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CoreCivic, Inc. reports developments in government corrections, detention, residential reentry and real estate services. The company owns and operates partnership correctional, detention and residential reentry facilities in the United States, manages facilities for government agencies, and leases properties through its Properties segment. Recurring updates cover facility activations and occupancy, contract-related operations with federal and state customers, earnings guidance, and capital allocation.
Company news also includes credit facility changes, share repurchase authorization, executive responsibility for corrections and reentry operations, and complementary acquisitions such as Clinical Solutions Pharmacy, a mail-order pharmacy provider to correctional facilities.
CoreCivic, Inc. (NYSE: CXW) announced plans to revoke its Real Estate Investment Trust (REIT) election, transitioning to a taxable C corporation effective January 1, 2021. The decision aims to enhance corporate flexibility and capital allocation, focusing on debt reduction with a target leverage ratio of 2.25x to 2.75x. Additionally, the company will discontinue its quarterly dividend to prioritize debt repayment while exploring growth opportunities in its Properties segment. CoreCivic anticipates a more resilient balance sheet and intends to capitalize on new service opportunities unavailable under the REIT structure.
CoreCivic (CXW) reported Q2 2020 total revenue of $472.6 million, down 3.6% year-over-year, with net income of $22.2 million and diluted EPS of $0.18. Adjusted diluted EPS was $0.33, impacted by $11.7 million in asset impairments and $8.2 million in COVID-related expenses. Funds from Operations (FFO) decreased to $57.4 million from $79.2 million a year ago. Cash on hand was $363.8 million. Future outlook remains uncertain due to COVID-19, with no financial guidance provided.
CoreCivic (NYSE: CXW) is set to release its 2020 second quarter financial results after market close on August 5, 2020. The upcoming conference call on August 6 will review these results, along with updates on corporate structure and capital allocation alternatives under evaluation since June 17, 2020. A live broadcast will be available on its website, with a telephonic replay option provided for later access. CoreCivic has over 35 years of experience as a government solutions company, focusing on corrections, detention management, and reentry services.
CoreCivic (NYSE: CXW) announced on June 17, 2020, that its Board of Directors is evaluating corporate structure and capital allocation alternatives, leading to the suspension of its quarterly dividend. This decision allows the company to utilize its substantial free cash flow effectively to enhance shareholder value and meet government partners' needs. Despite concerns about market pricing, management remains confident in the company’s financial strength. CoreCivic generated $158.1 million in revenue in April 2020, with a net income of $10.2 million, showing resilience amid COVID-19 challenges.
CoreCivic (NYSE: CXW) reported its Q1 2020 financial results with total revenue of $491.1 million, up 1.5%. Net income was $32.1 million or $0.27 per diluted share, down from $49.3 million or $0.41 in Q1 2019. Adjusted diluted EPS was $0.30, reflecting challenges due to COVID-19. As of March 31, 2020, the company had $335.5 million in cash and $146.7 million available under its credit facility. No debt maturities are due until October 2022. The company suspended its financial guidance due to uncertainties from the pandemic.