Release – Entravision Communications Corporation Reports First Quarter 2022 Results

Posted on May 5, 2022 by Admin

Entravision Communications Corporation Reports First Quarter 2022 Results

Research, News, and Market Data on Entravision

SANTA MONICA, Calif.–(BUSINESS WIRE)– Entravision Communications Corporation (NYSE: EVC), a leading global advertising solutions, media and technology company, today announced financial results for the three-month period ended March 31, 2022.

First Quarter 2022 Highlights

All-time first quarter record revenue, EBITDA and free cash flow
Net revenue up 32% over the prior-year quarter
Net income attributable to common stockholders down 65% over the prior-year quarter
Consolidated adjusted EBITDA up 28% over the prior-year quarter
Operating cash flow up 127% over the prior-year quarter
Free cash flow up 10% over the prior-year quarter
Quarterly cash dividend of $0.025 per share
Repurchased $7.1 million in shares under the Company’s $20 million share repurchase program
Post quarter entered into a definitive agreement to make an investment in Jack of Digital

“Entravision begins 2022 on very solid footing, with net revenue for the first quarter totaling $197.2 million, up 32% year-over year. Adjusted EBITDA also improved to total $18.1 million, an increase of 28% over the prior-year period,” said Walter Ulloa, Chairman and Chief Executive Officer. “Importantly, even as our top line continues to grow, we have maintained a lean, efficient cost structure, helping to drive our cash flow as well as our ability to provide consistent returns to our shareholders.”

Mr. Ulloa continued, “Our strength during the first quarter was largely driven by revenue growth of 51% in our digital segment, which comprised 78% of consolidated revenue. Our broadcast businesses, and, in particular, audio, helped drive our strong margins and cash flow. Simultaneously, our strategic expansion of our commercial partnerships with some of the world’s leading technology platforms has positioned us at the forefront of digital innovation across emerging economies, including Latin America, Southeast Asia, Africa, and Pakistan when we complete our investment in Jack of Digital. We are excited about the enormous opportunities that lie in front of us and look forward to sharing our progress throughout the year.”

Quarterly Cash Dividend

The Company announced today that its Board of Directors approved a quarterly cash dividend to shareholders of $0.025 per share on the Company’s Class A, Class B and Class U common stock, in an aggregate amount of approximately $2.1 million. The quarterly dividend will be payable on June 30, 2022 to shareholders of record as of the close of business on June 16, 2022, and the common stock will trade ex-dividend on June 15, 2022. The Company currently anticipates that future cash dividends will be paid on a quarterly basis; however, any decision to pay future cash dividends will be subject to approval by the Board.

Share Repurchase Program

On March 1, 2022, the Board of Directors approved the repurchase of up to $20 million of the Company’s common stock. Under this share repurchase program, the Company is authorized to purchase shares from time to time through open market purchases or negotiated purchases, subject to market conditions and other factors. On the same date, the Board terminated the Company’s previous share repurchase program of the Company’s common stock. During the first quarter the Company repurchased $7.1 million of its Class A common stock.

Investment in Jack of Digital

As previously announced, the Company has entered into a definitive agreement to acquire a strategic stake in Jack of Digital, a digital marketing services company that serves as the exclusive advertising sales partner of TikTok in Pakistan. Subject to regulatory approvals and other pre-closing conditions, the Company anticipates that the investment will be completed during the second quarter of 2022. With this investment, the Company enhances its presence in South Asia.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure is included beginning on page 9.

Unaudited Financial Highlights (In thousands, except share and per
share data)

	Three-Month Period
	Ended March 31,
	2022			2021			% Change
Net revenue	$	197,172		$	148,880			32	%
Cost of revenue – digital (1)		129,891			84,756			53	%
Operating expenses (2)		43,862			40,414			9	%
Corporate expenses (3)		8,724			7,158			22	%
Foreign currency (gain) loss		(847	)		586		*

Consolidated adjusted EBITDA (4)		18,113			14,195			28	%

Free cash flow (5)	$	14,327		$	13,029			10	%

Net income (loss)	$	1,887		$	7,002			(73	)%
Net (income) loss attributable to redeemable noncontrolling interest	$	–		$	(1,573	)	*
Net income (loss) attributable to common stockholders	$	1,887		$	5,429			(65	)%

Net income (loss) per share attributable to common stockholders, basic and diluted	$	0.02		$	0.06			(67	)%
Weighted average common shares outstanding, basic		86,522,378			85,041,628
Weighted average common shares outstanding, diluted		88,630,216			86,986,581
(1)	Consists primarily of the costs of online media acquired from third-party publishers. Media cost is classified as cost of revenue in the period in which the corresponding revenue is recognized.
(2)	Operating expenses include direct operating and selling, general and administrative expenses. Included in operating expenses are $1.0 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended March 31, 2022 and 2021, respectively.
(3)	Corporate expenses include $1.6 million and $0.8 million of non-cash stock-based compensation for the three-month periods ended March 31, 2022 and 2021, respectively.
(4)	Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other operating gain (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from the Federal Communications Commission, or FCC, spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings. We use the term consolidated adjusted EBITDA because that measure is defined in the agreement governing our current credit facility (“the 2017 Credit Facility”) and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses, syndication programming amortization less syndication programming payments, revenue from FCC spectrum incentive auction less related expenses, expenses associated with investments, EBITDA attributable to redeemable noncontrolling interest, acquisitions and dispositions and certain pro-forma cost savings.
(5)	Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and non-recurring cash expenses plus dividend income, and other operating gain (loss). Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, and less interest income.

Unaudited Financial Results (In thousands)

	Three-Month Period
	Ended March 31,
	2022			2021			% Change
Net revenue	$	197,172		$	148,880			32	%
Cost of revenue – digital (1)		129,891			84,756			53	%
Operating expenses (1)		43,862			40,414			9	%
Corporate expenses (1)		8,724			7,158			22	%
Depreciation and amortization		6,395			5,184			23	%
Change in fair value of contingent consideration		5,100			–		*
Impairment charge		–			1,326			(100	)%
Foreign currency (gain) loss		(847	)		586		*
Other operating (gain) loss		(119	)		(1,913	)		(94	)%

Operating income (loss)		4,166			11,369			(63	)%
Interest expense, net		(1,430	)		(1,577	)		(9	)%
Dividend income		3			2			50	%

Income (loss) before income taxes		2,739			9,794			(72	)%
Income tax benefit (expense)		(852	)		(2,792	)		(69	)%

Net income (loss)		1,887			7,002			(73	)%
Net (income) loss attributable to redeemable noncontrolling interest		–			(1,573	)	*
Net income (loss) attributable to common stockholders	$	1,887		$	5,429			(65	)%
(1)	Cost of revenue, operating expenses and corporate expenses are defined on page 2.

Net revenue in the first quarter of 2022 totaled $197.2 million, up 32% from $148.9 million in the prior-year period. Of the overall increase, approximately $52.2 million was attributable to our digital segment and was primarily due to advertising revenue growth from our digital commercial partnerships business and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not contribute to net revenue in the comparable period ended March 31, 2021. In addition, of the overall increase, approximately $1.3 million was attributable to our audio segment primarily due to increases in local advertising revenue and political advertising revenue. The overall increase was partially offset by a decrease of approximately $5.2 million attributable to our television segment, primarily due to decreases in local and national advertising revenue, which was mainly attributed to the expiration of our Univision and UniMás network affiliation agreements in Orlando, Tampa and Washington, D.C. on December 31, 2021. Additionally, the decrease in our television segment was attributed to a decrease in revenue from spectrum usage rights, and a decrease in retransmission consent revenue, partially offset by an increase in political advertising revenue.

Cost of revenue in the first quarter of 2022 totaled $129.9 million, up 53% from $84.8 million in the prior-year period. The increase was primarily due to increased costs of revenue related to advertising revenue growth from our digital commercial partnerships business, and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur cost of revenue for us in the comparable period ended March 31, 2021.

