Many companies that exist today aren't really influenced by who is in office all that much. But in some industries, that can make all the difference. A good example would be the private prison industry. For several years now, the Democratic Party has hadCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model ac ...

The stock price of CoreCivic (NYSE: CXW ), one of the largest private correction facilities in the US, is lagging behind its competitor GEO Group ( GEO ). GEO Group was one of my buy stocks inI'm a passionate investor from the Netherlands with 12 years of stock market experience. My articles usually contain a good overview of important investment criteria. A stock for my portfolio is of interest to me if the company has the following characteristics:1. Companies that are growing in both revenue, earnings an ...

BRENTWOOD, Tenn., Jan. 16, 2025 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) ("CoreCivic") announced today it has been awarded a new management contract with the state of Montana to care for additional inmates outside the state of Montana, with 240 inmates anticipated to arrive at our 2,672-bed Tallahatchie County Correctional Facility in Tutwiler, Mississippi during the first quarter of 2025. During January 2025, CoreCivic also received an additional 120 Montana inmates at the Company's 1,896-bed Saguar ...

BRENTWOOD, Tenn., Jan. 13, 2025 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) (the Company) announced today that it will release its 2024 fourth quarter financial results after the market closes on Monday, February 10, 2025. A live broadcast of CoreCivic's conference call will begin at 10:00 a.m. central time (11:00 a.m. eastern time) on Tuesday, February 11, 2025. To participate via telephone and join the call live, please register in advance here https://register.vevent.com/register/BIaa5339be2aca4992a0 ...

Inflation and Labor Market Impact - The US experienced a cooling of inflation in 2024, but economists warn that President-elect Donald Trump's mass deportation plan for undocumented immigrants could significantly affect prices [1] - Deporting a large number of undocumented immigrants could create labor force shortages, with a 2023 study in the Journal of Labor Economics indicating that 44,000 US-born workers could lose their jobs for every 500,000 immigrants removed from the labor force [1] Industry-Specific Effects - Immigrants, particularly unauthorized immigrants, are more likely to work in jobs that produce goods and services experiencing price increases, such as construction and agriculture [2] - Past mass deportation efforts suggest that prices in industries with high concentrations of unauthorized immigrants, like construction and agriculture, are likely to rise rather than fall [3]

Subscribers to Chart of the Week received this commentary on Sunday, October 27.Indulge, for a second, one last 2024 election postmortem. The American people have chosen former President Donald Trump to take the reins of the U.S. government once more. We’ve telegraphed ‘qui bono?’ from another Trump administration and reading recent options-centric tea leaves confirms a lot of our initial biases.ETF Winners, Losers Last WeekTrump’s win sent the cryptocurrency, banking, and energy sectors soaring. On Wednesd ...

A guard escorts an immigrant detainee from his 'segregation cell' back into the general population at the Adelanto Detention Facility, managed by GEO Group.The Geo Group and CoreCivic jumped more than 4% and nearly 8%, respectively, in premarket trading. Homan served as the head of Immigration and Customs Enforcement during Trump's first term.Trump said Sunday on Truth Social that Homan "will be in charge of all Deportation of Illegal Aliens back to their Country of Origin." Homan will be responsible for th ...

Financial Data and Key Metrics Changes - In Q3 2024, CoreCivic generated revenue of $491.6 million, a 2% increase compared to the prior year quarter. Excluding the South Texas family residential center, underlying revenue growth would have been over 5% [10] - Normalized funds from operations (FFO) were $47.6 million, or $0.43 per share, compared to $40.5 million, or $0.35 per share in Q3 2023, representing a 23% per share increase [11] - GAAP net income was $0.19 per share compared to $0.12 per share in the prior year quarter, and adjusted EPS was $0.20 compared to $0.14 per share in the prior year quarter [51] Business Line Data and Key Metrics Changes - Revenue from federal partners was flat year-over-year, with ICE revenue declining 3.4%. However, excluding the South Texas facility, ICE revenue increased by 10.9% [13][14] - State revenue in the Safety and Community segments grew 3% year-over-year, driven by higher per diem rates and new state contracts [17] - Local revenue in the Safety and Community segments increased by 39%, reflecting new management contracts with Hinds County and Harris County [21] Market Data and Key Metrics Changes - CoreCivic's overall occupancy in the Safety and Community segments increased to 75.2% from 72% in the prior year period, with significant improvements in both Safety and Community segments [22][23] - ICE's detention population count remained relatively flat during Q3, with a slight increase in October [16] Company Strategy and Development Direction - CoreCivic aims to address the growing needs of federal, state, and local government partners, particularly in light of increasing prison populations and staffing challenges [35][36] - The company