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:

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

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Kratos Awarded Contract to Deliver OneWeb Spectrum Monitoring System for its LEO Satellite Constellation

Research, News, and Market Data on Kratos Defense & Security Solutions

 

SAN DIEGO, 
April 25, 2022 (GLOBE NEWSWIRE) — 
Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that it has been awarded a contract to deliver an advanced spectrum monitoring system for OneWeb to monitor, analyze and review the utilized spectrum to support high quality of service for its fleet of Low Earth Orbit (LEO) constellations.

The system will monitor the spectrum used between its global network of Satellite Network Portal (SNP) gateways and its constellation of LEO satellites. The OneWeb Spectrum Monitoring System (OSMS) will help staff monitor, manage and analyze this spectrum, the radio frequencies that satellite signals travel over.

“With our fleet of LEO satellites that will deliver on our mission to provide space connectivity around the world, it is critical for us to monitor and manage the RF spectrum to ensure that we are delivering on our service performance targets,” stated  David Price, Vice President, Access Layer Program at OneWeb. “We are working with Kratos, experts in RF monitoring, measurement and analysis to design, build and integrate the system into our ground operations.”

The OSMS will incorporate Kratos’ industry-leading, integrated spectrum monitoring capabilities to enable real-time management of Radio Frequency (RF) usage and to monitor compliance with frequency transmission regulations. As part of the contract, Kratos is responsible for designing, developing, and installing the OSMS and integrating the system with OneWeb’s ground segment.

At the heart of the OSMS LEO monitoring solution, Kratos will deploy a big data processing, storage and analytics platform for satellite operations. The system will retrieve, store, and access the spectrum traces captured at each antenna during a satellite pass. The RF data across all gateway sites will be consolidated through the OSMS to enable OneWeb’s Network Operations staff to centrally monitor, review,s and analyze the spectrum.

“The OSMS is being built to address the need to monitor very fast-moving LEO satellites and scale to the needs of OneWeb’s fleet of satellites. The Kratos technology used in the OSMS can retrieve, process, and store the high volume of data at almost one gigabit per second on the ground,” explained  Bruno Dupas, President of 
Kratos Communications in 
France. “Kratos and OneWeb are working together to successfully deploy the OSMS, one of the most advanced spectrum monitoring systems for LEO constellations in the industry.”

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.

Comtech Telecommunications Corp. to Supply SES With O3b mPOWER Gateway and User Terminals

Research, News, and Market Data on Comtech Telecommunications

Investments in Comtech’s New UK Technology
Center Support Growth of Failsafe
Communications

MELVILLE, N.Y.
–(BUSINESS WIRE)–Apr. 12, 2022– 
April 12, 2022— 
Comtech Telecommunications Corp. (NASDAQ: CMTL), a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies, announced today, that it is supplying gateway and user terminal antenna systems to SES for its second-generation O3b mPOWER Medium Earth Orbit (“MEO”) satellite constellation. These antenna solutions are part of Comtech’s 
Failsafe Communications
 product suite and were designed and will be manufactured at Comtech’s new technology center in 
Basingstoke, United Kingdom.

Comtech’s 5.5m mPOWER Gateway Terminal (Photo: Business Wire)

“We are pleased that SES has partnered with 
Comtech for our X/Y antenna products for critical telemetry, tracking and control facilities as well as customer data gateways and user terminals. These antenna systems, which were manufactured at our new technology center in the 
United Kingdom
, provide unique technical and commercial advantages in support of non-geostationary constellations over traditional antenna products,” said  Michael Porcelain , President and Chief Executive Officer of 
Comtech Telecommunications Corp.

“These next-generation gateway antennas are especially important for customers who want to land data at their own site whilst being able to tap into the differentiated O3b mPOWER connectivity services. For our government customers, this is especially attractive since we have a compelling offering with our low-latency, high-throughput services delivered in a secure environment as if they were using their own dedicated satellite network. This is made possible, in part, due to these gateways that are now more resilient, lighter and easier to install,” said  Stewart Sanders , Executive Vice President of Technology and O3b mPOWER manager at SES.

