CoreCivic's Strong Financial Turnaround Sets 2025 Expectations
CoreCivic Reports Impressive Financial Results
Higher Occupancy and Cost Management Drive Growth
CoreCivic, Inc. (NYSE: CXW) is excited to announce its financial performance for the fourth quarter and full year 2024, presenting robust numbers that reflect the company's strategic focus on cost management and occupancy rates.
Fourth Quarter Financial Highlights
In the fourth quarter of 2024, CoreCivic achieved remarkable financial results:
- Total revenue reached $479.3 million
- Net income was $19.3 million
- Diluted earnings per share stood at $0.17; adjusted diluted earnings per share were $0.16
- Normalized Funds from Operations per diluted share at $0.39
- Adjusted EBITDA totaled $74.2 million
Full Year Financial Performance
For the entire year of 2024, the company's financial performance was equally robust:
- Total revenue surged to $2.0 billion
- Net income increased to $68.9 million
- Diluted earnings per share reached $0.62; adjusted diluted EPS was $0.81
- Normalized FFO per diluted share reported at $1.70
- Adjusted EBITDA totaled $330.8 million
Leadership Insights on Future Demands
Damon T. Hininger, the Chief Executive Officer, reflected on the company's strong financial close in 2024. He emphasized CoreCivic's readiness to meet increased demands from federal, state, and local government partners, especially with an anticipated rise in occupancy.
Hininger noted, "Our available capacity paired with financial strength places us in an excellent position for future growth. As governmental needs evolve, we are prepared to respond efficiently and effectively."
Strategic Capital Investments
The company is also prepared for anticipated demand increases, having set aside $40 million to $45 million for potential facility activations and necessary transportation services. This proactive approach aims to ensure they can accommodate the needs of their government partners promptly.
Impact of Changing Regulatory Landscape
The shift in the political landscape has piqued interest at CoreCivic. With the new administration altering immigration policies and rescinding previous executive orders, the company expects a rising demand for its services.
Chief Operating Officer Patrick Swindle elaborated, stating that CoreCivic's fourth quarter results exceeded internal forecasts. The company managed to achieve an occupancy rate of 75.5%, the highest since the onset of the pandemic.
Examining Contracts and Revenue Fluctuations
Despite reporting increased revenues and better-than-expected earnings, CoreCivic faced contract terminations with ICE at specific facilities. However, they also witnessed substantial revenue from other government contracts, as evidenced by recent contract awards from Montana and Wyoming.
In an emerging trend, revenue from state customers increased by 6.4% compared to the previous year. Notably, contracts outside of ICE services now represent a growing portion of CoreCivic's revenue stream.
Projected Guidance for 2025
Looking ahead, CoreCivic has provided financial guidance for 2025, aiming for net income between $53.5 million and $67.5 million, and diluted EPS ranging from $0.48 to $0.61. While aware of the impacts from recent contract changes, the company remains optimistic about securing new contracts and activating idle facilities in the upcoming year.
Continued Commitment to Stakeholders
CoreCivic has a strong history of dedication to its government partners, with a commitment to delivering high-quality correctional and detention management. The company’s reputation has been solidified over 40 years of successful operations.
Frequently Asked Questions
What were CoreCivic's total revenues in 2024?
CoreCivic reported total revenues of $2.0 billion for the year 2024.
How did CoreCivic's fourth quarter earnings compare to the previous year?
The fourth quarter net income was $19.3 million, a decrease from $26.5 million in the fourth quarter of 2023.
What is CoreCivic's occupancy rate for the fourth quarter?
CoreCivic achieved an occupancy rate of 75.5% in the fourth quarter, the highest since the start of the pandemic.
What is the financial guidance for CoreCivic in 2025?
CoreCivic anticipates net income within the range of $53.5 million to $67.5 million and diluted EPS of $0.48 to $0.61 for 2025.
What investments is CoreCivic planning for 2025?
CoreCivic has allocated $40 million to $45 million for potential facility activations and additional capital expenditures in anticipation of demand increases.
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