Corecivic, Inc. · NYSE:CXW
Corecivic — Investor Presentation (August 2020)
12 slides from Corecivic's investor presentation, Aug 5, 2020
Slide 1: C-Corp Conversion & Capital Allocation Strategy
C-Corp Conversion & Capital Allocation Strategy August 5, 2020
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: CoreCivic Will Revoke its REIT Election, Become a Taxable C-Corp
CoreCivic Will Revoke its REIT Election, Become a Taxable C-Corp and Pursue a New Capital Allocation Strategy • Company will convert from a REIT to C-Corp effective January 1, 2021 CONVERSION CREATES SUBSTANTIAL FREE CASH FLOW FOR CAPITAL MANAGEMENT ̶ Dividends paid to date are likely sufficient to
Slide 4: Extensive History of Durable Cash Flows, but Dividend Payments Contributed to Higher Leverage
Extensive History of Durable Cash Flows, but Dividend Payments Contributed to Higher Leverage • Long term stable cash flows from government partners due to essential, mission critical ADJUSTED EBITDA ($MM)1 infrastructure and valued services $441 $444 − 40 year track record of providing government s
Slide 5: Retained Capital Can be Used to Pay Down Debt and Buy Back Stock
Retained Capital Can be Used to Pay Down Debt and Buy Back Stock Cash available for reallocation includes ~$200mm from foregone annual common dividends, net proceeds expected from potential sale of non-core real estate assets, and reduced liquidity buffer required for C-Corp structure DEBT MATURITY
Slide 6: Illustrative Historical Capacity to Delever as a C-Corp
Illustrative Historical Capacity to Delever as a C-Corp Significant potential to delever using current earnings power at a modest additional tax cost NORMALIZED FFO ($ PER SHARE) TOTAL LEVERAGE RATIO Reduction: $0.32 $0.26 $0.29 Reduction: 0.4x 0.9x 1.3x $2.62 4.0x $2.38 $2.33 3.6x 3.7x $2.31 $2.06
Slide 7: Potential Growth Channels Upon Converting to a C-Corp
Potential Growth Channels Upon Converting to a C-Corp C-Corp conversion will allow CoreCivic to fund current growth initiatives (e.g. Properties) with internally generated funds and also pursue acquisitions of businesses not permitted under a REIT structure 1 2 Properties Segment Correctional Servic
Slide 8: Transformative Growth Opportunities: Alabama Department of Corrections, or ADOC
Transformative Growth Opportunities: Alabama Department of Corrections, or ADOC ALABAMA FACILITY OVERVIEW • Project includes the development, design, construction, and maintenance of three new ADOC correctional facilities across the State, which ADOC intends to lease from the Lessor • ADOC will prov
Slide 9: Appendix
Appendix B93 CorreCivic
Slide 10: Calculation of FFO, Normalized FFO and AFFO
Calculation of FFO, Normalized FFO and AFFO ($ in thousands, except per share amounts) THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, LAST TWELVE MONTHS 2020 2019 2020 2019 2019 June 30, 2020 Net income $22,186 $48,578 $55,424 $97,918 $188,886 $146,392 Depreciation and
Slide 11: EBITDA Calculation
EBITDA Calculation ($ in thousands) THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, LAST TWELVE MONTHS 2020 2019 2020 2019 2019 June 30, 2020 Net income $22,186 $48,578 $55,424 $97,918 $188,886 $146,392 Interest expense 23,873 21,316 48,428 43,226 86,661 91,863 Deprecia
Slide 12: Note to Supplemental Financial Information
Note to Supplemental Financial Information Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share metrics are non-GAAP financial measures. The Company believes that these measures are important operating measures that supplement d