CoreCivic Inc (CXW) 2024 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Q1 2024 CoreCivic, Inc. earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 CoreCivic, Inc. 2024 年第一季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your first speaker today, Mike Grant, Managing Director of Investor Relations. Please go ahead.

現在我想將會議交給今天的第一位發言者，投資者關係董事總經理麥克·格蘭特。請繼續。

Thank you, operator. Good morning, ladies and gentlemen, and thank you for joining us today. Participating on today's call are Damon Hininger, CoreCivic's President and Chief Executive Officer; and David Garfinkle, our Chief Financial Officer. We're also joined here in the room by our Vice President of Finance, Brian Hammonds.

謝謝你，接線生。早安，女士們先生們，感謝你們今天加入我們。參加今天電話會議的有 CoreCivic 總裁兼執行長 Damon Hininger；以及我們的財務長 David Garfinkle。我們的財務副總裁 Brian Hammonds 也加入了我們的行列。

On this call, we will discuss financial results for the first quarter of 2024, as well as updated financial guidance for the 2024 year. We'll also discuss developments with our government partners and provide you with other general business updates. During today's call, our remarks, including our answers to your questions will include forward-looking statements pursuant to the Safe Harbor provisions of the Private Securities and Litigation Reform Act.

在本次電話會議上，我們將討論 2024 年第一季的財務表現以及 2024 年更新的財務指引。我們還將與政府合作夥伴討論進展情況，並為您提供其他一般業務更新。在今天的電話會議中，我們的言論，包括我們對您問題的回答，將包括根據《私人證券和訴訟改革法案》安全港條款做出的前瞻性陳述。

Our actual results or trends may differ materially as a result of a variety of factors, including those identified in our first-quarter 2024 earnings release issued after market yesterday as well as in our Securities and Exchange Commission filings, including Forms 10-K, 10-Q, and 8-K reports. You are also cautioned that any forward-looking statements reflect management's current views only and that the company undertakes no obligation to revise or update such statements in the future.

我們的實際結果或趨勢可能會因多種因素而產生重大差異，包括昨天盤後發布的2024 年第一季財報以及我們向證券交易委員會提交的文件（包括表格10-K、10）中確定的因素-Q 和 8-K 報告。也請您注意，任何前瞻性陳述僅反映管理層當前的觀點，本公司不承擔將來修改或更新此類陳述的義務。

Management will also discuss certain non-GAAP metrics. A reconciliation of the most comparable GAAP measurement is provided in the corresponding earnings release and included in the company's quarterly supplemental financial data report posted on the Investors page of the company's website at CoreCivic.com. With that, it is my pleasure to turn the call over to our President and CEO, Damon Hininger.

管理階層也將討論某些非公認會計準則指標。相應的收益發布中提供了最具可比性的 GAAP 衡量標準的調節表，並包含在公司季度補充財務數據報告中，該報告發佈在公司網站 CoreCivic.com 的投資者頁面上。至此，我很高興將電話轉給我們的總裁兼執行長 Dammon Hininger。

Thank you, Mike. Good morning and thank you for joining us for our first-quarter 2024 earnings call. On today's call, I will provide details of our first-quarter financial performance. I will also discuss with you our latest operational results and update you on the latest developments with our government partners and our capital allocation strategy.

謝謝你，麥克。早安，感謝您參加我們的 2024 年第一季財報電話會議。在今天的電話會議上，我將提供我們第一季財務業績的詳細資訊。我也會與您討論我們最新的營運業績，並向您介紹我們與政府合作夥伴的最新進展以及我們的資本配置策略。

Following my remarks, I will turn the call over to our CFO, Dave Garfinkle, who will provide greater detail on our financial results and on our updated 2024 financial guidance. Dave will also provide an update on a very active quarter for our ongoing capital structure initiatives, including details regarding our recently completed debt refinancing.

在我發表演講後，我將把電話轉給我們的財務長戴夫·加芬克爾 (Dave Garfinkle)，他將提供有關我們的財務業績和更新的 2024 年財務指引的更多詳細資訊。戴夫還將提供我們正在進行的資本結構計劃的一個非常活躍的季度的最新情況，包括有關我們最近完成的債務再融資的詳細資訊。

I'll start with a high-level overview of our first-quarter financial results. In the first quarter, we generated revenue just over $500 million, a 9% increase compared with the prior-year quarter. This is our highest level of quarterly revenue achieved since the third quarter of 2019, 18 quarters ago, and it is also our highest rate of year-over-year revenue growth since the same quarter of 2019.

我將首先概述我們第一季的財務表現。第一季度，我們的營收略高於 5 億美元，比去年同期成長 9%。這是我們自18個季度前的2019年第三季以來取得的最高季度營收水平，也是我們自2019年同季以來的最高年收入成長率。

The composition of our revenue growth also speaks to the current strength of our business as well as to the level of our partners' needs and their trust in us during this quarter, we experienced revenue growth from all three of our partner groups, federal, state, and local governments. I will provide more color on each later in this call.

我們收入成長的組成也說明了我們目前業務的實力以及合作夥伴的需求水平以及他們在本季度對我們的信任，我們的所有三個合作夥伴群體（聯邦、州）的收入都實現了增長和地方政府。我將在本次通話中稍後為每個內容提供更多顏色。

For the first quarter of 2024, we generated normalized funds from operation or FFO of $52.6 million or $0.46 per share compared to $38.9 million or $0.34 per share in the first quarter of 2023, representing a per-share increase of 35%. The increase in FFO was driven by the higher federal, state, and local populations, combined with expense normalization and lower interest expense resulting from our debt reduction strategy, partly offset by higher G&A expenses.

2024 年第一季度，我們從營運或FFO 產生的正常化資金為5,260 萬美元，即每股0.46 美元，而2023 年第一季為3,890 萬美元，即每股0.34 美元，每股成長了35 %。FFO 的增加是由聯邦、州和當地人口增加所推動的，加上我們的債務削減策略帶來的費用正常化和利息費用降低，部分被較高的一般管理費用所抵消。

Revenue from our federal partners, primarily Immigration and Customs Enforcement and the United States Marshals Service increased 11% versus the first quarter of last year. ICE in particular was up significantly as Title 42 was still in place in the comparable period of last year. As a reminder, Title 42, which was invoked in March of 2020 at the start of the COVID-19 response, is a law that empowers federal health authorities to deny migrants entry into the United States in order to prevent the spread of contagious diseases.

來自我們的聯邦合作夥伴（主要是移民和海關執法局以及美國法警局）的收入比去年第一季增加了 11%。尤其是 ICE 的漲幅顯著，因為去年同期第 42 條仍然有效。提醒一下，第 42 章於 2020 年 3 月應對新冠肺炎 (COVID-19) 疫情時被援引，該法律授權聯邦衛生當局拒絕移民進入美國，以防止傳染病的傳播。

Title 42 officially ended May 11th of 2023, and our populations with ICE have been consistently higher since then. As mentioned in our earnings release, during the first quarter of 2024, revenue from ICE was $153.8 million compared to $130.7 million during the comparable quarter in 2023.

Title 42 於 2023 年 5 月 11 日正式結束，自那時起，我們的 ICE 人口一直在增加。正如我們在財報中所提到的，2024 年第一季度，ICE 的營收為 1.538 億美元，而 2023 年同期為 1.307 億美元。

After several months of deliberation, Congress passed a bipartisan funding bill in March, providing for 41,500 ICE detention beds. Note that these funded beds also include a number of beds reserved as third facilities under fixed monthly payment contracts, so the actual number detained will likely not achieve that full 41,500 level in the near term.

經過幾個月的審議，國會於 3 月通過了一項兩黨資助法案，為 ICE 提供 41,500 個拘留床位。請注意，這些資助床位還包括根據每月固定付款合約保留為第三設施的一些床位，因此實際拘留人數短期內可能不會達到 41,500 個完整的水平。

Interestingly, ICE's total detainee population declined towards the end of the quarter and into the start of the second quarter. And the most recent detainee count published by ICE was 34,373 as of April 20, down from roughly 37,000 to 39,000 during most of the first quarter of 2024. We believe that this was the result of an expectation of lower number of funded detention beds following the unsuccessful passage of the supplemental funding bill in the early part of the calendar year.

有趣的是，ICE 的被拘留者總數在本季末和第二季初有所下降。截至 4 月 20 日，ICE 公佈的最新被拘留人數為 34,373 人，低於 2024 年第一季大部分時間的約 37,000 人至 39,000 人。我們認為，這是由於今年年初補充資金法案未成功通過後預期資助拘留床位數量減少的結果。

As you know, ICE populations are rarely static, and we continue to work closely with ICE's system in their important mission. Our state revenue in the first quarter grew 5% versus the prior year based on higher per-diem rates and sturdy occupancy from many of our state government partners, as well as contributions from two new state contracts signed in the fourth quarter of 2023.

如您所知，ICE 人口很少是靜態的，我們將繼續與 ICE 系統密切合作以完成其重要任務。由於每日津貼率的提高和許多州政府合作夥伴的強勁入住率，以及 2023 年第四季度簽署的兩份新州合約的貢獻，我們第一季的州收入比上一年增長了 5%。

Now in its second full year under a management contract with the State of Arizona, our La Palma Correctional Center in Eloy, Arizona continues to show stable occupancy as well as improving operating and financial metrics. During the first quarter, we were able to discontinue the facility's reliance on temporary labor resources and incentives due to strong local hiring and management oversight.

現在，我們位於亞利桑那州埃洛伊的拉帕爾馬懲教中心已進入與亞利桑那州簽訂管理合約的第二個完整年度，其入住率繼續保持穩定，營運和財務指標也不斷改善。在第一季度，由於當地強而有力的招募和管理監督，我們能夠不再依賴臨時勞動力資源和激勵措施。

This is a welcomed accomplishment as La Palma is our second largest facility by capacity. So moving its financial performance in the right direction has been and continues to be a priority.

這是一項值得歡迎的成就，因為拉帕爾馬島是我們容量第二大的設施。因此，讓其財務表現朝著正確的方向發展一直是並將繼續成為當務之急。

To round out our revenue discussion, local revenue, which is primarily revenue generated from contracts with county governments, grew by 44%, albeit off a smaller base. This was the first full quarter with both Hinds County, Mississippi and Harris County, Texas as partners, resulting from management contracts signed during the second half of 2023.

為了完善我們的收入討論，地方收入（主要是與縣政府簽訂的合約產生的收入）增長了 44%，儘管基數較小。這是密西西比州海因茲縣和德克薩斯州哈里斯縣作為合作夥伴的第一個完整季度，源於 2023 年下半年簽署的管理合約。

Both populations are housed at our Tallahatchie County Correctional Facility located in Tutwiler, Mississippi, and both contracts are now fully ramped. Our occupancy for the first quarter of 2024 was 75.2%. This is our highest occupancy rate since the first quarter of 2020, which, as you may recall, is the quarter that marked the start of the COVID-19 pandemic response.

這兩個人都被關押在我們位於密西西比州圖特懷勒的塔拉哈奇縣懲教所內，兩項合約現已全面啟動。2024 年第一季的入住率為 75.2%。這是我們自 2020 年第一季以來的最高入住率，您可能還記得，這一季度標誌著 COVID-19 大流行應對措施的開始。

From the first quarter of 2023 to the first quarter of this year, occupancy in our safety segment increased from 71% to 76%, and occupancy in our community segment increased from 59% to 63%. As we have mentioned in the past, our operating model has significant operating levers to changes in occupancy, and this was a factor in our margin improvement during the first quarter.

