Month: February 2021

CoreCivic, Inc. (CXW) – Post Call Commentary and Updated Model

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Friday, February 12, 2021

CoreCivic, Inc. (CXW)
 Post Call Commentary and Updated Model

CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Fourth Quarter Continuing a Trend. We view the fourth quarter as continuation a trend, one across the last three quarter’s of 2020. In spite of COVID, the large reduction in detainees, the reduction in normal operations of the court system, and other impacts, CoreCivic posted relatively flat revenue and sequential adjusted EPS growth. We believe this illustrates the strength of the Company’s operating model.

    Alabama, and More to Come?  We highlighted in yesterday’s note CoreCivic’s award to build and lease two facilities for the State of Alabama. On the call management indicated that Hawaii has begun exploring options for new facilities. Could this be the beginning of a trend? Some 290,000 inmates are housed in facilities that are over 50 years old, or at or past the end of their …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Eagle Bulk Shipping (EGLE) – Fleet Renewal Program Twists Toward Growth

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Friday, February 12, 2021

Eagle Bulk Shipping (EGLE)
Fleet Renewal Program Twists Toward Growth

Eagle Bulk Shipping Inc. is a US-based drybulk owner-operator focused on the Supramax/Ultramax mid-size asset class, which ranges from 50,000 and 65,000 deadweight tons in size; these vessels are equipped with onboard cranes allowing for the self-loading and unloading of cargoes, a feature which distinguishes them from the larger classes of drybulk vessels and provides for greatly enhanced flexibility and versatility- both with respect to cargo diversity and port accessibility. The Company transports a broad range of major and minor bulk cargoes around the world, including coal, grain, ore, pet coke, cement, and fertilizer. Eagle operates out of three offices, Stamford (headquarters), Singapore, and Hamburg, and performs all aspects of vessel management in-house including: commercial, operational, technical, and strategic.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Fleet renewal program takes a twist. Three 2011-built Supramaxes will be acquired for ~$30 million. This move represents a shift to growth after the sales of five older Supramaxes (average age of 18 years) since mid-2020. There is a neutral impact on the age profile and fuel consumption. The pro forma fleet will total 52 vessels with an average age below nine years.

    Thesis intact.  While the past two years were negatively impacted by extreme factors, the supply/demand fundamentals appear favorable and the year has started on a better-than-expected note. The order book and supply growth remain historically low due to rate volatility, regulatory uncertainty and declining capital availability, while demand should rebound on the back of global stimulus packages and …



This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Release – Ely Gold (ELYGF)(ELY:CA) – Acquires Heavy Rare Earth El Campo Project California

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Ely Gold Royalties Acquires Heavy Rare Earth El Campo Project, California

 

Samples Return up to 8.60% Total Critical Rare Earth Oxides Located 3.2 Miles from MP Material’s Mountain Pass Mine

Vancouver, British Columbia, Canada, February 12, 2021. Ely Gold Royalties Inc. (TSX-V:ELY, OTCQX:ELYGF) (“Ely Gold” or the “Company”) is pleased to report nine assayed samples of total rare earth oxides (“REO”) at its El Campo Project (“El Campo”) located in San Bernardino County, California. El Campo encompasses five contiguous unpatented mining claims that are surrounded by mining claims held by MP Materials (NYSE: MP) which make up the Mountain Pass Mine Property (“Mountain Pass”). Mountain Pass is the only operating rare earth mine in the Western Hemisphere.. El Campo is located along strike and 3.2 miles southeast of Mountain Pass (see Figure #1). Ely Gold Acquired El Campo through staking.

Since acquiring El Campo, Ely Gold has collected and analyzed a total of nine bedrock samples which returned up to 8.60% total Rare Earth Oxides (“REO”), similar in grade to Mountain Pass ore. The REO mineralization is hosted by syenite and shokonite dikes. The mineralized zones sampled are carbonatite composed of calcite and or dolomite, barite and bastnasite and are up to 20 feet wide at surface.

El Campo’s REO content is made up of heavy rare earth elements Nd, Pr, La, Ce & Sm. The elevated higher-value elements, Neodymium-Praseodymium (“NdPr”) are important for producing permanent magnets used in electric vehicles and wind turbines while the Samarium (“Sm”) is important for defense applications such as drones and cruise missles. All nine of the samples, which returned REO values of 4% or greater, are summarized in the table below:

El Campo Project Sampling Program Highlights

Trey Wasser, President and CEO commented; “we are excited with the impressive grades from our initial sampling that suggest the potential to outline a high-grade rare earth deposit at our El Campo Project. The proximity to the high-grade Mountain Pass Mine, North America’s only operating rare earth mine, makes this a very exciting project. El Campo will be placed in our “properties available for sale” portfolio, The sale of El Campo will generate Ely Gold’s first rare earth royalty”..

Figure 1

Qualified Person

Stephen Kenwood, P. Geo, is director of the Company and a Qualified Person as defined by NI 43-101. Mr. Kenwood has reviewed and approved the technical information in this press release.

About Ely Gold Royalties Inc.

Ely Gold Royalties Inc. is a Nevada focused gold royalty company. Its current portfolio includes royalties at Jerritt Canyon, Goldstrike and Marigold, three of Nevada’s largest gold mines, as well as the Fenelon mine in Quebec, operated by Wallbridge Mining. The Company continues to actively seek opportunities to purchase producing or near-term producing royalties. Ely Gold also generates development royalties through property sales on projects that are located at or near producing mines. Management believes that due to the Company’s ability to locate and purchase third-party royalties, its strategy of organically creating royalties and its gold focus, Ely Gold offers shareholders a favourable leverage to gold prices and low-cost access to long-term gold royalties in safe mining jurisdictions.

On Behalf of the Board of Directors
Signed “Trey Wasser”
Trey Wasser, President & CEO

For further information, please contact:

Trey Wasser, President & CEO
trey@elygoldinc.com

972-803-3087

Joanne Jobin, Investor Relations Officer
jjobin@elygoldinc.com

647 964 0292

FORWARD-LOOKING CAUTIONS: This press release contains certain “forward-looking statements” within the meaning of Canadian securities legislation, including, but not limited to, statements regarding completion of the Transaction. Forwardlooking statements are statements that are not historical facts; they are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the Company’s inability to control whether the buy-down right will ever be exercised, and whether the right of first refusal will ever be triggered, uncertainty as to whether any mining will occur on the property covered by the Probe Royalty such that the Company will receive any payment therefrom, and the general risks and uncertainties relating to the mineral exploration, development and production business. The reader is urged to refer to the Company’s reports, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effect.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Source: Ely Gold Royalties

CoreCivic, Inc. (CXW) – Solid Fourth Quarter Buried Under the Noise

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Thursday, February 11, 2021

CoreCivic, Inc. (CXW)
Solid Fourth Quarter Buried Under the Noise

CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    4Q21 Results. For the fourth quarter CoreCivic reported revenue of $473.5 million, down from $497.8 million in the same period last year. Reported loss was $0.22 per share versus EPS of $0.35 last year. Adjusted EPS was $0.40 versus $0.36. FFO was $0.19 per share compared to $0.58 last year while NFFO was $0.63 per share in the fourth quarter of 2020 compared to $0.59 last year. We had projected revenue of $468.5 million, EPS of $0.23, FFO of $0.47, and NFFO of $0.50.

