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Wednesday, August 03, 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.
2Q22 Results. Sounding like a broken record, GEO posted above expected operating results for 2Q22. Revenue for the quarter came in at $588.2 million, up from $565.4 million a year ago. Adjusted EBITDA totaled $132.3 million, AFFO was $0.69 per diluted share, EPS was $0.37, and adjusted net income $0.42 per share. In the year ago period, GEO reported $118.4 million, $0.71, $0.29, and $0.41, respectively. We had forecast $560 million, $98.5 million, $0.58, $0.32, and $0.32, respectively. GEO’s results highlight the resiliency of the business model, in our opinion.
Drivers. Many parts of GEO’s business continue to show operating strength, driving the better than expected performance. BI continues to be an exceptional performer, while the Secured Services continues to perform even in the face of various headwinds….
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.
Research, News, and Market Data on CoreCivic
BRENTWOOD, Tenn., Aug. 02, 2022 (GLOBE NEWSWIRE) — CoreCivic, Inc. (NYSE: CXW) (the Company) announced today its financial results for the second quarter of 2022 and provided an update on several significant transactions, including an increase in its share buyback program.
Damon T. Hininger, CoreCivic’s President and Chief Executive Officer, said, “We are pleased to have entered into an agreement during the second quarter to sell our 1,978-bed McRae Correctional Facility for a sale price of $130.0 million. This sale, which is expected to close later in the third quarter, will result in a gain on sale of $75.0 million to $80.0 million. The sale price represents approximately $66,000 per bed which, when used to approximate the value of our over 70,000 company-owned correctional beds, indicates a real estate value in excess of $4 billion, demonstrating the value of our portfolio. Monetizing this asset will generate additional liquidity, which we can use for general corporate purposes, including for our share repurchase program, which our board just increased to $225.0 million, and/or for additional debt reduction.
Hininger continued, “Our second quarter operations were affected by short-term earnings disruptions from transitioning populations at our La Palma Correctional Center in Arizona from an ICE population to an Arizona population, as a result of the previously announced state contract award, and a challenging labor market. Despite the short-term earnings disruption at the La Palma facility that we expect to normalize in the first quarter of 2023, we continue to make great strides in improving the position of our balance sheet, and we were able to begin returning capital to shareholders through our share repurchase authorization. We are pleased with our operational and financial performance and are confident in the long-term outlook for returning to earnings growth.”
Financial Highlights – Second Quarter 2022
Second Quarter 2022 Financial Results Compared With Second
Quarter 2021
Net income in the second quarter of 2022 totaled $10.6 million, or $0.09 per diluted share, compared with net income in the second quarter of 2021 of $15.6 million, or $0.13 per diluted share. Adjusted for special items, adjusted net income in the second quarter of 2022 was $16.2 million, or $0.13 per diluted share (Adjusted Diluted EPS), compared with adjusted net income in the second quarter of 2021 of $31.1 million, or $0.25 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 transitioning to a new contract with the state of Arizona at our 3,060-bed La Palma Correctional Center in Arizona, the non-renewal of contracts in 2021 with the United States Marshals Service (USMS) at the 1,033-bed Leavenworth Detention Center in Kansas and the 600-bed West Tennessee Detention Facility, and the expiration of a managed-only contract with Marion County, Indiana at the Marion County Jail, which the County replaced with a newly constructed facility. We have two remaining direct contracts with the USMS expiring in 2023 and 2025, and we will work with the USMS to enable it to continue to fulfill its mission. Our renewal rate on owned and controlled facilities remained high at 95% over the previous five years. We believe our renewal rate on existing contracts remains high due to a variety of reasons including the aged and constrained supply of available beds within the U.S. correctional system, our ownership of the majority of the beds we operate, and the cost effectiveness of the services we provide.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $71.1 million in the second quarter of 2022, compared with $82.1 million in the second quarter of 2021. Adjusted EBITDA was $78.8 million in the second quarter of 2022, compared with $101.7 million in the second quarter of 2021. Adjusted EBITDA decreased from the prior year quarter primarily due to the sale of five non-core properties in our Properties segment and two under-utilized facilities in our Community segment, which generated $4.4 million in Adjusted EBITDA in the second quarter of 2021, the aforementioned transition of offender populations at our La Palma Correctional Center, which resulted in a reduction in EBITDA of $10.8 million, and the aforementioned non-renewal of contracts at three facilities that collectively resulted in a reduction in EBITDA of $4.5 million from the second quarter of 2021 to the second quarter of 2022.
Funds From Operations (FFO) was $34.3 million, or $0.28 per diluted share, in the second quarter of 2022, compared to $11.4 million, or $0.09 per diluted share, in the second quarter of 2021. Normalized FFO, which excludes special items, was $40.7 million, or $0.34 per diluted share, in the second quarter of 2022, compared with $56.0 million, or $0.46 per diluted share, in the second quarter of 2021. Normalized FFO was negatively impacted by the same factors that affected Adjusted EBITDA.
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.
