CoreCivic Reports Increase in Total Revenue for Latest Quarter
Segments of Revenue
CoreCivic operates in three segments: Safety, Community, and Properties. In the latest quarter, the company's total segment revenue amounted to $1.89 billion. The Safety segment generated the highest revenue at $1.73 billion, followed by the Community segment with $115 million, and the Properties segment with $49.9 million.
CoreCivic experienced an overall increase in revenue compared to the previous year. The Safety segment, which contributes the majority of the company's revenue, saw a slight increase from $1.68 billion to $1.73 billion. This growth can be attributed to the continued demand for CoreCivic's safety services. Additionally, the Community segment showed significant growth, with revenue increasing by $11.8 million or 11.4% from the previous year. This growth was driven by the operating results of residential reentry centers and electronic monitoring services. CoreCivic's management highlighted the positive performance of the CoreCivic Community segment, which generated 5.2% of the company's total segment net operating income.
While CoreCivic reported an increase in revenue, it also experienced higher operating expenses. The total segment operating expenses amounted to $1.46 billion, compared to $1.41 billion in the previous year. This increase in expenses may pose a challenge to the company's profitability. Additionally, the Properties segment saw a decline in revenue from $57.9 million to $49.9 million, indicating a potential weakness in this segment.
CoreCivic's net income for the latest quarter was $67.6 million. This represents a decrease from the previous year's net income of $165.3 million. The decrease in net income can be attributed to higher expenses, including general and administrative expenses, depreciation and amortization, and asset impairments. It is worth noting that the company did not incur any shareholder litigation expenses in the latest quarter, unlike the previous year.
CoreCivic reported an increase in total revenue for the latest quarter, driven by growth in the Safety and Community segments. The company's management highlighted the positive performance of the CoreCivic Community segment, which contributed to the overall revenue growth. However, higher operating expenses and a decline in revenue in the Properties segment pose challenges to the company's profitability. CoreCivic's net income decreased compared to the previous year, primarily due to higher expenses. Overall, while the company experienced revenue growth, it faces challenges in managing expenses and optimizing profitability.