CoreCivic, Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>CoreCivic, Inc. has filed its 2023 10-K report detailing financial performance and operational aspects.</b>

AI Summary

CoreCivic, Inc. (CXW) filed a Annual Report (10-K) with the SEC on February 20, 2024. CoreCivic, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing includes financial data and operational details for the company. Key dates mentioned include October 31, 2028, and January 31, 2040, related to debt maturities. The company's business address is 5501 Virginia Way, Brentwood, TN 37027. CoreCivic, Inc. was formerly known as Corrections Corp of America.

Why It Matters

For investors and stakeholders tracking CoreCivic, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of CoreCivic's financial health, debt obligations, and operational segments for the fiscal year 2023, crucial for investors assessing the company's stability and future prospects. The detailed information on government contracts and facility management within the report is vital for understanding the company's primary revenue drivers and associated risks in the correctional and detention services industry.

Risk Assessment

Risk Level: medium — CoreCivic, Inc. shows moderate risk based on this filing. The company operates in the correctional and detention services industry, which is subject to significant government regulation and contract dependency, posing inherent risks to revenue stability and operational continuity.

Analyst Insight

Investors should review the detailed risk factors and financial statements in the 10-K to understand CoreCivic's exposure to government contract changes and regulatory shifts.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-20 — Filing Date (Date of submission)
• October 31, 2028 — Debt Maturity (Senior Notes Due 2028)
• January 31, 2040 — Debt Maturity (Long-term Debt)

Key Players & Entities

• CoreCivic, Inc. (company) — Filer name
• 2023-12-31 (date) — Fiscal year end
• 2024-02-20 (date) — Filing date
• 5501 Virginia Way, Brentwood, TN 37027 (address) — Business address
• Corrections Corp of America (company) — Former company name
• United States Immigration and Customs Enforcement (company) — Customer
• Federal Bureau of Prisons (company) — Customer
• Kansas Department of Corrections (company) — Customer

FAQ

Risk Factors

• Government Contracts and Regulations [high — regulatory]: The company's operations are heavily reliant on contracts with government agencies, making it susceptible to changes in government policy, funding, and contract renewals.
• Demand for Services [medium — market]: Fluctuations in inmate populations and government detention needs directly impact the demand for CoreCivic's facilities and services.
• Facility Management and Safety [medium — operational]: Maintaining safe and secure facilities is paramount, and operational issues, including staffing, security incidents, or compliance failures, can lead to significant financial and reputational damage.
• Debt Obligations [medium — financial]: The company has significant debt obligations, and its ability to service this debt is dependent on its financial performance and access to capital markets.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.

Filing Documents

• cxw-20231231.htm (10-K) — 5128KB
• cxw-ex4_16.htm (EX-4.16) — 40KB
• cxw-ex21_1.htm (EX-21.1) — 11KB
• cxw-ex22_1.htm (EX-22.1) — 10KB
• cxw-ex23_1.htm (EX-23.1) — 12KB
• cxw-ex31_1.htm (EX-31.1) — 16KB
• cxw-ex31_2.htm (EX-31.2) — 16KB
• cxw-ex32_1.htm (EX-32.1) — 7KB
• cxw-ex32_2.htm (EX-32.2) — 7KB
• cxw-ex97.htm (EX-97) — 65KB
• 0000950170-24-017235.txt (&nbsp;) — 17652KB
• cxw-20231231.xsd (EX-101.SCH) — 2569KB
• cxw-20231231_htm.xml (XML) — 3004KB

Business

Business 7 Overview 7 Operating Procedures and Offender Services for Correctional, Detention, and Residential Reentry Facilities 9 Business Development 14 2023 Accomplishments 18 Facility Portfolio 20 Competitive Strengths 28 Human Capital 33 Government Regulation 36 Insurance 37 Competition 38 1A.

Risk Factors

Risk Factors 38 1B. Unresolved Staff Comments 58 1C. Cybersecurity 58 2.

Properties

Properties 61 3.

Legal Proceedings

Legal Proceedings 61 4. Mine Safety Disclosures 61 PART II 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 62 Market Price of and Distributions on Capital Stock 62 Dividend Policy 62 Issuer Purchases of Equity Securities 62 6. Reserved 62 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 63 Overview 63 Critical Accounting Policies and Estimates 67 Results of Operations 69 Liquidity and Capital Resources 83 Inflation 88 Seasonality and Quarterly Results 88 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 88 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 89 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 89 9A.