New Bank Credit Facility
On May 12, 2022, we entered into a Third Amended and Restated Credit Agreement (New Bank Credit Facility) in an aggregate principal amount of $350.0 million, consisting of a $100.0 million Term Loan A and a revolving credit facility with a borrowing capacity of $250.0 million, which remains undrawn. The New Bank Credit Facility matures in May 2026 and replaced an existing facility (Previous Bank Credit Facility), which was scheduled to expire in April 2023. The interest rates applicable to the New Bank Credit Facility are tiered based on the then-current total leverage ratio. Based on our current total leverage ratio, loans under the New Bank Credit Facility currently bear interest at a base rate plus a margin of 2.25% or at the Bloomberg Short-Term Bank Yield Index (BSBY) rate plus a margin of 3.25%. In connection with obtaining the New Bank Credit Facility, we paid-down the previous Term Loan A by $67.5 million, and recorded a charge of $0.8 million for the write-off of deferred loan costs associated with the Previous Bank Credit Facility.
Additional Debt Repayments
On May 19, 2022, we announced we voluntarily repaid the remaining $124.1 million outstanding principal balance under our Term Loan B, and satisfied all of our outstanding debt obligations under the agreement. We did not incur any prepayment penalties in connection with the repayment of the Term Loan B, which had a scheduled maturity of December 18, 2024. In connection with the prepayment, we recorded a charge of $6.0 million for the write-off of deferred loan costs, original issue discount and fees and expenses associated with the prepayment of the Term Loan B. The prepayment was made in full with cash on hand.
During the second quarter of 2022, we also purchased an additional $3.6 million of our 4.625% Senior Notes at a weighted average price approximately equal to par in open market purchases, reducing the outstanding balance of the 4.625% Senior Notes to $170.1 million.
Share Repurchases
On August 2, 2022, our Board of Directors authorized an increase in our share repurchase program of up to an additional $75.0 million in shares of our common stock. As a result of the increased authorization, the aggregate authorization under our share repurchase program increased from the original authorization of up to $150.0 million in shares of our common stock to up to $225.0 million shares of our common stock. Since May 16, 2022 through August 1, 2022, we have repurchased 4.2 million shares of our common stock at an aggregate purchase price of $50.6 million, excluding fees, commissions and other costs related to repurchases.
We currently have approximately $174.4 million remaining under the Board authorized share repurchase plan. Additional repurchases of common stock will be made in accordance with applicable securities laws and may be made at management’s discretion within parameters set by the Board of Directors from time to time in the open market, through privately negotiated transactions, or otherwise. The share repurchase program has no time limit and does not obligate us to purchase any particular amount of our common stock. The authorization for the share repurchase program may be terminated, suspended, increased or decreased by our Board in its discretion at any time.
Business Updates
Asset Sales. On July 25, 2022, we entered into a Purchase & Sale Agreement with the Georgia Building Authority to purchase our 1,978-bed McRae Correctional Facility in McRae, Georgia for a price of $130.0 million. We currently have a management contract with the Federal Bureau of Prisons (BOP) at the McRae Facility, which expires November 30, 2022. As previously disclosed, we do not expect the contract at the McRae facility to be renewed upon its expiration. We also entered into an agreement to lease the McRae facility from the Georgia Building Authority through November 30, 2022. We expect the sale, which is subject to customary closing conditions, to be completed during the third quarter of 2022. On July 19, 2022, we completed the sale of our Stockton Female Community Corrections Facility and our Long Beach Community Corrections Center, both located in California, to a third-party that resulted in net sales proceeds of $10.9 million. On July 20, 2022, we also completed the sale of an undeveloped parcel of land in California that resulted in net sales proceeds of $4.8 million.
We currently intend to use the net proceeds from the sales for general corporate purposes, which may include making repurchases under our share repurchase plan and/or reducing our outstanding indebtedness.
CoreCivic Safety and Community Contract Renewals. During the second quarter of 2022, we successfully renewed contracts with multiple government partners:
2022 Financial Guidance
Based on current business conditions, the Company is providing the following update to its financial guidance for the full year 2022:
|
|
Guidance |
Prior Guidance |
|
$106.6 million – |
$77.1 million – |
|
$52.0 million – |
$75.5 million – |
|
$0.89 – $0.99 |
$0.64 – $0.79 |
|
$0.44 – $0.50 |
$0.63 – $0.77 |
|
$1.19 – $1.26 |
$1.45 – $1.60 |
|
$1.25 – $1.32 |
$1.45 – $1.60 |
|
$375.2 million – |
$336.1 million – |
|
$299.0 million – |
$333.9 million – |
Our updated 2022 guidance reflects a delay in 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 with an effective date of May 23, 2022. However, on April 25, 2022, a federal judge issued a temporary restraining order blocking its termination, and on May 20, 2022, ruled that the administration violated administrative law when it announced that it planned to cease Title 42. That ruling is under appeal with a decision unlikely before the first quarter of 2023. 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 prior guidance anticipated higher occupancy levels from ICE from the potential termination of Title 42, which is no longer contemplated in our current guidance.
Our updated 2022 guidance also reflects a larger earnings disruption at our La Palma Correctional Center than previously estimated. During the second quarter of 2022, we agreed with the state of Arizona to extend the transition period from the fourth quarter of 2022 to the first quarter of 2023. However, we still expect the final ICE detainees to be transferred out of the La Palma facility during the third quarter of 2022. Our 2022 guidance also reflects the continuation of a challenging labor market, including above average wage inflation.
