Slide 1: Fourth Quarter 2016 Investor Presentation
Fourth Quarter 2016 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: Financial Highlights
Financial Highlights
Slide 4: Financial Highlights
Financial Highlights For the Three Months For the Twelve Months Ended December 31, Ended December 31, Increase / Increase / 2016 2015 (Decrease) 2016 2015 (Decrease) Adjusted Diluted EPS (1) $ 0.52 $ 0.43 20.9% $ 1.90 $ 1.93 (1.6%) Normalized FFO per share (1) $ 0.72 $ 0.63 14.3% $ 2.70 $ 2.69 0.4%
Slide 5: Trailing Five Quarter Financial Trends
Trailing Five Quarter Financial Trends Adjusted Diluted EPS Normalized FFO per diluted share $0.60 $0.75 $0.72 $0.52 $0.69 $0.69 $0.50 $0.49 $0.49 $0.70 $0.43 $0.65 $0.63 $0.40 $0.40 $0.60 $0.60 $0.30 $0.55 $0.20 $0.50 4Q15 1Q16 2Q16 3Q16 4Q16 4Q15 1Q16 2Q16 3Q16 4Q16 AFFO per diluted share Adjusted
Slide 6: 2017 Financial Guidance
2017 Financial Guidance(1) Q1 2017 Guidance Low-End High-End Diluted EPS $ 0.37 $ 0.39 FFO per diluted share $ 0.57 $ 0.58 AFFO per diluted share $ 0.55 $ 0.56 Adjusted EBITDA(2) (in $ 000s) $ 93,700 $ 94,700 Full Year 2017 Guidance Low-End High-End Diluted EPS $ 1.46 $ 1.54 FFO per diluted share $
Slide 7: About CoreCivic
About CoreCivic
Slide 8: 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 cost-effective ways • We provide a broad range of solutions to government partners that serve the public good through 3 business offe
Slide 9: National Portfolio with Geographic Diversity
National Portfolio with Geographic Diversity As of December 31, 2016, we owned 74 real estate assets and provided correctional management services at 11 facilities owned by government partners CoreCivic Safety • 46 owned facilities, 65,564 beds • 11 managed-only facilities, 13,898 beds CoreCivic
Slide 10: 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 nearly 58% of all privately owned beds More than 40% larger than nearest competitor Owned Correctional and Detention Facility Beds 8
Slide 11: CoreCivic Properties – Real Estate Solutions
CoreCivic Properties – Real Estate Solutions CoreCivic Properties offers a wide range of innovative, cost-saving 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
Slide 12: CoreCivic Community – A Growing Network
CoreCivic Community – A Growing Network CoreCivic Community is a rapidly growing network of residential reentry centers whose mission is to help address America's recidivism crisis. In just 3 years, CoreCivic Community has grown to be the second largest provider in the market CoreCivic Residential
Slide 13: High Quality, Diverse Customer Base
High Quality, Diverse Customer Base As of December 31, 2016, CoreCivic had more than 100 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;
Slide 14: Strong Balance Sheet and Cash Flow
Strong Balance Sheet and Cash Flow
Slide 15: 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 $325M Sr. Notes @ 4.125%, due Apr. 2020 $1,000M $250M Sr. Notes @ 5.000%, due Oct. 2022 $820M $800M $350M Sr. Notes @ 4.625%, due May 2023 $900M Revolver @ LIBOR + 1.50
Slide 16: Balance Sheet Flexibility
Balance Sheet Flexibility • Current dividend policy pegged to ~80% of AFFO, or 77% of Normalized FFO • Median FFO payout ratio for all equity REITs is ~65%(1) • Abundant opportunities to deploy capital to grow and diversify cash flows, and to create shareholder value CoreCivic Community acquisitio
Slide 17: Proven Strategy for Growth
Proven Strategy for Growth CCA has consistently grown our owned and managed real estate portfolio through various market cycles Traditional owned & managed model for correctional and detention facilities Expanded portfolio to RRCs beginning in 2013–representing over 5,300 beds Recent real esta
Slide 18: Historical Growth Driven by Real Estate Assets