從2023年第一季到今年第一季，我們的安全部分的入住率從71%增加到76%，社區部分的入住率從59%增加到63%。正如我們過去所提到的，我們的營運模式對入住率的變化具有顯著的操作槓桿，這是我們第一季利潤率改善的一個因素。

In addition to receiving larger populations from existing contracts with ICE and state customers, our strong occupancy also reflects the successful ramp of four new contracts announced during the third and fourth quarters of 2023. These new contracts include a contract for 120 Montana inmates at our Saguaro Correctional Facility in Eloy, Arizona, a contract for 240 Wyoming inmates at our Tallahatchie County Facility in Mississippi, and the two new county contracts mentioned previously for up to 610 detainees, also at our Tallahatchie facility.

除了透過與 ICE 和州客戶的現有合約接收更多人口外，我們的強勁入住率還反映出 2023 年第三和第四季度宣布的四份新合約的成功增加。這些新合約包括亞利桑那州埃洛伊仙人掌懲教所的120 名蒙大拿州囚犯的合同、密西西比州塔拉哈奇縣監獄的240 名懷俄明州囚犯的合同，以及前面提到的兩份新的縣合同，涉及最多610 名被拘留者。

These four new contracts completed their initial intakes during the fourth quarter of 2023 and into the first quarter of 2024 and contributed to our growth in [oxy] and revenue. We are grateful for the high degree of trust from our partners that these existing and expanding contracts represent, and I couldn't be more prouder of our dedicated employees who helped to earn that trust by providing the flexibility and timely delivery of quality services our partners rely on to fulfill their missions.

這四份新合約在 2023 年第四季和 2024 年第一季完成了初始接收，為我們的 [oxy] 和收入成長做出了貢獻。我們感謝這些現有和不斷擴大的合約所代表的合作夥伴的高度信任，我為我們敬業的員工感到無比自豪，他們透過為我們的合作夥伴提供靈活性和及時交付的優質服務，幫助我們贏得了這種信任依靠完成自己的使命。

Next, I want to provide an update on labor attraction and retention, an important component of our business that became unusually challenging starting with the onset of the COVID-19 pandemic. During 2022 and 2023, labor market pressures necessitated temporary incentives and related incremental operating expenses.

接下來，我想提供有關勞動力吸引和保留的最新情況，這是我們業務的一個重要組成部分，自 COVID-19 大流行爆發以來，它變得異常具有挑戰性。2022 年和 2023 年期間，勞動市場壓力需要臨時激勵措施和相關增量營運費用。

During those two years, we designed and deployed different human capital strategies and made significant investments in our frontline employees. Through those actions, we have increased our staffing level through improved recruiting and retention. We are now seeing significant normalization in our labor market as well as greater workforce stability.

在那兩年裡，我們設計和部署了不同的人力資本策略，並對第一線員工進行了大量投資。透過這些行動，我們透過改善招募和留任來提高人員配置水準。我們現在看到勞動市場顯著正常化以及勞動穩定性的提高。

Financially, as we review first-quarter results, our improved staffing has allowed us to dial back the higher spending on temporary incentives and associated travel expenses and has positioned us well operationally to manage our customers' higher population needs.

在財務方面，當我們回顧第一季業績時，我們改善的人員配置使我們能夠減少臨時激勵和相關差旅費用的較高支出，並使我們能夠在營運上更好地管理客戶更高的人口需求。

Turning to our community segment, which is comprised of 23 residential re-entry facilities, we experienced an increase in occupancy to 63.1% in the first quarter of 2024 versus 59.4% in the prior-year period. Our facilities in this segment serve the bureau prisons as well as state and county governments and the increase in [oxy] in this segment was broad-based.

至於我們的社區部分，該部分由 23 個住宅重返設施組成，2024 年第一季的入住率增加至 63.1%，而去年同期為 59.4%。我們在這一領域的設施為局監獄以及州和縣政府服務，並且該領域的 [oxy] 增長基礎廣泛。

We also provide electronic monitoring and case management services in our community segment. Our community segment represents a vital part of our re-entry mission and is often critical to the successful re-entry of residents in our care.

我們也在社區部分提供電子監控和案件管理服務。我們的社區部分是我們重返任務的重要組成部分，通常對於我們照顧的居民成功重返家園至關重要。

Net operating income in this segment increased 56% in the first quarter of 2024 from the prior-year quarter due to increased occupancy as well as per-diem increases obtained in connection with contract renewals.

由於入住率增加以及與合約續約相關的每日津貼增加，2024 年第一季該部門的淨營業收入較上年同期成長 56%。

Similar to our safety segment, our community segment facilities have been able to reduce temporary staff incentives. The positive oxy trend in the community segment is likely to continue now that pandemic-related public health policies have ended and as more of our government partners return to these important residential reentry programs that help individuals better prepare for successfully rejoining our communities.

與我們的安全部門類似，我們的社區部門設施已經能夠減少臨時員工誘因。由於與大流行相關的公共衛生政策已經結束，隨著我們更多的政府合作夥伴返回這些重要的住宅重新進入計劃，社區部分的積極吸氧趨勢可能會持續下去，這些計劃可以幫助個人更好地為成功重新加入我們的社區做好準備。

The strong financial results reflected throughout our business have enabled us to execute on our long-term capital allocation strategy with more intensity. During the first quarter of 2024, we repurchased 2.7 million shares of our common stock at a cost of nearly $40 million, surpassing the amount we repurchased during all of 2023.

我們整個業務所反映的強勁財務業績使我們能夠更有力度地執行長期資本配置策略。2024 年第一季度，我們以近 4,000 萬美元的成本回購了 270 萬股普通股，超過了 2023 年全年的回購金額。

Even after these repurchases, we ended the quarter with leverage measured as net debt to adjusted EBITDA at 2.7 times for the trailing 12 months, placing us for the first time within our target leverage range of 2.25 times to 2.75 times that we established in August of 2020. This is a significant accomplishment, and we are proud of the strategy, focus, and discipline that has led us here.

即使在這些回購之後，我們在本季末的槓桿率（以淨債務與調整後EBITDA 之比衡量）在過去12 個月中仍為2.7 倍，這使我們首次處於我們2019 年8 月確定的2.25 倍至2.75 倍的目標槓桿範圍內。這是一項重大成就，我們對引領我們取得今天成就的策略、重點和紀律感到自豪。

We believe maintaining a disciplined capital allocation strategy, combined with strong financial results, also contributed to the successful refinancing the substantial portion of our debt during the quarter, including the issuance of $500 million of 8.25 senior unsecured notes and the repayment of nearly $600 million of our senior unsecured notes. David will provide you further detail regarding the significant capital market activities.

我們相信，維持嚴格的資本配置策略，加上強勁的財務業績，也有助於我們在本季度成功為大部分債務進行再融資，包括發行5 億美元的8.25 高級無擔保票據以及償還近6 億美元的債務。大衛將為您提供有關重要資本市場活動的更多詳細資訊。

Looking ahead, the longer-term macroenvironment for our federal, state, and local business remains positive. Our government partners are facing complex capacity, infrastructure, budgetary, and population challenges and we see increased opportunities to serve their evolving needs. This demand potential is evident from looking at jail backlogs, prison forecast, and from discussions with our government partners. In particular, we remain in discussions with federal, state, and local government agencies, including agencies we do not currently serve, to help address their various challenges in the near to long term.

展望未來，我們的聯邦、州和地方業務的長期宏觀環境仍然樂觀。我們的政府合作夥伴面臨著複雜的能力、基礎設施、預算和人口挑戰，我們看到滿足他們不斷變化的需求的機會越來越多。從監獄積壓案件、監獄預測以及與政府合作夥伴的討論中可以明顯看出這種需求潛力。特別是，我們仍在與聯邦、州和地方政府機構（包括我們目前不服務的機構）進行討論，以幫助他們解決近期和長期的各種挑戰。

In conclusion, the macro environment in which we operate continues to improve. Our financial results, including those published last night, reflect that improved environment. But those results also reflect the hard work, the attention to detail, and the smart decisions made by our dedicated team here at CoreCivic.

綜上所述，我們經營的宏觀環境持續改善。我們的財務業績，包括昨晚發布的財務業績，反映了環境的改善。但這些結果也反映了我們 CoreCivic 專業團隊的辛勤工作、對細節的關注以及做出的明智決策。

Our occupancy is rebounding to its highest level in nearly four years, and our margin is beginning to illustrate the operating leverage that comes with higher occupancy and normalized expense structure, reflecting our progress against labor-related cost pressures that rose sharply during the COVID-19 pandemic.

Our occupancy is rebounding to its highest level in nearly four years, and our margin is beginning to illustrate the operating leverage that comes with higher occupancy and normalized expense structure, reflecting our progress against labor-related cost pressures that rose sharply during the COVID-19大流行.

Our strong financial results and disciplined capital allocation strategy has provided us with tremendous balance sheet flexibility to better maximize shareholder value. Based on our financial performance to start 2024 and positive outlook for the remainder of the year, we have updated our full-year financial guidance, including increases to our adjusted EBITDA by nearly $10 million, adjusted EPS by $0.06, and normalized FFO per share of $0.08.

我們強勁的財務表現和嚴格的資本配置策略為我們提供了巨大的資產負債表彈性，以更好地最大化股東價值。基於 2024 年開始的財務業績和今年剩餘時間的積極前景，我們更新了全年財務指引，包括調整後 EBITDA 增加近 1000 萬美元，調整後 EPS 增加 0.06 美元，以及每股 FFO 標準化0.08 美元。

One more comment, if you don't mind, before I turn the call over to Dave. This week is National Correctional Officers and Employees Week, a week started by President Ronald Reagan in the 1980s to recognize the contributions of the professionals in our vocation. I would like to say to our teachers, nurses, chaplains, those who wear the uniform, and all who work within our company my sincere appreciation for what you do in helping us achieve our mission each and every day.

如果您不介意的話，在我將電話轉給戴夫之前，我再說一句。本周是國家懲教人員和僱員週，這一周由羅納德·雷根總統於 20 世紀 80 年代發起，旨在表彰專業人員在我們職業中的貢獻。我想對我們的老師、護士、牧師、穿制服的人以及我們公司的所有工作人員表示衷心感謝，感謝你們每天為幫助我們實現使命所做的努力。

Now I will turn the call over to Dave Garfinkle, our CFO, who will provide a more detailed look at our strong first-quarter financial results, assumptions included in our newly updated financial guidance, as well as further details regarding our capital market activities. Over to you, Dave.

現在，我將把電話轉給我們的財務長戴夫·加芬克爾(Dave Garfinkle)，他將更詳細地介紹我們強勁的第一季度財務業績、我們新更新的財務指引中包含的假設，以及有關我們資本市場活動的更多詳細資訊。交給你了，戴夫。

Thank you, Damon, and good morning, everyone. In the first quarter of 2024, we reported GAAP net income of $0.08 per share compared with $0.11 per share in the prior-year quarter. Excluding special items, adjusted EPS during the first quarter of 2024 was $0.25 compared with $0.13 per share in the prior-year quarter. Special items in the first quarter include $27.2 million of expenses associated with debt repayments and refinancing transactions and a small gain on sale of real estate assets.