    What Was Behind The Noise? CoreCivic had $75.6 million of special items in the quarter.  These included $47.6 million of asset impairments as the Community segment goodwill was written off, $7.1 million in expenses associated with debt repayments and refinancing transactions, $2.8 million of COVID related expenses, and $17.9 million in losses from the sale of real estate assets …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Scientists Now Better Understand Viral Mutations

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MIT Researchers are Learning to “Speak the Language” of Viruses

 

Artificial intelligence, now used in machine language learning, is being put to use to study viral evolution in order to design effective vaccines. MIT researchers have conducted studies that have developed a powerful new computational tool for predicting the mutations that allow viruses to “escape” human immunity or vaccines. Predicting how a virus is going to behave should save countless lives each year. This is true whether it is a coronavirus, influenza, rhinovirus, or HIV. The challenge is being overcome by MIT with the help of the same software that teaches machines spoken language.

The behavior they have focused on is mutation, which viruses do slowly but progressively over time. This is why they tend to become resistant to previously effective vaccines. It is also why vaccines for influenza are “updated” annually, and an HIV vaccine has been so difficult to obtain. The MIT researchers have devised a new way to compute viral escape based on models that were originally developed to analyze and then teach language. The model has successfully predicted which sections of the viral surface are most prone to mutate in a way that enables the virus to escape discovery by the immune system. The language learning model can also identify portions of the viruses that are less likely to mutate. The sections that are least likely to change are the better targets for new vaccines.

 

Viral Escape

Viral escape is the process that allows viruses to evade the host’s immune systems (including antibodies induced by vaccines). It occurs when the genetic material of the virus is modified and the sequence of proteins altered.

Ongoing modification and synthesis of viral protein sequences are why vaccines quickly become obsolete and then require new study and redesign to be effective. The goal of scientists, including those studying viruses using language learning models, is to stay one step ahead of these parasites by focusing their attention on parts of the virus least likely to mutate.

 

About MIT’s Model

As mentioned earlier, the model developed and optimized at MIT is focused on observing the regions of the virus’s surface proteins and then forecasting which parts have the highest probability to mutate based on previous observations. Identifying these portions and their genetic “language” has allowed the researchers to calculate the best objectives of a new vaccine or modifications to those that already exist.

 

Different Viruses, Different Languages

Each virus mutates at a different rate. The seasonal flu virus spins off different versions rapidly (in less than a year), HIV mutates with a speed that has prevented an effective vaccine.  This is why these two virus types have the ability to escape the immune system with relative ease.  Reading the language of each virus, by following repeated patterns to know what it is telling us about itself, has allowed researchers to predict where the change may come about. The stable portion of the virus, once identified, becomes the center of research in cures and prevention.

In order to use viral language reading to model the gene expression and mutation processes of new virus surface proteins, scientists analyze pre-existing sequences of genes and observe temporal and spatial changes. After many observations, sophisticated models are used to create virtual simulations of the changes that could occur. The models used are based on language.

Language models have shown themselves to be powerful because they can learn the complex distributional structure and gain insight into function just from the sequence variation. The model learns from each occurrence, co-occurence, and sequence variation across data.

 

 

Blocking Escape

After training the model, the researchers put it to use to predict sequences of the coronavirus spike protein, HIV envelope protein, and influenza hemagglutinin (HA) protein for it to suggest where escape mutations would be less likely to be generated.

For the flu, the model suggested that the sequences least likely to mutate and produce viral escape were in the stalk of the HA protein. This matches the findings of recent studies that show antibodies that target the HA stalk can offer near-universal protection against any flu strain.

The coronaviruses’ forecast and analysis provided that a part of the spike protein referred to as the S2 subunit is least likely to produce escape mutations. As an aside, there is not enough data on the variant SARS-CoV-2 to determine how rapidly it mutates at this time.

In their studies of HIV, the scientists discovered that the V1-V2 hypervariable region of the protein has several possible escape mutations; this is consistent with previous findings. On the positive side, they also identified sequences that would have a lower probability for mutation, allowing immune system escape.

The Future of this Research

Mutations and “viral escape” remain the biggest challenge in the search for vaccines and viral treatments that remain effective year after year. Indications are the future of virus research, and the fight and prevention of the infections they produce lie in predicting and anticipating each virus’s behavior. The AI language learning models adapted to recognize the activity of viruses to determine future activity is novel and producing useful results. It’s expected that this new use of the technology will be a large contributor to facing the challenges of viral research.

 

Suggested Content:

Healthcare Panel Video, NobleCon17 (January 2021)

T1D Diabetes Video Panel Discussion (December 2020)

Interest Rates Impact on Investment Sectors

 

Sources:

Preventing Viral Escape

Algorithms to Study Language Can Predict Viral Mutations

Learning the Language of Viral Evolution and Escape

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Ely Gold Royalties (ELYGF)(ELY:CA) – Increasing Its Stake in Nevada’s Hog Ranch Gold Project

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Thursday, February 11, 2021

Ely Gold Royalties (ELYGF)(ELY:CA)
Increasing Its Stake in Nevada’s Hog Ranch Gold Project

As of April 24, 2020, Noble Capital Markets research on Ely Gold Royalties is published under ticker symbols (ELYGF and ELY:CA). The price target is in USD and based on ticker symbol ELYGF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. Ely Gold Royalties Inc is an emerging royalty company with producing and development assets focused in Nevada and the Western US. It offers shareholders a low-risk leverage to the current price of gold and low-cost access to long-term gold royalties.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Increases royalty and lease interest in Hog Ranch. Ely Gold Royalties, through its Nevada Select Royalty subsidiary, executed a binding term sheet to acquire an additional 25% interest in its Hog Ranch Property in Washoe County, Nevada, roughly 270 kilometers north of Reno, from Platoro West incorporated. The additional interest in Hog Ranch will increase Ely’s net smelter returns royalty to 2.25% from 1.5% and its interest in the leased mining claims to 75.1% from 50.1%.

    Terms of the transaction.  The term sheet provides for cash consideration, paid by Ely Gold at closing, of US$275,000 and the issuance of 1,000,000 warrants exercisable at C$0.90. The agreement is subject to approval by the TSX Venture Exchange. Platoro West is owned by William Sheriff, a director of Ely Gold Royalties. Recall that Ely Gold acquired its current interest from Platoro West in June …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Comtech (CMTL) – Awarded $235.7 Million Contract from U.S. Army

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Wednesday, February 10, 2021

Comtech (CMTL)
Awarded $235.7 Million Contract from U.S. Army

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    New Award. Continuing its award momentum, yesterday Comtech announced it has been awarded a contract valued up to $235.7 million to provide the U.S. Army with ongoing system refurbishments, sustainment services, and baseband equipment. The total contract value includes a base-year award and three one-year option periods exercisable by the U.S. Army. The $57.9 million base year award ceiling has been initially funded $11.5 million by the U.S. Army, with additional funding expected to occur over the remaining base year performance period. This was a competitive solicitation.

    SIPR and NIPR.  The contract will support the sustainment of the Army’s AN/TSC-198 Secret Internet Protocol Router (“SIPR”) and Non-secure Internet Protocol Router (“NIPR”) Access Point (“SNAP”) family of ground satellite terminals, to include spare parts, repairs, upgrades, refurbishments, logistics and engineering services, and training …



This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Golden Predator Mining (NTGSF)(GPY:CA) – Bankable Feasibility Study Expected Later This Quarter

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Wednesday, February 10, 2021

Golden Predator Mining (NTGSF)(GPY:CA)
Bankable Feasibility Study Expected Later This Quarter

Golden Predator Mining Corp is a Canada based exploration stage company engaged in the business of acquiring and exploring mineral properties. It owns properties primarily in Yukon, Canada. Some of the company’s projects located in Yukon are the 3 Aces, Sprogge, Reef, Brewery Creek, Marg, Sonora Gulch, Grew Creek, Upper Hyland and others.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Final drill results from 2020 work program. Results were released for the remaining 16 of 32 drill holes from the 2020 work program. Recall that 32 infill drill holes, representing 3,706 meters, were completed in a 400-meter gap area between the Golden and Lucky resource areas. The infill drill program built on the company’s 2019 program that established continuity of mineralization within the licensed Reserve Trend between the eastern edge of the Canadian-Fosters-Kokanee-Golden pits (Keg pit shell) east to the Lucky pit. Infill drilling within this 400-meter gap is intended to convert inferred resources to indicated resources and confirm continuity of mineralization between the two deposits to incorporate the Lucky resource into the Keg pit shell.

