CoreCivic(CXW) - 2019 Q3 - Quarterly Report

PART I – FINANCIAL INFORMATION Presents CoreCivic's unaudited consolidated financial statements, management's analysis, market risk, and internal controls ITEM 1. – FINANCIAL STATEMENTS. Presents CoreCivic's unaudited consolidated financial statements, including balance sheets, operations, cash flows, equity, and detailed notes Consolidated Balance Sheets This table provides a snapshot of CoreCivic's assets, liabilities, and equity as of September 30, 2019, and December 31, 2018 Consolidated Balance Sheet Highlights (Amounts in Thousands) | ASSETS/LIABILITIES & EQUITY | Sep 30, 2019 | Dec 31, 2018 | | :-------------------------- | :----------- | :----------- | | Cash and cash equivalents | $47,537 | $52,802 | | Total current assets | $380,645 | $373,525 | | Property and equipment, net | $2,836,841 | $2,830,589 | | Total assets | $3,748,845 | $3,655,660 | | Total current liabilities | $714,802 | $366,396 | | Long-term debt, net | $1,521,785 | $1,787,555 | | Total liabilities | $2,365,644 | $2,240,601 | | Total stockholders' equity | $1,383,201 | $1,415,059 | Consolidated Statements of Operations This table details CoreCivic's revenues, operating income, net income, and earnings per share for the three and nine months ended September 30, 2019 and 2018 Consolidated Statements of Operations Highlights (Amounts in Thousands, Except Per Share) | Metric | 3 Months Ended Sep 30, 2019 | 3 Months Ended Sep 30, 2018 | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | | :---------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | REVENUES | $508,522 | $462,728 | $1,482,880 | $1,353,573 | | OPERATING INCOME | $71,095 | $64,419 | $215,313 | $184,836 | | NET INCOME | $48,994 | $40,994 | $146,912 | $117,968 | | BASIC EARNINGS PER SHARE| $0.41 | $0.35 | $1.23 | $1.00 | | DILUTED EARNINGS PER SHARE| $0.41 | $0.34 | $1.23 | $0.99 | Consolidated Statements of Cash Flows This table summarizes CoreCivic's cash flows from operating, investing, and financing activities for the nine months ended September 30, 2019 and 2018 Consolidated Statements of Cash Flows Highlights (Amounts in Thousands) | Cash Flow Activity | 9 Months Ended Sep 30, 2019 | 9 Months Ended Sep 30, 2018 | | :-------------------------------------- | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $304,072 | $284,571 | | Net cash used in investing activities | $(198,054) | $(230,636) | | Net cash used in financing activities | $(107,077) | $(1,390) | | Net increase (decrease) in cash | $(1,059) | $52,545 | | Cash, cash equivalents and restricted cash, end of period | $73,078 | $104,728 | Consolidated Statement of Stockholders' Equity (September 30, 2019) This table outlines changes in CoreCivic's stockholders' equity for the nine months ended September 30, 2019 Stockholders' Equity Changes (9 Months Ended Sep 30, 2019, Amounts in Thousands) | Item | Common Shares | Stock Par Value | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity | | :-------------------------------------- | :------------ | :-------------- | :------------------------- | :------------------ | :------------------------- | | Balance as of Dec 31, 2018 | 118,674 | $1,187 | $1,807,202 | $(393,330) | $1,415,059 | | Net income | — | — | — | $49,340 | $49,340 | | Retirement of common stock | (143) | (1) | (3,069) | — | (3,070) | | Dividends declared | — | — | — | (52,994) | (52,994) | | Restricted stock compensation, net | — | — | 3,812 | — | 3,812 | | Cumulative effect of adoption of new accounting standard | — | — | — | (29,940) | (29,940) | | Balance as of Sep 30, 2019 | 119,096 | $1,191 | $1,817,258 | $(435,248) | $1,383,201 | Consolidated Statement of Stockholders' Equity (September 30, 2018) This table outlines changes in CoreCivic's stockholders' equity for the nine months ended September 30, 2018 Stockholders' Equity Changes (9 Months Ended Sep 30, 2018, Amounts in Thousands) | Item | Common Shares | Stock Par Value | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity | | :-------------------------------------- | :------------ | :-------------- | :------------------------- | :------------------ | :------------------------- | | Balance as of Dec 31, 2017 | 118,204 | $1,182 | $1,794,713 | $(344,287) | $1,451,608 | | Net income | — | — | — | $37,777 | $37,777 | | Retirement of common stock | (117) | (1) | (2,524) | — | (2,525) | | Dividends declared | — | — | — | (51,533) | (51,533) | | Restricted stock compensation, net | — | — | 3,486 | — | 3,486 | | Cumulative effect of adoption of new accounting standard | — | — | — | (2,575) | (2,575) | | Balance as of Sep 30, 2018 | 118,670 | $1,187 | $1,803,903 | $(383,015) | $1,422,075 | Notes to Consolidated Financial Statements (Unaudited) This section provides detailed explanations of CoreCivic's accounting policies, organization, and specific financial statement items 1. Organization and Operations CoreCivic operates as a REIT through three segments: Safety, Community, and Properties, managing correctional and reentry facilities and government-leased real estate - CoreCivic is the nation's largest owner of partnership correctional, detention, and residential reentry facilities and one of the largest prison operators in the United States, also being the largest private owner of real estate used by U.S. government agencies[26] - The company operates through three segments: CoreCivic Safety (51 correctional/detention facilities, ~73,000 beds), CoreCivic Community (27 residential reentry centers, ~5,000 beds), and CoreCivic Properties (27 properties leased to third parties, 2.3 million sq ft)[26] - CoreCivic operates as a Real Estate Investment Trust (REIT) since January 1, 2013, conducting services through Taxable REIT Subsidiaries (TRSs) which are subject to corporate income tax and can retain income for reinvestment[28] [2. Basis of Presentation and Summary of Significant Accounting Policies](index=8&type=section&id=2.%20BASIS%20OF%20PRESENTATION%20AND%20SUMMARY%20