Slide 1: Investor Presentation First Quarter 2022
Investor Presentation First Quarter 2022
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… • Largest private owner of real-estate utilized by • Diversified government-solutions company with the scale and differentiated expertise to solve the tough Market Leader with gov
Slide 4: Largest Private Owner of Real Estate Utilized by Government Agencies
Largest Private Owner of Real Estate Utilized by Government Agencies Manage 16.3 million square feet of real estate used by government SAFETY • 84.3% of segment NOI for the quarter ended March 31, 2022 • 13.9 million square feet • 68,377 correctional/detention beds • 7 idle prison facilities, includ
Slide 5: CoreCivic's Business Segments are Complementary
CoreCivic's Business Segments are Complementary Safety Properties Community Government tenants Customers 2022 Business Mix(1) 84.3% 12.2% 3.5% (% 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 partners due to essential, mission critical Adjusted EBITDA ($ in millions)(1) infrastructure and valued services 40% − 40-year track record of providing government $500 35% $441 $444 solutions with pi
Slide 7: Current Financial Performance
Current Financial Performance March 31, December 31, September 30, June 30, March 31, For the quarter ended 2022 2021 2021 2021 2021 Adjusted Diluted EPS $0.14 $0.27 $0.28 $0.25 $0.24 Normalized FFO Per Share $0.34 $0.48 $0.48 $0.46 $0.44 AFFO Per Share $0.37 $0.41 $0.47 $0.45 $0.47 Adjusted EBITDA
Slide 8: Prudent Management and Conservative Approach to Balance Sheet
Prudent Management and Conservative Approach to Balance Sheet Sale of Non-Core Real Estate Assets to Accelerate Debt Reduction Strategy • 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 esta
Slide 9: Extended Debt Maturity Schedule and Reduced Refinancing Risks
Extended Debt Maturity Schedule and Reduced Refinancing Risks Issued $675 Million of New Unsecured Notes in 2021 • April 2021: Sold $450 million of 8.25% Unsecured Notes at 99% of face to yield 8.5% ‒ Notes mature in April 2026 ‒ Used net proceeds to fully repay $250 million of senior unsecured note
Slide 10: Debt Reduction Due to Capital Allocation Strategy
Debt Reduction Due to Capital Allocation Strategy – 7 Quarter Progress Debt Maturity Schedule – June 30, 2020 Debt Maturity Schedule – March 31, 2022 ($ in millions) ($ in millions) $1,400 $1,400 $382.7 $1,200 $1,200 $1,000 $1,000 $800 $800 $681.3 $157.5 $600 $600 $400 $294.0 $266.4 $400 $197.3 $631
Slide 11: Positioned for Long-Term Success and Value Creation
Positioned for Long-Term Success and Value Creation Significant liquidity of approximately $1.16 billion as of March 31, 2022 27.1% 3.3x 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 2.7x
Slide 12: History of Returning Capital to Shareholders
History of Returning Capital to Shareholders • Since 2009, CoreCivic has delivered $2.2 STOCK BUYBACKS, DIVIDENDS AND LEVERAGE ($MM) billion in capital returned to shareholders $300 • As a C-Corp: $251 $256 Since 2009, CXW has delivered $2.2bn in buybacks and dividends which represents ~140% of the
Slide 13: Market Updates & Recent Developments
Market Updates & Recent Developments
Slide 14: 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 15: And Has Resulted in Many New Contract Wins
…And Has Resulted in Many New Contract Wins New Contract Awards Date Details The state of Arizona enters into a new contract to house up to 2,706 offenders at our 3,060-bed La Palma Correctional Center in Eloy, January 2022 Arizona. The contract is the largest awarded to the private sector by any st
Slide 16: 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 17: 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 18: 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 ar
Slide 19: 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 20: Southwest Border Apprehensions Remain Elevated
Southwest Border Apprehensions Remain Elevated • Apprehension rates along the United States FY Southwest Land Border Encounters by Month Southwest border remains elevated— 2022 (FYTD) 2021 2020 2019 hitting 21-year highs during the summer of 250K 2021 and continuing to remain elevated 200K Encounter
Slide 21: Unprecedented Commitment to ESG within the Corrections Industry
Unprecedented Commitment to ESG within the Corrections Industry • CoreCivic released the Company’s fourth Environmental, Social and Governance (ESG) report in April 2022, demonstrating the continued commitment to transparency and accountability and providing more robust disclosures to show how the C
Slide 22: 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 23: 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 24: 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 25: 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 26: CoreCivic's Health Services – Care Delivery
CoreCivic's Health Services – Care Delivery c 25
Slide 27: 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 two years and continues to do so today. Principles of preparedness, control and management anchor our approach to the ongoing pand
Slide 28: 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 29: Diverse Board of Directors (Eight Independent) with Relevant Expertise
Diverse Board of Directors (Eight Independent) with Relevant Expertise Mark A. Emkes Donna M. Alvarado Robert J. Dennis Damon T. Hininger Stacia Hylton • Chairman of the Board • Founder and President, • Former Chairman and CEO, • President and CEO, • Principal, LS Advisory • Former Executive, Aguila
Slide 30: Appendix
E CoreCivic
Slide 31: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS For the Three Months Ended March 31, December 31, September 30, June 30, March 31, ($ in thousands, except per share amounts) 2022 2021 2021 2021 2021 Net income (loss) $19,003 $28,037 $30,012 $15,623 ($125,568) Special Items: Expenses associated with debt repa
Slide 32: Calculation of FFO, Normalized FFO and AFFO
Calculation of FFO, Normalized FFO and AFFO For the Three Months Ended March 31, December 31, September 30, June 30, March 31, ($ in thousands, except per share amounts) 2022 2021 2021 2021 2021 Net income (loss) $19,003 $28,037 $30,012 $15,623 ($125,568) Depreciation and amortization of real estate
Slide 33: Calculation of NOI and Segment NOI
Calculation of NOI and Segment NOI ($ in thousands) For the Three Months Ended Twelve Months Ended March 31, December 31, 2022 2021 2021 Revenue Safety $ 414,248 $ 409,769 $ 1,693,968 Community 24,115 23,658 99,435 Properties 14,591 21,255 68,934 Other 34 36 279 Total revenues $ 452,988 $ 454,718 $
Slide 34: Calculation of EBITDA and Adjusted EBITDA
Calculation of EBITDA and Adjusted EBITDA Three Months Ended Twelve Months Ended March 31, December 31, ($ in thousands, except per share amounts) 2022 2021 2021 Net income (loss) $19,003 ($125,568) ($51,896) Interest expense 25,392 20,925 95,565 Depreciation and amortization 32,028 32,712 134,738 I