CoreCivic discloses termination notice of ICE contract, sees 38c-41c EPS impact

The company states: “CoreCivic received notification today from U.S. Immigration and Customs Enforcement, or ICE, that the agency intends to terminate an inter-governmental service agreement between CoreCivic and ICE for services at the South Texas Family Residential Center in Dilley, TX 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 38c-41c.”