During 2022, we expect to invest $79.5 million to $84.0 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 $16.0 million to $18.0 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 second 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 third quarter of 2022. Written materials used in the investor presentations will also be available on our website beginning on or about August 12, 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 Wednesday, August 3, 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 888-221-3881 in the U.S. and Canada, including the confirmation passcode 8733680. 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 August 3, 2022, through 1:15 p.m. central time (2:15 p.m. eastern time) on August 11, 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 8733680.
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 and on May 20, 2022, ruled that the administration violated administrative law when it announced that it planned to cease 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. 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 |
|
June 30, |
|
December 31, |
||||
|
|
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
115,611 |
|
|
$ |
299,645 |
|
|
Restricted cash |
|
|
11,794 |
|
|
|
11,062 |
|
|
Accounts receivable, net of credit loss reserve of $8,946 and $7,931, respectively |
|
|
273,839 |
|
|
|
282,809 |
|
|
Prepaid expenses and other current assets |
|
|
42,413 |
|
|
|
26,872 |
|
|
Assets held for sale |
|
|
61,587 |
|
|
|
6,996 |
|
|
Total current assets |
|
|
505,244 |
|
|
|
627,384 |
|
|
Real estate and related assets: |
|
|
|
|
||||
|
Property and equipment, net of accumulated depreciation of $1,671,088 and $1,657,709, respectively |
|
|
2,197,463 |
|
|
|
2,283,256 |
|
|
Other real estate assets |
|
|
213,164 |
|
|
|
218,915 |
|
|
Goodwill |
|
|
4,844 |
|
|
|
4,844 |
|
|
Other assets |
|
|
355,815 |
|
|
|
364,539 |
|
|
|
|
|
|
|
||||
|
Total assets |
|
$ |
3,276,530 |
|
|
$ |
3,498,938 |
|
|
|
|
|
|
|
||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
|
|
|
|
|
|
||||
|
Accounts payable and accrued expenses |
|
$ |
294,435 |
|
|
$ |
305,592 |
|
|
Current portion of long-term debt |
|
|
180,378 |
|
|
|
35,376 |
|
|
Total current liabilities |
|
|
474,813 |
|
|
|
340,968 |
|
|
|
|
|
|
|
||||
|
Long-term debt, net |
|
|
1,148,679 |
|
|
|
1,492,046 |
|
|
Deferred revenue |
|
|
25,070 |
|
|
|
27,551 |
|
|
Non-current deferred tax liabilities |
|
|
91,828 |
|
|
|
88,157 |
|
|
Other liabilities |
|
|
167,200 |
|
|
|
177,748 |
|
|
|
|
|
|
|
||||
|
Total liabilities |
|
|
1,907,590 |
|
|
|
2,126,470 |
|
|
|
|
|
|
|
||||
|
Commitments and contingencies |
|
|
|
|
||||
|
|
|
|
|
|
||||
|
Preferred stock ? $0.01 par value; 50,000 shares authorized; none issued and outstanding at June 30, 2022, and December 31, 2021, respectively |
|
|
– |
|
|
|
– |
|
|
Common stock ? $0.01 par value; 300,000 shares authorized; 118,620 and 120,285 shares issued and outstanding at June 30, 2022, and December 31, 2021, respectively |
|
|
1,186 |
|
|
|
1,203 |
|
|
Additional paid-in capital |
|
|
1,836,949 |
|
|
|
1,869,955 |
|
|
Accumulated deficit |
|
|
(469,195 |
) |
|
|
(498,690 |
) |
|
Total stockholders’ equity |
|
|
1,368,940 |
|
|
|
1,372,468 |
|
|
|
|
|
|
|
||||
|
Total liabilities and stockholders’ equity |
|
$ |
3,276,530 |
|
|
$ |
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 |
||||||
|
|
2022 |
|
2021 |
||||
|
|
|
|
|
||||
|
REVENUE: |
|
|
|
||||
|
Safety |
$ |
416,354 |
|
|
$ |
419,880 |
|
|
Community |
|
25,775 |
|
|
|
24,929 |
|
|
Properties |
|
14,526 |
|
|
|
19,732 |
|
|
Other |
|
42 |
|
|
|
30 |
|
|
|
|
456,697 |
|
|
|
464,571 |
|
|
|
|
|
|
||||
|
EXPENSES: |
|
|
|
||||
|
Operating |
|
|
|
||||
|
Safety |
|
324,261 |
|
|
|
307,280 |
|
|
Community |
|
21,282 |
|
|
|
20,024 |
|
|
Properties |
|
3,377 |
|
|
|
5,668 |
|
|
Other |
|
80 |
|
|
|
98 |
|
|
Total operating expenses |
|
349,000 |
|
|
|
333,070 |
|
|
General and administrative |
|
31,513 |
|
|
|
33,228 |
|
|
Depreciation and amortization |
|
32,259 |
|
|
|
34,084 |
|
|
Shareholder litigation expense |
|
1,900 |
|
|
|
2,550 |
|
