CoreCivic(CXW) - 2022 Q2 - Quarterly Report

PART I – FINANCIAL INFORMATION This section provides a comprehensive overview of the company's financial performance and position, including detailed statements and explanatory notes ITEM 1. – FINANCIAL STATEMENTS. This section presents CoreCivic's unaudited consolidated financial statements for Q2 and H1 2022, including balance sheets, income statements, cash flows, and equity, with detailed notes Consolidated Balance Sheets This table provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' equity at specific dates | ASSETS / LIABILITIES AND STOCKHOLDERS' EQUITY | June 30, 2022 (Thousands) | December 31, 2021 (Thousands) | | :-------------------------------------------- | :------------------------ | :---------------------------- | | Cash and cash equivalents | $115,611 | $299,645 | | Total current assets | $505,244 | $627,384 | | Total assets | $3,276,530 | $3,498,938 | | Total current liabilities | $474,813 | $340,968 | | Long-term debt, net | $1,148,679 | $1,492,046 | | Total liabilities | $1,907,590 | $2,126,470 | | Total stockholders' equity | $1,368,940 | $1,372,468 | Consolidated Statements of Operations This table presents the company's revenues, expenses, and net income (loss) over specified periods, along with basic and diluted earnings per share | REVENUE / EXPENSES | Three Months Ended June 30, 2022 (Thousands) | Three Months Ended June 30, 2021 (Thousands) | Six Months Ended June 30, 2022 (Thousands) | Six Months Ended June 30, 2021 (Thousands) | | :----------------- | :------------------------------------------- | :------------------------------------------- | :----------------------------------------- | :----------------------------------------- | | REVENUE | $456,697 | $464,571 | $909,685 | $919,289 | | Operating Expenses | $349,000 | $333,070 | $693,629 | $665,954 | | Net Income (Loss) | $10,562 | $15,623 | $29,565 | $(109,945) | | Basic EPS | $0.09 | $0.13 | $0.25 | $(0.92) | | Diluted EPS | $0.09 | $0.13 | $0.24 | $(0.92) | Consolidated Statements of Cash Flows This table details the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30 | CASH FLOWS (Six Months Ended June 30) | 2022 (Thousands) | 2021 (Thousands) | | :------------------------------------ | :--------------- | :--------------- | | Net cash provided by operating activities | $94,314 | $82,326 | | Net cash provided by (used in) investing activities | $(22,746) | $286,572 | | Net cash used in financing activities | $(254,870) | $(333,911) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $(183,302) | $34,987 | | Cash, cash equivalents and restricted cash, end of period | $127,405 | $171,755 | Consolidated Statement of Stockholders' Equity (June 30, 2022) This section outlines changes in stockholders' equity for the period ending June 30, 2022, including common shares, paid-in capital, and accumulated deficit Stockholders' Equity (Thousands) | Stockholders' Equity (Thousands) | Balance as of Dec 31, 2021 | Balance as of Mar 31, 2022 | Balance as of Jun 30, 2022 | | :------------------------------- | :------------------------- | :------------------------- | :------------------------- | | Common Shares | 120,285 | 121,586 | 118,620 | | Stock Par Value | $1,203 | $1,216 | $1,186 | | Additional Paid-in Capital | $1,869,955 | $1,870,065 | $1,836,949 | | Accumulated Deficit | $(498,690) | $(479,764) | $(469,195) | | Total Stockholders' Equity | $1,372,468 | $1,391,517 | $1,368,940 | - The company's total stockholders' equity decreased from $1,372,468 thousand at December 31, 2021, to $1,368,940 thousand at June 30, 2022, primarily due to the retirement of common stock[18] Consolidated Statement of Stockholders' Equity (June 30, 2021) This section details the changes in stockholders' equity for the period ending June 30, 2021, including common shares, paid-in capital, and accumulated deficit Stockholders' Equity (Thousands) | Stockholders' Equity (Thousands) | Balance as of Dec 31, 2020 | Balance as of Mar 31, 2021 | Balance as of Jun 30, 2021 | | :------------------------------- | :------------------------- | :------------------------- | :------------------------- | | Common Shares | 119,638 | 120,277 | 120,285 | | Stock Par Value | $1,196 | $1,203 | $1,203 | | Additional Paid-in Capital | $1,835,494 | $1,838,066 | $1,842,395 | | Accumulated Deficit | $(446,519) | $(572,305) | $(556,639) | | Total Stockholders' Equity | $1,390,171 | $1,266,964 | $1,286,959 | - Total stockholders' equity decreased from $1,390,171 thousand at December 31, 2020, to $1,286,959 thousand at June 30, 2021, largely influenced by a net loss of $125,568 thousand in the first quarter of 2021[21] Notes to Consolidated Financial Statements This section provides detailed explanatory notes supporting the consolidated financial statements, covering various accounting policies and financial disclosures 1. ORGANIZATION AND OPERATIONS This note describes CoreCivic's business as a leading owner and operator of correctional, detention, and residential reentry facilities, and a major private owner of government-used real estate - CoreCivic is the largest owner of partnership correctional, detention, and residential reentry facilities and one of the largest prison operators in the U.S., also being the largest private owner of real estate used by government agencies[23] - The company operates through three segments: CoreCivic Safety (45 correctional/detention facilities, ~68,000 beds), CoreCivic Community (24 residential reentry centers, ~5,000 beds), and CoreCivic Properties (10 leased properties, 1.8 million sq ft)[23] - Facilities offer rehabilitation and educational programs, health care, food services, and work/recreational programs to reduce recidivism[24] 2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This note outlines the basis for the unaudited interim financial statements and summarizes significant accounting policies, including key risks like the Private Prison Executive Order - The unaudited interim consolidated financial statements reflect normal recurring adjustments and are condensed, with full details in the 2021 Form 10-K[25] - A key risk is President Biden's Private Prison Executive Order (EO) directing the DOJ not to renew contracts with privately operated criminal detention facilities, impacting USMS and BOP contracts[26] - The McRae Correctional Facility's BOP contract is not expected to be renewed in November 2022, and USMS contracts accounted