Slide 1: Investor Presentation First Quarter 2024
Investor Presentation First Quarter 2024
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 Infrastructure
CoreCivic Operates at the Intersection of Government and Real Estate Infrastructure Company Overview Compelling Investment Opportunity… • Diversified government-solutions company with the scale and differentiated expertise to solve the tough challenges that • Largest private owner of real estate uti
Slide 4: Largest Private Owner of Real Estate Utilized by Government Agencies
Largest Private Owner of Real Estate Utilized by Government Agencies Manage 15.8 million(1) square feet of real estate used by government SAFETY • 86.3% of NOI for the quarter ended March 31, 2024 • 13.2 million(1) square feet • 64,729 correctional/detention beds • 7 idle prison facilities, includin
Slide 5: CoreCivic's Business Segments are Complementary
CoreCivic's Business Segments are Complementary Safety Properties Community Government tenants Customers 2024 Business Mix(1) 86.3% 9.1% 4.6% (% of NOI) Strong fundamental demand from federal, state, Government entities require purpose-built States and localities place high value on Industry Trends
Slide 6: Current Financial Performance
Current Financial Performance For the quarter ended March 31, December 31, September 30, June 30, March 31, 2024 2023 2023 2023 2023 Net Income $9.5MM $26.5MM $13.9MM $14.8MM $12.4MM Diluted EPS $0.08 $0.23 $0.12 $0.13 $0.11 Adjusted Diluted EPS(1) $0.25 $0.23 $0.14 $0.12 $0.13 Normalized FFO Per Sh
Slide 7: Key Factors Impacting 2022, 2023 and 2024 Financial Results
Key Factors Impacting 2022, 2023 and 2024 Financial Results Impacted Business Segments COVID-19 had a significant impact on our occupancy, including most notably due to population reductions from ICE through May 2023. SAFETY COMMUNITY During the COVID-19 pandemic, we experienced labor shortages
Slide 8: Extensive History of Durable Earnings and Cash Flows
Extensive History of Durable Earnings and Cash Flows • Long term stable cash flows from government partners due to essential, mission critical Adjusted EBITDA ($ in millions)(1) infrastructure and valued services 40% − 40-year+ track record of providing government $500 35% $441 $444 solutions with p
Slide 9: Occupancy Recovery Could Drive Significant Earnings Growth
Occupancy Recovery Could Drive Significant Earnings Growth The COVID-19 pandemic has had a significant impact on the occupancy in our Safety and Community segments. A recovery in occupancy to pre-pandemic levels could provide significant growth in earnings and cash flows. Facility Occupancy, 2018-
Slide 10: Debt Reduction Due to Multi-Year Capital Allocation Strategy
Debt Reduction Due to Multi-Year Capital Allocation Strategy Debt Maturity Schedule – June 30, 2020 Debt Maturity Schedule – March 31, 2024 ($ in millions) ($ in millions) $1,400 $1,400 $382.7 $1,200 $1,200 $1,000 $1,000 $800 $800 $157.5 $500.0 $600 $600 $400 $294.0 $266.4 $400 $631.0 $227.9 $249.9
Slide 11: Positioned for Long-Term Success and Value Creation
Positioned for Long-Term Success and Value Creation Significant liquidity of approximately $368.4 million as of March 31, 2024 On March 12, 2024, announced the completion of an underwritten registered public offering of $500 million aggregate principal amount of 8.250% senior unsecured notes due
Slide 12: Active Share Repurchase Plan & History of Returning Capital to Shareholders
Active Share Repurchase Plan & History of Returning Capital to Shareholders • Since 2009, CoreCivic has returned $2.3 billion in capital to shareholders • As a C-Corp: − 2009-2011: We returned $491 million through a stock buyback STOCK BUYBACKS, DIVIDENDS AND LEVERAGE ($MM) program − 2012: We return
Slide 13: Market Updates & Recent Developments
Market Updates & Recent Developments
Slide 14: 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 15: And Has Resulted in Many New Contract Wins
…And Has Resulted in Many New Contract Wins New Contract Awards Date Details The state of Wyoming enters into a new contract to house up to 240 inmates at our 2,672-bed Tallahatchie County Correctional Facility in Tutwiler, November 2023 Mississippi. Harris County, Texas enters into a new contract t
Slide 16: 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 40+ year history Early Stages Rapid Growth Phase Current Market • Operational Cost Efficiencies • Rapid Population Growth & Lac
Slide 17: 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 Capacity State Details In June 2023, The state of Oklahoma entered into a 5.75-year lease agreement at our 1,670-bed Allen Gambl
Slide 18: America's Prisons: The Aging Infrastructure Crisis
America's Prisons: The Aging Infrastructure Crisis • The majority of America's inmates are housed in facilities that are 25 to 45 years old • Public prison facilities will typically need to replace major components of infrastructure around the 20-year mark • As a result of delayed/deferred maintenan