    Positive outcomes.  Assay results indicated significant thicknesses of gold mineralization in 14 of the 16 drill holes. Two of the drill holes were not completed to target depth. Composite mineralized intercept thicknesses ranged from 6.10 meters to 45.72 meters with an average composite mineralized thickness of 26.05 meters in the 11 drill holes that had full intersections across the mineralized …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Release – Comstock Mining (LODE) – Comstock and MCU Ready Launch of Mercury Remediation Operations

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Comstock and MCU Ready Launch of Mercury Remediation Operations; First Regional Remediation and Extraction Facility Expected to Begin Full Operations in March 2021

 

Virginia City, NV (February 10, 2021) – Comstock Mining Inc. (NYSE: LODE) (“Comstock” and the “Company”) and Mercury Clean Up LLC (“MCU”), announced today that construction is nearly complete in their Clean Mercury Remediation Technologies (“CMRT”) joint venture, representing the first mercury remediation and gold extraction facility in the province of Davao D’ Oro, Philippines, with initial operations launching next week.

Artisanal and Small-Scale Gold Mining (ASGM) Dilemma

Mercury?dependent ASGM uses a process known as amalgamation to dissolve gold from natural deposits. The amalgam is then typically isolated by hand and then heated to distill the mercury and isolate the gold. Problematically, mercury is hazardous to human health and the environment, where residual ASGM wastes contaminate water and soil and ultimately bioaccumulate into food chains. Mercury risks to children are particularly acute, with mercury emissions from ASGM disabling both physical and mental development. The process was regulated into near extinction by most countries, but upwards of 20 million people still use mercury to mine for gold in more than 70 countries, making mercury pollution from ASGM a U.N. prioritized global issue through the Minamata Convention.

Proprietary Remediation and Extraction Process

The MCU mercury remediation system is the first of several planned by MCU, Comstock and CMRT in the region. Each system is mobile and specifically designed for remote deployment, to remediate mercury from existing amalgamation wastes while extracting residual by-products, including gold, cleaned sand, soil and gravel for commercial use. The mercury wastes are disposed in a safe and compliant manner, thereby repairing and enhancing local ecosystems, while the extracted gold and cleaned by-products provide multiple high-margin revenue streams.

“Each facility is expected to produce positive cash flow within a few months of start-up, with fast returns on capital deployed, typically in less than a year, depending on processing rates and the various by-products extracted from environment,” said Corrado De Gasperis, Comstock’s Executive Chairman and Chief Executive Officer. “Our deployment plan involves several additional systems once the first remediation activities are up and running, so we are very much looking forward to achieving that objective and moving into positive cash flows and sustained growth.”

A photo accompanying this announcement is available at https://www.comstockmining.com/press-releases/comstock-and-mcu-ready-launch-of-mercury-remediation-operations

About Comstock Mining Inc.

Comstock Mining Inc. is a Nevada-based, precious and strategic metal-based exploration, economic resource development, mineral production and metal processing business with a strategic focus on high-value, cash-generating, environmentally friendly, and economically enhancing mining and processing technologies and businesses. The Company has extensive, contiguous property in the historic Comstock and Silver City mining districts (collectively, the “Comstock District”), is an emerging leader in sustainable, responsible mining and processing, and is currently commercializing environment-enhancing, metal-based technologies, products, and processes for precious and strategic metals recovery.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: consummation of all pending transactions; project, asset or Company valuations; future industry market conditions; future explorations, acquisitions, investments and asset sales; future performance of and closings under various agreements; future changes in our exploration activities; future estimated mineral resources; future prices and sales of, and demand for, our products; future impacts of land entitlements and uses; future permitting activities and needs therefor; future production capacity and operations; future operating and overhead costs; future capital expenditures and their impact on us; future impacts of operational and management changes (including changes in the board of directors); future changes in business strategies, planning and tactics and impacts of recent or future changes; future employment and contributions of personnel, including consultants; future land sales, investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; the nature and timing of and accounting for restructuring charges and derivative liabilities and the impact thereof; contingencies; future environmental compliance and changes in the regulatory environment; future offerings of equity or debt securities; asset sales and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.

These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: counterparty risks; capital markets’ valuation and pricing risks; adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mining activities; contests over title to properties; potential dilution to our stockholders from our stock issuances and recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting businesses; permitting constraints or delays; decisions regarding business opportunities that may be presented to, or pursued by, us or others; the impact of, or the non-performance by parties under agreements relating to, acquisitions, joint ventures, strategic alliances, business combinations, asset sales, leases, options and investments to which we may be party; changes in the United States or other monetary or fiscal policies or regulations; interruptions in production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of terrorism and geopolitical events; potential inability to implement business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors or others; assertion of claims, lawsuits and proceedings; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; inability to maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Contact information for

Comstock Mining Inc.
117 American Flat Rd
PO Box 1118
Virginia City, NV 89440
http://www.comstockmining.com

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
degasperis@comstockmining.com

Zach Spencer
Director of External Relations
Tel (775) 847-5272 ext.151
questions@comstockmining.com

Source: Comstock Mining

Release – CoreCivic (CXW) – Announces 2020 Fourth Quarter Earnings Release and Conference Call Dates

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CoreCivic Reports Fourth Quarter and Full Year 2020 Results

 

BRENTWOOD, Tenn. – February 10, 2021 – CoreCivic, Inc. (NYSE: CXW) (the Company) announced today its financial results for the fourth quarter and full year 2020.

Financial Highlights – Full Year 2020

  • Total revenue of $1.91 billion
    • CoreCivic Safety revenue of $1.71 billion
    • CoreCivic Community revenue of $106.0 million
    • CoreCivic Properties revenue of $93.1 million
  • Net income attributable to common stockholders of $54.2 million
  • Diluted EPS per share of $0.45
  • Adjusted diluted EPS of $1.32
  • Normalized FFO per diluted share of $2.25
  • Adjusted EBITDA of $404.8 million
  • Non-cash impairment charges of $60.6 million

Damon T. Hininger, CoreCivic’s President and Chief Executive Officer, said, “While 2020 was an unprecedented and unpredictable year, we once again displayed the value of the mission-critical solutions we provide to our government partners and the durability of our cash flows. For the full year, we generated Normalized FFO per share of $2.25, only 4% below the mid-point of our guidance of $2.35 announced in February 2020, before the COVID-19 pandemic. In the fourth quarter we continued our capital allocation strategy of debt reduction by repaying more than $125 million in long-term debt, net of the change in cash, due to our strong operating cash flows and net proceeds provided by our recently announced sale of non-core government-leased real estate assets. We currently expect the sale of additional non-core assets, when combined with the sale completed in the fourth quarter of 2020, will result in aggregate net cash proceeds consistent with our original estimate of up to $150 million.

