CoreCivic, Inc. (CXW) has reported a 24.88 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $60.69 million, or $0.52 a share in the quarter, compared with $48.60 million, or $0.41 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $60.70 million, or $0.52 a share compared with $50.56 million or $0.43 a share, a year ago.
Revenue during the quarter grew 3.64 percent to $464.13 million from $447.84 million in the previous year period. Total expenses were 82.69 percent of quarterly revenues, down from 85.14 percent for the same period last year. This has led to an improvement of 246 basis points in operating margin to 17.31 percent.
Operating income for the quarter was $80.36 million, compared with $66.54 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $110.65 million compared with $97.66 million in the prior year period. At the same time, adjusted EBITDA margin improved 203 basis points in the quarter to 23.84 percent from 21.81 percent in the last year period.
"The final quarter of 2016 was exceptionally busy, with many significant accomplishments of which we are proud. During the quarter we formally launched the CoreCivic brand which more appropriately reflects the range of solutions we can provide, substantially completed the expansion of our Red Rock Correctional Center, entered into two new contracts with Immigration and Customs Enforcement to help address their emergent bed capacity needs, and extended our contract with the Federal Bureau of Prisons at our McRae Correctional Facility, to name a few of those accomplishments," said Damon T. Hininger, CoreCivic's president and chief executive officer.
For fiscal year 2017, CoreCivic, Inc. expects net income to be in the range of $172.50 million to $182 million. The company forecasts diluted earnings per share to be in the range of $1.46 to $1.54 on adjusted basis.
For the first-quarter 2017, CoreCivic, Inc. expects net income to be in the range of $44 million to $46 million. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.37 to $0.39.
Working capital increases sharply
CoreCivic, Inc. has recorded an increase in the working capital over the last year. It stood at $26.63 million as at Dec. 31, 2016, up 52.50 percent or $9.17 million from $17.46 million on Dec. 31, 2015. Current ratio was at 1.10 as on Dec. 31, 2016, up from 1.05 on Dec. 31, 2015.
Days sales outstanding went down to 23 days for the quarter compared with 24 days for the same period last year.
Debt remains almost stable
Total debt of CoreCivic, Inc. remained almost stable for the quarter at $1,445.17 million, when compared with the last year period. Total debt was 44.17 percent of total assets as on Dec. 31, 2016, compared with 43.27 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.99 as on Dec. 31, 2016, when compared with the last year. Interest coverage ratio improved to 4.88 for the quarter from 4.16 for the same period last year.
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