謝謝你，達蒙，大家早安。2024 年第一季度，我們公佈的 GAAP 淨利潤為每股 0.08 美元，而去年同期為每股 0.11 美元。不包括特殊項目，2024 年第一季調整後每股收益為 0.25 美元，而去年同期為每股 0.13 美元。第一季的特殊項目包括與債務償還和再融資交易相關的 2,720 萬美元費用以及出售房地產資產的小額收益。

Normalized FFO per share was $0.46 during the first quarter of 2024 compared with $0.34 in the prior-year quarter, an increase of 35%. Adjusted EBITDA was $89.5 million during the first quarter of 2024 compared with $73.7 million in the prior-year quarter, an increase of $15.8 million or 21%. The increase in adjusted EBITDA resulted from higher occupancy from federal, state, and local populations and the continued normalization of our operating expense structure, partially offset by an increase in G&A expenses.

2024 年第一季度，每股標準化 FFO 為 0.46 美元，與去年同期的 0.34 美元相比，成長了 35%。2024 年第一季調整後 EBITDA 為 8,950 萬美元，而去年同期為 7,370 萬美元，增加了 1,580 萬美元，即 21%。調整後 EBITDA 的增加是由於聯邦、州和當地居民入住率的提高以及我們營運費用結構的持續正常化，但部分被一般及行政費用的增加所抵消。

These factors, along with a lower normalized effective income tax rate in the current-year quarter also contributed to the increase in adjusted EPS and normalized FFO per share. The lower normalized effective income tax rate resulted from an income tax benefit associated with stock-based compensation vesting, contributing to a favorable impact of $0.02 per share.

這些因素，加上本季較低的標準化有效所得稅率，也促進了調整後每股盈餘和標準化 FFO 的成長。較低的標準化有效所得稅率源自於與股票薪酬歸屬相關的所得稅優惠，帶來每股 0.02 美元的有利影響。

While this tax consequence occurs every year, the benefit was amplified by our rise in our stock price since the grant date, resulting in a higher tax deduction. In our safety segment, our largest segment, facility net operating income increased $18.4 million or 21% to $107.6 million in the current-year quarter from $89.3 million in the prior-year quarter.

雖然這種稅務後果每年都會發生，但自授予日以來我們股價的上漲放大了收益，導致更高的稅收減免。在我們最大的安全部門，本季設施淨營業收入從去年同期的 8,930 萬美元增至 1.076 億美元，增幅為 1,840 萬美元，增幅為 21%。

The increase in NOI was driven by an increase in occupancy in this segment from 70.9% to 76.1%, primarily resulting from higher populations from ICE due to the expiration of Title 42 on May 11, 2023. Title 42 is a policy that had been used since March 2020 that denied entry at the US border to asylum seekers and anyone crossing the border without proper documentation or authority in an effort to contain the spread of COVID-19.

NOI 的成長是由於該細分市場的入住率從 70.9% 增加至 76.1%，這主要是由於第 42 條於 2023 年 5 月 11 日到期而導致 ICE 人口增加。第 42 章是自 2020 年 3 月以來一直使用的一項政策，拒絕尋求庇護者和任何沒有適當文件或授權越境的人進入美國邊境，以遏制 COVID-19 的傳播。

Since Title 42 expired, ICE detention populations have grown nationwide. Occupancy also increased due to new contracts signed in the second half of 2023, including two new state contracts with the states of Montana and Wyoming, and two new county contracts with Hinds County, Mississippi and Harris County, Texas.

自第 42 條到期以來，ICE 拘留人數在全國不斷增加。由於2023 年下半年簽署的新合同，入住率也有所增加，其中包括與蒙大拿州和懷俄明州簽訂的兩份新的州合同，以及與密西西比州海因茲縣和德克薩斯州哈里斯縣簽訂的兩份新縣合約。

In our community segment, facility net operating income increased $2.1 million or 56% to $5.8 million in the current-year quarter from $3.7 million in the prior-year quarter. Occupancy in the community segment increased from 59.4% to 63.1% and was broad based as more of our government partners are returning to these important residential re-entry programs that help individuals to be better prepared for successfully transitioning from a period of incarceration into our communities, following systemic disruptions during the COVID-19 pandemic.

在我們的社區部門，設施淨營業收入從去年同期的 370 萬美元增至本季的 580 萬美元，增幅為 210 萬美元，增幅為 56%。社區部分的入住率從59.4% 增加到63.1%，並且基礎廣泛，因為我們越來越多的政府合作夥伴正在返回這些重要的住宅重新進入計劃，這些計劃幫助個人為成功從監禁期過渡到我們的社區做好更好的準備，繼 COVID-19 大流行期間的系統性破壞之後。

Operating margins in our safety and community facilities combined improved to 23.7% in the first quarter of 2024 compared to 21.2% in the prior-year quarter. The increase in our operating margins was due to the increase in occupancy from 70.1% to 75.2% for our safety and community segments combined. Per-diem increases we have been successful in obtaining, which served to increase revenue per man day by 4.1% over the prior-year quarter.

2024 年第一季度，我們的安全和社區設施的營業利潤率合計提高至 23.7%，而去年同期為 21.2%。我們的營業利潤率增加是由於我們的安全和社區部分的入住率從 70.1% 增加到 75.2%。我們成功實現了每日津貼的增加，這使得每人日收入比去年同期增加了 4.1%。

And the normalization of operating expense trends we have experienced over the past several quarters, continuing into the first quarter of 2024. During the first quarter, we were able to continue reducing certain incremental labor-related expenses such as registry nursing, temporary wage incentives, and travel. Despite inflation and labor market pressures that have been steadily easing over the past several quarters. These three expense categories declined by $6.1 million from the first quarter of 2023.

我們在過去幾季經歷了營運費用趨勢的正常化，並將持續到 2024 年第一季。在第一季度，我們能夠繼續減少某些與勞動力相關的增量費用，例如登記護理、臨時工資獎勵和差旅。儘管過去幾季通膨和勞動力市場壓力一直在穩步緩解。這三項支出較 2023 年第一季減少了 610 萬美元。

In our property segment, facility net operating income declined $1.3 million due to the expiration of the lease with the State of Oklahoma at our North Fork Correctional Facility effective June 30, 2023, partially offset by the transition of the Allen Gamble Correctional Center from a facility we operated in our safety segment to a facility we leased to the State of Oklahoma in the property segment effective October 1, 2023.

在我們的房地產部門，由於與俄克拉荷馬州的北福克懲教所的租約於2023 年6 月30 日到期，設施淨營業收入下降了130 萬美元，部分被艾倫甘布爾懲教中心從設施的過渡所抵消我們在安全部門運營的設施是我們在房地產部門租賃給俄克拉荷馬州的，自 2023 年 10 月 1 日起生效。

Turning next to the balance sheet, during the first quarter, we completed the issuance of $500 million of unsecured notes at an interest rate of 8.25%. The proceeds of these notes, which have a maturity date of April 15, 2029, were used to tender for our then-outstanding 8.25% unsecured notes with a maturity date of April 15, 2026.

接下來看資產負債表，第一季度，我們完成了 5 億美元無擔保票據的發行，利率為 8.25%。這些票據的到期日為 2029 年 4 月 15 日，所得款項用於投標我們當時未償還的 8.25% 無擔保票據，到期日為 2026 年 4 月 15 日。

Note holders with an aggregate principal amount of $494.3 million or 83.3% of the aggregate principal amount of the old 8.25% unsecured notes outstanding tendered their notes by the expiration date on March 11. And on April 15th, we redeemed the remaining $98.8 million balance outstanding. In addition to the net proceeds received from the issuance of these notes, we used borrowings under our revolving credit facility and cash on hand to fund the tender and redemption of the old 8.25% unsecured notes.

本金總額為 4.943 億美元的票據持有人，即舊的 8.25% 無擔保未償還票據本金總額的 83.3%，在 3 月 11 日到期日之前提交了票據。4 月 15 日，我們贖回了剩餘的 9,880 萬美元未償餘額。除了發行這些票據所收到的淨收益外，我們還利用循環信貸額度下的借款和手頭現金為舊的 8.25% 無擔保票據的投標和贖回提供資金。

The old 8.25% unsecured notes were originally issued in 2021, and we were very pleased to be able to issue the new notes with the same coupon as the old notes, even though treasury rates have risen by approximately 325 basis points since then, which we believe is a testament to our disciplined capital allocation strategy and ongoing strength of our business.

舊的 8.25% 無抵押票據最初於 2021 年發行，我們很高興能夠以與舊票據相同的票據發行新票據，儘管國債利率自那時以來已上漲約 325 個基點，我們相信這證明了我們嚴格的資本配置策略和我們業務的持續實力。

During the first quarter, we also repurchased 2.7 million shares of our common stock at an aggregate purchase price of $39.4 million or $14.52 per share, exceeding the $38.1 million of shares we repurchased throughout all of 2023. Since our share repurchase program was announced in May 2022 through March 31, we have repurchased 12.8 million shares of our stock at a total cost of $152 million or an average price of $11.87 per share, leaving $73 million available under our $225 million Board authorization.

第一季度，我們也回購了 270 萬股普通股，總購買價為 3,940 萬美元，即每股 14.52 美元，超過了我們 2023 年全年回購的 3,810 萬美元股票。自我們於2022 年5 月宣布股票回購計畫以來，截至3 月31 日，我們已回購1,280 萬股股票，總成本為1.52 億美元，平均價格為每股11.87 美元，在董事會授權的2.25 億美元下，剩下7,300 萬美元。

Our leverage, measured by net debt to adjusted EBITDA, was 2.7 times using the trailing 12 months ended March 31, 2024, down from 2.8 times at December 31, 2023, and reaching our targeted leverage of between 2.25 times and 2.75 times. We achieved our targeted leverage in the first quarter despite using $32 million of cash for costs associated with the debt repayments and issuance of the new notes and despite repurchasing shares of our stock at an accelerated pace during the quarter.

截至2024 年3 月31 日的過去12 個月，我們的槓桿率（以淨債務與調整後EBITDA 之比衡量）為2.7 倍，低於2023 年12 月31 日的2.8 倍，達到了2.25 倍至2.75 倍的目標槓桿率。儘管使用了 3,200 萬美元現金來償還債務和發行新票據，並在本季度加速回購股票，但我們還是在第一季實現了目標槓桿率。

Following the repayment of the old 8.25% unsecured notes, we have no debt maturities until 2027 with a modest $243.1 million of unsecured notes at a rate of 4.75% mature. As of March 31, we had $111.4 million of cash on hand and an additional $257 million of borrowing capacity on our revolving credit facility, providing us with total liquidity of $368.4 million.

在償還舊的 8.25% 無擔保票據後，我們直到 2027 年才到期債務，有 2.431 億美元的無擔保票據，到期利率為 4.75%。截至 3 月 31 日，我們手頭上有 1.114 億美元的現金，循環信貸額度還有 2.57 億美元的額外借款能力，為我們提供了 3.684 億美元的總流動性。

We used $106.9 million of this liquidity to fund the aforementioned final redemption of the old 8.25% unsecured notes in April, including the redemption premium and accrued interest on these notes.