“Our achievements are only possible thanks to our dedicated professionals who continue to be on the front lines of the COVID-19 pandemic. Their dedication and diligence have been essential to meeting the needs of our government partners through a difficult period of time, and we continue to work tirelessly to protect our employees and the individuals in our care,” added Hininger.

CoreCivic is dedicated to helping those in its care be successful in their next step in life. Every day, CoreCivic’s chaplains, counselors and instructors help nearly 1,500 inmates learn the life and vocational skills they need to find and keep employment once released. Every year, its dedicated teachers help more than 1,500 inmates earn a GED, which research shows makes them 30% less likely to return to prison after they’re released. CoreCivic helps its government partners solve some of their toughest challenges by providing flexibility to manage constantly changing needs and populations and delivering on proven reentry programs that fight recidivism and change lives.

Financial Highlights – Fourth Quarter 2020

  • Total revenue of $473.5 million
    • CoreCivic Safety revenue of $424.3 million/li>
    • CoreCivic Community revenue of $25.3 million
    • CoreCivic Properties revenue of $23.8 million
  • Net loss attributable to common stockholders of $26.8 million
  • Diluted loss per share of $0.22
  • Adjusted diluted EPS of $0.40
  • Normalized FFO per diluted share of $0.63
  • Adjusted EBITDA of $108.7 million
  • Non-cash impairment charges of $47.6 million

Fourth Quarter 2020 Financial Results Compared With Fourth Quarter 2019

Net loss attributable to common stockholders in the fourth quarter of 2020 totaled $26.8 million, or $0.22 per diluted share, and was driven by $75.6 million, or $0.62 per share, of special items, compared with net income attributable to common stockholders generated in the fourth quarter of 2019 of $42.0 million, or $0.35 per diluted share. Adjusted for special items, net income in the fourth quarter of 2020 was $48.8 million, or $0.40 per diluted share (Adjusted Diluted EPS), compared with adjusted net income in the fourth quarter of 2019 of $42.8 million, or $0.36 per diluted share, a per share increase of 11.1%. Special items in the fourth quarter of 2020 included primarily $47.6 million in asset impairments, $7.1 million in expenses associated with debt repayments and refinancing transactions, $2.8 million in expenses associated with COVID-19, and $17.9 million in loss on sale of real estate assets. Special items in the fourth quarter of 2019 included $0.6 million in expenses associated with debt repayments and refinancing transactions and $0.2 million of expenses associated with mergers and acquisitions.

Funds From Operations (FFO) was $22.8 million, or $0.19 per diluted share, in the fourth quarter of 2020, compared to $69.0 million, or $0.58 per diluted share, in the fourth quarter of 2019. Normalized FFO, which excludes the special items described above, was $76.3 million, or $0.63 per diluted share, in the fourth quarter of 2020, compared with $69.8 million, or $0.59 per diluted share, in the fourth quarter of 2019, an increase in Normalized FFO per share of 6.8%.

EBITDA was $33.0 million in the fourth quarter of 2020, compared with $102.7 million in the fourth quarter of 2019. Adjusted EBITDA was $108.7 million in the fourth quarter of 2020, compared with $103.5 million in the fourth quarter of 2019, an increase of 5.0%. Adjusted EBITDA excludes the special items described above.

Adjusted financial results in the fourth quarter of 2020, compared with the fourth quarter of 2019, improved primarily because of incremental utilization under new contracts executed in 2019 and 2020 with (i) Immigration and Customs Enforcement (ICE) to activate our previously idle 910-bed Torrance County Detention Facility in New Mexico, (ii) ICE to utilize capacity at our 3,060-bed La Palma Correctional Center in Arizona, (iii) the U.S. Marshals Service (USMS) to utilize capacity at our 1,600-bed Cimarron Correctional Facility in Oklahoma, (iv) the states of Mississippi and Idaho to utilize available capacity at our 2,672-bed Tallahatchie County Correctional Facility in Mississippi and our 1,896-bed Saguaro Correctional Facility in Arizona. Financial results were also favorably impacted by lower general and administrative expenses in the fourth quarter of 2020 due to a reduction in incentive compensation.

The improved financial results were partially offset by lower utilization of our existing contracts with ICE and modest utilization declines across many of our state-level contracts due to the ongoing impact of COVID-19.

Balance Sheet and Liquidity as of December 31, 2020

As of December 31, 2020, cash on hand was $113.2 million, with an additional $566.2 million available under our revolving credit facility. Cash from operations and net proceeds from the sale of a portfolio of government-leased properties enabled us to repay $127.7 million of total debt during the fourth quarter of 2020, net of the change in cash and cash equivalents, increasing our financial flexibility. We have no material capital commitments, and no debt maturities until October 2022, when $250.0 million of 5.0% unsecured notes matures. We currently expect to repay these notes upon maturity with existing resources.

Recent Developments

On January 26, 2021, President Biden issued the Executive Order (EO) on Reforming Our Incarceration System to Eliminate the Use of Privately Operated Criminal Detention Facilities. The EO directs the Attorney General to not renew Department of Justice (DOJ) contracts with privately operated criminal detention facilities. Two agencies of the DOJ, the BOP and the USMS, utilize our services. The BOP houses inmates who have been convicted, and the USMS is generally responsible for detainees who are awaiting trial. The BOP has experienced a steady decline in inmate populations over the last seven years, a trend that has been accelerated by the COVID-19 pandemic. CoreCivic has one prison contract with the BOP, accounting for 2% of its total revenue for the year ended December 31, 2020, which was recently renewed through November 2022.

Commenting on the EO, Damon Hininger stated, “With nearly 70,000 fewer individuals in their system since its peak in 2013, the BOP’s need for prison capacity from the private sector has been reduced substantially. We are extremely proud of the critically important services we have provided to the BOP during their period of need extending for more than 20 years. Providing government agencies flexibility to manage fluctuations in their populations is one of the most important ways we provide value.” Hininger concluded, “We believe that our work is in alignment with the administration’s goals on equity. Our most recent ESG report shows we’re making real, measurable progress on our goals to expand proven reentry programs to fight recidivism and change lives – programs that help those in our care develop to their fullest potential and find success in their next step in life.”

Unlike the BOP, the USMS, does not own detention capacity and relies on the private sector, along with county jails, for their detainee population. We do not believe the USMS currently has sufficient detention capacity that satisfies their need without the private sector, and we are not currently aware of an alternative solution for the USMS. CoreCivic currently has eight detention facilities that have separate contracts where the USMS is the primary customer that all expire at various times over the next several years, with the exception of two contracts that have indefinite terms. For the year ended December 31, 2020, the USMS accounted for 21% of our total revenue.

Business Development Update

New Contract Award for the Development and Lease of Two Correctional Facilities for the State of Alabama. On February 1, 2021, we were awarded two new 30-year lease agreements with the Alabama Department of Corrections (ADOC) for the development of two correctional facilities, to be operated by the ADOC. Final lease costs for both properties will become available when project financing is completed. The two facilities will be the largest development projects in the Company’s history. We expect to finance 10%-15% of the project costs with existing resources, with the balance financed with non-recourse, project specific debt. Construction of both facilities, which will contain an aggregate of approximately 7,000 beds, is expected to commence later this year or the beginning of 2022. The two facilities are expected to be ready for occupancy once construction is completed in approximately three years. Both facilities will be leased, operated and staffed by the ADOC. CoreCivic will retain ownership and be responsible for facility maintenance throughout the term of the leases.