Comtech’s antenna systems that can be used with the O3b mPOWER satellite constellation range in size from the 5.5-meter gateway intended for telemetry, tracking and control (TT&C) to 2.4-meter antennas for enterprise and government use. Compared with existing O3b gateways, Comtech’s dual-drive X/Y antennas offer huge advantages over traditional Azimuth/Elevation systems, to include precision tracking, multi-orbit support and easier installations. Comtech’s carbon fiber reflector is a light weight, rigid structure, and stable over extreme temperature ranges, which is critical for Ka-band surface accuracy. The lighter-weight reflector design utilizes smaller drive motors, experiences less component stress for longer life and lower power consumption during the constant trace/retrace operation needed for non-geostationary satellite tracking, resulting in overall lower capital and operational costs.

O3b mPOWER is the successor to SES’s first-generation O3b MEO constellation. The software-driven communications system is capable of delivering connectivity services from tens of megabits to multiple gigabits per second. It is scheduled for launch in the coming months and expected to be operational by end of calendar year 2022.

Comtech’s new 56,000 square foot facility in 
Basingstoke, United Kingdom is a modern technology center that is intended to support customer requirements for 
Failsafe Communications
 – critical communications infrastructure that people, business, and governments know they can rely on, no matter where they are – on land, at sea, or in the air – and no matter what’s going on outside – from armed conflict to natural disaster. The facility provides customers access to Comtech’s scalable manufacturing, improved QA, and improved material and integration workflow. Comtech’s antenna suite includes satellite tracking antennas ranging in size from sub-1-meter to 13-meters, as well as RF feeds, radomes and carbon fiber reflectors, for LEO, MEO and GEO applications at all frequency bands.

About Comtech

Comtech Telecommunications Corp. is a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies to commercial and government customers around the world. Headquartered in 
Melville, New York and with a passion for customer success, 
Comtech designs, produces and markets advanced and secure wireless solutions. For more information, please visit www.comtechtel.com (and preview its new website at www.comtech.com).

About
SES

SES has a bold vision to deliver amazing experiences everywhere on earth by distributing the highest quality video content and providing seamless connectivity around the world. As the leader in global content connectivity solutions, SES operates the world’s only multi-orbit constellation of satellites with the unique combination of global coverage and high performance, including the commercially-proven, low-latency Medium Earth Orbit O3b system. By leveraging a vast and intelligent, cloud-enabled network, SES is able to deliver high-quality connectivity solutions anywhere on land, at sea or in the air, and is a trusted partner to the world’s leading telecommunications companies, mobile network operators, governments, connectivity and cloud service providers, broadcasters, video platform operators and content owners. SES’s video network carries over 8,200 channels and has an unparalleled reach of 361 million households, delivering managed media services for both linear and non-linear content. The company is listed on 
Paris and Luxembourg stock exchanges (Ticker: SESG). Further information is available at: www.ses.com.

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

PCMTL

View source version on businesswire.com: https://www.businesswire.com/news/home/20220411005860/en/

Investor Relations Robert Samuels 631-962-7102
robert.samuels@comtech.com

Source: 
Comtech Telecommunications Corp.

Comtech Welcomes Robert Samuels as Vice President of Investor Relations and Corporate Communications

Research, News, and Market Data on Comtech Telecommunications

Samuels Takes IR Helm as Comtech Scales into Growing Failsafe
Communications Market Opportunities

MELVILLE, N.Y.
–(BUSINESS WIRE)–Apr. 11, 2022– 
April 11, 2022— 
Comtech Telecommunications Corp. (NASDAQ: CMTL), a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies, today announced that it has named investment and financial analysis expert  Robert Samuels as its Vice President of Investor Relations and Corporate Communications. This newly created position will significantly enhance Comtech’s commitment to shareholder engagement and transparency.

Samuels brings over 20 years of 
Wall Street
 experience from working at leading financial institutions, including UBS Global Wealth Management, where he served in the Chief Investment Office, producing company-specific and thematic research, as well as marketing collateral for the firm’s financial advisors and private clients. While at 
UBS, Samuels drove investment performance of tens of billions worth of assets, outperforming the sector benchmark and S&P 500 for five consecutive years.

“As we turn 
Comtech into becoming the most trusted provider of 
Failsafe Communications
, we want to increase engagement around our transformation with the entire financial community,” said  Michael Porcelain , President and CEO of 
Comtech. “Having a seasoned investment professional like Robert on our team strengthens our ability to tell Comtech’s compelling story and elevate our brand. Robert will assist Comtech’s leadership in its ongoing evaluation of potential new segment reporting and non-GAAP financial measures, and the roll out of our new social media initiatives. I am confident that with his expertise and fresh insights, Robert will make a strong contribution to Comtech.”

