Strong Financial Performance Driven by Facility Activations
Announces Acquisition of
Increases 2026 Full Year Guidance
Financial Highlights – First Quarter 2026
| For the Three Months Ended | % Increase from Prior | ||
| • Total revenue | 25.8% | ||
| • Net Income | 51.0% | ||
| • Diluted EPS | 65.2% | ||
| • Adjusted Diluted EPS | 73.9% | ||
| • Normalized FFO per diluted share | 44.4% | ||
| • Adjusted EBITDA | 36.0% | ||
| • Repurchased 2.3 million shares of our common stock at an aggregate cost of | |||
"Consistent with
Swindle continued, "Our balance sheet remains strong, supported by continued execution of our capital strategy. We ended the quarter with leverage, measured as net debt to Adjusted EBITDA, at 2.8x for the trailing twelve months. With the durability of our earnings and growth outlook, we were pleased to fortify our balance sheet with a
First Quarter 2026 Financial Results Compared With First Quarter 2025
Net income in the first quarter of 2026 was
The increase in Diluted EPS and Adjusted Diluted EPS compared with the prior year quarter resulted from the resumption of operations at the 2,400-bed Dilley Immigration Processing Center (
Per share results were also favorably impacted by an increase of
Management revenue from
The facility operating margin in our Safety and Community segments increased to 24.0% in the first quarter of 2026 from 23.6% in the prior year quarter. Although the facility operating margins in both quarters were favorably impacted by ERCs that will not be included in future quarters, we expect facility margins to improve at our California City and Diamondback facilities, as well as at our newly activated 1,033-bed Midwest Regional Reception Center, as occupancies continue to increase at these facilities.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was
Funds From Operations (FFO) for the first quarter of 2026 was
Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share amounts, are measures calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles (GAAP). Please refer to the Supplemental Financial Information and the note following the financial statements herein for further discussion and reconciliations of these measures to net income, the most directly comparable GAAP measure.
Capital Strategy
Share Repurchases. In 2022, our Board of Directors (BOD) approved a share repurchase program authorizing the Company to repurchase up to
As of
Incremental Term Loan. Subsequent to quarter-end, on
Acquisition of
Subsequent to quarter-end, on
The initial purchase price of approximately
Other Business Developments
Midwest Regional Reception Center. On
Other Facility Activations. During the first quarter of 2026, we continued receiving additional detainee populations under new management contracts with ICE at our 2,560-bed
2026 Financial Guidance
Based on current business conditions, we are providing the following updated financial guidance for the full year 2026:
| Revised Guidance Full Year 2026 | Prior Guidance Full Year 2026 | |
| • Net income | ||
| • Adjusted Net Income | ||
| • Diluted EPS | ||
| • Adjusted Diluted EPS | ||
| • FFO per diluted share | ||
| • Normalized FFO per diluted share | ||
| • EBITDA | ||
| • Adjusted EBITDA | ||
Our guidance has been updated to include the acquisition of CSP and activation of the Midwest Regional Reception Center, which successfully obtained an SUP and began receiving detainee populations in
Consistent with our past practice, our guidance does not include the impact of any new contract awards not previously announced, or the activation of any of our remaining five idle correctional and detention facilities. Our guidance also does not include any additional acquisitions or dispositions, including the impact on earnings, such as pricing adjustments, if any, that could result from any dispositions. Our guidance does not contemplate any significant changes in how the federal government, including ICE, elects to use our detention capacity.
The activation of an idle facility generally requires three to six months to hire, train, and prepare the facility to accept residential populations, which, depending on contract structure, can result in additional expenses before we are able to realize additional revenue. To the extent any new contract requires the activation of an idle facility, our guidance will likely be negatively impacted by these start-up expenses until the revenue we generate offsets these expenses.
During 2026, we expect to invest
Supplemental Financial Information and Investor Presentations
We have made available on our website supplemental financial information and other data for the first quarter of 2026. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Financial Information” of the Investors section. We do not undertake any obligation and disclaim any duties to update any of the information disclosed in this report.
Management may meet with investors from time to time during the second quarter of 2026. Written materials used in the investor presentations will also be available on our website beginning on or about
Conference Call, Webcast and Replay Information
We will host a webcast conference call at
To participate via telephone and join the call live, please register in advance here https://register-conf.media-server.com/register/BI100ac825f20b4333aeddd3f8e1c0fdff. Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique passcode.