is preparing to activate idle facilities to meet potential demand from ICE and other partners, with proactive steps taken to ensure readiness [37][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term macro environment for their services, despite uncertainties during an election year [35] - The company anticipates increased demand for detention capacity, particularly with the new Republican leadership in Congress [94] Other Important Information - CoreCivic ended the quarter with leverage at 2.2x trailing 12-month adjusted EBITDA, slightly below their long-term target [33] - The company updated its 2024 financial guidance, expecting adjusted EPS of $0.69 to $0.75, up from previous guidance [69] Q&A Session Summary Question: Margin profile changes with increased occupancy - Management indicated that if occupancy increases to the low-80s, margins could reach around 25%, but this may be adjusted downwards due to the termination of the South Texas contract [122] Question: Impact of USMS contracting on private providers - Management confirmed that having multiple contracting tools would likely ease bottlenecks and make it easier for USMS to utilize private providers [124] Question: Timeline for RFIs and RFPs - Management noted that there may be more RFIs and potential expansions in scope, indicating a busy period for procurement activity [130]

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [ITEM 1. – FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20%E2%80%93%20FINANCIAL%20STATEMENTS.) Presents CoreCivic's unaudited consolidated financial statements and detailed notes for periods ended Sep 30, 2024, and Dec 31, 2023 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) | ASSETS / LIABILITIES AND STOCKHOLDERS' EQUITY | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) | | :-------------------------------------------- | :-------------------------------- | :------------------------------- | | Total current assets | $416,120 | $474,914 | | Total assets | $2,913,942 | $3,105,399 | | Total current liabilities | $274,702 | $297,454 | | Total liabilities | $1,437,722 | $1,627,833 | - Total assets decreased from **$3,105,399 thousand** at December 31, 2023, to **$2,913,942 thousand** at September 30, 2024. Total liabilities also decreased from **$1,627,833 thousand** to **$1,437,722 thousand** over the same period[5](index=5&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) | Metric (in thousands, except per share) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :-------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | REVENUE | $491,558 | $483,705 | $1,482,353 | $1,405,389 | | NET INCOME | $21,096 | $13,892 | $49,593 | $41,122 | | BASIC EARNINGS PER SHARE | $0.19 | $0.12 | $0.45 | $0.36 | | DILUTED EARNINGS PER SHARE | $0.19 | $0.12 | $0.44 | $0.36 | - Net income for the three months ended September 30, 2024, increased by **51.8%** to **$21,096 thousand** from **$13,892 thousand** in the prior year period. For the nine months, net income increased by **20.6%** to **$49,593 thousand** from **$41,122 thousand**[6](index=6&type=chunk) [Consolidated Statements of Cash Flows](index=4&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity (in thousands) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $229,880 | $209,577 | | Net cash used in investing activities | $(34,797) | $(39,214) | | Net cash used in financing activities | $(206,475) | $(214,617) | | Net decrease in cash, cash equivalents and restricted cash | $(11,392) | $(44,254) | - Net cash provided by operating activities increased by **$20.3 million (9.7%)** for the nine months ended September 30, 2024, compared to the same period in 2023[7](index=7&type=chunk) [Consolidated Statement of Stockholders' Equity (2024)](index=7&type=section&id=Consolidated%20Statement%20of%20Stockholders%27%20Equity%20(2024)) | Metric (in thousands) | Balance as of Dec 31, 2023 | Balance as of Sep 30, 2024 | | :-------------------- | :------------------------- | :------------------------- | | Common Shares | 112,733 | 110,271 | | Total Stockholders' Equity | $1,477,566 | $1,476,220 | - Total stockholders' equity remained relatively stable, decreasing slightly from **$1,477,566 thousand** at December 31, 2023, to **$1,476,220 thousand** at September 30, 2024, despite common stock retirements[9](index=9&type=chunk) [Consolidated Statement of Stockholders' Equity (2023)](index=8&type=section&id=Consolidated%20Statement%20of%20Stockholders%27%20Equity%20(2023)) | Metric (in thousands) | Balance as of Dec 31, 2022 | Balance as of Sep 30, 2023 | | :-------------------- | :------------------------- | :------------------------- | | Common Shares | 114,988 | 113,605 | | Total Stockholders' Equity | $1,432,408 | $1,458,302 | - Total stockholders' equity increased from **$1,432,408 thousand** at December 31, 2022, to **$1,458,302 thousand** at September 30, 2023, driven by net income and restricted stock compensation, partially offset by common stock retirements[11](index=11&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [1. Organization and Operations](index=9&type=section&id=1.%20ORGANIZATION%20AND%20OPERATIONS) - CoreCivic operates through three segments: CoreCivic Safety (**42** correctional/detention facilities, **~62,000** beds), CoreCivic Community (**21** residential reentry centers, **~4,000** beds), and CoreCivic Properties (**6** leased properties, **~10,000** beds)[13](index=13&type=chunk) - The company provides correctional, detention, and reentry services, including rehabilitation, educational programs, health care, food services, and work/recreational programs aimed at reducing recidivism[14](index=14&type=chunk) [2. Basis of Presentation and Summary of Significant Accounting Policies](index=9&type=section&id=2.