我們使用其中的 1.069 億美元流動資金為上述 4 月份舊的 8.25% 無擔保票據的最終贖回提供資金，包括這些票據的贖回溢價和應計利息。

Moving lastly to a discussion of our 2024 financial guidance, we expect to generate adjusted EPS of $0.66 to $0.76, up from our previous guidance of $0.58 to $0.72 and normalized FFO per share of $1.56 to $1.66, up from our previous guidance of $1.46 to $1.61.

最後討論我們的2024 年財務指導，我們預計調整後每股收益為0.66 美元至0.76 美元，高於我們之前指導的0.58 美元至0.72 美元，每股標準化FFO 為1.56 美元至1.66 美元，高於我們之前指導的1.46 美元至1.61 美元。

Our guidance reflects our outperformance in Q1 relative to our internal forecast, leaving the remainder of our forecast essentially unchanged from our previous guidance. Relative to 2023, our guidance continues to reflect growth in state and local residential populations, largely attributable to the new contract awards obtained during the second half of 2023. Our guidance further reflects an increase in our average daily federal populations in 2024 compared with 2023, mainly due to the expiration of Title 42 in May.

我們的指導反映了我們第一季的表現優於我們的內部預測，而我們預測的其餘部分與先前的指導基本保持不變。相對於 2023 年，我們的指引繼續反映了州和地方居民人口的成長，這主要歸功於 2023 年下半年獲得的新合約。我們的指導進一步反映了 2024 年平均每日聯邦人口較 2023 年增加，這主要是由於 Title 42 於 5 月到期。

As with our previous guidance, we expect federal populations to remain within a stable range throughout 2024. Even though Congress appropriated additional funds for 41,500 detention beds, ICE detention populations nationwide have yet to approach this higher funded level. If federal populations increase toward the higher levels funded for detention beds, there could be upside to our guidance.

與我們先前的指導一樣，我們預計 2024 年聯邦人口將保持在穩定範圍內。儘管國會為 41,500 個拘留床位額外撥款，但 ICE 全國拘留人數尚未達到這一更高的資助水準。如果聯邦人口增加到為拘留床提供資金的更高水平，我們的指導可能會有好處。

Consistent with our last guidance, our updated guidance contemplates the continuation of a normalized hiring market for labor with less reliance on temporary incentives but resulting in higher staffing costs as we continue to increase staffing levels in response to the higher occupancy we are experiencing post COVID. Our guidance continues to contemplate the expiration of the lease with the State of California at our California City Correctional Center effective March 31, 2024.

與我們上次的指導意見一致，我們更新後的指導意見考慮到勞動力招聘市場將繼續正常化，減少對臨時激勵措施的依賴，但隨著我們繼續增加人員配備水平以應對新冠肺炎疫情后入住率的提高，導致人員成本上升。我們的指引繼續考慮與加州簽訂的加州城市懲教中心的租約將於 2024 年 3 月 31 日到期。

This facility generated EBITDA of $7.2 million and $25.5 million for the three months ended March 31, 2024, and the 12 months ended December 31, 2023, respectively. It is therefore expected to result in a per-share reduction of $0.06 from Q1 to Q2 and $0.15 to $0.16 from 2023 to 2024. Our guidance does not include any other contract losses or any new contract awards not previously announced because the timing of government actions on new contracts is always difficult to predict.

截至2024年3月31日的三個月和截至2023年12月31日的12個月，該設施的EBITDA分別為720萬美元和2550萬美元。因此，預計第一季至第二季每股將減少 0.06 美元，2023 年至 2024 年每股將減少 0.15 美元至 0.16 美元。我們的指導不包括任何其他合約損失或之前未宣布的任何新合約授予，因為政府對新合約採取行動的時間總是很難預測。

With respect to our capital allocation strategy, we expect to repurchase additional shares of our common stock, taking into consideration our leverage, earnings trajectory, stock price, liquidity, and alternative opportunities to deploy capital. Our guidance includes a range of prepurchase scenarios at various amounts at various assumed prices. But we will not likely sustain the pace in Q1 unless we experience a larger increase in populations than we have forecasted, maintaining discipline on our targeted leverage ratio.

就我們的資本配置策略而言，考慮到我們的槓桿率、獲利軌跡、股價、流動性和部署資本的替代機會，我們預計將回購更多普通股。我們的指導包括一系列不同金額、不同假設價格的預購場景。但我們不太可能維持第一季的成長速度，除非人口成長幅度超出我們的預測，從而維持目標槓桿率的紀律。

We also expect to use our cash on hand and cash flow from operations to continue paying down debt, prioritizing debt repayments on our revolving credit facility, which we utilized to redeem the remaining balance of our old 8.25% unsecured notes in April.

我們也預計將使用手頭現金和營運現金流來繼續償還債務，優先償還我們的循環信貸額度的債務，我們在 4 月利用該額度贖回了舊的 8.25% 無擔保票據的剩餘餘額。

Given the strength of both our balance sheet and cash flows and newly extended debt maturities, we have considerable flexibility in how we deploy our liquidity and free cash flow as well as how we balance our capital allocation strategy between debt repayments and share repurchases.

鑑於我們資產負債表和現金流的實力以及新延長的債務期限，我們在如何部署流動性和自由現金流以及如何平衡債務償還和股票回購之間的資本配置策略方面具有相當大的靈活性。

Again, our guidance contemplates a range of scenarios associated with debt reduction and share repurchases. We expect AFFO, which we consider a proxy for our cash flow available for capital allocation decisions to range from $172.8 million to $185.3 million or $1.55 to $1.66 per share, up from our previous guidance of $158.3 million to $175.3 million or $1.42 to $1.57 per share.

同樣，我們的指導考慮了與債務削減和股票回購相關的一系列情境。我們認為AFFO（我們認為可用於資本分配決策的現金流的代表）的範圍為1.728 億美元至1.853 億美元，即每股1.55 美元至1.66 美元，高於我們之前指導的1.583 億美元至1.753 億美元，即每股1.42 至1.57 美元。

We expect that our normalized effective tax rate to be approximately 29% for the remainder of the year, which after considering the lower effective tax rate for the first quarter equates to an annual effective tax rate of approximately 27%. The full-year EBITDA guidance in our press release provides you with our estimate of total depreciation and interest expense.

我們預計今年剩餘時間的標準化有效稅率約為 29%，考慮到第一季較低的有效稅率，相當於年度有效稅率約為 27%。我們新聞稿中的全年 EBITDA 指引為您提供了我們對總折舊和利息費用的估計。

We are forecasting G&A expenses in 2024 to be slightly higher than 2023. We plan to spend $62 million to $66 million on maintenance capital expenditures during 2024, unchanged from our previous guidance, and $8 million to $10 million for other capital investments, up $1 million from our previous guidance.

我們預計 2024 年的一般管理費用將略高於 2023 年。我們計劃在 2024 年期間花費 6,200 萬至 6,600 萬美元用於維護資本支出，與先前的指導保持不變，並為其他資本投資花費 800 萬至 1,000 萬美元，比我們先前的指導增加 100 萬美元。

I will now turn the call back to our operator to open up the lines for questions.

現在，我將把電話轉回給我們的接線員，以開通提問線路。

(Operator Instruction) Joe Gomes, NOBLE Capital.

（操作員指令）Joe Gomes，NOBLE Capital。

Good morning, Damon and David. Congrats on the quarter.

早安，達蒙和大衛。恭喜本季。

Good morning. Thank you so much.

早安.太感謝了。

I wanted to start -- you talked a little about on the ICE populations. From the overall level, just maybe give us a little more color and detail on what you saw in your population, especially as you mentioned, somewhat coming down at the end of the first quarter into the second quarter, they rebounded. What kind of rebound that you've seen in them since they bottomed out?

我想開始——你談到了一些關於 ICE 人口的問題。從總體水平來看，也許可以給我們更多關於您在人口中看到的情況的色彩和細節，特別是正如您所提到的，在第一季度末到第二季度有所下降，但它們有所反彈。自從它們觸底以來，你看到了什麼樣的反彈？

Yes, sir. So this is Damon. Let me give you a couple of numbers. So as of yesterday, our systemwide population was 10,310, so 10,310 with our systemwide population as of yesterday. In April, let me give you two numbers. On April 1, we were at 9,772. And then on April 20 -- and I say the 20th is because that's the last publicly available report for ICE nationwide populations. On April 20, our system population was 9,208.

是的先生。這就是達蒙。讓我給你幾個數字。截至昨天，我們的系統人口為 10,310，因此截至昨天我們的系統人口為 10,310。四月，讓我給你兩個數字。4 月 1 日，我們的人數為 9,772。然後是 4 月 20 日——我說 20 日是因為那是 ICE 全國人口的最後一份公開報告。4 月 20 日，我們的系統人口為 9,208。

So coming into the month of April, we are almost at 10,000. We went as low as 9,200 on April 20. And as of today, or I should say yesterday, we were at 10,310. So as you know, and as I said in my comments, again, the last publicly available report for ICE was the 34,000 -- about 600 or 500. So we don't know what the new numbers are nationally, but our sense is of our populations are going up, likely, the nationwide number is going up, too.

進入四月份，我們的人數已接近 10,000。4 月 20 日，我們的股價跌至 9,200 人。截至今天，或者我應該說昨天，我們的數字為 10,310。如你所知，正如我在評論中所說，ICE 最新公開的報告是 34,000 人——大約 600 或 500 人。因此，我們不知道全國範圍內的新數字是多少，但我們的感覺是，我們的人口正在增加，全國範圍內的人口數量可能也在增加。

Okay, great. Thanks for that detail. Much appreciated. And just looking through the supplemental and if I look at the safety segment, the revenue per compensated man day is now $102, which is up from the $90 level a couple of years ago. How much more increase do you think you can out of that? Are you seeing any pushback from your government partners, the steady increase in the revenue per compensated mandate?

好的，太好了。謝謝你的詳細資料。非常感激。只要查看補充信息，如果我查看安全部分，每個帶薪工作日的收入現在為 102 美元，高於幾年前的 90 美元水平。您認為還能增加多少？您是否看到政府夥伴有任何阻力，即每項補償任務的收入穩定增加？

Yes. Good question. And I'll probably tag team Dave on this a little bit, but I'd say a couple of things. One is, as you know, and we've talked a lot about last couple of years, I mean, we have needed to do some big investments in our employees. So we're really thankful for -- especially our state partners through the appropriation process, through various state legislatures around the country to get increases in salaries and in turn to get reimbursed through premium increases with our contracts, either through the renewal process or new contracts.

是的。好問題。我可能會在這個問題上對戴夫團隊進行一些標記，但我想說幾件事。一是，如您所知，過去幾年我們已經討論了很多，我的意思是，我們需要對員工進行一些重大投資。因此，我們真的非常感謝——特別是我們的州合作夥伴，透過撥款程序，透過全國各地的各州立法機構來增加工資，進而透過我們合約的保費增加來獲得補償，無論是透過續約程序還是新的合約。

Generally -- this is not part of your question, but generally, the labor market feels like it's stabilized now, just on the vacancy rate going down dramatically but also the need for major adjustments in salaries. So we're stabilizing somewhat get into a kind of normal year-over-year increase on that front.

