Yahoo Finance

• Revenue: $479.3 million for Q4 2024, a 2% reduction compared to the prior-year quarter. Full-year 2024 revenue was $2 billion.

• Adjusted EBITDA: $74.2 million for Q4 2024, down from $90 million in Q4 2023. Full-year adjusted EBITDA increased to $330.8 million from $311 million.

• Net Income: GAAP net income of $0.17 per share for Q4 2024, including a $0.01 per share gain on sale of real estate assets. Adjusted EPS was $0.16.

• Normalized FFO per Share: $0.39 for Q4 2024, exceeding analyst estimates by $0.05 per share.

• Occupancy Rate: 75.5% for Q4 2024, the highest since Q1 2020.

• Federal Revenue: Declined 12% in Q4 2024 compared to Q4 2023. Revenue from ICE declined 22%, but excluding South Texas, ICE revenue increased 5%.

• State Revenue: Increased 6.4% in Q4 2024 compared to Q4 2023, driven by higher per diem rates and new contracts with Wyoming and Montana.

• Local Revenue: Increased 26% in Q4 2024 compared to Q4 2023, due to new contracts with Hinds County, Mississippi, and Harris County, Texas.

• Operating Margin: 23.6% for safety and community facilities in Q4 2024, compared to 24.4% in the prior-year quarter.

• Debt Repayment: $95 million repaid in 2024, including $7.2 million in Q4.

• Share Repurchase: $68.5 million repurchased in 2024, including $9 million in December.

• Leverage Ratio: Net debt to adjusted EBITDA was 2.3 times as of December 31, 2024.

• 2025 Financial Guidance: Diluted EPS of $0.48 to $0.61 and FFO per share of $1.37 to $1.50.

• Warning! GuruFocus has detected 5 Warning Signs with CXW.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• CoreCivic Inc (NYSE:CXW) anticipates significant growth opportunities, particularly with federal partners such as ICE and the United States Marshal Service, due to recent policy changes.

• The company reported a strong occupancy rate of 75.5% for the fourth quarter, the highest since the start of the COVID-19 pandemic.

• CoreCivic Inc (NYSE:CXW) has submitted proposals for 28,000 beds to ICE, which could potentially generate $1.5 billion in revenue.

• The company has been proactive in preparing for potential new contracts by investing $40 million to $45 million in capital expenditures for facility readiness.

• CoreCivic Inc (NYSE:CXW) has improved staffing levels to nearly pre-pandemic levels, reducing reliance on temporary labor and enhancing operational efficiency.

Negative Points

• Revenue from federal partners, particularly ICE, declined by 12% in the fourth quarter compared to the previous year, primarily due to contract terminations.

• Adjusted EBITDA for the fourth quarter decreased to $74.2 million from $90 million in the prior-year quarter, impacted by contract terminations and lease expirations.

• The company faces uncertainty regarding the timing and structure of new contracts with ICE, which could affect financial projections.

• CoreCivic Inc (NYSE:CXW) anticipates start-up expenses for activating idle facilities, which could negatively impact financial guidance unless offset by new contracts.

• The company is exposed to potential risks from policy changes and funding decisions by the federal government, which could impact demand for detention facilities.