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Operations & Management

“[Our] growth depends on... crime rates and sentencing patterns. ... [R]eductions in crime rates or resources dedicated to prevent and enforce crime could lead to reductions in arrests, convictions and sentences requiring incarceration at correctional facilities.”
— CoreCivic, 2016 Annual Report

$4.8 B

revenues

$629 M

Profit

$8.7 M

5-Yr Lobbying spending


Typically referred to as private prison companies, operators manage correctional facilities and immigration detention centers for adults and youth. Since they often own the facilities, some operators are structured as Real Estate Investment Trusts, or real estate portfolios, that enjoy particular tax benefits. Several have begun diversifying their businesses, expanding into prison transportation, healthcare, and educational programming as well as community corrections such as residential reentry facilities, day reporting centers, and electronic monitoring. 

Market Share

(hover over pie chart for details)

Scrambling to find additional detention beds, ICE has considered waiving national detention standards and Prison Rape Elimination Act requirements.
"They’re scraping the bottom looking for beds,"
explained one official. 


65%

privatized
ICE beds

450%

Expected Growth
in ICE beds


Top 5 Market Players

 

Revenues
Adj. EBITDA
 Margin
Net Income
 Margin
FFO
AFFO

Eff. Tax 

Man-days

Corrections
 Facilities
 Beds
 Occupancy

Community
 Facilities
 Beds
 Supervision
 Monitoring

Other

Federal
  ICE

Employees
 Unionized

Lobbying
Campaign

$1,849.8 M
$417.6 M
22.6%
$219.9 M
11.9%
$317.6 M
$304.4 M

3.6%

24.1 M


60
84,622
78.8%


25
5,082
--
--

Transport

52%
28%

13,755
5.7%

$1.48 M
$781,800

$1,769.7 M
$411.0 M
23.2%
$166.6 M
9.4%
$224.0 M
$279.2 M

7-9%

22.0 M


74*
80,566*
93.4%


62*
11,588*
185,000*
124,000*

--

48%*
18%*

23,500*
21.7%*

$1.00 M
$1.74 M

$ 421.3 M
NA
NA
NA
NA
--
--

NA

NA


24
28,320
NA


--
--
--
--

Healthcare

34%
10%

8,600**
NA

NA
NA

NA
NA
NA
NA
NA
--
--

NA

NA


23
18,134
NA


--
--
--
--

Healthcare

NA
NA

1,250
NA

NA
NA

NA
NA
NA
NA
NA
--
--

NA

NA


NA
NA
NA


--
--
--
--

--

NA
NA

NA
NA

NA
NA

Notes: GEO Group financial data represents US-based business segments only (except FFO and AFFO) and excludes financial performance of CEC, which is expected to add $250 M in annual revenues. MTC revenue estimate does not include Job Corps, healthcare, or program only revenues;  MTC Federal and ICE percentages calculated as percent of beds rather than percent of revenues. 

*Includes 2017 acquisition of Community Education Centers (CEC)
**Includes a small number of international staff



Sources

Complaint, Owino vs. CoreCivic (S.D. Cal. 2017).

CoreCivic. 2016 Annual Report - Form 10-KDecember 31, 2016.

CoreCivic. Political Activity and Lobbying Report 2015, December 31, 2015. 

Devlin Barrett, "Record Immigrant Numbers Force Homeland Security to Search for New Jail
Space.
Wall Street Journal, October 21, 2016.

GEO Group. Form 10-K, December 31, 2016.

GEO Group. Investor Presentation, June 2017. REIT Stream.  

GEO Group. Press Release: The GEO Group Announces $360 Million Acquisition of Community Education Centers, February 22, 2017. Business Wire.

National Institute on Money in State Politics. FollowTheMoney.org

OpenSecrets.org. Lobbying Database.

Pauly, Madison, "The Private Prison Industry Is Licking Its Chops Over Trump’s Deportation Plans." Mother Jones, February 21, 2017.

White, Martha, "Locked-In Profits: The U.S. Prison Industry, By the Numbers." NBC News, November 2, 2015.