Slide 1: Third Quarter 2017 Investor Presentation
Third Quarter 2017 Investor Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements As defined within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, certain statements herein may be considered forward-looking statements that are subject to risks and uncertainties tha
Slide 3: About CoreCivic
About CoreCivic
Slide 4: Who We Are
Who We Are • Established in 1983, CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in cost-effective ways • We provide a broad range of solutions to government partners that serve the public good through three business
Slide 5: National Portfolio with Geographic Diversity
National Portfolio with Geographic Diversity As of September 30, 2017, we owned 79 real estate assets and provided correctional management services at 7 additional facilities owned by government partners CoreCivic Safety • 44 owned facilities, 64,064 beds • 7 managed-only facilities, 8,769 beds
Slide 6: CoreCivic Safety – A National Leader
CoreCivic Safety – A National Leader CoreCivic is the largest non-government owner of correctional and detention real estate in the United States We believe we own nearly 57% of all privately owned correctional and detention capacity Approximately 40% larger than our nearest competitor Owned Cor
Slide 7: CoreCivic Properties – Real Estate Solutions
CoreCivic Properties – Real Estate Solutions CoreCivic Properties offers a wide range of innovative, cost-saving government real estate solutions Deep expertise and experience • We believe we are the largest developer of mission-critical, criminal justice center real estate projects over the past
Slide 8: CoreCivic Community – A Growing Network
CoreCivic Community – A Growing Network CoreCivic Community is a rapidly growing network of residential reentry centers whose mission is to help address America's recidivism crisis. In the last 4 years CoreCivic Community expanded to be the second largest provider in the market 6.1% of Adjusted
Slide 9: High Quality, Diverse Customer Base
High Quality, Diverse Customer Base As of September 30, 2017, CoreCivic had more than 100 agreements with federal, state and local agencies Further diversification within federal agency customers: • > 100 potential customers within federal agencies: 94 U.S. Marshals districts; 24 ICE field offices
Slide 10: Strong Balance Sheet and Cash Flow
Strong Balance Sheet and Cash Flow
Slide 11: Strong Balance Sheet and Simple Capital Structure
Strong Balance Sheet and Simple Capital Structure Our low cost of capital is a competitive advantage Debt Maturity Schedule $325M Sr. Notes @ 4.125%, due Apr. 2020 $1,000M $250M Sr. Notes @ 5.000%, due Oct. 2022 $802M $800M $350M Sr. Notes @ 4.625%, due May 2023 $900M Revolver @ LIBOR + 1.50
Slide 12: Balance Sheet Flexibility
Balance Sheet Flexibility • Current dividend policy pegged to ~80% of AFFO, or ~77% of Normalized FFO • Median FFO payout ratio for all equity REITs is 73%(1) • Abundant opportunities to deploy capital to grow and diversify cash flows, and to create shareholder value CoreCivic Community acquisitio
Slide 13: Proven Strategy for Growth
Proven Strategy for Growth We have consistently grown our real estate portfolio through various market cycles CoreCivic Safety operates over 64,000 company owned correctional and detention beds CoreCivic Community strategy began in 2013 – now represents approximately 4,800 beds CoreCivic Prope
Slide 14: Business Development Update
Business Development Update
Slide 15: Recent Contract Awards
Recent Contract Awards November 2017 • Hamilton County, Tennessee enters into a new contract for the 1,046-bed Silverdale Detention Center October 2017 • The State of Nevada enters into a new contract to house up to 200 offenders at our 1,896-bed Saguaro Correctional Facility in Arizona September 20
Slide 16: Actively Marketing Available Capacity
Actively Marketing Available Capacity As of September 30, 2017, we had eight idle prison facilities, totaling 9,720 beds, that we are actively marketing to potential government partners. Utilizing available bed capacity up to standard operating capacity could improve cash flow and earnings potential
Slide 17: Residential Reentry Acquisition Summary
Residential Reentry Acquisition Summary State(s) of Acquisition Acquisition Date of Acquisition # of Facilities Operation # of Beds Price Correctional Alternatives, Inc. July 2013 2 California 603 $36.5m Pennsylvania Portfolio August 2015 4 Pennsylvania 605 $13.8m Oklahoma, Texas, Avalon Correctiona
Slide 18: Financial Guidance
Financial Guidance
Slide 19: 2017 Financial Guidance
2017 Financial Guidance(1) Q4 2017 Guidance Low-End High-End Diluted EPS $ 0.35 $ 0.36 Adjusted Diluted EPS(2) $ 0.35 $ 0.37 Normalized FFO per diluted share(2) $ 0.55 $ 0.57 AFFO per diluted share(2) $ 0.53 $ 0.54 Adjusted EBITDA(2) (in $ 000s) $ 94,800 $ 95,800 Full Year 2017 Guidance Low-End High
Slide 20: Appendix
Appendix
Slide 21: Utilizing Available Capacity Drives Earnings Growth
Utilizing Available Capacity Drives Earnings Growth Average Estimated Potential Annual Total Beds Available Margin(1) Incremental EBITDA Owned and Controlled Vacant Prison Capacity(2) 9,720 $ 23.57 $ 83,621,646 Owned and Controlled beds at Facilities with > 100 beds available(3) 5,205 $ 23.57 44,778
Slide 22: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS ($ in thousands, except per share amounts) For the Quarter Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net income $ 41,178 $ 55,340 $ 136,700 $ 159,230 Special items: Expenses associated with mergers and acquisitions 1,093 11
Slide 23: Calculation of FFO, Normalized FFO and AFFO
Calculation of FFO, Normalized FFO and AFFO ($ in thousands, except per share amounts) For the Quarter Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net income $ 41,178 $ 55,340 $ 136,700 $ 159,230 Depreciation of real estate assets 23,762 23,684 71,417 70,409 Impai
Slide 24: Calculation of NOI
Calculation of NOI ($ in thousands) For the Quarter Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue owned and controlled properties $ 392,423 $ 422,089 $ 1,171,893 $ 1,230,418 Operating expenses owned and controlled properties (269,283) (275,539) (791,919) (80
Slide 25: Calculation of EBITDA and Adjusted EBITDA
Calculation of EBITDA and Adjusted EBITDA ($ in thousands) For the Quarter Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net income $ 41,178 $ 55,340 $ 136,700 $ 159,230 Interest expense, net 17,029 16,937 50,141 51,277 Depreciation and amortization 36,507 42,924 10
Slide 26: Reconciliation to 2017 Guidance
Reconciliation to 2017 Guidance ($ in thousands, except per share amounts) Fourth Quarter 2017 Full-Year 2017 Low High Low High Net income $ 41,200 $ 43,200 $ 177,900 $ 179,900 Expenses associated with mergers and acquisitions 500 500 2,000 2,000 Asset impairments - - 600 600 Adjusted net income $ 4
Slide 27: CoreCivic
& coreCivic