Category: Aerospace and Defense

Is Leisure the Overlooked Market Sector?

Posted on by phoffman@channelchek.com
Image Credit: Asad Photo Maldives (Pexels)

Travelers Gonna Travel!– Travel & Leisure Sector May Ignore the Recession

Economic activity in the U.S. contracted during the first half of the year. At the same time, inflation is running at 40-year highs. Investors looking to keep their money productive with reduced risk have focused on consumer staples and companies providing necessary services where demand isn’t impacted much by price. This is what experienced investors do when the economy falters. But this economy seems a bit different than previous periods of shrinking economic activity and rising prices. Jobs are still plentiful, and one industry, with a lot of pent-up demand leftover from the pandemic, is gearing up to exceed all expectations. That sector is leisure. We take a look below at the potential strength in the industry, where opportunities may be found, and how you could reduce timing risk with stocks on your shopping list.

Current State

More than half of Americans see leisure travel as a budget priority right now; in fact, 62% of Americans took at least one overnight trip between mid-May and mid-August. This is according to the latest The State of the American Traveler report compiled by Destination Analysis. Consumers continue to prioritize experiences over alternatives in their budget. As the U.S. Moves out of Fall and into the colder months, it appears the trend will continue. Chuck Artillio is co-owner of SinglesSki.com, winter-oriented travel, and leisure company. He told Channelchek, “Last year at this time, business was robust, yet bookings, as we stand now for the coming season, are already up over 100%.” Artillio added, “I’ve never seen anything like this before.”

The Destination Analysis survey also expects industrywide strength in demand for travel and leisure services in the last quarter of the year. The results show Fall and early Winter trip expectations are high. Over a quarter of Americans expect to take a trip in either October (26.6%), November (24.8%) or December (28.4%). This is up from June when 20% said they expected to take a trip in the fourth quarter of 2022.

Source: US Global Investors

The survey indicates that typical holiday travel includes visiting friends & family as the top driver for late year. However, second on the list of purposes for travel is the desire to return to a destination, followed by general atmosphere, and food & cuisine.

Source: US Global Investors

The survey produced hard data that showed Americans continue to prioritize having fun and relaxation when traveling. This, of course, can mean different things to different people. The majority said being in a quiet/peaceful location (82.5%) followed by beach time (69.7%), chilling-out poolside (67.3%), enjoying culinary experiences (65.6%), and luxury hotel experiences (60.4%).

Do Expectations Provide Opportunities?

An industry research report published this week titled, Entertainment & Leisure Industry Report: Ideas For Your Investing Shopping List, contains some ideas for interested investors. The authors of the leisure industry report include Michael Kupinski, Director of Research at Noble Capital Markets. Overall, Kupinski and Noble’s research associates find the current state of the economy as one that provides a “discount rack” of stocks that can weather a further downturn and may be the first to rise as the recovery seems imminent. He provides information and careful analysis on some stocks that he believes have favorable attributes, go here for in-depth details of these companies.

The analysts suggest investors develop a shopping list and concede that recognizing a turning point in market direction is the “hard part.” But they have suggestions for that as well. These include nibbling at the targets on your list to scale in over a period of time. This averaging in to stocks on your shopping list will lower the risk of picking one day to pile in, which may turn out to be bad timing.

Take Away

Down markets bring opportunity. They always have, and there is no reason to believe this time will be different. Finding sectors with promise, as the travel and leisure sector is now showing, then diving into research to select those in the sector with the most promise, followed by a decision to average in to the market, is one recognized way to put yourself in a position to benefit from the current “discount rack” that many stocks now seem to be on.

Paul Hoffman

Managing Editor, Channelchek

CoreCivic, Inc. (CXW) – Updating FFO projections

Posted on by cpatches


Tuesday, October 04, 2022

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.

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.

FFO, NFFO, and AFFO Projections. We modestly adjusted our projections for Funds From Operations, Normalized Funds From Operations, and Adjusted Funds From Operations. Our prior estimates reflected a larger estimate for depreciation and amortization and other than we are now using. We are now projecting third quarter FFO at $0.31 per share, versus a prior $0.36, NFFO of $0.31 versus $0.37, and AFFO of $0.31 versus a prior $0.32.

