Market Updates & Recent Developments
Key Factors Impacting 2022 Financial Results
COVID-19 has had a significant impact on our occupancy, including most
notably due to population reductions from ICE, but our earnings and cash
flows remain strong-allowing for significant debt reduction in the last twelve
months.
➤ We have experienced labor shortages and wage pressures in many markets
across the country and have provided wage increases to remain
competitive. Recruiting has been particularly challenging during the
pandemic due to the front-line nature of the services we provide, and due to
labor shortages across the country.
➤ Our 2022 financial results have also been impacted by the transition at our
La Palma Correctional Center in Arizona, our second largest facility, from an
ICE population to an Arizona population as a result of a new contract award
from the state of Arizona for up to 2,706 inmates. The ramp of the new
contract, the largest awarded to the private sector by any state in over a
decade, commenced in April 2022 and was substantially completed prior to
year end 2022.
➤ Sales of non-correctional real estate assets throughout 2021 and 2022 have
reduced revenue and net operating income.
Impacted Business Segments
SAFETY
COMMUNITY
SAFETY
COMMUNITY
SAFETY
PROPERTIES
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