CoreCivic, Inc. (NYSE:CXW) Q1 2018 Earnings Conference Call - Preliminary Transcript
May 03, 2018 • 11:00 am ET
Good morning. My name is Mindy, and I'll be your conference operator. As a reminder, this call is being recorded. At this time, I'd like to welcome you to CoreCivic's First Quarter 2018 Earnings Conference Call. All lines have been placed on mute to avoid any background noise. After the speakers remarks, there will be a question-and-session. (Operator Instructions) Thank you.
And now I'd like to turn the call over to Cameron Hopewell, CoreCivic's Managing Director of Investor Relations. Mr. Hopewell, you may begin your conference.
Thanks, Mindy. Good morning, ladies and gentlemen, and thank you for joining us. Participating on today's call are Damon Hininger, President and Chief Executive Officer; and David Garfinkle, Chief Financial Officer.
During today's call, our remarks, including our answers to your questions, will include forward-looking statements pursuant to the safe harbor provisions of the Private Securities and Litigation Reform Act. Our actual results or trends may differ materially as a result of a variety of factors, including those identified in our first quarter 2018 earnings release and in our SEC filings, including forms 10-K, 10-Q and 8-K reports. You are also cautioned that any forward-looking statements reflect management's current view only and that the company undertakes no obligation to revise or update such statements in the future.
On this call, we will also discuss certain non-GAAP measures. A reconciliation of the most comparable GAAP measurement is provided in our corresponding earnings release and included in the supplemental financial data that we provide on our Investors page of our website at corecivic.com.
With that, it's my pleasure to turn the call over to our President and CEO, Damon Hininger.
Thank you, Cameron, and good morning, and thank you to everyone for joining our first quarter 2018 conference call today. We are also joined here in the room by our Vice President of Finance, Brian Hammonds.
Our first quarter financial performance met the high end of our guidance with normalized FFO of $0.53 per share. Our adjusted EBITDA in the first quarter, $92.1 million, slightly exceeded the high end of our first quarter guidance of $91.4 million. Our first quarter results were aligned with the high end of our expectations, principally due to increasing utilization trends across our portfolio for United States Marshals Service and Immigration and Customs Enforcement facilities.
Startup related to expenses at our Lee Adjustment Center for a new contract with Kentucky coming in line with our expectations. And the timing of California's gradual exit from our Tallahatchie County Correctional Facility being consistent with our forecast, supported by stability and the balance of our portfolio. Dave will provide a more detailed summary of our first quarter financial performance at the conclusion of my remarks.
Also included in yesterday's earnings release was our updated full year 2018 financial guidance. We currently expect to generate normalized FFO per share of $2.24 to $2.30, and AFFO per share of $2.17 to $2.23. Dave will cover in detail the primary drivers of our guidance. However, it is important