No Change in Business Outlook.  We are not currently expecting any major change in the business environment and our projections for revenue and EPS remain unchanged. ICE ADP has risen from below 20,000 in the spring to nearly 26,000 in September, while Southwest Border encounters exceeded 200,000/mth since March and likely will be up over 32% from the full fiscal year 2021.


Get the Full Report

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. 

The GEO Group (GEO) – Asset Sale Funds Additional Debt Repayment

Posted on by cpatches


Thursday, September 22, 2022

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.

Asset Sale. The GEO Group has sold its minority equity interest in the government-owned Ravenhall Correctional Centre in Australia for approximately $84.4 million in gross proceeds, or about $75 million after-tax. GEO, as part of a consortium, originally began developing the Ravenhall facility in late 2014, with the facility opened in late 2017.

Use of Proceeds. GEO will use the proceeds, along with available cash on hand, to repay all of the remaining $146.9 million outstanding principal of its Term Loan B and its Tranche 3 Term Loan, both due March 23, 2024. Along with the repayment of the 5.125% senior notes due 2023, GEI has now reduced outstanding debt maturing prior to 2026 to approximately $23 million, a significant accomplishment, in our view.


Get the Full Report

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 – CORRECTION — Kratos Provides Update on Family of Collaborative Combat Aircraft Flights and Milestones

Posted on by aweinsoff@channelchek.com

Research, News, and Market Data on KTOS

September 19, 2022 at 10:02 AM EDT

Key Capabilities, Including Manned-Unmanned Teaming with Manned Fighters, Autonomous Relative Navigation Formation, Multi-User Handoff, Demonstrated by Kratos Platforms

SAN DIEGO, Sept. 19, 2022 (GLOBE NEWSWIRE) — In a release issued under the same headline on Monday, September 19th by Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), please note that Eric DeMarco’s title was incorrect. The corrected release follows:

Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a leading National Security Solutions provider and industry-leading provider of high-performance, jet-powered unmanned aerial systems, announced today another recent successful flight from its family of Collaborative Combat Aircraft (CCA)—flying and demonstrating capabilities since 2015. Kratos’ family of CCA’s include more than four different aircraft types, with each having been flying for several years, proving, validating, and demonstrating key mission capabilities, as the DoD refines the ultimate range of requirements for the various CCA classes.

All of Kratos’ CCA systems are high subsonic, high maneuverability (high-g) jet aircraft, each optimized for different mission capabilities, with each incorporating stealth and other capabilities to help ensure survivability in today’s contested environment. Kratos’ publicly announced family of CCA systems range from a 350-pound class system to a 6000-pound class system and unrefueled ranges in excess of 3,000 miles.

Kratos rail-launched and runway-independent CCAs are developed to maximize performance per cost rather than being at the exquisite end of the capability and cost level. Therefore, they are ideal for “large mass, high quantity” scenarios and for distributed capability operations, where the loss of any one aircraft has a minimal effect on mission success and a minimal effect on cost of the overall mission. Current and recent conflicts, such as the war in Ukraine, have emphasized the validity in the distributed/high mass strategy for today’s battlespace, further supported by the cost equation.

Kratos Air Wolf Drone with Tactical Mission System Payload Just before Flight is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/92a79cb0-7e37-47aa-b50a-29a3960ca110 

Across a portfolio of internally funded efforts and funded on-contract efforts, Kratos CCAs have flight-demonstrated the following mission capabilities in flights beginning in 2015 and continuing throughout the last seven years:

