CoreCivic Reports First Quarter 2025 Financial Results
CoreCivic sta riattivando tre strutture precedentemente inattive in base ad accordi con ICE: il Dilley Immigration Processing Center con 2.400 posti letto, il Midwest Regional Reception Center con 1.033 posti letto e il California City Immigration Processing Center con 2.560 posti letto. Grazie alle solide prestazioni del primo trimestre e alle attività di riattivazione, CoreCivic ha rivisto al rialzo le previsioni per il 2025, ora prevedendo un utile netto tra 91,3 e 101,3 milioni di dollari e un EBITDA tra 331,0 e 339,0 milioni di dollari.
CoreCivic está reactivando tres instalaciones previamente inactivas bajo acuerdos con ICE: el Centro de Procesamiento de Inmigración de Dilley con 2.400 camas, el Centro Regional de Recepción del Medio Oeste con 1.033 camas y el Centro de Procesamiento de Inmigración de California City con 2.560 camas. Basándose en el sólido desempeño del primer trimestre y las actividades de reactivación, CoreCivic elevó sus previsiones para 2025, proyectando ahora un ingreso neto de entre 91,3 y 101,3 millones de dólares y un EBITDA de entre 331,0 y 339,0 millones de dólares.
CoreCivic는 ICE 계약에 따라 이전에 비활성화된 세 개의 시설을 재가동하고 있습니다: 2,400병상 규모의 딜리 이민 처리 센터, 1,033병상 규모의 중서부 지역 접수 센터, 그리고 2,560병상 규모의 캘리포니아 시티 이민 처리 센터입니다. 1분기 강력한 실적과 재가동 활동을 바탕으로 CoreCivic는 2025년 가이던스를 상향 조정하여 순이익을 9,130만 달러에서 1억 130만 달러 사이, EBITDA를 3억 3,310만 달러에서 3억 3,900만 달러 사이로 예상하고 있습니다.
CoreCivic réactive trois établissements précédemment inactifs dans le cadre d'accords avec ICE : le centre de traitement de l'immigration de Dilley de 2 400 lits, le centre régional d'accueil du Midwest de 1 033 lits et le centre de traitement de l'immigration de California City de 2 560 lits. Sur la base des solides performances du premier trimestre et des activités de réactivation, CoreCivic a relevé ses prévisions pour 2025, prévoyant désormais un résultat net compris entre 91,3 et 101,3 millions de dollars et un EBITDA entre 331,0 et 339,0 millions de dollars.
CoreCivic reaktiviert drei zuvor stillgelegte Einrichtungen im Rahmen von ICE-Vereinbarungen: das Dilley Immigration Processing Center mit 2.400 Betten, das Midwest Regional Reception Center mit 1.033 Betten und das California City Immigration Processing Center mit 2.560 Betten. Aufgrund der starken Leistung im ersten Quartal und der Reaktivierungsaktivitäten hat CoreCivic seine Prognose für 2025 angehoben und erwartet nun ein Nettoergebnis von 91,3 bis 101,3 Millionen US-Dollar sowie ein EBITDA von 331,0 bis 339,0 Millionen US-Dollar.
- Q1 occupancy increased to 77.0% from 75.2% year-over-year
- Reactivation of three idle facilities under ICE agreements, adding potential for 5,993 beds
- Raised 2025 full-year guidance significantly (net income guidance increased from $53.5-67.5M to $91.3-101.3M)
- Strong share repurchase program with 1.9M shares bought for $37.9M in Q1
- Healthy balance sheet with leverage at 2.5x net debt to trailing twelve month Adjusted EBITDA
- Revenue from ICE decreased to $133.2M from $153.8M in Q1 2024
- Additional capital expenditure requirements of $65-70M for facility activations
- Diluted EPS decreased from adjusted $0.25 in Q1 2024 to $0.23 in Q1 2025
- Adjusted EBITDA declined compared to Q1 2024 ($89.5M vs $81.0M)
Insights
CoreCivic reported strong Q1 results and nearly doubled its 2025 profit guidance, driven by rising detention facility occupancy and major new ICE contracts.
