Slide 1: Second Quarter 2018 Investor Presentation
Second Quarter 2018 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 flexible, cost-effective ways • We provide a broad range of solutions to government partners that serve the public good through three
Slide 5: National Portfolio with Geographic Diversity
National Portfolio with Geographic Diversity As of June 30, 2018, we owned 83 real estate assets and provided correctional management services at 7 additional facilities owned by government partners CoreCivic Safety • Own and operate 44 facilities, 64,064 beds • 7 managed-only facilities, 8,769 be
Slide 6: Segment Revenue and NOI
Segment Revenue and NOI CoreCivic continues to diversify our revenue and cash flows through expansion of our CoreCivic Community and Properties segments In total, CoreCivic Community and Properties accounted for 8.2% of revenue and 11.4% of net operating income for the three months ended June 30,
Slide 7: 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 approximately 58% of all privately owned correctional and detention capacity Approximately 40% larger than our nearest competitor 1,
Slide 8: CoreCivic Properties – Real Estate Solutions
CoreCivic Properties – Real Estate Solutions CoreCivic Properties offers a wide range of flexible 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 15 years Very
Slide 9: CoreCivic Community – Reducing Recidivism
CoreCivic Community – Reducing Recidivism 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 116-bed Austin Re
Slide 10: Diversified Customer Base
Diversified Customer Base As of June 30, 2018, CoreCivic had more than 125 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; and the Feder
Slide 11: 2018 Financial Guidance
2018 Financial Guidance
Slide 12: 2018 Financial Guidance
2018 Financial Guidance(1) Q3 2018 Guidance Low-End High-End Diluted EPS $ 0.37 $ 0.39 Adjusted Diluted EPS(2) $ 0.37 $ 0.39 Normalized FFO per diluted share(2) $ 0.57 $ 0.59 AFFO per diluted share(2) $ 0.55 $ 0.57 Adjusted EBITDA(2) (in $ 000s) $ 98,400 $ 100,400 Full Year 2018 Guidance Low-End Hig
Slide 13: Recent Contract Awards, M&A Activity and Growth Opportunities
Recent Contract Awards, M&A Activity and Growth Opportunities
Slide 14: New & Expanded Partnerships - Recent Contract Awards
New & Expanded Partnerships - Recent Contract Awards • Immigration and Customs Enforcement enters into an indefinite term contract to house up to 1,000 adult detainees at our 3,060-bed La Palma Correctional July 2018 Center • The U.S. Marshals Service enters into a new two-year contract, with unlimi
Slide 15: CoreCivic Community Growth - Pursuing More M&A Opportunities
CoreCivic Community Growth - Pursing More M&A Opportunities State(s) of Acquisition Acquisition Date of Acquisition # of Facilities Operation # of Beds Price Correctional Alternatives, Inc. July 2013 2 California 603 $36.5m Oklahoma, Texas, Avalon Correctional Services, Inc. October 2015 11 3,157 $1
Slide 16: CoreCivic Properties Growth - Pursuing More M&A Opportunities
CoreCivic Properties Growth - Pursing More M&A Opportunities State(s) of Square Acquisition Acquisition Date of Acquisition # of Facilities Operation Footage Price 4 Facility RRC Portfolio August 2015 4 Pennsylvania 72,000 $13.8m Long Beach, CA June 2016 1 California 16,000 $7.7m Stockton Female Com
Slide 17: Actively Marketing Available Capacity
Actively Marketing Available Capacity As of June 30, 2018, we had eight idle prison facilities, totaling 9,814 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 Mi
Slide 18: Publicly Known Opportunities in the Corrections & Detention Market
Publicly Known Opportunities in the Corrections & Detention Market Oklahoma • We are actively marketing a potential long-term lease of our currently idled 2,160-bed Diamondback Correctional Facility. Colorado • We are in discussions for a potential lease of our currently idled 752-bed Huerfano Count
Slide 19: CoreCivic Properties Growth - Lease & Development Opportunities
CoreCivic Properties Growth - Lease & Development Opportunities • We are actively pursuing opportunities to lease existing, idle correctional assets in Colorado, Minnesota and Oklahoma Facility Location Bed Capacity Huerfano County Correctional Center Colorado 752 Prairie Correctional Facility Minne
Slide 20: Significantly Diversified Sources of Revenue
Significantly Diversified Sources of Revenue Percentage of Total Revenue Percentage of Total Revenue Twelve Months Ended December 31, 2010 Six Months Ended June 30, 2018 California 13% (out-of-state) 5% 15% BOP 6% Managed 21% - 23 contracts & 28,636 beds Only 9% - 7 contracts & 8,769 beds CoreCivic
Slide 21: Strong Balance Sheet and Cash Flow
Strong Balance Sheet and Cash Flow
Slide 22: 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 as of June 30, 2018 $325M Sr. Notes @ 4.125%, due Apr. 2020 $700M $250M Sr. Notes @ 5.000%, due Oct. 2022 $608M $600M $350M Sr. Notes @ 4.625%, due May 2023 $250M Sr. N
Slide 23: Flexibility with Limited Exposure to Interest Rate Fluctuations
Flexibility with Limited Exposure to Interest Rate Fluctuations • Conservative leverage profile with strong coverage ratios has led to low borrowing rates Average effective interest rate of 4.90% for the second quarter of 2018 Only $294 million in floating rate debt as of June 30, 2018, reduces
Slide 24: Appendix
Appendix
Slide 25: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS ($ in thousands, except per share amounts) For the Quarter Ended For the Six Months Ended June 30, June 30, 2018 2017 2018 2017 Net income $ 39,197 $ 45,475 $ 76,974 $ 95,522 Special items: Expenses associated with debt refinancing transactions 1,016 - 1,016 -
Slide 26: 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 Six Months Ended June 30, June 30, 2018 2017 2018 2017 Net income $ 39,197 $ 45,475 $ 76,974 $ 95,522 Depreciation and amortization of real estate assets 24,921 23,956 49,329 47,655 I
Slide 27: Calculation of NOI
Calculation of NOI ($ in thousands) For the Quarter Ended For the Six Months Ended June 30, June 30, 2018 2017 2018 2017 Revenue Safety $ 413,208 $ 408,781 $ 817,706 $ 827,464 Community 24,718 17,579 49,518 34,633 Properties 12,001 10,016 23,616 19,888 Other 2 17 5 92 Total revenues $ 449,929 $ 436,
Slide 28: Calculation of EBITDA and Adjusted EBITDA
Calculation of EBITDA and Adjusted EBITDA ($ in thousands) For the Quarter Ended For the Six Months Ended June 30, June 30, 2018 2017 2018 2017 Net income $ 39,197 $ 45,475 $ 76,974 $ 95,522 Interest expense 19,455 16,949 38,730 33,651 Depreciation and amortization 38,560 36,800 76,649 73,057 Income
Slide 29: Reconciliation to 2018 Guidance
Reconciliation to 2018 Guidance ($ in thousands, except per share amounts) Third Quarter 2018 Full-Year 2018 Low High Low High Net income $ 43,750 $ 45,750 $ 170,200 $ 174,700 Expenses associated with mergers and acquisitions 250 250 1,800 1,800 Asset impairments - - 1,500 1,500 Expenses associated
Slide 30: & coreCivic
& coreCivic