  • autonomous self-navigation
  • autonomous relative navigation, i.e., flying in formation and teaming with manned fighters
  • in MUM-T mode based on the manned fighter/attack aircraft path
  • network based encrypted communications
  • control handoffs between ground operators
  • airborne operators in the mission area
  • airborne operators remote from the mission area
  • Kratos-only autonomy flights
  • open system high level autonomy control from other providers/standards
  • collaborative operations with multiple CCAs
  • collaborative operations with manned systems (MUM-T)
  • communications relay missions
  • sub-UAV / loitering munition deployment operation
  • internal “payload” carriage
  • external “payload carriage”
  • weapon system carriage, deployment, and operation
  • terminal effects/mode delivery including successful target impact

Kratos UTAP-22 Makos with Harrier following successful multi CCA MUM-T flight test series is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/7c065cc2-7636-44da-9398-5f8c241cdf13 

Steve Fendley, President of Kratos Unmanned Systems Division, said, “There have been many reports in the recent months/years about the promise of capabilities – such as relative navigation autonomy for MUM-T operations, multiple CCA collaborative missions, control handoffs from multiple users/commanders for a single or group of UAVs/CCAs – demonstrated through UAV system simulations across the industry. Notably, each of these critical capabilities have previously been actually flight demonstrated and proven with the Kratos CCAs, beginning in 2015. Our aircraft have operated in actual flight—being controlled from, flown in formation using relative navigation based on the manned assets, and flown in coordination with F-16s, AV8-Bs, F-35s, F-22s, T-38s, CRJs, and other manned, as well as unmanned, assets.”

Kratos XQ-58A in flight with F-35 and F-22 is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/963f08c0-1ac7-450b-b5a2-9128afad1a99 

Mr. Fendley continued, “Kratos’ systems include inner loop and outer loop autonomy up through elements of level 4 with Kratos baseline software. The Kratos software includes open architecture interfaces to enable control from systems including the Government Reference Architecture Skyborg ACS, for example. All of these have been flight demonstrated on our CCAs with the Kratos baseline autonomy providing the foundation capability. Our continued internal and on-contract work is focused on supporting the DoD in closing on the final requirement sets for the wide range of mission applications and on having field ready systems, which have been flight proven even before the ultimate capability requirements and programs have been published.”

Mr. Fendley concluded, “The DoD has reported consistently, especially in the last several months, that runway independence and the ability to operate from multiple non-large base locations is a critical enabler for our military’s successful operations in the most critical enemy threat scenarios. The DoD has also reported consistently that large quantities or a mass of CCAs are the game-changer for success in the wargames and threat analyses. Other characteristics/capabilities which are significant enablers for mission success in these engagements/missions include a level of survivability through signature, speed, and maneuverability, plus range and endurance in substantial excess of today’s fighters, and finally, affordability based on both the mass analyses and cost trade conflict equation. Kratos’ systems have been designed specifically in response to each of these fundamentals, all which support the wargame analysis keys to success.”

Kratos XQ-58A Weapons Bay open in flight is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/1cd823fb-d934-4b1a-9ac7-6a33a4f4b224 

Kratos XQ-58A deploying Loitering Munition Altius 600 in flight is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/a60c8fbf-3d99-4396-a4fc-054ed4719fd8 

Eric DeMarco, Kratos’ President & CEO, said, “At Kratos we have always been committed to ‘designed and built in the USA’, supporting the American worker, family, industrial base and our Country. As evidenced by the pandemic, supporting and strengthening the U.S. defense industrial base at all tiers is a critical key to the defense of our Nation overall. As part of this mission, Kratos develops and demonstrates complete capabilities with actual hardware, actual software, and actual systems. Proving capabilities within the challenging uncrewed aircraft arena can and will ever only be confirmed through actual flight—not simulations.”

Mr. DeMarco continued, “By progressing to actual flight and actual demonstration with high capability-per-cost, yet affordable, systems faster than traditional and conventional platform providers can achieve, Kratos is changing the status quo. We believe in being disruptive and are investing our own resources at an industry-leading, unmatched rate to ensure the warfighter has increased capabilities sooner for less cost. At Kratos, affordability is a technology, and we will remain fully committed to this approach, including American designed, sourced, and built systems, which I am confident, especially based on the current and rapidly increasing threat environment, combined with the current financial and budget realities, is the right answer for our warfighter and for the United States overall.”
   
