CoreCivic, Inc. (NYSE:CXW) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 11:00 am ET


CoreCivic, Inc. (NYSE:CXW) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning. My name is Travis, and I will be your conference operator. As a reminder, this call is being recorded. At this time I would like to welcome you to CoreCivic's Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to Cameron Hopewell, CoreCivic's Managing Director of Investor Relations. Mr. Hopewell, you may begin your conference.

Cameron Hopewell

Thank you, Travis. 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 provision 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 fourth quarter 2019 earnings release issued after market yesterday, and in our Securities and Exchange Commission's filings, including forms 10-K, 10-Q and 8-K reports.

You are also cautioned that any forward-looking statements reflect management's current views 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 on the Investors Page of our website,

With that, it's my pleasure to turn the call over to our President and CEO, Damon Hininger. Damon?

Damon T. Hininger

Thank you, Cameron. Good morning, everyone. And thank you for joining our fourth quarter 2019 conference call today. CoreCivic is a diversified real estate investment trust, specializing in delivering government real estate solutions to serve the public good. We are the country's largest private owner of real estate assets being used by U.S. government agencies. Following our latest portfolio acquisition last month and the recent opening of our newly constructed Correctional Facility in Lansing, Kansas, we own 136 facilities, totaling nearly 19 million square feet of real estate. We have a 35-year history of delivering a broad range of solutions to help solve tough government challenges in flexible, cost effective ways. Our unique diversified portfolio of assets generates a steady reoccurring cash flow stream underwritten by investment-grade government tenants. Each of our three business segments provide specialized real estate to government tenants. Our safety segment owns and manages corrections and detention facility, including 50 correctional and detention facilities with a design capacity to safely and securely care for over 72,000 people.

In the last five years in this segment, we've helped over 30,000 individuals achieve their high school equivalency, or an industry recognized trade certificate, which evidence based research has shown to materially reduce recidivism rates. Our Community segment is a network of residential reentry centers and nonresidential community-based corrections alternatives that help address America's recidivism crisis and includes 29 residential reentry facilities with a design capacity to support 5,394 individuals. We also