Commencement of New Management Contract with the Federal Bureau of Prisons for Reentry Services. On October 1, 2020, we were awarded a new contract by the Federal Bureau of Prisons for residential reentry and home confinement services at our 289-bed Turley Residential Center in Tulsa, Oklahoma and our 494-bed Oklahoma Reentry Opportunity Center in Oklahoma City, Oklahoma. As a result, we have recently reactivated the Turley Residential Center and began accepting residents at the facility and at the Oklahoma Reentry Opportunity Center under the new contract in February 2021. This contract supplements the existing contract with the state of Oklahoma at the Oklahoma Reentry Opportunity Center.

Sale of 42 Property Portfolio of Non-Core Government-Leased Properties. On December 23, 2020, we completed the sale of 42 non-core government-leased properties in a single transaction to a third party for an aggregate price of $106.5 million, generating net proceeds of $27.8 million after the repayment of non-recourse mortgage notes associated with some of the properties and other transaction-related costs. After considering tax protection payments required to be paid to the contributing partners of our wholly-owned subsidiary, Government Real Estate Solutions, LLC (GRES) in connection with the sale, we reported a net loss on this sale of $17.9 million. In connection with the sale, we also incurred a net debt defeasance charge of $7.1 million associated with the prepayment of the non-recourse mortgage notes. We intend to dissolve GRES in 2021, and currently expect to report a gain upon dissolution of the partnership reflected as an increase to stockholders’ equity of $15.0 million to $20.0 million, assuming we take no further actions that impact the partnership.

Assets Held for Sale. As of December 31, 2020, we had three additional non-core real estate assets held for sale with a net book value of $279.4 million. Although we can provide no assurance, based on interest expressed to-date, we are hopeful to consummate the sale of these assets during the first half of 2021. If we are successful in consummating the sale of these assets, combined with the sale completed in the fourth quarter of 2020, we expect the net proceeds from our sale of non-core assets will be consistent with our original estimate of up to $150 million.

Goodwill Impairment of Community Segment. In connection with our annual impairment test for the goodwill associated with the Community reporting unit, during the fourth quarter of 2020, we performed a quantitative goodwill impairment test and concluded to record an impairment charge of $42.6 million, representing the full value of goodwill allocated to this reporting unit. Our analysis considered numerous factors, with the impairment predominantly driven by our consideration of the broad-based declines in the market capitalization of publicly-traded companies in our industry, primarily during the second half of 2020, which is an indicator of fair value under ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment”. Our analysis also considered the reduction in cash flows from the COVID-19 pandemic and the anticipated change in tax structure effective January 1, 2021. We believe the cash flows in this segment will improve once effects of the pandemic subside, and remain committed to this segment, which focuses on helping those entrusted to our care obtain employment and successfully reintegrate into their communities. This segment serves a critical need to parolees, defendants, and offenders who are serving their full sentence, the last portion of their sentence, waiting to be sentenced, awaiting trial while supervised in a community environment, or as an alternative to incarceration.

Financial Guidance

At this time we are not providing 2021 financial guidance because of uncertainties associated with COVID-19, as well as uncertainties associated with the application of the administration’s various executive orders related to immigration and criminal justice. We do not expect to provide financial guidance until we have further clarity around these uncertainties. Our business is very durable, and continues to generate cash flow even during these unprecedented disruptions to the economy and criminal justice system. This resiliency is due to the essential nature of our facilities and services in our Safety and Community segments, further enhanced by the diversification and stability of our Properties segment, all supported by payments from highly rated federal, state, and local government agencies.

Supplemental Financial Information and Investor Presentations

We have made available on our website supplemental financial information and other data for the fourth quarter of 2020. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Financial Information” of the Investors section. We do not undertake any obligation, and disclaim any duties to update any of the information disclosed in this report.

Management may meet with investors from time to time during the first quarter of 2021. Written materials used in the investor presentations will also be available on our website beginning on or about March 1, 2021. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Events & Presentations” of the Investors section.

Conference Call, Webcast and Replay Information

We will host a webcast conference call at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) on Thursday, February 11, 2021, to discuss our fourth quarter and full year 2020 financial results and business outlook. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Events & Presentations” of the Investors page. The live broadcast can also be accessed by dialing 800-367-2403 in the U.S. and Canada, including the confirmation passcode 3061661. The conference call will be archived on our website following the completion of the call. In addition, there will be a telephonic replay available beginning at 1:00 p.m. central time (2:00 p.m. eastern time) on February 11, 2021, through 1:00 p.m. central time (2:00 p.m. eastern time) on February 19, 2021. To access the telephonic replay, dial 888-203-1112 in the U.S. and Canada. International callers may dial +1 719-457-0820 and enter passcode 3061661.

About CoreCivic

The Company is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.

Forward-Looking Statements

This press release contains statements as to our beliefs and expectations of the outcome of future events that are “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) changes in government policy (including the DOJ not renewing contracts as a result of the EO), legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services, in general, or our business, in particular, including, but not limited to, the continued utilization of our correctional and detention facilities by the federal government, and the impact of any changes to immigration reform and sentencing laws (our company does not, under longstanding policy, lobby for or against policies or legislation that would determine the basis for, or duration of, an individual’s incarceration or detention); (ii) our ability to obtain and maintain correctional, detention, and residential reentry facility management contracts because of reasons including, but not limited to, sufficient governmental appropriations, contract compliance, negative publicity and effects of inmate disturbances; (iii) changes in the privatization of the corrections and detention industry, the acceptance of our services, the timing of the opening of new facilities and the commencement of new management contracts (including the extent and pace at which new contracts are utilized), as well as our ability to utilize available beds; (iv) general economic and market conditions, including, but not limited to, the impact governmental budgets can have on our contract renewals and renegotiations, per diem rates, and occupancy; (v) fluctuations in our operating results because of, among other things, changes in occupancy levels, competition, contract renegotiations or terminations, increases in costs of operations, fluctuations in interest rates and risks of operations; (vi) the duration of the federal government’s denial of entry at the United States southern border to asylum-seekers and anyone crossing the southern border without proper documentation or authority in an effort to contain the spread of COVID-19; (vii) government and staff responses to staff or residents testing positive for COVID-19 within public and private correctional, detention and reentry facilities, including the facilities we operate; (viii) the location and duration of shelter in place orders and other restrictions associated with COVID-19 that disrupt the criminal justice system, along with government policies on prosecutions and newly ordered legal restrictions that affect the number of people placed in correctional, detention, and reentry facilities; (ix) whether revoking our REIT election, effective January 1, 2021, and our revised capital allocation strategy can be implemented in a cost effective manner that provides the expected benefits, including facilitating our planned debt reduction initiative and planned return of capital to shareholders; (x) our ability to identify and consummate the sale of additional non-core assets at attractive prices; (xi) our ability to successfully identify and consummate future development and acquisition opportunities and our ability to successfully integrate the operations of our completed acquisitions and realize projected returns resulting therefrom; (xii) increases in costs to develop or expand real estate properties that exceed original estimates, or the inability to complete such projects on schedule as a result of various factors, many of which are beyond our control, such as the effects of, and delays caused by, COVID-19, weather, the availability of labor and materials, labor conditions, delays in obtaining legal approvals, unforeseen engineering, archeological or environmental problems, and cost inflation, resulting in increased construction costs; (xiii) our ability to identify and initiate service opportunities that were unavailable under our former REIT structure; (xiv) our ability to have met and maintained qualification for taxation as a REIT for the years we elected REIT status; and (xv) the availability of debt and equity financing on terms that are favorable to us, or at all. Other factors that could cause operating and financial results to differ are described in the filings we make from time to time with the Securities and Exchange Commission.

CoreCivic takes no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services.

