Core Points - CoreCivic, Inc. has entered into a definitive agreement to acquire the Farmville Detention Center for a total purchase price of $67.0 million [1][2] - The acquisition is expected to close on July 1, 2025, and will generate approximately $40.0 million in annual incremental revenue [2] - The Farmville Detention Center has a capacity of 736 beds and provides services under an agreement with U.S. Immigration & Customs Enforcement (ICE) that expires in March 2029 [1][2] - The acquisition will add over 200 new employees to CoreCivic's workforce [3] Company Overview - CoreCivic is a diversified government-solutions company that provides a range of services including corrections and detention management, alternatives to incarceration, and government real estate solutions [3] - The company is the largest owner of partnership correctional, detention, and residential reentry facilities in the United States and has over 40 years of experience as a government partner [3]

Group 1: Immigration Enforcement Impact - The United States is increasing immigration enforcement, creating potential benefits for private prison stocks [1] - Los Angeles is a focal point for recent Immigration and Customs Enforcement (ICE) raids, resulting in over 100 arrests and heightened political tensions [1] Group 2: CoreCivic (CXW) - CoreCivic, a leading private prison operator, is experiencing unprecedented demand due to increased ICE detention efforts [2] - The company reported Q1 earnings of $0.23 per share, nearly double expectations, with revenue reaching $488 million and facility capacity at 77% [3] - CoreCivic plans to open new detention centers, including a 2,560-bed facility in California and a 1,033-bed complex in Kansas, while expanding capacity in multiple states [3][4] Group 3: GEO Group (GEO) - GEO Group operates nearly 20 detention centers and has seen its stock rise over 80% post-2024 election due to expectations of increased immigration enforcement [6][7] - The company's stock is currently trading at $26.95, reflecting strong market performance [7] - GEO is expanding its electronic monitoring operations, currently tracking about 186,000 immigrants with plans to scale up to 450,000 using advanced technology [9] - In early 2025, GEO secured a contract with ICE to reopen the 1,000-bed Delaney Hall Facility in Newark, New Jersey [9]

CoreCivic (CXW) Conference Summary Company Overview - CoreCivic is a diversified government solutions company focused on addressing government challenges in a cost-effective manner [1][2] - The company operates in three segments: Safety, Property, and Community [4][5] Key Segments 1. **Safety Segment** - CoreCivic has been in the correctional and detention facility business since 1983, which constitutes the majority of its operations [5] - The segment generates approximately 92% of the company's Net Operating Income (NOI) [8][9] - The company operates 43 facilities with close to 65,000 beds, including 7 idle facilities [10][12] 2. **Property Segment** - This segment involves owning correctional facilities and leasing them to state governments, generating fixed monthly rent [5][6] - Contributes about 3.1% of NOI [9] 3. **Community Segment** - Focuses on residential reentry facilities (halfway houses), contributing 5.2% of NOI [10] Financial Performance - For the first quarter, CoreCivic reported: - Revenue: $488.6 million - Net Income: $25.1 million - Adjusted EBITDA: $81 million [8] Market Position - CoreCivic is the largest non-government owner of correctional and detention real estate in the U.S., owning about 55% of all privately owned capacity [12] - The company manages approximately 39% of privately managed correctional capacity [12] Recent Developments - The company has seen a recovery in occupancy rates post-COVID-19, currently at 77%, with expectations to return to pre-pandemic levels [16][17] - There are nine idle facilities with 13,419 beds that could be activated, presenting significant growth opportunities [20][22] Opportunities and Challenges - The transition from the Biden administration to the Trump administration has led to increased ICE detention populations, creating opportunities for CoreCivic [18][19] - The company is currently negotiating two letter contracts with ICE for facilities in Leavenworth, Kansas, and California City, which could generate significant EBITDA [36][38] Capital Allocation Strategy - CoreCivic has focused on paying down debt, having reduced approximately $1.3 billion since converting from a REIT to a C corporation [29] - The company is currently engaged in a stock buyback program, believing its stock is undervalued [30][63] Competitive Landscape - CoreCivic's main competitor is GEO Group, which has been the incumbent for various contracts [12][51] - The company is interested in pursuing the ISAP program, which is up for renewal, and believes it can provide a competitive alternative [52][56] Conclusion - CoreCivic is well-positioned to capitalize on the growing demand for detention facilities, driven by staffing challenges in the public sector and increasing correctional populations [44][49] - The company remains focused on maintaining its operational efficiency and exploring strategic acquisitions while prioritizing shareholder returns through stock buybacks [61][63]

