Slide 1: First Quarter 2017 Investor Presentation
First 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 cost-effective ways • We provide a broad range of solutions to government partners that serve the public good through three business
Slide 5: National Portfolio with Geographic Diversity
National Portfolio with Geographic Diversity As of March 31, 2017, we owned 75 real estate assets and provided correctional management services at 11 facilities owned by government partners CoreCivic Safety • 45 owned facilities, 64,064 beds • 11 managed-only facilities, 13,898 beds CoreCivic Pr
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 nearly 57% of all privately owned prison beds More than 40% larger than nearest competitor Owned Correctional and Detention Facility
Slide 7: 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 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 just 3 years, CoreCivic Community has grown to be the second largest provider in the market CoreCivic Residential
Slide 9: High Quality, Diverse Customer Base
High Quality, Diverse Customer Base As of March 31, 2017, 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; an
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 $1,000M $250M Sr. Notes @ 5.000%, due Oct. 2022 $808M $800M $350M Sr. Notes @ 4.625%, due May 2023 $900M Revolver @ LIBOR + 1.50
Slide 12: 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 67%(1) • Abundant opportunities to deploy capital to grow and diversify cash flows, and to create shareholder value CoreCivic Community acquisitio
Slide 13: Proven Strategy for Growth
Proven Strategy for Growth CoreCivic 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 rea
Slide 14: 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 CoreCivic-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)
Slide 15: Business Development Update
Business Development Update
Slide 16: Recent Contract Awards
Recent Contract Awards 4/13/17 – ICE enters into one-year contract extension at our 1,000-bed Houston Processing Center 4/11/17 – Ohio Department of Rehabilitation and Correction contracts for up to 996 offenders at our 2,016-bed Northeast Ohio Correctional Center 12/14/16 – ICE enters into co
Slide 17: Actively Marketing Available Capacity
Actively Marketing Available Capacity As of April 30, 2017, we have eight idle prison facilities, totaling 9,720 beds, that we are actively marketing to potential government partners: Eden Detention Center (Texas)—1,422 beds Huerfano County Correctional Center (Colorado)—752 beds Kit Carson Co
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 Avalon Correctional Services, Oklah
Slide 19: Financial Highlights
Financial Highlights
Slide 20: Financial Highlights
Financial Highlights For the Three Months Ended March 31, Increase / 2017 2016 (Decrease) Diluted EPS (1) $ 0.42 $ 0.39 7.7% Adjusted Diluted EPS (1) $ 0.43 $ 0.40 7.5% Normalized FFO per share (1) $ 0.63 $ 0.60 5.0% AFFO per share (1) $ 0.62 $ 0.61 1.6% EBITDA (1) $105.3M $107.1M (1.7%) Adjusted EB
Slide 21: Trailing Five Quarter Financial Trends
Trailing Five Quarter Financial Trends(1) 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 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 AFFO per diluted share Adjus
Slide 22: 2017 Financial Guidance
2017 Financial Guidance(1) Q2 2017 Guidance Low-End High-End Diluted EPS $ 0.34 $ 0.36 Adjusted Diluted EPS(2) $ 0.35 $ 0.36 Normalized FFO per diluted share(2) $ 0.54 $ 0.55 AFFO per diluted share(2) $ 0.52 $ 0.53 Adjusted EBITDA(2) (in $ 000s) $ 92,000 $ 93,000 Full Year 2017 Guidance Low-End High
Slide 23: Appendix
Appendix
Slide 24: Utilizing Available Capacity Drives Earnings Growth
Utilizing Available Capacity Drives Earnings Growth Average Estimated Potential Annual Total Beds Available Margin(1) Incremental EBITDA Owned and Controlled Vacant Facility Capacity(2)(3) 9,720 $ 23.94 $ 84,934,332 Owned and Controlled beds at Facilities with > 100 beds available(4) 5,907 $ 23.94 5
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 March 31, December 31, 2017 2016 2016 Net income $ 50,047 $ 46,307 $ 219,919 Special items: Expenses associated with mergers and acquisitions 130 1,143 1,586 Gain on se
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 March 31, December 31, 2017 2016 2016 Net income $ 50,047 $ 46,307 $ 219,919 Depreciation of real estate assets 23,699 23,337 94,346 Funds From Operations $ 73,746
Slide 27: Calculation of NOI
Calculation of NOI ($ in thousands) For the Quarter Ended For the Twelve Months Ended March 31, December 31, 2017 2016 2016 Revenue owned and controlled properties $ 394,596 $ 396,878 $ 1,641,754 Operating expenses owned and controlled properties (264,870) (264,986) (1,077,085) Net operating income
Slide 28: Calculation of Historic Facility NOI
Calculation of Historic Facility NOI ($ in thousands) 2001 2002 2003 2004 2005 2006 2007 2008 2009 Owned & Managed (O&M) Facilities $ 155,260 $ 159,768 $ 209,263 $ 224,339 $ 242,014 $ 307,803 $ 373,078 $ 431,192 $ 462,974 Managed Only Facilities 51,880 53,896 51,307 54,024 54,401 50,612 48,593 50,12
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 March 31, December 31, 2017 2016 2016 Net income $ 50,047 $ 46,307 $ 219,919 Interest expense, net 16,490 17,544 67,755 Depreciation and amortization 36,257 42,059 166,746 Income tax expense
Slide 30: Reconciliation to 2017 Guidance
Reconciliation to 2017 Guidance ($ in thousands, except per share amounts) Second Quarter 2017 Full-Year 2017 Low High Low High Net income $ 40,700 $ 42,700 $ 175,700 $ 182,700 Expenses associated with mergers and acquisitions 400 400 1,500 1,500 Asset impairments - - 300 300 Adjusted net income $ 4
Slide 31: CoreCivic
& coreCivic