|
Asset impairments |
|
– |
|
|
|
2,866 |
|
|
|
|
414,672 |
|
|
|
405,798 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
OTHER INCOME (EXPENSE): |
|
|
|
||||
|
Interest expense, net |
|
(21,668 |
) |
|
|
(23,222 |
) |
|
Expenses associated with debt repayments and refinancing transactions |
|
(6,805 |
) |
|
|
(52,167 |
) |
|
Gain on sale of real estate assets, net |
|
1,060 |
|
|
|
38,766 |
|
|
Other income (expense) |
|
(37 |
) |
|
|
(8 |
) |
|
|
|
|
|
||||
|
|
|
|
|
||||
|
INCOME BEFORE INCOME TAXES |
|
14,575 |
|
|
|
22,142 |
|
|
|
|
|
|
||||
|
Income tax expense |
|
(4,013 |
) |
|
|
(6,519 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
||||
|
BASIC EARNINGS PER SHARE |
$ |
0.09 |
|
|
$ |
0.13 |
|
|
|
|
|
|
||||
|
DILUTED EARNINGS PER SHARE |
$ |
0.09 |
|
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
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 |
||||||
|
|
2022 |
|
2021 |
||||
|
|
|
|
|
||||
|
Net income |
$ |
10,562 |
|
|
$ |
15,623 |
|
|
|
|
|
|
||||
|
Special items: |
|
|
|
||||
|
Expenses associated with debt repayments and refinancing transactions |
|
6,805 |
|
|
|
52,167 |
|
|
Expenses associated with COVID-19 |
|
– |
|
|
|
836 |
|
|
Gain on sale of real estate assets, net |
|
(1,060 |
) |
|
|
(38,766 |
) |
|
Shareholder litigation expense |
|
1,900 |
|
|
|
2,550 |
|
|
Asset impairments |
|
– |
|
|
|
2,866 |
|
|
Income tax benefit for special items |
|
(2,041 |
) |
|
|
(4,185 |
) |
|
Adjusted net income |
$ |
16,166 |
|
|
$ |
31,091 |
|
|
Weighted average common shares outstanding – basic |
|
120,529 |
|
|
|
120,283 |
|
|
Effect of dilutive securities: |
|
|
|
||||
|
Restricted stock-based awards |
|
817 |
|
|
|
434 |
|
|
Non-controlling interest – operating partnership units |
|
– |
|
|
|
1,342 |
|
|
Weighted average shares and assumed conversions – diluted |
|
121,346 |
|
|
|
122,059 |
|
|
Adjusted Earnings Per Diluted Share |
$ |
0.13 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
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 |
||||||
|
|
2022 |
|
2021 |
||||
|
|
|
|
|
||||
|
Net income |
$ |
10,562 |
|
|
$ |
15,623 |
|
|
Depreciation and amortization of real estate assets |
|
24,501 |
|
|
|
24,926 |
|
|
Gain on sale of real estate assets, net |
|
(1,060 |
) |
|
|
(38,766 |
) |
|
Income tax expense for special items |
|
283 |
|
|
|
9,641 |
|
|
Funds From Operations |
$ |
34,286 |
|
|
$ |
11,424 |
|
|
|
|
|
|
||||
|
Expenses associated with debt repayments and refinancing transactions |
|
6,805 |
|
|
|
52,167 |
|
|
Expenses associated with COVID-19 |
|
– |
|
|
|
836 |
|
|
Income taxes associated with change in corporate tax structure and other special tax items |
|
– |
|
|
|
– |
|
|
Shareholder litigation expense |
|
1,900 |
|
|
|
2,550 |
|
|
Goodwill and other impairments |
|
– |
|
|
|
2,866 |
|
|
Income tax benefit for special items |
|
(2,324 |
) |
|
|
(13,826 |
) |
|
Normalized Funds From Operations |
$ |
40,667 |
|
|
$ |
56,017 |
|
|
|
|
|
|
||||
|
Funds From Operations Per Diluted Share |
$ |
0.28 |
|
|
$ |
0.09 |
|
|
Normalized Funds From Operations Per Diluted Share |
$ |
0.34 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
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 |
||||||
|
|
2022 |
|
2021 |
||||
|
|
|
|
|
||||
|
Net income |
$ |
10,562 |
|
|
$ |
15,623 |
|
|
Interest expense |
|
24,292 |
|
|
|
25,843 |
|
|
Depreciation and amortization |
|
32,259 |
|
|
|
34,084 |
|
|
Income tax expense |
|
4,013 |
|
|
|
6,519 |
|
|
EBITDA |
$ |
71,126 |
|
|
$ |
82,069 |
|
|
Expenses associated with debt repayments and refinancing transactions |
|
6,805 |
|
|
|
52,167 |
|
|
Expenses associated with COVID-19 |
|
– |
|
|
|
836 |
|
|
Gain on sale of real estate assets, net |
|
(1,060 |
) |
|
|
(38,766 |
) |
|
Shareholder litigation expense |
|
1,900 |
|
|
|
2,550 |
|
|
Asset impairments |
|
– |
|
|
|
2,866 |
|
|
Adjusted EBITDA |
$ |
78,771 |
|
|
$ |
101,722 |
|
|
|
|
|
|
|
|
|
|
GUIDANCE — CALCULATION OF ADJUSTED NET INCOME, FUNDS FROM
OPERATIONS, EBITDA & ADJUSTED EBITDA
|
|
For the Year Ending |
||||||
|
|
Low End of Guidance |
|
High End of Guidance |
||||
|
Net income |
$ |
