Executive Vice President & Chief Financial Officer, Corecivic
Search every verified David Garfinkle interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. David Garfinkle, Executive Vice President and Chief Financial Officer of CoreCivic, participated in a virtual road show on September 17, 2020, alongside CEO Damon Hininger. During the presentation, Garfinkle stated that the company's business model generates significant cash flows and is durable during good and bad times, including the pandemic. He noted that as of June 30, 2020, CoreCivic had a leverage ratio of 3.9 times net debt to EBITDA and over $364 million in cash on hand. Garfinkle also discussed the company's decision to revoke its REIT election and convert to a taxable C corporation effective January 1, 2021, citing that the market had not assigned a proper value to the company's cash flows and that the REIT structure limited its ability to retain cash and buy back stock. Garfinkle addressed challenges facing the private prison industry, including political pressure and mischaracterization as non-ESG investments, which he said had increased the company's cost of capital and limited banking relationships. He highlighted growth opportunities in states like Alabama, which he described as planning to construct new correctional facilities owned and maintained by CoreCivic, and estimated $15 to $20 billion in outdated correctional infrastructure nationwide requiring replacement. Garfinkle stated that the company's near-term capital allocation priority was debt reduction, with share repurchase programs to be evaluated afterward. He also noted that he had accumulated a significant amount of CoreCivic shares over his tenure as CFO, with over half of his net worth invested in the company.
“Our business model generates significant cash flows; it's durable during good times and bad, including the pandemic. As of June 30th, our leverage was 3.9 times net debt to EBITDA, consistent with our historical policy, and we maintain a very strong liquidity position with over $364 million cash on hand.”
“We decided to revoke our REIT election and convert to a taxable C corporation effective January 1, 2021, primarily because the market has not assigned a proper value to our durable cash flows, and the REIT structure limits our ability to retain cash and buy back stock, which are important tools to improve shareholder v...”
“The private prison industry faces political pressure and mischaracterization as non-ESG investments, especially related to immigration policies, which has increased our cost of capital and limited banking relationships.”
“We have a tremendous amount of oversight from government partners, including on-site monitors and third-party audits, which raises the bar for quality and accountability in our facilities. Our contract renewal rates have been consistently above 90%, reflecting the trust our partners place in us.”
“We provide purpose-built detention facilities that meet or exceed performance-based national detention standards, including specialized family residential facilities that keep mothers and children together in humane environments.”
“The COVID-19 pandemic has reinforced the value of our newer, modern facilities that allow for effective quarantine, cohorting, and infection control, making our real estate even more critical to our government partners.”
“We see significant growth opportunities in states like Alabama, which is planning to construct new correctional facilities operated by the state but owned and maintained by us, fitting into our property segment. There is an estimated $15 to $20 billion in outdated correctional infrastructure nationwide that will requir...”
“Our near-term capital allocation priority is debt reduction, especially paying down or refinancing upcoming maturities. Once that is achieved, we will evaluate share repurchase programs to maximize shareholder value.”
“I personally have accumulated a significant amount of CoreCivic shares over my 10 years as CFO, with over half of my net worth invested in the company, demonstrating my strong alignment with shareholder interests.”
“The transition from REIT to taxable C corporation will be seamless operationally, with no disruption to facility operations. The main changes will be in finance, including preparing a material income tax provision and paying quarterly tax estimates starting in 2021.”
Part of the Channelchek Virtual Road Show Series, featuring an exclusive corporate presentation from C-suite executives ...
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