一般來說，這不是你問題的一部分，但總的來說，勞動市場現在感覺已經穩定了，只是空缺率大幅下降，而且需要對工資進行重大調整。因此，我們在這方面正在某種程度上穩定進入正常的同比增長。

And then as you know, in our federal contracts, your wage terminations are required by contract, which in turn we have to pay those rates with our employees under those contracts. So if those wages go up, regardless of they go up modestly or meaningfully, we get reimbursed dollar-for-dollar through our contracts. And so I would say that's a great feature in those contracts.

然後如您所知，在我們的聯邦合約中，合約要求終止您的工資，而我們必須根據這些合約與我們的員工一起支付這些工資。因此，如果薪資上漲，無論上漲幅度是小幅上漲還是有意義上漲，我們都會透過合約獲得同等金額的補償。所以我想說這是這些合約的一大特色。

So if those wages continue to go up, which -- typically those are a little slower to see adjustments year over year versus our state contracts. So we could see some meaningful increases in salaries through the wage formation process here in a couple of years and in turn how to get reimbursed and how that could adjust our premiums in a pretty meaningful way.

因此，如果這些工資繼續上漲，那麼與我們的州合約相比，這些工資的逐年調整通常會慢一些。因此，我們可以看到幾年後透過薪資形成過程，薪資會出現一些有意義的成長，進而如何獲得報銷，以及如何以非常有意義的方式調整我們的保費。

So that's a long way of saying, yes, maybe not so much on the state business. But I think maybe on the federal business next year or two as wage terminations continue to kind of keep up with the labor market data, we could see adjustments there. What would you add to that, Dave?

因此，這是一個很長的說法，是的，也許對國有企業的影響不大。但我認為，也許在明年或兩年的聯邦業務中，隨著工資終止繼續跟上勞動力市場數據，我們可能會看到那裡的調整。戴夫，你對此有何補充？

Yes, I think '22 was a decent year. '23 was a better year. So I'm speaking specifically for our state government partners, where per diems typically go up July 1 in connection with the renewal of their fiscal years. And so '23 was a good year. And as Damon mentioned, we are recovering a lot of the salaries that we had been providing to our staff.

是的，我認為 22 年是不錯的一年。 '23是更好的一年。因此，我專門針對我們的州政府合作夥伴發言，這些合作夥伴的每日津貼通常會隨著財政年度的更新而在 7 月 1 日上漲。所以 23 年是美好的一年。正如達蒙所提到的，我們正在收迴向員工提供的大量工資。

Our customers are a unique industry. Our customers do what we do, so they experience what we do. So they saw the demand for their salaries increasing within the public sector system. So those conversations are never easy. I mean, trying to get of budget dollars appropriated is always difficult, but they were at least a little more sympathetic when they understood the labor market.

我們的客戶是一個獨特的行業。我們的客戶做我們所做的事情，因此他們體驗我們所做的事情。因此，他們看到公共部門系統內對薪資的需求不斷增加。所以這些對話絕非易事。我的意思是，試圖獲得預算撥款總是很困難，但當他們了解勞動市場時，他們至少更有同情心。

So I think we've been really good at getting those per-diem increases the past couple of years where most states are in legislative session right now. So hard to say what is going to happen July 1, 2024. But we continue to have those conversations, particularly in states where we didn't necessarily get a per diem increase that fully compensated us for the wages that we provided the past year or two.

因此，我認為過去幾年我們在提高每日津貼方面做得非常好，大多數州目前都在立法會議上。很難說 2024 年 7 月 1 日會發生什麼事。但我們仍在繼續進行這些對話，特別是在那些我們不一定會增加每日津貼以完全補償我們過去一兩年提供的工資的州。

Okay, thank you. Thanks for that. And you mentioned [Cal City's] expired here now. Maybe give us a little more update or color on what you're doing there, who you think could be a potential, partner there in taking that facility if you can come to some type of agreements there. Who are your target customers, I guess, for that facility?

好的謝謝。感謝那。你提到[卡爾城的]現在在這裡過期了。如果您能在那裡達成某種類型的協議，也許可以給我們更多關於您在那裡所做的事情的最新信息或信息，您認為誰可能是那裡的潛在合作夥伴，以獲取該設施。我想，該設施的目標客戶是誰？

Yes, we -- thank you for that question. On Cal City, I mean, we think it's a great solution for -- even though the lease ran out, I think it could be a good solution long term or even midterm for the state as their needs changes. Obviously, their populations got impacted, probably more dramatically than any other state with COVID and the population is going down.

是的，我們——謝謝你提出這個問題。我的意思是，在加州城，我們認為這是一個很好的解決方案，即使租約到期，我認為隨著需求的變化，這對該州來說可能是一個長期甚至中期的良好解決方案。顯然，他們的人口受到的影響可能比其他受新冠疫情影響的州都要嚴重，而且人口正在下降。

So obviously, we'll continue to keeping lines of communication open with the state. But as we've said before, being in Southern California, being in the Southwest, knowing that ICE and their needs are very fluid and very dynamic, and obviously, a lot of discussion going on, both nationally and regionally in that part of the country about border security and the needs for ICE, maybe more decision capacity, we think that would be a natural fit for that agency if and when they need more capacity period, not just in that part of the country. But anything you'd add to that, Dave?

顯然，我們將繼續與政府保持暢通的溝通管道。但正如我們之前所說，在南加州、西南部，我們知道 ICE 及其需求非常不穩定且充滿活力，顯然，在該地區的國家和地區範圍內正在進行大量討論國家關於邊境安全和ICE 的需求，也許需要更多的決策能力，我們認為，如果該機構需要更多的能力，而不僅僅是在該國的那個地區，那麼這將是一個自然的選擇。但戴夫，你還有什麼要補充的嗎？

I think we've mentioned before both ICE and Marshals have used that facility before California was in it. So they're familiar with it, they've toured it. So we think it would be a good solution for them as well.

我想我們之前已經提到過，在加州加入之前，ICE 和法警都使用過該設施。所以他們很熟悉它，他們已經遊覽過它。所以我們認為這對他們來說也是一個很好的解決方案。

Okay, thanks. And then on the monitoring, the ISAP contract comes up in about, I guess, 15 months here. Any color you can provide on what your thoughts are on the monitoring ISAP contract and if that's something that you're going to go back in and look to potentially win?

好的謝謝。然後根據監控，ISAP 合約大約在 15 個月後出現。您可以就您對 ISAP 監控合約的想法提供任何意見嗎？

Yes, absolutely. As you know, that contract is up for rebid. I think the contract expires July of next year in 2025. Obviously, we've got the capability. Our community division has got monitoring underneath that. We've been doing it for decades within that division. So we've got the capability and the qualifications for it.

是的，一點沒錯。如您所知，該合約需要重新競標。我認為合約將於明年7月2025年到期。顯然，我們有能力。我們的社區部門對此進行了監控。我們在該部門已經這樣做了幾十年。所以我們有能力、有資格。

And probably more importantly, I mean, no one's been working with ICE longer than we have. So obviously, we know that agency really well. We've done some really complex and large solutions for them over the years. Think about our South Texas facility in Dilley, Texas, being one example. So something of that size and that complexity, it's right in our wheelhouse because we've done that many times over the years with ICE.

也許更重要的是，我的意思是，沒有人與 ICE 合作的時間比我們還要長。顯然，我們非常了解該機構。多年來，我們為他們做了一些非常複雜和大型的解決方案。以我們位於德州迪利的南德州工廠為例。所以這種規模和複雜性的東西，就在我們的駕駛室裡，因為多年來我們已經和 ICE 做過很多次了。

So we're getting ourselves prepared. Obviously, we've participated in that procurement in years past and again think we're well qualified, not only just with the relationship with the agency, but also working through complex projects.

所以我們正在做好準備。顯然，我們在過去幾年中參與了該採購，並再次認為我們有資格，不僅與該機構的關係良好，而且能夠完成複雜的項目。

And also, I think we've got a really good track record on being very innovative and showing great outcomes. So as they think about the future of that program and maybe some changes they want relative to not only outcomes, but performance metrics and show that a very effective program we think we bring a lot to the table. But anything you'd add to that, Dave?

而且，我認為我們在創新和取得巨大成果方面擁有非常好的記錄。因此，當他們考慮該計劃的未來時，也許他們想要的一些改變不僅與結果有關，而且還與績效指標有關，並表明這是一個非常有效的計劃，我們認為我們可以帶來很多東西。但戴夫，你還有什麼要補充的嗎？

The only thing I'd add, there was that reporting and release management RFI last year. I think -- we don't know what it's going to look like whether they want the same services that are currently provided under ISAP or whether they're going to expand it like they contemplated under the RRM, RFI.

我唯一要補充的是，去年的報告和發布管理 RFI。我認為 - 我們不知道他們是否想要目前在 ISAP 下提供的相同服務，或者他們是否會像他們在 RRM、RFI 下設想的那樣擴展它。

We have not seen an RFP. There's not -- it's not come out yet. I expect that would come out sometime during the second half of 2024. So they're probably still compiling the data from the responses to that RFI. And it could -- it depends on how much money gets appropriated toward that type of monitoring case management program as well.

我們還沒有看到 RFP。還沒出來。我預計這會在 2024 年下半年的某個時候發布。因此，他們可能仍在收集該 RFI 回覆中的數據。它也可以——這也取決於為這種類型的監控案例管理計劃撥款多少資金。

And there could be multiple vendors, both profit and non-profit, depending on what it looks like. So we're standing ready to see what that RFP looks like that we'd expect in the second half of this year, and we'll respond accordingly.

並且可能有多個供應商，包括營利性和非營利性的，具體取決於它的情況。因此，我們已做好準備，看看今年下半年的 RFP 會是什麼樣子，我們將做出相應的回應。

Great, and one last one for me. I'll get back in queue. Anything new on state and local opportunities?

太棒了，對我來說也是最後一張。我會回到隊列中。州和地方機會有什麼新的嗎？

Yes, great question. So as you know, we've been on a great run. I mean, we go into the last half of last year -- I mean, a lot of great new relationships. Wyoming comes to mind. Hinds County comes to mind. Harris County comes to mind.

是的，很好的問題。如您所知，我們一直進展順利。我的意思是，我們進入了去年下半年——我的意思是，建立了許多很棒的新關係。我想到了懷俄明州。我想到了海因茲縣。我想到了哈里斯縣。

And it's probably important to note, I know there's always a question about kind of public available procurement. A lot of these opportunities that we have secured here the last six, eight, 10 months have been through just shoe leather and engaging these partners, understand their complex issues and challenge they have to lead to these opportunities. So we're excited about having a lot of these new partners now on the roster with CoreCivic. But I guess I'd point to a couple of things.

值得注意的是，我知道始終存在著關於公共採購類型的問題。在過去的六個月、八個月、十個月裡，我們在這裡獲得的許多機會都是透過與這些合作夥伴接觸、了解他們的複雜問題以及他們必須面臨的挑戰來實現這些機會的。因此，我們很高興現在有許多新合作夥伴加入 CoreCivic 的名冊。但我想我會指出一些事情。

We look opted closely at prison forecast, next five years. We've talked about some of those numbers here the next five years. But if you look at our existing customer base, just the last two years in population growth, and if you exclude the Federal Bureau of Prisons, which we don't work with them now in the Safety side. We just work with them a little bit on the Community side.

