CoreCivic Reports First Quarter 2026 Financial Results
Rhea-AI Summary
CoreCivic (NYSE: CXW) reported Q1 2026 results with revenue $614.7M (+25.8%), net income $37.9M (+51.0%) and diluted EPS $0.38 (+65.2%). Adjusted EBITDA was $110.1M (+36.0%) and normalized FFO per share was $0.65 (+44.4%). The company completed the Clinical Solutions Pharmacy acquisition and obtained a $100M incremental term loan.
Management raised full‑year 2026 guidance reflecting CSP and facility activations, while noting a recent temporary decline in nationwide ICE populations and ongoing activations of idle facilities.
Positive
- Total revenue $614.7M in Q1 2026, up 25.8% year‑over‑year
- Adjusted EBITDA $110.1M in Q1 2026, up 36.0% year‑over‑year
- Acquisition of Clinical Solutions Pharmacy for ~$148.0M expands cash flows
- Repurchased 2.3M shares for $44.7M; $255.8M remaining authorization
- Incremental $100M term loan obtained to bolster liquidity
Negative
- Recent decrease in nationwide ICE populations noted versus prior guidance
- Higher interest expense from increased average debt balance
- General and administrative expenses increased, partially offsetting margins
- Activation start‑up costs may reduce near‑term results until facilities stabilize
Key Figures
Market Reality Check
Peers on Argus
CXW is down 3.62% while key peers show mixed moves: GEO -1.55%, ADT -1.61%, MSA -0.76%, BCO -0.26%, and BRC +1.03%, pointing to a stock-specific reaction rather than a uniform sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 11 | Q4/FY 2025 earnings | Positive | -3.5% | Strong Q4 and 2025 results with higher revenue and initial 2026 guidance. |
| Nov 05 | Q3 2025 earnings | Negative | -9.9% | Q3 growth but full-year 2025 guidance revised lower on start-up impacts. |
| Aug 06 | Q2 2025 earnings | Positive | +2.0% | Strong Q2 growth from ICE demand and raised full-year 2025 guidance. |
| May 07 | Q1 2025 earnings | Positive | -2.6% | Strong Q1 results and higher 2025 guidance on facility reactivations. |
| Feb 10 | Q4/FY 2024 earnings | Positive | -4.3% | Strong Q4 and 2024 results with higher occupancy and 2025 outlook. |
Earnings releases have often been followed by negative price reactions, even when results and guidance were described as strong or raised.
Over the past five earnings cycles, CoreCivic has repeatedly highlighted revenue growth, higher occupancy, and incremental ICE-related demand, alongside active share repurchases and facility acquisitions. Guidance has progressively increased from 2025 into 2026, including higher net income and EBITDA ranges tied to facility activations and the Farmville acquisition. Despite this, three of the last five earnings events saw shares decline the next day, indicating a tendency for cautious or profit-taking reactions after results.
Historical Comparison
In the last 5 earnings releases, CXW moved on average -3.63% the next day. Today’s -3.62% reaction closely mirrors that typical post-earnings pattern.
Earnings updates show a progression from 2024 into 2025–2026 marked by rising revenue, increasing occupancy, expanded ICE contracts, facility reactivations, and steadily higher net income and EBITDA guidance.
Market Pulse Summary
This announcement highlights strong Q1 performance, with revenue of $614.7 million, net income of $37.9 million, and Adjusted EBITDA of $110.1 million, supported by facility activations and higher ICE and state revenue. The company completed a $148.0 million acquisition of Clinical Solutions Pharmacy and modestly raised 2026 guidance across net income, EPS, FFO and Adjusted EBITDA. Investors may watch occupancy trends, ICE population levels, integration of CSP, and execution on capital deployment, including share repurchases and facility investments.
Key Terms
adjusted ebitda financial
funds from operations (ffo) financial
normalized ffo financial
earn-out financial
special use permit (sup) regulatory
incremental term loan financial
rule 10b5-1 trading plan regulatory
rsu vesting financial
AI-generated analysis. Not financial advice.
Strong Financial Performance Driven by Facility Activations
Announces Acquisition of Clinical Solutions Pharmacy
Increases 2026 Full Year Guidance
BRENTWOOD, Tenn., May 06, 2026 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) (CoreCivic or the Company) announced today its first quarter 2026 financial results.
Financial Highlights – First Quarter 2026
| For the Three Months Ended March 31, 2026 | % Increase from Prior Year Quarter | ||
| • Total revenue | |||
| • Net Income | |||
| • Diluted EPS | |||
| • Adjusted Diluted EPS | |||
| • Normalized FFO per diluted share | |||
| • Adjusted EBITDA | |||
| • Repurchased 2.3 million shares of our common stock at an aggregate cost of | |||
Patrick Swindle, CoreCivic's President and Chief Executive Officer, commented, "Our strong first quarter financial results were driven by the activation of four previously idled facilities since the first quarter of 2025. We anticipate increased demand from our federal, state, and local government partners in the second half of the year after a recent downturn due to enforcement redeployments and overall strategy adjustments within the Department of Homeland Security (DHS). We are well-positioned to meet demand given our readily available capacity, in both existing and idle facilities."