%20BASIS%20OF%20PRESENTATION%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - The Private Prison Executive Order (EO) issued by President Biden in January 2021 directs the Attorney General not to renew DOJ contracts with privately operated criminal detention facilities. The USMS, a DOJ agency, accounted for **21%** of CoreCivic's total revenue for the nine months ended September 30, 2024, and the twelve months ended December 31, 2023[16](index=16&type=chunk) - One direct USMS contract was renewed until September 2028 due to lack of alternative bed capacity, while another expires in October 2025, with its outcome uncertain[17](index=17&type=chunk) - CoreCivic is evaluating the impact of new FASB ASUs (2023-07 on segment disclosures, 2023-09 on income tax disclosures) and SEC Climate Disclosure Rules, with expected adoption in 2024/2025[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) [3. Real Estate and Other Transactions](index=11&type=section&id=3.%20REAL%20ESTATE%20AND%20OTHER%20TRANSACTIONS) - CoreCivic completed the sale of an idled 390-bed facility in Oklahoma for **$3.4 million** (gain of **$1.2 million**) and a facility in Colorado for **$8.0 million** (gain of **$0.5 million**) in 2024, along with an unused land parcel for **$0.2 million** (gain of **$0.1 million**)[25](index=25&type=chunk) - As of September 30, 2024, CoreCivic had nine idle correctional facilities with a total design capacity of **13,419 beds** and a net carrying value of **$317.6 million**, incurring **$4.0 million** in operating expenses during Q3 2024 while idle[27](index=27&type=chunk)[28](index=28&type=chunk) - ICE terminated the inter-governmental service agreement (IGSA) for the 2,400-bed South Texas Family Residential Center (STFRC) effective August 9, 2024, leading to a **$57.0 million** lease liability remeasurement and a **$3.1 million** asset impairment charge[31](index=31&type=chunk)[33](index=33&type=chunk) [4. Debt](index=13&type=section&id=4.%20DEBT) | Debt Instrument (in thousands) | September 30, 2024 | December 31, 2023 | | :----------------------------- | :----------------- | :---------------- | | Term Loan | $120,312 | $125,000 | | 4.75% Senior Notes | $243,068 | $243,068 | | 8.25% Senior Notes (Old) | — | $593,113 | | 8.25% Senior Notes (New) | $500,000 | — | | Lansing Mortgage Note | $141,536 | $145,510 | | Total debt | $1,004,916 | $1,106,691 | - CoreCivic refinanced its debt by tendering and redeeming **$593.1 million** of Old 8.25% Senior Notes and issuing **$500.0 million** of New 8.25% Senior Notes due 2029, incurring **$31.3 million** in associated charges[41](index=41&type=chunk)[43](index=43&type=chunk) - The Bank Credit Facility was amended in October 2023, increasing the Revolving Credit Facility to **$275.0 million** and the Term Loan to **$125.0 million**, with interest rate spreads declining based on the company's leverage ratio[36](index=36&type=chunk)[38](index=38&type=chunk) [5. Stockholders' Equity](index=16&type=section&id=5.%20STOCKHOLDERS%27%20EQUITY) - The Board of Directors increased the share repurchase program authorization by an additional **$125.0 million** in May 2024, bringing the total authorized amount to **$350.0 million**[49](index=49&type=chunk) | Share Repurchase Program | Through Dec 31, 2023 | Nine Months Ended Sep 30, 2024 | As of Sep 30, 2024 | | :----------------------- | :------------------- | :----------------------------- | :----------------- | | Shares Repurchased | 10.1 million | 4.0 million | 14.1 million | | Total Cost | $112.6 million | $59.5 million | $172.1 million | | Average Price Per Share | $11.16 | $14.80 | $12.20 | | Authorization Available | - | - | $177.9 million | - During the nine months ended September 30, 2024, CoreCivic issued approximately **1.6 million** restricted common stock units (RSUs) with an aggregate value of **$23.5 million** and expensed **$18.7 million** (net of forfeitures) related to RSUs[50](index=50&type=chunk)[54](index=54&type=chunk) [6. Earnings Per Share](index=17&type=section&id=6.%20EARNINGS%20PER%20SHARE) | EPS Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Basic EPS | $0.19 | $0.12 | $0.45 | $0.36 | | Diluted EPS| $0.19 | $0.12 | $0.44 | $0.36 | | Weighted Average Common Shares Outstanding (Basic) | 110,271 | 113,605 | 111,174 | 113,919 | | Weighted Average Shares and Assumed Conversions (Diluted) | 110,971 | 114,407 | 111,994 | 114,605 | [7. Commitments and Contingencies](index=18&type=section&id=7.%20COMMITMENTS%20AND%20CONTINGENCIES) - CoreCivic faces various legal claims, including those related to employee/offender misconduct, medical malpractice, and contractual compliance, maintaining insurance to mitigate risk[58](index=58&type=chunk) - A class action lawsuit regarding ICE detainee labor at the Otay Mesa Detention Center is ongoing, with the company unable to reasonably predict the outcome or estimate potential loss at this stage[61](index=61&type=chunk)[62](index=62&type=chunk) - The U.S. Department of Justice commenced an investigation into conditions at the Trousdale Turner Correctional Center in August 2024, with CoreCivic cooperating[63](index=63&type=chunk) [8. Income Taxes](index=19&type=section&id=8.