About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms and systems for United States National Security related customers, allies, and commercial enterprises. Kratos is changing the way breakthrough technology for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research, and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, small to mid-sized jet engines and technology, training, and combat systems. For more information go to www.KratosDefense.com.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations, and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 26, 2021, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Yolanda White
858-812-7302 Direct

Investor Information:
877-934-4687
investor@kratosdefense.com

The GEO Group (GEO) – NYC NDRS

Posted on by cpatches


Monday, September 19, 2022

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.

NDRS. We hosted GEO CFO Brian Evans and EVP Pablo Paez for a series of investor meetings in NYC. The discussion revolved around the Company’s positive operating performance in a challenged market, the debt restructuring, and the BI business.

Operating Performance. As we have highlighted previously, The GEO Group has strung together some of its best operating performance ever over the past twelve months, even in the face of challenging market conditions due to government policy changes. Conditions, especially in the immigration sector, would suggest a continued positive operating environment for the Company. 


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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 – Kratos’ Mixed Reality Mission Readiness Training System Named a Finalist for The Halldale Group’s 2022 Military Simulation & Training Awards

Posted on by aweinsoff@channelchek.com

Research, News, and Market Data on KTOS

September 13, 2022 at 8:00 AM EDT

Nomination is in the Outstanding Immersive Technology Category

SAN DIEGO, Sept. 13, 2022 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that it has been named a finalist in Halldale Group’s 2022 Military Simulation and Training Awards. The award nomination reinforces Kratos’ leadership in the application of advanced immersive technologies to enhance military training.

Named in the Outstanding A/M/V/XR Application category Kratos was nominated for the Mixed Reality (MR) Mission Readiness Training (MRT) system it developed and fielded for Air Force Global Strike Command (AFGSC). MRT is a turn-key solution that enables aircrews to train in a containerized immersive environment consisting of a UH-1N Aircraft Simulator, Ground Party Simulator and Instructor Operator Station. The Aircraft Simulator is a high-fidelity replication of the cockpit, rear cabin, and simulated crew-served weapons enclosed in a Kratos mixed reality Holodeck.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/08e4c773-558b-41a6-ad10-0bbd97ae39cd

The Ground Party Simulator, also a containerized immersive environment, is fully integrated with the Aircraft Simulator, enabling ground forces to seamlessly join the collective training mission with their aircrews just as they would engage together in real combat situations. With full mission rehearsal capability, the MRT system has doubled combat mission readiness rates and is certified for both qualification and currency training of AFGSC security forces.

Commenting on being named a finalist in MS&T’s prestigious annual awards program, Jose Diaz, Sr. Vice President, Kratos Training Solutions, said that: “Making immersive technology a key awards category reflects the transformative impact this technology is having on military training. Kratos is pleased to be in the vanguard of this training evolution.”

Halldale Group’s MS&T Magazine’s Simulation and Training Awards Program showcases the people, products, processes, and organizations that provide exceptional value to its military clients. Many metrics are used to describe value, but the underlying principle is that value ultimately resides in how well clients are enabled to achieve their goals. Value is about outcomes and is often expressed in terms of change in areas such as resource use, effectiveness, efficiency, time, access, readiness or even capability.

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms and systems for United States National Security related customers, allies and commercial enterprises. Kratos is changing the way breakthrough technology for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research and streamlined development processes. At Kratos, affordability is a technology and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training, combat systems and next generation turbo jet and turbo fan engine development. For more information go to www.KratosDefense.com.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 26, 2021, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Yolanda White
858-812-7302 Direct

Investor Information:
877-934-4687
investor@kratosdefense.com

Kratos’ UH-1 Multi-Position Aircrew Virtual Environment Trainer (MP-AVET) enclosed in a Kratos mixed reality holodeck

 

Kratos’ UH-1 Multi-Position Aircrew Virtual Environment Trainer (MP-AVET) enclosed in a Kratos mixed reality holodeck

Source: Kratos Defense & Security Solutions, Inc.