CoreCivic's Q1 2025 financial results reveal substantial operational momentum in the private detention sector. The company reported
The robust performance stems primarily from increased facility utilization, with Q1 occupancy reaching
The most substantial development is the company's reactivation of three previously idle detention facilities under agreements with U.S. Immigration and Customs Enforcement (ICE):
- The 2,400-bed Dilley Immigration Processing Center in Texas
- The 1,033-bed Midwest Regional Reception Center in Kansas
- The 2,560-bed California City Immigration Processing Center in California
These reactivations represent a major operational shift, with CoreCivic receiving initial populations at the Dilley facility ahead of schedule in early April.
The significance of these developments is clearly reflected in CoreCivic's dramatically increased 2025 guidance. The company now projects full-year net income of
CoreCivic's capital allocation strategy balances growth investments with shareholder returns. The company accelerated its share repurchase program in Q1, buying back 1.9 million shares for
The company maintains a conservative balance sheet with a leverage ratio of 2.5x (net debt to trailing twelve-month Adjusted EBITDA), providing financial flexibility for its growth initiatives. Management indicated that full financial benefits from facility reactivations will likely be more impactful to 2026 results, suggesting potential upside beyond the already improved 2025 outlook.
Increased Occupancy and New Contracts Propel Strong Financial Performance Raises 2025 Full Year Guidance
BRENTWOOD, Tenn. , May 07, 2025 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) (CoreCivic or the Company) announced today its first quarter 2025 financial results.
Financial Highlights – First Quarter 2025
- Total revenue of
$488.6 million - Net income of
$25.1 million - Diluted earnings per share of
$0.23 - FFO per diluted share of
$0.45 - EBITDA of
$81.0 million - Repurchased 1.9 million shares of our common stock at an aggregate cost of
$37.9 million
Damon T. Hininger, CoreCivic's Chief Executive Officer, commented, "2025 is off to a strong start for CoreCivic. First quarter occupancy in CoreCivic facilities reached
"CoreCivic anticipates additional contracting activity as 2025 progresses," Hininger continued. "Conversations continue to progress with multiple Federal and State partners regarding their capacity needs. In addition to the facilities we are currently activating, we are making preparatory investments in many of our other idle facilities so that they will be available quickly, as our partners' needs require and as their budgets allow. During the first quarter, we spent roughly
Patrick Swindle, CoreCivic's President and Chief Operating Officer, remarked, "We are well underway in re-activating three previously idled facilities. On March 5, 2025, we announced an amendment to the prior intergovernmental services agreement (IGSA) at the Dilley Immigration Processing Center in Dilley, Texas, to resume operations and care for up to 2,400 individuals at the facility. In early April - ahead of our initial plan due to strong pre-planning and rehiring - we began receiving an initial ICE population at this facility. We anticipate the full activation of Dilley to be completed in less than six months from contract commencement."
"We have also begun preliminary activation activities at the 1,033-bed Midwest Regional Reception Center in Leavenworth, Kansas, pursuant to a letter agreement signed March 7, 2025, and at the 2,560-bed California City Immigration Processing Center in California City, California, following a letter agreement signed April 1, 2025. These letter agreements provide initial funding to CoreCivic for activating these facilities while we work with ICE to negotiate and execute longer-term contracts."
Swindle continued, "CoreCivic's balance sheet remains strong, and we ended the quarter with leverage, measured as net debt to trailing twelve month Adjusted EBITDA, at 2.5x. We continue to execute our capital strategy, and we accelerated our stock repurchases, reflecting our confidence in our cash flow outlook. During the first quarter, we repurchased 1.9 million shares at an aggregate cost of
First Quarter 2025 Financial Results Compared With First Quarter 2024
Net income in the first quarter of 2025 was
The decrease in Adjusted Diluted EPS compared with the prior year resulted from the expiration of our lease with the California Department of Corrections and Rehabilitation (CDCR) at our California City facility on March 31, 2024, and the termination of our contract with ICE at the Dilley facility effective August 9, 2024. However, we began re-activating the Dilley facility during March 2025, and began re-activating the California City facility in April 2025. Collectively, the California City and Dilley facilities accounted for a
During the first quarter of 2025, revenue from ICE, our largest government partner, was
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first quarter of 2025 was
Funds From Operations (FFO) for the first quarter of 2025 was
Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share amounts, are measures calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles (GAAP). Please refer to the Supplemental Financial Information and the note following the financial statements herein for further discussion and reconciliations of these measures to net income, the most directly comparable GAAP measure.