Contact:

Investors: Cameron Hopewell
Managing Director, Investor Relations
(615) 263-3024

Financial Media: David Gutierrez
Dresner Corporate Services
(312) 780-7204

SOURCE: CoreCivic

Release – CoreCivic (CXW) – Reports Fourth Quarter and Full Year 2020 Results

Posted on by Admin

 


CoreCivic Reports Fourth Quarter and Full Year 2020 Results

 

BRENTWOOD, Tenn. – February 10, 2021 – CoreCivic, Inc. (NYSE: CXW) (the Company) announced today its financial results for the fourth quarter and full year 2020.

Financial Highlights – Full Year 2020

  • Total revenue of $1.91 billion
    • CoreCivic Safety revenue of $1.71 billion
    • CoreCivic Community revenue of $106.0 million
    • CoreCivic Properties revenue of $93.1 million
  • Net income attributable to common stockholders of $54.2 million
  • Diluted EPS per share of $0.45
  • Adjusted diluted EPS of $1.32
  • Normalized FFO per diluted share of $2.25
  • Adjusted EBITDA of $404.8 million
  • Non-cash impairment charges of $60.6 million

Damon T. Hininger, CoreCivic’s President and Chief Executive Officer, said, “While 2020 was an unprecedented and unpredictable year, we once again displayed the value of the mission-critical solutions we provide to our government partners and the durability of our cash flows. For the full year, we generated Normalized FFO per share of $2.25, only 4% below the mid-point of our guidance of $2.35 announced in February 2020, before the COVID-19 pandemic. In the fourth quarter we continued our capital allocation strategy of debt reduction by repaying more than $125 million in long-term debt, net of the change in cash, due to our strong operating cash flows and net proceeds provided by our recently announced sale of non-core government-leased real estate assets. We currently expect the sale of additional non-core assets, when combined with the sale completed in the fourth quarter of 2020, will result in aggregate net cash proceeds consistent with our original estimate of up to $150 million.

“Our achievements are only possible thanks to our dedicated professionals who continue to be on the front lines of the COVID-19 pandemic. Their dedication and diligence have been essential to meeting the needs of our government partners through a difficult period of time, and we continue to work tirelessly to protect our employees and the individuals in our care,” added Hininger.

CoreCivic is dedicated to helping those in its care be successful in their next step in life. Every day, CoreCivic’s chaplains, counselors and instructors help nearly 1,500 inmates learn the life and vocational skills they need to find and keep employment once released. Every year, its dedicated teachers help more than 1,500 inmates earn a GED, which research shows makes them 30% less likely to return to prison after they’re released. CoreCivic helps its government partners solve some of their toughest challenges by providing flexibility to manage constantly changing needs and populations and delivering on proven reentry programs that fight recidivism and change lives.

Financial Highlights – Fourth Quarter 2020

  • Total revenue of $473.5 million
    • CoreCivic Safety revenue of $424.3 million/li>
    • CoreCivic Community revenue of $25.3 million
    • CoreCivic Properties revenue of $23.8 million
  • Net loss attributable to common stockholders of $26.8 million
  • Diluted loss per share of $0.22
  • Adjusted diluted EPS of $0.40
  • Normalized FFO per diluted share of $0.63
  • Adjusted EBITDA of $108.7 million
  • Non-cash impairment charges of $47.6 million

Fourth Quarter 2020 Financial Results Compared With Fourth Quarter 2019

Net loss attributable to common stockholders in the fourth quarter of 2020 totaled $26.8 million, or $0.22 per diluted share, and was driven by $75.6 million, or $0.62 per share, of special items, compared with net income attributable to common stockholders generated in the fourth quarter of 2019 of $42.0 million, or $0.35 per diluted share. Adjusted for special items, net income in the fourth quarter of 2020 was $48.8 million, or $0.40 per diluted share (Adjusted Diluted EPS), compared with adjusted net income in the fourth quarter of 2019 of $42.8 million, or $0.36 per diluted share, a per share increase of 11.1%. Special items in the fourth quarter of 2020 included primarily $47.6 million in asset impairments, $7.1 million in expenses associated with debt repayments and refinancing transactions, $2.8 million in expenses associated with COVID-19, and $17.9 million in loss on sale of real estate assets. Special items in the fourth quarter of 2019 included $0.6 million in expenses associated with debt repayments and refinancing transactions and $0.2 million of expenses associated with mergers and acquisitions.

Funds From Operations (FFO) was $22.8 million, or $0.19 per diluted share, in the fourth quarter of 2020, compared to $69.0 million, or $0.58 per diluted share, in the fourth quarter of 2019. Normalized FFO, which excludes the special items described above, was $76.3 million, or $0.63 per diluted share, in the fourth quarter of 2020, compared with $69.8 million, or $0.59 per diluted share, in the fourth quarter of 2019, an increase in Normalized FFO per share of 6.8%.

EBITDA was $33.0 million in the fourth quarter of 2020, compared with $102.7 million in the fourth quarter of 2019. Adjusted EBITDA was $108.7 million in the fourth quarter of 2020, compared with $103.5 million in the fourth quarter of 2019, an increase of 5.0%. Adjusted EBITDA excludes the special items described above.

Adjusted financial results in the fourth quarter of 2020, compared with the fourth quarter of 2019, improved primarily because of incremental utilization under new contracts executed in 2019 and 2020 with (i) Immigration and Customs Enforcement (ICE) to activate our previously idle 910-bed Torrance County Detention Facility in New Mexico, (ii) ICE to utilize capacity at our 3,060-bed La Palma Correctional Center in Arizona, (iii) the U.S. Marshals Service (USMS) to utilize capacity at our 1,600-bed Cimarron Correctional Facility in Oklahoma, (iv) the states of Mississippi and Idaho to utilize available capacity at our 2,672-bed Tallahatchie County Correctional Facility in Mississippi and our 1,896-bed Saguaro Correctional Facility in Arizona. Financial results were also favorably impacted by lower general and administrative expenses in the fourth quarter of 2020 due to a reduction in incentive compensation.

The improved financial results were partially offset by lower utilization of our existing contracts with ICE and modest utilization declines across many of our state-level contracts due to the ongoing impact of COVID-19.

Balance Sheet and Liquidity as of December 31, 2020

As of December 31, 2020, cash on hand was $113.2 million, with an additional $566.2 million available under our revolving credit facility. Cash from operations and net proceeds from the sale of a portfolio of government-leased properties enabled us to repay $127.7 million of total debt during the fourth quarter of 2020, net of the change in cash and cash equivalents, increasing our financial flexibility. We have no material capital commitments, and no debt maturities until October 2022, when $250.0 million of 5.0% unsecured notes matures. We currently expect to repay these notes upon maturity with existing resources.

Recent Developments

On January 26, 2021, President Biden issued the Executive Order (EO) on Reforming Our Incarceration System to Eliminate the Use of Privately Operated Criminal Detention Facilities. The EO directs the Attorney General to not renew Department of Justice (DOJ) contracts with privately operated criminal detention facilities. Two agencies of the DOJ, the BOP and the USMS, utilize our services. The BOP houses inmates who have been convicted, and the USMS is generally responsible for detainees who are awaiting trial. The BOP has experienced a steady decline in inmate populations over the last seven years, a trend that has been accelerated by the COVID-19 pandemic. CoreCivic has one prison contract with the BOP, accounting for 2% of its total revenue for the year ended December 31, 2020, which was recently renewed through November 2022.