%20INCOME%20TAXES) | Income Tax Expense (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :-------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Income tax expense | $(9,084) | $(5,635) | $(17,209) | $(17,957) | - The company recognized an excise tax of **$0.4 million** and **$0.1 million** during the nine months ended September 30, 2024 and 2023, respectively, associated with net stock repurchases under the Inflation Reduction Act[65](index=65&type=chunk) - CoreCivic had no liabilities recorded for uncertain tax positions as of September 30, 2024, and December 31, 2023[68](index=68&type=chunk) [9. Segment Reporting](index=20&type=section&id=9.%20SEGMENT%20REPORTING) | Segment Performance (in thousands) | Q3 2024 Revenue | Q3 2023 Revenue | YTD 2024 Revenue | YTD 2023 Revenue | | :--------------------------------- | :-------------- | :-------------- | :--------------- | :--------------- | | Safety | $459,270 | $443,324 | $1,372,389 | $1,282,717 | | Community | $28,203 | $29,791 | $88,405 | $84,569 | | Properties | $4,085 | $10,477 | $21,540 | $37,888 | | Total Segment Revenue | $491,558 | $483,592 | $1,482,334 | $1,405,174 | | Segment Net Operating Income (in thousands) | Q3 2024 NOI | Q3 2023 NOI | YTD 2024 NOI | YTD 2023 NOI | | :------------------------------------------ | :---------- | :---------- | :----------- | :----------- | | Safety | $115,847 | $92,378 | $330,747 | $267,647 | | Community | $3,590 | $6,523 | $15,514 | $15,681 | | Properties | $1,322 | $7,410 | $11,480 | $28,136 | | Total Facility Net Operating Income | $120,759 | $106,311 | $357,741 | $311,464 | | Segment Capital Expenditures (in thousands) | YTD 2024 | YTD 2023 | | :------------------------------------------ | :------- | :------- | | Safety | $35,099 | $30,227 | | Community | $3,286 | $1,097 | | Properties | $2,063 | $1,122 | | Corporate and other | $6,714 | $7,797 | | Total Capital Expenditures | $47,162 | $40,243 | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=23&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DCISUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS.) Management discusses CoreCivic's financial condition and operational results, covering segment analysis, liquidity, and non-GAAP measures [Overview](index=24&type=section&id=OVERVIEW) - CoreCivic is a diversified government solutions company operating through CoreCivic Safety, Community, and Properties segments, managing correctional, detention, and residential reentry facilities[77](index=77&type=chunk) - For the nine months ended September 30, 2024, USMS and ICE accounted for **21% ($303.9 million)** and **30% ($444.5 million)** of total revenue, respectively[82](index=82&type=chunk) - The expiration of Title 42 on May 11, 2023, led to an increase in ICE detainees, but revenue from ICE was negatively impacted in Q3 and YTD 2024 by the termination of the STFRC contract[85](index=85&type=chunk) - CoreCivic secured new management contracts in late 2023 and 2024 with Hinds County, Mississippi, the state of Wyoming, Harris County, Texas, and the state of Montana, utilizing facilities like Tallahatchie and Saguaro[86](index=86&type=chunk) [Critical Accounting Policies and Estimates](index=26&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) - No newly identified critical accounting policies or material changes to existing policies were reported during the first nine months of 2024[88](index=88&type=chunk) - Key critical accounting policies include those related to idle facilities and asset impairments, self-funded insurance reserves, and legal reserves[88](index=88&type=chunk) [Results of Operations](index=26&type=section&id=RESULTS%20OF%20OPERATIONS) [Overall Financial Performance](index=26&type=section&id=Overall%20Financial%20Performance) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :----- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income | $21.1 million | $13.9 million | $49.6 million | $41.1 million | | Diluted EPS| $0.19 | $0.12 | $0.44 | $0.36 | - Financial results for Q3 and YTD 2024 include gains on real estate sales (**$1.2 million** and **$1.7 million**, respectively) and asset impairments (**$3.1 million**). YTD 2024 also reflects **$31.3 million** in debt repayment/refinancing expenses[91](index=91&type=chunk) [Current Operations by Segment](index=27&type=section&id=Current%20Operations%20by%20Segment) | Segment Net Operating Income Distribution | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :---------------------------------------- | :------ | :------ | :------- | :------- | | Safety | 94.3% | 85.2% | 90.9% | 84.2% | | Community | 2.9% | 6.0% | 4.2% | 4.9% | | Properties | 2.8% | 8.8% | 4.9% | 10.9% | - CoreCivic Safety significantly increased its contribution to total segment net operating income, rising from **85.2%** in Q3 2023 to **94.3%** in Q3 2024[94](index=94&type=chunk) [Facility Operations Metrics](index=27&type=section&id=Facility%20Operations%20Metrics) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :----- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Revenue per compensated man-day | $102.56 | $98.66 | $101.69 | $97.52 | | Operating expenses per compensated man-day | $77.02 | $77.67 | $77.16 | $77.01 | | Operating income per compensated man-day | $25.54 | $20.99 | $24.53 | $20.51 | | Operating margin | 24.9% | 21.3% | 24.1% | 21.0% | | Average compensated occupancy | 75.2% | 72.0% | 74.9% | 70.8% | - Operating margin improved from **21.3%** to **24.9%** in Q3 YoY and from **21.0%** to **24.1%** YTD YoY, driven by increased revenue per compensated man-day and stable operating