Operating expenses in the first quarter of 2022 totaled $43.9 million, up 9% from $40.4 million in the prior-year period. Of the overall increase, approximately $4.4 million was attributable to our digital segment and was primarily due to an increase in expenses associated with the increase in digital advertising revenue, an increase in salary expense and our acquisitions of MediaDonuts and 365 Digital during the third and fourth quarters of 2021, respectively, both of which did not incur operating expenses for us in the comparable period ended March 31, 2021. The overall increase was partially offset by a decrease of approximately $0.7 million that was attributable to our television segment primarily due to a decrease in expenses associated with the decrease in local and national advertising revenue, and a decrease of approximately $0.3 million that was attributable to our audio segment primarily due to a decrease in rating services expense.

Corporate expenses in the first quarter of 2022 totaled $8.7 million, up 22% from $7.2 million in the prior-year period. The increase was primarily due to increases in non-cash stock-based compensation, salaries, and audit fees.

Balance Sheet and Related Metrics

Cash and marketable securities as of March 31, 2022 totaled approximately $211.6 million. Total debt was $211.8 million. Net of $75 million of cash and marketable securities, total leverage as defined in the Company’s credit agreement was 1.5 times as of March 31, 2022. Net of total cash and marketable securities, total leverage was 0.0 times.

Unaudited Segment Results (In thousands)

	Three-Month Period
	Ended March 31,
	2022		2021		% Change
Net Revenue
Digital	$	153,711	$	101,482		51	%
Television		30,867		36,091		(14	)%
Audio		12,594		11,307		11	%
Total	$	197,172	$	148,880		32	%

Cost of Revenue – digital (1)
Digital	$	129,891	$	84,756		53	%

Operating Expenses (1)
Digital		15,235		10,850		40	%
Television		19,240		19,884		(3	)%
Audio		9,387		9,680		(3	)%
Total	$	43,862	$	40,414		9	%

Corporate Expenses (1)	$	8,724	$	7,158		22	%

Consolidated adjusted EBITDA (1)	$	18,113	$	14,195		28	%
(1)	Cost of revenue, operating expenses, corporate expenses, and consolidated adjusted EBITDA are defined on page 2.

Notice of Conference Call

Entravision Communications Corporation will hold a conference call to discuss its first quarter 2022 results on Thursday, May 5, 2022 at 5 p.m. Eastern Time. To access the conference call, please dial (877) 407-9716 (U.S.) or (201) 493-6779 (Int’l) ten minutes prior to the start time and reference Conference ID number 13728063. The call will also be available via live webcast on the investor relations portion of the Company’s website located at
www.entravision.com.

About Entravision Communications Corporation

Entravision is a leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Our dynamic portfolio includes digital, television and audio offerings. Digital, our largest revenue segment, is comprised of four business units: our digital sales representation business; Smadex, our programmatic ad purchasing platform; our branding and mobile performance solutions business; and our digital audio business. Through our digital sales representation business, we connect global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is our mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. We also offer a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and our digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 46 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about our offerings at entravision.com or connect with us on LinkedIn and Facebook.

Forward-Looking Statements

This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any forward-looking statements made by the Company. From time to time, these risks, uncertainties and other factors are discussed in the Company’s filings with the Securities and Exchange Commission.

(Financial Table Follows)

Entravision Communications Corporation
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)

	Three-Month Period
	Ended March 31,
	2022						2021
Net revenue	$		197,172				$		148,880

Expenses:
Cost of revenue – digital			129,891						84,756
Direct operating expenses			27,823						26,561
Selling, general and administrative expenses			16,039						13,853
Corporate expenses			8,724						7,158
Depreciation and amortization			6,395						5,184
Change in fair value of contingent consideration			5,100						–
Impairment charge			–						1,326
Foreign currency (gain) loss			(847		)				586
Other operating (gain) loss			(119		)				(1,913		)
			193,006						137,511
Operating income (loss)			4,166						11,369
Interest expense			(1,836		)				(1,717		)
Interest income			406						140
Dividend income			3						2
Income (loss) before income taxes			2,739						9,794
Income tax benefit (expense)			(852		)				(2,792		)

Net income (loss)			1,887						7,002
Net (income) loss attributable to redeemable noncontrolling interest			–						(1,573		)
Net income (loss) attributable to common stockholders	$		1,887				$		5,429

Basic and diluted earnings per share:
Net income (loss) per share attributable to common stockholders, basic and diluted	$		0.02				$		0.06

Cash dividends declared per common share, basic and diluted	$		0.03				$		0.03

Weighted average common shares outstanding, basic			86,522,378						85,041,628
Weighted average common shares outstanding, diluted			88,630,216						86,986,581
Entravision Communications Corporation
Consolidated Balance Sheets
(In thousands; unaudited)

		March 31,						December 31,
		2022						2021
ASSETS
Current assets
Cash and cash equivalents		$		126,574				$		185,094
Marketable securities				85,010						–
Restricted cash				749						749
Trade receivables, net of allowance for doubtful accounts				173,419						201,747
Assets held for sale				1,963						1,963
Prepaid expenses and other current assets				36,341						18,925
Total current assets				424,056						408,478
Property and equipment, net				60,174						62,498
Intangible assets subject to amortization, net				61,476						64,034
Intangible assets not subject to amortization				209,053						209,053
Goodwill				71,708						71,708
Deferred income taxes				1,462						1,462
Operating leases right of use asset				25,596						25,582
Other assets				8,084						8,527
Total assets		$		861,609				$		851,342


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt		$		4,947				$		4,903
Accounts payable and accrued expenses				222,610						212,655
Operating lease liabilities				6,808						7,304
Total current liabilities				234,365						224,862
Long-term debt, less current maturities, net of unamortized debt issuance costs				206,816						207,416
Long-term operating lease liabilities				21,505						20,988
Other long-term liabilities				79,076						72,930
Deferred income taxes				68,092						68,220
Total liabilities				609,854						594,416

Stockholders’ equity
Class A common stock				6						6
Class B common stock				2						2
Class U common stock				1						1
Additional paid-in capital				773,613						780,388
Accumulated deficit				(520,607		)				(522,494	)
Accumulated other comprehensive income (loss)				(1,260		)				(977	)
Total stockholders’ equity				251,755						256,926
Total liabilities and stockholders’ equity		$		861,609				$		851,342

Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands; unaudited)

		Three-Month Period
		Ended March 31,
		2022					2021
Cash flows from operating activities:
Net income (loss)		$	1,887				$	7,002
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			6,395					5,184
Impairment charge			—					1,326
Deferred income taxes			(359		)			2,987
Non-cash interest			280					139
Amortization of syndication contracts			116					119
Payments on syndication contracts			(118		)			(124		)
Non-cash stock-based compensation			2,573					1,071
(Gain) loss on disposal of property and equipment			(151		)			—
Change in fair value of contingent consideration			5,100					—
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			29,380					9,927
(Increase) decrease in prepaid expenses and other assets			(2,405		)			1,177
Increase (decrease) in accounts payable, accrued expenses and other liabilities			10,521					(5,356		)
Net cash provided by operating activities			53,219					23,452
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles			164					—
Purchases of property and equipment			(1,547		)			(1,838		)
Purchases of marketable securities			(85,517		)			—
Proceeds from marketable securities			—					12,120
Net cash provided by investing activities			(86,900		)			10,282
Cash flows from financing activities:
Proceeds from stock option exercises			218					—
Tax payments related to shares withheld for share-based compensation plans			(257		)			(9		)
Payments on long-term debt			(750		)			(750		)
Dividends paid			(2,167		)			(2,126		)
Repurchase of Class A common stock			(7,142		)			—
Payment of contingent consideration			(14,730		)			—
Principal payments under finance lease obligation			(10		)			—
Net cash used in financing activities			(24,838		)			(2,885		)
Effect of exchange rates on cash, cash equivalents and restricted cash			(1		)			(24		)
Net increase (decrease) in cash, cash equivalents and restricted cash			(58,520		)			30,825
Cash, cash equivalents and restricted cash:
Beginning			185,843					119,911
Ending		$	127,323				$	150,736
Entravision Communications Corporation
Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities
(In thousands; unaudited)

The most directly comparable GAAP financial measure is operating cash flow. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:

	Three-Month Period
	Ended March 31,
	2022					2021

Consolidated adjusted EBITDA (1)	$	18,113				$	14,195
EBITDA attributable to redeemable noncontrolling interest		–					2,837
Interest expense		(1,836		)			(1,717		)
Interest income		406					140
Dividend income		3					2
Income tax expense		(852		)			(2,792		)
Amortization of syndication contracts		(116		)			(119		)
Payments on syndication contracts		118					124
Non-cash stock-based compensation included in direct operating expenses		(958		)			(316		)
Non-cash stock-based compensation included in corporate expenses		(1,615		)			(755		)
Depreciation and amortization		(6,395		)			(5,184		)
Change in fair value of contingent consideration		(5,100		)			–
Impairment charge		–					(1,326		)
Other operating gain (loss)		119					1,913
Net (income) loss attributable to redeemable noncontrolling interest		–					(1,573		)
Net income (loss) attributable to common stockholders		1,887					5,429

Depreciation and amortization		6,395					5,184
Impairment charge		–					1,326
Deferred income taxes		(359		)			2,987
Non-cash interest		280					139
Amortization of syndication contracts		116					119
Payments on syndication contracts		(118		)			(124		)
Non-cash stock-based compensation		2,573					1,071
(Gain) loss on disposal of property and equipment		(151		)			–
Change in fair value of contingent consideration		5,100					–
Net income (loss) attributable to redeemable noncontrolling interest		–					1,573
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		29,380					9,927
(Increase) decrease in prepaid expenses and other assets		(2,405		)			1,177
Increase (decrease) in accounts payable, accrued expenses and other liabilities		10,521					(5,356		)
Cash flows from operating activities		53,219					23,452

(1)	Consolidated adjusted EBITDA is defined on page 2.
Entravision Communications Corporation
Reconciliation of Free Cash Flow to Cash Flows From Operating Activities
(In thousands; unaudited)

The most directly comparable GAAP financial measure is operating cash flow. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:

		Three-Month Period
		Ended March 31,
		2022			2021
Consolidated adjusted EBITDA (1)		$	18,113		$	14,195
Net interest expense (1)			(1,150	)		(1,438	)
Dividend income			3			2
Cash paid for income taxes			(1,211	)		195
Capital expenditures (2)			(1,547	)		(1,838	)
Other operating gain (loss)			119			1,913
Free cash flow (1)			14,327			13,029

Capital expenditures (2)			1,547			1,838
EBITDA attributable to redeemable noncontrolling interest			–			2,837
(Gain) loss on disposal of property and equipment			(151	)		–
Changes in assets and liabilities:
(Increase) decrease in accounts receivable			29,380			9,927
(Increase) decrease in prepaid expenses and other assets			(2,405	)		1,177
Increase (decrease) in accounts payable, accrued expenses and other liabilities			10,521			(5,356	)
Cash Flows From Operating Activities		$	53,219		$	23,452

(1)		Consolidated adjusted EBITDA, net interest expense, and free cash flow are defined on page 2.
(2)		Capital expenditures are not part of the consolidated statement of operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220503006391/en/

Christopher T. Young
Chief Financial Officer
Entravision Communications Corporation
310-447-3870

Kimberly Esterkin
ADDO Investor Relations
310-829-5400

evc@addo.com

Source: Entravision Communications Corporation

Kelly Services (KELYA) – Another Company Acquired

Posted on May 4, 2022 by Admin

Wednesday, May 04, 2022

Kelly Services (KELYA)
Another Company Acquired

Kelly (Nasdaq: KELYA, KELYB) connects talented people to companies in need of their skills in areas including Science, Engineering, Education, Office, Contact Center, Light Industrial, and more. We’re always thinking about what’s next in the evolving world of work, and we help people ditch the script on old ways of thinking and embrace the value of all workstyles in the workplace. We directly employ nearly 350,000 people around the world and connect thousands more with work through our global network of talent suppliers and partners in our outsourcing and consulting practice. Revenue in 2021 was $4.9 billion. Visit kellyservices.com and let us help with what’s next for you.

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.

A New Acquisition. Kelly’s management announced the acquisition of Pediatric Therapeutic Services (PTS), a firm that provides in-school therapy services involving occupational and physical, along with speech-language pathology and mental and behavioral health services. The terms of the acquisition were not disclosed.

Going Back to School. Management noted that the acquisition will be a part of the Kelly Education segment, and we believe that the acquisition will be additive to Kelly’s top-line revenue, as schools are having a return to in-person learning globally, and the Company is already seeing strong demand for their Education segment as of the fourth quarter of 2021.

…

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.

Comstock Mining (LODE) – Going All In

Posted on May 4, 2022 by Admin

Wednesday, May 04, 2022

Comstock Mining (LODE)
Going All In

Comstock (NYSE: LODE) innovates technologies that contribute to global decarbonization and circularity by efficiently converting under-utilized natural resources into renewable fuels and electrification products that contribute to balancing global uses and emissions of carbon. The Company intends to achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral extraction and refining facilities, by selling an array of complimentary process solutions and related services, and by licensing selected technologies to qualified strategic partners. To learn more, please visit www.comstock.inc.

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

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

Focusing on its mission. Comstock Mining hosted a webcast to discuss first quarter results and recent developments. The company is going all in on technologies that enable systemic decarbonization. Its renewable fuels division is advancing technologies to commercialize the conversion of woody biomass into advanced cellulosic fuels. Its lithium-ion battery (LIB) recycling business, LiNiCo, is commercializing a process to crush and separate lithium-ion batteries, extract lithium, nickel, cobalt, and graphite, and use the recovered metals to produce 99% pure cathode active precursor products.

Making significant headway. Comstock is currently building commercial pilot scale cellulosic fuels and LIB facilities, and the company is preparing to commence crushing and separating operations that will produce mineral-rich black mass at its 137,000 square foot LIB recycling facility later this year and deploy lithium extraction in the same facility next year. The company’s pilot scale cellulosic fuel system will also be operational at its Wisconsin facility later this year. Comstock has established a near-term goal to commission its first 100 million gallon biorefinery by 2025 and LiNiCo expects to produce marketable, battery-grade lithium carbonate by the end of the second quarter of 2023….

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

Exposure to Non-Travel Leisure Stocks

Posted on May 4, 2022 by Admin



Image Credit: Katheryn Mai (RCI Hospitality Holdings)

Where are Consumers Most Likely to Spend Their Leisure Budget?

Leisure stocks had a few false starts after the difficult time endured during the heart of the pandemic. While the group as a whole may have risen significantly since the initial lockdown-inspired sell-off, many leisure activities that keep people close to home are benefitting from completely lifted restrictions across the 50 states. World events being what they are, air travel, cruises, and business hotel stays are still not fully recovered. Rising costs of everything may also keep personal recreation to categories that don’t break the budget. This includes restaurants, theme parks, museums, and outings enjoyed by the whole family like bowling. It also could include doing something with friends designed for more for adult tastes.

Individual Stocks

Many of the investment articles written today conclude by pointing the reader toward an industry and then listing ETFs that are within that industry. On the one hand, an ETF adds diversification as the investor could gain exposure to over 100 different fund holdings. On the other hand, many sectors have subsectors that trade quite differently. As an investor, you may feel bullish about one or more subsectors, and not as enthusiastic about the others. An ETF, by design, could also expose you to subsectors you’re less than bullish toward. This is why many advisors and self-directed investors shun the ease of picking a fund and instead build their own portfolio. They can weight it more heavily toward their own market expectations. The changes to industries during the pandemic and now post-pandemic in many instances, make a solid case for stock selection over fund selection.

While at NobleCon18 in April, I attended two management presentations by public companies that fell solidly in the leisure, (play-at-home) category. Both caught my attention because they were financially strong with feasible plans for growth. They were both 100% open for business with little to suggest that this would change.

The first is the largest owner of family bowling outlets in the U.S., and the other owns sports bars and adult entertainment nightclubs. I knew very little about the inner workings of either business but found the presentation
by RCI Holdings (RICK), and the presentation
by Bowlero Corp. (BOWL) eye-opening in that these were not businesses that would have been on my investment radar. Yet, if one believes that consumers have a pent-up demand for leisure activities but they are less likely to travel, then each of these may continue to benefit as post-covid investments.