Controls and Procedures

Controls and Procedures 89 9B. Other Information 92 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 92 PART III 10. Directors, Executive Officers and Corporate Governance 93 11.

Executive Compensation

Executive Compensation 93 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 93 13. Certain Relationships and Related Party Transactions and Director Independence 94 14. Principal Accounting Fees and Services 94 PART IV 15. Exhibits and Financial Statement Schedules 95 16. Form 10-K Summary 99

SIGNATURES

SIGNATURES 100 2 CAUTIONARY STATEMENT RE GARDING FORWARD-LOOKING INFORMATION This Annual Report on Form 10-K, or Annual Report, contains statements as to our beliefs and expectations of the outcome of future events that are forward-looking statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of current or historical fact contained in this Annual Report, including statements regarding our future financial position, business strategy, budgets, projected costs and plans, and objectives of management for future operations, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "projects," "will," and similar expressions, as they relate to us, are intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made in this Annual Report. These include, but are not limited to, the risks and uncertainties associated with: changes in government policy, legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services, in general, or our business, in particular, including, but not limited to, the continued utilization of our correctional and detention facilities by the federal government, including as a consequence of the United States Department of Justice, or DOJ, not renewing contracts as a result of President Biden's Executive Order on Reforming Our Incarceration System to Eliminate the Use of Privately Operated Criminal Detention Facilities, or the Private Prison EO, impacting utilization primarily by the United States Federal Bureau of Prisons, or BOP, and the United States Marshals Service, or USMS, and the impact of any changes to immigration reform and sentencing laws (we do not, under lo

B US INESS

ITEM 1. B US INESS. Over view We are a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. Through three segments, CoreCivic Safety, CoreCivic Community, and CoreCivic Properties, we provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a network of residential reentry centers to help address America's recidivism crisis, and government real estate solutions. We have been a flexible and dependable partner for government for 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. We are the nation's largest owner of partnership correctional, detention, and residential reentry facilities and one of the largest prison operators in the United States. As of December 31, 2023, through our CoreCivic Safety segment, we operated 43 correctional and detention facilities, 39 of which we owned, with a total design capacity of approximately 65,000 beds. Through our CoreCivic Community segment, we owned and operated 23 residential reentry centers with a total design capacity of approximately 5,000 beds. In addition, through our CoreCivic Properties segment, we owned 6 properties, with a total design capacity of approximately 10,000 beds. In addition to providing fundamental residential services, our correctional, detention, and residential reentry facilities offer a variety of rehabilitation and educational programs, including basic education, faith-based services, life skills and employment training, and substance abuse treatment. These services are intended to help reduce recidivism and to prepare offenders for their successful reentry into society upon their release. We also provide or make available to offenders certain health care (including medical, dental, and mental health services), food se

Properties

Properties 10.1 % 12.0 % 11.2 % Our customers primarily consist of federal, state, and local government agencies. Federal correctional and detention authorities primarily consist of U.S. Immigration and Customs Enforcement, or ICE, the USMS, and the BOP. Payments by federal correctional, detention and residential reentry authorities represented 52%, 54%, and 56% of our total revenue for the years ended December 31, 2023, 2022, and 2021, respectively. Our customer contracts for providing bed capacity and correctional, detention, and residential reentry services in our CoreCivic Safety and CoreCivic Community segments typically have terms of three to five years and contain multiple renewal options. Most of our facility contracts also contain clauses that allow the government agency to terminate the contract at any time without cause, and our facility contracts are generally subject to annual or bi-annual legislative appropriations of funds. Notwithstanding these termination clauses, the contract renewal rate for properties we owned or controlled via long-term lease in these segments was approximately 95% over the five years ended December 31, 2023. The lease agreements in our CoreCivic Properties segment typically have terms of five to twenty years including renewal options, and generally have more restrictive termination clauses. In our CoreCivic Safety and CoreCivic Community segments, we are compensated for providing bed capacity and correctional, detention, and residential reentry services at a per diem rate based upon actual or minimum guaranteed occupancy levels. Occupancy rates for a particular facility are typically low when first opened or immediately following an expansion. However, beyond the start-up period, which typically ranges from 90 to 180 days, the occupancy rate tends to stabilize. Our occupancy rates declined during 2021 and 2022 due to the effects of COVID-19, but began to increase in 2023 following the expiration of Title 42, a

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View this 10-K filing on SEC EDGAR