Slide 1: Investor Overview Fourth Quarter 2019
Investor Overview Fourth Quarter 2019
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: Table of Contents
Table of Contents CoreCivic at a Glance 3-5 Investment Thesis 6 Strong Growth Fundamentals Without Near-Term Capital Needs for Growth 7-10 Conservative Balance Sheet 11 Full-Year 2020 Financial Guidance 12 Value Proposition: Mission-Critical Nature of Real Estate Assets 13-16 ESG and Rehabilitation
Slide 4: CoreCivic Operates at the Intersection of Government and Real Estate
CoreCivic Operates at the Intersection of Government and Real Estate Compelling Investment Opportunity… CoreCivic is a diversified government-solutions Dividend yield of REIT with the scale and differentiated expertise to solve the tough challenges that governments face in flexible, cost-effective w
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 • 85% of NOI in 2019 • 14.7M square feet • 72,689 correctional/detention beds • Recently activated or leased 3 previously idle facilities, representing 2,988 be
Slide 6: CoreCivic's Business Segments are Complementary
CoreCivic's Business Segments are Complementary Safety Properties Community Government tenants Customers 2019 Business Mix(1) 85% 10% 5% (% 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: Investment Thesis
Investment Thesis Leader in government real estate solutions, with differentiated deal-origination and property management capabilities Complementary segment assets and operating strategies, combined with deep industry expertise, deliver stable cash flows Strong fundamental demand from federal and s
Slide 8: Recent Contract Wins
Recent Contract Wins New Contract Awards Date Details The state of Mississippi enters into a 375-bed emergency contract at our 2,672-bed Tallahatchie County Correctional Facility, which January 2020 contract was subsequently increased to up to 1,000-beds December 2019 The Commonwealth of Kentucky en
Slide 9: Significant Market Opportunities Available…
Significant Market Opportunities Available… Strong pipeline to bolster cash flow generation SAFETY Continuing demand from USMS, ICE and states January 2020: The state entered an emergency contract to house up to 375 Mississippi inmates at our 2,672-bed Tallahatchie County Correctional Facility, the
Slide 10: …With Capacity to Meet Government Demand
…With Capacity to Meet Government Demand As of December 31, 2019: 5 idle prison and detention facilities, including 6,826 beds Facility State Design Date Idled • Recent Developments: Capacity New federal contracts awarded in May 2019 Eden Detention Center TX 1,422 Recently resulting in a total of
Slide 11: Attractive M&A Opportunities
Attractive M&A Opportunities • We continue to pursue attractive M&A opportunities to expand our CoreCivic Community and Properties portfolios • Current market valuation of our debt and equity securities require that we temper the pace of our M&A activity and focus on opportunities with above-average
Slide 12: Conservative Balance Sheet to Support Long Term Strategy
Conservative Balance Sheet to Support Long Term Strategy Debt Maturity Schedule as of December 31, 2019 Significant liquidity of $505 million as of $1,000M $904M December 31, 2019 $800M Strong cash flow growth and very well- $600M covered dividend allow for deleveraging $400M $293M $266M $228M $
Slide 13: 2020 Financial Guidance
2020 Financial Guidance(1) 2018 Actual 2019 Actual Full-Year 2020 Financial Guidance Results Results Low-End Mid-Point High-End Diluted EPS $ 1.34 $ 1.59 $ 1.34 $ 1.39 $ 1.43 Adjusted Diluted EPS(2) $ 1.45 $ 1.72 $ 1.38 $ 1.43 $ 1.47 Normalized FFO per diluted share(2) $ 2.31 $ 2.62 $ 2.30 $ 2.35 $
Slide 14: Mission-Critical Nature of Our Real Estate Assets
Mission-Critical Nature of Our Real Estate Assets 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 infrastructure Aging and
Slide 15: Essential Government Partner
Essential Government Partner State Partners Properties Federal Partners • Strong, long-standing relationships with state partners • Highly diversified business segment, focusing on stable, • Federal Partners have limited alternatives to privately-run and key decision makers long-term leases and apol
Slide 16: Case Study: Replacement Facility for the State of Kansas
Case Study: Replacement Facility for the State of Kansas • In 2017, the State of Kansas released a procurement for the Design-Build-Finance-Lease of a replacement prison for its Lansing Correctional Facility, the state's oldest and largest facility. The Lansing Facility was originally constructed in
Slide 17: Case Study: Replacement Facility for the State of Kansas (continued)
Case Study: Replacement Facility for the State of Kansas (continued) • In January 2020, CoreCivic completed construction of a new replacement facility: Larger cells meeting modern accreditation standards Fully ADA compliant to State and Federal standards (Americans with Disabilities Act) Desig
Slide 18: Unprecedented Commitment to ESG within the Corrections Industry
Unprecedented Commitment to ESG within the Corrections Industry • CoreCivic released the industry’s first Environmental, Social and Governance (ESG) report in May 2019, demonstrating our commitment to transparency and accountability and providing more robust disclosures to show how we better the pub
Slide 19: 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 20: CoreCivic is Delivering Evidence Based Programs with Measurable Goals
CoreCivic is Delivering Evidence Based Programs with Measurable Goals Treatment and Chaplaincy and Victim Impact Educational Services Reentry Services Behavioral Programs Religious Services Programs 5-Year Goals: High school equivalency 8,040 75% 2018: 930 and 10% 5-Year Goals: Goal By the end of 20
Slide 21: Transparent Government Oversight and Commitment to Quality
Transparent Government Oversight and Commitment to Quality • Hundreds of full-time federal and state employees report to our facilities daily, overseeing contract compliance at correctional and detention facilities • Compliance with extensive standards and certifications, subject to independent oper
Slide 22: 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 23: 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, • Chairman and CEO, • President and CEO, • Principal, LS Advisory • Previous EVP, CoreCivic • Former E
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 Year Ended December 31, December 31, 2019 2018 2019 2018 Net income $ 41,974 $ 41,239 $ 188,886 $ 159,207 Special items: Expenses associated with debt refinancing transactions 602 - 602 1,
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 Year Ended December 31, December 31, 2019 2018 2019 2018 Net income $ 41,974 $ 41,239 $ 188,886 $ 159,207 Depreciation and amortization of real estate assets 27,036 26,982 107,402 101
Slide 27: Calculation of NOI
Calculation of NOI ($ in thousands) For the Quarter Ended For the Year Ended December 31, December 31, 2019 2018 2019 2018 Revenue Safety $ 447,413 $ 435,979 $ 1,779,958 $ 1,675,998 Community 31,145 27,190 123,265 101,841 Properties 19,224 19,002 77,307 57,899 Other 27 22 159 28 Total revenues $ 497
Slide 28: Calculation of EBITDA and Adjusted EBITDA
Calculation of EBITDA and Adjusted EBITDA ($ in thousands) For the Quarter Ended For the Year Ended December 31, December 31, 2019 2018 2019 2018 Net income $ 41,974 $ 41,239 $ 188,886 $ 159,207 Interest expense 22,033 22,518 86,661 82,129 Depreciation and amortization 36,804 40,387 144,572 156,501
Slide 29: Reconciliation to 2020 Guidance
Reconciliation to 2020 ($ in thousands, except per share amounts) Guidance First Quarter 2020 Full-Year 2020 Low High Low High Net income attributable to common stockholders $ 27,585 $ 31,585 $ 160,088 $ 171,088 Non-controlling interest 590 590 2,362 2,362 Net income 28,175 32,175 162,450 173,450 Ex