Slide 1: Investor Presentation Third Quarter 2020
Investor Presentation Third Quarter 2020
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 nearly 19M square feet of real estate used by government SAFETY • 83.5% of NOI for the nine-months ended September 30, 2020 • 14.6M square feet • 72,489 correctional/detention beds • In 2020, we have been awarded 3 new Safet
Slide 5: CoreCivic's Business Segments are Complementary
CoreCivic's Business Segments are Complementary Safety Properties Community Government tenants Customers 2020 Business Mix(1) 84% 13% 3% (% of NOI) Strong fundamental demand from federal and Government entities require purpose- States and localities place high value Industry Trends state partners bu
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 ADJUSTED EBITDA ($MM)1 40% critical infrastructure and valued services $500 35% $441 $444 $427 $423 $418 − 40 year track record of providing government solutions with
Slide 7: Current Financial Performance
Current Financial Performance September 30, June 30, March 31, December 31, For the quarter ended 2020 2020 2020 2019 Adjusted Diluted EPS $0.28 $0.33 $0.30 $0.36 Normalized FFO Per Share $0.52 $0.56 $0.54 $0.59 AFFO Per Share $0.49 $0.57 $0.58 $0.58 Adjusted EBITDA (in $MM) $94.6MM $101.1MM $100.4M
Slide 8: Conservative Balance Sheet to Support Long Term Strategy
Conservative Balance Sheet to Support Long Term Strategy Debt Maturity Schedule as of September 30, 2020 Significant liquidity of approximately $612 $1,200M million as of September 30, 2020 $1,000M $996M $800M Strong cash flow to reduce debt leverage $600M to target of 2.25x to 2.75x net debt-to
Slide 9: Market Updates & Recent Developments
Market Updates & Recent Developments
Slide 10: 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 Limited owned infrastructu
Slide 11: …And Has Resulted in Many New Contract Wins
…And Has Resulted in Many New Contract Wins New Contract Awards Date Details The Federal Bureau of Prisons (BOP) enters into a new contract for residential reentry and home confinement services at our 289-bed October 2020 Turley Residential Center and 494-bed Oklahoma Reentry Opportunity Center, bot
Slide 12: 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 13: 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 14: 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 15: 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 1 2 Properties Seg
Slide 16: Impact of COVID-19
Impact of COVID-19 The COVID-19 global pandemic has had a significant impact on our day-to-day operations. We provide on our website weekly updates to allow stakeholders to see how we are managing the crisis while supporting our employees, communities, and those in our care. Our financial performanc
Slide 17: 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 • Any lifting of restrictions on non- essential travel is expected to drive up activity at the borde
Slide 18: Historically Stable to Growing Needs from ICE
Historically Stable to Growing Needs from ICE • ICE has experienced stable to growing capacity needs for the last two decades • ICE does not own their detention capacity nor do they operate detention facilities • Funding levels for ICE, approved by Congress, increased during the terms of each of the
Slide 19: Unprecedented Commitment to ESG within the Corrections Industry
Unprecedented Commitment to ESG within the Corrections Industry • CoreCivic released the Company's second Environmental, Social and Governance (ESG) report in May 2020, demonstrating our continued commitment to transparency and accountability and providing more robust disclosures to show how we bett
Slide 20: 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 21: 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 22: 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 23: 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 24: 2019 Quality Assurance & Government Oversight Highlights
2019 Quality Assurance & Government Oversight Highlights For additional information on CoreCivic's Quality Assurance program and the robust government oversight at our facilities, please review our latest Environmental, Social and Governance (ESG) reports: https://www.corecivic.com/esg-report c 23
Slide 25: 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 26: Diverse Board of Directors with Relevant Expertise
Diverse Board of Directors 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 EVP, CoreCivic • F
Slide 27: Appendix
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Slide 28: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS For the Three Months Ended September 30, June 30, March 31, December 31, September 30, ($ in thousands, except per share amounts) 2020 2020 2020 2019 2019 Net income attributable to common stockholders $26,717 $22,186 $32,057 $41,974 $48,994 Non-controlling int
Slide 29: Calculation of FFO, Normalized FFO and AFFO
Calculation of FFO, Normalized FFO and AFFO For the Three Months Ended September 30, June 30, March 31, December 31, September 30, ($ in thousands, except per share amounts) 2020 2020 2020 2019 2020 Net income attributable to common stockholders $26,717 $22,186 $33,238 $41,974 $48,994 Depreciation a
Slide 30: Calculation of NOI
Calculation of NOI ($ in thousands) For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Revenue Safety $ 420,032 $ 457,817 $ 1,281,914 $ 1,332,545 Community 24,067 30,848 80,670 92,120 Properties 24,134 19,828 69,296 58,083 Other 33 29 128 132 Total r
Slide 31: Calculation of EBITDA and Adjusted EBITDA
Calculation of EBITDA and Adjusted EBITDA Three Months Ended Nine Months Ended Year Ended Last Twelve Months Ended September 30, September 30, ($ in thousands, except per share amounts) 2020 2019 2020 2019 December 31, 2019 September 30, 2020 Net income $26,717 $48,994 $82,141 $146,912 $188,886 $124