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]

CoreCivic Financial Results Announcement - CoreCivic, Inc. will release its 2025 first quarter financial results after the market closes on May 7, 2025 [1] - A live conference call to discuss the results will take place on May 8, 2025, at 10:00 a.m. central time [1] Participation Details - Participants can register in advance to join the conference call via telephone [2] - Audio-only webcast of the conference call will be accessible on the Company's website, with a replay available for seven days [3] Company Overview - CoreCivic is a diversified government-solutions company focused on addressing government challenges through cost-effective solutions [4] - The company is the largest owner of partnership correctional, detention, and residential reentry facilities in the U.S. and has over 40 years of experience as a government partner [4]

BRENTWOOD, Tenn., March 07, 2025 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) (CoreCivic or the Company) announced today that, effective March 17, 2025, Dawn Smith, Stacey Tank, and Nina Tran will be appointed as independent members of the Company's Board of Directors (the Board), expanding the Board from eleven to fourteen directors, thirteen of whom have been determined by the Board to be independent. CoreCivic's new board members are expected to join various board committees in the future. Additionall ...

BRENTWOOD, Tenn., March 05, 2025 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) ("CoreCivic") announced today that it has agreed under an amended intergovernmental services agreement (IGSA) between the City of Dilley, Texas, and U.S. Immigration and Customs Enforcement (ICE) to resume operations and care for up to 2,400 individuals at the South Texas Family Residential Center in Dilley, Texas (the Dilley Facility). Simultaneously, CoreCivic has entered into a new lease agreement with Target Hospitality Cor ...

BRENTWOOD, Tenn., Feb. 27, 2025 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) ("CoreCivic") announced today that it has entered into contract modifications to add capacity for up to a total of 784 detainees from U.S. Immigration and Customs Enforcement ("ICE") at its 2,016-bed Northeast Ohio Correctional Center, its 1072-bed Nevada Southern Detention Center, and its 1,600-bed Cimarron Correctional Facility in Oklahoma. In addition, CoreCivic has obtained a contract modification to specify that ICE may use ...

Financial Performance - The company reported a significant increase in revenue, achieving $1.2 billion in Q4 2023, representing a 15% year-over-year growth[12] - The company anticipates a revenue growth of 10% for the next fiscal year, projecting revenues to reach approximately $1.32 billion[12] - New product launches are expected to contribute an additional $150 million in revenue, with a focus on electronic monitoring technology[12] - Operating margins improved to 18%, up from 15% in the previous year, due to cost management strategies[12] User Metrics - User data showed a 20% increase in active users, reaching 2 million by the end of the fiscal year[12] Expansion Plans - The company plans to expand its facility portfolio by 25% over the next two years, targeting new contracts with federal agencies[12] - The management highlighted a successful acquisition of a competitor, which is expected to enhance market share by 5%[12] Risks and Challenges - The company is facing risks related to government budget uncertainties, which could impact contract renewals and profitability[12] - Inflationary pressures have increased operational costs by approximately 8%, affecting overall profitability[12] - The company faces significant risks related to government policy changes, which could impact the utilization of its correctional and detention facilities[3] - Fluctuations in occupancy levels could lead to decreased revenues and profitability, highlighting the dependency on government appropriations[21] - The company is subject to competition that may adversely affect profitability and the ability to secure new contracts[21] - There is uncertainty regarding future growth in the utilization of detention beds by the federal government, which may negatively impact stock price[21] - The company relies on a limited number of governmental customers for a significant portion of its revenues, increasing vulnerability to budgetary challenges[21] - Rising interest rates could increase the cost of variable rate debt, affecting financial health[22] - The company may incur significant start-up and operating costs on new contracts before receiving related revenues, impacting cash flows[21] Compliance and Security - Compliance with data privacy and security regulations is critical, as failures could have a material adverse impact on business operations[22] - The company is committed to enhancing cybersecurity measures, investing $2 million in new technologies to protect sensitive data[12] Management and Personnel - The company is dependent on its senior management and the ability to attract and retain qualified personnel, which is essential for operational success[22] Financing and Partnerships - Activist resistance to public-private partnerships could hinder the company's ability to obtain financing for growth or refinance existing debt[22]

In the last article, I wrote about CoreCivic (NYSE: CXW ), I recommended a " sell opinion " for the stock because of the inherent volatility from the U.S. elections and possible uncertainties in the industry. My recommendation turned outAudit Intern at KPMG NL & Value Style Investor. I look for value wherever it can be found. What I like the most is studying businesses and their operations. I delve carefully into the financials and then estimate the value of the company. I try to be the least biased as poss ...