CoreCivic(CXW)2025-02-12 00:54Financial Data and Key Metrics Changes - CoreCivic generated revenue of 74.2 million, down from 330.8 million from 0.07 per share, with adjusted EPS of 0.06 [56] Business Line Data and Key Metrics Changes - Federal revenue, primarily from ICE and the US Marshal Service, comprised nearly half of CoreCivic's total revenue in 2024, with a 12% decline in Q4 2024 compared to the same quarter last year [34] - Revenue from ICE decreased by 22% in Q4 2024, but increased by 5% when excluding the South Texas Family Residential Center [34] - Revenue from state partners and the Safety and Community segments grew by 6.4% year-over-year, driven by higher occupancy and new contracts [38][42] Market Data and Key Metrics Changes - ICE's usage of detention beds was between 38,000 to 40,000 in Q4 2024, slightly up from the previous quarter [36] - The most recent ICE detention total was 39,163 as of January 25, 2025, indicating stable demand [36] - Local revenue in Safety and Community segments increased by 26%, reflecting new management contracts [42][60] Company Strategy and Development Direction - CoreCivic anticipates significant growth opportunities, particularly from federal partners like ICE and the US Marshal Service, due to policy changes under the new administration [13][52] - The company is preparing for potential new contracts and activations of idle facilities, with proactive capital improvements and staffing readiness [53][68] - CoreCivic aims to maintain strong operational foundations while preparing for increased demand and potential new contracts [54][74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for detention capacity, estimating a need for 150,000 to 200,000 beds due to new legislation and enforcement operations [88][90] - The company is well-positioned to meet the needs of its partners, with a focus on humane and cost-effective facilities [98][102] - Management highlighted the importance of maintaining strong staffing levels and operational performance as demand increases [46][51] Other Important Information - CoreCivic repaid 0.48 to 1.37 to $1.50 in 2025, with guidance reflecting anticipated increases in federal populations [66][75] Q&A Session Summary Question: What total capacity does ICE need with current actions? - Management indicated a need for about 100,000 beds for enforcement operations, with additional requirements from the Lincoln Riley Act potentially increasing this to 150,000 to 200,000 beds [88][90] Question: Are there alternatives to the South Texas facility for family detention? - Management confirmed discussions with ICE about alternatives, including the Karnes facility, and emphasized ongoing communication with partners [116]