"Consistent with CoreCivic's strategy of allocating capital to high-return opportunities, subsequent to quarter-end we acquired Clinical Solutions Pharmacy (CSP), one of the largest providers of mail order pharmacy services to correctional facilities in the United States. This acquisition provides diversification of our cash flows in a complementary business and a growing market, and we are excited about the opportunities that lie ahead for CSP."
Swindle continued, "Our balance sheet remains strong, supported by continued execution of our capital strategy. We ended the quarter with leverage, measured as net debt to Adjusted EBITDA, at 2.8x for the trailing twelve months. With the durability of our earnings and growth outlook, we were pleased to fortify our balance sheet with a
First Quarter 2026 Financial Results Compared With First Quarter 2025
Net income in the first quarter of 2026 was
The increase in Diluted EPS and Adjusted Diluted EPS compared with the prior year quarter resulted from the resumption of operations at the 2,400-bed Dilley Immigration Processing Center (Dilley Facility) in the first quarter of 2025, activations of previously idle facilities resulting from new contract awards at our 600-bed West Tennessee Detention Facility, our 2,560-bed California City Detention Facility, and our 2,160-bed Diamondback Correctional Facility, higher federal and state populations, and the acquisition of the Farmville Detention Center on July 1, 2025. Funding for the Dilley Facility was previously terminated effective August 9, 2024, and the facility remained idle until its reactivation effective March 5, 2025. Occupancy levels in our Safety and Community segments combined increased to
Per share results were also favorably impacted by an increase of
Management revenue from U.S. Immigration & Customs Enforcement (ICE), our largest government partner, grew
The facility operating margin in our Safety and Community segments increased to
Earnings before interest, taxes, depreciation and amortization (EBITDA) was
Funds From Operations (FFO) for the first quarter of 2026 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. In 2022, our Board of Directors (BOD) approved a share repurchase program authorizing the Company to repurchase up to
As of March 31, 2026, we had
Incremental Term Loan. Subsequent to quarter-end, on April 10, 2026, we amended our Bank Credit Facility to, among other things, obtain an Incremental Term Loan in the amount of
Acquisition of Clinical Solutions Pharmacy
Subsequent to quarter-end, on April 1, 2026, we completed the acquisition of Clinical Solutions Pharmacy (CSP), one of the largest providers of mail order pharmacy services to correctional facilities in the United States. With correctional populations aging and presenting more complex, chronic medical needs, CSP's exclusive focus on the corrections market uniquely positions it to support government agencies seeking reliable, clinically advanced pharmacy solutions. CSP was founded in 2004 and has grown its footprint to serve over 600 correctional facilities, including CoreCivic, across 28 states. CSP operates a centralized distribution center based in Franklin, TN, and has nearly 300 employees.
The initial purchase price of approximately
Other Business Developments
Midwest Regional Reception Center. On March 11, 2026, we received approval for a Special Use Permit (SUP) at our 1,033-bed Midwest Regional Reception Center in Leavenworth, Kansas. The facility has been undergoing reactivation since a new contract with ICE was awarded in the third quarter of 2025, but experienced a temporary delay in the intake process as we worked through the legal challenges and the SUP approval process. Upon receiving the SUP, we began accepting detainees on March 12, 2026, and as of March 31, 2026, we cared for 94 individuals at the facility. Taking into account start-up activities and the phased commencement of intake operations as previously disclosed, we expect this facility to contribute approximately
Other Facility Activations. During the first quarter of 2026, we continued receiving additional detainee populations under new management contracts with ICE at our 2,560-bed California City Detention Facility and at our 2,160-bed Diamondback Correctional Facility, and as of March 31, 2026, we cared for 1,817 and 735 individuals, respectively, at these facilities.
2026 Financial Guidance
Based on current business conditions, we are providing the following updated financial guidance for the full year 2026:
| Revised Guidance Full Year 2026 | Prior Guidance Full Year 2026 | |
| • Net income | ||
| • Adjusted Net Income | ||
| • Diluted EPS | ||
| • Adjusted Diluted EPS | ||
| • FFO per diluted share | ||
| • Normalized FFO per diluted share | ||
| • EBITDA | ||
| • Adjusted EBITDA | ||
Our guidance has been updated to include the acquisition of CSP and activation of the Midwest Regional Reception Center, which successfully obtained an SUP and began receiving detainee populations in March 2026. Our guidance has also been updated to reflect a recent decrease in nationwide ICE populations compared with our prior guidance, due to enforcement redeployments and overall strategy adjustments within DHS, which we believe is temporary.
