Exhibit 99.1
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News Release |
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Contact: |
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Investors: Michael Grant - Managing Director, Investor Relations - (615) 263-6957
Media: Steve Owen Vice President, Communications - (615) 263-3107 |
CORECIVIC RECEIVES TERMINATION
NOTICE FROM U.S. IMMIGRATION AND
CUSTOMS
ENFORCEMENT AT SOUTH TEXAS FAMILY RESIDENTIAL CENTER
Brentwood, Tenn. June 10, 2024 CoreCivic, Inc. (NYSE: CXW) (CoreCivic) received notification today
from U.S. Immigration and Customs Enforcement (ICE) that the agency intends to terminate an inter-governmental service agreement (IGSA) between CoreCivic and ICE for services at the South Texas Family Residential Center in
Dilley, TX (the Facility) effective in 60 days, or on or about August 9, 2024.
For the year ended December 31, 2023, and for the
quarter ended March 31, 2024, total revenues at the Facility were $156.6 million and $39.3 million, respectively. Given that the notice of termination was received today and based on cost uncertainties associated with the closure,
CoreCivic is suspending its financial guidance for 2024. However, we estimate the annualized financial impact to be a reduction to earnings per share of approximately $0.38 to $0.41.
South Texas Family Residential Center was initially opened during the Obama-Biden administration to improve conditions for a high volume of families then
arriving at the border. The facility features such amenities as turf soccer fields and onsite medical care. During 2021, the facilitys mission shifted to detention of single adults. The population at the Facility stood at 1,561 as of
June 9, 2024.
CoreCivic leases the Facility and the site upon which it was constructed from a third-party lessor. CoreCivics lease
agreement with the lessor is over a base period concurrent with the IGSA, which was amended in September 2020 to extend the term of the agreement through September 2026. ICEs termination rights, which permit ICE to terminate the agreement
for convenience or non-appropriation of funds, without penalty, by providing CoreCivic with at least a 60-day notice, were unchanged under the extension. Concurrent
with the extension of the amended IGSA, the lease with the third-party lessor for the site was also extended through September 2026, and permits CoreCivic to terminate the lease agreement with a notification period of at least 60 days. CoreCivic has
provided such notice of lease termination to the lessor.
About CoreCivic
CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective
ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential
alternatives to incarceration to help address Americas recidivism crisis, and government real estate solutions. We are the nations largest owner of partnership correctional, detention and residential reentry facilities, and believe we
are the largest private owner of real estate used by government agencies in the United States. We have been a flexible and dependable partner for government for more than 40 years. Our employees are driven by a deep sense of service, high standards
of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.
5501 Virginia
Way, Brentwood, Tennessee 37027, Phone: 615-263-3000