Source: Koyfin

Using the performance of ticker symbol $TNL as a proxy for travel and leisure, we find that while RICK, which represents a small sector of leisure began to climb relatively quickly in mid-summer 2020, it is now still trading at the level it was a year ago. The entire travel and leisure sector has also been trading sideways, but 270% lower than RICK, while the market overall has been pushing lower this year.

Eric Langan CEO of RCI Holdings gave the audience of investors a presentation on his company, (a video replay is available below). RICK is divided into two business units, Bombshells Sports Bar Restaurant, and their adult entertainment nightclubs that include such names as Rick’s Cabaret, and Scarlett’s.

The company is growing its hospitality, property development, finance, and free cash flow. In his presentation, Langan explains what they target for cash flow and how they put it to use to continue growing and producing higher cash flows.

Their nightclub sales were up 55% last year and according to the presentation, not all clubs were even open until the second half of 2021. One of the interesting nuances of the business is that there are barriers to entry in the adult entertainment world. Typically the owner has to be grandfathered at the state or local level as governments are typically hesitant to issue new licenses. This RICK in an ideal position to acquire existing clubs, with known track records to overlay their club management expertise and systems.

In the Sports Bar segment, the company owns the real estate, this helps in financing. The franchise Bombshells is approved in all 50 states. A restaurant build-out could cost $6 million or more — they are always looking for locations.

Source: Koyfin

Tom Shannon, CEO of Bowlero spoke about his company, (a video replay is available below). BOWL went public via SPAC in December 2021. He discussed how two-thirds of the revenue of their outlets has no cost of goods sold. The company controls 8% of the U.S. market share of bowling centers. He explained this opens ample opportunity to expand as most of the other 92% are mom and pop owned. BOWL can acquire them, give them a facelift and still be more efficient and profitable with their proprietary systems.

Bowlero also owns the Pro-Bowlers Association. While the PBA Tour adds $1 million to earnings, he says it saves them $10 million on marketing, as they get exposure and growing enthusiasm for bowling through the tour.

There are many other interesting aspects of this company that is best explained by the company, for a link to the video replay, scroll down to watch.

Take-Away

Over the past couple of years, there was the pandemic-related move toward stay-at-home tech, while hospitality, leisure, and travel were dead. There is now pent-up demand for leisure, those activities could include more stay-near home recreation as there are still reasons that individuals and businesses may keep travel plans to a minimum. For this reason, a pure leisure ETF would only provide a portion of the exposure to near-home recreation.

Reviewing stocks, reading the research on Channelchek, and reviewing company presentations could provide actionable ideas, not just in leisure, but in other investment sectors as well.

Paul Hoffman

Managing Editor, Channelchek

Suggested Content

RCI Hospitality Holdings (RICK) NobleCon18 Presentation Replay

Bowlero (BOWL) NobleCon18 Presentation Replay

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May’s Fed Meeting Concludes With No Surprises

Posted on May 4, 2022 by Admin



Image Credit: Federal Reserve (Flickr)

The FOMC Decision on Rates

The Federal Open Market Committee (FOMC) voted to raise overnight interest rates from a target of 0.25%-0.50% to the new level of 0.75%-1.00%. The monetary policy shift in bank lending rates was exactly as expected as Fed Chair Jerome Powell and other Committee members had been telegraphic the policy shift in advance of the two-day meeting. The early reaction from the bond market was almost lifeless as the UST 2-year and UST 10-year barely moved after the statement was released.

The statement accompanying the policy shift also included plans to shrink the Fed’s balance sheet. Once again, there was no surprise at the size of the reduction in bonds owned by the Fed. It will follow the exact schedule as outlined earlier. For Treasury securities, the cap of securities allowed to roll off the balance sheet will be set at $30 billion per month and, after three months, will increase to $60 billion per month. The decline in holdings of Treasury securities under this monthly cap will include Treasury coupon securities and, to the extent that coupon maturities are less than the monthly cap, Treasury bills.

For agency debt and agency mortgage-backed securities, the cap will initially be set at $17.5 billion per month beginning June 1, and after three months will increase to $35 billion per month.

Over time, the Committee intends to maintain securities holdings in amounts needed to implement monetary policy efficiently and effectively in its ample reserves regime.

The Committee also stated it is prepared to adjust any of the details of its approach to reducing the size of the balance sheet in light of economic and financial developments.

Take-Away

Higher interest rates can weigh on stocks as companies that rely on borrowing may find their cost of capital has increased. Additionally, investors that would prefer the “known” result of investing in the bond market or other interest rate products may pull assets out of stocks if they are attracted by the fixed income alternative. Investor money leaving the stock market reduces demand.

The next FOMC meeting is also a two-day meeting that takes place June14-15. If the pace of employment and overall economic activity is little changed, the Federal Reserve is expected to again raise interest rates.

Paul Hoffman

Managing Editor, Channelchek

Suggested Reading

What it Means When the Federal Reserve Bank Tightens Monetary Policy

Will Investors Rework their Positions in Response to Fed Statements?

Source

https://www.federalreserve.gov/newsevents/pressreleases.htm

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Blackboxstocks (BLBX) – E*Trade Integration and Mobile App Launch

Posted on May 4, 2022 by Admin

Wednesday, May 04, 2022

Blackboxstocks (BLBX)
E*Trade Integration and Mobile App Launch

Blackboxstocks, Inc. is a financial technology and social media hybrid platform offering real-time proprietary analytics and news for stock and options traders of all levels. Our web-based software employs “predictive technology” enhanced by artificial intelligence to find volatility and unusual market activity that may result in the rapid change in the price of a stock or option. Blackbox continuously scans the NASDAQ, New York Stock Exchange, CBOE, and all other options markets, analyzing over 10,000 stocks and up to 1,500,000 options contracts multiple times per second. We provide our users with a fully interactive social media platform that is integrated into our dashboard, enabling our users to exchange information and ideas quickly and efficiently through a common network. We recently introduced a live audio/video feature that allows our members to broadcast on their own channels to share trade strategies and market insight within the Blackbox community. Blackbox is a SaaS company with a growing base of users that spans 42 countries; current subscription fees are $99.97 per month or $959.00 annually. For more information, go to: www.blackboxstocks.com .

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.

A Busy Day. Blackboxstocks’ management recently announced the release of the Company’s native mobile app on the iOS and Android app stores, as well as the integration with E*TRADE with the Blackbox platform.

Mobile App Launch. The Company officially completed the development of the Blackbox app and released it on Apple and Android phones. Recall, the app utilizes most of the features of the desktop site (over 90% according to the Company) while also giving the user real time alerts on their device even when not actively using the app….

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

Investors May Find DiDi Untradeable After May

Posted on May 4, 2022 by Admin



Image Credit: DiDi

Is DiDi Dead Money for Investors?

Didi Global Inc. (DIDI) shareholders will vote on its delisting at a special meeting on May 23. The downhill ride in stock price since last June began when the SEC began a probe into the corporation’s IPO. The company also came under the dark cloud that other Chinese technology companies were under, as Beijing had been creating rigid regulations making it more difficult for them to operate. That regulatory campaign has slowed.

Didi (DIDI) says, subject to applicable Chinese regulations it is cooperating with the SEC investigation. The ride-sharing company’s own guidance on the situation is not reassuring, “We cannot predict the timing, outcome or consequences of such an investigation,” DiDi wrote in a report to shareholders.

The company stock fell 7% in after-hours trading Tuesday and is down another 5.75% at midday today (May 4).

Details of the SEC probe have not been made public. Gaps in some disclosures before the IPO is a likely area of SEC investigation. What is known is the company didn’t tell investors that Chinese officials had urged the company to delay the IPO as the government was worried about revealing sensitive information in the offering. DiDi was then being reviewed by Beijing as a cybersecurity threat to China. This occurred just days after going public. The long selloff that followed has not had a reprieve. The IPO raised $4.4 billion at $14 per share.

