Slide 1: Investor Presentation Second Quarter 2021
Investor Presentation Second Quarter 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements as to our beliefs and expectations of the outcome of future events that are "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform
Slide 3: CoreCivic Operates at the Intersection of Government and Real Estate
CoreCivic Operates at the Intersection of Government and Real Estate Company Overview Compelling Investment Opportunity… • Diversified government-solutions company with the scale and differentiated expertise to • Largest private owner of real-estate utilized by government Market Leader with Critical
Slide 4: Largest Private Owner of Real Estate Utilized by Government Agencies
Largest Private Owner of Real Estate Utilized by Government Agencies Manage 16.5M square feet of real estate used by government SAFETY • 85.6% of NOI for the six months ended June 30, 2021 • 14.3M square feet • 70,003 correctional/detention beds • 5 remaining idle facilities, including 6,826 beds av
Slide 5: CoreCivic's Business Segments are Complementary
CoreCivic's Business Segments are Complementary Safety Properties Community Government tenants Customers 2021 Business Mix(1) 85.6% 11.5% 2.9% (% of NOI) Strong fundamental demand from federal and Government entities require purpose- States and localities place high value Industry Trends state partn
Slide 6: Extensive History of Durable Earnings and Cash Flows
Extensive History of Durable Earnings and Cash Flows • Long term stable cash flows from government $500 ADJUSTED EBITDA ($MM)1 40% 35% $444 partners due to essential, mission critical $400 $415 $427 $441 $423 $381 $386 $398 $418 $388 $396 $405 $401 30% infrastructure and valued services $300 25% 25%
Slide 7: Current Financial Performance
Current Financial Performance June 30, March 31, December 31, September 30, June 30, For the quarter ended 2021 2021 2020 2020 2020 Adjusted Diluted EPS(1) $0.25 $0.24 $0.30 $0.21 $0.23 Normalized FFO Per Share(1) $0.46 $0.44 $0.53 $0.44 $0.47 AFFO Per Share(1) $0.45 $0.47 $0.48 $0.41 $0.48 Adjusted
Slide 8: Debt Reduction Due to Capital Allocation Strategy – 1 Year Progress
Debt Reduction Due to Capital Allocation Strategy – 1 Year Progress Debt Maturity Schedule – June 30, 2020 Debt Maturity Schedule - June 30, 2021 (In $ millions) (In $ millions) $1,400 $1,400 $382.7 $1,200 $1,200 $1,000 $1,000 $800 $800 $157.5 $600 $600 $197.7 $456.3 $400 $294.0 $266.4 $400 $256.9 $
Slide 9: Conservative Balance Sheet to Support Long-Term Strategy
Conservative Balance Sheet to Support Long-Term Strategy Significant liquidity of approximately $837 million as of June 30, 2021 32.4% 3.6x Net Debt/ Fixed Charge Coverage(1)(2) Undepreciated Fixed Assets Strong cash flow to reduce debt leverage to target of 2.25x to 2.75x net debt-to-adjusted 3
Slide 10: Prudent Management and Conservative Approach to Balance Sheet
Prudent Management and Conservative Approach to Balance Sheet • Adherence to leverage target of 3.0x to 4.0x for past decade • History of responsibly adjusting dividend based on cash flows ‒ November 2016 - Reduced quarterly dividend from $0.54/sh to $0.42/sh due to cash flow decline from renegotiat
Slide 11: Sale of Non-Core Real Estate Assets
Sale of Non-Core Real Estate Assets • As part of the decision to convert to a C-Corp the Company pursued the sale of certain non-core real estates assets ‒ 47 assets outside of correctional real estate and leased to government agencies, with ~$30mm annual NOI • In December 2020, the Company sold 42
Slide 12: Market Updates & Recent Developments
Market Updates & Recent Developments
Slide 13: Our Value Proposition to Our Government Partners Remains Strong
Our Value Proposition to Our Government Partners Remains Strong… CoreCivic provides tailored solutions to meet the needs of state and federal partners State Partners Federal Partners • Key State Partner Challenges: • Key Federal Partner Challenges: Prison over-crowding, exacerbated by COVID-19 pan
Slide 14: And Has Resulted in Many New Contract Wins
…And Has Resulted in Many New Contract Wins New Contract Awards Date Details The state of Montana expands its contract at our 664-bed Crossroads Correctional Center by 96 beds to utilize 100% of the facility July 2021 capacity. Mahoning County, Ohio enters into a new contract to utilize up to 990-be
Slide 15: Core Value is in the Real Estate, But Our Business Model is Flexible
Core Value is in the Real Estate, But Our Business Model is Flexible We have been responsive to the needs of our government partners and those needs have evolved over our nearly 40 year history Early Stages Rapid Growth Phase Current Market • Operational Cost Efficiencies • Rapid Population Growth
Slide 16: Our Real Estate is Flexible for Alternative Uses
Our Real Estate is Flexible for Alternative Uses We have a well established recent history of repurposing facilities for alternative government partners: Facility Facility State Details Capacity Cimarron Correctional Facility 1,692 beds Oklahoma In August 2020, the State of Oklahoma ended their cont
Slide 17: America's Prisons: The Aging Infrastructure Crisis
America's Prisons: The Aging Infrastructure Crisis "There are almost 500 prisons nation wide built between 1980 and 2000 that need major upgrades, repurposing, or replacement…With the prison infrastructure challenges at an all- time high, we may be entering the next prison building boom, as states a