“I’ve focused my work on industries that impact people in their daily lives,” said  Robert Samuels. “What Comtech does is undeniably critical, as it provides 
Failsafe Communications
 that people, businesses, and governments know they can rely on, no matter where they are – on land, at sea, or in the air – and no matter what’s going on outside – from armed conflict to a natural disaster. I look forward to amplifying that exciting story and helping to convey the strong investment opportunity it represents.”

About Comtech

Comtech Telecommunications Corp. is a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies to commercial and government customers around the world. Headquartered in 
Melville, New York and with a passion for customer success, 
Comtech designs, produces and markets advanced and secure wireless solutions. For more information, please visit www.comtechtel.com (and preview its new website at www.comtech.com).

Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company’s 
Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such 
Securities and Exchange Commission filings.

PCMTL

View source version on businesswire.com: https://www.businesswire.com/news/home/20220408005385/en/

Investor Relations Robert Samuels 631-962-7102
robert.samuels@comtech.com

Source: 
Comtech Telecommunications Corp.

CoreCivic Delivers on Commitments to Reentry, Human Rights, Diversity, Environment, Community and Safety through Pandemic in Fourth Annual ESG Report

Research, News, and Market Data on CoreCivic

BRENTWOOD, Tenn., April 11, 2022 (GLOBE NEWSWIRE) — CoreCivic, Inc. (NYSE:CXW) today released its 2021
Environmental, Social and Governance (ESG) Report demonstrating how the company stayed committed to its mission to better the public good through the second year of the COVID-19 pandemic. This is the fourth annual report issued by CoreCivic since 2019.

The report details how CoreCivic continued to deliver life-changing reentry programming in 2021 by building relationships with community partners that helped bring educational and vocational training opportunities to residents, including online learning opportunities to keep everyone safe from COVID-19 transmission. These opportunities will help residents succeed in life after incarceration.

The report also shares CoreCivic’s newly adopted human rights policy and goals that will guide the company’s operations in the coming years. It shares how CoreCivic collaborated with community stakeholders and launched new partnerships with groups like the Frederick Douglass Project for Justice to facilitate meetings between residents and members of their communities. It also shows how CoreCivic delivered innovative solutions to government partners like a renewable three-year lease agreement with New Mexico enabling the state to assume operations of the Northwest New Mexico Correctional Center while CoreCivic maintains the facility.

Finally, the report details CoreCivic’s environmental impact and efforts to reduce waste, as well as water and energy usage. It also details CoreCivic’s new diversity, equity, and inclusion (DEI) roadmap for how the company will create a culture of understanding among employees and create a pipeline of diverse leadership talent so the company at all levels reflects its employees and the communities where it serves.

“Our company stayed strong through the tiresome reality of a stubborn, resurgent pandemic to deliver our mission to better the public good,” said Damon Hininger, president and CEO, CoreCivic. “I’m proud to lead a critically important enterprise like CoreCivic and fortunate to draw energy and inspiration from our people. Our team defines and practices flexibility and innovation each day. You witness it at the facilities, in the classrooms, at the meeting tables, around the neighborhoods we call home, and in the back office.”

The report also highlights how CoreCivic’s cumulative ESG efforts were recognized by Newsweek naming the company to its list of America’s Most Responsible Companies in 2021.

“I’m pleased with our progress in a difficult year, and I’m grateful for my colleagues who take our mission to better the public good to the forefront of all they do,” Hininger said. “I admire their resilience. I admire their emphasis on safety. I love the focus on second chances.”

Other topics discussed in the report include:

• CoreCivic’s nimble pandemic strategy, which led to an aggressive education campaign to help staff and residents understand the effectiveness of life-saving COVID-19 vaccines
• The launch of reentry programs at CoreCivic facilities across the country, including a culinary arts program at Lake Erie Correctional Institution in Ohio, a computer coding program at Red Rock Correctional Center in Colorado, and a carpentry program at Crowley County Correctional Facility in Colorado
• Community networking programs to help residents, like those at Cheyenne Transitional Center in Wyoming, connect with community members and match them with jobs
• The CoreCivic Foundation’s commitment of $700,000 to organizations that are expanding access to education, prioritizing criminal justice reform, and supporting minority-owned businesses
• The CoreCivic Foundation’s support for the Thurgood Marshall College Fund to bolster research by Historically Black Colleges and Universities (HBCUs) working to identify barriers to opportunity in criminal justice, education, and economic mobility
• The CoreCivic Foundation’s support for the Coalition to Back Black Businesses
• CoreCivic’s multi-year partnership with the Prison Fellowship’s Warden Exchange Program, a residency and online professional development program that enables wardens to share reentry best practices and discuss problem-solving in a peer group format
• CoreCivic’s advocacy for state and federal legislation aimed at reducing recidivism and removing barriers to reentry for returning citizens — including 700 letters of support for 24 bills covering reentry policy areas in Connecticut, Iowa, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, North Carolina, Washington, and the U.S. Congress

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 U.S. government agencies. 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.