Slide 19: Potential Growth Channels & Opportunities
Potential Growth Channels & Opportunities Multiple opportunities in the market to drive future growth, some of which can be realized due to our decision to convert to a taxable C-Corp in 2021, allowing CoreCivic to fund future growth initiatives with internally generated cash flows Properties Segmen
Slide 20: Southwest Border Apprehensions Remain Elevated
Southwest Border Apprehensions Remain Elevated • Apprehension rates along the United States Southwest border remain elevated—hitting multi-decade highs during the federal fiscal years 2022 and 2023 and into the start of 2024. • Implemented in March 2020, Title 42, an emergency power granted to the E
Slide 21: Unprecedented Commitment to ESG within the Corrections Industry
Unprecedented Commitment to ESG within the Corrections Industry • CoreCivic released the Company’s sixth Environmental, Social and Governance (ESG) report in April 2024, demonstrating the continued commitment to transparency and accountability and providing more robust disclosures to show how the Co
Slide 22: 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 23: Human Rights – CoreCivic's Approach and Goals
Human Rights – CoreCivic's Approach and Goals Human rights are foundational in all that we do, therefore the salient rights of residents and employees are considered throughout our ESG and corporate strategies. We recognize the inherent dignity of every person and the benefits of promoting a culture
Slide 24: CoreCivic's Quality Assurance and Government Oversight
CoreCivic's Quality Assurance and Government Oversight CoreCivic facilities’ operations are subject to 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 communication
Slide 25: CoreCivic's Quality Assurance and Government Oversight
CoreCivic's Quality Assurance and Government Oversight CoreCivic facilities are also 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 26: CoreCivic's Health Services – Care Delivery
CoreCivic's Health Services – Care Delivery Whether CoreCivic directly provides health services or coordinates with partner agencies and third-party providers, we are committed to providing quality care in line with correctional health standards set by organizations like National Commission on Corre
Slide 27: CoreCivic's Commitment to Promoting Diversity, Equity and Inclusion
CoreCivic's Commitment to Promoting Diversity, Equity and Inclusion We believe that diversity, equity and inclusion drives the quality of our operations, increases employee engagement and fortifies a culture of dignity and respect. CoreCivic leans on our Diversity, Equity and Inclusion Advisory Coun
Slide 28: Highly Qualified, Proven Management Team
Highly Qualified, Proven Management Team Damon T. Hininger David Garfinkle Patrick Swindle President and Chief Executive Officer EVP and Chief Financial Officer EVP and Chief Operating Officer • 30+ years of corrections experience • Began at CoreCivic in 2001 • Began at CoreCivic in 2007 • Began at
Slide 29: Diverse Board of Directors (Nine Independent) with Relevant Expertise
Diverse Board of Directors (Nine Independent) with Relevant Expertise Mark A. Emkes Alexander R. Fischer Robert J. Dennis Damon T. Hininger Stacia Hylton • Chairman of the Board • Partner, New Albany Company • Former Chairman and CEO, • President and CEO, CoreCivic • Principal, LS Advisory • Former
Slide 30: Appendix
& coreCivic Appendix
Slide 31: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS For the Three For the Three For the Three For the Three For the Three Months Ended Months Ended Months Ended Months Ended Months Ended Period March 31, December 31, September 30, June 30, March 31, ($thousands, except per share amounts) 2024 2023 2023 2023 2023
Slide 32: Calculation of FFO, Normalized FFO and AFFO
Calculation of FFO, Normalized FFO and AFFO For the Three For the Three For the Three For the Three For the Three Months Ended Months Ended Months Ended Months Ended Months Ended Period March 31, December 31, September 30, June 30, March 31, ($thousands, except per share amounts) 2024 2023 2023 2023
Slide 33: Calculation of NOI and Segment NOI
Calculation of NOI and Segment NOI For the Three For the Three For the Three For the Three For the Three Months Ended Months Ended Months Ended Months Ended Months Ended Period March 31, December 31, September 30, June 30, March 31, ($thousands, except per share amounts) 2024 2023 2023 2023 2023 Rev
Slide 34: Calculation of EBITDA and Adjusted EBITDA
Calculation of EBITDA and Adjusted EBITDA For the Three For the Three For the Three For the Three For the Three Months Ended Months Ended Months Ended Months Ended Months Ended Period March 31, December 31, September 30, June 30, March 31, ($thousands, except per share amounts) 2024 2023 2023 2023 2