Consistent with our past practice, our guidance does not include the impact of any new contract awards not previously announced, or the activation of any of our remaining five idle correctional and detention facilities. Our guidance also does not include any additional acquisitions or dispositions, including the impact on earnings, such as pricing adjustments, if any, that could result from any dispositions. Our guidance does not contemplate any significant changes in how the federal government, including ICE, elects to use our detention capacity.
The activation of an idle facility generally requires three to six months to hire, train, and prepare the facility to accept residential populations, which, depending on contract structure, can 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, our guidance will likely be negatively impacted by these start-up expenses until the revenue we generate offsets these expenses.
During 2026, 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 2026. Interested parties may access this information through our website 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 of the information disclosed in this report.
Management may meet with investors from time to time during the second quarter of 2026. Written materials used in the investor presentations will also be available on our website beginning on or about May 25, 2026. 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 7, 2026, 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 here https://register-conf.media-server.com/register/BI100ac825f20b4333aeddd3f8e1c0fdff. 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, changes in how the federal government, including ICE, elects to use our detention capacity or otherwise procures alternative detention capacity, 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 successfully activate idle facilities in a timely manner in order to meet the growth in demand for our facilities and services from the federal government that has occurred as a result of changes in policies and actions of the current 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 debt ceilings and government shutdowns, including partial shutdowns, and changing budget priorities; (viii) our ability to successfully identify and consummate future development and acquisition opportunities, integrate their operations, 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) | ||||||||
| ASSETS | March 31, 2026 | December 31, 2025 | ||||||
| Cash and cash equivalents | $ | 209,686 | $ | 97,929 | ||||
| Restricted cash | 14,641 | 14,517 | ||||||
| Accounts receivable, net of credit loss reserve of | 479,800 | 446,224 | ||||||
| Prepaid expenses and other current assets | 36,857 | 49,904 | ||||||
| Assets held for sale | 2,513 | 2,513 | ||||||
| Total current assets | 743,497 | 611,087 | ||||||
| Real estate and related assets: | ||||||||
| Property and equipment, net of accumulated depreciation of | 2,122,430 | 2,132,206 | ||||||
| Other real estate assets | 180,148 | 182,479 | ||||||
| Goodwill | 8,551 | 8,551 | ||||||
| Other assets | 313,369 | 322,420 | ||||||
| Total assets | $ | 3,367,995 | $ | 3,256,743 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Accounts payable and accrued expenses | $ | 288,362 | $ | 353,173 | ||||
| Current portion of long-term debt | 16,611 | 15,701 | ||||||
| Total current liabilities | 304,973 | 368,874 | ||||||
| Long-term debt, net | 1,380,955 | 1,205,037 | ||||||
| Deferred revenue | 7,812 | 8,719 | ||||||
| Non-current deferred tax liabilities | 111,297 | 98,364 | ||||||
| Other liabilities | 167,348 | 170,500 | ||||||
| Total liabilities | 1,972,385 | 1,851,494 | ||||||
| Commitments and contingencies | ||||||||
| Preferred stock – | — | — | ||||||
| Common stock – | 989 | 1,001 | ||||||
| Additional paid-in capital | 1,480,181 | 1,527,724 | ||||||
| Accumulated deficit | (85,560 | ) | (123,476 | ) | ||||
| Total stockholders' equity | 1,395,610 | 1,405,249 | ||||||
| Total liabilities and stockholders' equity | $ | 3,367,995 | $ | 3,256,743 | ||||
| CORECIVIC, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| REVENUE: | ||||||||
| Safety | $ | 577,947 | $ | 454,184 | ||||
| Community | 32,080 | 29,708 | ||||||
| Properties | 4,702 | 4,642 | ||||||
| Other | — | 93 | ||||||
| 614,729 | 488,627 | |||||||
| EXPENSES: | ||||||||
| Operating: | ||||||||
| Safety | 441,255 | 347,983 | ||||||
