CORECIVIC Reports Record Earnings Results for Q4 of FY2022 Ending February 9 2023

Earnings Overview

On February 9 2023, CORECIVIC ($NYSE:CXW) reported their financial results for Q4 of FY2022, which ended on that date. Revenue for the quarter totaled USD 24.4 million, a decline of 12.8% compared to the same period in the prior year. Net income came in at USD 471.4 million, a marginal decrease of 0.1% from the same quarter of the previous year.

Transcripts Simplified

In the fourth quarter of 2022, the company reported a net income of $0.21 per share, or $0.22 of adjusted earnings per share, a normalized FFO per share of $0.42, and an AFFO per share of $0.38. These results were $0.09 higher than analyst’s estimates due to lower operating expenses stemming from moderated staffing incentives and AFFO credits. The earnings were also impacted by the exploration on November 30th of the final prison contract with the Federal Bureau of Prisons and our McRae Correctional Facility, which contributed to a decline of $0.02 per share from the fourth quarter of 2021.

Additionally, employee retention credits enabled the company to reduce operating expenses, amounting to $0.02 per share net of related expenses. Compared with the third quarter of 2022, the company’s adjusted EPS increased by $0.14 from $0.08 to $0.22 and normalized FFO per share increased by $0.13 from $0.29 to $0.42. These increases were due to reduced expenses associated with a tight labor market.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Corecivic. corecivic-reports-record-earnings-results-for-q4-of-fy2022-ending-february-9-2023″>More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Corecivic. corecivic-reports-record-earnings-results-for-q4-of-fy2022-ending-february-9-2023″>More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Corecivic. corecivic-reports-record-earnings-results-for-q4-of-fy2022-ending-february-9-2023″>More…

Key Ratios Snapshot

Some of the financial key ratios for Corecivic are shown below. corecivic-reports-record-earnings-results-for-q4-of-fy2022-ending-february-9-2023″>More…

Stock Price

On Thursday, CORECIVIC reported a record earnings result for Q4 of FY2022 ending February 9 2023. The company’s stock opened at $10.1 and closed at $11.4, resulting in a soar of 13.1% from the previous closing price of $10.1. This closing price is the highest it has been since the company started trading in December 2020. The company’s performance was driven by a number of factors, such as increased demand for correctional services, a growing population of individuals under correctional supervision, and new operational efficiencies found through cost-savings initiatives. Furthermore, CORECIVIC has continued to increase its investments in technology, training, and facilities to remain competitive in the current market and ensure quality services are provided to its customers.

These positive results have made CORECIVIC one of the most successful and profitable companies in the correctional sector. Investors have responded positively to the company’s performance, with its shares trading at $11.4 on Thursday, up 13.1% from the previous closing price of $10.1. This indicates continuing confidence in CORECIVIC’s future prospects and suggests that the company will continue to experience strong performance over the coming year. Live Quote…

Analysis

GoodWhale has recently conducted an analysis of CORECIVIC‘s finances. According to the Star Chart, CORECIVIC has a high health score of 8/10, indicating that it is capable of sustaining future operations in times of crisis. Moreover, CORECIVIC has been classified as an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. Given this information, investors who are interested in companies with strong finances, medium asset size and profitability, and weak dividend and growth potential may be attracted to CORECIVIC. As such, CORECIVIC may be an appealing investment for those who are looking for a stable and secure option. 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 reported their earnings for the fourth quarter of FY2022 on December 31, 2022. Total revenue decreased by 12.8% compared to the same quarter of the prior year, but net income slightly decreased by just 0.1%. Investors reacted positively to the news and the stock price increased on the same day.

Overall, investors remain cautiously optimistic about CoreCivic’s financial performance over the coming quarters, given the company’s history of consistent revenue growth. Long-term investors may find CoreCivic to be an attractive investment, as the company continues to focus on expanding its services in order to maintain its competitive edge.