Capital Strategy
Share Repurchases. Our Board of Directors previously approved a share repurchase program authorizing the Company to repurchase up to
As of March 31, 2025, we had
Contract Updates
Contract Modifications for U.S. Immigration and Customs Enforcement. On February 27, 2025, we announced contract modifications to existing USMS contracts at our 2,016-bed Northeast Ohio Correctional Center in Youngstown, Ohio, our 1,072-bed Nevada Southern Detention Center in Pahrump, Nevada, and our 1,600-bed Cimarron Correctional Facility in Cushing, Oklahoma to collectively add capacity for up to 784 ICE detainees. In addition, we obtained a contract modification to specify that ICE may use up to 258 beds at our 2,672-bed Tallahatchie County Correctional Facility in Mississippi.
Amended U.S. Immigration and Customs Enforcement Contract. On March 5, 2025, we announced that we had agreed under an amendment to an IGSA to resume operations and care for up to 2,400 individuals at the 2,400-bed Dilley Immigration Processing Center in Dilley, Texas. The amended IGSA expires in March 2030 and may be further extended through bilateral modification. We began receiving residents at this facility during the second quarter of 2025. Previously, after nearly ten years of operation, we received notification from ICE on June 10, 2024 of its intent to terminate funding of the IGSA for services at the Dilley facility effective August 9, 2024. We did not operate the Dilley facility from August 9, 2024 until the resumption of operations at the facility on March 5, 2025.
Letter Contracts with U.S. Immigration and Customs Enforcement. Effective March 7, 2025, we entered into a letter agreement with ICE to begin activation efforts at our 1,033-bed Midwest Regional Reception Center. The letter agreement authorizes initial funding up to
2025 Financial Guidance
Based on current business conditions, we are providing the following updated financial guidance for the full year 2025:
| Revised Guidance Full Year 2025 | Prior Guidance Full Year 2025 | |
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Compared with our prior 2025 annual guidance provided on February 10, 2025, our revised 2025 guidance reflects actual results for the first quarter, updated occupancy projections consistent with current trends, as well as our assumptions for the reactivation of the Dilley Immigration Processing Center.
Consistent with our past practice, our guidance does not include the impact of any new contract awards not previously announced, including potential long-term contracts at our Midwest Regional Reception Center and our California City Immigration Processing Center as we have not yet negotiated a per diem rate or a definitive quantity of beds to be utilized at either facility. However, we may execute new contracts during 2025, including, but not limited to, potential long-term contracts at the Midwest Regional Reception Center and our California Immigration Processing Center, and will revise guidance throughout the year if and when new contracts are signed. Although we can provide no assurance, based on modified immigration policies of the new administration, as well as newly enacted legislation pertaining to illegal immigrants requiring the utilization of detention for certain criminal violations, we expect new contracts to require the activation of one or more of our idle facilities. The activation of an idle facility generally requires four to six months to hire, train, and prepare the facility to accept residential populations, which, depending on contract structure, could result in additional expenses before we are able to realize additional revenue. To the extent any new contract requires the activation of an idle facility before we begin to recognize revenue, our guidance could be negatively impacted by start-up expenses until the revenue we generate offsets these expenses. Due to activation timing, full year benefits from idle facility activations are likely to be more impactful to 2026 results.
During 2025, we expect to invest
Supplemental Financial Information and Investor Presentations
We have made available on our website supplemental financial information and other data for the first quarter of 2025. Interested parties may access this information at http://ir.corecivic.com/ under “Financial Information” of the Investors section. We do not undertake any obligation and disclaim any duties to update any information disclosed in this report.
Management may meet with investors from time to time during the second quarter of 2025. Written materials used in the investor presentations will also be available on our website beginning on or about May 23, 2025. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Events & Presentations” of the Investors section.