106,610 |
|
|
$ |
118,235 |
|
|
Expenses associated with debt repayments and refinancing transactions |
|
6,805 |
|
|
|
6,805 |
|
|
Gain on sale of real estate assets, net |
|
(84,921 |
) |
|
|
(89,921 |
) |
|
Shareholder litigation expense |
|
1,900 |
|
|
|
1,900 |
|
|
Income tax expense for special items |
|
21,606 |
|
|
|
22,981 |
|
|
Adjusted net income |
$ |
52,000 |
|
|
$ |
60,000 |
|
|
|
|
|
|
||||
|
Net income |
$ |
106,610 |
|
|
$ |
118,235 |
|
|
Depreciation and amortization of real estate assets |
|
97,000 |
|
|
|
97,500 |
|
|
Gain on sale of real estate assets, net |
|
(84,921 |
) |
|
|
(89,921 |
) |
|
Income tax expense for special items |
|
23,356 |
|
|
|
24,731 |
|
|
Funds From Operations |
$ |
142,045 |
|
|
$ |
150,545 |
|
|
Expenses associated with debt repayments and refinancing transactions |
|
6,805 |
|
|
|
6,805 |
|
|
Shareholder litigation expense |
|
1,900 |
|
|
|
1,900 |
|
|
Income tax expense for special items |
|
(1,750 |
) |
|
|
(1,750 |
) |
|
Normalized Funds From Operations |
$ |
149,000 |
|
|
$ |
157,500 |
|
|
Diluted EPS |
$ |
0.89 |
|
|
$ |
0.99 |
|
|
Adjusted diluted EPS |
$ |
0.44 |
|
|
$ |
0.50 |
|
|
FFO per diluted share |
$ |
1.19 |
|
|
$ |
1.26 |
|
|
Normalized FFO per diluted share |
$ |
1.25 |
|
|
$ |
1.32 |
|
|
|
|
|
|
||||
|
Net income |
$ |
106,610 |
|
|
$ |
118,235 |
|
|
Interest expense |
|
98,000 |
|
|
|
97,000 |
|
|
Depreciation and amortization |
|
128,000 |
|
|
|
128,000 |
|
|
Income tax expense |
|
42,606 |
|
|
|
42,981 |
|
|
EBITDA |
$ |
375,216 |
|
|
$ |
386,216 |
|
|
Expenses associated with debt repayments and refinancing transactions |
|
6,805 |
|
|
|
6,805 |
|
|
Gain on sale of real estate assets, net |
|
(84,921 |
) |
|
|
(89,921 |
) |
|
Shareholder litigation expense |
|
1,900 |
|
|
|
1,900 |
|
|
Adjusted EBITDA |
$ |
299,000 |
|
|
$ |
305,000 |
|
|
|
|
|
|
|
|
|
|
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 |
Research, News, and Market Data on CoreCivic
BRENTWOOD, Tenn., July 25, 2022 (GLOBE NEWSWIRE) — CoreCivic, Inc. (NYSE: CXW) (the Company) announced today that it will release its 2022 second quarter financial results after the market closes on Tuesday, August 2, 2022.
A live broadcast of CoreCivic’s conference call will begin at 10:00 a.m. central time (11:00 a.m. eastern time) on Wednesday, August 3, 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 888-221-3881 in the U.S. and Canada, including the confirmation passcode 8733680. 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 August 3, 2022, through 1:15 p.m. central time (2:15 p.m. eastern time) on August 11, 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 8733680.
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.
|
Contact: |
Investors: Cameron Hopewell – Managing Director, Investor Relations – (615) 263-3024 |
Image Credit: Thomas Hawk (Flickr)
The story about Twitter (TWTR), Elon Musk’s Tesla (TSLA), and Trump Media & Technology (DWAC, *TMTR), can be viewed as a story of relationships. That is the relationship between the stocks of a social media start-up with aspirations to be unrestricted, a firmly entrenched social media giant, and a rich entrepreneur with aspirations to buy the entrenched social media giant to make it less restrictive.
The stock price relationship between all of the above tells a story that investors can pull ideas from, especially if this is not the story’s end. In this case the best way to understand the not-so-complicated relationship is by looking at the chart below of the companie’s three tickers and the S&P 500.
Flashback to early April when Musk put out a few tweets suggesting he may be interested in buying Twitter. The SPAC waiting to close on Trump
Media fell in an equal amount to the rise in Twitter’s value. Beginning on April 14th when a final deal was struck between Elon Musk and Twitter’s Board, they again ran in equal and opposite directions, again with Twitter rising. For Tesla’s part, while the founder was borrowing against shares, the stock seemed to get an early bounce on the Twitter purchase news and then followed and performed similar to the overall market.