Friday, April 08, 2022

Vectrus (VEC)
Refining Model and Budget Update

Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.

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.

Refining Model. We had an opportunity to speak with Vectrus management recently regarding our model for 2022. While we believe our annual numbers to be reasonable, we assumed a more historical split between first half and second half results than is likely to happen in 2022 as the Kwajalein and Ft. Benning contracts results in a more back weighted year. As a result, we have refined our model to reflect this.

Updated Guidance.  Our full year 2022 estimates remain unchanged: $1.86 billion of revenue, $86 million of adjusted EBITDA, EPS of $4.07, and adjusted EPS of $4.74. The quarterly cadence does change as we moved $38 million of revenue from the first half of the year into the second half. This results in 1Q22 revenue of $427 now, down from $445 million, and EPS of $0.60, down from a prior $0.73 …

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

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

 

Kratos Demonstrates All-Digital Multi-Mission Edge Capability at the 37th Space Symposium

Research, News, and Market Data on Kratos Defense & Security Solutions

 

Will Preview the Industry’s First Implementation of DIFI Compliant Digital Terminal Capability Running on COTS Hardware

SAN DIEGO, 
March 31, 2022 (GLOBE NEWSWIRE) — 
Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that along with technology partner 
Kymeta, it will provide live demonstrations of an all-digital multi-mission capability at the 37th Annual Space Symposium in 
Colorado Springs, Colorado, 
April 4-7.

The demonstrations will include Kratos’ OpenSpace™ Satcom and RF Carrier Analysis virtual network functions running on a generic (x86) compute device that is digitally paired with a 
Kymeta electronically steered antenna (ESA) mounted inside a tactical H2 vehicle. This virtual architecture enables a universally deployable solution within a broad range of resilient ground station and cloud environments.

This demonstration highlights the first ever implementation of the industry interoperability standard developed by the 
Digital Intermediate Frequency Interoperability (DIFI) Consortium inside a terminal application. DIFI members include the 
U.S. DoD CIO, 
U.S. Army, 
U.S. Navy, 
U.S. Space Force, DISA, as well as key commercial companies, and the standard has already been specified in at least one 
U.S. defense-related RFP. The industry’s growing adoption of the DIFI standard supports the DoD’s digital transformation goals, as well as freeing operators from the vendor lock-in characterized by proprietary systems.

“This demonstration will show that critical satellite network operations can be made increasingly virtual, interoperable and software-defined all the way to the network’s edge,” said  Kevin Tobias, Director of Edge Products at Kratos. “It is another step forward in proving that the ground layer can enable multi-orbit networks and multi-mission operations, for example Satcom, space domain awareness (SDA) and ISR together as dynamic, virtualized applications, and all supporting the DoD’s digital transformation goals and JADC2 principles regarding open-standards and interoperability.”

Attendees at the 37^th Annual Space Symposium can view these industry-first capabilities at the Kratos H2 located on site for demonstrations during exhibit hall hours, 
April 4-7, 2022. Visit Kratos booth 1140 in Bartolin Hall to schedule a demo.

About Kratos OpenSpace
Kratos’ OpenSpace family of solutions enables the digital transformation of satellite ground systems to become a more dynamic and powerful part of the space network. The family consists of three product lines: OpenSpace SpectralNet for converting satellite RF signals to be used in digital environments; OpenSpace quantum products, which are virtual versions of traditional hardware components; and the OpenSpace Platform, the first commercially available, fully orchestrated, software-defined ground system. These three OpenSpace lines enable satellite operators and other service providers to implement digital operations at their own pace and in ways that meet their unique mission goals and business models. For more information about the OpenSpace family visit http://KratosDefense.com/OpenSpace.