Part I – Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for CoreCivic, Inc. for the quarter ended March 31, 2025, including Balance Sheets, Statements of Operations, Cash Flows, and Stockholders' Equity, with notes on key financial activities [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to **$3.00 billion** from **$2.93 billion** at year-end 2024, primarily driven by a new right-of-use asset for the Dilley Facility, while cash decreased to **$74.5 million** Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,002,446** | **$2,931,891** | | Cash and cash equivalents | $74,498 | $107,487 | | Property and equipment, net | $2,057,518 | $2,060,024 | | **Total Liabilities** | **$1,527,200** | **$1,438,540** | | Long-term debt, net | $969,885 | $973,073 | | **Total Stockholders' Equity** | **$1,475,246** | **$1,493,351** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, CoreCivic reported net income of **$25.1 million**, a significant increase from **$9.5 million** in Q1 2024, primarily due to the absence of **$27.2 million** in prior-year debt refinancing expenses, despite a slight revenue decrease to **$488.6 million** Q1 2025 vs. Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Revenue** | **$488,627** | **$500,686** | | Operating Expenses | $374,737 | $378,103 | | Expenses associated with debt repayments | $0 | $27,242 | | **Income Before Income Taxes** | **$32,090** | **$9,043** | | **Net Income** | **$25,113** | **$9,543** | | **Diluted EPS** | **$0.23** | **$0.08** | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was **$44.5 million** for Q1 2025, down from **$70.4 million** in Q1 2024, with increased cash used in investing activities and **$53.7 million** used in financing, primarily for common stock repurchases Q1 2025 vs. Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $44,484 | $70,354 | | Net cash used in investing activities | ($24,982) | ($3,753) | | Net cash used in financing activities | ($53,688) | ($76,180) | | **Net Decrease in Cash** | **($34,186)** | **($9,579)** | - The company spent **$50.6 million** on the purchase and retirement of common stock in Q1 2025, compared to **$49.0 million** in Q1 2024[16](index=16&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's structure, accounting policies, and key financial events, including the resumption of operations at the Dilley Facility, activation efforts at other idle facilities, ongoing debt management, a significant share repurchase program, and updates on legal proceedings - As of March 31, 2025, the company operated **43 correctional facilities** (CoreCivic Safety), **21 residential reentry centers** (CoreCivic Community), and owned **6 properties** leased to government agencies (CoreCivic Properties)[24](index=24&type=chunk) - The company resumed operations at the **2,400-bed Dilley Immigration Processing Center** in March 2025 under an amended agreement with ICE, establishing a new right-of-use asset and liability of **$116.9 million**[40](index=40&type=chunk) - The company is activating its Midwest Regional Reception Center and California City Immigration Processing Center under letter agreements with ICE while negotiating long-term contracts[36](index=36&type=chunk) - The company repurchased **1.9 million shares** for **$37.9 million** in Q1 2025, leaving **$131.0 million** available under its **$350.0 million** share repurchase authorization[50](index=50&type=chunk) - A jury returned a verdict of **$27.8 million** against the company in an inmate litigation matter, which the company intends to appeal and believes is substantially covered by insurance[64](index=64&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, highlighting the impact of executive and legislative actions on federal demand, particularly from ICE, and the company's strategy of activating idle facilities, managing debt, and executing its share repurchase program [Overview](index=25&type=section&id=Overview) The company anticipates significant growth opportunities from new executive actions and legislation, such as the Laken Riley Act, which are expected to