CoreCivic, Inc. (CXW) Bundle
A Brief History of CoreCivic
CoreCivic, Inc., formerly known as Corrections Corporation of America (CCA), was founded in 1983 and is headquartered in Nashville, Tennessee. As of 2024, the company operates as a leader in the private corrections and detention facility management sector.
Recent Developments
In January 2024, CoreCivic finalized the sale of its 120-bed Dahlia Facility in Denver, Colorado, receiving gross sales proceeds of $8.0 million, resulting in a net gain of $0.5 million. Subsequently, in July 2024, the company sold its 390-bed Tulsa Transitional Center, generating net sales proceeds of $3.4 million and a gain of $1.2 million.
Financial Performance
For the three months ended September 30, 2024, CoreCivic reported total revenue of $491.6 million, a 1.6% increase from $483.7 million in the same period of 2023. Management revenue contributed $487.5 million of this total, while lease revenue accounted for $4.1 million, marking a 61.0% decrease from the previous year.
The following table summarizes CoreCivic's financials for the three months ended September 30, 2024, compared to the same period in 2023:
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $491.6 million | $483.7 million | 1.6% |
| Management Revenue | $487.5 million | $473.1 million | 3.0% |
| Lease Revenue | $4.1 million | $10.5 million | -61.0% |
Operating expenses for the same quarter totaled $370.8 million, compared to $377.3 million in Q3 2023, reflecting a decrease of 1.3%. The company reported a net income of $21.1 million for Q3 2024, up from $13.9 million in Q3 2023.
Debt and Liquidity
As of September 30, 2024, CoreCivic had a total debt of $1.0 billion, consisting of various senior unsecured notes and a term loan. The company's principal amounts outstanding included $243.1 million of 4.75% Senior Notes and $500.0 million of New 8.25% Senior Notes.
CoreCivic's liquidity position remained strong, with $107.9 million in cash and $257.0 million available under its revolving credit facility as of the end of September 2024.
Operational Highlights
CoreCivic's operational performance has been impacted by changes in government contracts and facility management agreements. The termination of leases for the California City Correctional Center and North Fork Correctional Facility has significantly affected lease revenue, which saw a 43.3% decline year-over-year. However, management revenue has shown resilience, reflecting a 6.8% increase for the nine months ended September 30, 2024, compared to the same period in 2023.
| Operational Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Average Compensated Occupancy | 75.2% | 72.0% | 3.2% |
| Operating Margin | 24.9% | 21.3% | 3.6% |
Despite challenges, CoreCivic continues to adapt its operational strategy to align with evolving government needs and market conditions, positioning itself for future growth within the correctional management sector.
A Who Owns CoreCivic, Inc. (CXW)
Shareholder Composition
As of 2024, CoreCivic, Inc. (CXW) has a diverse shareholder base that includes institutional investors, mutual funds, and individual shareholders. The top institutional shareholders include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 10,487,210 | 9.50% |
| The Vanguard Group, Inc. | 8,231,774 | 7.35% |
| State Street Corporation | 7,329,196 | 6.58% |
| Invesco Ltd. | 5,476,912 | 4.91% |
| Dimensional Fund Advisors LP | 4,227,210 | 3.77% |
Insider Ownership
Insider ownership is also a significant aspect of CoreCivic's equity structure. As of the latest filings, the following executives and board members hold shares:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Damien J. O’Neill | President and CEO | 1,200,000 | 1.08% |
| J. David Donahue | Executive Chairman | 750,000 | 0.67% |
| Gregory C. Burch | Chief Financial Officer | 350,000 | 0.31% |
Recent Stock Performance
The stock performance of CoreCivic has shown fluctuations in 2024. As of September 30, 2024, the stock price closed at $8.75, reflecting a year-to-date increase of approximately 15%. The following table summarizes key stock performance metrics:
| Metric | Value |
|---|---|
| 52-Week High | $9.50 |
| 52-Week Low | $6.00 |
| Market Capitalization | $960 million |
| Average Daily Volume | 1.2 million shares |
Financial Overview
CoreCivic's financial performance has been robust, with reported revenues and profits for the nine months ended September 30, 2024. The following table highlights key financial figures:
| Metric | Value (in millions) |
|---|---|
| Total Revenue | $1,482.3 |
| Operating Income | $357.7 |
| Net Income | $49.6 |
| Earnings Per Share (EPS) | $0.44 |
Debt Structure
CoreCivic's debt structure is a critical component of its financial health. As of September 30, 2024, the total debt outstanding is as follows:
| Debt Type | Amount (in millions) | Interest Rate |
|---|---|---|
| 4.75% Senior Notes | $243.1 | 4.75% |
| New 8.25% Senior Notes | $490.3 | 8.25% |
| Total Long-term Debt | $846.5 |
Conclusion on Ownership and Structure
CoreCivic, Inc. is characterized by a blend of institutional and insider ownership, with significant interest from major investment firms. The company's stock performance, financial strength, and manageable debt levels position it well within the correctional services industry.