Release – Naval Air Systems Command Awards Kratos $14.7 Million BQM-177A Subsonic Aerial Target System Contract

Posted on by aweinsoff@channelchek.com

Research, News, and Market Data on KTOS

September 8, 2022 at 8:00 AM EDT

SAN DIEGO, Sept. 08, 2022 (GLOBE NEWSWIRE) — Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a leading National Security Solutions provider and industry-leading provider of high-performance, jet-powered unmanned aerial systems, announced today that its Kratos Unmanned Aerial Systems unit has received a Cost-Plus-Fixed-Fee Indefinite Delivery Indefinite Quantity contract award for $14,748,648 from the U.S. Navy for five year ordering period to continue software maintenance and updates of the BQM-177A Subsonic Aerial Targets (SSAT).

Steve Fendley, President of the Kratos Unmanned Systems Division, said, “This award provides the foundation to continue our work with the Navy, maturing and evolving the SSAT aircraft on pace with the threat environment. This enables us to collectively provide the training to stress and exercise our fleet prior to their deployments to increasingly challenging theaters of operation, ultimately strengthening our nation’s defense and helping protect the warfighter. Consistent with our corporate motto, we continue our trend to be ready for what’s next.”    

About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms and systems for United States National Security related customers, allies, and commercial enterprises. Kratos is changing the way breakthrough technology for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research, and streamlined development processes. At Kratos, affordability is a technology and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training, combat systems and next generation turbo jet and turbo fan engine development. For more information go to www.KratosDefense.com.

Notice Regarding Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made on the basis of the current beliefs, expectations, and assumptions of the management of Kratos and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Kratos undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Kratos believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Kratos in general, see the risk disclosures in the Annual Report on Form 10-K of Kratos for the year ended December 26, 2021, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Kratos.

Press Contact:
Yolanda White
858-812-7302 Direct

Investor Information:
877-934-4687
investor@kratosdefense.com

Source: Kratos Defense & Security Solutions, Inc.

The GEO Group (GEO) – Reducing Debt Further

Posted on by cpatches


Thursday, September 08, 2022

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.

Redemption of 5.125% 2023 Notes. The GEO Group has delivered a notice of redemption for all of the remaining $125.7 million in outstanding aggregate principal amount of its 5.125% Senior Notes due April 1, 2023. The redemption will occur on October 6, 2022 with the price equal to $1,000 per $1,000 original principal amount plus accrued interest. The Company should save roughly $6 million of annual interest expense.

Reduction in pre-2026 Debt. The redemption of the 2023 Notes reduces outstanding debt due prior to 2026 to approximately $170 million. With a goal of reducing net recourse debt by $200-$250 million annually, the Company should easily handle the $170 million of debt due prior to 2026.


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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. 

Noble on the Road: Comtech (CMTL) Investor Day

Posted on by cpatches

Noble on the Road Presents: Comtech Investor Day

Noble Capital Markets is hosting an investor day with Comtech for the New York financial community on Tuesday, October 18th. Ken Peterman, CEO, and Michael Bondi, CFO of Comtech, will present and answer questions. This is a no cost event for investors to get to know the company and management.

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.

Noble Senior Research Analyst Joe Gomes follows the company and has an Outperform rating with a $15 price target.

To learn more about Comtech, click here. The research is complimentary to you.

Yes, I want to meet Comtech

For more information on this, and other upcoming roadshows, contact:

Barbara Cohen
Managing Director, Investor Outreach & Distribution
Noble Capital Markets, Inc. Direct – (212) 863-3225
bcohen@noblecapitalmarkets.com

Sustainable Exploration Beyond Earth’s Orbit

Posted on by Admin 

Image Credit: NASA (NASA.gov)


NASA’s Artemis 1 Mission to the Moon Sets the Stage for Routine Space Exploration – Here’s what to Expect and Why it’s Important

NASA’s Artemis 1 mission is poised to take a key step toward returning humans to the Moon after a half-century hiatus. The launch was scheduled for the morning of Aug. 29, 2022 but was postponed due to an issue with one of the rocket’s engines. The next opportunity to launch the rocket is Sept. 2, 2022. The mission is a shakedown cruise – sans crew – for NASA’s Space Launch System and Orion Crew Capsule.

