Summary of CoreCivic Investor Conference Company Overview - **Company Name**: CoreCivic - **Ticker Symbol**: CXW - **Founded**: 1983 - **Total Assets**: Approximately $2.9 billion - **Real Estate Assets**: Approximately $2.3 billion - **2024 Revenue**: Approximately $2 billion - **Adjusted EBITDA**: $330.8 million - **Market Capitalization**: Approximately $2.2 billion - **Facilities**: 70 correctional, detention, and reentry facilities in the U.S. with a total of 79,202 beds - **Revenue Sources**: 51% from federal government, 41% from state governments, and 8% from local governments and others [2][3][4] Business Segments 1. **Safety Segment**: - Largest segment with 44 facilities and 67,289 beds - Contributes approximately 92% of net operating income (NOI) [4] 2. **Community Segment**: - 21 residential reentry facilities (halfway houses) with 4,159 beds - Contributes about 5% of NOI [5] 3. **Property Segment**: - 5 facilities leased to state government agencies with 7,754 beds - Contributes about 3% of NOI [5] Market Position - CoreCivic is the largest owner of private correctional and detention facilities, managing 57% of all owned beds and 41% of privately managed beds [6] - The company manages 27% of total ICE detention populations and 13% of U.S. Marshals populations [6][7] Recent Developments - **COVID-19 Impact**: Occupancy rates dropped during the pandemic, with a recovery to 76.8% by Q2 2023 [8] - **ICE Detention Capacity**: The One Big Beautiful Bill Act approved $45 billion for ICE, aiming to increase detention beds from 50,000 to 100,000. CoreCivic currently has 58,000 to 60,000 beds available [10][11] - **Idle Facilities**: CoreCivic has 13,419 beds in idle facilities that can be activated to meet ICE's growing demands [11][15] Financial Performance - **EBITDA Potential**: By activating idle facilities, CoreCivic could generate an additional $200 million to $225 million in EBITDA [17] - **Contract Renewal Rate**: 97% over the past five years, indicating strong customer retention [18] - **Debt Management**: Since August 2020, CoreCivic has repaid $1.3 billion in debt, maintaining a leverage ratio of 2.3 times [19][20] - **Share Repurchase Program**: $500 million authorization with $237.9 million remaining as of June 30, 2025 [21] Industry Dynamics - The company is positioned to benefit from a shift towards interior enforcement by ICE, as border encounters decrease [22][23] - Concerns about alternative detention facilities (e.g., Guantanamo Bay) are viewed as less viable due to higher costs and operational challenges compared to CoreCivic's existing facilities [24][25] Conclusion - CoreCivic presents a compelling investment opportunity with strong government contracts, a solid financial position, and growth potential in the detention market as federal needs increase [27]