CoreCivic(CXW) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2024 was $479.3 million, with a full year revenue of $2.0 billion[4] - Net income for Q4 2024 was $19.3 million, or $0.17 per diluted share, compared to $26.5 million, or $0.23 per diluted share in Q4 2023[7] - Adjusted EBITDA for Q4 2024 was $74.2 million, down from $90.0 million in Q4 2023, primarily due to contract terminations[12] - Total revenue for Q4 2024 was $479.3 million, a decrease of 2.5% compared to $491.2 million in Q4 2023[32] - Net income for Q4 2024 was $19.3 million, down from $26.5 million in Q4 2023, representing a decline of 27.5%[32] - Basic earnings per share for Q4 2024 were $0.17, compared to $0.23 in Q4 2023, reflecting a decrease of 26.1%[32] - Adjusted net income for Q4 2024 was $18.2 million, compared to $26.4 million in Q4 2023, a decrease of 30.9%[33] - Funds from operations for Q4 2024 were $43.3 million, down from $51.0 million in Q4 2023, a decline of 15.1%[35] - Normalized funds from operations for Q4 2024 were $43.3 million, compared to $51.3 million in Q4 2023, a decrease of 15.6%[35] - EBITDA for Q4 2024 was $75,673 million, down from $90,105 million in Q4 2023, and for the full year, EBITDA decreased to $299,655 million from $308,404 million[37] - Adjusted EBITDA for Q4 2024 was $74,160 million compared to $90,010 million in Q4 2023, with full-year adjusted EBITDA increasing to $330,817 million from $311,002 million[37] Assets and Liabilities - Total assets decreased to $2.93 billion in Q4 2024 from $3.11 billion in Q4 2023, a reduction of 5.6%[31] - Long-term debt decreased to $973.1 million in Q4 2024 from $1.08 billion in Q4 2023, a decline of 10.2%[31] - The company reported a total accumulated deficit of $240.0 million as of December 31, 2024, compared to $308.8 million in 2023, showing an improvement[31] Future Guidance - CoreCivic expects 2025 net income guidance between $53.5 million and $67.5 million, with diluted EPS guidance of $0.48 to $0.61[19] - The company plans to invest $29.0 million to $31.0 million in maintenance capital expenditures for real estate assets in 2025[22] - CoreCivic anticipates new contracts in 2025 due to modified immigration policies, potentially activating idle facilities[20] - Guidance for the year ending December 31, 2025, projects net income between $53,500 million and $67,500 million, with EBITDA expected to range from $281,000 million to $293,000 million[38] - Funds From Operations (FFO) for 2025 is guided between $152,500 million and $167,500 million, with FFO per diluted share estimated between $1.37 and $1.50[38] - Interest expense for 2025 is projected at approximately $74,000 million, with depreciation and amortization of real estate assets expected to be around $99,000 million to $100,000 million[38] Operational Insights - Occupancy rate reached 75.5% in Q4 2024, the highest level since Q1 2020, despite contract terminations[6] - Revenue from ICE decreased by 21.6% in Q4 2024, totaling $120.3 million compared to $153.5 million in Q4 2023[10] - A new management contract with the state of Montana was awarded, increasing the geographic range of facilities serving the state[18] - Share repurchase program authorized up to $350.0 million, with $181.1 million spent to repurchase 14.5 million shares since May 2022[15] Challenges and Considerations - The company anticipates continued challenges due to government budget uncertainties and potential changes in policies affecting the corrections industry[30] - The company emphasizes the importance of non-GAAP measures like FFO and Adjusted EBITDA for evaluating operating performance, particularly in the real estate sector[40] - Adjusted Net Income is calculated by adding back certain expenses related to debt repayments and unusual charges to GAAP net income, providing a clearer view of operational performance[41] - The company notes that different companies may calculate these non-GAAP measures differently, which may limit comparability[41] - The company believes that assessing performance without the impact of depreciation or amortization is useful due to the unique nature of its real estate assets[40]