The spacecraft is scheduled to travel to the Moon, deploy some small satellites and then settle into orbit. NASA aims to practice operating the spacecraft, test the conditions crews will experience on and around the Moon, and assure everyone that the spacecraft and any occupants can safely return to Earth.

This article was republished with permission from The Conversation, a news
site dedicated to sharing ideas from academic experts. It was written by and
represents the research-based opinions of Jack Burns, Professor
of Astrophysical and Planetary Sciences, University of Colorado Boulder.

The Conversation asked Jack Burns, a professor and space scientist at the University of Colorado Boulder and former member of the Presidential Transition Team for NASA, to describe the mission, explain what the Artemis program promises to do for space exploration, and reflect on how the space program has changed in the half-century since humans last set foot on the lunar surface.


How does Artemis 1 differ from the other rockets being
launched routinely?

Artemis 1 is going to be the first flight of the new Space Launch System. This is a “heavy lift” vehicle, as NASA refers to it. It will be the most powerful rocket engine ever flown to space, even more powerful than Apollo’s Saturn V system that took astronauts to the Moon in the 1960s and ‘70s.

It’s a new type of rocket system, because it has both a combination of liquid oxygen and hydrogen main engines and two strap-on solid rocket boosters derived from the space shuttle. It’s really a hybrid between the space shuttle and Apollo’s Saturn V rocket.

Testing is very important, because the Orion Crew Capsule is going to be getting a real workout. It will be in the space environment of the Moon, a high-radiation environment, for a month. And, very importantly, it will be testing the heat shield, which protects the capsule and its occupants, when it comes back to the Earth at 25,000 miles per hour. This will be the fastest capsule reentry since Apollo, so it’s very important that the heat shield function well.

This mission is also going to carry a series of small satellites that will be placed in orbit of the Moon. Those will do some useful precursor science, everything from looking further into the permanently shadowed craters where scientists think there is water to just doing more measurements of the radiation environment, seeing what the effects will be on humans for long-term exposure.


The plan is for Artemis 1 to lift off, travel to the Moon, deploy satellites, orbit the Moon, return to Earth, safely enter the atmosphere and splash down in the ocean. NASA


What’s the goal of the Artemis project? What’s coming up
in the series of launches?

The mission is a first step toward Artemis 3, which is going to result in the first human missions to the Moon in the 21st century and the first since 1972. Artemis 1 is an uncrewed test flight.

Artemis 2, which is scheduled to launch a few years after that, will have astronauts on board. It, too, will be an orbital mission, very much like Apollo 8, which circled the Moon and came back home. The astronauts will spend a longer time orbiting the Moon and will test everything with a human crew.

And, finally, that will lead to a journey to the surface of the Moon in which Artemis 3 – sometime mid-decade – will rendezvous with the SpaceX Starship and transfer crew. Orion will remain in orbit, and the lunar Starship will take the astronauts to the surface. They will go to the south pole of the Moon to look at an area scientists haven’t explored before to investigate the water ice there.

 

Artemis is reminiscent of Apollo. What has changed in the
past half-century?

The reason for Apollo that Kennedy envisioned initially was to beat the Soviet Union to the Moon. The administration didn’t particularly care about space travel, or about the Moon itself, but it represented an audacious goal that would clearly put America first in terms of space and technology.

The downside of doing that is the old saying “You live by the sword, you die by the sword.” When the U.S. got to the Moon, it was basically game over. We beat the Russians. So we put some flags down and did some science experiments. But pretty quickly after Apollo 11, within a few more missions, Richard Nixon canceled the program because the political objectives had been met.

So fast-forward 50 years. This is a very different environment. We are not doing this to beat the Russians or the Chinese or anybody else, but to begin a sustainable exploration beyond Earth’s orbit.