| Community | 24,124 | 23,613 | ||||||
| Properties | 2,319 | 3,123 | ||||||
| Other | 21 | 18 | ||||||
| Total operating expenses | 467,719 | 374,737 | ||||||
| General and administrative | 43,676 | 36,016 | ||||||
| Depreciation and amortization | 33,335 | 30,518 | ||||||
| 544,730 | 441,271 | |||||||
| OTHER INCOME (EXPENSE): | ||||||||
| Interest expense, net | (17,681 | ) | (15,231 | ) | ||||
| Other expense | (8 | ) | (35 | ) | ||||
| INCOME BEFORE INCOME TAXES | 52,310 | 32,090 | ||||||
| Income tax expense | (14,394 | ) | (6,977 | ) | ||||
| NET INCOME | $ | 37,916 | $ | 25,113 | ||||
| BASIC EARNINGS PER SHARE | $ | 0.38 | $ | 0.23 | ||||
| DILUTED EARNINGS PER SHARE | $ | 0.38 | $ | 0.23 | ||||
| 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, | ||||||||
| 2026 | 2025 | |||||||
| Net income | $ | 37,916 | $ | 25,113 | ||||
| Special items: | ||||||||
| Expenses associated with mergers and acquisitions | 2,424 | — | ||||||
| Income tax benefit for special items | (679 | ) | — | |||||
| Adjusted net income | $ | 39,661 | $ | 25,113 | ||||
| Weighted average common shares outstanding - basic | ||||||||
| Effect of dilutive securities: | 98,720 | 109,489 | ||||||
| Restricted stock-based awards | 606 | 969 | ||||||
| Weighted average shares and assumed conversions - diluted | 99,326 | 110,458 | ||||||
| Adjusted Diluted EPS | $ | 0.40 | $ | 0.23 | ||||
| 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, | ||||||||
| 2026 | 2025 | |||||||
| Net income | $ | 37,916 | $ | 25,113 | ||||
| Depreciation and amortization of real estate assets | 25,394 | 24,598 | ||||||
| Funds From Operations | $ | 63,310 | $ | 49,711 | ||||
| Expenses associated with mergers and acquisitions | 2,424 | — | ||||||
| Income tax benefit for special items | (679 | ) | — | |||||
| Normalized Funds From Operations | $ | 65,055 | $ | 49,711 | ||||
| Funds from Operations Per Diluted Share | $ | 0.64 | $ | 0.45 | ||||
| Normalized Funds From Operations Per Diluted Share | $ | 0.65 | $ | 0.45 | ||||
| CORECIVIC, INC. AND SUBSIDIARIES | ||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| CALCULATION OF EBITDA AND ADJUSTED EBITDA | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net income | $ | 37,916 | $ | 25,113 | ||||
| Interest expense | 22,042 | 18,381 | ||||||
| Depreciation and amortization | 33,335 | 30,518 | ||||||
| Income tax expense | 14,394 | 6,977 | ||||||
| EBITDA | $ | 107,687 | $ | 80,989 | ||||
| Expenses associated with mergers and acquisitions | 2,424 | — | ||||||
| Adjusted EBITDA | $ | 110,111 | $ | 80,989 | ||||
| CORECIVIC, INC. AND SUBSIDIARIES | ||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| GUIDANCE -- CALCULATION OF ADJUSTED NET INCOME, FUNDS FROM OPERATIONS, NORMALIZED FUNDS FROM OPERATIONS, EBITDA, AND NORMALIZED EBITDA | ||||||||
| Guidance Range | ||||||||
| For the Year Ending | ||||||||
| December 31, 2026 | ||||||||
| Low End of | High End of | |||||||
| Guidance | Guidance | |||||||
| Net income | $ | 147,755 | $ | 157,755 | ||||
| Expenses associated with mergers and acquisitions | 2,424 | 2,424 | ||||||
| Income tax benefit for special items | (679 | ) | (679 | ) | ||||
| Adjusted net income | $ | 149,500 | $ | 159,500 | ||||
| Net income | $ | 147,755 | $ | 157,755 | ||||
| Depreciation and amortization of real estate assets | 105,500 | 105,000 | ||||||
| Funds From Operations | $ | 253,255 | $ | 262,755 | ||||
| Expenses associated with mergers and acquisitions | 2,424 | 2,424 | ||||||
| Income tax benefit for special items | (679 | ) | (679 | ) | ||||
| Normalized Funds From Operations | $ | 255,000 | $ | 264,500 | ||||
| Diluted EPS | $ | 1.51 | $ | 1.61 | ||||
| Adjusted Diluted EPS | $ | 1.53 | $ | 1.63 | ||||
| FFO per diluted share | $ | 2.58 | $ | 2.68 | ||||
| Normalized FFO per diluted share | $ | 2.60 | $ | 2.70 | ||||
| Net income | $ | 147,755 | $ | 157,755 | ||||
| Interest expense | 96,000 | 95,000 | ||||||
| Depreciation and amortization | 149,250 | 149,250 | ||||||
| Income tax expense | 58,321 | 57,321 | ||||||
| EBITDA | $ | 451,326 | $ | 459,326 | ||||
| Expenses associated with mergers and acquisitions | 2,424 | 2,424 | ||||||
| Adjusted EBITDA | $ | 453,750 | $ | 461,750 | ||||
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: Jeb Bachmann - Managing Director, Investor Relations - (615) 263-3024 Financial Media: David Gutierrez, Dresner Corporate Services - (312) 780-7204 |
