Corecivic Stock Price, News & Analysis

CoreCivic, Inc. (NYSE: CXW) has successfully sold 42 non-core government leased properties for $106.5 million, generating net proceeds of approximately $27 million after costs. These properties spanned about 573,000 gross rentable square feet, with the sale aimed at reallocating capital to higher-return opportunities. The original purchase price was $98.7 million. Following the transaction, CoreCivic's remaining portfolio includes 15 properties totaling 2.7 million square feet. The company operates 48 correctional facilities, with a design capacity of around 71,000 beds.

CoreCivic (CXW) reported Q3 2020 financial results, revealing total revenue of $468.3 million, with net income of $26.7 million or $0.22 per diluted share. Adjusted diluted EPS stood at $0.28, down from $0.47 year-over-year. The company repaid $102.2 million in debt, enhancing financial flexibility. Despite lower contract utilization due to COVID-19, new contracts with USMS and Idaho Department of Correction show promise for future revenue. The firm remains cautious, withholding guidance amid ongoing uncertainties.

CoreCivic (CXW) has announced its commitment to advocate for new policies aimed at reducing recidivism, including the restoration of Pell Grants and voting rights for formerly incarcerated individuals. Over the past three years, CoreCivic has supported 66 bills, sending nearly 2,000 letters to federal and state officials. CEO Damon T. Hininger emphasizes the importance of treating individuals with dignity and facilitating their reintegration into society. The company has a history of partnering with government agencies to improve corrections and detention services.

CoreCivic, Inc. (NYSE: CXW) will release its third quarter financial results for 2020 after the market closes on November 4, 2020. A live conference call is scheduled for November 5, 2020, at 10:00 a.m. CT, accessible via the company's website or by phone. The call will be followed by an online replay and a telephonic replay available until November 13, 2020. CoreCivic focuses on providing government solutions in corrections and detention management and is the largest owner of partnership correctional facilities in the U.S.

CoreCivic, Inc. (CXW) has entered a new contract under an Intergovernmental Agreement with the United States Marshals Service (USMS) for its Cimarron Correctional Facility in Cushing, Oklahoma. The contract, effective September 15, 2020, has an initial three-year term with unlimited 24-month extensions. This comes after plans to idle the facility due to COVID-19's impact on inmate populations. The activation will incur startup costs of $0.5 million to $1.5 million as the facility transitions to meet USMS standards.

CoreCivic, Inc. (NYSE: CXW) announced its participation in Noble Capital Markets’ Virtual Road Show Series scheduled for August 26, 2020. The event will feature a corporate presentation by President & CEO Damon Hininger and CFO David Garfinkle, followed by a Q&A session with Noble Senior Analyst Joe Gomes. Registration for the event is free, limited to 100 participants. CoreCivic is a diversified government solutions company providing corrections, detention management, and residential reentry services, emphasizing its role in addressing America's recidivism crisis.

CoreCivic (NYSE: CXW) participated in Noble Capital Markets’ C-Suite Interview Series, where CEO Damon Hininger discussed various topics, including the transition from REIT to a taxable C-Corporation. Key points included CoreCivic's role in alleviating prison overcrowding, the impact of COVID-19 on operations, and updates on environmental-social-governance efforts. The interview took place on August 6, 2020, and is accessible via Channelchek. CoreCivic emphasizes its long-standing commitment to provide government solutions in corrections and reentry services.

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.