Tuesday, November 09, 2021
CoreCivic, Inc. (CXW)
A Debt Paydown Machine
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.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Hits Leverage Ratio Early. At quarter’s end, the leverage ratio was 2.7x, at the top end of the Company’s 2.25-2.75x goal, down from 3.2x at the end of 2Q21 and down from 4.0x at the end of 3Q20. The target was achieved roughly nine months sooner than we had expected highlighting not only management’s focus on reducing net debt, but the overall resiliency of the business model.
Debt Reduction. CoreCivic repaid $187.5 million of debt in 3Q21, net of the change in cash, including fully paying off its revolving credit facility, which remains undrawn. Subsequent to quarter’s end, the Company paid down $90 million, or 40%, of its Term B loan using cash on hand. CoreCivic ended the quarter with $455.5 million of cash …
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.