increase demand for detention capacity from federal partners like ICE, leading CoreCivic to resume operations at the Dilley Facility and activate other idle facilities - Executive actions by President Trump on January 20, 2025, are intended to secure borders and increase detention of removable aliens, directing the DHS to expand facility capacity[81](index=81&type=chunk) - The Laken Riley Act, signed into law on January 29, 2025, mandates detention for certain non-U.S. nationals, which ICE estimates could require **60,000 to 110,000 additional detention beds**[84](index=84&type=chunk) - The company is responding to increased ICE demand by resuming operations at the Dilley Facility and entering into letter agreements to activate the Midwest Regional Reception Center and the California City Facility[85](index=85&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q1 2025 revenue fell **2.4%** to **$488.6 million**, primarily due to a **64.6%** drop in lease revenue and lower federal management revenue, while net income surged to **$25.1 million** from **$9.5 million** in Q1 2024 due to the absence of prior-year debt refinancing charges Revenue by Source (in millions) | Revenue Source | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Federal | $241.3 | $262.4 | $(21.1) | (8.0%) | | State | $198.6 | $188.8 | $9.8 | 5.2% | | Lease revenue | $4.6 | $13.0 | $(8.4) | (64.6%) | | **Total revenue** | **$488.6** | **$500.7** | **$(12.1)** | **(2.4%)** | - The decrease in federal revenue was primarily due to the termination of funding for the Dilley Facility in August 2024, which resumed operations on March 5, 2025[96](index=96&type=chunk) - The decrease in lease revenue was driven by the termination of the lease for the California City Facility, effective March 31, 2024[99](index=99&type=chunk) - Operating expenses decreased by **$3.4 million** YoY, mainly due to the temporary closure of the Dilley Facility, partially offset by wage increases across the portfolio[100](index=100&type=chunk)[101](index=101&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company's capital strategy focuses on debt management and returning capital to shareholders, with **$37.9 million** in common stock repurchases in Q1 2025, **$131.0 million** remaining under authorization, and no debt maturities until 2027 - The company's Board of Directors increased the share repurchase program authorization to **$350.0 million**. As of March 31, 2025, a total of **$219.0 million** has been used, with **$131.0 million** remaining[133](index=133&type=chunk) - The company has internally approved **$65.0 million to $70.0 million** in capital expenditures for activating previously idled facilities to meet anticipated demand[134](index=134&type=chunk) Contractual Cash Obligations as of March 31, 2025 (in thousands) | Obligation | Total | | :--- | :--- | | Long-term debt | $994,429 | | Interest on senior and mortgage notes | $272,994 | | Dilley Facility Lease | $245,336 | | Other Leases & Commitments | $32,088 | | **Total** | **$1,544,847** | [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is to interest rate changes on its variable-rate Bank Credit Facility, where a **100 basis point** change would impact net interest expense by approximately **$0.3 million** for Q1 2025, though most debt is fixed-rate - The company is exposed to interest rate risk on its Bank Credit Facility. A **100 basis point** increase or decrease in rates would have changed interest expense by **$0.3 million** in Q1 2025[155](index=155&type=chunk) - As of March 31, 2025, a significant portion of debt is fixed-rate, including **$238.5 million** of **4.75% Senior Notes**, **$500.0 million** of **8.25% Senior Notes**, and **$138.8 million** of **4.43% Kansas Notes**, which are not materially impacted by market interest rate fluctuations[156](index=156&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on senior management's evaluation, the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that disclosure controls and procedures are effective as of the end of the reporting period[158](index=158&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[158](index=158&type=chunk) Part II – Other Information [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including a class-action lawsuit, a lawsuit from the City of Leavenworth, and an appeal of a **$27.8 million** jury verdict in an inmate litigation case, which is believed to be substantially covered by insurance, while also cooperating with a DOJ investigation - This section incorporates by reference the information from Note 7 of the financial statements, which details ongoing litigation[161](index=161&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes in risk factors were reported for the quarter[162](index=162&type=chunk) [Issuer Purchases of Equity Securities](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased approximately **1.94 million shares** of its common stock for **$37.9 million**, with **$131.0 million** remaining under its **$350.0 million** share repurchase authorization Q1 2025 Share Repurchases | Period | Total Shares Purchased (Shares) | Average Price Paid per Share ($) | | :--- | :--- | :--- | | January 2025 | 515,206 | $21.35 | | February 2025 | 801,160 | $18.72 | | March 2025 | 619,916 | $19.17 | | **Total Q1 2025** | **1,936,282** | **$19.56** | - The company has a total share repurchase authorization of **$350.0 million**, with **$131.0 million** remaining as of March 31, 2025[163](index=163&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications as required by the Sarbanes-Oxley Act and Inline XBRL data files - Exhibits filed include a list of guarantor subsidiaries, CEO/CFO certifications (Sections 302 and 906), and XBRL data files[167](index=167&type=chunk)

Financial Data and Key Metrics Changes - CoreCivic reported first quarter revenue of $488.6 million, exceeding expectations, with EBITDA of $81 million, both metrics showing meaningful increases from the fourth quarter of 2024 [10][36] - Facility utilization improved to 77% from 75.2% in the prior year [10] - Net income was $0.23 per share and FFO per share was $0.45, both exceeding average analyst estimates by $0.10 per share [36] Business Line Data and Key Metrics Changes - Revenue from federal partners, primarily ICE and the U.S. Marshals Service, comprised 48% of total revenue, with ICE revenue declining 8% year-over-year, but increasing 11% when excluding the Dilley facility [24][36] - Revenue from state partners in the Safety and Community segments increased by 5.2% compared to the prior year, driven by higher per diem rates and occupancy [31][39] Market Data and Key Metrics Changes - ICE's national detention population increased from approximately 39,000 to nearly 48,000 during the quarter, with CoreCivic's share rising from about 10,000 to 12,000 detainees [26] - CoreCivic has nine idle facilities with over 13,400 available beds, indicating significant capacity to meet ICE's needs [45] Company Strategy and Development Direction - CoreCivic is focused on reactivating facilities and expanding capacity to meet increasing demand from ICE, with plans to invest an additional $25 million in capital expenditures for facility activations [15][39] - The company is exploring opportunities for expansion and evaluating potential acquisitions to enhance its service offerings [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational improvements and the ability to respond to increased demand from government partners, particularly in light of the new administration's immigration policies [34][35] - The company anticipates new contracts with ICE following budget reconciliation, which could significantly impact future revenue [18][44] Other Important Information - CoreCivic's capital allocation strategy has contributed to increases in per share earnings through reductions in interest expense and share repurchases [38][41] - The company plans to spend $60 million to $65 million on maintenance capital expenditures in 2025, unchanged from prior guidance [46] Q&A Session Summary Question: Are there more letter agreements with ICE? - Management confirmed that there are no additional letter agreements currently but noted the intensity of ICE's need for beds and the potential for more agreements in the future [53][54] Question: How many more facilities could the additional $25 million CapEx support? - Management indicated that they are leaning forward on almost all idle facilities and that the total CapEx could be higher depending on the facilities activated [59][60] Question: What is the appetite for managing soft-sided facilities? - Management expressed strong interest in managing soft-sided facilities and highlighted their capability to respond quickly to such needs [62][63] Question: What revenues might be generated from increased transportation work for ICE? - Management stated that it is difficult to quantify potential revenues until contracts are finalized but acknowledged the increased need for transportation services [73][77] Question: Any updates on the community side with BOP? - Management noted that the new BOP director is in the early stages of forming a leadership team, and further developments are expected soon [78]