Conference Call, Webcast and Replay Information
We will host a webcast conference call at 10:00 a.m. central time (11:00 a.m. eastern time) on Thursday, May 8, 2025, which will be accessible through the Company's website at www.corecivic.com under the “Events & Presentations” section of the "Investors" page.
To participate via telephone and join the call live, please register in advance herehttps://register-conf.media-server.com/register/BIf5a69bfc230a49c581a3a5b115f91c5d. Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique passcode.
About CoreCivic
CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and one of the largest operators of such facilities in the United States. We have been a flexible and dependable partner for government for more than 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.
Forward-Looking Statements
This press release contains statements as to our beliefs and expectations of the outcome of future events that are "forward-looking" statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) changes in government policy, legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services, in general, or our business, in particular, including, but not limited to, the continued utilization of our correctional and detention facilities by the federal government as a consequence of presidential executive orders, and the impact of any changes to immigration reform and sentencing laws (we do not, under longstanding policy, lobby for or against policies or legislation that would determine the basis for, or duration of, an individual’s incarceration or detention); (ii) our ability to obtain and maintain correctional, detention, and residential reentry facility management contracts because of reasons including, but not limited to, sufficient governmental appropriations, contract compliance, negative publicity and effects of inmate disturbances; (iii) changes in the privatization of the corrections and detention industry, the acceptance of our services, the timing of the opening of new facilities and the commencement of new management contracts (including the extent and pace at which new contracts are utilized), as well as our ability to utilize available beds; (iv) our ability to activate idle facilities in a timely manner in order to meet the expected growth in demand for our facilities and services from the federal government that may occur as a result of changes in policies and actions of the new presidential administration, and to realize projected returns resulting therefrom; (v) general economic and market conditions, including, but not limited to, the impact governmental budgets can have on our contract renewals and renegotiations, per diem rates, and occupancy; (vi) fluctuations in our operating results because of, among other things, changes in occupancy levels; competition; contract renegotiations or terminations; inflation and other increases in costs of operations, including a rise in labor costs; fluctuations in interest rates and risks of operations; (vii) government budget uncertainty, the impact of the debt ceiling and the potential for government shutdowns and changing budget priorities; (viii) our ability to successfully identify and consummate future development and acquisition opportunities and realize projected returns resulting therefrom; and (ix) the availability of debt and equity financing on terms that are favorable to us, or at all. Other factors that could cause operating and financial results to differ are described in the filings we make from time to time with the Securities and Exchange Commission.
We take no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services, except as may be required by law.
| CORECIVIC, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| March 31, | December 31, | |||||||
| ASSETS | 2025 | 2024 | ||||||
| Cash and cash equivalents | $ | 74,498 | $ | 107,487 | ||||
| Restricted cash | 13,426 | 14,623 | ||||||
| Accounts receivable, net of credit loss reserve of | 282,075 | 288,738 | ||||||
| Prepaid expenses and other current assets | 43,453 | 38,970 | ||||||
| Total current assets | 413,452 | 449,818 | ||||||
| Real estate and related assets: | ||||||||
| Property and equipment, net of accumulated depreciation of | 2,057,518 | 2,060,024 | ||||||
| Other real estate assets | 189,837 | 193,105 | ||||||
| Goodwill | 4,844 | 4,844 | ||||||
| Other assets | 336,795 | 224,100 | ||||||
| Total assets | $ | 3,002,446 | $ | 2,931,891 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Accounts payable and accrued expenses | $ | 253,656 | $ | 273,724 | ||||
