CoreCivic, Inc. (NYSE:CXW) Q2 2020 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 11:00 am ET
[Operator Instructions] We will take our first question from Joe Gomes of NOBLE Capital Markets.
Good morning. Thanks for taking the questions.
Good morning Joe.
Good morning Joe.
Lot to digests here but let's start with the operating results and then maybe we will switch gears to the conversion. On the operating results, and looking forward I know the crystal balls is very cloudy today, but do you guys - when you are looking at you think that they are we are getting near a bottom on the ICE and U.S. Marshal type populations? They have declined I think the last time I have looked ICE was now below 22,000 on a daily pop versus in the 40s and is high as in the 50s last year, but just kind of get a little bit of your guys view on where we might be seeing a bottom on those.
Yes, Joe, thank you so much for your question. And you nailed it and kind of framed it, looking into a crystal ball because that is exactly what we would be doing if we are-answer this. Kind of an obvious point. But all this is going to be also what happens nationally internationally is related to COVID-19. And then obviously the direction that that changes relative to CDC guidance and Federal state and local partners and in turn our government partners this one be an ICE. So it would be pure speculation and into a looking into a crystal ball to give any kind of view on that at the moment. But I would say what we are doing and things that we can't control is continue to kind of recalibrate our resources, our staffing and our services within these facility as appropriate based on direction from ICE. It is very clear.
And I think it is getting reinforced with this announcement, this last couple days with ICE on Hutto for a 10-year contract that our solutions, our capacity, the locations of these facilities and also the additional services that we can help them provide like courts and space for attorneys and case managers that this solution continues to resonate and with that they want to sign long-term agreements. So hard to give at the moment any kind of forecasts on populations. I mean, you can look at - I guess, when they kind of look at the trajectory is it has narrowed or I guess flattened a tad, but it continue to see kind of the decline based on all the reports. But I will let David Garfinkle with me on that to answer.
So yes, I think the pace of declines is slowing a little bit. And Joe is a reminder we discussed last quarter, about two thirds of our federal contracts have guarantees if you are a fixed monthly payments. So we are protected on the downside somewhat. That is really to provide the capacity to the federal government in the event that they see a surge or an