Historical Growth Driven by Real Estate Assets Today, more than 95% of facility net operating income is derived from CCA-owned real estate assets Owned and Managed facility net operating income increased from $155M in 2001 to $487M in 2016 Facility Net Operating Income By Contract Type(1) 100% 9
Slide 19: Business Development Update
Business Development Update
Slide 20: Recent Contract Awards
Recent Contract Awards 12/14/16 – ICE enters into contract for approximately 500 beds at our Northeast Ohio Correctional Center 11/15/16 – The Federal Bureau of Prisons exercised a two-year renewal option at our McRae Correctional Facility 10/27/16 – ICE enters into new five-year contract for
Slide 21: Residential Reentry Acquisition Summary
Residential Reentry Acquisition Summary State(s) of Acquisition Acquisition Date of Acquisition # of Facilities Operation # of Beds Price Correctional Alternatives, Inc. July 2013 2 California 603 $36.5m Pennsylvania Portfolio August 2015 4 Pennsylvania 605 $13.8m Avalon Correctional Services, Oklah
Slide 22: Actively Marketing Available Capacity
Actively Marketing Available Capacity We currently have 7 idle prison facilities, totaling 8,298 beds, that we are actively marketing to potential government partners: Huerfano County Correctional Center (Colorado)—752 beds Kit Carson Correctional Center (Colorado)—1,488 beds Lee Adjustment Ce
Slide 23: Appendix
Appendix
Slide 24: Utilizing Available Capacity Drives Earnings Growth
Utilizing Available Capacity Drives Earnings Growth Total Beds Available at Average Estimated Potential Annual December 31, 2016 Margin(1) Incremental EBITDA Owned and Controlled Vacant Facility Capacity(2)(3) 8,298 $ 25.13 $ 76,112,990 Owned and Controlled beds at Facilities with > 100 beds availab
Slide 25: Reconciliation to Adjusted Diluted EPS
Reconciliation to Adjusted Diluted EPS ($ in thousands, except per share amounts) For the Quarter Ended For the Twelve Months Ended December 31, December 31, 2016 2015 2016 2015 Net income $ 60,689 $ 48,598 $ 219,919 $ 221,854 Special items: Expenses associated with debt refinancing transactions - -
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 Twelve Months Ended December 31, December 31, 2016 2015 2016 2015 Net income $ 60,689 $ 48,598 $ 219,919 $ 221,854 Depreciation of real estate assets 23,937 24,195 94,346 90,219 Funds
Slide 27: Calculation of NOI
Calculation of NOI ($ in thousands) For the Quarter Ended For the Twelve Months Ended December 31, December 31, 2016 2015 2016 2015 Revenue owned and controlled properties $ 411,336 $ 396,371 $ 1,641,754 $ 1,576,938 Operating expenses owned and controlled properties (267,991) (264,250) (1,077,085) (
Slide 28: Calculation of Historic Facility NOI
Calculation of Historic Facility NOI ($ in thousands) 2001 2002 2003 2004 2005 2006 2007 2008 Owned & Managed (O&M) Facilities $ 155,260 $ 159,768 $ 209,263 $ 224,339 $ 242,014 $ 307,803 $ 373,078 $ 431,192 Managed Only Facilities 51,880 53,896 51,307 54,024 54,401 50,612 48,593 50,122 Leased Facili
Slide 29: Calculation of EBITDA and Adjusted EBITDA
Calculation of EBITDA and Adjusted EBITDA ($ in thousands) For the Quarter Ended For the Twelve Months Ended December 31, December 31, 2016 2015 2016 2015 Net income $ 60,689 $ 48,598 $ 219,919 $ 221,854 Interest expense, net 16,478 15,981 67,755 49,696 Depreciation and amortization 39,418 43,199 16
Slide 30: Reconciliation to 2017 Guidance
Reconciliation to 2017 Guidance ($ in thousands, except per share amounts) First Quarter 2017 Full-Year 2017 Low High Low High Net income $ 44,000 $ 46,000 $ 172,500 $ 182,000 Depreciation of real estate assets 23,000 23,000 89,000 89,000 Funds From Operations $ 67,000 $ 69,000 $ 261,500 $ 271,000 M
Slide 31: CoreCivic
& coreCivic