expenses[96](index=96&type=chunk) [Revenue Analysis](index=28&type=section&id=Revenue%20Analysis) | Revenue Source (in millions) | Q3 2024 | Q3 2023 | % Change Q3 | YTD 2024 | YTD 2023 | % Change YTD | | :--------------------------- | :------ | :------ | :---------- | :------- | :------- | :----------- | | Total management revenue | $487.5 | $473.1 | 3.0% | $1,460.8 | $1,367.3 | 6.8% | | Lease revenue | $4.1 | $10.5 | (61.0%) | $21.5 | $37.9 | (43.3%) | | Total revenue | $491.6 | $483.7 | 1.6% | $1,482.4 | $1,405.4 | 5.5% | - Total management revenue increased due to a **4.0% (Q3)** and **4.3% (YTD)** increase in average revenue per compensated man-day, primarily from per diem increases[102](index=102&type=chunk) - Lease revenue decreased significantly due to the termination of the California City Correctional Center lease (March 2024) and North Fork Correctional Facility lease (June 2023), partially offset by the new Allen Gamble Correctional Center lease (October 2023)[110](index=110&type=chunk) [Operating Expenses Analysis](index=30&type=section&id=Operating%20Expenses%20Analysis) | Operating Expenses (in millions) | Q3 2024 | Q3 2023 | % Change Q3 | YTD 2024 | YTD 2023 | % Change YTD | | :------------------------------- | :------ | :------ | :---------- | :------- | :------- | :----------- | | Total Operating Expenses | $370.8 | $377.3 | (1.7%) | $1,124.7 | $1,093.9 | 2.8% | - Q3 2024 operating expenses decreased primarily due to the new lease of Allen Gamble Correctional Center and the termination of the STFRC IGSA, allowing for reduced operating expenses[112](index=112&type=chunk) - YTD 2024 operating expenses increased due to wage increases from labor shortages and pressures, partially offset by a **$9.2 million** reduction in temporary incentives[114](index=114&type=chunk) - Variable expenses per compensated man-day decreased by **8.8%** in Q3 and **6.7%** YTD, mainly due to reductions in registry nursing, recruiting, and travel expenses[117](index=117&type=chunk) [Facility Management Contracts](index=32&type=section&id=Facility%20Management%20Contracts) - Facility management contracts typically range from three to five years with renewal options, but government partners can terminate for non-appropriation of funds or convenience[121](index=121&type=chunk) - The Private Prison EO impacts DOJ agencies like USMS, which accounted for **21%** of total revenue. One USMS contract was renewed until 2028, while another expires in October 2025[122](index=122&type=chunk)[123](index=123&type=chunk) - The management contract for the Elizabeth Detention Center (**300 beds**) is scheduled to expire November 30, 2024, with three one-month extension options, generating **$14.6 million** in revenue YTD 2024[124](index=124&type=chunk) [CoreCivic Safety Segment Performance](index=32&type=section&id=CoreCivic%20Safety%20Segment%20Performance) | CoreCivic Safety Performance (in millions) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :----------------------------------------- | :------ | :------ | :------- | :------- | | Total Revenue | $459.3 | $443.3 | $1,372.4 | $1,282.7 | | Facility Net Operating Income | $115.8 | $92.4 | $330.7 | $267.6 | | Operating Margin | 25.2% | 20.8% | 24.1% | 20.9% | - Operating margins in CoreCivic Safety improved due to a **4.1% (Q3)** and **4.0% (YTD)** increase in average revenue per compensated man-day and decreased variable operating expenses[127](index=127&type=chunk) - The termination of the STFRC contract negatively impacts future operating margins, despite a temporary positive impact in Q3 2024 due to accelerated deferred revenue recognition and rapid expense reduction[128](index=128&type=chunk)[129](index=129&type=chunk) - New management contracts at Tallahatchie and Saguaro facilities with Hinds County, Wyoming, Harris County, and Montana contributed to increased occupancy and revenue[131](index=131&type=chunk)[132](index=132&type=chunk) [CoreCivic Community Segment Performance](index=34&type=section&id=CoreCivic%20Community%20Segment%20Performance) | CoreCivic Community Performance (in millions) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :-------------------------------------------- | :------ | :------ | :------- | :------- | | Total Revenue | $28.2 | $29.8 | $88.4 | $84.6 | | Facility Net Operating Income | $3.6 | $6.5 | $15.5 | $15.7 | | Operating Margin | 17.3% | 30.5% | 24.5% | 24.8% | - Operating margins in CoreCivic Community were negatively impacted by increased operating expenses per compensated man-day, driven by higher staffing levels, wage rates, and a legal matter settlement[135](index=135&type=chunk) - The company completed the sale of the **120-bed** Dahlia Facility in January 2024 for **$8.0 million** (gain of **$0.5 million**) and the idled **390-bed** Tulsa Transitional Center in July 2024 for **$3.4 million** (gain of **$1.2 million**)[136](index=136&type=chunk)[137](index=137&type=chunk) [CoreCivic Properties Segment Performance](index=35&type=section&id=CoreCivic%20Properties%20Segment%20Performance) | CoreCivic Properties Performance (in millions) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--------------------------------------------- | :------ | :------ | :------- | :------- | | Total Revenue | $4.1 | $10.5 | $21.5 | $37.9 | | Facility Net Operating Income | $1.3 | $7.4 | $11.5 | $28.1 | | Segment Net Operating Income Contribution | 2.8% | 8.8% | 4.9% | 10.9% | - Revenue and net operating income decreased significantly due to the termination of the California