CoreCivic (CXW) Financials

CoreCivic, Inc. (NYSE: CXW) has shown a generally stable revenue performance over the last four years, with total revenue consistently around $450 million to just over $520 million quarterly. The company's core revenues primarily stem from its other non-interest income segment, which remained strong, typically hovering near $460 million to $490 million per quarter.

Positive Financial Trends:

• Steady net income growth: Quarterly net income has increased from around $12.4 million in Q1 2023 to about $25.1 million in Q1 2025, indicating improving profitability.
• Consistent positive operating cash flow: Net cash from continuing operating activities remained solid, generally ranging from $22 million to $89 million per quarter, supporting ongoing operations and investments.
• Controlled depreciation and amortization expenses: Depreciation expenses have been stable in the $31 million to $32 million range per quarter, showing disciplined asset management.
• Reducing restructuring charges: Restructuring charges, which were significant in early 2024, reached zero by Q1 2025, showing stabilization in operations.
• Effective debt management recently: Long-term debt interest expense slightly decreased in early 2025 compared to 2023, and the company continues to actively repay debt, supporting financial health.
• Manageable operating expenses: Other operating expenses have hovered around $33 million to $41 million quarterly, showing effective cost control.

Neutral Financial Factors:

• Stable share count: Weighted average basic and diluted shares outstanding have remained around 109 million to 114 million shares, indicating no major dilutions or share issuances.
• Fluctuating nonoperating income: Nonoperating income/expense has been volatile but relatively small, ranging from slight gains to slight losses, thus having limited impact.
• Capital expenditures: Purchase of property and equipment is consistent with quarterly cash flow statements, generally around $9 million to $30 million invested in fixed assets.

Negative Financial Trends:

• High special charges impacting expenses: Other special charges consistently contributed large amounts, generally exceeding $350 million quarterly, which greatly increase total non-interest expenses and weigh on net income.
• Elevated long-term debt levels: Long-term debt remains very high at roughly $970 million to $1.1 billion over recent quarters, which could pressure interest costs and financial flexibility.
• Increasing cash outflows from financing activities: Repurchase of common equity and debt repayments result in significant cash outflows, weakening cash position and potentially limiting liquidity.
• Declining cash balances: Cash and equivalents decreased from approximately $111 million in Q1 2024 to $74 million in Q1 2025, possibly hinting at tightening liquidity.
• Retained earnings remain negative: CoreCivic's accumulated retained earnings have deepened their negative balance to approximately -$215 million, which could reflect past losses or dividend payouts exceeding earnings.

In summary, CoreCivic demonstrates solid revenue streams and improving net income with positive cash flows from operations. However, the company faces challenges stemming from high special charges, significant debt burdens, and decreasing cash reserves. Investors should watch for CoreCivic’s ability to manage expenses and debt while sustaining operational profitability going forward.