About
Forward-Looking Statements
This press release contains statements as to our beliefs and expectations of the outcome of future events that are "forward-looking" statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) changes in government policy, legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services, in general, or our business, in particular, including, but not limited to, the continued utilization of our correctional and detention facilities by the federal government as a consequence of presidential executive orders, changes in how the federal government, including ICE, elects to use our detention capacity or otherwise procures alternative detention capacity, and the impact of any changes to immigration reform and sentencing laws (we do not, under longstanding policy, lobby for or against policies or legislation that would determine the basis for, or duration of, an individual’s incarceration or detention); (ii) our ability to obtain and maintain correctional, detention, and residential reentry facility management contracts because of reasons including, but not limited to, sufficient governmental appropriations, contract compliance, negative publicity and effects of inmate disturbances; (iii) changes in the privatization of the corrections and detention industry, the acceptance of our services, the timing of the opening of new facilities and the commencement of new management contracts (including the extent and pace at which new contracts are utilized), as well as our ability to utilize available beds; (iv) our ability to successfully activate idle facilities in a timely manner in order to meet the growth in demand for our facilities and services from the federal government that has occurred as a result of changes in policies and actions of the current presidential administration, and to realize projected returns resulting therefrom; (v) general economic and market conditions, including, but not limited to, the impact governmental budgets can have on our contract renewals and renegotiations, per diem rates, and occupancy; (vi) fluctuations in our operating results because of, among other things, changes in occupancy levels; competition; contract renegotiations or terminations; inflation and other increases in costs of operations, including a rise in labor costs; fluctuations in interest rates and risks of operations; (vii) government budget uncertainty, the impact of debt ceilings and government shutdowns, including partial shutdowns, and changing budget priorities; (viii) our ability to successfully identify and consummate future development and acquisition opportunities, integrate their operations, and realize projected returns resulting therefrom; and (ix) the availability of debt and equity financing on terms that are favorable to us, or at all. Other factors that could cause operating and financial results to differ are described in the filings we make from time to time with the Securities and Exchange Commission.
We take no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services, except as may be required by law.
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 209,686 | $ | 97,929 | ||||
| Restricted cash | 14,641 | 14,517 | ||||||
| Accounts receivable, net of credit loss reserve of | 479,800 | 446,224 | ||||||
| Prepaid expenses and other current assets | 36,857 | 49,904 | ||||||
| Assets held for sale | 2,513 | 2,513 | ||||||
| Total current assets | 743,497 | 611,087 | ||||||
| Real estate and related assets: | ||||||||
| Property and equipment, net of accumulated depreciation of | 2,122,430 | 2,132,206 | ||||||
| Other real estate assets | 180,148 | 182,479 | ||||||
| 8,551 | 8,551 | |||||||
| Other assets | 313,369 | 322,420 | ||||||
| Total assets | $ | 3,367,995 | $ | 3,256,743 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Accounts payable and accrued expenses | $ | 288,362 | $ | 353,173 | ||||
| Current portion of long-term debt | 16,611 | 15,701 | ||||||
| Total current liabilities | 304,973 | 368,874 | ||||||
| Long-term debt, net | 1,380,955 | 1,205,037 | ||||||
| Deferred revenue | 7,812 | 8,719 | ||||||
| Non-current deferred tax liabilities | 111,297 | 98,364 | ||||||
| Other liabilities | 167,348 | 170,500 | ||||||
| Total liabilities | 1,972,385 | 1,851,494 | ||||||
| Commitments and contingencies | ||||||||
| Preferred stock – | — | — | ||||||
| Common stock – | 989 | 1,001 | ||||||
| Additional paid-in capital | 1,480,181 | 1,527,724 | ||||||
| Accumulated deficit | (85,560 | ) | (123,476 | ) | ||||
| Total stockholders' equity | 1,395,610 | 1,405,249 | ||||||
| Total liabilities and stockholders' equity | $ | 3,367,995 | $ | 3,256,743 | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| For the Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| REVENUE: | ||||||||
| Safety | $ | 577,947 | $ | 454,184 | ||||
| Community | 32,080 | 29,708 | ||||||
| Properties | 4,702 | 4,642 | ||||||
| Other | — | 93 | ||||||
| 614,729 | 488,627 | |||||||
| EXPENSES: | ||||||||
| Operating: | ||||||||
| Safety | 441,255 | 347,983 | ||||||
| Community | 24,124 | 23,613 | ||||||
| Properties | 2,319 | 3,123 | ||||||
| Other | 21 | 18 | ||||||
| Total operating expenses | 467,719 | 374,737 | ||||||
| General and administrative | 43,676 | 36,016 | ||||||
| Depreciation and amortization | 33,335 | 30,518 | ||||||
| 544,730 | 441,271 | |||||||
| OTHER INCOME (EXPENSE): | ||||||||
| Interest expense, net | (17,681 | ) | (15,231 | ) | ||||
| Other expense | (8 | ) | (35 | ) | ||||