City Correctional Center lease (March 2024) and North Fork Correctional Facility lease (June 2023), and the sale of three leased properties in 2023[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[142](index=142&type=chunk) - The new lease agreement for the Allen Gamble Correctional Center, effective October 1, 2023, contributed **$1.9 million** in revenue and **$1.4 million** in net operating income in Q3 2024[141](index=141&type=chunk) [General and Administrative Expenses](index=36&type=section&id=General%20and%20administrative%20expenses) | G&A Expenses (in millions) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :------------------------- | :------ | :------ | :------- | :------- | | General and administrative expenses | $41.2 | $33.9 | $111.5 | $99.2 | - G&A expenses increased primarily due to higher corporate salaries and incentive-based compensation[143](index=143&type=chunk) [Depreciation and Amortization](index=36&type=section&id=Depreciation%20and%20amortization) | D&A Expenses (in millions) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :------------------------- | :------ | :------ | :------- | :------- | | Depreciation and amortization | $32.2 | $32.5 | $96.1 | $95.2 | - Depreciation and amortization expense increased in the nine-month period due to renovations completed in 2023, partially offset by facility sales[144](index=144&type=chunk) [Asset Impairments](index=36&type=section&id=Asset%20impairments) - A **$3.1 million** impairment charge was recognized in Q3 2024 due to the termination of the STFRC IGSA and lease agreement[145](index=145&type=chunk) - A **$2.7 million** contract acquisition asset impairment was recognized in Q3 2023 due to the termination of an agreement with a technology vendor[145](index=145&type=chunk) [Interest Expense, Net and Debt Repayments and Refinancing Transactions](index=36&type=section&id=Interest%20expense,%20net%20and%20expenses%20associated%20with%20debt%20repayments%20and%20refinancing%20transactions) - Net interest expense decreased in Q3 and YTD 2024 primarily due to **$76.2 million** in debt repayments since September 30, 2023, and an increase in interest income[148](index=148&type=chunk) - The company incurred **$31.3 million** in charges during the nine months ended September 30, 2024, related to the Tender Offer and redemption of Old 8.25% Senior Notes[151](index=151&type=chunk) - Interest rate spreads on the Bank Credit Facility declined in Q2 and Q3 2024 based on the company's total leverage ratio[152](index=152&type=chunk) [Gain on Sale of Real Estate Assets, Net](index=37&type=section&id=Gain%20on%20sale%20of%20real%20estate%20assets,%20net) - Q3 2024 gain includes **$1.2 million** from the sale of the Tulsa Transitional Center. YTD 2024 gain includes **$0.5 million** from the sale of the Dahlia Facility and **$0.1 million** from unused land[153](index=153&type=chunk) - Q3 2023 gain includes **$0.4 million** from the sale of a vacant parcel of land[154](index=154&type=chunk) [Income Tax Expense](index=38&type=section&id=Income%20tax%20expense) | Income Tax Expense (in millions) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :------------------------------- | :------ | :------ | :------- | :------- | | Income tax expense | $9.1 | $5.6 | $17.2 | $18.0 | - YTD 2024 income tax expense includes a **$10.2 million** benefit for special items (asset impairments, debt refinancing, net of asset sales) and a benefit from stock-based compensation vesting[155](index=155&type=chunk) - The effective tax rate can fluctuate based on estimates of taxable income, tax planning, federal/state tax rates, deductible expenses, uncertain tax positions, and state apportionment factors[156](index=156&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) [Capital Requirements and Strategy](index=38&type=section&id=Capital%20Requirements%20and%20Strategy) - Post-REIT conversion (effective Jan 1, 2021), CoreCivic prioritizes free cash flow for debt repayment and discretionary capital returns (share repurchases/dividends)[157](index=157&type=chunk) - The share repurchase program was increased to **$350.0 million** in May 2024. As of September 30, 2024, **$172.1 million** had been used to repurchase **14.1 million** shares, with **$177.9 million** remaining[159](index=159&type=chunk) - Due to the STFRC contract termination, the company intends to prioritize debt reduction, though share repurchases remain discretionary[159](index=159&type=chunk) - Growth opportunities include new developments in the Properties segment, expansion of non-residential correctional alternatives in the Community segment, and potential acquisitions[160](index=160&type=chunk) [Cash Position and Debt Maturities](index=39&type=section&id=Cash%20Position%20and%20Debt%20Maturities) - As of September 30, 2024, CoreCivic had **$107.9 million** cash on hand and **$257.0 million** available under its Revolving Credit Facility[162](index=162&type=chunk) - The company has no debt maturities until October 2027, with a total weighted average effective interest rate of **7.4%** and weighted average maturity of **5.6 years** as of September 30, 2024[164](index=164&type=chunk)[165](index=165&type=chunk) [Operating Activities Cash Flow](index=40&type=section&id=Operating%20Activities%20Cash%20Flow) - Net cash provided by operating activities was **$229.9 million** for the nine months ended September 30, 2024, up from **$209.6 million** in the prior year[168](index=168&type=chunk) - The increase was favorably impacted by a **$46.3 