CoreCivic, Inc. (CXW) Mission Statement
Mission Statement Overview
CoreCivic, Inc. is committed to providing high-quality services in the correctional and detention sectors. The company focuses on enhancing public safety through effective management of correctional facilities and rehabilitation programs.
Core Values
- Integrity: Upholding ethical standards in all operations.
- Service: Committed to serving communities and government partners.
- Innovation: Embracing new ideas and technologies to improve facilities and services.
- Collaboration: Working together with stakeholders to achieve common goals.
Financial Performance
For the three months ended September 30, 2024, CoreCivic reported:
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $491.6 million | $483.7 million | $7.9 million | 1.6% |
| Net Income | $21.1 million | $13.9 million | $7.2 million | 51.8% |
| Basic Earnings per Share | $0.19 | $0.12 | $0.07 | 58.3% |
| Diluted Earnings per Share | $0.19 | $0.12 | $0.07 | 58.3% |
Operational Highlights
CoreCivic operates multiple facilities across different segments:
| Segment | Facilities Count (as of Sept 30, 2024) | Facility Type |
|---|---|---|
| CoreCivic Safety | 42 | Correctional and Detention Facilities |
| CoreCivic Community | 21 | Residential Reentry Centers |
| CoreCivic Properties | 6 | Leased Properties |
Revenue Breakdown
For the nine months ended September 30, 2024, the revenue breakdown by management revenue and lease revenue is as follows:
| Revenue Source | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Federal Management Revenue | $771.6 million | $731.8 million | $39.8 million | 5.4% |
| State Management Revenue | $576.3 million | $551.5 million | $24.8 million | 4.5% |
| Local Management Revenue | $37.1 million | $25.8 million | $11.3 million | 43.8% |
| Lease Revenue | $21.5 million | $37.9 million | ($16.4 million) | (43.3%) |
Recent Developments
In 2024, CoreCivic experienced a significant operational shift with the termination of various lease agreements. The lease revenue and net operating income were notably affected:
| Facility | Lease Revenue Loss (2024) | Net Operating Income Loss (2024) |
|---|---|---|
| California City Correctional Center | $31.1 million | $25.5 million |
| North Fork Correctional Facility | $6.1 million | $4.7 million |
How CoreCivic, Inc. (CXW) Works
Business Overview
CoreCivic, Inc. operates primarily in the correctional and detention facility management sector. As of September 30, 2024, the company managed a total of 69 facilities, including 42 in the Safety segment and 21 in the Community segment, along with 6 properties under its Properties segment.
Financial Performance
For the three months ended September 30, 2024, CoreCivic reported total revenue of $491.6 million, compared to $483.7 million for the same period in 2023, reflecting a year-over-year increase of 1.6%. For the nine months ended September 30, 2024, total revenue was $1,482.4 million, up from $1,405.2 million in 2023, representing a 5.5% increase.
Revenue Breakdown
| Segment | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Change |
|---|---|---|---|
| CoreCivic Safety | $459.3 | $443.3 | $15.9 (3.6%) |
| CoreCivic Community | $28.2 | $29.8 | ($1.6) (-5.4%) |
| CoreCivic Properties | $4.1 | $10.5 | ($6.4) (-61.0%) |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $370.8 million, down from $377.3 million in 2023. For the nine-month period, operating expenses increased to $1,124.7 million from $1,093.9 million in 2023.
Income and Earnings Per Share
CoreCivic reported net income of $21.1 million, or $0.19 per diluted share, for the three months ended September 30, 2024, compared to $13.9 million, or $0.12 per diluted share, for the same period in 2023. For the nine months ended September 30, 2024, net income was $49.6 million, or $0.44 per diluted share, compared to $41.1 million, or $0.36 per diluted share, in 2023.
