David Garfinkle on operations
From CoreCivic (CXW) Virtual Road Show with CEO Damon Hininger & CFO David Garfinkle · · channelchek
“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.”
On , David Garfinkle, Executive Vice President & Chief Financial Officer at CORECIVIC INC, spoke about operations during CoreCivic (CXW) Virtual Road Show with CEO Damon Hininger & CFO David Garfinkle on channelchek.
About David Garfinkle
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to construct new correctional facilities owned and maintained by CoreCivic, and estimated $15 to $20 billion in outdated correctional infrastructure nationwide requiring replacement.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.