我們密切關注未來五年的監獄預測。我們已經討論了未來五年的其中一些數字。但如果你看看我們現有的客戶群，就看過去兩年的人口成長，如果你排除聯邦監獄局，我們現在在安全方面不與他們合作。我們只是在社區方面與他們進行一些合作。

And also, the State of California, that collective portfolio of state customers we worked with, they've increased by 30,000 inmates here in the last two years. And that's again existing state partners working with CoreCivic. So if you look at a State like Georgia, they've gone up 3,600. You look at the State of Florida, they've gone up 5,000 the last two years.

此外，加州，即我們合作的州級客戶的集體組合，在過去兩年裡，這裡的囚犯增加了 30,000 名。這又是與 CoreCivic 合作的現有國家合作夥伴。因此，如果你看看像喬治亞州這樣的州，他們就增加了 3,600。你看看佛羅裡達州，過去兩年增加了 5,000 人。

So states are dealing with a lot of challenges -- continue to deal with not only the issues coming out of COVID and maybe facilities they took offline because of staffing issues or capital or physical plan issues. They're looking at the next three to five years, seeing some increases in population too, especially if there's been some changes within the state legislatures on sentencing reform.

因此，各州正在應對許多挑戰——不僅要繼續處理新冠疫情帶來的問題，還可能要處理因人員配置問題、資本或實體計畫問題而關閉的設施。他們正在展望未來三到五年，人口也會增加，特別是如果州立法機構在量刑改革方面發生一些變化的話。

So that's a long way of saying, yes, we're hearing a lot of engagement from our partners, our state partners, on needs that they may have not only just in the near term -- again, not only just with physical plan or labor issues, but also growth here in the next couple of years.

因此，這是一個很長的說法，是的，我們聽到了我們的合作夥伴、我們的國家合作夥伴的大量參與，他們不僅在短期內可能有需求，同樣，不僅僅是有形計劃或勞工問題，還有未來幾年的成長。

But anything you'd add to that, Dave?

但戴夫，你還有什麼要補充的嗎？

No, I think you covered it, Damon.

不，我想你已經報道過了，達蒙。

Great. Thanks again for taking my questions and congrats on the quarter there.

偉大的。再次感謝您提出我的問題，並祝賀本季的業績。

Thanks, Joe.

謝謝，喬。

M. Marin, Zacks.

M.馬林，札克斯。

Thank you. I was hoping to get a little bit more color on the Cal City facility. So on the supplement, I think it says that the facility was built in 1999. Has there been any spending on upgrades? And so in other words, where I'm going with this question is, do you see this as a long-term solution for ICE because of the location and the relationship you have? Would you -- in order to start a new contract, would you need to do any kind of upgrades to the facility, or do you think it's ready to go for a new contract?

謝謝。我希望對加州城的設施有更多的了解。所以在補充上，我認為它說該設施建於 1999 年。是否有任何升級費用？換句話說，我要問的問題是，由於地理位置和你們之間的關係，你們是否認為這是 ICE 的長期解決方案？為了開始一份新合同，您是否需要對設施進行任何類型的升級，或者您認為它已經準備好簽訂新合同了嗎？

Yes. Thank you for that question. That's a good one. I would say there's probably some modest improvement we would need to make to it. And again, we've been working with ICE for 40 years, so we know their MO on how they think about physical plant and maybe some modifications you want.

是的。謝謝你提出這個問題。這是一件好事。我想說，我們可能需要對其進行一些適度的改進。再說一次，我們已經與 ICE 合作了 40 年，所以我們知道他們對物理工廠的看法，也許還有您想要的一些修改。

So for example, those modifications could be additional office space for government staff, lawyers that are helping support the residents in their legal cases. There are some cases where we do courtrooms. We actually have physical space for judges and court staff to come onsite. Obviously, the world's changed here in the last couple of years on that front with COVID and so a lot of that stuffs being done virtually even with the pandemic behind us.

例如，這些改造可能是為政府工作人員、幫助居民處理法律案件的律師提供額外的辦公空間。在某些情況下，我們會在法庭上進行審理。我們實際上為法官和法院工作人員提供了現場的實體空間。顯然，過去幾年，隨著新冠疫情的爆發，世界在這方面發生了變化，因此，即使疫情已經過去，許多事情實際上仍在進行中。

So it could be the case where it's a little bit of not only space for courtrooms but also maybe space for technology where they could do virtual hearings or whatnot, so a pretty modest investment. But again, we've been doing this for a long time for ICE. So we kind of know what they would want.

因此，可能的情況是，它不僅有一點法庭空間，而且可能還有一點技術空間，可以進行虛擬聽證會或其他什麼，所以這是一項相當適度的投資。但同樣，我們為 ICE 做這件事已經很久了。所以我們知道他們想要什麼。

And also, we could be flexible if they've got some very unique needs. They've got a certain location. I'll give you another example. It could be maybe one of -- more of a very intensive medical component for chronic care or maybe some infirmary beds. Those could be some adjustments to make into the medical unit.

而且，如果他們有一些非常獨特的需求，我們可以靈活處理。他們有一定的位置。我再舉一個例子。它可能是其中之一——更多的是用於慢性護理的非常密集的醫療組成部分，或者可能是一些療養床位。這些可能是對醫療部門進行的一些調整。

But anything you'd add to that, David, on Cal City?

大衛，關於加州城，你還有什麼要補充的嗎？

Yes, I mean, California was just using it. They just left the facility in March. So obviously, everything -- all the systems are up to date, so don't have to put any CapEx in for those things. I think, like Damon said, it depends on who the user would be, and every user is a little unique in their needs. And Damon outlined the details for ICE.

是的，我的意思是，加州只是在使用它。他們三月剛離開該設施。顯然，一切 - 所有系統都是最新的，因此不必為這些事情投入任何資本支出。我認為，就像達蒙所說，這取決於使用者是誰，每個使用者的需求都有一點獨特。Damon 概述了 ICE 的詳細資訊。

So I estimate -- it's hard to tell without a real opportunity in front of us. But it could range from very minimal to, I don't know, $15 million, $20 million, maybe higher than that. But I think that would be a lot depending on the customer.

所以我估計——如果我們面前沒有真正的機會，很難說清楚。但它的範圍可以從非常小到（我不知道）1500 萬美元、2000 萬美元，甚至可能更高。但我認為這在很大程度上取決於客戶。

But it also sounds to me, from what you're saying, that if some of those modifications were made, it would also have a positive impact on your per diems in the facility. Is that the right way to think about it?

但從你所說的情況來看，我也覺得如果進行一些修改，也會對你在設施中的每日津貼產生正面影響。這是正確的思考方式嗎？

Absolutely, yes. I mean, we've built that into our pricing model and made sure that we get an adequate return for any CapEx that we have to put into it.

絕對沒錯。我的意思是，我們已將其納入我們的定價模型中，並確保我們為必須投入的任何資本支出獲得足夠的回報。

Okay. Thank you very much.

好的。非常感謝。

You're welcome.

不客氣。

Thank you.

謝謝。

James Godvin, StoneX Group Inc.

James Godvin，StoneX 集團公司

Yes, hi. This is actually Ben Briggs from StoneX.

是的，嗨。這實際上是來自 StoneX 的 Ben Briggs。

Good morning, Ben.

早安，本。

Hey, guys, how are you?

嘿，夥計們，你們好嗎？

Good.

好的。

So first of all, congratulations on the quarter and congratulations on being able to raise the guidance, really a strong showing here. So most of my questions, frankly, got addressed. But one that I wanted to dive in a little bit on is obviously, a lot of the federal government increase in revenue came from ICE, and that was driven by some of the immigration issues we've seen in the changes in policy during the year.

首先，祝賀本季的業績，並祝賀能夠提高指導意見，這確實是一個強勁的表現。坦白說，我的大部分問題都得到了解決。但我想深入探討的一個問題顯然是，聯邦政府收入的大部分成長都來自 ICE，這是由我們在這一年的政策變化中看到的一些移民問題所推動的。

You also saw a pretty significant increase in state and local revenue. I know that some of that was driven by new contracts that you won over the course of the last year or so. But could you give any insight into if there's any macro drivers that's driving that increased demand by states and localities? And is any of that additional revenue due to increased headcount at contracts that already existed prior to these new ones being added during the year?

您還看到州和地方收入顯著增加。我知道其中一些是由您在過去一年左右贏得的新合約推動的。但您能否深入了解是否有任何宏觀驅動因素推動各州和地方的需求增加？這些額外收入是否是由於在今年增加這些新合約之前已經存在的合約人數增加而產生的？

Thank you for that question. To make sure I understand the gist of your question, so you just -- some of the macro drivers that are driving state populations, is the kind of the gist of your conversation, what's driving that?

謝謝你提出這個問題。為了確保我理解你問題的要點，所以你只是 - 一些推動州人口增長的宏觀驅動因素，就是你談話的要點，是什麼推動了它？

Precisely, yes.

準確地說，是的。

Got you. Very good. Well, so I'll point to two things. The first is everything related to COVID. So what we saw during COVID on the state populations is that they had the usual behavior of discharges, people getting end-of-sentence that they would get released from prison. But people coming into prison, that slowed down pretty dramatically because people that were maybe arrested of a crime and were held in a local jail, say, at a city or county facility, their cases were not getting adjudicated because the courts were closed during the pandemic.

明白你了。非常好。好吧，我要指出兩件事。首先是與新冠病毒相關的一切。因此，我們在新冠疫情期間看到，各州民眾的出院行為與往常一樣，人們在刑滿釋放後會從監獄中獲釋。But people coming into prison, that slowed down pretty dramatically because people that were maybe arrested of a crime and were held in a local jail, say, at a city or county facility, their cases were not getting adjudicated because the courts were closed during the大流行.

And so what we saw in 2020, 2021, 2022 and even a little bit into 2023 is that jail populations were increasing dramatically around the country. In fact, I think on the last quarter or maybe two quarters ago, I shared the metric of a two-year trend of 22% increase in jail populations nationally. So that's every city or county that operates a jail, and that's -- we think that's a record.

因此，我們在 2020 年、2021 年、2022 年，甚至到 2023 年的一段時間內看到，全國各地的監獄人口急劇增加。事實上，我認為在上個季度或兩個季度前，我分享了全國監獄人口兩年增加 22% 的趨勢指標。這就是每個運營監獄的城市或縣，我們認為這是一個記錄。

We don't think we've ever seen a percentage increase like that in a short period of time. And again, what the data has indicated but also what we hear anecdotally is that courts were closed, people were arrested, cases were not getting adjudicated. So populations were swelling at the local level, which meant that they were not getting ultimately convicted in the sense of the crime once their case got adjudicated and going to a prison.

我們認為我們從未在短時間內看到過這樣的百分比成長。再說一遍，數據表明，但我們聽到的軼事是，法院關閉，人們被捕，案件沒有裁決。因此，當地人口不斷膨脹，這意味著一旦案件判決併入獄，他們最終不會被定罪。

So now, what we're seeing is courts are back to natural, kind of regular order. People are going through the process, getting their cases adjudicated. And now the population is coming pretty dramatically and pretty quickly into the state level.

所以現在，我們看到法院恢復了自然的、正常的秩序。人們正在經歷這個過程，讓他們的案件得到裁決。現在，州一級的人口數量急劇增長且迅速。

What the states had done during COVID since populations went down, they took either units -- in some cases, some states took actual prisons offline. So they closed them because they maybe were old, antiquated, hard to staff, maybe all the above.

