CoreCivic Reports Fourth Quarter and Full Year 2019 Financial Results

Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their analogous per share amounts, are measures distributed and presented on a basement of methodologies other than in suitability with generally supposed accounting beliefs (GAAP).  Please impute to a Supplemental Financial Information and compared note following a financial statements herein for offer contention and reconciliations of these measures to net income, a many directly allied GAAP measure.

Business Development Update

Acquisition of 28 Property, 445,000 square-foot Portfolio of GSA Leased Assets.  On Jan 6, 2020, we announced a acquisitions of a portfolio of 28 properties, 24 of that a counter-party contributed to a newly shaped partnership of a Company’s, for sum care of $83.2 million, incompatible transaction compared expenses.  All of a properties are leased to a sovereign supervision by a General Services Administration.  The 28-property portfolio is strategically located via a mid-south, complementing a Company’s existent genuine estate footprint, and any skill was built-to-suit for a sovereign tenant.  The portfolio normal skill age is 15 years and a portfolio’s weighted normal franchise tenure is 5.6 years.  The Company financed a merger with $7.7 million of cash, insincere debt of $52.2 million and a distribution of 1.3 million singular partnership units that are automobile after dual years into money or shares of a common stock.

Acquisition of Rehabilitation Services, Inc.  On Dec 7, 2019, we finished a merger of Rehabilitation Services, Inc., for $4.4 million, incompatible transaction compared expenses.  The Ghent Residential Reentry Center, a 36-bed residential reentry core in Norfolk, Virginia, and a James River Residential Reentry Center, an 84-bed residential reentry core in Newport News, Virginia, yield reentry services for residents underneath control of a Federal Bureau of Prisons (BOP).  The residential reentry comforts can also offer an additional 34 home capture clients on seductiveness of a BOP.

Update on Lansing Correctional Facility Development.  On Jan 24, 2018, we entered into a 20-year franchise agreement with a Kansas Department of Corrections for a 2,432-bed correctional trickery to be assembled in Lansing, Kansas.    We commenced construction of a new trickery in a initial entertain of 2018, and as of Dec 31, 2019, we had capitalized $137.7 million compared with a construction project.  In Dec 2019, a Lansing trickery began usurpation offenders into a 512-bed smallest confidence formidable forward of schedule, with a remaining 1,920-bed medium/maximum confidence formidable finished in Jan 2020, for a sum cost of approximately $155.0 million.  Construction of a trickery was 100% saved with deduction from a private placement. 

Update on New Management Contract with a State of Mississippi.  On Jan 8, 2020, we entered into a new supervision agreement with a Mississippi Department of Corrections (MDOC) to immediately residence adult to 375 of a State’s inmates during a Company’s 2,672-bed Tallahatchie County Correctional Facility in Tutwiler, Mississippi.  The agreement has an initial tenure of ninety days, that a MDOC might extend for adult to dual additional ninety-day terms.  As of Jan 12, 2020, a Tallahatchie trickery had supposed all 375 inmates from a State.  We are gratified to be means to support a State with their challenges, offer exemplifying how critically critical it is for supervision partners to have entrance to a genuine estate resources and compared use offerings.

Update on New Lease Agreement with a Commonwealth of Kentucky for a Southeast Kentucky Correctional Facility.  On Dec 9, 2019, we entered into a new franchise agreement with a Commonwealth of Kentucky Department of Corrections (KYDOC) to work a Company’s 656-bed Southeast Correctional Complex in Wheelwright, Kentucky.  The franchise agreement with a KYDOC is approaching to embark mid-2020 on a execution of certain collateral expenditures, estimated during $4.5 million to $5.0 million.  The franchise includes a ten-year bottom tenure with 5 two-year renovation options.  The normal annual franchise during a ten-year bottom tenure is approximately $4.1 million.  The Company will be obliged for repairs and maintenance, skill taxes and skill insurance, while all other aspects and costs of trickery operations will be a shortcoming of a KYDOC.