Compensated Man-Day Metrics
The following table summarizes the revenue and expenses per compensated man-day for CoreCivic's facilities:
| Metric | CoreCivic Safety (2024) | CoreCivic Safety (2023) | CoreCivic Community (2024) | CoreCivic Community (2023) |
|---|---|---|---|---|
| Revenue per compensated man-day | $104.05 | $99.96 | $76.86 | $77.21 |
| Operating expenses per compensated man-day | $77.81 | $79.13 | $63.58 | $53.64 |
| Operating income per compensated man-day | $26.24 | $20.83 | $13.28 | $23.57 |
| Operating margin | 25.2% | 20.8% | 17.3% | 30.5% |
Facility Management and Contracts
CoreCivic has experienced fluctuations in its facility management contracts. For the three months ended September 30, 2024, revenue from ICE was $139.7 million, compared to $144.6 million in the same period of 2023. New contracts with local governments have contributed to increased local revenues by 38.6% year-over-year.
Debt and Financial Position
As of September 30, 2024, CoreCivic's total long-term debt was $846.5 million. The company reported cash, cash equivalents, and restricted cash totaling $117.6 million. The financial results reflect ongoing investments in staffing and operational improvements to address labor shortages and increased operational demands.
Operational Challenges
CoreCivic has faced challenges related to labor shortages and wage pressures, which have impacted operating expenses. The company has made significant investments to improve staffing levels, including wage increases and incentive programs to attract and retain employees.
Conclusion on Facility Operations
CoreCivic's operational strategy focuses on maintaining a high occupancy rate across its facilities while managing costs effectively. The company continues to seek new contracts and partnerships to enhance its service offerings and financial performance.
How CoreCivic, Inc. (CXW) Makes Money
Revenue Streams
CoreCivic, Inc. generates revenue primarily through three segments: CoreCivic Safety, CoreCivic Community, and CoreCivic Properties. Each segment contributes differently to the overall revenue model.
| Segment | Revenue (3 Months Ended September 30, 2024) (in millions) | Revenue (3 Months Ended September 30, 2023) (in millions) | Revenue (9 Months Ended September 30, 2024) (in millions) | Revenue (9 Months Ended September 30, 2023) (in millions) |
|---|---|---|---|---|
| CoreCivic Safety | $459.3 | $443.3 | $1,372.4 | $1,282.7 |
| CoreCivic Community | $28.2 | $29.8 | $88.4 | $84.6 |
| CoreCivic Properties | $4.1 | $10.5 | $21.5 | $37.9 |
| Total Revenue | $491.6 | $483.7 | $1,482.4 | $1,405.4 |
CoreCivic Safety
This segment is the largest revenue contributor, consisting of the operation of correctional and detention facilities. The revenue for CoreCivic Safety is largely driven by per diem rates for offenders, which increased by 4.1% in Q3 2024 compared to Q3 2023.
The operating income per compensated man-day for CoreCivic Safety was $26.24 for Q3 2024, with an operating margin of 25.2%.
CoreCivic Community
CoreCivic Community focuses on residential reentry facilities. Operating income per compensated man-day was $13.28 for Q3 2024, with an operating margin of 17.3%.
Revenue per compensated man-day decreased slightly to $76.86 in Q3 2024 from $77.21 in Q3 2023.
CoreCivic Properties
This segment generates lease revenue from properties leased to third-party operators. Lease revenue decreased significantly to $4.1 million in Q3 2024 from $10.5 million in Q3 2023 due to the termination of leases at some facilities.
Operating Expenses
Total operating expenses for CoreCivic amounted to $370.8 million for Q3 2024, a slight decrease from $377.3 million in Q3 2023. The operating expenses consist of costs incurred in the management of facilities and include fixed and variable costs.
| Expense Type | Amount (3 Months Ended September 30, 2024) (in millions) | Amount (3 Months Ended September 30, 2023) (in millions) |
|---|---|---|
| Operating Expenses | $370.8 | $377.3 |
| General and Administrative | $41.2 | $33.9 |
| Depreciation and Amortization | $32.2 | $32.5 |
| Asset Impairments | $3.1 | $2.7 |
Net Income
CoreCivic reported a net income of $21.1 million for Q3 2024, reflecting an increase from $13.9 million in Q3 2023. The diluted earnings per share were $0.19 for Q3 2024, up from $0.12 in Q3 2023.
Market Trends
The demand for correctional and detention services has increased post-pandemic, impacting revenue positively. CoreCivic has also made efforts to improve staffing and reduce variable costs, which has contributed to a stronger operating margin despite challenges in labor costs.
Future Outlook
CoreCivic is actively marketing idle facilities and exploring new contracts to enhance revenue streams. The company anticipates continued investment in staffing to meet emerging needs from government partners.
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Resources:
- CoreCivic, Inc. (CXW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CoreCivic, Inc. (CXW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CoreCivic, Inc. (CXW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.