The new U.S. Securities and Exchange Commission scrutiny mounts as Chinese regulatory pressures have not fully subsided. In December, DiDi said it would apply to list on the Hong Kong Exchange. But in March, the company said that it would delist from New York before looking for a new public listing. This is to cooperate with Beijing’s cybersecurity probe.

Shareholders will vote on the delisting on May 23, but company directors and strategic investors like Tencent (TCEHY) and Softbank (SFTBY) are likely to push it through. Smaller self-directed investors, many of who are sitting with huge losses, may find their ownership is “dead money” for an undetermined amount of time once the company is delisted.

Take-Away

The U.S. Securities and Exchange Commission is investigating Didi Global Inc.’s troubled 2021 public offering when the Chinese ride-hailing company raised $4.4 billion only days before revelations of a Chinese probe into data security pummeled the stock.

Like many other Chinese tech companies, Didi has come under the spotlight from regulators both in China and the U.S. since the IPO. Action from U.S. regulators shows that the end is not yet in sight for shareholders of the stock.

The company has been in talks with the Cyberspace Administration of China about a fine and penalties.

Paul Hoffman

Managing Editor, Channelchek

Suggested Reading

Ridesharing Giant DiDi Employees Banned from Selling Shares

DiDi is Delisting, What Does that Mean?

Are ADRs Riskier than Stocks?

Did the Stock Market Already Overshoot to the Downside in 2022?

Sources

https://finance.yahoo.com/news/didi-global-says-faces-sec-220926186.html

https://www.wsj.com/articles/didis-u-s-road-trip-just-got-even-bumpier-11651663261?mod=djemheard_t

https://www.bloomberg.com/news/articles/2022-05-03/didi-global-says-it-faces-sec-investigation-related-to-u-s-ipo-l2qpduya

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Euroseas (ESEA) – Euroseas agrees to buy two container vessels

Posted on May 4, 2022 by Admin

Wednesday, May 04, 2022

Euroseas (ESEA)
Euroseas agrees to buy two container vessels

Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. Euroseas operates in the container shipping market. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

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

Euroseas agreed to acquire two 4,250 teu container vessels for a combined price of $37 million. The acquisitions increase ESEA’s fleet to 18 vessels with 54,621 teu with an additional 7 newbuildings and 16,600 teu to be delivered in 2023-24. The price per teu is in line with recent prices, which have skyrocketed in the last 18 months as shipping rates have risen.

Euroseas has locked in shipping sales contracts to assure the acquisitions are immediately accretive to EBITDA. The M/V Seaspan Manila ship has a contract through February 2025 at prices near $20,000 (with ceiling and floor pricing after April 2024). The M/V Seaspan Melbourne has a contract until March 2025 at $19,000/day. Combined, management believes the ships will add $20 million to EBITDA, or approximately $2.75 per share….

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

Lineage Cell Therapeutics (LCTX) – Additional Data Presented Confirms Our OpRegen Expectations

Posted on May 4, 2022 by Admin

Wednesday, May 04, 2022

Lineage Cell Therapeutics (LCTX)
Additional Data Presented Confirms Our OpRegen Expectations

Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs. Lineage’s programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities. With this platform Lineage develops and manufactures specialized, terminally differentiated human cells from its pluripotent and progenitor cell starting materials. These differentiated cells are developed to either replace or support cells that are dysfunctional or absent due to degenerative disease or traumatic injury or administered as a means of helping the body mount an effective immune response to cancer. Lineage’s clinical programs are in markets with billion dollar opportunities and include five allogeneic (“off-the-shelf”) product candidates: (i) OpRegen, a retinal pigment epithelial cell therapy in Phase 1/2a development for the treatment of geographic atrophy secondary to age-related macular degeneration; (ii) OPC1, an oligodendrocyte progenitor cell therapy in Phase 1/2a development for the treatment of acute spinal cord injuries; (iii) VAC2, a dendritic cell therapy produced from Lineage’s VAC technology platform for immuno-oncology and infectious disease, currently in Phase 1 clinical development for the treatment of non-small cell lung cancer (iv) ANP1, an auditory neuronal progenitor cell therapy for the potential treatment of auditory neuropathy, and (v) PNC1, a photoreceptor neural cell therapy for the treatment of vision loss due to photoreceptor dysfunction or damage. For more information, please visit www.lineagecell.com or follow the company on Twitter @LineageCell.

Robert LeBoyer, Vice President, Research Analyst, Life Sciences , Noble Capital Markets, Inc.

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

OpRegen Data Presented At ARVO. Lineage Cell Therapeutics presented data from the Phase 1/2a trial testing OpRegen, its retinal pigment epithelial cell transplantation for treating age-related macular degeneration (dry AMD). The data was presented at the Annual Meeting of the Association for Research in Vison and Ophthalmology, ARVO. The presentation added additional patient data from its last cohort, demonstrating safety, tolerability, and improvements in visual function and cellular structure.

Additional Data From The Efficacy Cohort Was Presented. The Phase 1/2a trial is an open-label trial with three cohorts of 4 patients each receiving ascending doses to establish safety, then a fourth cohort of 12 patients to test efficacy. Patients in the updated presentation have been assessed at 12 months following OpRegen treatment, with some patients followed for up to 5 years….

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

Release – Entravision Expands into Kenya and Names New Director of Local Operations

Posted on May 4, 2022 by Admin

Entravision Expands into Kenya and Names New Director of Local Operations

Research, News, and Market Data on Entravision

Expansion provides access to a
high-growth, emerging digital advertising industry with significant expansion
opportunities across East Africa

SANTA MONICA, Calif.–(BUSINESS WIRE)– Entravision (NYSE: EVC or “the Company”), a leading global advertising, media and ad-tech solutions company, announced today its expansion into Kenya. This expansion provides Entravision, through its Africa-based digital business unit, Entravision 365 Digital, a presence in East Africa, as it looks to expand its breadth of digital solutions, media representations and creative services to new emerging markets.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20220504005241/en/

With the expansion into Kenya, the Company also welcomes Maggie Ndirangu as its newly appointed Managing Director of Kenya Operations. Ms. Ndirangu has regional expertise and extensive knowledge of the digital landscape across Africa. This expansion aligns with Entravision’s goal to position Entravision 365 Digital as a local digital marketing solutions powerhouse, serving African companies and local leaders with advanced branding, performance, and creative needs.

“We’re thrilled to launch Entravision’s operations in Kenya, an exciting market for our African expansion,” said Julian Jordaan, CEO of Entravision 365 Digital. “With the third highest connected consumer base in Sub-Saharan Africa, and growing at a rapid rate, we believe that these numbers will only continue to climb and ultimately represent 17% of the digital advertising industry within the Sub-Saharan market by 2023. Kenya also has incredible talent and an advertising ecosystem primed with opportunity.”

Jordaan continued, “We are also pleased to welcome Maggie Ndirangu as Managing Director of our Kenyan operations. Maggie is an exceptional leader who brings with her years of knowledge in the marketing and advertising industries. She will be taking our partnerships, media representations and services to brands across the Kenya market.”

“Kenya has become a technology powerhouse in Africa over the last few years, with many global companies setting up Sub-Saharan African headquarters here. I’m honored to be joining Entravision to lead the Company’s expansion into East Africa and deliver marketing solutions that help businesses reach consumers, drive engagements and promote positive business impact across this region,” said Maggie Ndirangu.

Sub-Saharan Africa is an attractive digital marketplace with nearly 500 million digitally connected consumers. Importantly, the Sub-Saharan African customer is young, tech-savvy and digitally connected. By combining the Company’s platform and publisher partnerships with technology-driven design service, or “365 Studio,” Entravision’s evolution continues into a leading marketing technology service provider in the world’s highest growth economies.

