Corecivic, Inc. · NYSE:CXW
Corecivic — Investor Presentation (January 2021)
25 slides from Corecivic's investor presentation, January 2021
Slide 1: Investor Presentation
Investor Presentation January 2021
Slide 2: Today's Presenters
Today's Presenters Damon Hininger David Garfinkle President and Chief Executive Officer EVP and Chief Financial Officer • 25+ years of corrections experience • Began at CoreCivic in 2001 • Began at CoreCivic in 1992 as a Correctional Officer • Former experience in REITs, public accounting and • Acti
Slide 3: 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 4: 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 5: 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 6: 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 7: Free Cash Flow Generation
CoreCivic Has Announced Plan to Revoke its REIT Election Conversion Creates Substantial Free Cash Flow For Capital Management • Company began operating as a C-Corp effective January 1, 2021 Free Cash Flow Generation ‒ Cash dividend discontinued in 2020 C-Corp conversion ‒ Refocus of the Company's ca
Slide 8: 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 has pursued the sale of certain non-core real estates assets ‒ All 47 assets are outside of correctional real estate and leased to government agencies ‒ NOI of $30mm for the portfolio ‒ Initial estimates
Slide 9: Extensive History of Durable Earnings and Cash Flows
Extensive History of Durable Earnings and Cash Flows • Long term stable cash flows from government partners due to essential, mission ADJUSTED EBITDA ($MM)1 40% critical infrastructure and valued services $500 35% $441 $444 $427 − 40 year track record of providing government solutions with significa
Slide 10: 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 11: 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 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 Limited owned infrastructu
Slide 14: 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 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 1 2 Properties Seg
Slide 19: 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 20: 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 21: Appendix
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Slide 22: 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 $48,994 Non-controlling int
Slide 23: Calculation of FFO, Normalized FFO and AFFO
Calculation of FFO, Normalized FFO and AFFO For the Three Months Ended September 30, June 30, March 31, December 31, September 30, ($ 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 $48,994 Depreciation a
Slide 24: Calculation of NOI
Calculation of NOI ($ 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 25: 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