CoreCivic, Inc. (NYSE:CXW) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 11:00 am ET


CoreCivic, Inc. (NYSE:CXW) Q2 2020 Earnings Conference Call - Final Transcript


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Damon Hininger

quarter financial performance. On the top-line, our revenue in the second quarter was $472.6 million, which was a decline of 3.6% over the prior year quarter. The majority of this decline was experienced in our CoreCivic Safety segment. Normalized funds from operations or FFO was $0.56 per share in the second quarter, which represented a 90% decrease from the prior year quarter. The largest impact on our revenue in normalized FFO 2020 has been due to lower utilization levels from our largest government partner, Immigration and Customs Enforcement, primarily due to the COVID-19 pandemic. While current utilization levels by ICE are well below historic averages, the second and third quarters in 2019 were already going to present a difficult comparison because in those periods last year ICE reached historically high utilization levels. If you look at our financial performance sequentially, compared with the first quarter of 2020, our normalized info per share increased by 4% in the second quarter of 2020. Dave will discuss our financial results in great detail after I wrap up my comments.

But before I turn things over to him, let me take a moment to appreciate our tremendous CoreCivic Professionals. I have dedicated nearly three decades of my career to our company. Starting as a frontline correctional officer in Kansas at The Leavenworth Detention Center in 1992. I won't say I have seen it all, but I have seen a lot. COVID-19 is unprecedented in every way. For settings like correctional facilities, the pandemic puts forward a unique set of challenges. Fortunately, at CoreCivic, we prepare for these types of situations all the time and we acted early. We are known to that matters with all our people in the field. They have a tough, but rewarding job that has been made even more demanding. I have had the opportunity to get out into our facilities to see how they are doing and how we can help. Let me tell you that our CoreCivic professionals are an inspiration to me every day, but never more so than now. During our first quarter earnings report, I talked about the Hero Bonus and Extra Paid Day Off that we provided to say thanks to our people in the field.

But as we all know, COVID-19 has required the same level of vigilance and recent weeks as it did in the beginning. That is why last month, we were pleased to again show our gratitude to our field employees with mid-year raises. These pay salary adjustments, which nearly match what we did in the first half of the year, will bring our full-year additional investing in our people to $15 million. The Board and the Management team know that this is the right thing to do to take care of our people right now and to retain them over the long-term. Now we would like to spend a little time discussing our announcement from yesterday, which is the conclusion of our process to evaluate corporate structure and capital