CoreCivic sees FY adjusted EBITDA $434.5M to $439.5M

CoreCivic, Inc. (NYSE: CXW) has updated its full-year 2023 financial guidance, projecting adjusted EBITDA in the range of $434.5 million to $439.5 million for the fiscal year. This revised outlook reflects the company’s ongoing efforts to manage operations efficiently and adapt to evolving market conditions. The guidance includes the impact of the expected expiration of the lease for its California City Correctional Center, which contributed $25.5 million in EBITDA.

For the fourth quarter of 2023, CoreCivic reported total revenue of $491.2 million, with adjusted EBITDA of $90.0 million. The company’s full-year 2023 adjusted EBITDA guidance has been raised from $302.5 million to $306.8 million, reflecting stronger-than-expected performance in the latter half of the year.

The company has also made significant progress in its capital allocation strategy, repurchasing 3.5 million shares of its common stock in 2023 at a total cost of $38.1 million. Additionally, CoreCivic reduced total debt by $158 million during the year, bringing leverage, measured by net debt to adjusted EBITDA, to 2.8x, close to its long-term target of 2.25x to 2.75x.

Looking ahead, CoreCivic anticipates continued positive population trends in 2024, driven by higher utilization of existing contracts and new agreements signed in 2023. The company has secured three new management contracts in the fourth quarter of 2023, including agreements with the states of Montana, Wyoming, and Harris County, Texas. These contracts are expected to contribute to improved occupancy rates and operating margins in the coming year.

CoreCivic’s 2024 financial guidance includes a projected adjusted EBITDA range of $300.3 million to $313.3 million. The company expects to invest $69.0 million to $75.0 million in capital expenditures during 2024, with a focus on maintenance and technology upgrades.

The updated guidance underscores CoreCivic’s confidence in its ability to navigate post-pandemic challenges and maintain a strong financial position. With a focus on debt reduction, operational efficiency, and strategic contract expansion, the company is well-positioned to deliver sustained performance in the coming year.