|
|
|
24,449 |
|
Properties |
|
|
6,274 |
|
|
|
6,954 |
|
Other |
|
|
83 |
|
|
|
175 |
|
Total operating expenses |
|
|
332,884 |
|
|
|
362,315 |
|
General and administrative |
|
|
29,530 |
|
|
|
31,279 |
|
Depreciation and amortization |
|
|
32,712 |
|
|
|
37,952 |
|
Shareholder litigation expense |
|
|
51,745 |
|
|
|
- |
|
Asset impairments |
|
|
1,308 |
|
|
|
536 |
|
|
|
|
448,179 |
|
|
|
432,082 |
|
|
|
|
|
|
OPERATING
INCOME |
|
|
6,539 |
|
|
|
59,019 |
|
|
|
|
|
|
OTHER (INCOME)
EXPENSE: |
|
|
|
|
Interest expense, net |
|
|
18,428 |
|
|
|
22,538 |
|
Other (income) expense |
|
|
148 |
|
|
|
(533 |
) |
|
|
|
18,576 |
|
|
|
22,005 |
|
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAXES |
|
|
(12,037 |
) |
|
|
37,014 |
|
|
|
|
|
|
Income tax expense |
|
|
(113,531 |
) |
|
|
(3,776 |
) |
NET INCOME
(LOSS) |
|
$ |
(125,568 |
) |
|
$ |
33,238 |
|
|
|
|
|
|
Net income attributable to non-controlling interest |
|
|
- |
|
|
|
(1,181 |
) |
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS |
|
$ |
(125,568 |
) |
|
$ |
32,057 |
|
|
|
|
|
|
BASIC EARNINGS (LOSS) PER
SHARE |
|
$ |
(1.05 |
) |
|
$ |
0.27 |
|
|
|
|
|
|
DILUTED EARNINGS (LOSS)
PER SHARE |
|
$ |
(1.05 |
) |
|
$ |
0.27 |
|
|
|
|
|
|
|
|
|
|
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 EndedMarch
31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
Net income (loss) attributable to common stockholders |
$ |
(125,568 |
) |
|
$ |
32,057 |
|
Non-controlling interest |
|
- |
|
|
|
1,181 |
|
Diluted net income (loss) attributable to common stockholders |
$ |
(125,568 |
) |
|
$ |
33,238 |
|
|
|
|
|
|
Special items: |
|
|
|
|
Expenses associated with mergers and acquisitions |
|
- |
|
|
|
338 |
|
Expenses associated with COVID-19 |
|
1,598 |
|
|
|
- |
|
Income taxes associated with change in corporate tax structure and
other special tax items |
|
114,249 |
|
|
|
3,085 |
|
Shareholder litigation expense |
|
51,745 |
|
|
|
- |
|
Asset impairments |
|
1,308 |
|
|
|
536 |
|
Income tax benefit for special items |
|
(14,060 |
) |
|
|
- |
|
Adjusted net income |
$ |
29,272 |
|
|
$ |
37,197 |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding – basic |
|
119,909 |
|
|
|
119,336 |
|
Effect of dilutive securities: |
|
|
|
|
Stock options |
|
- |
|
|
|
- |
|
Restricted stock-based awards |
|
115 |
|
|
|
47 |
|
Non-controlling interest – operating partnership units |
|
1,342 |
|
|
|
1,342 |
|
|
|
|
|
|
|
|
|
Weighted average shares and assumed conversions - diluted |
|
121,366 |
|
|
|
120,725 |
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per Diluted Share |
$ |
0.24 |
|
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
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 EndedMarch
31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
Net income (loss) |
$ |
(125,568 |
) |
|
$ |
33,238 |
|
Depreciation and amortization
of real estate assets |
|
23,759 |
|
|
|
28,106 |
|
Impairment of real estate
assets |
|
1,308 |
|
|
|
405 |
|
Income tax benefit for special
items |
|
(350 |
) |
|
|
- |
|
Funds From Operations |
$ |
(100,851 |
) |
|
$ |
61,749 |
|
|
|
|
|
Expenses associated with
mergers and acquisitions |
|
- |
|
|
|
338 |
|
Expenses associated with
COVID-19 |
|
1,598 |
|
|
|
- |
|
Income taxes associated with
change in corporate tax structure and other special tax items |
|
114,249 |
|
|
|
3,085 |
|
Shareholder litigation
expense |
|
51,745 |
|
|
|
- |
|
Goodwill and other
impairments |
|
- |
|
|
|
131 |
|
Income tax benefit for special
items |
|
(13,710 |
) |
|
|
- |
|
Normalized Funds From Operations |
$ |
53,031 |
|
|
$ |
65,303 |
|
|
|
|
|
Funds From Operations Per
Diluted Share |
$ |
(0.83 |
) |
|
$ |
0.51 |
|
|
|
|
|
|
|
|
|
Normalized Funds From
Operations Per Diluted Share |
$ |
0.44 |
|
|
$ |
0.54 |
|
|
|
|
|
|
|
|
|
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 EndedMarch
31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
Net income (loss) |
$ |
(125,568 |
) |
|
$ |
33,238 |
|
Interest expense |
|
20,925 |
|
|
|
24,555 |
|
Depreciation and
amortization |
|
32,712 |
|
|
|
37,952 |
|
Income tax expense |
|
113,531 |
|
|
|
3,776 |
|
EBITDA |
$ |
41,600 |
|
|
$ |
99,521 |
|
|
|
|
|
|
|
|
|
Expenses associated with
mergers and acquisitions |
|
- |
|
|
|
338 |
|
Expenses associated with
COVID-19 |
|
1,598 |
|
|
|
- |
|
Shareholder litigation
expense |
|
51,745 |
|
|
|
- |
|
Asset impairments |
|
1,308 |
|
|
|
536 |
|
Adjusted EBITDA |
$ |
96,251 |
|
|
$ |
100,395 |
|
|
|
|
|
|
|
|
|
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
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. 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. 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, 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) 263-3024 |
|
Financial Media: David Gutierrez, Dresner Corporate Services -
(312) 780-7204 |
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