million** increase in facility net operating income, partially offset by an **$8.1 million** decline in working capital and a **$5.4 million** increase in non-cash revenue[168](index=168&type=chunk) [Investing Activities Cash Flow](index=40&type=section&id=Investing%20Activities%20Cash%20Flow) - Net cash used in investing activities was **$34.8 million** for the nine months ended September 30, 2024, compared to **$39.2 million** in the prior year[169](index=169&type=chunk) - This includes **$7.3 million** for facility development/expansions and **$41.6 million** for capital improvements, partially offset by **$11.9 million** in net proceeds from asset sales[169](index=169&type=chunk) [Financing Activities Cash Flow](index=40&type=section&id=Financing%20Activities%20Cash%20Flow) - Net cash used in financing activities was **$206.5 million** for the nine months ended September 30, 2024, primarily due to **$593.1 million** in debt repayments (Old 8.25% Senior Notes tender/redemption) and **$34.9 million** in debt-related costs[170](index=170&type=chunk) - Financing activities were partially offset by **$500.0 million** in gross proceeds from the issuance of New 8.25% Senior Notes[170](index=170&type=chunk) - The company also used **$69.2 million** for its share repurchase program and common stock retirement for equity-based compensation[170](index=170&type=chunk) [Supplemental Guarantor Information](index=41&type=section&id=Supplemental%20Guarantor%20Information) - All domestic subsidiaries of CoreCivic that guarantee the Bank Credit Facility also provide full and unconditional guarantees for the Senior Notes[173](index=173&type=chunk) - As of September 30, 2024, there were no material restrictions on CoreCivic's ability to obtain funds or transfer assets from its subsidiaries[174](index=174&type=chunk) | Summarized Financial Information (in thousands) | December 31, 2023 | | :---------------------------------------------- | :---------------- | | Current assets | $460,475 | | Total non-current assets | $2,498,975 | | Current liabilities | $284,886 | | Total long-term liabilities | $1,192,852 | | Summarized Financial Information (in thousands) | Nine Months Ended Sep 30, 2024 | | :---------------------------------------------- | :----------------------------- | | Revenue | $1,480,277 | | Total expenses | $1,331,282 | | Net income | $46,013 | [Funds from Operations](index=42&type=section&id=Funds%20from%20Operations) - Funds From Operations (FFO) and Normalized FFO are non-GAAP measures used to evaluate the operating performance of real estate companies[181](index=181&type=chunk)[182](index=182&type=chunk) | FFO & Normalized FFO (in thousands) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :---------------------------------- | :------ | :------ | :------- | :------- | | Net income | $21,096 | $13,892 | $49,593 | $41,122 | | Funds From Operations | $47,122 | $38,468 | $124,856 | $114,085 | | Normalized Funds From Operations | $47,602 | $40,462 | $146,839 | $117,167 | [Material Cash Requirements](index=43&type=section&id=Material%20Cash%20Requirements) | Contractual Cash Obligations (in thousands) | 2024 (remainder) | 2025 | 2026 | 2027 | 2028 | Thereafter | Total | | :---------------------------------------- | :--------------- | :------ | :------ | :-------- | :------ | :--------- | :---------- | | Long-term debt | $2,936 | $12,073 | $15,701 | $262,423 | $97,995 | $613,788 | $1,004,916 | | Interest on senior and mortgage notes | $27,965 | $58,910 | $58,644 | $58,355 | $46,497 | $52,796 | $303,167 | | Contractual facility developments and other commitments | $1,018 | $3,155 | — | — | — | — | $4,173 | | Leases | $1,390 | $5,388 | $4,954 | $4,270 | $3,832 | $11,811 | $31,645 | | Total contractual cash obligations | $33,309 | $79,526 | $79,299 | $325,048 | $148,324| $678,395 | $1,343,901 | - The company had **$18.0 million** in letters of credit outstanding as of September 30, 2024, primarily for workers' compensation and debt service reserves[187](index=187&type=chunk) [Inflation](index=43&type=section&id=INFLATION) - Many contracts include inflationary indexing provisions to mitigate the impact of inflation on net income[188](index=188&type=chunk) - Substantial increases in personnel, workers' compensation, utilities, food, and medical expenses could adversely impact results if they outpace per diem or fixed rates[188](index=188&type=chunk) [Seasonality and Quarterly Results](index=43&type=section&id=SEASONALITY%20AND%20QUARTERLY%20RESULTS) - Financial results are impacted by the number of calendar days in a quarter, with Q3 and Q4 typically having more days than Q1 and Q2[189](index=189&type=chunk) - Quarterly results are also affected by government funding, acquisitions, new facility openings, and start-up expenses[189](index=189&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=43&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK.) The company's primary market risk is exposure to U.S. interest rate changes, particularly affecting its variable-rate Bank Credit Facility - Primary market risk exposure is to changes in U.S. interest rates, affecting the variable-rate Bank Credit Facility[190](index=190&type=chunk) - A hypothetical **100 basis point** increase or decrease in interest rates would change net interest expense by **$0.3 million** for the three months and **$1.0 million** for the nine months ended September 30, 2024[190](index=190&type=chunk) - Fixed-rate debt (4.75% Senior Notes, New 8.25% Senior Notes, Kansas Notes) is not materially impacted by changes in market interest rates[191](index=191&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=44&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES.) