CoreCivic (formerly Corrections Corporation of America) announced its Quarter 3 earnings in November including lower revenue compared to this quarter last year. “Total revenue in the third quarter of 2017 was $442.8 million compared to $474.9 million in the third quarter of 2016,” the company reported to NASDAQ.
While CoreCivic won new contracts in Tennessee and Arizona, its revenue was reduced by changes in contracts with Texas facilities. Effective November 2016, Immigration and Customs Enforcement (ICE) amended and extended its contract with CoreCivic to operate the South Texas Family Residential Center (STFRC), the nation’s largest immigrant detention center. The changes in the contract “resulted in a reduction of revenue to $28.7 million” compared to the third quarter in 2016.
CoreCivic also lost revenue in Texas following the expiration of contracts with the Federal Bureau of Prisons at Eden Detention Center that closed earlier this year.
The company states it is continuing to “diversify” its revenue stream as it gains new contracts for reentry facilities, such as the Austin, Dallas, and Fort Worth Transitional Centers. Earnings are expected to increase as more detention facilities are solicited by the Trump administration.