About Entravision

Entravision is a leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Its dynamic portfolio includes digital, television and audio offerings. Digital, the company’s largest revenue segment, is comprised of four business units: a digital sales representation business; Smadex, a programmatic ad purchasing platform; a branding and mobile performance solutions business; and a digital audio business. Through the digital sales representation business, the company connects global media companies such as Meta, Twitter, TikTok and Spotify with advertisers in primarily emerging growth markets worldwide. Smadex is the company’s mobile-first demand side platform, enabling advertisers to execute performance campaigns using machine learning. Entravision also offers a branding and mobile performance solutions business, which provides managed services to advertisers looking to connect with global consumers, primarily on mobile devices, and its digital audio business provides digital audio advertising solutions for advertisers in the Americas. In addition to digital, Entravision has 49 television stations and is the largest affiliate group of the Univision and UniMás television networks. Entravision also manages 46 primarily Spanish-language radio stations that feature nationally recognized, Emmy award-winning talent. Shares of Entravision Class A Common Stock trade on the NYSE under ticker: EVC. Learn more about the company’s offerings at entravision.com or connect with the company on LinkedIn.

About Entravision 365 Digital

Entravision 365 Digital is an African online media and ad-technology business with a rich heritage in the African advertising industry. For 21 years the business has represented the largest publishers and platforms in Africa and have helped global brands reach connected consumers and drive business impact. With a mission to connect publishers to brands, and brands to consumers, Entravision 365 Digital helps brands reach audiences at scale through its exclusive partnership with leading platforms like TikTok, Anzu, Boomplay, Triton Digital and many more. Entravision 365 Digital is a business unit of Entravision, a leading global advertising, media and ad-tech solutions company connecting brands to consumers by representing top platforms and publishers. Learn more about all of our innovative media, marketing and technology offerings at entravision365digital.com or connect with us on
LinkedIn.

Forward-Looking Statements

View source version on businesswire.com: https://www.businesswire.com/news/home/20220504005241/en/

For more information please contact:

Entravision

Investors:
Christopher T. Young
Chief Financial Officer
310-447-3870

Kimberly Esterkin
Addo Investor Relations
evc@addo.com
310-829-5400

Entravision 365 Digital South Africa

Julian Jordaan
Chief Executive Officer, Entravision 365 Digital
+27 21 555 1975
Julian@365Digital.co.za
www.entravision365digital.com

Entravision 365 Digital Kenya

Maggie Ndirangu
Managing Director
maggie.ndirangu@entravision.com

Source: Entravision

Release – Onconova Therapeutics To Provide Corporate Update And Announce First Quarter Financial Results On May 11, 2022

Posted on May 4, 2022 by Admin

Onconova Therapeutics To Provide Corporate Update And Announce First Quarter Financial Results On May 11, 2022

News and Market Data on Onconova Therapeutics

Company to host conference call and webcast at 4:30 p.m. Eastern Time on Wednesday, May 11, 2022

NEWTOWN, Pa., May 04, 2022 (GLOBE NEWSWIRE) — Onconova Therapeutics, Inc. (NASDAQ: ONTX), (“Onconova”), a clinical-stage biopharmaceutical company focused on discovering and developing novel products for patients with cancer, today announced that the Company intends to release its first quarter 2022 financial results on Wednesday, May 11, 2022. Management plans to host a conference call and live webcast at 4:30 p.m. ET on the same day to discuss these results and provide an update on its pipeline programs.

Conference Call and Webcast Information

Interested parties who wish to participate in the conference call may do so by dialing (855) 428-5741 for domestic and (210) 229-8823 for international callers and using conference ID 7369861.

Those interested in listening to the conference call via the internet may do so by visiting the investors and media page on the company’s website at www.onconova.com and clicking on the webcast link. In addition to the live webcast, a replay will be available on the Onconova website for 90 days following the call.

About Onconova Therapeutics, Inc.

Onconova Therapeutics is a clinical-stage biopharmaceutical company focused on discovering and developing novel products for patients with cancer. The Company has proprietary targeted anti-cancer agents designed to disrupt specific cellular pathways that are important for cancer cell proliferation.

Onconova’s novel, proprietary multi-kinase inhibitor narazaciclib (formerly ON 123300) is being evaluated in two separate and complementary Phase 1 dose-escalation and expansion studies. These trials are currently underway in the United States and China.

Onconova’s product candidate rigosertib is being studied in an investigator-sponsored study program, including in a dose-escalation and expansion Phase 1/2a investigator-sponsored study with oral rigosertib in combination with nivolumab for patients with KRAS+ non-small cell lung cancer.

For more information, please visit www.onconova.com.

Company
Contact:
Avi Oler
Onconova Therapeutics, Inc.
267-759-3680

ir@onconova.us
https://www.onconova.com/contact/

Investor
Contact:
Bruce Mackle
LifeSci Advisors, LLC
646-889-1200

bmackle@lifesciadvisors.com

Release – CoreCivic Reports First Quarter 2022 Financial Results

Posted on May 4, 2022 by Admin

CoreCivic Reports First Quarter 2022 Financial Results

Research, News, and Market Data on CoreCivic

BRENTWOOD, Tenn., May 04, 2022 (GLOBE NEWSWIRE) — CoreCivic,
Inc. (NYSE: CXW) (the Company) announced today its financial results for the first quarter of 2022.

Financial Highlights – First Quarter 2022

Total revenue of $453.0 million

CoreCivic
Safety revenue of $414.2 million
CoreCivic
Community revenue of $24.1 million
CoreCivic Properties revenue of $14.6 million

Net Income of $19.0 million
Diluted earnings per share of $0.16
Adjusted diluted EPS of $0.14
Funds From Operations per diluted share of $0.34
Adjusted EBITDA of $80.8 million
TTM Debt Leverage of 2.7x

Damon T. Hininger, CoreCivic’s President and Chief Executive Officer, said, “We continued to generate strong cash flow during the first quarter, despite a few short-term headwinds, including earnings disruption from the commencement of a large new state contract at our La Palma Correctional Center in Arizona and a challenging labor market. For long term value creation, we remain focused on executing our debt reduction strategy. We’ve made great strides in the last year, reducing our total net debt by nearly $450 million, which positions us to begin returning capital to shareholders in the near future.

Hininger continued, “We’re also proud to have recently released our fourth Environmental, Social and Governance (ESG) Report, which details the many ways we delivered life-changing reentry and vocational programming to our residents in 2021. It takes our entire staff of teachers, chaplains, counselors, correctional officers and so many more dedicated people to make these achievements possible, and I’m grateful for my colleagues who truly live out our mission to better the public good every day.”

First Quarter 2022 Financial Results Compared With First Quarter
2021

Net income in the first quarter of 2022 totaled $19.0 million, or $0.16 per diluted share, compared with net loss in the first quarter of 2021 of $125.6 million, or a net loss of $1.05 per diluted share. Adjusted for special items, net income in the first quarter of 2022 was $17.4 million, or $0.14 per diluted share (Adjusted Diluted EPS), compared with adjusted net income in the first quarter of 2021 of $29.3 million, or $0.24 per diluted share. Special items for each period are presented in detail in the calculation of Adjusted Diluted EPS in the Supplemental Financial Information following the financial statements presented herein. The decline in adjusted per share amounts was primarily the result of property sales and refinancing transactions, both of which strengthened our balance sheet, as well as the non-renewal of contracts with the United States Marshals Service (USMS) at the 1,033-bed Leavenworth Detention Center and the 600-bed West Tennessee Detention Facility in 2021, and the non-renewal of a contract with Marion County, Indiana, at the managed-only 1,030-bed Marion County Jail effective January 31, 2022.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was $83.0 million in the first quarter of 2022, compared with $41.6 million in the first quarter of 2021. The increase in EBITDA was primarily due to shareholder litigation expense in the prior year quarter. Adjusted EBITDA, which excludes the shareholder litigation expense and other special items, was $80.8 million in the first quarter of 2022, compared with $96.3 million in the first quarter of 2021. Adjusted EBITDA decreased from the prior year quarter primarily due to the sale of three non-core properties, which generated $4.9 million in Adjusted EBITDA in the first quarter of 2021, the transition of offender populations at our La Palma Correctional Center, and the aforementioned non-renewal of contracts at three facilities that collectively resulted in a reduction in EBITDA of $9.0 million from the first quarter of 2021 to the first quarter of 2022.