| Current portion of long-term debt | 12,977 | 12,073 | ||||||
| Total current liabilities | 266,633 | 285,797 | ||||||
| Long-term debt, net | 969,885 | 973,073 | ||||||
| Deferred revenue | 11,648 | 12,399 | ||||||
| Non-current deferred tax liabilities | 94,608 | 89,207 | ||||||
| Other liabilities | 184,426 | 78,064 | ||||||
| Total liabilities | 1,527,200 | 1,438,540 | ||||||
| Commitments and contingencies | ||||||||
| Preferred stock – | — | — | ||||||
| Common stock – | 1,093 | 1,099 | ||||||
| Additional paid-in capital | 1,689,019 | 1,732,231 | ||||||
| Accumulated deficit | (214,866 | ) | (239,979 | ) | ||||
| Total stockholders' equity | 1,475,246 | 1,493,351 | ||||||
| Total liabilities and stockholders' equity | $ | 3,002,446 | $ | 2,931,891 | ||||
| CORECIVIC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | |||||||
| For the Three Months Ended | |||||||
| March 31, | |||||||
| 2025 | 2024 | ||||||
| REVENUE: | |||||||
| Safety | $ | 454,184 | $ | 457,746 | |||
| Community | 29,708 | 29,900 | |||||
| Properties | 4,642 | 13,039 | |||||
| Other | 93 | 1 | |||||
| 488,627 | 500,686 | ||||||
| EXPENSES: | |||||||
| Operating: | |||||||
| Safety | 347,983 | 350,098 | |||||
| Community | 23,613 | 24,144 | |||||
| Properties | 3,123 | 3,835 | |||||
| Other | 18 | 26 | |||||
| Total operating expenses | 374,737 | 378,103 | |||||
| General and administrative | 36,016 | 36,465 | |||||
| Depreciation and amortization | 30,518 | 31,730 | |||||
| 441,271 | 446,298 | ||||||
| OTHER INCOME (EXPENSE): | |||||||
| Interest expense, net | (15,231 | ) | (18,613 | ) | |||
| Expenses associated with debt repayments and refinancing transactions | - | (27,242 | ) | ||||
| Gain on sale of real estate assets, net | - | 568 | |||||
| Other expense | (35 | ) | (58 | ) | |||
| INCOME BEFORE INCOME TAXES | 32,090 | 9,043 | |||||
| Income tax benefit (expense) | (6,977 | ) | 500 | ||||
| NET INCOME | $ | 25,113 | $ | 9,543 | |||
| BASIC EARNINGS PER SHARE | $ | 0.23 | $ | 0.08 | |||
| DILUTED EARNINGS PER SHARE | $ | 0.23 | $ | 0.08 | |||
| 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 the Three Months Ended | ||||||
| March 31, | ||||||
| 2025 | 2024 | |||||
| Net income | $ | 25,113 | $ | 9,543 | ||
| Special items: | ||||||
| Expenses associated with debt repayments and refinancing transactions | - | 27,242 | ||||
| Gain on sale of real estate assets, net | - | (568 | ) | |||
| Income tax benefit for special items | - | (8,358 | ) | |||
| Adjusted net income | $ | 25,113 | $ | 27,859 | ||
| Weighted average common shares outstanding - basic | 109,489 | 112,306 | ||||
| Effect of dilutive securities: | ||||||
| Restricted stock-based awards | 969 | 1,181 | ||||
| Weighted average shares and assumed conversions - diluted | 110,458 | 113,487 | ||||
| Adjusted Diluted EPS | $ | 0.23 | $ | 0.25 | ||
| 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 the Three Months Ended | |||||||
| March 31, | |||||||
| 2025 | 2024 | ||||||
| Net income | $ | 25,113 | $ | 9,543 | |||
| Depreciation and amortization of real estate assets | 24,598 | 24,784 | |||||
| Gain on sale of real estate assets, net | - | (568 | ) | ||||
| Income tax expense for special items | - | 178 | |||||
| Funds From Operations | $ | 49,711 | $ | 33,937 | |||
| Expenses associated with debt repayments and refinancing transactions | - | 27,242 | |||||
| Income tax benefit for special items | - | (8,536 | ) | ||||
| Normalized Funds From Operations | $ | 49,711 | $ | 52,643 | |||
| Funds from Operations Per Diluted Share | $ | 0.45 | $ | 0.30 | |||
| Normalized Funds From Operations Per Diluted Share | $ | 0.45 | $ | 0.46 | |||
| CALCULATION OF EBITDA AND ADJUSTED EBITDA | ||||||
| For the Three Months Ended | ||||||
| March 31, | ||||||
| 2025 | 2024 | |||||
| Net income | $ | 25,113 | $ | 9,543 | ||
| Interest expense | 18,381 | 22,058 | ||||
| Depreciation and amortization | 30,518 | 31,730 | ||||
| Income tax expense (benefit) | 6,977 | (500 | ) | |||
| EBITDA | $ | 80,989 | $ | 62,831 | ||
| Expenses associated with debt repayments and refinancing transactions | - | 27,242 | ||||
| Gain on sale of real estate assets, net | - | (568 | ) | |||
| Adjusted EBITDA | $ | 80,989 | $ | 89,505 | ||
| CORECIVIC, INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | |||||
| GUIDANCE -- CALCULATION OF FUNDS FROM OPERATIONS AND EBITDA | |||||
| Revised Guidance Range For the Full Year Ending | |||||
| December 31, 2025 | |||||