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Disclosure controls and procedures were evaluated and deemed effective as of September 30, 2024[193](index=193&type=chunk) - No material changes in internal control over financial reporting occurred during the period covered by the report[193](index=193&type=chunk) [PART II – OTHER INFORMATION](index=45&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=45&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS.) Detailed information on legal proceedings, including ongoing litigation and investigations, is incorporated by reference from Note 7 - Information on legal proceedings is incorporated by reference from Note 7 to the financial statements[195](index=195&type=chunk) [ITEM 1A. RISK FACTORS](index=45&type=section&id=ITEM%201A.%20RISK%20FACTORS.) No material changes to risk factors were reported compared to those disclosed in the 2023 Form 10-K - No material changes in risk factors were reported compared to those disclosed in the 2023 Form 10-K[196](index=196&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=45&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS.) Details the company's share repurchase program, including shares repurchased, total cost, and remaining authorization, with a focus on debt reduction | Share Repurchase Program | Total as of Sep 30, 2024 | | :----------------------- | :----------------------- | | Shares Repurchased | 14.1 million | | Aggregate Cost | $172.1 million | | Authorization Available | $177.9 million | - The Board of Directors increased the share repurchase program authorization to **$350.0 million** on May 16, 2024[197](index=197&type=chunk) - No shares were repurchased during the third quarter of 2024. The company plans to prioritize debt reduction due to the impact of the STFRC contract termination on leverage ratios[197](index=197&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=45&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES.) CoreCivic reported no defaults upon senior securities during the period - No defaults upon senior securities were reported[198](index=198&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=45&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES.) CoreCivic reported no mine safety disclosures - No mine safety disclosures were reported[198](index=198&type=chunk) [ITEM 5. OTHER INFORMATION](index=46&type=section&id=ITEM%205.%20OTHER%20INFORMATION.) No other material information was reported, including no Rule 10b5-1 trading arrangements by directors or officers - No other material information was reported, including no Rule 10b5-1 trading arrangement adoptions or terminations by directors or officers[199](index=199&type=chunk) [ITEM 6. EXHIBITS](index=46&type=section&id=ITEM%206.%20EXHIBITS.) Lists all exhibits filed with the Form 10-Q, including guarantor subsidiaries, CEO/CFO certifications, and Inline XBRL documents - Exhibits include a list of Guarantor Subsidiaries, CEO and CFO certifications (pursuant to Sections 302 and 906 of Sarbanes-Oxley Act), and Inline XBRL documents[200](index=200&type=chunk)[201](index=201&type=chunk) [SIGNATURES](index=46&type=section&id=SIGNATURES) The report is duly signed by the President and CEO, and the Executive Vice President, CFO, and Secretary of CoreCivic, Inc - The report is signed by Damon T. Hininger, President and Chief Executive Officer, and David M. Garfinkle, Executive Vice President, Chief Financial Officer, and Secretary[202](index=202&type=chunk)[203](index=203&type=chunk)

Financial Performance - CoreCivic reported total revenue of $491.6 million for Q3 2024, marking a 2% increase year-over-year [1] - Net income reached $21.1 million, a significant increase of 52% compared to the same quarter in 2023 [1][2] - Adjusted net income for Q3 2024 was $22.4 million, up 44% from $15.6 million in Q3 2023 [2][3] - Diluted earnings per share (EPS) were $0.19, while adjusted diluted EPS was $0.20, reflecting increases from the previous year [1][2] Operational Highlights - Compensated occupancy improved to 75.2% in Q3 2024 from 72.0% in the prior year, contributing to enhanced operating margins [1][4] - The company achieved a normalized funds from operations (FFO) per diluted share of $0.43, representing a 23% increase year-over-year [1][7] - Adjusted EBITDA for Q3 2024 was $83.3 million, an 11% increase from $75.2 million in Q3 2023 [1][6] Revenue Sources - Revenue from ICE, CoreCivic's largest government partner, decreased by 3.4% year-over-year, primarily due to the termination of the ICE contract at the South Texas Family Residential Facility [5] - Excluding the South Texas facility, revenue from ICE increased by 10.9% compared to Q3 2023 [5] Capital Strategy - The company has a share repurchase program authorized for up to $350 million, with $177.9 million remaining as of September 30, 2024 [8][9] - CoreCivic repurchased 4.0 million shares for $59.5 million in 2024, totaling 14.1 million shares repurchased since the program's inception [8][9] Financial Guidance - CoreCivic raised its full-year financial guidance for 2024, projecting net income between $55.5 million and $61.5 million, up from the previous guidance of $42.0 million to $50.4 million [10] - Adjusted net income guidance was also increased to a range of $78.0 million to $84.0 million [10][11]