Financing Transactions

On Dec 18, 2019, we entered into a new $250.0 million Senior Secured Term Loan B that bears seductiveness during a rate of LIBOR and 4.50%, with a 1.00% LIBOR building (or, during a option, a bottom rate and 3.50%), and has a five-year majority with scheduled quarterly principal payments by Dec 2024.  The Term Loan B will be cumulative by a initial garnishment on certain specified genuine skill assets, representing a loan-to-value of no larger than 80%.  Terms of a Term Loan B generally assent prepayment yet penalty.  Proceeds from a distribution of a Term Loan B were used to partially comment a early emancipation of a $325.0 million 4.125% Senior Notes that were scheduled to mature in Apr 2020, and to compensate transaction fees and expenses.  The remaining change of a 4.125% Senior Notes were confident and liberated in Dec 2019 with borrowings underneath a revolving credit facility.

2020 Financial Guidance

Based on stream business conditions, a Company is providing a following financial superintendence for a initial entertain 2020 and a full year 2020:

Our 2020 superintendence reflects reduce function from ICE during many of a comforts compared with 2019, when southwest limit apprehensions had reached a top levels in over a decade.  Our 2020 superintendence also reflects aloft seductiveness shortcoming compared with a aforementioned financing transactions. 

During 2020, we pattern to deposit approximately $86.5 million to $92.0 million in collateral expenditures, consisting of approximately $21.0 million to $23.0 million in jail construction, essentially compared with a construction of a Lansing Correctional Facility in Lansing, Kansas, that was finished in Jan 2020; approximately $30.5 million to $31.0 million in upkeep collateral expenditures on genuine estate assets; $28.5 million to $30.5 million for collateral expenditures on other resources and information record and $6.5 million to $7.5 million for reside improvements and leasing commissions.  These estimates bar MA activity.

Supplemental Financial Information and Investor Presentations

We have done accessible on a website supplemental financial information and other information for a fourth entertain of 2019.  Interested parties might entrance this information by a website during http://ir.corecivic.com/ underneath “Financial Information” of a Investors section.  We do not commence any obligation, and dissent any duties to refurbish any of a information disclosed in this report. 

Management might accommodate with investors from time to time during a initial entertain of 2020.  Written materials used in a financier presentations will also be accessible on a website derivation on or about Feb 24, 2020.  Interested parties might entrance this information by a website during http://ir.corecivic.com/ underneath “Events Presentations” of a Investors section.

Conference Call, Webcast and Replay Information

We will horde a webcast contention call during 10:00 a.m. Central Time (11:00 a.m. Eastern Time) on Thursday, Feb 13, 2020, to plead a fourth entertain 2019 financial formula and 2020 outlook.  Interested parties might entrance this information by a website during http://ir.corecivic.com/ underneath “Events Presentations” of a Investors page.  The live promote can also be accessed by dialing 800-353-6461 in a U.S. and Canada, including a acknowledgment passcode 8097453.  The contention call will be archived on a website following a execution of a call.  In addition, there will be a telephonic replay accessible derivation during 1:00 p.m. executive time (2:00 p.m. eastern time) on Feb 13, 2020, by 1:00 p.m. executive time (2:00 p.m. eastern time) on Feb 21, 2020.  To entrance a telephonic replay, dial 888-203-1112 in a U.S. and Canada.  International callers might dial +1 719-457-0820 and enter passcode 8097453.

About CoreCivic

The Company is a diversified supervision solutions association with a scale and knowledge indispensable to solve tough supervision hurdles in flexible, cost-effective ways. We yield a extended operation of solutions to supervision partners that offer a open good by corrections and apprehension management, a flourishing network of residential reentry centers to assistance residence America’s recidivism crisis, and supervision genuine estate solutions. We are a publicly traded genuine estate investment trust (REIT) and a nation’s largest owners of partnership correctional, apprehension and residential reentry facilities. We also trust we are a largest private owners of genuine estate used by U.S. supervision agencies.  The Company has been a stretchable and constant partner for supervision for some-more than 35 years. Our employees are driven by a low clarity of service, high standards of professionalism and a shortcoming to assistance supervision improved a open good. Learn some-more during http://www.corecivic.com/.