Source: Koyfin
Over the months that followed TWTR and DWAC seemed to trade disconnected. That is until last week when there was updated news to trade from. The news started as a rumor, and became official on Friday, Elon Musk withdrew his tender offer. One can see on the below chart that while Twitter traded off on the rumor and then the news, the SPAC in the de-SPAC
phase rose significantly.
While the financialnews had focused on the drama unfolding between the richest man in the world, and a company people love to hate, the start-up with ties to ex-President Donald Trump had been impacted in ways that investors could have benefitted from. In short when Elon Musk was going to buy Twitter, Trump Media’s value was negatively impacted, when Musk later took steps to rescind his tender offer Trump Media’s value was positively impacted.
If the saga is not over, expect more negative correlation between TWTR and the current ticker DWAC. Twitter’s board announced it decided to fight Musk’s decision to renege on his offer in court. This is an interesting turnaround from when the board first sought to decline and fight Musk’s offer. The saga is not likely to fade from the headlines quickly. And for Elon’s part, anyone that personally owns a company that launches rockets into space can tell you, that deciding to scrub a launch does not mean that it can’t be rescheduled.
Managing Editor, Channelchek
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Sources
https://www.cnbc.com/2022/07/11/twitter-shares-sink-after-elon-musk-terminates-44-billion-deal.html
Proposed acquisition of Twitter by Elon Musk – Wikipedia
https://investorplace.com/2022/07/why-is-digital-world-dwac-stock-roaring-higher-today/
https://app.koyfin.com/share/5629e1d417
Stay up to date. Follow us:
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Image Credit: Chris LeBoutillier (Pexels)
The U.S. Securities and Exchange Commission is considering requiring publicly traded U.S. companies to disclose the climate-related risks they face. Republican state officials, emboldened by a recent Supreme Court
ruling, are already threatening to sue, claiming regulators don’t have the authority.
While the debate heats up, what’s surprisingly missing is a discussion about whether disclosures actually influence corporate behavior.
An underlying premise of financial disclosures is that what gets measured is more likely to be managed. But do corporations that disclose climate change information actually reduce their carbon footprints?
| 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 Lily Hsueh, Associate Professor of Economics and Public Policy, Arizona State University. |
I’m a professor of economics and public policy, and my research shows that while carbon disclosure encourages some improvement, it is not enough by itself to ensure that companies’ greenhouse gas emissions fall. Worse still, some companies use it to obfuscate and enable greenwashing – false or misleading advertising claiming a company is more environmentally or socially responsible than it really is.
I believe the SEC has an unprecedented opportunity to design a program that is greenwashing-resistant.
Disclosure Doesn’t Always Mean Less Carbon
Although carbon disclosure is often held up as an indicator of corporate social responsibility, the data tells a more nuanced story.
I investigated the carbon disclosures made by nearly 600 companies that were listed in the S&P 500 index at least once between 2011 and 2016. The disclosures were made to CDP, formerly the Carbon Disclosure Project, a nonprofit organization that surveys companies and governments about their carbon emissions and management. More than half of all S&P 500 firms respond to its requests for information.
At first glance, one might think that a mandated, unified framework for reporting companies’ climate management and risk data and their greenhouse gas emissions, such as the one proposed by the SEC, is likely to lead to more efficient use of fossil fuels, lowering emissions as the economy grows.
I did find that companies that have proactively disclosed their emissions to CDP on average reduced their entitywide carbon emissions intensity by at least one measure: carbon emissions per capita of full-time employees. This means that as a company increases in size, it is estimated to reduce its carbon footprint on a per-employee basis. This does not, however, necessarily translate to a reduction in a company’s overall carbon emissions. Much of the decline involved large emissions-intensive companies, such as utilities, that were trying to get ahead of expected climate regulations.
Companies that received a “B” grade from CDP increased their entitywide carbon emissions on average over that time. Notably, those in the financial, health care and other consumer-oriented sectors that did not experience the same level of regulatory pressure as greenhouse gas-intensive firms led the increase.
About a quarter of the S&P 500 companies that completed CDP’s annual climate change survey undertook assessments of their business impacts on the environment and integrated climate risk management into their business strategy. Yet entitywide emissions still increased.
Earlier research found similar results in the first decade of the U.S. Department of Energy’s Voluntary Greenhouse Gas Registry. Overall, it found that participating in the registry had no significant effect on the companies’ carbon emissions intensity, but that many of the companies, by being selective in what they reported, reported emissions reductions.
Another study, which focused on the power sector’s participation in CDP’s surveys, found an increase in carbon intensity.
‘A-List’ May Not be Exempt from Greenwashing
Even companies that made CDP’s coveted “A-List” of climate leaders may not necessarily be free of greenwashing.
A company earns an “A” grade when it has met criteria of disclosure, awareness, management and leadership, including adopting global best practices, such as a science-based emissions target, regardless of whether these practices translate into improved environmental performance.
Because CDP grades companies based on sustainability outputs rather than outcomes, an “A-list” company could be “carbon neutral” when it counts only the facilities it owns and not the factories that make its products. Moreover, a company that has earned an “A” could commit to removing all emitted carbon but maintain partnerships with oil and gas companies to “generate new exploration opportunities”.