Commenting on the EO, Damon Hininger stated, “With nearly 70,000 fewer individuals in their system since its peak in 2013, the BOP’s need for prison capacity from the private sector has been reduced substantially. We are extremely proud of the critically important services we have provided to the BOP during their period of need extending for more than 20 years. Providing government agencies flexibility to manage fluctuations in their populations is one of the most important ways we provide value.” Hininger concluded, “We believe that our work is in alignment with the administration’s goals on equity. Our most recent ESG report shows we’re making real, measurable progress on our goals to expand proven reentry programs to fight recidivism and change lives – programs that help those in our care develop to their fullest potential and find success in their next step in life.”

Unlike the BOP, the USMS, does not own detention capacity and relies on the private sector, along with county jails, for their detainee population. We do not believe the USMS currently has sufficient detention capacity that satisfies their need without the private sector, and we are not currently aware of an alternative solution for the USMS. CoreCivic currently has eight detention facilities that have separate contracts where the USMS is the primary customer that all expire at various times over the next several years, with the exception of two contracts that have indefinite terms. For the year ended December 31, 2020, the USMS accounted for 21% of our total revenue.

Business Development Update

New Contract Award for the Development and Lease of Two Correctional Facilities for the State of Alabama. On February 1, 2021, we were awarded two new 30-year lease agreements with the Alabama Department of Corrections (ADOC) for the development of two correctional facilities, to be operated by the ADOC. Final lease costs for both properties will become available when project financing is completed. The two facilities will be the largest development projects in the Company’s history. We expect to finance 10%-15% of the project costs with existing resources, with the balance financed with non-recourse, project specific debt. Construction of both facilities, which will contain an aggregate of approximately 7,000 beds, is expected to commence later this year or the beginning of 2022. The two facilities are expected to be ready for occupancy once construction is completed in approximately three years. Both facilities will be leased, operated and staffed by the ADOC. CoreCivic will retain ownership and be responsible for facility maintenance throughout the term of the leases.

Commencement of New Management Contract with the Federal Bureau of Prisons for Reentry Services. On October 1, 2020, we were awarded a new contract by the Federal Bureau of Prisons for residential reentry and home confinement services at our 289-bed Turley Residential Center in Tulsa, Oklahoma and our 494-bed Oklahoma Reentry Opportunity Center in Oklahoma City, Oklahoma. As a result, we have recently reactivated the Turley Residential Center and began accepting residents at the facility and at the Oklahoma Reentry Opportunity Center under the new contract in February 2021. This contract supplements the existing contract with the state of Oklahoma at the Oklahoma Reentry Opportunity Center.

Sale of 42 Property Portfolio of Non-Core Government-Leased Properties. On December 23, 2020, we completed the sale of 42 non-core government-leased properties in a single transaction to a third party for an aggregate price of $106.5 million, generating net proceeds of $27.8 million after the repayment of non-recourse mortgage notes associated with some of the properties and other transaction-related costs. After considering tax protection payments required to be paid to the contributing partners of our wholly-owned subsidiary, Government Real Estate Solutions, LLC (GRES) in connection with the sale, we reported a net loss on this sale of $17.9 million. In connection with the sale, we also incurred a net debt defeasance charge of $7.1 million associated with the prepayment of the non-recourse mortgage notes. We intend to dissolve GRES in 2021, and currently expect to report a gain upon dissolution of the partnership reflected as an increase to stockholders’ equity of $15.0 million to $20.0 million, assuming we take no further actions that impact the partnership.

Assets Held for Sale. As of December 31, 2020, we had three additional non-core real estate assets held for sale with a net book value of $279.4 million. Although we can provide no assurance, based on interest expressed to-date, we are hopeful to consummate the sale of these assets during the first half of 2021. If we are successful in consummating the sale of these assets, combined with the sale completed in the fourth quarter of 2020, we expect the net proceeds from our sale of non-core assets will be consistent with our original estimate of up to $150 million.

Goodwill Impairment of Community Segment. In connection with our annual impairment test for the goodwill associated with the Community reporting unit, during the fourth quarter of 2020, we performed a quantitative goodwill impairment test and concluded to record an impairment charge of $42.6 million, representing the full value of goodwill allocated to this reporting unit. Our analysis considered numerous factors, with the impairment predominantly driven by our consideration of the broad-based declines in the market capitalization of publicly-traded companies in our industry, primarily during the second half of 2020, which is an indicator of fair value under ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment”. Our analysis also considered the reduction in cash flows from the COVID-19 pandemic and the anticipated change in tax structure effective January 1, 2021. We believe the cash flows in this segment will improve once effects of the pandemic subside, and remain committed to this segment, which focuses on helping those entrusted to our care obtain employment and successfully reintegrate into their communities. This segment serves a critical need to parolees, defendants, and offenders who are serving their full sentence, the last portion of their sentence, waiting to be sentenced, awaiting trial while supervised in a community environment, or as an alternative to incarceration.

Financial Guidance

At this time we are not providing 2021 financial guidance because of uncertainties associated with COVID-19, as well as uncertainties associated with the application of the administration’s various executive orders related to immigration and criminal justice. We do not expect to provide financial guidance until we have further clarity around these uncertainties. Our business is very durable, and continues to generate cash flow even during these unprecedented disruptions to the economy and criminal justice system. This resiliency is due to the essential nature of our facilities and services in our Safety and Community segments, further enhanced by the diversification and stability of our Properties segment, all supported by payments from highly rated federal, state, and local government agencies.

Supplemental Financial Information and Investor Presentations

We have made available on our website supplemental financial information and other data for the fourth quarter of 2020. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Financial Information” of the Investors section. We do not undertake any obligation, and disclaim any duties to update any of the information disclosed in this report.

Management may meet with investors from time to time during the first quarter of 2021. Written materials used in the investor presentations will also be available on our website beginning on or about March 1, 2021. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Events & Presentations” of the Investors section.

Conference Call, Webcast and Replay Information

We will host a webcast conference call at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) on Thursday, February 11, 2021, to discuss our fourth quarter and full year 2020 financial results and business outlook. Interested parties may access this information through our website at http://ir.corecivic.com/ under “Events & Presentations” of the Investors page. The live broadcast can also be accessed by dialing 800-367-2403 in the U.S. and Canada, including the confirmation passcode 3061661. The conference call will be archived on our website following the completion of the call. In addition, there will be a telephonic replay available beginning at 1:00 p.m. central time (2:00 p.m. eastern time) on February 11, 2021, through 1:00 p.m. central time (2:00 p.m. eastern time) on February 19, 2021. To access the telephonic replay, dial 888-203-1112 in the U.S. and Canada. International callers may dial +1 719-457-0820 and enter passcode 3061661.

About CoreCivic

The Company is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.