Forward-Looking Statements

This press recover contains statements as to a beliefs and expectations of a outcome of destiny events that are “forward-looking” statements within a definition of Section 21E of a Securities Exchange Act of 1934, as amended, and a Private Securities Litigation Reform Act of 1995. These forward-looking statements are theme to risks and uncertainties that could means tangible formula to differ materially from a statements made. These include, yet are not singular to, a risks and uncertainties compared with: (i)  ubiquitous mercantile and marketplace conditions, including, yet not singular to, a impact bureaucratic budgets can have on a agreement renewals and renegotiations, per diem rates, and occupancy; (ii) fluctuations in a handling formula since of, among other things, changes in occupancy levels, competition, agreement renegotiations or terminations, increases in costs of operations, fluctuations in seductiveness rates and risks of operations; (iii) our ability to obtain and say correctional, detention, and residential reentry trickery supervision contracts since of reasons including, yet not singular to, sufficient bureaucratic appropriations, agreement compliance, disastrous publicity, and effects of invalid disturbances; (iv) changes in a privatization of a corrections and apprehension industry, a acceptance of a services, a timing of a opening of new comforts and a derivation of new supervision contracts (including a border and gait during that new contracts are utilized), as good as a ability to implement accessible beds; (v) changes in supervision policy, legislation and regulations that impact function of a private zone for corrections, detention, and residential reentry services, in general, or a business, in particular, including yet not singular to, a continued function of a South Texas Family Residential Center (STFRC) by ICE underneath terms of a stream contract, and a impact of any changes to immigration remodel and sentencing laws (Our association does not, underneath longstanding policy, run for or opposite policies or legislation that would establish a basement for, or generation of, an individual’s bonds or detention.); (vi) a ability to successfully brand and unqualified destiny acquisitions and a ability to successfully confederate a operations of finished acquisitions and comprehend projected earnings ensuing therefrom; (vii) increases in costs to rise or enhance genuine estate properties that surpass strange estimates, or a inability to finish such projects on news as a outcome of several factors, many of that are over a control, such as weather, labor conditions, cost inflation, and element shortages, ensuing in increasing construction costs; (viii) a ability to accommodate and say gift for taxation as a REIT; and (ix) a accessibility of debt and equity financing on terms that are auspicious to us, or during all. Other factors that could means handling and financial formula to differ are described in a filings we make from time to time with a Securities and Exchange Commission.

The Company takes no shortcoming for updating a information contained in this press recover following a date hereof to simulate events or resources occurring after a date hereof or a occurrence of amazing events or for any changes or modifications done to this press recover or a information contained herein by any third-parties, including, yet not singular to, any handle or internet services.

CORECIVIC, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

ASSETS   December 31, 
2019   Dec 31,
2018           Cash and money equivalents   $ 92,120     $ 52,802   Restricted money     26,973       21,335   Accounts receivable, net of stipend of $3,217 and $2,542, respectively     280,785       270,597   Prepaid waste and other stream resources     35,507       28,791   Total stream resources     435,385       373,525   Real estate and compared assets:         Property and equipment, net of amassed debasement of $1,510,117 and $1,516,664, respectively     2,700,107       2,830,589   Other genuine estate resources     238,637       247,223   Goodwill     50,537       48,169   Non-current deferred taxation resources     16,058       14,947   Other resources     350,907       141,207             Total resources   $   3,791,631     $ 3,655,660             LIABILITIES AND STOCKHOLDERS’ EQUITY                   Accounts payable and accrued waste   $   337,462     $ 352,275   Current apportionment of long-term debt, net       31,349       14,121   Total stream liabilities       368,811       366,396             Long-term debt, net       1,928,023       1,787,555   Deferred income       12,469       26,102   Other liabilities       105,579       60,548             Total liabilities       2,414,882       2,240,601             Commitments and contingencies                   Preferred batch ? $0.01 standard value; 50,000 shares authorized; nothing released and superb during Dec 31, 2019 and 2018, respectively       -       –   Common batch ? $0.01 standard value; 300,000 shares authorized; 119,096 and 118,674 shares released and superb during Dec 31, 2019 and 2018, respectively     1,191       1,187   Additional paid-in collateral       1,821,810       1,807,202   Accumulated necessity       (446,252 )     (393,330 )           Total stockholders’ equity       1,376,749       1,415,059             Total liabilities and stockholders’ equity   $   3,791,631     $ 3,655,660                    

CORECIVIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

  For a Three Months Ended
December 31,   For a Twelve Months Ended
December 31,     2019   2018   2019   2018                 REVENUES:               Safety   447,413       435,979         1,779,958       1,675,998   Community   31,145       27,190       123,265       101,841   Properties   19,224       19,002       77,307       57,899   Other   27       22       159       28       497,809       482,193       1,980,689       1,835,766                   EXPENSES:               Operating               Safety   332,415       316,748       1,304,121       1,222,418   Community   24,409       19,863       95,159       76,898   Properties   5,426       5,114       22,803       15,420   Other   273       76       686       514   Total handling waste   362,523       341,801       1,422,769       1,315,250   General and executive   32,231       29,271       127,078       106,865   Depreciation and amortization   36,804       40,387       144,572       156,501   Contingent care for merger of businesses   -       6,085       -       6,085   Asset impairments   -       –       4,706       1,580       431,558       417,544       1,699,125       1,586,281                   OPERATING INCOME   66,251       64,649       281,564       249,485                   OTHER (INCOME) EXPENSE:               Interest expense, net    21,328       22,145       84,401       80,753   Expenses compared with debt refinancing exchange   602       –        602       1,016   Other (income) shortcoming     450       117         (164 )     156       22,380       22,262         84,839       81,925                   INCOME BEFORE INCOME TAXES   43,871       42,387         196,725       167,560                   Income taxation shortcoming     (1,897 )     (1,148 )       (7,839 )     (8,353 )                                 NET INCOME $ 41,974     $ 41,239     $ 188,886     $ 159,207                                   BASIC EARNINGS PER SHARE $    0.35     $ 0.35     $  1.59     $ 1.34                                   DILUTED EARNINGS PER SHARE $    0.35     $ 0.35     $    1.59     $ 1.34                                   DIVIDENDS DECLARED PER SHARE $    0.44     $ 0.43     $    1.76     $ 1.72                                  

CORECIVIC, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
 (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EPS

  For a Three Months Ended 
December 31,   For a Twelve Months Ended 
December 31,   2019   2018   2019   2018                 Net income $   41,974   $ 41,239   $   188,886   $ 159,207 Special items:               Expenses compared with debt refinancing exchange   602     –     602     1,016 Charges compared with adoption of taxation remodel   -     –     -     1,024 Expenses compared with mergers and acquisitions   175     763     1,132     3,096 Start-up waste   -     –     9,480     – Contingent care for merger of businesses   -     6,085     -     6,085 Asset impairments   -     –     4,706     1,580 Adjusted net income $   42,751   $ 48,087   $   204,806   $ 172,008 Weighted normal common shares superb – simple   119,096     118,669     119,028     118,544 Effect of dilutive securities:               Stock options   -     73     22     111 Restricted stock-based awards   144     111     114     61 Weighted normal shares and insincere conversions – diluted   119,240     118,853     119,164     118,716 Adjusted Diluted Earnings Per Share $   0.36   $ 0.40   $   1.72   $ 1.45                        

CORECIVIC, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
 (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