Retail and apparel giants Walmart, Target and Nike – all in the “B” to “A-minus” range in recent years – offer an example of the challenge.
They regularly disclose their carbon management plans and emissions to CDP. But they are also part of the industry-led Sustainable Apparel Coalition, which has controversially portrayed petroleum-based synthetics as the most sustainable choice above natural fibers in the Higgs Index, a supply chain measurement tool that some clothing companies use to show a social and environmental footprint to consumers. Walmart has been sued by the Federal Trade Commission over products described as bamboo and “eco-friendly and sustainable” that were made from rayon, a semi-synthetic fiber made using toxic chemicals.
Designing a Greenwashing-Resistant Disclosure Program
I see three key ways for the SEC to design a climate disclosure program that is greenwashing-resistant.
First, misinformation or disinformation about ESG – environmental, social and governance factors – can be minimized if companies are given clear guidelines on what constitutes a low-carbon initiative.
Second, companies can be required to benchmark their emission targets based on historical emissions, undergo independent audits and report concrete changes.
It’s important to clearly define “carbon footprint” so these metrics are comparable among companies and over time. For example, there are different types of emissions: Scope 1 emissions are the direct emissions coming out of a firm’s chimneys and tailpipes. Scope 2 emissions are associated with the power a company consumes. Scope 3 is harder to measure – it includes emissions in a company’s supply chain and through the use of its products, such as gasoline used in cars. It reflects the complexity of the modern supply chain.
Finally, companies could be asked to disclose a fixed deadline for phasing out fossil fuel assets. This will better ensure that pledges translate into concrete actions in a timely and transparent manner.
Ultimately, investors and financial markets need accurate and verifiable information to assess their investments’ future risk and determine for themselves whether net-zero pledges made by companies are credible.
There is now momentum across the globe to hold companies accountable for their emissions and climate pledges. Disclosure rules have been introduced in the United Kingdom, European Union and New Zealand, and in Asian business hubs like Singapore and Hong Kong. When countries have similar policies, allowing for consistency, comparability and verifiability, there will be fewer opportunities for loopholes and exploitation, and I believe our climate and economy will be better for it.
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|
Source: U.S. Securities and Exchange Commission (YouTube)
The Securities and Exchange Commission (SEC) is accustomed to upsetting issuers and investors alike. The Commission, of course, exists to benefit both with its stated mission: Protect investors and maintain fair orderly, and efficient markets. Does this include making fun of investors or even what some view as shaming? Some self-directed investors are lashing back.
The office of Investor Education and Advocacy has unveiled a game show-themed campaign to help investors make informed investment decisions and avoid fraud. The campaign has been met by market watchers and self-directed investors at all levels, criticizing the SEC’s approach and insensitivity.
The campaign titled Investomania features a 30-second TV spot and 15-second informational videos on crypto assets, margin calls, guaranteed returns, and interactive quizzes. Its stated intent is to reach existing, new, and future investors of all ages. Believing that, at times, investing may look and feel like a game, the creators of the campaign chose a game show theme. The videos are to remind investors to do their research when making investment decisions.
Source: U.S. Securities and Exchange Commission (YouTube)
The campaign encourages investors to know what they are investing in, and get information from trustworthy sources to understand the risks before investing. This is age-old advice. The campaign also reminds investors to take advantage of the free financial planning tools and information on Investor.gov, the SEC’s resource for investor education.
It would seem from reactions on Twitter that the video campaign is viewed as derogatory. This is reflected in tweets from accounts like @ApesTogetherStrongDoc, which tweeted a nine post string which began: “Memestocks”
is a term we, along with so many of us, are guilty of using. It’s fun, calls
attention to the subversive side of all of this, but as we’ve seen with the
@SECGov’s video today, the term has entered the collective lexicon as a catcall…”
Image: Second of 9 in string of tweets by @ApesTogetherDoc
And it isn’t just the r/wallstreetbets, Stocktwits, and Reddit investment communities that are crying foul. A former Branch Chief of the SEC expressed her disappointment and even challenged the SEC chairman to clean up and educate investors in areas where she feels the Commission is lacking.
Image: Tweets by @LisaBraganca
From the SEC’s standpoint, taken from a press release dated June 2, Chair Gary Gensler is quoted as saying, “With the growing access to markets, it’s as important as ever for investors to take time to educate themselves. I encourage investors to go to Investor.gov for accurate and unbiased investment information.” In the same release, Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy said about the campaign, “We continue to look for creative and memorable ways to reach and educate investors, and we hope this year’s public service campaign, with its lighthearted approach, will attract the attention of all kinds of investors.”
More On the SEC’s Videos
The campaign has been made available on YouTube. In one 30-second “TV” spot a game show host asks two contestants to pick a square on a video game board with investment options including internet rumors, celebrity endorsements, stock tips from your uncle, crypto to the moon, FOMO, meme stocks, tulip bulbs, guaranteed returns, and timing the market. The video is intended to show investors the consequences of their investment decisions and to help investors understand the importance of protecting themselves when making investment decisions. After the contestants make their choice, the video pokes fun at the contestant’s choice if it doesn’t involve solid due diligence.