The Artemis program is driven by a number of different goals. It includes in situ resource utilization, which means using resources at hand like water ice and lunar soil to produce food, fuel and building materials.

The program is also helping to establish a lunar and space economy, starting with entrepreneurs, because SpaceX is very much part of this first mission to the surface of the Moon. NASA doesn’t own the Starship but is buying seats to allow astronauts to go to the surface. SpaceX will then use the Starship for other purposes – to transport other payloads, private astronauts and astronauts from other countries.

Fifty years of technology development means that going to the Moon now is much less expensive and more technologically feasible, and much more sophisticated experiments are possible when you just figure the computer technology. Those 50 years of technological advancement have been a complete game-changer. Almost anybody with the financial resources can send spacecraft to the Moon now, though not necessarily with humans.

NASA’s Commercial Lunar Payload Services contracts private companies to build uncrewed landers to go to the Moon. My colleagues and I have a radio telescope that’s going to the Moon on one of the landers in January. That just wouldn’t have been possible even 10 years ago.

 

What other changes does Artemis have in store?

The administration has said that in that first crewed flight, on Artemis 3, there will be at least one woman and very likely a person of color. They may be one and the same. There may be several.

I’m looking forward to seeing more of that diversity, because young kids today who are looking up at NASA can say, “Hey, there’s an astronaut who looks like me. I can do this. I can be part of the space program.”


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Do Businesses that Support Space Flight Offer Good Investment Opportunity?

Posted on by Admin 



Image Credit: NASA Kennedy (Flickr)


Journey to Investments in Space-Related Companies

Are space exploration, space recreation, and the military transformation in space opening investment opportunities? NASA has aggressive plans to collaborate with commercial partners to establish a presence on the moon – SpaceX, Blue Origin, and Virgin Galactic are successfully moving forward with their own services beyond the Earth’s atmosphere, and SpaceForce, which is approaching its third anniversary, is experiencing a growing budget allocation from Washington. If space is the final frontier, does it deserve consideration as part of your portfolio – could the timing be right to explore the possibilities?

Last year  (2021), there were several spaceflight-related records set. This includes the most successful orbital launches in a year, most humans sent to space, and most orbiting Earth all at the same time. Launching more equipment, with or without passengers, into orbit opens possibilities for many companies, large and small. The big companies, like Boeing (BA), which is developing the Starliner spacecraft for travel, and Northrop Grumman (NOC), which is developing the Cygnus spacecraft, are huge companies, so space missions and travel will be just a small fraction of their business. Meanwhile, smaller companies, even those with various related lines of business, stand to experience a greater impact from increased launches, travel, and military design and implementation.

Companies do not have to build the rocket or space vehicle itself to benefit. There are launch operations, communications, data, satellites, computer systems, design, etc., all critical to providing a successful mission.

Smaller companies in this investment space have been underperforming the S&P 500 so far this year. Whether this means they are on the launch pad and headed to the moon with the new pace of activity or that they will continue to sit idle for some time is never known with stocks in any industry, but this sector is expanding while so many others are shrinking.  

Who are some of the smaller, more interesting companies to discover?

Maxar Technologies, Inc (NYSE: MAXR) is a space and geospatial data provider with a full range of space technology products and solutions for both commercial and government customers. Maxar’s solutions include satellites, Earth imagery, geospatial data, and analytics.

Current MAXR Price, $24.25/ Market Cap $1.79b.

Kratos Defense & Security Solutions, Inc. (KTOS) provides engineering, information technology, and warfighter solutions to the U. S. Department of Defense. Kratos is a U.S. government contractor that operates through two segments, Kratos Government Solutions and Unmanned Systems. The Kratos Government Solutions segment offers microwave electronic products, space and satellite communications, training and cybersecurity/warfare, modular systems, turbine technologies, and defense and rocket support services. The Unmanned Systems segment provides unmanned aerial systems (drones), and unmanned ground and seaborne systems.

Current KTOS Price $13.03/ Market Cap $1.63b.

