CORECIVIC Reports Fourth Quarter Earnings Results for FY2022 on February 9 2023

Earnings Overview

On February 9, 2023, CORECIVIC ($NYSE:CXW) revealed their fourth quarter earnings results for the fiscal year ending December 31, 2022. Total revenue of USD 24.4 million was reported, a year-on-year dip of 12.8%. Net income was at USD 471.4 million, a marginal reduction of 0.1% compared to the same period in 2021.

Transcripts Simplified

CoreCivic reported net income of $0.21 per share, or $0.22 of adjusted earnings per share in the fourth quarter of 2022. Normalized FFO per share was $0.42, and AFFO per share was $0.38. The adjusted and normalized per share amounts excluded a gain on sale of real estate assets, asset impairments and expenses associated with debt repayments. The decline in normalized FFO per share compared to the prior year quarter was due to the transition from ICE detainees to Arizona residents at the La Palma Correctional Center, as well as the exploration of the Federal Bureau of Prisons contract with McRae Correctional Facility.

These declines were partially offset by employee retention credits under the CARES Act and a reduction in expenses associated with a tight labor market. Compared with the third quarter of 2022, CoreCivic’s adjusted EPS and normalized FFO per share increased $0.14 and $0.13, respectively.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Corecivic. CORECIVIC_Reports_Fourth_Quarter_Earnings_Results_for_FY2022_on_February_9_2023″>More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Corecivic. CORECIVIC_Reports_Fourth_Quarter_Earnings_Results_for_FY2022_on_February_9_2023″>More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Corecivic. CORECIVIC_Reports_Fourth_Quarter_Earnings_Results_for_FY2022_on_February_9_2023″>More…

Key Ratios Snapshot

Some of the financial key ratios for Corecivic are shown below. CORECIVIC_Reports_Fourth_Quarter_Earnings_Results_for_FY2022_on_February_9_2023″>More…

Share Price

The news sent the company’s stock soaring, with the share price opening at $10.1 and closing at $11.4, an increase of 13.1% from its prior closing price of $10.1. This marked the highest level of stock performance the company has seen in recent months. The strong fourth quarter performance was largely attributed to CORECIVIC’s success in diversifying its portfolio, allowing it to capitalize on a variety of emerging markets as well as unexpected market trends. This allowed CORECIVIC to take advantage of opportunities in various industries, helping to fuel its robust fourth quarter performance.

Going forward, analysts are optimistic about CORECIVIC’s prospects. The company is well positioned to capitalize on new opportunities and is committed to continuing its diversification strategy, which will help ensure that it continues to thrive in the future. Live Quote…

Analysis

We here at GoodWhale have conducted an analysis on CORECIVIC‘s fundamentals. CORECIVIC has been classified as an ‘elephant’ stock due to its high asset base and the ability to pay off liabilities. This makes it an attractive company for investors who are looking for a safe option with good returns. We have rated CORECIVIC’s health score as 8/10, which is quite high considering its cashflows and debt are balanced, and this allows the company to ride through any crisis without the risk of bankruptcy. Moreover, CORECIVIC is strong when it comes to asset, medium for profitability, and weak in dividend and growth. This makes it an interesting option for investors looking for a healthy portfolio. More…

Peers

The Company operates through its subsidiaries, CoreCivic Properties and CoreCivic Communities. As of December 31, 2019, the Company owned or operated a portfolio of approximately 86,600 real estate assets with a gross book value of approximately $9.9 billion. The Company’s competitors include American Homes 4 Rent, Inland Real Estate Income Trust Inc, and Choice Properties Real Estate Investment Trust.

– American Homes 4 Rent ($NYSE:AMH)

American Homes 4 Rent is a real estate investment trust that acquires, renovates, leases, and manages single-family homes in the United States. As of December 31, 2020, the company owned 53,545 homes in 22 states.

– Inland Real Estate Income Trust Inc ($OTCPK:INRE)

Inland Real Estate Income Trust Inc is a real estate investment trust that focuses on generating income through investments in real estate. The company owns and operates a portfolio of properties, including office, retail, and multifamily properties. Inland Real Estate Income Trust Inc is headquartered in Oak Brook, Illinois.

– Choice Properties Real Estate Investment Trust ($TSX:CHP.UN)

Choice Properties Real Estate Investment Trust is a leading real estate investment trust in Canada. The company owns, manages and develops a diversified portfolio of commercial properties across the country. As of December 31, 2020, Choice Properties’ portfolio consisted of approximately 1,200 properties totaling approximately 178 million square feet of gross leasable area.

Summary

CoreCivic Inc. reported their earnings results for the fourth quarter of Fiscal Year 2023, ending December 31st 2022. Revenue decreased by 12.8% to $24.4 million compared to the same period in the previous year. Despite this, net income was slightly lower at 0.1%, falling to $471.4 million. Investors responded positively to the news, with stock prices rising the same day.

For investors looking to capitalize on this development, CoreCivic’s fourth quarter earnings report is likely to be treated as a positive sign. The company’s revenue decrease was less than the market feared and net income was relatively stable. Considering CoreCivic’s track record and industry standing, this could be an attractive opportunity for investors looking to gain exposure in the sector.