自從人口下降以來，各州在新冠疫情期間所做的事情是，他們把其中任何一個單位都拿走了——在某些情況下，一些州關閉了實際的監獄。所以他們關閉了它們，因為它們可能是舊的、陳舊的、難以配備人員的，也許是以上所有原因。

And we're hearing anecdotally from a lot of the jurisdictions, they don't want to reopen those units or facilities for all the reasons I just said. So their footprint, basically their size and their capacity in their system shrunk. And so we think that's, again, number one, why we're getting a lot of quick engagement from our partners, either existing or new partners, that they need help, and they need it quickly. Again, I'd point to Montana and Idaho and a couple other jurisdictions for that.

我們從許多司法管轄區聽說，出於我剛才所說的所有原因，他們不想重新開放這些單位或設施。因此，他們的足跡，基本上是他們的規模和系統容量都縮小了。因此，我們認為，這也是第一大原因，為什麼我們能夠從現有合作夥伴或新合作夥伴那裡獲得大量快速參與，他們需要幫助，很快就需要幫助。我再次以蒙大拿州和愛達荷州以及其他幾個司法管轄區為例。

The second piece, which is at this point going forward is that there has been a fair amount of activity both this year and really by the last two years within state legislatures on adjustments-to-sentencing reform. And so most states do a five-year forecast. I'm sure we'll get another set of new forecasts after all these sessions are adjourned around various state legislatures around the country.

目前正在進行的第二件事是，今年和過去兩年，各州立法機構在量刑調整改革方面開展了大量活動。因此，大多數州都會進行五年預測。我確信，在全國各州立法機構的所有這些會議休會後，我們會得到另一組新的預測。

But what the data indicates is that the next three years to five years are looking at pretty meaningful increases in most if not all states. And so part of it -- so to answer your question, again, part of it is the going back during COVID and how that created some real constraints in the system because of courts being closed. And then the second part is that going forward, the next three years to five years. A lot of states are looking at pretty significant increases because again, of changes, maybe in the sentencing reform.

但數據表明，未來三到五年，大多數（如果不是全部）州都會出現相當有意義的成長。所以，部分原因——所以再次回答你的問題，部分原因是在新冠疫情期間，以及由於法院關閉，這如何在系統中造成了一些真正的限制。第二部分是展望未來，未來三年到五年。許多州都在考慮大幅增加刑罰，因為這又是因為量刑改革的變化。

Anything you'd add to that, David?

大衛，你還有什麼要補充的嗎？

I think at a macro level, our state populations, if you back out -- the facility in Oklahoma that transitioned from one that we operated to one that we leased, if you back that one out, our populations were up a few percent from Q1 '23 to Q1 '24. And then going back to the discussion we had earlier about wage increases and getting reimbursed through per diem increases, it's the combination of those that's driving the revenue. But certainly, as Damon mentioned more thoroughly, the demand and the challenges that our state customers are facing are getting more intense.

我認為從宏觀層面來看，我們州的人口，如果你退出——俄克拉荷馬州的設施從我們經營的設施轉變為我們租賃的設施，如果你退出那個設施，我們的人口比第一季度增加了幾個百分點'23 至 24 年第一季。然後回到我們之前關於薪資成長和透過增加每日津貼獲得報銷的討論，正是這些因素的結合推動了收入。但可以肯定的是，正如達蒙更徹底地提到的那樣，我們的州客戶面臨的需求和挑戰正在變得更加強烈。

Got it. That's incredibly helpful. Thank you. So one follow-up question to that is that as these states and localities are utilizing and have demand for more and more space -- I know that historically, the US Marshals Service has used, in addition to you guys, has used some state and local space to house their detainees.

知道了。這非常有幫助。謝謝。因此，一個後續問題是，隨著這些州和地方正在利用並需要越來越多的空間——我知道，從歷史上看，除了你們之外，美國法警局也使用過一些州和地方。被拘留者的當地空間。

Are states and localities going to be faced with a situation where they don't have enough space to lease to the US Marshals Service? And could that create opportunities for you guys in the future?

各州和地方是否會面臨沒有足夠空間租給美國法警局的情況？這能為你們未來創造機會嗎？

Yes. That's a great question, and I think the short answer is absolutely. I mean, we're hearing a little bit of that not only anecdotally but also a little bit in our system where maybe a jurisdiction -- yes, it's either out of space. Another part of it is that, I mean, the federal government to their credit, and they're seeing this for ICE too, I mean, they're raising the bar on operational standards and requirements.

是的。這是一個很好的問題，我認為簡短的回答是絕對的。我的意思是，我們不僅聽到了一些軼事，而且在我們的系統中也聽到了一些，可能是一個司法管轄區——是的，它要么空間不足。另一部分是，我的意思是，聯邦政府值得讚揚，他們也為 ICE 看到了這一點，我的意思是，他們正在提高操作標準和要求的標準。

And so we're hearing through those two partners, Marshals Service and ICE, is that some local agencies not only don't have capacity for all the reasons we just talked about, but also maybe they've kind of thrown up their hands and say there's just no way we can comply with these standards that these agencies are requiring at the cities or counties that they house populations.

因此，我們從法警局和 ICE 這兩個合作夥伴那裡得知，一些當地機構不僅由於我們剛才談到的所有原因而沒有能力，而且也許他們已經舉手了，說我們根本無法遵守這些機構在其居住的城市或縣所要求的這些標準。

So I think both those factors are drawing or driving a little bit of opportunity and demand for us to use capacity in our system because we wear it as a badge of honor, these requirements and standards that we have to comply with.

因此，我認為這兩個因素都為我們利用系統容量提供了一些機會和需求，因為我們將其視為榮譽徽章，我們必須遵守這些要求和標準。

We've been doing that for years, and at the end of the day, we think that's the right thing to do to improve the quality within our facilities. But also, we're very supportive of on-site monitors, contract monitors, or whatnot. And I know a lot of local jurisdictions are not too keen to that type of oversight. So yes, I think that's exactly right.

我們多年來一直這樣做，最終，我們認為這是提高我們設施品質的正確做法。而且，我們非常支持現場監督員、合約監督員或其他人員。我知道很多地方司法管轄區不太熱衷於這種類型的監督。所以是的，我認為這是完全正確的。

Okay, great. Very -- that's very helpful. And then last one from me, it's just regarding labor. I know that temporary labor usage has been an issue. It seems like it's less of an issue now as you guys are getting more staffed up.

好的，太好了。非常——這非常有幫助。我的最後一篇文章是關於勞動的。我知道臨時勞動力的使用一直是個問題。現在看來這不再是一個問題了，因為你們的人員配備越來越多。

Would you say that we're back to a run rate as far as temporary labor is concerned? And would you consider yourself fully staffed as far as permanent labor is concerned or is there potentially a little bit more hiring to do?

您是否認為就臨時工而言我們已回到正常運作狀態？就長期勞動力而言，您是否認為自己的人員配備齊全，或者可能需要更多招聘？

Good question. Again, I'll tag team a little bit of Dave on this one. I would say we're close on the second part of your question. Not quite there, but we really have gotten pretty close on permanent staff. So yes, we've seen a lot of improvement on that in probably the last 12 months to 18 months. On the temporary staff, we've had -- as said in our remarks, I mean, a lot of improvement on that front but probably not quite. Keep me honest here, Dave, probably not quite where we were pre-COVID.

好問題。再次，我會在這個問題上給團隊貼上戴夫的標籤。我想說我們已經接近解決你問題的第二部分了。雖然還沒有完全實現，但我們在固定員工方面確實已經非常接近了。是的，在過去 12 個月到 18 個月裡，我們已經看到了許多改進。在臨時工作人員方面，正如我們在演講中所說，我的意思是，在這方面有很多改進，但可能還不夠。戴夫，請說實話，我們可能不太像新冠疫情爆發前的情況。

Yes. There's a few facilities where we're still deploying temporary staff. It's certainly not the magnitude it was throughout 2023 or even 2022. And we still do continue to incur some of those temporary incentives for that staff. So I would expect as the year goes by, we will have higher staffing levels but less reliance on temporary staff. So it's a continuation of that trend that we've been seeing over the past several quarters.

是的。我們仍在一些設施中部署臨時員工。這肯定不是 2023 年甚至 2022 年的規模。我們仍然繼續為這些員工提供一些臨時激勵措施。因此，我預期隨著時間的推移，我們的人員配置水準將會更高，但對臨時員工的依賴將會減少。因此，這是我們過去幾個季度看到的這一趨勢的延續。

All right. Great. That's extraordinarily helpful. Congratulations again on the quarter, and thank you for taking the questions.

好的。偉大的。這非常有幫助。再次恭喜本季度，並感謝您提出問題。

Thank you. Yes, sir.

謝謝。是的先生。

Thank you so much.

太感謝了。

Kirk Ludtke, Imperial Capital.

柯克·路特克，帝都。

Hello, Damon, David, Mike. Congratulations on the quarter. Congratulations on the refi.

你好，戴蒙、大衛、麥克。恭喜本季。恭喜您重新啟動。

Thank you so much.

太感謝了。

Just a couple of follow ups on California City. You mentioned that this used to be an ICE Marshals facility -- and that the current or the population -- the ICE population was 34,500. It's probably higher now. At what level -- what national ICE population would you think ICE would have to be before they would reopen an idle facility?

只是對加州城的一些後續行動。您提到這裡曾經是 ICE 執法官的設施 - 目前或人口 - ICE 人口為 34,500 人。現在可能更高了。您認為 ICE 必須達到什麼水準才能重新開放閒置設施？

Yes, good question. I think it's probably -- well, short answer is probably going to be higher than it is today. So as you know, again, they've got the funding for the rest of this year, 41,500. That is obviously a meaningful increase on last year's funding, which was 34,000.

是的，好問題。我認為這可能——嗯，簡短的回答可能會比今天更高。如您所知，他們再次獲得了今年剩餘時間的資金，即 41,500 美元。與去年的 34,000 美元資金相比，這顯然是一個有意義的成長。

Now last year, as you know, they were able to go to elevated number on population just because they did some reprogramming that was mentioned by Homeland Security last summer, but nonetheless very notable that they're at 41,500 today.

正如你所知，去年他們的人口數量之所以能夠增加，只是因為他們做了國土安全部去年夏天提到的一些重新編程，但仍然值得注意的是，他們今天的人口數量達到了 41,500 人。

It's our sense, the populations -- again, before this recent dip, populations were at 38,000 to 39,000. We got a sense, as you know, not just -- really, not with us but I think other jurisdictions, they did have some guaranteed minimum beds that were not occupied.

這是我們的感覺，人口——同樣，在最近的下降之前，人口數量為 38,000 至 39,000。正如你所知，我們有一種感覺，不僅僅是——真的，不是我們，但我認為其他司法管轄區，他們確實有一些保證的最低床位未被佔用。

And so once you factor actual population with maybe some beds that are under contract but currently not utilized for whatever reason, because I think they always have a little bit of slack in the system, they're pretty much at full utilization at that 41,000.

