Corecivic Stock Price, News & Analysis

CoreCivic, Inc. (NYSE: CXW) reported a net loss of $125.6 million for Q1 2021, equating to a diluted loss per share of $1.05, largely influenced by significant non-recurring charges. Total revenue reached $454.7 million, with CoreCivic Safety contributing $409.8 million. Adjusted diluted EPS was $0.24, down from $0.30 in Q1 2020. The company has transitioned from a REIT to a C-corporation, affecting its tax obligations. Financial guidance for 2021 remains uncertain due to COVID-19 and regulatory changes.

CoreCivic, Inc. (NYSE: CXW) will release its 2021 Q1 financial results post-market on May 5, 2021. A conference call is set for May 6, 2021, at 10:00 a.m. CT, accessible via the company's website and by phone. CoreCivic is recognized as the largest owner of partnership correctional facilities in the U.S. and offers services addressing government challenges through flexible and cost-effective solutions. The company has over 35 years of experience in corrections, detention management, and residential reentry services.

CoreCivic, Inc. (NYSE: CXW) announced a settlement regarding the Grae v. Corrections Corporation of America lawsuit, originally filed in 2016. The company will pay $56 million to resolve the case, which was prompted by a decline in stock price following a Department of Justice memo to reduce private prison use. CoreCivic maintains the allegations were baseless but believes settling eliminates ongoing risks and distractions. The settlement requires court approval and contains no admission of wrongdoing by the defendants.

CoreCivic, Inc. (NYSE: CXW) closed a $450 million offering of 8.25% senior unsecured notes due 2026 on April 14, 2021, priced at 99% of face value, yielding 8.50%. Net proceeds of approximately $435.1 million will be used to redeem $250 million of its 5.00% senior notes due 2022 and to repay $128 million of its 4.625% senior notes due 2023. The offering was made under a shelf registration statement and is subject to standard risks. The company aims to enhance its financial position by reducing debt obligations.

CoreCivic, Inc. (CXW) announced an increase in its senior unsecured notes offering to $450 million from the initial $400 million, with a yield to maturity of 8.50%. The net proceeds, estimated at $435.1 million, will primarily be used to redeem $250 million of 5.00% senior notes due 2022 and reduce other debts, including the potential repurchase of 4.625% senior notes due 2023. The offering is conducted under an effective registration statement with the SEC. There are risks associated with the successful completion of this offering.

CoreCivic (NYSE: CXW) plans to issue $400 million in senior unsecured notes due 2026, subject to market conditions. Proceeds will be primarily used to redeem $250 million of its 5.00% senior notes due 2022 and reduce other debt, possibly including a portion of its $350 million in 4.625% senior notes due 2023. This offering is pursuant to an effective shelf registration with the SEC. Forward-looking statements indicate potential risks, including the uncertainty of completing the offering.

CoreCivic, Inc. (NYSE: CXW) has secured a 90-day contract extension with the United States Marshals Service for its Northeast Ohio Correctional Center, effective March 1, 2021. This contract will house approximately 800 federal detainees. However, the USMS does not plan to extend the contract post-extension. President Biden's executive order against renewing contracts with privately operated detention facilities adds uncertainty to CoreCivic's future operations. The company, a leader in government solutions, emphasizes its role in addressing public safety and recidivism issues.

CoreCivic, Inc. (NYSE: CXW) announced the appointment of Dr. Glenda Baskin Glover to its Board of Directors, effective March 1, 2021. This addition expands the Board to twelve members, one-third of whom are women, emphasizing gender diversity. Dr. Glover, President of Tennessee State University, brings extensive expertise in business and education. CoreCivic aims to enhance educational opportunities for individuals in its programs, aligning with Dr. Glover's vision for community engagement. CoreCivic is a leader in providing government solutions, including correctional and rehabilitation services.