Financial Data and Key Metrics Changes - CoreCivic reported first quarter revenue of $488.6 million, exceeding expectations, with EBITDA of $81 million, both metrics showing meaningful increases from the fourth quarter of 2024 [9][10] - Facility utilization improved to 77% from 75.2% in the prior year quarter [8] - Net income was $0.23 per share and FFO per share was $0.45, both exceeding average analyst estimates by $0.10 per share [35] Business Line Data and Key Metrics Changes - Revenue from federal partners, primarily ICE and the U.S. Marshals Service, comprised 48% of total revenue, with ICE revenue increasing by 11% when excluding the Dilley facility [23][24] - Revenue from state partners in the Safety and Community segments increased by 5.2% compared to the prior year quarter, driven by higher per diem rates and occupancy [30][38] - The Community segment's revenue was flat year-over-year, but net operating income increased by 6% [33] Market Data and Key Metrics Changes - ICE's national detention population increased from approximately 39,000 to nearly 48,000 individuals during the quarter, with CoreCivic's share rising from about 10,000 to 12,000 detainees [25] - CoreCivic has nine idle facilities with over 13,400 available beds, indicating significant capacity to meet ICE's needs [45] Company Strategy and Development Direction - CoreCivic is focused on reactivating facilities and expanding capacity to meet increasing demand from ICE and state partners, with a capital expenditure increase of $25 million for facility activations [13][59] - The company is exploring additional opportunities for expansion and evaluating potential acquisitions to enhance its service offerings [46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operational improvements and the ability to respond to increased demand from government partners [32] - The company anticipates new contracts with ICE following budget reconciliation, which could lead to further activations of idle facilities [44] Other Important Information - CoreCivic's capital allocation strategy has contributed to increases in per share earnings through reductions in interest expense and share repurchases [37][40] - The company plans to spend $60 million to $65 million on maintenance capital expenditures during 2025, unchanged from prior guidance [45] Q&A Session Summary Question: Are there more letter agreements with ICE? - Management confirmed that they are not hiding any agreements and noted the intensity of ICE's need for beds, suggesting more agreements could be forthcoming [54][55] Question: How many more facilities could the additional $25 million CapEx support? - Management indicated that they are leaning forward on almost all idle facilities and that the total CapEx could be higher depending on the facilities activated [58][59] Question: What is the appetite for managing soft-sided facilities? - Management expressed strong interest in managing soft-sided facilities and highlighted their capability to respond quickly to such needs [61][62] Question: What revenues might be generated from increased transportation work for ICE? - Management stated that it is difficult to quantify at this stage but indicated that transportation needs are being analyzed in connection with existing contracts [70][71] Question: Any updates on the community side with BOP? - Management noted that the new BOP director is in the early stages of forming a leadership team, and they expect a push for increased capacity in the private sector for community beds [75][76]

Core Insights - CoreCivic reported strong financial performance in Q1 2025, with increased occupancy and new contracts leading to an upward revision of its full-year guidance for 2025 [1][3][18] - The company achieved a first-quarter occupancy rate of 77.0%, up from 75.2% in the same period last year, driven by effective cost management and increased utilization from ICE [3][5] - CoreCivic has begun reactivating previously idle facilities, including the Dilley Immigration Processing Center, which is expected to care for up to 2,400 individuals [3][16] Financial Performance - Q1 2025 net income was $25.1 million, or $0.23 per diluted share, compared to $9.5 million, or $0.08 per diluted share in Q1 2024 [5][34] - Total revenue for Q1 2025 was $488.6 million, with FFO per diluted share at $0.45, up from $0.30 in Q1 2024 [6][10] - EBITDA for Q1 2025 was $81.0 million, an increase from $62.8 million in Q1 2024, while Adjusted EBITDA was $80.9 million [9][37] Capital Strategy - The company repurchased 1.9 million shares for $37.9 million during Q1 2025, part of a broader share repurchase program authorized for up to $350 million [12][13] - CoreCivic plans to invest $65 million to $70 million in capital expenditures for activating previously idle facilities and enhancing transportation services [22] Contract Updates - CoreCivic is actively engaging with federal and state partners for additional contracting opportunities, with recent modifications to existing contracts to increase capacity for ICE detainees [4][15] - The company has entered into letter agreements with ICE for the activation of the Midwest Regional Reception Center and California City Immigration Processing Center, with initial funding authorized for both [17] Revised Financial Guidance - The revised full-year 2025 guidance includes net income projected between $91.3 million and $101.3 million, and diluted EPS between $0.83 and $0.92, reflecting improved occupancy and contract reactivations [18][19] - The updated guidance does not account for any new contracts not yet announced, indicating potential for further growth [20]

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) CoreCivic's first quarter of 2025 demonstrated strong financial performance and strategic operational advancements [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) CoreCivic reported strong financial results for the first quarter of 2025, with total revenue of $488.6 million and net income of $25.1 million, alongside active share repurchases Q1 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Total Revenue | $488.6 million | | Net Income | $25.1 million | | Diluted EPS | $0.23 | | FFO per Diluted Share | $0.45 | | EBITDA | $81.0 million | | Shares Repurchased | 1.9 million | | Cost of Repurchases | $37.9 million | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted a strong start to 2025, driven by increased facility occupancy and strategic re-activation of idle facilities, leading to increased annual financial guidance and accelerated share repurchases - Facility occupancy increased to **77.0%** in Q1 2025 from **75.2%** in Q1 2024, primarily due to higher utilization by U.S. Immigration and Customs Enforcement (ICE)[3](index=3&type=chunk) - The company is re-activating three previously idle facilities under agreements with ICE: the Dilley Immigration Processing Center, the Midwest Regional Reception Center, and the California City Immigration Processing Center[3](index=3&type=chunk)[4](index=4&type=chunk) - CoreCivic is increasing its capital investment in idle facilities, having spent **$12 million** of an initial **$40-$45 million** authorization and approving an additional **$25 million** to prepare more locations for potential contracts[4](index=4&type=chunk) - The company's leverage, measured as net debt to trailing twelve-month Adjusted EBITDA, was **2.5x** at the end of the quarter[6](index=6&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) A detailed analysis of CoreCivic's Q1 2025 financial results compared to Q1 2024, highlighting key drivers of revenue, EBITDA, and FFO changes [Q1 2025 vs. Q1 2024 Results](index=2&type=section&id=Q1%202025%20vs.%20Q1%202024%20Results) GAAP Net Income significantly increased in Q1 2025 due to the absence of prior-year debt refinancing expenses, despite a slight decrease in Adjusted Diluted EPS influenced by contract expirations Q1 Financial Comparison (2025 vs. 2024) ($M) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $25.1 | $9.5 | | Diluted EPS | $0.23 | $0.08 | | Adjusted Net Income | $25.1 | $27.9 | | Adjusted Diluted EPS | $0.23 | $0.25 | - The expiration of the CDCR lease at California City and the ICE contract at Dilley collectively accounted for a **$0.16 per share** reduction compared to Q1 2024[7](index=7&type=chunk) [Revenue and EBITDA Analysis](index=2&type=section&id=Revenue%20and%20EBITDA%20Analysis) Revenue from ICE decreased due to contract termination, while state customer revenue grew, leading to a decrease in Adjusted EBITDA primarily from contract expirations - Revenue from ICE decreased by **$20.6 million** YoY, reflecting the termination of the Dilley facility contract, which accounted for a **$33.6 million** revenue reduction[8](index=8&type=chunk) - Revenue from state customers increased by **5.2%** compared to the prior year's quarter[8](index=8&type=chunk) EBITDA Comparison (Q1 2025 vs. Q1 2024) ($M) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | EBITDA | $81.0 | $62.8 | | Adjusted EBITDA | $81.0 | $89.5 | [Funds From Operations (FFO) Analysis](index=3&type=section&id=Funds%20From%20Operations%20(FFO)%20Analysis) Q1 2025 FFO was $49.7 million, or $0.45 per share, with Normalized FFO slightly decreasing year-over-year due to factors affecting Adjusted EBITDA, offset by lower interest expense and share count FFO Comparison (Q1 2025 vs. Q1 2024) ($M) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | FFO | $49.7 | $33.9 | | Normalized FFO | $49.7 | $52.6 | | FFO per Share | $0.45 | $0.30 | | Normalized FFO per Share | $0.45 | $0.46 | [Corporate Strategy and Updates](index=3&type=section&id=Corporate%20Strategy%20and%20Updates) CoreCivic's corporate strategy focuses on capital allocation through share repurchases and securing new contracts with key partners like ICE [Capital Strategy](index=3&type=section&id=Capital%20Strategy) The company continued its share repurchase program, buying back 1.9 million shares for $37.9 million in Q1 2025, with $131.0 million remaining available under the current authorization - In Q1 2025, the company repurchased **1.9 million** shares of common stock at an aggregate cost of **$37.9 million**[12](index=12&type=chunk) - Since May 2022, a total of **16.5 million** shares have been repurchased for **$219.0 million**, with **$131.0 million** of authorization remaining as of March 31, 2025[12](index=12&type=chunk)[13](index=13&type=chunk) [Contract Updates](index=3&type=section&id=Contract%20Updates) CoreCivic secured several key agreements with ICE, including modifying existing contracts, resuming operations at the Dilley facility, and initiating activation of the Midwest and California City facilities - Amended an IGSA to resume operations at the **2,400-bed** Dilley Immigration Processing Center; the new agreement expires in March 2030[15](index=15&type=chunk) - Entered into a letter agreement with ICE for initial funding up to **$22.6 million** to activate the **1,033-bed** Midwest Regional Reception Center[16](index=16&type=chunk) - Entered into a letter agreement with ICE for initial funding up to **$31.2 million** to activate the **2,560-bed** California City Immigration Processing Center[16](index=16&type=chunk) [2025 Financial Guidance](index=4&type=section&id=2025%20Financial%20Guidance) CoreCivic significantly raised its full-year 2025 financial guidance, reflecting strong Q1 results and the Dilley facility reactivation, while outlining capital expenditure plans for facility activations Updated Full Year 2025 Guidance ($M) | Metric | Revised Guidance | Prior Guidance | | :--- | :--- | :--- | | Net income | $91.3 - $101.3 | $53.5 - $67.5 | | Diluted EPS | $0.83 - $0.92 | $0.48 - $0.61 | | FFO per diluted share | $1.72 - $1.82 | $1.37 - $1.50 | | EBITDA | $331.0 - $339.0 | $281.0 - $293.0 | - The revised guidance does not include the impact of potential new long-term contracts at the Midwest Regional Reception Center and California City Immigration Processing Center[18](index=18&type=chunk) - The company expects to invest approximately **$65.0 million** to **$70.0 million** in capital expenditures for activating previously idled facilities and preparing for potential new opportunities[20](index=20&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) A summary of CoreCivic's consolidated balance sheets and statements of operations, providing a snapshot of the company's financial position and performance [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, CoreCivic reported increased total assets and liabilities, with a slight decrease in total stockholders' equity compared to year-end 2024 Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $413,452 | $449,818 | | **Total assets** | **$3,002,446** | **$2,931,891** | | Total current liabilities | $266,633 | $285,797 | | Long-term debt, net | $969,885 | $973,073 | | **Total liabilities** | **$1,527,200** | **$1,438,540** | | **Total stockholders' equity** | **$1,475,246** | **$1,493,351** | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, total revenue slightly decreased, but net income significantly rose due to lower operating and interest expenses and the absence of prior-year debt repayment costs Statement of Operations Summary (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenue** | **$488,627** | **$500,686** | | Total operating expenses | $374,737 | $378,103 | | Income before income taxes | $32,090 | $9,043 | | **Net Income** | **$25,113** | **$9,543** | | **Diluted EPS** | **$0.23** | **$0.08** | [Supplemental Financial Information (Non-GAAP)](index=9&type=section&id=Supplemental%20Financial%20Information%20(Non-GAAP)) This section provides reconciliations of GAAP Net Income to key non-GAAP financial measures, including Adjusted Net Income, FFO, and EBITDA, along with guidance reconciliations [Reconciliation of Adjusted Net Income and Adjusted Diluted EPS](index=9&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS) This section reconciles GAAP Net Income to Adjusted Net Income, showing that for Q1 2025, they were equal, while Q1 2024 included adjustments for debt repayment expenses Adjusted Net Income Reconciliation (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $25,113 | $9,543 | | Special