Slide 1: Investor Presentation First Quarter 2021
Investor Presentation First Quarter 2021
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
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 4: Largest Private Owner of Real Estate Utilized by Government Agencies
Largest Private Owner of Real Estate Utilized by Government Agencies Manage nearly 18M square feet of real estate used by government SAFETY • 85.6% of NOI for the quarter ended March 31, 2021 • 14.3M square feet • 70,003 correctional/detention beds • In 2020, we have been awarded 3 new Safety contra
Slide 5: CoreCivic's Business Segments are Complementary
CoreCivic's Business Segments are Complementary Safety Properties Community Government tenants Customers 2021 Business Mix(1) 85.6% 12.3% 2.1% (% of NOI) Strong fundamental demand from federal and Government entities require purpose- States and localities place high value Industry Trends state partn
Slide 6: 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 $423 $418 − 40 year track record of providing government solutions with
Slide 7: Current Financial Performance
Current Financial Performance March 31, December 31, September 30, June 30, March 31, For the quarter ended 2021 2020 2020 2020 2020 Adjusted Diluted EPS(1) $0.24 $0.30 $0.21 $0.23 $0.23 Normalized FFO Per Share(1) $0.44 $0.53 $0.44 $0.47 $0.46 AFFO Per Share(1) $0.47 $0.48 $0.41 $0.48 $0.50 Adjuste
Slide 8: Conservative Balance Sheet to Support Long-Term Strategy
Conservative Balance Sheet to Support Long-Term Strategy Significant liquidity of approximately $755 million as of March 31, 2021 35.7% 3.8x Net Debt/ Fixed Charge Coverage(1)(2) Undepreciated Fixed Assets Strong cash flow to reduce debt leverage to target of 2.25x to 2.75x net debt-to- 3.7x 87%
Slide 9: Debt Maturity Schedule Following April 2021 Bond Issuance
Debt Maturity Schedule Following April 2021 Bond Issuance Debt Maturity Schedule - March 31, 2021 Debt Maturity Schedule - March 31, 2021 Pro Forma For Debt Issuance (In $ millions) (In $ millions) $1,000 $570.0 $1,000 $900 $900 $800 $800 $400.0 $700 $700 $600 $600 $465.5 $500 $500 $400 $400 $293.0
Slide 10: 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 11: Market Updates & Recent Developments
Market Updates & Recent Developments
Slide 12: 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 13: And Has Resulted in Many New Contract Wins
…And Has Resulted in Many New Contract Wins New Contract Awards Date Details The state of Alabama awarded two new 30-year lease agreements for the development of two correctional facilities, to be operated by the Alabama Department of February 2021 Corrections, pending the close of project-specific
Slide 14: 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 15: 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 16: 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 17: 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 18: 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 19: Southwest Border Apprehensions Remain Elevated
Southwest Border Apprehensions Remain Elevated • Even though the international borders are effectively shutdown to non-essential travel, apprehension rates along our Southwest border remains elevated • Any lifting of restrictions on non- essential travel is expected to drive up activity at the borde
Slide 20: Unprecedented Commitment to ESG within the Corrections Industry
Unprecedented Commitment to ESG within the Corrections Industry • CoreCivic released the Company's third Environmental, Social and Governance (ESG) report in May 2021, demonstrating our continued commitment to transparency and accountability and providing more robust disclosures to show how we bette
Slide 21: 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 22: CoreCivic's Quality Assurance and Government Oversight
CoreCivic's Quality Assurance and Government Oversight CoreCivic facilities’ operations are subject to significant 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 c
Slide 23: CoreCivic's Quality Assurance and Government Oversight
CoreCivic's Quality Assurance and Government Oversight CoreCivic facilities also are 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 24: Operational Transparency Through Multiple Levels of Oversight
Operational Transparency Through Multiple Levels of Oversight Quality Assurance Audit Hotlines On-Site Contract Monitors Accrediting Organizations The quality assurance division, Residents, employees, and visitors have Many of our facilities have government The American Correctional Association inde
Slide 25: 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 26: 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, • Former Chairman and CEO, • President and CEO, • Principal, LS Advisory • Previous EVP, CoreCivic • F
Slide 27: Appendix
er senna siuaials Nyy, ~ een art zi E CoreCivic
Slide 28: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS For the Three Months Ended March 31, December 31, September 30, June 30, March 31, ($ in thousands, except per share amounts) 2021 2020 2020 2020 2020 Net income (loss) attributable to common stockholders ($125,568) ($26,803) $26,717 $22,186 $32,057 Non-control
Slide 29: Calculation of FFO, Normalized FFO and AFFO
Calculation of FFO, Normalized FFO and AFFO For the Three Months Ended March 31, December 31, September 30, June 30, March 31, ($ in thousands, except per share amounts) 2021 2020 2020 2020 2020 Net income (loss) ($125,568) ($26,803) $26,717 $22,186 $33,238 Depreciation and amortization of real esta
Slide 30: Calculation of Pro Forma FFO, Normalized FFO and AFFO
Calculation of Pro Forma FFO, Normalized FFO and AFFO For the Three Months Ended For the Year Ended December 31, September 30, June 30, March 31, December 31, ($ in thousands, except per share amounts) 2020 2020 2020 2020 2020 Net income (loss) as reported ($26,803) $26,717 $22,186 $33,238 $55,338 E
Slide 31: Calculation of NOI
Calculation of NOI ($ in thousands) For the Three Months Ended March 31, 2021 2020 Revenue Safety $ 409,769 $ 437,765 Community 23,658 30,599 Properties 21,255 22,679 Other 36 58 Total revenues $ 454,718 $ 491,101 Operating Expenses Safety $ 305,427 $ 330,737 Community 21,100 24,449 Properties 6,274
Slide 32: Calculation of EBITDA and Adjusted EBITDA
Calculation of EBITDA and Adjusted EBITDA For the Twelve Three Months Ended Months Ended March 31, December 31, ($ in thousands, except per share amounts) 2021 2020 2020 Net income (loss) ($125,568) $33,238 $55,338 Interest expense 20,925 24,555 93,453 Depreciation and amortization 32,712 37,952 150