Funds From Operations (FFO) was $41.5 million, or $0.34 per diluted share, in the first quarter of 2022, compared to a loss of $100.9 million, or $0.83 per diluted share, in the first quarter of 2021. Normalized FFO, which excludes special items, was $41.5 million, or $0.34 per diluted share, in the first quarter of 2022, compared with $53.0 million, or $0.44 per diluted share, in the first quarter of 2021. FFO was negatively impacted by the same factors that affected Adjusted EBITDA, as well as an increase in interest expense. The increase in interest expense was attributable to the issuance during the second and third quarters of 2021 of an aggregate principal amount of $675.0 million of 8.25% unsecured senior notes, the net proceeds of which were primarily used to repay shorter-term debt with lower interest rates. These refinancing activities strengthened our balance sheet by increasing our liquidity, extending our weighted average debt maturities, and creating more financial flexibility.

Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share amounts, are measures calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles (GAAP). Please refer to the Supplemental Financial Information and related note following the financial statements herein for further discussion and reconciliations of these measures to net income, the most directly comparable GAAP measure.

Business Updates

Commencement of New Contract with the State of Arizona at the La
Palma Correctional Center. On January 10, 2022, we announced that we were awarded a new contract with the state of Arizona to care for up to 2,706 adult male inmates on behalf of the Arizona Department of Corrections, Rehabilitation & Reentry (ADCRR) at the Company’s 3,060-bed La Palma Correctional Center in Eloy, Arizona. The new management contract has an initial term of five years, with one extension option for up to five years thereafter upon mutual agreement. We began receiving inmates from the state of Arizona in April 2022 under this new contract, and expect the transfer process to be complete in the fourth quarter of 2022. Before the new award, the La Palma facility supported the mission of ICE by caring for approximately 1,800 detainees. As the new contract with Arizona commences and state inmates are accepted at the facility, we are working closely with ICE to provide alternative capacity within the region in order to continue to support its needs. Upon full utilization of the new contract, we expect to generate approximately $75.0 million to $85.0 million in annualized revenue at the La Palma facility. However, because of the preparation to receive the Arizona inmates, including a reduction in the average daily population of ICE detainees at the facility, facility net operating income decreased $2.4 million during the first quarter of 2022 compared with the first quarter of 2021.

2022 Financial Guidance

Based on current business conditions, the Company is providing the following update to its financial guidance for the full year 2022:

	Guidance Full Year 2022	Prior Guidance Full Year 2022
Diluted EPS	$0.64 – $0.79	$0.72 – $0.86
Adjusted Diluted EPS	$0.63 – $0.77	$0.72 – $0.86
FFO per diluted share	$1.45 – $1.60	$1.55 – $1.70
EBITDA	$336.1 million – $351.4 million	$354.8 million – $370.0 million
Adjusted EBITDA	$333.9 million – $349.1 million	$354.8 million – $370.0 million

Our 2022 guidance reflects uncertainties associated with the timing of the reversal of Title 42, a public health order that has been used since March 2020 to deny 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. On April 1, 2022, the Center for Disease Control and Prevention terminated Title 42, and began preparing for a resumption of regular migration at the United States southern border, effective May 23, 2022. However, the reversal of Title 42 has been subject to legal challenges, and on April 25, 2022, a federal judge issued a temporary restraining order blocking its termination. The termination of Title 42 is expected to result in an increase in the number of undocumented people permitted into the United States to claim asylum, and could result in an increase in the number of people apprehended and detained by ICE, our largest government customer. However, it is difficult to predict when Title 42 will be terminated.

Our 2022 guidance also reflects the continuation of a challenging labor market, including above average wage inflation and, most notably, higher nursing-related expenses than previously estimated due to a national nursing shortage. Finally, our 2022 guidance also reflects a larger earnings disruption at our La Palma Correctional Center than previously estimated. Although we successfully began the complex transition of inmate populations from the state of Arizona into the facility in April 2022, pursuant to a new management contract, we currently expect detainee populations from ICE to decline more rapidly than previously forecasted.

During 2022, we expect to invest $78.5 million to $82.0 million in capital expenditures, consisting of $33.5 million to $34.0 million in maintenance capital expenditures on real estate assets, $30.0 million to $32.0 million for capital expenditures on other assets and information technology, and $15.0 million to $16.0 million for facility renovations.

Supplemental Financial Information and Investor Presentations

We have made available on our website supplemental financial information and other data for the first quarter of 2022. 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 second quarter of 2022. Written materials used in the investor presentations will also be available on our website beginning on or about May 13, 2022. 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, May 5, 2022, and will be accessible through the Company’s website at www.corecivic.com under the “Events & Presentations” section of the “Investors” page. The live broadcast can also be accessed by dialing 888-882-4478 in the U.S. and Canada, including the confirmation passcode 8967211. An online replay of the call will be archived on our website promptly following the conference call. In addition, there will be a telephonic replay available beginning at 1:15 p.m. central time (2:15 p.m. eastern time) on May 5, 2022, through 1:15 p.m. central time (2:15 p.m. eastern time) on May 13, 2022. 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 8967211.

About CoreCivic

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 high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration 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 government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 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, as amended. 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 United States Department of Justice, or DOJ, not renewing contracts as a result of President Biden’s Executive Order on Reforming Our Incarceration System to Eliminate the Use of Privately Operated Criminal Detention Facilities, or the Private Prison EO) (two agencies of the DOJ, the United States Federal Bureau of Prisons and the United States Marshals Service utilize our services), 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; inflation and other increases in costs of operations, including a continuing rise in labor costs; 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, a policy known as Title 42. (On April 1, 2022, the Center for Disease Control and Prevention, or CDC, terminated Title 42, and began preparing for a resumption of regular migration at the United States southern border, effective May 23, 2022; however, on April 25, 2022, a judge issued a temporary restraining order blocking the termination of Title 42.); (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) 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, including those associated with a resurgence of COVID-19; (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 successfully identify and consummate future development and acquisition opportunities and realize projected returns resulting therefrom; (xi) our ability to have met and maintained qualification for taxation as a REIT for the years we elected REIT status; and (xii) the availability of debt and equity financing on terms that are favorable to us, or at all, including our ability to refinance our Bank Credit Facility, which matures in April 2023. 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.

CORECIVIC, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

ASSETS	March 31, 2022			December 31, 2021

Cash and cash equivalents	$	378,204		$	299,645
Restricted cash		12,330			11,062
Accounts receivable, net of credit loss reserve of $8,488 and $7,931, respectively		262,467			282,809
Prepaid expenses and other current assets		27,759			26,872
Assets held for sale		–			6,996
Total current assets		680,760			627,384
Real estate and related assets:
Property and equipment, net of accumulated depreciation of $1,685,556 and $1,657,709, respectively		2,269,913			2,283,256
Other real estate assets		216,161			218,915
Goodwill		4,844			4,844
Other assets		357,874			364,539

Total assets	$	3,529,552		$	3,498,938

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable and accrued expenses	$	326,003		$	305,592
Current portion of long-term debt		37,072			35,376
Total current liabilities		363,075			340,968

Long-term debt, net		1,483,948			1,492,046
Deferred revenue		26,311			27,551
Non-current deferred tax liabilities		90,836			88,157
Other liabilities		173,865			177,748

Total liabilities		2,138,035			2,126,470

Commitments and contingencies

Preferred stock ? $0.01 par value; 50,000 shares authorized; none issued and outstanding at March 31, 2022, and December 31, 2021, respectively		–			–
Common stock ? $0.01 par value; 300,000 shares authorized; 121,586 and 120,285 shares issued and outstanding at March 31, 2022, and December 31, 2021, respectively		1,216			1,203
Additional paid-in capital		1,870,065			1,869,955
Accumulated deficit		(479,764	)		(498,690	)
Total stockholders’ equity		1,391,517			1,372,468

Total liabilities and stockholders’ equity	$	3,529,552		$	3,498,938

CORECIVIC, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

	For the Three Months Ended March 31,
		2022			2021

REVENUE:
Safety	$	414,248		$	409,769
Community		24,115			23,658
Properties		14,591			21,255
Other		34			36
		452,988			454,718

EXPENSES:
Operating
Safety		321,021			305,427
Community		20,227			21,100
Properties		3,282			6,274
Other		99			83
Total operating expenses		344,629			332,884
General and administrative		31,101			29,530
Depreciation and amortization		32,028			32,712
Shareholder litigation expense		–			51,745
Asset impairments		–			1,308
		407,758			448,179