| INCOME BEFORE INCOME TAXES | 52,310 | 32,090 | ||||||
| Income tax expense | (14,394 | ) | (6,977 | ) | ||||
| NET INCOME | $ | 37,916 | $ | 25,113 | ||||
| BASIC EARNINGS PER SHARE | $ | 0.38 | $ | 0.23 | ||||
| DILUTED EARNINGS PER SHARE | $ | 0.38 | $ | 0.23 | ||||
| SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EPS | ||||||||
| For the Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Net income | $ | 37,916 | $ | 25,113 | ||||
| Special items: | ||||||||
| Expenses associated with mergers and acquisitions | 2,424 | — | ||||||
| Income tax benefit for special items | (679 | ) | — | |||||
| Adjusted net income | $ | 39,661 | $ | 25,113 | ||||
| Weighted average common shares outstanding - basic | ||||||||
| Effect of dilutive securities: | 98,720 | 109,489 | ||||||
| Restricted stock-based awards | 606 | 969 | ||||||
| Weighted average shares and assumed conversions - diluted | 99,326 | 110,458 | ||||||
| Adjusted Diluted EPS | $ | 0.40 | $ | 0.23 | ||||
| SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| CALCULATION OF FUNDS FROM OPERATIONS AND NORMALIZED FUNDS FROM OPERATIONS | ||||||||
| For the Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Net income | $ | 37,916 | $ | 25,113 | ||||
| Depreciation and amortization of real estate assets | 25,394 | 24,598 | ||||||
| Funds From Operations | $ | 63,310 | $ | 49,711 | ||||
| Expenses associated with mergers and acquisitions | 2,424 | — | ||||||
| Income tax benefit for special items | (679 | ) | — | |||||
| Normalized Funds From Operations | $ | 65,055 | $ | 49,711 | ||||
| Funds from Operations Per Diluted Share | $ | 0.64 | $ | 0.45 | ||||
| Normalized Funds From Operations Per Diluted Share | $ | 0.65 | $ | 0.45 | ||||
| SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| CALCULATION OF EBITDA AND ADJUSTED EBITDA | ||||||||
| For the Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Net income | $ | 37,916 | $ | 25,113 | ||||
| Interest expense | 22,042 | 18,381 | ||||||
| Depreciation and amortization | 33,335 | 30,518 | ||||||
| Income tax expense | 14,394 | 6,977 | ||||||
| EBITDA | $ | 107,687 | $ | 80,989 | ||||
| Expenses associated with mergers and acquisitions | 2,424 | — | ||||||
| Adjusted EBITDA | $ | 110,111 | $ | 80,989 | ||||
| SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||
| (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | ||||||||
| GUIDANCE -- CALCULATION OF ADJUSTED NET INCOME, FUNDS FROM OPERATIONS, NORMALIZED FUNDS FROM OPERATIONS, EBITDA, AND NORMALIZED EBITDA | ||||||||
| For the Year Ending | ||||||||
| Low End of | High End of | |||||||
| Guidance | Guidance | |||||||
| Net income | $ | 147,755 | $ | 157,755 | ||||
| Expenses associated with mergers and acquisitions | 2,424 | 2,424 | ||||||
| Income tax benefit for special items | (679 | ) | (679 | ) | ||||
| Adjusted net income | $ | 149,500 | $ | 159,500 | ||||
| Net income | $ | 147,755 | $ | 157,755 | ||||
| Depreciation and amortization of real estate assets | 105,500 | 105,000 | ||||||
| Funds From Operations | $ | 253,255 | $ | 262,755 | ||||
| Expenses associated with mergers and acquisitions | 2,424 | 2,424 | ||||||
| Income tax benefit for special items | (679 | ) | (679 | ) | ||||
| Normalized Funds From Operations | $ | 255,000 | $ | 264,500 | ||||
| Diluted EPS | $ | 1.51 | $ | 1.61 | ||||
| Adjusted Diluted EPS | $ | 1.53 | $ | 1.63 | ||||
| FFO per diluted share | $ | 2.58 | $ | 2.68 | ||||
| Normalized FFO per diluted share | $ | 2.60 | $ | 2.70 | ||||
| Net income | $ | 147,755 | $ | 157,755 | ||||
| Interest expense | 96,000 | 95,000 | ||||||
| Depreciation and amortization | 149,250 | 149,250 | ||||||
| Income tax expense | 58,321 | 57,321 | ||||||
| EBITDA | $ | 451,326 | $ | 459,326 | ||||
| Expenses associated with mergers and acquisitions | 2,424 | 2,424 | ||||||
| Adjusted EBITDA | $ | 453,750 | $ | 461,750 | ||||
NOTE TO SUPPLEMENTAL FINANCIAL INFORMATION
Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share metrics are non-GAAP financial measures. The Company believes that these measures are important operating measures that supplement discussion and analysis of the Company's results of operations and are used to review and assess operating performance of the Company and its properties and their management teams. The Company believes that it is useful to provide investors, security analysts, and other interested parties disclosures of its results of operations on the same basis that is used by management.
FFO, in particular, is a widely accepted non-GAAP supplemental measure of performance of real estate companies, grounded in the standards for FFO established by the
Other companies may calculate Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO differently than the Company does, or adjust for other items, and therefore comparability may be limited. Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO and, where appropriate, their corresponding per share measures are not measures of performance under GAAP, and should not be considered as an alternative to cash flows from operating activities, a measure of liquidity or an alternative to net income as indicators of the Company's operating performance or any other measure of performance derived in accordance with GAAP. This data should be read in conjunction with the Company's consolidated financial statements and related notes included in its filings with the Securities and Exchange Commission.
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