CoreCivic(US:CXW)2021-11-08 16:00Facility Operations - As of September 30, 2021, CoreCivic operated 47 correctional and detention facilities with a total design capacity of approximately 70,000 beds[111] - CoreCivic's total design capacity for residential reentry centers is approximately 5,000 beds across 26 facilities[111] - The company operated 82 facilities as of September 30, 2021, down from 89 facilities as of December 31, 2020[135] - The CoreCivic Safety segment included 47 correctional and detention facilities, while the CoreCivic Community segment included 26 residential reentry centers[139] Revenue Sources - For the nine months ended September 30, 2021, the Bureau of Prisons (BOP) accounted for 2% ($30.3 million) of CoreCivic's total revenue, while the U.S. Marshals Service (USMS) and Immigration and Customs Enforcement (ICE) accounted for 23% ($324.3 million) and 30% ($411.5 million), respectively[119] - The company has one prison contract with the BOP, accounting for 2% ($30.3 million) of total revenue for the nine months ended September 30, 2021, which expires in November 2022[166] - The USMS accounted for 23% ($324.3 million) and ICE for 30% ($411.5 million) of total revenue for the nine months ended September 30, 2021[166] - Federal customers generated approximately 56% of total revenue for the three months ended September 30, 2021, increasing by $19.8 million, or 8.0%, compared to the same period in 2020[148] Financial Performance - Net income attributable to common stockholders for the three months ended September 30, 2021, was $30.0 million, or $0.25 per diluted share, compared to $26.7 million, or $0.22 per diluted share, for the same period in 2020[136] - For the nine months ended September 30, 2021, the company reported a net loss of $79.9 million, or $0.67 per diluted share, compared to net income of $81.0 million, or $0.68 per diluted share, for the same period in 2020[136] - Total revenue for the nine months ended September 30, 2021, was $1,390.5 million, a decrease of $41.5 million, or 2.9%, from $1,432.0 million in the same period of 2020[144] - CoreCivic Safety's total revenue increased by $11.5 million, or 2.7%, from $420.0 million in Q3 2020 to $431.5 million in Q3 2021[173] Expenses and Liabilities - The company incurred operating expenses of approximately $2.0 million for the three months ended September 30, 2021, at all idled facilities, and $6.0 million for the nine months ended September 30, 2021[125] - Operating expenses totaled $338.2 million in Q3 2021, down from $347.9 million in Q3 2020, and $1,004.1 million for the nine months ended September 30, 2021, compared to $1,063.2 million in the same period in 2020[158] - The company recognized an income tax charge of $128.7 million for the nine months ended September 30, 2021, compared to $3.2 million in the same period of 2020[136] - As of September 30, 2021, the company had $46.2 million in accrued liabilities for employee health, workers' compensation, and automobile insurance claims[132] Contracts and Renewals - CoreCivic has a contract with the BOP that expires in November 2022, and the USMS has indicated it will not renew existing contracts for private detention facilities[119] - The company believes it will renew all other contracts with government partners that are scheduled to expire within the next twelve months, maintaining a high renewal rate due to constrained supply and cost-effectiveness[172] - The company entered into a new three-year contract with Mahoning County, Ohio, to utilize up to 990 beds at its Northeast Ohio Correctional Center[120] Asset Management - The company owns 9 properties for lease to government agencies, totaling 1.6 million square feet[111] - The company completed the sale of three non-core actively leased properties for an aggregate price of $326.0 million, generating net proceeds of $122.6 million after transaction-related costs[236] - The company generated net proceeds of $46.2 million from the sale of two leased properties in May 2021[194] Debt and Financing - The company had $1.437 billion in long-term debt as of September 30, 2021, with a total weighted average effective interest rate of 6.3%[228] - The company issued $450.0 million of 8.25% senior unsecured notes due 2026, with an effective yield to maturity of 8.50%, using proceeds to redeem $250.0 million of 5.0% senior unsecured notes and reduce other indebtedness[208] - The company anticipates increased interest expense due to the issuance of the 8.25% Senior Notes, partially offset by the repayment of $90.0 million of Term Loan B[211] Cash Flow and Liquidity - For the nine months ended September 30, 2021, the company generated $284.1 million in cash from operating activities, compared to $281.5 million for the same period in 2020, reflecting a year-over-year increase of 0.9%[238] - The company reported net cash flow used in financing activities of $228.8 million for the nine months ended September 30, 2021, primarily due to net repayments under its Revolving Credit Facility[241] - The company anticipates sufficient liquidity to repay $174.0 million of 4.625% Senior Notes upon maturity in May 2023[226] Operational Metrics - Revenue per compensated man-day increased to $90.02 for the three months ended September 30, 2021, compared to $86.05 for the same period in 2020, reflecting a 4.6% increase[143] - Operating income per compensated man-day rose to $24.48 for the three months ended September 30, 2021, up from $20.49 in the same period of 2020, resulting in an operating margin of 27.2%[143] - Average daily compensated population decreased by 996, or 1.8%, to 54,106 during the three months ended September 30, 2021, compared to 55,102 in the same period of 2020[147] Impairments and Charges - The company recognized $5.2 million and $9.4 million in asset impairments for the three and nine months ended September 30, 2021, respectively[136] - The company expects the managed-only contract for the 1,030-bed Marion County Jail to be terminated effective December 31, 2021, leading to an asset impairment charge of $2.9 million[169] - Asset impairment charges for the nine months ended September 30, 2021, included $5.2 million related to predevelopment activities due to lease terminations with the state of Alabama[201]