Slide 18: Potential Growth Channels & Opportunities
Potential Growth Channels & Opportunities Multiple opportunities in the market to drive future growth, many of which can be realized due to our recent decision to convert to a taxable C-Corp, allowing CoreCivic to fund future growth initiatives with internally generated cash flows Properties Segment
Slide 19: Southwest Border Apprehensions Remain Elevated
Southwest Border Apprehensions Remain Elevated • Even though the international borders are effectively shutdown to non-essential travel, apprehension rates along our Southwest border remains elevated—recently hitting 21 year highs • Title 42 expulsions, an emergency power granted to the Executive br
Slide 20: Unprecedented Commitment to ESG within the Corrections Industry
Unprecedented Commitment to ESG within the Corrections Industry • CoreCivic released the Company's third Environmental, Social and Governance (ESG) report in May 2021, demonstrating our continued commitment to transparency and accountability and providing more robust disclosures to show how we bette
Slide 21: Company's ESG Focus Benefits All Stakeholders
Company's ESG Focus Benefits All Stakeholders Holistic Approach Toward Preparing Inmates for Successful Reentry… More Humane Conditions Focus on Rehabilitation & Reentry • Reduced Overcrowding • Ban the Box • Modern Real Estate Amenities • Education & Vocational Training • Improved Medical Programs
Slide 22: CoreCivic's Quality Assurance and Government Oversight
CoreCivic's Quality Assurance and Government Oversight CoreCivic facilities’ operations are subject to significant oversight and accountability measures, both internally and externally. Many of CoreCivic’s government partners maintain full-time, on-site monitors to promote transparency and ease of c
Slide 23: CoreCivic's Quality Assurance and Government Oversight
CoreCivic's Quality Assurance and Government Oversight CoreCivic facilities also are subject to a range of other audit and inspection processes, based on facility mission, location and contractual and regulatory requirements: • CoreCivic Safety facilities that maintain American Correctional Associat
Slide 24: Operational Transparency Through Multiple Levels of Oversight
Operational Transparency Through Multiple Levels of Oversight Quality Assurance Audit Hotlines On-Site Contract Monitors Accrediting Organizations The quality assurance division, Residents, employees, and visitors have Many of our facilities have government The American Correctional Association inde
Slide 25: CoreCivic's Health Services – Care Delivery
CoreCivic's Health Services – Care Delivery c 24
Slide 26: CoreCivic's COVID-19 Response
CoreCivic's COVID-19 Response COVID-19 affected nearly every facet of our operations High-Level Summary of our Management Approach in Response to COVID-19: over the last 18 months and continues to do so today. Principles of preparedness, control and management anchor our approach to the ongoing pand
Slide 27: Highly Qualified, Proven Management Team
Highly Qualified, Proven Management Team Damon T. Hininger David Garfinkle Tony Grande President and Chief Executive Officer EVP and Chief Financial Officer EVP and Chief Development Officer • 25+ years of corrections experience • Began at CoreCivic in 2001 • Began at CoreCivic in 2003 • Began at Co
Slide 28: Diverse Board of Directors (Nine Independent) with Relevant Expertise
Diverse Board of Directors (Nine Independent) with Relevant Expertise Mark A. Emkes Donna M. Alvarado Robert J. Dennis Damon T. Hininger Stacia Hylton Harley G. Lappin • Chairman of the Board • Founder and President, • Former Chairman and CEO, • President and CEO, • Principal, LS Advisory • Previous
Slide 29: Appendix
E CoreCivic
Slide 30: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS For the Three Months Ended June 30, March 31, December 31, September 30, June 30, ($ in thousands, except per share amounts) 2021 2021 2020 2020 2020 Net income (loss) attributable to common stockholders $15,623 ($125,568) ($26,803) $26,717 $22,186 Non-controll
Slide 31: Calculation of FFO, Normalized FFO and AFFO
Calculation of FFO, Normalized FFO and AFFO For the Three Months Ended June 30, March 31, December 31, September 30, June 30, ($ in thousands, except per share amounts) 2021 2021 2020 2020 2020 Net income (loss) $15,623 ($125,568) ($26,803) $26,717 $22,186 Depreciation and amortization of real estat
Slide 32: Calculation of Pro Forma FFO, Normalized FFO and AFFO
Calculation of Pro Forma FFO, Normalized FFO and AFFO For the Three Months Ended For the Year Ended December 31, September 30, June 30, March 31, December 31, ($ in thousands, except per share amounts) 2020 2020 2020 2020 2020 Net income (loss) as reported ($26,803) $26,717 $22,186 $33,238 $55,338 E
Slide 33: Calculation of NOI
Calculation of NOI ($ in thousands) For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 Revenue Safety $ 419,880 $ 424,117 $ 829,649 $ 861,882 Community 24,929 26,004 48,587 56,603 Properties 19,732 22,483 40,987 45,162 Other 30 37 66 95 Total revenues $ 464,571
Slide 34: Calculation of EBITDA and Adjusted EBITDA
Calculation of EBITDA and Adjusted EBITDA Three Months Ended Six Months Ended For the Twelve Months June 30, June 30, Ended December 31, ($ in thousands, except per share amounts) 2021 2020 2021 2020 2020 Net income (loss) $15,623 $22,186 ($109,945) $55,424 $55,338 Interest expense 25,843 23,873 46,