CoreCivic Earnings
CoreCivic, Inc. released its financial results for the fourth quarter and full year of 2024. Despite facing challenges from contract terminations, the company is poised for future growth with new contracts in the pipeline.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | YoY Change (%) |
|---|---|---|---|
| Total Revenue | $479.3 million | N/A | N/A |
| Net Income | $19.3 million | $26.5 million | -27.17% |
| Diluted EPS | $0.17 | $0.23 | -26.09% |
| Adjusted Diluted EPS | $0.16 | $0.23 | -30.43% |
| Adjusted EBITDA | $74.2 million | $90.0 million | -17.56% |
The above metrics reflect CoreCivic’s decreased net income and earnings per share (EPS) for Q4 2024 compared to the same quarter last year. The contractions in these figures are mainly due to the expiration of its lease with the California Department of Corrections and Rehabilitation and the termination of the ICE contract at South Texas Family Residential Center. Despite these challenges, the company managed to exceed internal financial forecasts and analyst estimates.
CoreCivic Results
The financial outcomes for CoreCivic indicated several areas of concern but also highlighted the company's ability to adapt in an evolving market. The total revenue for Q4 reached $479.3 million, illustrating a strong operational backdrop amidst contract changes and challenges in certain segments.
The fall in net income and diluted EPS reflects the impact of specific contract terminations, yet CoreCivic has aligned operational efficiencies to mitigate losses. The decline in adjusted EBITDA was likewise affected by the same contract terminations; however, the company safeguarded its profitability by maintaining a firm grip on operational costs.
Revenue Breakdown
Revenue Performance by Segment
| Segment | Q4 2024 Revenue | Q4 2023 Revenue | YoY Change (%) |
|---|---|---|---|
| ICE Facilities | $120.3 million | $153.5 million | -21.6% |
| State Customers | Increased | N/A | +6.4% |
ICE Facilities faced a significant revenue decrease of 21.6%, directly related to the rescindment of contracts. However, the state customers segment experienced notable growth of 6.4%, driven by solid occupancy rates and strong cost management strategies. This growth showcases CoreCivic's ability to leverage its operational prowess in state-level engagements, which is a positive indicator for stability in revenue streams moving forward.
Key Developments
Several operational highlights underline CoreCivic's strategic focus:
- The company exceeded financial forecasts for Q4 2024, a testament to effective cost management and strategic planning.
- CoreCivic resumed its share repurchase program, buying back 0.4 million shares during the quarter, underlining shareholder value creation.
- A new management contract with the state of Montana was secured, signifying continued confidence in CoreCivic's operational capabilities.
These developments point to a robust internal realignment, preparing the company for potential increased demand due to anticipated changes in government policies.
Comments from Company Officers
CEO Damon T. Hininger emphasized CoreCivic's readiness to meet prospective demand from evolved governmental policies. With potential activations and transportation services valued at $40-45 million, CoreCivic is positioning itself strategically for near-term opportunities.
President Patrick Swindle added that the company's stronger-than-expected financial results were underpinned by superior occupancy rates and adept cost management, despite recent contract terminations.
Dividends and Share Repurchases
CoreCivic actively pursued its share repurchase program, acquiring a total of 4.4 million shares in 2024. At the close of December 31, 2024, there remained $168.9 million authorized for further buybacks, highlighting the company’s commitment to enhancing shareholder value.
CoreCivic Stock Forecast
The release of CoreCivic’s financial results prompted a stock price increase of 2.22%. With a last traded price of $18.84 and a market cap standing at $1,361.78 million, the stock exhibits potential volatility due to the transitional period in contract operations.
Looking forward, high projections for CoreCivic’s stock price are derived from expected new contracts and operational efficiencies, suggesting potential stock progress in the range of $19.50 to $21.00. Conversely, considering the impact of contract terminations, a low projection might see the stock priced between $17.00 and $18.00. These projections assume continued competence in financial management and successful contract negotiations throughout 2025.
In summary, CoreCivic's challenges from contract terminations are counterbalanced by strategic new contracts and prudent financial management. The company’s ability to adapt to a changing market and government landscape indicates a cautiously optimistic future trajectory.
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