CALCULATION OF FUNDS FROM OPERATIONS AND NORMALIZED FUNDS FROM OPERATIONS

  For a Three Months Ended
December 31,   For a Twelve Months Ended
December 31,   2019   2018   2019   2018                 Net income $   41,974   $ 41,239   $   188,886     $ 159,207 Depreciation and amortization of genuine estate resources   27,036     26,982     107,402       101,771 Impairment of genuine estate resources   -     –     4,428       1,580 Gain on sale of genuine estate resources   -     –     (287 )     – Funds From Operations $   69,010   $ 68,221   $   300,429     $ 262,558                 Expenses compared with debt refinancing exchange   602     –     602       1,016 Charges compared with adoption of taxation remodel   -     –     -       1,024 Expenses compared with mergers and acquisitions   175     763     1,132       3,096 Contingent care for merger of businesses   -     6,085     -       6,085 Start-up waste   -     –     9,480       – Goodwill and other impairments   -     –     278       – Normalized Funds From Operations $   69,787   $ 75,069   $   311,921     $ 273,779                 Funds From Operations Per Diluted Share $   0.58   $ 0.57   $   2.52     $ 2.21 Normalized Funds From Operations Per Diluted Share $   0.59   $ 0.63   $   2.62     $ 2.31                          

CORECIVIC, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
 (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

CALCULATION OF EBITDA AND ADJUSTED EBITDA

  For a Three Months Ended
December 31,   For a Twelve Months Ended
December 31,  
2019   2018
  2019   2018
                Net income $   41,974   $ 41,239     $   188,886   $ 159,207   Interest shortcoming   22,033     22,518       86,661     82,129   Depreciation and amortization   36,804     40,387       144,572     156,501   Income taxation shortcoming   1,897     1,148       7,839     8,353   EBITDA $   102,708   $ 105,292     $   427,958   $ 406,190   Expenses compared with debt refinancing exchange   602     –       602     1,016   Expenses compared with mergers and acquisitions   175     763       1,132     3,096   Contingent care for merger of businesses   -     6,085       -     6,085   Depreciation shortcoming compared with STFRC franchise   -     (4,147 )     -     (16,453 ) Interest shortcoming compared with STFRC franchise   -     (1,294 )     -     (5,562 ) Start-up waste   -     –       9,480     –   Asset impairments   -     –       4,706     1,580   Adjusted EBITDA $   103,485   $ 106,699     $   443,878   $ 395,952  

CORECIVIC, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
 (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

CALCULATION OF ADJUSTED NET INCOME, NORMALIZED FUNDS FROM OPERATIONS, EBITDA ADJUSTED EBITDA GUIDANCE

  For a Quarter Ending
March 31, 2020
  For a Year Ending
December 31, 2020
  Low End of
Guidance   High End of
Guidance   Low End of
Guidance   High End of
Guidance Net income attributable to common stockholders $ 27,585   $ 31,585   $ 160,088   $ 171,088 Non-controlling seductiveness   590     590     2,362     2,362 Net income $ 28,175   $ 32,175   $ 162,450   $ 173,450 Expenses compared with mergers and acquisitions   575     575     2,300     2,300 Deferred taxation shortcoming on assembled item   2,750     2,750     2,750     2,750 Adjusted net income $ 31,500   $ 35,500   $ 167,500   $ 178,500                         Net income $ 28,175   $ 32,175   $ 162,450   $ 173,450 Depreciation and amortization of genuine estate resources   27,700     27,700     111,000     111,500 Funds From Operations $ 55,875   $ 59,875   $ 273,450   $ 284,950 Expenses compared with mergers and acquisitions   575     575     2,300     2,300 Deferred taxation shortcoming on assembled item   2,750     2,750     2,750     2,750 Normalized Funds From Operations $ 59,200   $ 63,200   $ 278,500   $ 290,000 Diluted EPS $ 0.23   $ 0.27   $ 1.34   $ 1.43 Adjusted EPS $ 0.26   $ 0.29   $ 1.38   $ 1.47 FFO per diluted share $ 0.46   $ 0.50   $ 2.26   $ 2.36 Normalized FFO per diluted share $ 0.49   $ 0.53   $ 2.30   $ 2.40                         Net income $ 28,175   $ 32,175   $ 162,450   $ 173,450 Interest shortcoming   24,750     24,250     98,000     97,500 Depreciation and amortization   38,000     38,000     153,000     153,000 Income taxation shortcoming   1,750     1,250     9,000     8,500 EBITDA $ 92,675   $ 95,675   $ 422,450   $ 432,450 Expenses compared with mergers and acquisitions   575     575     2,300     2,300 Deferred taxation shortcoming on assembled item   2,750     2,750     2,750     2,750 Adjusted EBITDA $ 96,000   $ 99,000   $ 427,500   $ 437,500                        