因此，一旦考慮到實際人口，可能有一些已簽訂合約但目前由於某種原因尚未使用的床位，因為我認為系統中總是有一點閒置，所以他們幾乎在 41,000 個床位上得到了充分利用。

So I think the short answer is they probably are going to need additional funding. And that could happen, again, possibly this year. Obviously, we don't know of anything that's underway. But again, years past, they have done some reprogramming for specific needs on the Southwest border. And then also, we'll be watching closely what happens going into the next fiscal year for funding numbers.

所以我認為簡短的答案是他們可能需要額外的資金。這種情況可能會再次發生，可能是今年。顯然，我們不知道正在進行的任何事情。但幾年前，他們再次針對西南邊境的特定需求進行了一些重新規劃。此外，我們也將密切關注下一財年的融資數字。

I guess, I will also note, I mean, there is a very broad bipartisan support on a higher population number. And the reason I say that it was the supplemental that -- obviously, it didn't pass the House but did pass the Senate in February. It had a number of, I think, 50,000 or 55,000 beds. And so there is support for additional capacity. But also, we'll just have to watch closely what happens for us this year, going to next year.

我想，我還要指出，我的意思是，兩黨對增加人口數有非常廣泛的支持。我之所以說這是補充協議，顯然，它沒有在眾議院通過，但在二月通過了參議院。我認為它有 50,000 或 55,000 個床位。因此，有對額外容量的支援。而且，我們只需要密切關註今年和明年會發生什麼。

But anything you'd want to add, Dave?

但戴夫，你還有什麼想補充的嗎？

Yes. I still think there is a chance we have one facility where they could consolidate populations from public sector facilities and move it to a private sector facility. And that would not require new funding because it's really -- they're already using that funding at multiple facilities. So I think there's a chance that happens this year. It's not in our guidance, but something where we continue to discuss with ICE and continue to monitor.

是的。我仍然認為我們有可能擁有一個設施，將公共部門設施中的人口整合起來，並將其轉移到私營部門設施中。這不需要新的資金，因為他們實際上已經在多個設施中使用了這些資金。所以我認為今年有機會發生。這不在我們的指導範圍內，但我們將繼續與 ICE 討論並​​繼續監控。

That's a good point. I probably should highlight that because a little bit back to the earlier question about the Marshals Service, I mean, ICE again is still in that same pressure where local jurisdictions, for whatever reason, just can't support the agency's mission, either with capacity and/or standards.

那是個很好的觀點。我可能應該強調這一點，因為回到先前關於法警局的問題，我的意思是，ICE 再次面臨同樣的壓力，當地司法管轄區無論出於何種原因，都無法支持該機構的使命，無論是能力還是能力。

So I guess that is an important caveat at that. I mean, it could be the case, and we've seen this in years past, where they say, hey, let's just consolidate a population at a facility and back out and vacate local facilities that maybe are very fragmented and very diverse regionally, located long distances from the agency's office.

所以我想這是一個重要的警告。我的意思是，情況可能是這樣，我們在過去的幾年裡已經看到過這種情況，他們說，嘿，讓我們把人口集中在一個設施中，然後退出並騰出當地的設施，這些設施可能在區域上非常分散且非常多樣化，距離機構的辦公室較遠。

Got it. Thank you. That's helpful. I guess the other option, maybe California might want it for their own purposes. And I know the population there is coming down due to -- what is the likelihood of them having in the State of California?

知道了。謝謝。這很有幫助。我想另一個選擇，也許加州可能會出於自己的目的而想要它。我知道那裡的人口正在下降，因為——他們在加州的可能性有多大？

Well, again, they were there for a decade. And we know they really, really liked the facility. I mean, it was the newest -- one of the newest most modern facilities in the state and continues to be. And we did some pretty meaningful improvements over the physical plant during that period of time.

好吧，再一次，他們在那裡待了十年。我們知道他們真的非常喜歡這個設施。我的意思是，它是該州最新的、最現代化的設施之一，而且仍然如此。在那段時間裡，我們對物理工廠做了一些非常有意義的改進。

So I think based on not only just their populations, but maybe some of the uniqueness they want relative to the environment with programs and other services, I mean, obviously, the private sector can deliver on that faster than any state agency can.

因此，我認為不僅基於他們的人口，還基於他們想要的相對於環境的項目和其他服務的一些獨特性，我的意思是，顯然，私營部門可以比任何國家機構更快地實現這一目標。

So I think if there's continued kind of innovation on their part where they want a unique mission, especially for unique programs or services, that could be a good location for them because I know they've done some work over on San Quentin, which is primarily servicing the needs of the Northern part of the state. Cal City in the Southern part of the state could be another complimentary facility for some of that programming improvements.

所以我認為，如果他們想要一個獨特的使命，特別是獨特的計劃或服務，持續進行創新，這對他們來說可能是一個很好的地點，因為我知道他們已經在聖昆汀做了一些工作，這是主要滿足該州北部地區的需求。該州南部的加州城可能是另一個免費設施，可實現某些規劃改善。

And it may take a better budget situation in the state because that might be an impediment right now too.

該州可能需要更好的預算狀況，因為這現在也可能是一個障礙。

Right. Yes. Got it. I appreciate that. Yes, I would think this is materially younger than the average age of the facilities in California. Is it fair to say?

正確的。是的。知道了。我很感激。是的，我認為這比加州設施的平均年齡要年輕得多。公平地說嗎？

That is super fair to say.

說得超公平。

Got it. That's helpful. And you mentioned that border security bill that didn't pass but had a lot of support, what -- do you have high-level thoughts on what that would mean for alternatives to detention? What that bill -- if it had passed, what that would have meant for ATD?

知道了。這很有幫助。你提到邊境安全法案沒有通過，但得到了很多支持，你對這對拘留替代方案意味著什麼有什麼高層想法嗎？該法案是什麼？

Good question. I don't -- keep me honest here. I don't remember any meaningful adjustment on ATD under that bill. Again, it seemed like most of the focus was on additional detention capacity. So again, I'd say, there may be some movement there. But I think at least for now, I mean, it seems like the focus has really shifted here in the last year or a year or so on more detention capacity. Anything you'd add to that, Dave?

好問題。我不——老實說。我不記得該法案對 ATD 進行任何有意義的調整。同樣，似乎大部分焦點都集中在額外的拘留能力上。所以我再說一遍，那裡可能會有一些動作。但我認為至少現在，我的意思是，焦點似乎在去年或一年左右的時間裡真正轉移到了更多的拘留能力。戴夫，你還有什麼要補充的嗎？

I don't -- I mean, we saw an article yesterday about potential action on bringing back the supplemental. And I think that would be focused more on detention than it would ATD.

我不——我的意思是，我們昨天看到了一篇關於恢復補充的潛在行動的文章。我認為這將更多地關注拘留而不是 ATD。

Got it. I appreciate it. Thank you.

知道了。我很感激。謝謝。

Thank you, sir.

謝謝你，先生。

Brian Violino, Wedbush.

布萊恩·維奧利諾，韋德布希。

Great. Thanks for taking my question. Just to kind of ask the expense question in a different way. I think in the past, you've talked about a 25% NOI margin in the safety and community segments combined, being sort of a target range going back to pre-pandemic.

偉大的。感謝您提出我的問題。只是以不同的方式詢問費用問題。我想在過去，您曾談到安全和社區領域綜合的 NOI 利潤率為 25%，這是可以追溯到大流行前的目標範圍。

You were just under 24% this quarter. It seems like you're seeing some positive trends on the expense side. Just wondering if you have updated views on when we might be able to get to that level on a sustainable basis and if there's possible upside, given the relief on the labor market that you see?

本季您的比例略低於 24%。您似乎在費用方面看到了一些積極的趨勢。只是想知道您是否對我們何時能夠在可持續的基礎上達到這一水平以及考慮到您看到的勞動力市場的緩解是否存在可能的上升空間有最新的看法？

Yes. I'll take that one, Brian. Thanks for the question. Yes, we have made a lot of good progress. And in fact, Q1 is typically, seasonally one of our worst quarters because of the reset of unemployment taxes. So that actually was a headwind for the margin in Q1. So as we look forward, I do -- going back to the statement I made earlier, I think we still have some hiring to do to get back to pre-pandemic staffing levels. But again, that will be offset somewhat by the temporary incentives that we would incur.

是的。我要那個，布萊恩。謝謝你的提問。是的，我們已經取得了許多良好的進展。事實上，由於失業稅的重置，第一季通常是季節性最糟糕的季度之一。因此，這實際上是第一季利潤率的不利因素。因此，當我們展望未來時，我確實——回到我之前所做的聲明，我認為我們仍然需要進行一些招聘工作才能恢復到大流行前的人員配置水平。但同樣，這將在某種程度上被我們所採取的臨時激勵措施所抵消。

So it's certainly -- we've never wavered from getting back to 25% margins on the safety and community segments. Whether that's achievable in 2024, I think, will be dependent on occupancy since that's the primary driver. You get so much leverage over the model when you're increasing your occupancy. So that's going to be the key. And the closer we get to that 80% occupancy, the faster we'll get to that 25%. So I wouldn't rule it out this year. Not sure we'll hit that, but it's a possibility.

因此，我們從未動搖過在安全和社區領域恢復 25% 的利潤率。我認為，這是否能在 2024 年實現，將取決於入住率，因為這是主要驅動因素。當你增加入住率時，你會對模型有很大的影響力。所以這將是關鍵。我們越接近 80% 的入住率，就越快達到 25%。所以今年我不排除這種可能。不確定我們是否會實現這一目標，但這是有可能的。

Okay, great. Thanks for taking my question.

好的，太好了。感謝您提出我的問題。

Sure. Thank you, Brian.

當然。謝謝你，布萊恩。

I'm showing no further questions at this time. I would now like to turn it back to Damon Hininger, Chief Executive Officer, for closing remarks.

我目前沒有提出任何進一步的問題。現在我想請執行長達蒙·希寧格 (Damon Hininger) 致閉幕詞。

Thank you so much. And before we adjourn, let me just also do a public service announcement and note on CoreCivic.com is newest ESG report. We just released that here in this last couple of weeks. It's our sixth consecutive year of doing an ESG report. Take a few minutes and check it out. We've completely reformatted it.

太感謝了。在我們休會之前，讓我也先做一個公共服務公告，並在 CoreCivic.com 上註明最新的 ESG 報告。我們在過去幾週剛剛在這裡發布了它。這是我們連續第六年發布 ESG 報告。花幾分鐘時間檢查一下。我們已經完全重新格式化了它。

But more importantly, it just shows a great window into our organization on what we're doing on the human rights front within our facilities to how we're working on talent acquisition, but most notably, the outcomes that we're producing for the people on our care through programs -- through academic and vocational programs. Take a few minutes. Run through it. It shows, again, a great window in our organization, the great work our team does each and every day.

但更重要的是，它只是向我們的組織展示了一個很好的窗口，讓我們了解我們在設施內的人權方面所做的工作，以及我們如何在人才招募方面開展工作，但最值得注意的是，我們為透過學術和職業計畫接受我們照顧的人。花幾分鐘時間。跑過去。它再次展示了我們組織的一個重要窗口，以及我們團隊每天所做的出色工作。

So with that, thank you so much for your time and attention on our call today. Thank you also to our investors for your trust and support of the company. And with that, we're adjourned. Thanks, everyone.

因此，非常感謝您今天抽出寶貴的時間和注意力參加我們的電話會議。也感謝廣大投資者對公司的信任與支持。就這樣，我們休會了。感謝大家。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。