Matthew Ubben

Matthew Ubben inquired if the decline in safety margins was attributable to the activation of new facilities like California City and Diamondback, and also asked about CoreCivic's confidence in staffing up for new facilities without concerns.

Answer

David Garfinkle, CoreCivic's CFO, confirmed that the margin decline was due to facility activations, noting that the margin was around 24% excluding these sites, with expected growth upon stabilized occupancy. Patrick Swindle, CEO, added that staffing for Dilley and other locations was successful and not a limiting factor, with Diamondback activating earlier than projected due to effective hiring.

Matthew Ubben from Jones Trading asked about the decline in safety margins, specifically if it was related to the activation of facilities like California City and Diamondback, and also questioned CoreCivic's confidence in staffing new facilities to meet increased demand.

Answer

CFO David Garfinkle confirmed that the decline in operating margin was indeed due to the activation of new facilities, noting that excluding these, the margin was around 24%. CEO Patrick Swindle expressed high confidence in staffing capabilities, citing rapid and successful staffing of Dilley and other locations, and mentioned preemptive investments to prepare facilities. He added that Diamondback started accepting detainees earlier than expected, demonstrating staffing ability.