| Low End of Guidance | High End of Guidance | ||||
| Net income | $ | 91,250 | $ | 101,250 | |
| Depreciation and amortization of real estate assets | 98,250 | 99,250 | |||
| Funds From Operations | $ | 189,500 | $ | 200,500 | |
| Diluted EPS | $ | 0.83 | $ | 0.92 | |
| FFO per diluted share | $ | 1.72 | $ | 1.82 | |
| Net income | $ | 91,250 | $ | 101,250 | |
| Interest expense | 73,750 | 72,750 | |||
| Depreciation and amortization | 128,750 | 128,750 | |||
| Income tax expense | 37,250 | 36,250 | |||
| EBITDA | $ | 331,000 | $ | 339,000 | |
NOTE TO SUPPLEMENTAL FINANCIAL INFORMATION
Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share metrics are non-GAAP financial measures. The Company believes that these measures are important operating measures that supplement discussion and analysis of the Company's results of operations and are used to review and assess operating performance of the Company and its properties and their management teams. The Company believes that it is useful to provide investors, security analysts, and other interested parties disclosures of its results of operations on the same basis that is used by management.
FFO, in particular, is a widely accepted non-GAAP supplemental measure of performance of real estate companies, grounded in the standards for FFO established by the National Association of Real Estate Investment Trusts (NAREIT). NAREIT defines FFO as net income computed in accordance with GAAP, excluding gains (or losses) from sales of property and extraordinary items, plus depreciation and amortization of real estate and impairment of depreciable real estate and after adjustments for unconsolidated partnerships and joint ventures calculated to reflect funds from operations on the same basis. As a company with extensive real estate holdings, we believe FFO and FFO per share are important supplemental measures of our operating performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs and other real estate operating companies, many of which present FFO and FFO per share when reporting results. EBITDA, Adjusted EBITDA, and FFO are useful as supplemental measures of performance of the Company's properties because such measures do not take into account depreciation and amortization, or with respect to EBITDA, the impact of the Company's tax provisions and financing strategies. Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), this accounting presentation assumes that the value of real estate assets diminishes at a level rate over time. Because of the unique structure, design and use of the Company's properties, management believes that assessing performance of the Company's properties without the impact of depreciation or amortization is useful. The Company may make adjustments to FFO from time to time for certain other income and expenses that it considers non-recurring, infrequent or unusual, even though such items may require cash settlement, because such items do not reflect a necessary or ordinary component of the ongoing operations of the Company. Normalized FFO excludes the effects of such items. The Company calculates Adjusted Net Income by adding to GAAP Net Income expenses associated with the Company’s debt repayments and refinancing transactions, and certain impairments and other charges that the Company believes are unusual or non-recurring to provide an alternative measure of comparing operating performance for the periods presented.
Other companies may calculate Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO differently than the Company does, or adjust for other items, and therefore comparability may be limited. Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO and, where appropriate, their corresponding per share measures are not measures of performance under GAAP, and should not be considered as an alternative to cash flows from operating activities, a measure of liquidity or an alternative to net income as indicators of the Company's operating performance or any other measure of performance derived in accordance with GAAP.This data should be read in conjunction with the Company's consolidated financial statements and related notes included in its filings with the Securities and Exchange Commission.
| Contact: | Investors: Mike Grant - Managing Director, Investor Relations - (615) 263-6957 Financial Media: David Gutierrez, Dresner Corporate Services - (312) 780-7204 |
FAQ
What were CoreCivic's (CXW) key financial results for Q1 2025?
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