Forward-Looking Statements

This press release contains statements as to our beliefs and expectations of the outcome of future events that are “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) changes in government policy (including the DOJ not renewing contracts as a result of the EO), legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services, in general, or our business, in particular, including, but not limited to, the continued utilization of our correctional and detention facilities by the federal government, and the impact of any changes to immigration reform and sentencing laws (our company does not, under longstanding policy, lobby for or against policies or legislation that would determine the basis for, or duration of, an individual’s incarceration or detention); (ii) our ability to obtain and maintain correctional, detention, and residential reentry facility management contracts because of reasons including, but not limited to, sufficient governmental appropriations, contract compliance, negative publicity and effects of inmate disturbances; (iii) changes in the privatization of the corrections and detention industry, the acceptance of our services, the timing of the opening of new facilities and the commencement of new management contracts (including the extent and pace at which new contracts are utilized), as well as our ability to utilize available beds; (iv) general economic and market conditions, including, but not limited to, the impact governmental budgets can have on our contract renewals and renegotiations, per diem rates, and occupancy; (v) fluctuations in our operating results because of, among other things, changes in occupancy levels, competition, contract renegotiations or terminations, increases in costs of operations, fluctuations in interest rates and risks of operations; (vi) the duration of the federal government’s denial of entry at the United States southern border to asylum-seekers and anyone crossing the southern border without proper documentation or authority in an effort to contain the spread of COVID-19; (vii) government and staff responses to staff or residents testing positive for COVID-19 within public and private correctional, detention and reentry facilities, including the facilities we operate; (viii) the location and duration of shelter in place orders and other restrictions associated with COVID-19 that disrupt the criminal justice system, along with government policies on prosecutions and newly ordered legal restrictions that affect the number of people placed in correctional, detention, and reentry facilities; (ix) whether revoking our REIT election, effective January 1, 2021, and our revised capital allocation strategy can be implemented in a cost effective manner that provides the expected benefits, including facilitating our planned debt reduction initiative and planned return of capital to shareholders; (x) our ability to identify and consummate the sale of additional non-core assets at attractive prices; (xi) our ability to successfully identify and consummate future development and acquisition opportunities and our ability to successfully integrate the operations of our completed acquisitions and realize projected returns resulting therefrom; (xii) increases in costs to develop or expand real estate properties that exceed original estimates, or the inability to complete such projects on schedule as a result of various factors, many of which are beyond our control, such as the effects of, and delays caused by, COVID-19, weather, the availability of labor and materials, labor conditions, delays in obtaining legal approvals, unforeseen engineering, archeological or environmental problems, and cost inflation, resulting in increased construction costs; (xiii) our ability to identify and initiate service opportunities that were unavailable under our former REIT structure; (xiv) our ability to have met and maintained qualification for taxation as a REIT for the years we elected REIT status; and (xv) the availability of debt and equity financing on terms that are favorable to us, or at all. Other factors that could cause operating and financial results to differ are described in the filings we make from time to time with the Securities and Exchange Commission.

CoreCivic takes no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services.

Contact:

Investors: Cameron Hopewell
Managing Director, Investor Relations
(615) 263-3024

Financial Media: David Gutierrez
Dresner Corporate Services
(312) 780-7204

SOURCE: CoreCivic

Money Supply Drives Stock Market Performance

Posted on by Admin

 


Money Supply is Like Caffeine for Stocks

 

The growth of money supply over the past year is beyond comparison to any other point in history. Change in money in circulation has a fairly predictable impact on many areas of the economy. When it grows above the pace of the economy it impacts prices. This includes asset prices such as stocks and real estate. The impact on financial assets that provide income such as bonds is most often negative. Investors should be well-versed on the impact increased money in the economy has on investments.

Money Supply

“Money Supply” refers to the amount of money in circulation. This could include everything from physical currency, the amount of unused revolving credit, and short-term deposits such as checking and longer-term deposits in CDs. Money supply in effect is a measure of the purchasing power of a population. The economic law of supply and demand, says, the higher the money supply (easy money), the more difficult it is for the currency to retain its value. When any currency loses its value, it takes more of it to buy goods, services, even investments. The number of dollars it takes to buy something is inflated.

The growth can be shown to be directly correlated to increases in stock market valuation. When there is a greater amount of money available, there is more money to be put in stocks. Anecdotally, we saw an impact on stock prices each time a new stimulus check was approved (forward-looking investors) and again after they hit people’s accounts. The reason is basic; more money in circulation, with a roughly unchanged supply of equity to be owned, results in pushing the value of the equity up.

In the past year, money supply as measured by the widely quoted M2 data (cash, checking deposits, and easily convertible “near money”) are striking. As a reference, the money supply surge in 2020 exceeded any in the one-and-a-half centuries for which there is data. Between March and November, the measure of M2, jumped 24%. The steep rise has flattened a bit, but growth remains rampant into 2021.

Inflation

As prices move up (inflation), investors demand a higher return on their investments to make up for the erosion in purchasing power of their money. They reduce their investments in interest-bearing securities such as bonds until the yield reaches their future inflation expectations, plus some additional level of protection. Bond investors are particularly cautious because higher interest rates reduce the value of their comparatively lower yielding portfolio. This disincentive to invest in bonds, or lend in other ways, motivates more people to move more money into stocks. The trend that occurs with investors moving out of bonds and chasing superior equity returns, can become self-fulfilling. The more stocks rise and bonds fall, the more investors allocate their portfolio to include more equities. They are chasing return and it may snowball for them.

Stock Prices

Visually, the trend in Money Supply growth is shown below to coincide with the trend in stock market returns. As more activity and money flows into a market, that market naturally has a positive upward trend. Because of this, market analysts keep an eye on big changes in money as an indicator of the way the stock market will behave in the near future.

 

Money Supply (M2) Trend compared to Stocks (Nasdaq 100) trend since 2016. M2 has a smooth line as money in circulation has few bumps or dips. The trajectory over most time periods is mostly equivalent.

Take-Away

The growth trend of the overall ability to spend throughout the economy has been growing at rates not seen since the 1970s. That decade was known for its struggle to tame price increases. The annual inflation rate (CPI-U) measured in December 2020 was 1.4%. During the year inflation reached a high of 2.5%, in January and a low of 0.1 in May. The Fed forecasts a 2% CPI-U growth rate for 2021. Their open market operations, which include buying bonds and bond ETFs are ongoing. This injects money, directly into the system, and into the hands of investors (sellers). There are many factors impacting stock prices, this is one of those factors that is positive for equities.

About the Author:

Laila Jiwani is a freelance writer specializing in topics related to social finance and international economic trends. Currently based in Dallas, Texas, she is an Erasmus Mundus Joint Master’s Graduate and has worked for economic development organizations in the U.S., Morocco, Kenya, Pakistan and Kyrgyzstan.

 

Suggested Reading:

What Stocks do you Buy When the Dollar Goes Down?

Financial Markets Lifted Household Wealth to Record Levels

Expect 500,000 Fewer Births in 2021

 

Sources:

U.S. Inflation – CPI

Higher Inflation is Coming and it Will Hit Bondholders

 

 

Neovasc (NVCN)(NVCN:CA) – Complied with Nasdaq Minimum Bid Price Requirement

Posted on by Admin

Wednesday, February 10, 2021

Neovasc (NVCN)(NVCN:CA)
Complied with Nasdaq Minimum Bid Price Requirement

As of April 24, 2020, Noble Capital Markets research on Neovasc is published under ticker symbols (NVCN and NVCN:CA). The price target is in USD and based on ticker symbol NVCN. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Neovasc Inc is a specialty medical device company. The company develops, manufactures and markets products for the rapidly growing cardiovascular marketplace. Its products include the Tiara for the transcatheter treatment of mitral valve disease and the Neovasc Reducer for the treatment of refractory angina. Neovasc is developing the Tiara for the treatment of mitral valve disease. Neovasc operates its business in one segment.

Ahu Demir, Ph. D., Biotechnology Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Regained compliance with the minimum bid price. Neovasc regained compliance with Nasdaq with the minimum bid price requirement and will continue listing on Nasdaq. The shares gained 55% attributed to this news. The company is still required to maintain the minimum market value of US$35 million by June 8, 2021, to continue its listing.

    Reducer Germany reimbursement is renewed.  New examination and treatment methods (NUBs) Status 1 was renewed for 2021 under the German healthcare system. As Reducer is currently CE-marked in the European Union for the treatment of refractory angina, this highest priority designation is renewed every year and open doors to full reimbursement coverage for Reducer therapy …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.