Rocket Lab USA, Inc.(RKLB) serves commercial, aerospace contractors, and government customers. The company was founded in 2006 and went public via SPAC in August of 2021. It provides launch services, spacecraft design, manufacturing, and other spacecraft and non-orbit management products and services. Rocket Lab also designs, manufactures, and sells small orbital launch vehicles and satellite platforms. They are developing an 8-ton payload class launch vehicle.

Current Price $5.18 / Market Cap $2.4b.

Momentus, Inc. (MTS) serves satellite operators. It is a smaller company that focuses on providing in-space infrastructure services, and in-space transportation hosted payloads and in-orbit services. Current Price $1.85  / Market Cap $154.1m.


Take-Away

There has been increasing buzz around space travel, work being done on improved internet and communications from space, exploring Mars, and expanded military operations from the heavens. This increased business and increased attention is on an upward trajectory and could potentially take some small company prices with it.

Helping you discover and explore smaller companies is one of Channelchek’s main purposes. Login to your free Channelchek account, click on COMPANY Data, and start your journey.

Paul Hoffman

Managing Editor, Channelchek

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Sources

https://www.spaceforce.mil/News/Article/3013259/kendall-brown-raymond-tell-congress-194-billion-budget-request-balances-risks-q/

https://en.wikipedia.org/wiki/2021_in_spaceflight

https://www.space.com/rocket-lab-goes-public-spac-merger

https://channelchek.com/aux/(expanded:check-channels)

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The GEO Group (GEO) – Debt Restructuring Approved

Posted on by Admin

Thursday, August 18, 2022

The GEO Group (GEO)
Debt Restructuring Approved

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.

Push Back That Wall. GEO received the required participation of its creditors to close on the debt restructuring. The $2 billion debt wall due over the next four years, now has maturities of $125 million in 2023; approximately $165 million in 2024; approximately $341 million in 2026; approximately $1.1 billion in 2027; and approximately $526 million in 2028, providing substantial flexibility of the Company.

Go Forward. Following the closing of the transactions, GEO will have approximately $200 million in domestic unrestricted cash and cash equivalents and total liquidity of approximately $375 million. Assuming consistent financial performance across its business units, over the next two years, GEO expects to be able to reduce net recourse debt by $200­­–250 million annually. …

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. 

V2X, Inc. (VVX) – A Final Quarter for Vectrus

Posted on by Admin

Thursday, August 11, 2022

V2X, Inc. (VVX)
A Final Quarter for Vectrus

For more than 70 years, Vectrus has provided critical mission support for our customers’ toughest operational challenges. As a high-performing organization with exceptional talent, deep domain knowledge, a history of long-term customer relationships, and groundbreaking technical expertise, we deliver innovative, mission-matched solutions for our military and government customers worldwide. Whether it’s base operations support, supply chain and logistics, IT mission support, engineering and digital integration, security, or maintenance, repair and overhaul, our customers count on us for on-target solutions that increase efficiency, reduce costs, improve readiness, and strengthen national security. Vectrus is headquartered in Colorado Springs, Colo., and includes about 8,100 employees spanning 205 locations in 28 countries. In 2021, Vectrus generated sales of $1.8 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

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.

2Q22 Operating Results. V2X reported record second quarter revenue of $498 million, up 6% year-over-year and 9% sequentially. The growth was even more impressive considering the absence of revenues related to the 2021 Pacific Defender exercise and the lack of Afghanistan revenue. We had projected revenue of $460 million. The Company reported GAAP EPS of $0.88 compared to $1.35 in 2Q21. Adjusted EPS was $1.41 versus $1.52. We had projected $1.04 and $1.21, respectively.

Drivers. High OPTEMPO, LOGCAP V momentum, and contract growth on existing programs all drove the top-line growth. Notably, INDOPACOM accounted for 9% of overall revenue, up from 3% in 2Q21. Lower margin early stage contracts as well as M&A and integration costs associated with the Vertex merger negatively impacted margins.…

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.