On August 7, 2024, CoreCivic Inc (CXW, Financial) released its 8-K filing detailing its second quarter 2024 financial results. CoreCivic Inc is an owner and operator of private prisons and detention centers in the United States, operating in three segments: Safety, Community, and Properties. The majority of the company's revenue comes from the CoreCivic Safety segment, which includes correctional and detention facilities owned or managed by the company.
Performance Overview
CoreCivic Inc reported a net income of $19.0 million, or $0.17 per diluted share, for the second quarter of 2024, compared to $14.8 million, or $0.13 per diluted share, in the same period last year. Adjusted Net Income for Q2 2024 was $21.8 million, or $0.20 per diluted share, surpassing the analyst estimate of $0.18 per share. Revenue for the quarter was $490.1 million, up from $463.7 million in Q2 2023, exceeding the estimated revenue of $461.28 million.
Key Financial Achievements
CoreCivic's revenue increased by 6% year-over-year, driven by higher occupancy rates and effective cost management initiatives. Occupancy rose to 74.3% from 70.3% in the prior year quarter. The company also repurchased 1.3 million shares of its common stock for $20.1 million, contributing to a reduction in shares outstanding and supporting earnings per share growth.
"CoreCivic carried its strong operating momentum into the second quarter of 2024. Revenue increased 6% versus the second quarter of 2023, with federal, state, and local revenues all increasing. Occupancy increased to 74.3% from 70.3% in the prior year quarter, and our cost management initiatives are proving effective," commented Damon T. Hininger, CoreCivic’s President and Chief Executive Officer.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $490.1 million | $463.7 million |
| Net Income | $19.0 million | $14.8 million |
| Adjusted Net Income | $21.8 million | $13.6 million |
| EBITDA | $79.8 million | $72.1 million |
| Adjusted EBITDA | $83.9 million | $72.1 million |
Balance Sheet and Cash Flow
As of June 30, 2024, CoreCivic reported total assets of $2.90 billion, down from $3.10 billion at the end of 2023. Cash and cash equivalents stood at $60.2 million, a decrease from $121.8 million. The company’s total liabilities were $1.46 billion, compared to $1.63 billion at the end of 2023. CoreCivic's debt reduction strategy has been effective, with long-term debt decreasing to $1.01 billion from $1.08 billion.
Operational and Strategic Updates
CoreCivic's revenue from ICE, its largest government partner, increased by 10.5% compared to Q2 2023. The company also announced a new management contract with the state of Montana, which is expected to bring additional residents to its facilities. However, the discontinuation of ICE's use of the South Texas Family Residential Center will impact future revenue.
Analysis and Outlook
CoreCivic's strong financial performance in Q2 2024, driven by higher occupancy and effective cost management, positions the company well for future growth. The company's strategic initiatives, including share repurchases and debt reduction, have strengthened its financial position. However, the termination of the South Texas Facility contract with ICE presents a challenge that the company will need to navigate in the coming quarters.
For more detailed financial information and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from CoreCivic Inc for further details.