items adjustments | $0 | $26,674 | | Income tax benefit for special items | $0 | ($8,358) | | **Adjusted net income** | **$25,113** | **$27,859** | [Reconciliation of Funds From Operations (FFO)](index=10&type=section&id=Reconciliation%20of%20Funds%20From%20Operations%20(FFO)) This table reconciles Net Income to FFO and Normalized FFO, indicating that for Q1 2025, both FFO and Normalized FFO were $49.7 million, while Q1 2024's FFO adjusted to $52.6 million Normalized FFO FFO Reconciliation (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $25,113 | $9,543 | | Depreciation and amortization of real estate | $24,598 | $24,784 | | **Funds From Operations (FFO)** | **$49,711** | **$33,937** | | Special items adjustments | $0 | $18,706 | | **Normalized FFO** | **$49,711** | **$52,643** | [Reconciliation of EBITDA and Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA) This table reconciles Net Income to EBITDA and Adjusted EBITDA, showing that for Q1 2025, both were $81.0 million, while Q1 2024's EBITDA adjusted to $89.5 million Adjusted EBITDA EBITDA Reconciliation (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $25,113 | $9,543 | | Interest expense | $18,381 | $22,058 | | Depreciation and amortization | $30,518 | $31,730 | | Income tax expense (benefit) | $6,977 | ($500) | | **EBITDA** | **$80,989** | **$62,831** | | Special items adjustments | $0 | $26,674 | | **Adjusted EBITDA** | **$80,989** | **$89,505** | [Guidance Reconciliation](index=11&type=section&id=Guidance%20Reconciliation) This section provides the calculations to reconcile the company's full-year 2025 guidance for Net Income to the non-GAAP metrics of FFO and EBITDA Full Year 2025 Guidance Reconciliation (in thousands) | Metric | Low End | High End | | :--- | :--- | :--- | | **Net income** | **$91,250** | **$101,250** | | Depreciation and amortization of real estate | $98,250 | $99,250 | | **Funds From Operations** | **$189,500** | **$200,500** | | **Net income** | **$91,250** | **$101,250** | | Interest expense | $73,750 | $72,750 | | Depreciation and amortization | $128,750 | $128,750 | | Income tax expense | $37,250 | $36,250 | | **EBITDA** | **$331,000** | **$339,000** |

Core Points - U.S. Immigration and Customs Enforcement (ICE) has begun housing detainees at Delaney Hall in Newark, NJ, starting May 1, 2025, amidst significant controversy and protests from immigrant rights advocates and local officials [3][4][6] - The facility, which has a capacity of 1,000 beds, is the first federal detention center to open under President Donald Trump's second term, aimed at expanding ICE's detention capacity in the Northeast and facilitating deportations [6][8] - The GEO Group, which operates Delaney Hall, has been awarded a 15-year contract valued at approximately $1 billion, expected to generate over $60 million in annual revenues in its first full year of operations [7][12] Legal and Regulatory Context - A 2021 New Jersey state law prohibits all prisons, public or private, from entering new contracts with ICE for holding federal detainees, as well as from expanding or renewing existing agreements [9][10] - The GEO Group and CoreCivic are challenging this state ban in court, with the Biden administration supporting the private prison companies, arguing for the necessity of detention centers near airports for operational efficiency [10][11] - Newark Mayor Ras Baraka has accused ICE of opening Delaney Hall without proper permits and inspections, claiming violations of city and state laws [15]

Core Insights - Three stocks in the industrials sector are showing signs of being overbought, which may concern momentum-focused investors [1][2] - The Relative Strength Index (RSI) is a key momentum indicator, with values above 70 indicating overbought conditions [2] Company Summaries - **CoreCivic Inc (CXW)**: - Scheduled to release Q1 financial results on May 7 - Stock increased by approximately 16% in the past five days, reaching a 52-week high of $24.99 - Current RSI value is 71.1, with a price action gain of 2.7% to close at $22.10 [5] - Momentum score is 95.23, with a value score of 65.79 [5] - **Eos Energy Enterprises Inc (EOSE)**: - Announced a 5 GWh Memorandum of Understanding with Frontier Power for energy storage in the UK - Stock surged around 56% in the past five days, with a 52-week high of $6.64 - Current RSI value is 71.5, with a price action gain of 19.7% to close at $5.05 [5] - **eLong Power Holding Ltd (ELPW)**: - Received staff determination notices from Nasdaq on March 25 - Stock skyrocketed approximately 213% over the past month, reaching a 52-week high of $12.60 - Current RSI value is 87.1, with a price action gain of 43.2% to close at $2.19 [5]