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 Demonstrates All-Digital Multi-Mission Edge Capability at the 37th Space Symposium

Research, News, and Market Data on Kratos Defense & Security Solutions

 

Will Preview the Industry’s First Implementation of DIFI Compliant Digital Terminal Capability Running on COTS Hardware

SAN DIEGO, 
March 31, 2022 (GLOBE NEWSWIRE) — 
Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, announced today that along with technology partner 
Kymeta, it will provide live demonstrations of an all-digital multi-mission capability at the 37th Annual Space Symposium in 
Colorado Springs, Colorado, 
April 4-7.

The demonstrations will include Kratos’ OpenSpace™ Satcom and RF Carrier Analysis virtual network functions running on a generic (x86) compute device that is digitally paired with a 
Kymeta electronically steered antenna (ESA) mounted inside a tactical H2 vehicle. This virtual architecture enables a universally deployable solution within a broad range of resilient ground station and cloud environments.

This demonstration highlights the first ever implementation of the industry interoperability standard developed by the 
Digital Intermediate Frequency Interoperability (DIFI) Consortium inside a terminal application. DIFI members include the 
U.S. DoD CIO, 
U.S. Army, 
U.S. Navy, 
U.S. Space Force, DISA, as well as key commercial companies, and the standard has already been specified in at least one 
U.S. defense-related RFP. The industry’s growing adoption of the DIFI standard supports the DoD’s digital transformation goals, as well as freeing operators from the vendor lock-in characterized by proprietary systems.

“This demonstration will show that critical satellite network operations can be made increasingly virtual, interoperable and software-defined all the way to the network’s edge,” said  Kevin Tobias, Director of Edge Products at Kratos. “It is another step forward in proving that the ground layer can enable multi-orbit networks and multi-mission operations, for example Satcom, space domain awareness (SDA) and ISR together as dynamic, virtualized applications, and all supporting the DoD’s digital transformation goals and JADC2 principles regarding open-standards and interoperability.”

Attendees at the 37^th Annual Space Symposium can view these industry-first capabilities at the Kratos H2 located on site for demonstrations during exhibit hall hours, 
April 4-7, 2022. Visit Kratos booth 1140 in Bartolin Hall to schedule a demo.

About Kratos OpenSpace
Kratos’ OpenSpace family of solutions enables the digital transformation of satellite ground systems to become a more dynamic and powerful part of the space network. The family consists of three product lines: OpenSpace SpectralNet for converting satellite RF signals to be used in digital environments; OpenSpace quantum products, which are virtual versions of traditional hardware components; and the OpenSpace Platform, the first commercially available, fully orchestrated, software-defined ground system. These three OpenSpace lines enable satellite operators and other service providers to implement digital operations at their own pace and in ways that meet their unique mission goals and business models. For more information about the OpenSpace family visit http://KratosDefense.com/OpenSpace.

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

Department of Defense Selects Vectrus for Development of 5G Smart Warehouse

Research, News, and Market Data on Vectrus

 

COLORADO SPRINGS, Colo., March 16, 2022 /PRNewswire/ — Vectrus, Inc. (NYSE: VEC) has been selected by the Department of Defense to complete the final phases of application development for a 5G Smart Warehouse at Naval Base Coronado (NBC). The NBC 5G Smart Warehouse Assessment Team conducted a down select during Phase 1, comparing application solutions from three companies including Vectrus. This effort is part of the DoD’s $600 million 5G experimentation and testing initiative, originally awarded in 2020. Vectrus successfully demonstrated a Converged Environment solution, addressing NAVSUP operational challenges through the implementation of advanced technology applications.

Vectrus’ solutions focused on increasing efficiency, reducing costs, improving readiness and cybersecurity, and strengthening national security. The NBC 5G Smart Warehouse Assessment Team participated in live demonstrations of technologies at the 5G Converged Environment Smart Warehouse – Vectrus’ 5G smart technology testbed – just outside of Richmond, Virginia.

The smart warehouse is a realization of Vectrus’ Converged Environment concept, bringing together the support services, including base operations support, supply chain and logistics, IT and network operations, engineering and digital integration, and security, in one synchronized environment.

“The smart warehouse will serve as a test bed for refining, validating and operationalizing 5G-enabled technologies,” said Corinne Minton-Package, Senior Vice President of Systems and Technology at Vectrus. “This high-tech warehouse will more efficiently facilitate the transshipment between shore facilities and naval units. Our work at Naval Base Coronado will bring next generation efficiencies to naval logistics operations.”