The 15-second videos contain three categories. In the video covering cryptocurrency speculation, a celebrity encourages investors to take their advice and buy crypto-assets. The video is intended to remind investors not to be tempted by celebrity endorsements, and instead do their own independent research. There is another video related to investing on margin; its intent seems to be to tell investors that borrowing money to invest can be very risky. Another video is titled Easy Money. This video reminds investors that there are no guaranteed financial returns on investments and that every investment, no matter how good it may sound, has a risk.
Take-Away
A well-intentioned education campaign by the SEC seems to have turned off a large population it had intended to help. While prudence, research, and understanding of risk are basic tenets of investing, the approach used in this campaign may be less than effective.
Let us know what you think by visiting this article posted on our Twitter account (@channelchek) and tweeting your thoughts, while there, please follow us to stay in touch.
Managing Editor, Channelchek
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Sources
https://www.sec.gov/news/press-release/2022-95
https://www.youtube.com/watch?v=L3TwZOMm6Wc
https://www.investor.gov/additional-resources/spotlight/investomania
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NobleCon18 Recap – 2 Days in Less Than 20 MinutesIf you didn’t make it to the LIVE event, or even if you did and want to revisit this memorable conference, here’s your opportunity exclusively on Channelchek. Our on-demand catalog captured close to 50 hours of content. Individual corporate presentations and compelling panels. Get a taste for it with our “2 Days in Less Than 20 Minutes” video. It’s all here on Channelchek. And as always, it’s free for subscribers (and there’ no cost to subscribe). Take your time or binge. If you’re looking for the next apple, this is the orchard. NobleCon 18 Complete Rebroadcast
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NobleCon18 Recap – 2 Days in Less Than 20 MinutesIf you didn’t make it to the LIVE event, or even if you did and want to revisit this memorable conference, here’s your opportunity exclusively on Channelchek. Our on-demand catalog captured close to 50 hours of content. Individual corporate presentations and compelling panels. Get a taste for it with our “2 Days in Less Than 20 Minutes” video. |
Open to all registered Channelchek users. Register here – It’s free. We only need a name and email address.
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 The Metaverse |
 PSychedelics Panel |
Tuesday, April 26, 2022
With over 94,000 beds owned, leased or managed across its business lines and serving over 260,000 people daily, GEO is a leading provider of mission critical real estate to its governmental partners. The Company is the first fully integrated equity REIT specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the U.S., Australia, South Africa, and the U.K.
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.
NobleCon 18. GEO CFO Brian Evans presented at NobleCon 18. The Company highlighted its leading market position, dependable cash flows, and potential market opportunity.
Title 42. Government officials continue to give credence to a projected massive surge once Title 42 is lifted. Most recently, ICE said it is expecting a “historic” surge in migration at the border. In an April 8th court filing, the agency stated, “ICE is preparing to…respond to an historic border surge, with projections forecasted to triple current arrivals.” …
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.
Tuesday, April 26, 2022
Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company’s operations are divided into three business segments namely Americas Staffing, Global Talent Solutions (“GTS”) and International Staffing. It provides staffing solutions through its branch networks in Americas and International operations and also provides a suite of innovative talent fulfilment and outcome-based solutions through GTS segment. Americas Staffing generates maximum revenue from its operations.
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.
NobleCon 18. Kelly Services CEO Peter Quigley and CFO Olivier Thirot presented at NobleCon 18. Highlights of the presentation were the recent Persol Holdings and PersolKelly sales, the RocketPower acquisition, and strategy for future acquisitions. A rebroadcast is available here.
More Cash in the Pocket. The Company highlighted their recent sale of Persol Holdings common shares and PersolKelly joint venture interest. Both these sales accumulated roughly $235 million, net of repurchases of common shares. This additional cash will prove to be beneficial, in our view, as the Company is aggressively looking for companies to purchase …
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.
Monday, April 25, 2022
DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offers services to several government agencies which include the Department of veteran affairs, Department of health and human services, Department of Defense and other government agencies. It operates primarily through prime contracts and also derives its revenue from agencies of the federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors.
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.
NobleCon 18. DLH Holding CFO Kathryn Johnbull presented at NobleCon18. The Company highlighted growth of their end markets and potential for expansion in the future, in our view. A rebroadcast is available here.
Budget Growth. Continued budget growth in government programs sets up DLH for the future, as their top three customers by revenue-DOD, HHS, and VA-have seen 1.8%, 8,5%, and 9.2% CAGRs, respectively, in their budgets from fiscal year 2019 to the 2022 presidential budget request. DLH’s pipeline exceeds $2 billion, with $800 million of proposals in process …
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.
Monday, April 25, 2022
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.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.
NobleCon 18. ISG CEO Michael Connors and CFO Bert Alfonso presented at NobleCon18. The transformation of the Company during COVID, ISG NEXT, and potential for acquisitions were highlighted in the presentation. A rebroadcast is available here.
A Changing Model. The COVID environment gave ISG the ability to transform the business towards two different segments, ISG Digital and ISG Enterprise, which gave companies the ability to choose which solution is needed, whether it is for more data analytics and cyber security (Digital) or Human Resources and Accounting (Enterprise). Combined with the iFlex working structure, ISG transformed the …
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.