OTHER INCOME (EXPENSE):
Interest expense, net		(22,920	)		(18,428	)
Gain on sale of real estate assets, net		2,261			–
Other income (expense)		1,042			(148	)


INCOME (LOSS) BEFORE INCOME TAXES		25,613			(12,037	)

Income tax expense		(6,610	)		(113,531	)
NET INCOME (LOSS)	$	19,003		$	(125,568	)


BASIC EARNINGS (LOSS) PER SHARE	$	0.16		$	(1.05	)

DILUTED EARNINGS (LOSS) PER SHARE	$	0.16		$	(1.05	)

CORECIVIC, INC. AND
SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EPS

	For the Three Months Ended March 31,
		2022		2021

Net income (loss)	$	19,003	$	(125,568	)

Special items:
Expenses associated with COVID-19		–		1,598
Income taxes associated with change in corporate tax structure and other special tax items		–		114,249
Gain on sale of real estate assets, net		(2,261)		–
Shareholder litigation expense		–		51,745
Asset impairments		–		1,308
Income tax expense (benefit) for special items		625		(14,060	)
Adjusted net income	$	17,367	$	29,272
Weighted average common shares outstanding – basic		120,796		119,909
Effect of dilutive securities:
Restricted stock-based awards		624		115
Non-controlling interest – operating partnership units		–		1,342
Weighted average shares and assumed conversions – diluted		121,420		121,366
Adjusted Earnings Per Diluted Share	$	0.14	$	0.24

CORECIVIC, INC. AND
SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

CALCULATION OF FUNDS FROM OPERATIONS AND NORMALIZED FUNDS FROM
OPERATIONS

	For the Three Months Ended March 31,
		2022			2021

Net income (loss)	$	19,003		$	(125,568	)
Depreciation and amortization of real estate assets		24,166			23,759
Impairment of real estate assets		–			1,308
Gain on sale of real estate assets, net		(2,261	)		–
Income tax expense (benefit) for special items		625			(350	)
Funds From Operations	$	41,533		$	(100,851	)

Expenses associated with COVID-19		–			1,598
Income taxes associated with change in corporate tax structure and other special tax items		–			114,249
Shareholder litigation expense		–			51,745
Goodwill and other impairments		–			–
Income tax benefit for special items		–			(13,710	)
Normalized Funds From Operations	$	41,533		$	53,031

Funds From Operations Per Diluted Share	$	0.34		$	(0.83	)
Normalized Funds From Operations Per Diluted Share	$	0.34		$	0.44

CORECIVIC, INC. AND
SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

CALCULATION OF EBITDA AND ADJUSTED EBITDA

	For the Three Months Ended March 31,
		2022			2021

Net income (loss)	$	19,003		$	(125,568	)
Interest expense		25,392			20,925
Depreciation and amortization		32,028			32,712
Income tax expense		6,610			113,531
EBITDA	$	83,033		$	41,600
Expenses associated with COVID-19		–			1,598
Gain on sale of real estate assets, net		(2,261	)		–
Shareholder litigation expense		–			51,745
Asset impairments		–			1,308
Adjusted EBITDA	$	80,772		$	96,251

GUIDANCE — CALCULATION OF ADJUSTED NET INCOME, FUNDS FROM
OPERATIONS, EBITDA & ADJUSTED EBITDA

	For the Year Ending December 31, 2022
	Low End of Guidance			High End of Guidance
Net income	$	77,136		$	94,386
Gain on sale of real estate assets, net		(2,261	)		(2,261	)
Income tax expense for special items		625			625
Adjusted net income	$	75,500		$	92,750

Net income	$	77,136		$	94,386
Depreciation and amortization of real estate assets		98,500			99,000
Gain on sale of real estate assets, net		(2,261	)		(2,261	)
Income tax expense for special items		625			625
Funds From Operations	$	174,000		$	191,750
Diluted EPS	$	0.64		$	0.79
Adjusted EPS	$	0.63		$	0.77
FFO per diluted share	$	1.45		$	1.60

Net income	$	77,136		$	94,386
Interest expense		96,500			95,500
Depreciation and amortization		130,500			130,500
Income tax expense		32,000			31,000
EBITDA	$	336,136		$	351,386
Gain on sale of real estate assets, net		(2,261)			(2,261)
Adjusted EBITDA	$	333,875		$	349,125

NOTE TO SUPPLEMENTAL FINANCIAL INFORMATION

Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO, and, where appropriate, their corresponding per share metrics are non-GAAP financial measures. The Company believes that these measures are important operating measures that supplement discussion and analysis of the Company’s results of operations and are used to review and assess operating performance of the Company and its properties and their management teams. The Company believes that it is useful to provide investors, lenders and security analysts disclosures of its results of operations on the same basis that is used by management.

FFO, in particular, is a widely accepted non-GAAP supplemental measure of performance of real estate companies, grounded in the standards for FFO established by the National Association of Real Estate Investment Trusts (NAREIT). NAREIT defines FFO as net income computed in accordance with GAAP, excluding gains (or losses) from sales of property and extraordinary items, plus depreciation and amortization of real estate and impairment of depreciable real estate and after adjustments for unconsolidated partnerships and joint ventures calculated to reflect funds from operations on the same basis. EBITDA, Adjusted EBITDA, and Normalized FFO are useful as supplemental measures of performance of the Company’s properties because such measures do not take into account depreciation and amortization, or with respect to EBITDA, the impact of the Company’s tax provisions and financing strategies. Because the historical cost accounting convention used for real estate assets requires depreciation (except on land), this accounting presentation assumes that the value of real estate assets diminishes at a level rate over time. Because of the unique structure, design and use of the Company’s properties, management believes that assessing performance of the Company’s properties without the impact of depreciation or amortization is useful. The Company may make adjustments to FFO from time to time for certain other income and expenses that it considers non-recurring, infrequent or unusual, even though such items may require cash settlement, because such items do not reflect a necessary or ordinary component of the ongoing operations of the Company. Normalized FFO excludes the effects of such items. The Company calculates Adjusted Net Income by adding to GAAP Net Income expenses associated with the Company’s debt repayments and refinancing transactions, and certain impairments and other charges that the Company believes are unusual or non-recurring to provide an alternative measure of comparing operating performance for the periods presented.

Other companies may calculate Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO differently than the Company does, or adjust for other items, and therefore comparability may be limited. Adjusted Net Income, EBITDA, Adjusted EBITDA, FFO, and Normalized FFO and, where appropriate, their corresponding per share measures are not measures of performance under GAAP, and should not be considered as an alternative to cash flows from operating activities, a measure of liquidity or an alternative to net income as indicators of the Company’s operating performance or any other measure of performance derived in accordance with GAAP. This data should be read in conjunction with the Company’s consolidated financial statements and related notes included in its filings with the Securities and Exchange Commission.

Contact:	Investors: Cameron Hopewell – Managing Director, Investor Relations – (615) 263-3024
	Financial Media: David Gutierrez, Dresner Corporate Services – (312) 780-7204

The GEO Group (GEO) – 1Q22 Results Above Expectations

Posted on May 4, 2022 by Admin

Wednesday, May 04, 2022

The GEO Group (GEO)
1Q22 Results Above Expectations

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

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.

1Q22 Results. The GEO Group’s 1Q22 results were above expectations, with revenue for the quarter of $551.2 million, adjusted EBITDA of $125.2 million, AFFO of $0.64 per diluted share, EPS of $0.26, and adjusted net income of $0.31 per share. We had forecast $550 million, $98.5 million, $0.50, $0.20, and $0.21, respectively. GEO’s results highlight the resiliency of the business model, in our opinion.

BI Building. GEO’s BI monitoring subsidiary remains strong. BI now monitors over 200,000 people under the ISAP program, up from about 90,000 18 months ago. As we mentioned in a previous report, ICE is preparing for up to 600,000 enrollees in its ATD programs by year-end, up from 215,000 enrolled today. As the largest purveyor of ATD solutions to the government, such a surge should benefit GEO, in our view….

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

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