About Vectrus

Vectrus, a defense technology company, has provided mission critical support for the toughest operational challenges our customers have faced for more than 70 years. We leverage emerging technologies, unmatched technical expertise, exceptional talent, and deep domain knowledge to deliver innovative solutions for military and government customers worldwide. Whether it’s base operations support, converged environment solutions, 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.

Media Contact:

Mike Smith, CFA
719-637-5773
michael.smith@vectrus.com

SOURCE Vectrus, Inc.

Department of Defense Selects Vectrus for Development of 5G Smart Warehouse

Research, News, and Market Data on Vectrus

 

COLORADO SPRINGS, Colo., March 16, 2022 /PRNewswire/ — Vectrus, Inc. (NYSE: VEC) has been selected by the Department of Defense to complete the final phases of application development for a 5G Smart Warehouse at Naval Base Coronado (NBC). The NBC 5G Smart Warehouse Assessment Team conducted a down select during Phase 1, comparing application solutions from three companies including Vectrus. This effort is part of the DoD’s $600 million 5G experimentation and testing initiative, originally awarded in 2020. Vectrus successfully demonstrated a Converged Environment solution, addressing NAVSUP operational challenges through the implementation of advanced technology applications.

Vectrus’ solutions focused on increasing efficiency, reducing costs, improving readiness and cybersecurity, and strengthening national security. The NBC 5G Smart Warehouse Assessment Team participated in live demonstrations of technologies at the 5G Converged Environment Smart Warehouse – Vectrus’ 5G smart technology testbed – just outside of Richmond, Virginia.

The smart warehouse is a realization of Vectrus’ Converged Environment concept, bringing together the support services, including base operations support, supply chain and logistics, IT and network operations, engineering and digital integration, and security, in one synchronized environment.

“The smart warehouse will serve as a test bed for refining, validating and operationalizing 5G-enabled technologies,” said Corinne Minton-Package, Senior Vice President of Systems and Technology at Vectrus. “This high-tech warehouse will more efficiently facilitate the transshipment between shore facilities and naval units. Our work at Naval Base Coronado will bring next generation efficiencies to naval logistics operations.”

About Vectrus

Vectrus, a defense technology company, has provided mission critical support for the toughest operational challenges our customers have faced for more than 70 years. We leverage emerging technologies, unmatched technical expertise, exceptional talent, and deep domain knowledge to deliver innovative solutions for military and government customers worldwide. Whether it’s base operations support, converged environment solutions, 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.

Media Contact:

Mike Smith, CFA
719-637-5773
michael.smith@vectrus.com

SOURCE Vectrus, Inc.

Thursday, March 10, 2022

Vectrus (VEC)
Sell-off Overdone – Favorable Risk/Reward

Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.

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.

Sell-off Overdone. VEC shares are off approximately 21% since the announcement of the Vertex combination. We believe this reaction to be overdone, presenting investors a favorable risk/reward opportunity. Assuming 31.6 million shares outstanding after the combination and $1.1 billion of debt, at our $62 price target, the combined entity would trade at 10.8x 2021 pro forma adjusted EBITDA and 0.9x pro forma revenue, multiples still below its peer group.

Moody’s Upgrade? On Tuesday, Moody’s placed all ratings of Vertex on review for upgrade, stating “Moody’s recognizes the strategic rationale for the transaction, as the combined companies will enhance their technology and service capabilities, while increasing scale and expanding the bid pipeline.”  Moody’s does point out integration risk, heightened by Vertex’s acquisition of the Raytheon businesses …

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

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

Thursday, March 10, 2022

Vectrus (VEC)
Sell-off Overdone – Favorable Risk/Reward

Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.

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.

Sell-off Overdone. VEC shares are off approximately 21% since the announcement of the Vertex combination. We believe this reaction to be overdone, presenting investors a favorable risk/reward opportunity. Assuming 31.6 million shares outstanding after the combination and $1.1 billion of debt, at our $62 price target, the combined entity would trade at 10.8x 2021 pro forma adjusted EBITDA and 0.9x pro forma revenue, multiples still below its peer group.

Moody’s Upgrade? On Tuesday, Moody’s placed all ratings of Vertex on review for upgrade, stating “Moody’s recognizes the strategic rationale for the transaction, as the combined companies will enhance their technology and service capabilities, while increasing scale and expanding the bid pipeline.”  Moody’s does point out integration risk, heightened by Vertex’s acquisition of the Raytheon businesses …

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

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