NOTE TO SUPPLEMENTAL FINANCIAL INFORMATION

Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their analogous per share metrics are non-GAAP financial measures.  The Company believes that these measures are critical handling measures that addition contention and research of a Company’s formula of operations and are used to examination and consider handling opening of a Company and a properties and their supervision teams. The Company believes that it is useful to yield investors, lenders and confidence analysts disclosures of a formula of operations on a same basement that is used by management.  FFO, in particular, is a widely supposed non-GAAP supplemental bulk of REIT performance, grounded in a standards for FFO determined by a National Association of Real Estate Investment Trusts (NAREIT).

NAREIT defines FFO as net income computed in suitability with GAAP, incompatible gains (or losses) from sales of skill and surprising items, and debasement and amortization of genuine estate and spoil of depreciable genuine estate and after adjustments for unconsolidated partnerships and corner ventures distributed to simulate supports from operations on a same basis.  EBITDA, Adjusted EBITDA, and Normalized FFO are useful as supplemental measures of opening of a Company’s properties since such measures do not take into comment debasement and amortization, or with honour to EBITDA, a impact of a Company’s taxation supplies and financing strategies. Because a chronological cost accounting gathering used for genuine estate resources requires debasement (except on land), this accounting display assumes that a value of genuine estate resources diminishes during a turn rate over time.  Because of a singular structure, pattern and use of a Company’s properties, supervision believes that assessing opening of a Company’s properties yet a impact of debasement or amortization is useful.  However, before to a adoption of ASC 842 on Jan 1, 2019, a apportionment of a let payments for a STFRC was personal as debasement and seductiveness shortcoming for financial stating functions in suitability with Accounting Standards Codification 840-40-55, before Emerging Issues Task Force No. 97-10, “The Effect of Lessee Involvement in Asset Construction”.  Adjusted EBITDA enclosed such debasement and seductiveness shortcoming in sequence to some-more scrupulously simulate a money flows compared with this lease.  Upon adoption of ASC 842, all let payments compared with this franchise are personal as handling expenses.  The Company might make adjustments to FFO from time to time for certain other income and waste that it considers non-recurring, sparse or unusual, even yet such equipment might need money settlement, since such equipment do not simulate a required member of a ongoing operations of a Company.  Start-up waste paint a incremental handling waste incurred during a duration we activate idle correctional facilities.  Normalized FFO excludes a effects of such items.  The Company calculates Adjusted Net Income by adding to GAAP Net Income waste compared with a Company’s debt refinancing, MA activity, start-up expenses, and certain impairments and other charges that a Company believes are surprising or non-recurring to yield an choice bulk of comparing handling opening for a durations presented.  Even yet waste compared with mergers and acquisitions might be recurring, a bulk and timing vacillate formed on a timing and range of MA activity, and therefore, such expenses, that are not a required member of a ongoing operations of a Company, might not be allied from duration to period.

Other companies might calculate Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO differently than a Company does, or adjust for other items, and therefore comparability might be limited.  Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO and, where appropriate, their analogous per share measures are not measures of opening underneath GAAP, and should not be deliberate as an choice to money flows from handling activities, a bulk of liquidity or an choice to net income as indicators of a Company’s handling opening or any other bulk of opening subsequent in suitability with GAAP.  This information should be review in and with a Company’s combined financial statements and compared records enclosed in a filings with a Securities and Exchange Commission.

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