CoreCivic (CXW) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $490.1 million, up 6% year-over-year, driven by higher occupancy, per diem rates, and growth across federal, state, and local government partners.

• Net income for Q2 2024 was $19.0 million ($0.17 per diluted share), with adjusted EPS at $0.20, exceeding analyst estimates by $0.05 per share.

• Normalized FFO per share rose 27% to $0.42, and adjusted EBITDA increased 16% to $83.9 million.

• Occupancy increased to 74.3% from 70.3% year-over-year, with federal, state, and local revenues all increasing.

• ICE will discontinue use of the South Texas Family Residential Center as of August 9, 2024, impacting future revenue.

Financial highlights

• Q2 2024 revenue: $490.1M (+6% YoY); six-month revenue: $990.8M (+7.5% YoY).

• Q2 2024 net income: $19.0M; six-month net income: $28.5M.

• Adjusted EBITDA for Q2 2024 was $83.9 million, up from $72.1 million in Q2 2023.

• Normalized FFO per share was $0.42, and AFFO per share was $0.40 for Q2 2024.

• Share repurchases totaled 1.3 million shares ($20.1 million) in Q2, with $177.9 million remaining under authorization.

Outlook and guidance

• 2024 adjusted EPS expected at $0.58–$0.66; normalized FFO per share at $1.48–$1.56.

• Guidance reflects the South Texas Family Residential Center contract termination, with $0.08 EPS contribution in Q3 (final quarter), down from $0.11 in Q2.

• Free cash flow will be prioritized for debt reduction following the STFRC contract termination, with share repurchases at management's discretion.

• Full-year 2024 guidance: Net income $42.0–$50.4 million; Adjusted Net Income $65.6–$73.6 million.

• Capital expenditures for 2024 projected at $70–$76 million, including $30–$31 million for real estate maintenance.