CoreCivic(US:CXW)2025-08-07 16:00Financial Data and Key Metrics Changes - Total revenue increased by 9.8% from 2024 to 2025, with adjusted EBITDA rising to $103.3 million, up $19.5 million or 23.2% from the prior year quarter [11][42] - GAAP EPS for 2025 was $0.35, while adjusted EPS increased to $0.36, up 80% from $0.20 in 2024 [41][46] - Normalized FFO per share was $0.59, an increase of 40.5% from $0.42 in the prior year quarter [41][46] Business Line Data and Key Metrics Changes - Revenue from federal partners, primarily ICE and the U.S. Marshals Service, increased by 11% in 2025 compared to the prior year quarter [28][30] - Revenue from ICE specifically rose by $25.9 million or 17%, while revenue from the U.S. Marshals Service increased by $2.7 million or 3% [29][30] - Revenue from state partners increased by $9.9 million or 5%, driven by new contracts with the State of Montana [30] Market Data and Key Metrics Changes - Nationwide ICE detention populations reached a record high of 57,861 in June 2025, with a 28% increase in populations under the company's care [8][10] - Year-over-year state populations increased by approximately 3.5%, primarily due to new contracts with the State of Montana [10] Company Strategy and Development Direction - The company is focused on capitalizing on government funding initiatives, particularly the One Big Beautiful Bill Act, which appropriates $75 billion for immigration enforcement and detention capacity [9][18] - The company is in advanced negotiations to activate additional idle facilities and has begun discussions for a fifth idle facility [39][49] - The company aims to meet the increasing demand for detention capacity driven by federal funding and operational needs [22][25] Management's Comments on Operating Environment and Future Outlook - Management noted an unprecedented environment with rising federal detention populations and a continuing need for their services [7][8] - The company expects increased contracting activity and demand for detention solutions due to the passage of the One Big Beautiful Bill Act [22][23] - Management expressed optimism about securing additional contracts and activating idle facilities, especially with historic funding levels now available [49][50] Other Important Information - The company repurchased 2 million shares at a cost of $43.2 million during the second quarter, increasing total repurchases for the year to 3.9 million shares [11][45] - The acquisition of the Farmville Detention Center for $67 million was completed on July 1, 2025, which is expected to be accretive to earnings [11][46] Q&A Session Summary Question: Can you discuss the impact of alternative solutions like soft-sided facilities on your business? - Management indicated that the intensity of contracting activity has increased following the passage of the One Big Beautiful Bill Act, and they are actively engaged in discussions with ICE regarding various facility solutions [58][60] Question: How many people are currently in the non-detained docket? - Management highlighted that there are approximately 7.5 million individuals in immigration proceedings, with a focus on deportations [61][62] Question: Is the company interested in the ISAP contract renewal? - Management stated that detention remains a priority for ICE, and they are prepared to engage in opportunities related to the ISAP contract [74]