Slide 1: Fourth Quarter 2017 Investor Presentation
Fourth Quarter 2017 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: About CoreCivic
About CoreCivic
Slide 4: 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 flexible, cost-effective ways • We provide a broad range of solutions to government partners that serve the public good through three
Slide 5: National Portfolio with Geographic Diversity
National Portfolio with Geographic Diversity As of December 31, 2017, we owned 82 real estate assets and provided correctional management services at 7 additional facilities owned by government partners CoreCivic Safety • 44 owned facilities, 64,064 beds • 7 managed-only facilities, 8,769 beds C
Slide 6: 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 approximately 58% of all privately owned correctional and detention capacity Approximately 40% larger than our nearest competitor Ow
Slide 7: CoreCivic Properties – Real Estate Solutions
CoreCivic Properties – Real Estate Solutions CoreCivic Properties offers a wide range of flexible 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 15 years • Trac
Slide 8: 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 the last 4 years CoreCivic Community expanded to be the second largest provider in the market 6.6% of Adjusted
Slide 9: Diversified Customer Base
Diversified Customer Base As of December 31, 2017, CoreCivic had more than 125 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; and the F
Slide 10: Strong Balance Sheet and Cash Flow
Strong Balance Sheet and Cash Flow
Slide 11: 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 $800M $250M Sr. Notes @ 5.000%, due Oct. 2022 $700M $350M Sr. Notes @ 4.625%, due May 2023 $600M $584M $250M Sr. Notes @ 4.750%,
Slide 12: Balance Sheet Flexibility
Balance Sheet Flexibility • Current dividend payout of 78% of AFFO, or 76% of Normalized FFO, at the mid-point of our FY2018 financial guidance • Median FFO payout ratio for all equity REITs is 70%(1) • Opportunities to deploy capital to grow and diversify cash flows, and to create shareholder value
Slide 13: Proven Strategy for Growth
Proven Strategy for Growth We have consistently grown our real estate portfolio through various market cycles CoreCivic Safety operates over 64,000 company owned correctional and detention beds CoreCivic Community strategy began in 2013 – now represents approximately 5,200 beds CoreCivic Prope
Slide 14: Business Development Update
Business Development Update
Slide 15: Recent Contract Awards
Recent Contract Awards • The State of Kansas enters into a new development and 20-year lease agreement with a subsidiary of ours to construct a new 2,432-bed correctional facility in January 2018 Lansing, Kansas November 2017 • The Commonwealth of Kentucky enters into a new contract for the 816-bed
Slide 16: Actively Marketing Available Capacity
Actively Marketing Available Capacity As of December 31, 2017, we had eight idle prison facilities, totaling 9,814 beds, that we are actively marketing to potential government partners. Utilizing available bed capacity up to standard operating capacity could improve cash flow and earnings potential
Slide 17: CoreCivic Safety - New Publicly Known Opportunities in the Market
CoreCivic Safety - New Publicly Known Opportunities in the Market Idaho • Released an RFP in December 2017 to procure up to 1,000 out-of-state beds. RFP responses due in February 2018. Oklahoma • We are actively marketing a potential long-term lease of our currently idled 2,160-bed Diamondback Corre
Slide 18: 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 Oklahoma, Texas, Avalon Correctiona
Slide 19: CoreCivic Properties - Recent Capital Deployment Opportunities
CoreCivic Properties - Recent Capital Deployment Opportunities Capital Commerce Center: January 2018 Acquired the 260,867 sq. ft. office building for $44.7 million 98% leased, and 87% leased to the Florida Department of Business and Professional Regulation, with ~10 years remaining lease term
Slide 20: Financial Guidance
Financial Guidance
Slide 21: 2018 Financial Guidance
2018 Financial Guidance(1) Q1 2018 Guidance Low-End High-End Diluted EPS $ 0.31 $ 0.33 Adjusted Diluted EPS(2) $ 0.31 $ 0.33 Normalized FFO per diluted share(2) $ 0.51 $ 0.53 AFFO per diluted share(2) $ 0.51 $ 0.53 Adjusted EBITDA(2) (in $ 000s) $ 89,400 $ 91,400 Full Year 2018 Guidance Low-End High
Slide 22: Appendix
Appendix
Slide 23: Utilizing Available Capacity Drives Earnings Growth
Utilizing Available Capacity Drives Earnings Growth Average Margin Estimated Potential Annual Total Beds Available Per Day(1) Incremental EBITDA Owned and Controlled Vacant Prison Capacity(2) 9,814 $ 23.65 $ 84,716,902 Owned and Controlled beds at Facilities with > 100 beds available(3) 3,534 $ 23.6
Slide 24: 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, 2017 2016 2017 2016 Net income $ 41,340 $ 60,689 $ 178,040 $ 219,919 Special items: Charges associated with adoption of tax reform 4,548 - 4,548 - Expe
Slide 25: 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, 2017 2016 2017 2016 Net income $ 41,340 $ 60,689 $ 178,040 $ 219,919 Depreciation of real estate assets 24,485 23,937 95,902 94,346 Impairment of
Slide 26: Calculation of NOI
Calculation of NOI ($ in thousands) For the Quarter Ended For the Year Ended December 31, December 31, 2017 2016 2017 2016 Revenue owned and controlled properties $ 398,564 $ 411,336 $ 1,570,457 $ 1,641,754 Operating expenses owned and controlled properties (268,782) (267,991) (1,060,701) (1,077,085
Slide 27: 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, 2017 2016 2017 2016 Net income $ 41,340 $ 60,689 $ 178,040 $ 219,919 Interest expense, net 18,394 16,478 68,535 67,755 Depreciation and amortization 37,565 39,418 147,129 166
Slide 28: Reconciliation to 2018 Guidance
Reconciliation to 2018 Guidance ($ in thousands, except per share amounts) First Quarter 2018 Full-Year 2018 Low High Low High Net income $ 36,750 $ 38,750 $ 167,000 $ 176,500 Expenses associated with mergers and acquisitions 250 250 1,000 1,000 Adjusted net income $ 37,000 $ 39,000 $ 168,000 $ 177,
Slide 29: CoreCivic
& coreCivic