Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of approximately $174 million, or $1.24 per diluted share, on revenues of approximately $682 million, compared to net income of approximately $26 million, or $0.19 per diluted share, on revenues of approximately $603 million in Q3 2024 [19][20] - Adjusted net income for Q3 2025 was approximately $35 million, or $0.25 per diluted share, compared to $29 million, or $0.21 per diluted share for the prior year's third quarter [21] - Adjusted EBITDA for Q3 2025 was approximately $120 million, up from approximately $119 million reported for the prior year [21][22] Business Line Data and Key Metrics Changes - Revenues from owned and leased secure service facilities increased by approximately 22% year over year, driven by new ICE contracts [22] - Revenues for non-residential contracts increased by approximately 10% from the prior year, while managed-only contracts saw an increase of approximately 8% [22] - Revenues from electronic monitoring and supervision services remained largely unchanged from the prior year [22] Market Data and Key Metrics Changes - The company has entered into new or expanded contracts representing over $460 million in new incremental annualized revenues, the largest amount in the company's history [4][29] - The current ICE capacity has increased to over 26,000 beds, with a census of over 22,000, the highest ICE population ever recorded [5][6] Company Strategy and Development Direction - The company is focused on expanding its detention capacity and has identified approximately 6,000 idle high-security beds that could generate over $300 million in additional annualized revenues if activated [15][30] - The company is pursuing partnerships with states to increase detention capacity and is exploring opportunities for acquiring or leasing third-party facilities [16][30] - The company aims to strengthen its capital structure by reducing debt and enhancing shareholder value through stock buybacks, having reduced total net debt by approximately $275 million in 2025 [17][28] Management's Comments on Operating Environment and Future Outlook - Management noted that the pace of new detention contracts has been slower than anticipated due to factors such as the government shutdown and the need for ICE to hire additional staff [12][14] - The company expects to capture additional growth opportunities and aims for approximately $3 billion in annual revenues in 2026, supported by new contracts and facility activations [27][29] Other Important Information - The company incurred a non-cash contingent litigation reserve of approximately $38 million related to a legal case involving claims for minimum wage payments for ICE detainees [20][21] - The company has received verbal support from banks for additional liquidity during the government shutdown [27] Q&A Session Summary Question: Impact of government shutdown on ICE population detentions - Management acknowledged that the rate of ICE population detentions has been slower than expected due to the government shutdown and the need for additional ICE staff [32] Question: Expectations for ICE app contract margins - Management indicated that while they do not discuss margins in detail, they have made pricing cuts to remain competitive and expect to manage costs effectively [34][35] Question: Staffing challenges with opening new facilities - Management confirmed that they are targeting the hiring of 1,000 to 1,500 additional staff, which has been costly and time-consuming [38] Question: Clarification on ICE app contract revenue expectations - Management confirmed that the $1 billion estimated value for the ICE app contract is over the two-year term, with participant counts expected to increase significantly [39][40] Question: Future growth opportunities in state partnerships - Management noted that there are several states looking for management services for idle or refurbished beds, with potential opportunities in the hundreds to possibly 1,000 beds per location [41] Question: Margin expectations for the ICE app program - Management stated that margins could exceed previous levels if participant counts materialize as expected, but it will take time to implement cost savings [48]

Financial Data and Key Metrics Changes - CoreCivic reported first quarter revenue of $488.6 million, exceeding expectations, with EBITDA of $81 million, both metrics showing meaningful increases from the fourth quarter of 2024 [9][10] - Facility utilization improved to 77% from 75.2% in the prior year quarter [8] - Net income was $0.23 per share and FFO per share was $0.45, both exceeding average analyst estimates by $0.10 per share [35] Business Line Data and Key Metrics Changes - Revenue from federal partners, primarily ICE and the U.S. Marshals Service, comprised 48% of total revenue, with ICE revenue increasing by 11% when excluding the Dilley facility [23][24] - Revenue from state partners in the Safety and Community segments increased by 5.2% compared to the prior year quarter, driven by higher per diem rates and occupancy [30][38] - The Community segment's revenue was flat year-over-year, but net operating income increased by 6% [33] Market Data and Key Metrics Changes - ICE's national detention population increased from approximately 39,000 to nearly 48,000 individuals during the quarter, with CoreCivic's share rising from about 10,000 to 12,000 detainees [25] - CoreCivic has nine idle facilities with over 13,400 available beds, indicating significant capacity to meet ICE's needs [45] Company Strategy and Development Direction - CoreCivic is focused on reactivating facilities and expanding capacity to meet increasing demand from ICE and state partners, with a capital expenditure increase of $25 million for facility activations [13][59] - The company is exploring additional opportunities for expansion and evaluating potential acquisitions to enhance its service offerings [46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operational improvements and the ability to respond to increased demand from government partners [32] - The company anticipates new contracts with ICE following budget reconciliation, which could lead to further activations of idle facilities [44] Other Important Information - CoreCivic's capital allocation strategy has contributed to increases in per share earnings through reductions in interest expense and share repurchases [37][40] - The company plans to spend $60 million to $65 million on maintenance capital expenditures during 2025, unchanged from prior guidance [45] Q&A Session Summary Question: Are there more letter agreements with ICE? - Management confirmed that they are not hiding any agreements and noted the intensity of ICE's need for beds, suggesting more agreements could be forthcoming [54][55] Question: How many more facilities could the additional $25 million CapEx support? - Management indicated that they are leaning forward on almost all idle facilities and that the total CapEx could be higher depending on the facilities activated [58][59] Question: What is the appetite for managing soft-sided facilities? - Management expressed strong interest in managing soft-sided facilities and highlighted their capability to respond quickly to such needs [61][62] Question: What revenues might be generated from increased transportation work for ICE? - Management stated that it is difficult to quantify at this stage but indicated that transportation needs are being analyzed in connection with existing contracts [70][71] Question: Any updates on the community side with BOP? - Management noted that the new BOP director is in the early stages of forming a leadership team, and they expect a push for increased capacity in the private sector for community beds [75][76]