The following is a summary of the CoreCivic, Inc. (CXW) Q1 2024 Earnings Call Transcript:
Financial Performance:
CoreCivic reported Q1 2024 revenue of over $500 million, an increase of 9% compared to Q1 2023.
Normalized FFO was $52.6 million or $0.46 per share, showing a per share increase of 35% from the previous year.
The increase in FFO was driven by increased population across federal, state, and local partnerships.
There were increases in revenue from federal, state, and local partners by 11%, 5% and 44% respectively.
Investments in stock repurchases were accelerated, with 2.7 million shares repurchased at a cost of nearly $40 million.
CoreCivic reported no debt maturities until 2027, currently holding a debt of $243.1 million with a 4.75% rate.
Business Progress:
Successful ramp-up of four new contracts from Q3 and Q4 of 2023 contributed to growth in occupancy and revenue.
Improved staffing levels have allowed for better management of higher population needs.
Occupancy rates in the Safety and Community segments have increased from 71% to 76% and 59% to 63% respectively.
There is a positive future outlook on the company's federal, state, and local businesses with discussions to address near to long-term challenges.
Expected increase in state and local residential populations, and average daily federal populations due to new contracts.
Potential upgrades are being considered for their ICE facility. This could cost from minimal to around $15-20 million.
Observes increased demand from state and local partners and foresees further cooperation with the State of California.
CoreCivic aims for a 25% NOI margin in the Safety and Community segments combined and plans to return to pre-pandemic staffing levels.
More details: CoreCivic, Inc. IR
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