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]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income attributable to GEO of approximately $19.6 million or $0.14 per diluted share on revenues of approximately $605 million, compared to net income of approximately $22.7 million or $0.14 per diluted share in Q1 2024 on revenues of approximately $606 million [25][26] - Adjusted EBITDA for Q1 2025 was approximately $100 million, down from approximately $118 million in the prior year's first quarter [25][26] - Operating expenses increased by approximately 3% year over year, reflecting higher labor costs and general administrative expenses [26][27] Business Line Data and Key Metrics Changes - Revenues from owned and leased secure service facilities increased by approximately 3% year over year, while revenues from electronic monitoring and supervision services declined by approximately 10% [25][26] - Combined revenues from owned and leased reentry centers, managed only facilities, and non-residential service contracts were largely unchanged compared to the prior year's first quarter [26] Market Data and Key Metrics Changes - Utilization at facilities under contract with ICE is currently at approximately 16,000 beds, the highest level in over five years, while ICE detention levels are estimated at about 48,000 beds nationwide [11][12] - The company has around 3,000 beds available under contract with the US Marshals Service and approximately 6,500 beds at idle facilities [11][12] Company Strategy and Development Direction - The company is focused on expanding its capabilities to assist the federal government with immigration enforcement priorities, including a $70 million investment to enhance detention capacity and electronic monitoring services [6][33] - The company has reorganized its corporate management structure to strengthen operational oversight in anticipation of expected growth [7][33] - The guidance for 2025 reflects a "tale of two halves," with the first half impacted by higher overhead and capital expenditures, while growth is expected to begin in the second half [8][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to meet the federal government's expanded immigration enforcement needs and anticipates significant growth opportunities in 2025 [6][34] - The company expects to see additional contract awards and increased utilization of idle facilities, with optimism for the second half of the year [12][46] Other Important Information - The company ended Q1 2025 with approximately $1.68 billion in total net debt and expects to reduce net debt by approximately $150 million to $175 million for the full year [21][30] - The company is exploring options for returning capital to shareholders in the future, contingent on achieving certain leverage levels [30][31] Q&A Session Summary Question: What caused the larger fall in operating income in the electronic monitoring segment? - Management indicated that the decline in profitability was due to a mix shift away from phones to GPS monitoring devices, impacting margins [40] Question: Is the $45 billion funding for ICE detention inclusive of ATD? - Management noted that the funding activity is focused on interior enforcement and that they expect greater utilization of electronic monitoring as the budget process unfolds [42][43] Question: What is the current status of ICE detainee numbers? - Management stated that the increase in detainees is due to the agency's focus on interior enforcement, and they are optimistic about the second half of the year [46][47] Question: What is the status of the Northlake contract? - Management clarified that capital investment for the Northlake facility is included in overall guidance and will be accretive over the contract timeline [70] Question: When might the company consider share repurchases? - Management indicated that share repurchases could be considered in the back half of 2025, depending on financial performance and debt reduction progress [60][68]