Benjamin Briggs • StoneX Financial Inc.

Question 1

Benjamin Briggs's questions to CoreCivic Inc (CXW) leadership • Q4 2024

Feb 11, 2025

Question

Benjamin Briggs sought to confirm the key figures presented: the 28,000-bed proposal to ICE and the associated revenue and EBITDA potential. He also asked about the ability to mix different government populations within a single facility, the possibility of new facility construction, and potential opportunities with the Bureau of Prisons (BOP).

Answer

CEO Damon Hininger confirmed the 28,000-bed proposal. CFO David Garfinkle clarified the math, stating that activating ~15,000 idle beds could generate $750M-$800M in revenue and $200M-$275M in EBITDA. President Patrick Swindle explained that facilities are designed flexibly to house multiple, separated populations. Hininger stated that new construction is not a near-term need given existing capacity and expansion options. Regarding the BOP, he sees the most significant near-term opportunity in expanding community confinement and halfway house capacity to support the First Step Act.

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Question 2

Benjamin Briggs's questions to CoreCivic Inc (CXW) leadership • Q3 2024

Nov 7, 2024

Question

Benjamin Briggs asked for clarification on the number of active RFIs and RFPs, whether any COVID-19 population restrictions remain, and for an EBITDA bridge explaining the change from Q4 2023 to the guided Q4 2024.

Answer

CFO David Garfinkle clarified the procurement landscape: ICE has two RFIs covering five Areas of Responsibility and one RFP in New Jersey; Montana has one RFP; and ICE also has the new ATD RFI. CEO Damon T. Hininger confirmed all COVID-related population restrictions have been lifted in their portfolio. For the Q4 EBITDA bridge, Garfinkle explained the year-over-year decline is primarily due to the loss of contributions from two major contracts: the South Texas facility (terminated Aug 2024) and the California City facility (terminated March 2024).