CoreCivic Reports Fourth Quarter and Full Year 2021 Financial Results

Research, News, and Market Data on CoreCivic

 

BRENTWOOD, Tenn., Feb. 09, 2022 (GLOBE NEWSWIRE) — CoreCivic, Inc. (NYSE: CXW) (the Company) announced today its financial results for the fourth quarter and full year 2021.

Financial Highlights – Full Year 2021

• Total revenue of $1.86 billion
  • CoreCivic Safety revenue of $1.69 billion
  • CoreCivic Community revenue of $99.4 million
  • CoreCivic Properties revenue of $68.9 million
• Net loss attributable to common stockholders of $51.9 million
• Net loss reflects $178.6 million of special items, including $114.2 million of income taxes associated with change in corporate tax structure reflected in the first quarter of 2021
• Diluted net loss per share of $0.43
• Adjusted diluted EPS of $1.04
• Normalized FFO per diluted share of $1.85
• Adjusted EBITDA of $402.0 million

Damon T. Hininger, CoreCivic’s President and Chief Executive Officer, said, “Our fourth quarter financial performance capped off another year of resilient cash flow generation amid the ongoing global pandemic.   During 2021, we made great strides in enhancing our capital structure by revoking our REIT election, selling non-core assets which enabled us to accelerate our debt reduction strategy, accessed the debt capital markets, extended our debt maturities, and positioned our balance sheet to allow us to pursue attractive growth opportunities and return capital to shareholders. With the financial guidance we are providing today for the full year 2022, our capital allocation strategy remains on track.

Hininger continued, “We began 2022 on a positive note with the recent announcement of our new contract with the state of Arizona to care for up to 2,706 inmates at our La Palma Correctional Center, which is the largest contract awarded to the private sector by any state in over a decade.   We look to continue this positive momentum as we pursue other market opportunities that may present themselves throughout the year.”

Financial Highlights – Fourth Quarter 2021

• Total revenue of $472.1 million
  • CoreCivic Safety revenue of $432.8 million
  • CoreCivic Community revenue of $25.3 million
  • CoreCivic Properties revenue of $14.0 million
• Net income attributable to common stockholders of $28.0 million
• Diluted earnings per share of $0.23
• Adjusted diluted EPS of $0.27
• Normalized FFO per diluted share of $0.48
• Adjusted EBITDA of $103.2 million
  

Fourth Quarter 2021 Financial Results Compared With Fourth Quarter 2020

Net income attributable to common stockholders in the fourth quarter of 2021 totaled $28.0 million, or $0.23 per diluted share, compared with net loss attributable to common stockholders in the fourth quarter of 2020 of $26.8 million, or a net loss of $0.22 per diluted share. Adjusted for special items, net income in the fourth quarter of 2021 was $32.6 million, or $0.27 per diluted share (Adjusted Diluted EPS), compared with adjusted net income in the fourth quarter of 2020 of $48.8 million, or $0.40 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. Financial results in 2021 reflect higher income tax expense following the revocation of our election to be taxed as a real estate investment trust (REIT) effective January 1, 2021. As a REIT, we were entitled to a deduction for dividends paid, which resulted in a significantly lower income tax expense in the prior year. The decline in per share amounts was also the result of property sales and refinancing transactions, both of which strengthened our balance sheet, as well as an increase in general and administrative (G&A) expenses.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was $97.0 million in the fourth quarter of 2021, compared with $33.0 million in the fourth quarter of 2020. Adjusted EBITDA, which excludes special items, was $103.2 million in the fourth quarter of 2021, compared with $108.7 million in the fourth quarter of 2020. Adjusted EBITDA decreased from the prior year quarter due to the sale of 47 non-core real estate assets since the end of the third quarter of 2021, which generated $7.4 million in Adjusted EBITDA in the fourth quarter of 2020, and an increase in G&A expenses primarily resulting from lower incentive compensation in the prior year due to the onset of COVID-19.  

Funds From Operations (FFO) was $54.7 million, or $0.45 per diluted share, in the fourth quarter of 2021, compared to $22.8 million, or $0.19 per diluted share, in the fourth quarter of 2020. Normalized FFO, which excludes special items, was $57.8 million, or $0.48 per diluted share, in the fourth quarter of 2021, compared with $76.3 million, or $0.63 per diluted share, in the fourth quarter of 2020. FFO and Normalized FFO were also impacted by our new corporate tax structure.

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

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 are currently working with ADCRR on a ramp plan that is expected to begin late in the first quarter or early in the second quarter of 2022. The La Palma facility currently supports the mission of Immigration and Customs Enforcement (ICE) by caring for approximately 1,800 detainees. We are simultaneously working with ICE to coordinate the transition of their populations to other facilities, including at facilities where we have available capacity within the region. We expect the transition of populations from ICE detainees to inmates from the state of Arizona to result in the disruption of earnings and cash flows until the occupancy of inmates from the state of Arizona reaches stabilization. Upon full utilization of the new contract with the state of Arizona we expect to generate approximately $75 million to $85 million in annualized revenue at the La Palma facility.  

2022 Financial Guidance

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

	Full Year 2022
• Diluted EPS	$0.72 to $0.86
• FFO per diluted share	$1.55 to $1.70
• EBITDA	$354.8 million to $370.0 million

Our 2022 guidance reflects a continuation of occupancy restrictions placed on our bed capacity by many of our government partners as a result of the ongoing COVID-19 pandemic, which could result in enhanced earnings when relieved. Our 2022 guidance also reflects the aforementioned transition of resident populations at our La Palma Correctional Center, and higher operating expenses due to above average wage inflation we expect to experience in 2022 as a result of the challenging labor market.

During 2022, we expect to invest approximately $75.8 million to $79.3 million in capital expenditures, consisting of approximately $33.8 million to $34.3 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 $12.0 million to $13.0 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 fourth quarter and full year 2021.   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 first quarter of 2022.   Written materials used in the investor presentations will also be available on our website beginning on or about February 21, 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, February 10, 2022, which 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 877-614-0009 in the U.S. and Canada, including the confirmation passcode 8591205. 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 February 10, 2022, through 1:15 p.m. central time (2:15 p.m. eastern time) on February 18, 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 8591205.

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. CoreCivic provides a broad range of solutions to government partners that serve the public good through corrections and detention management, a network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. CoreCivic is the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believes it is the largest private owner of real estate used by government agencies in the U.S. CoreCivic has been a flexible and dependable partner for government for more than 35 years. CoreCivic’s employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.

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. 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; (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, following our revocation of our REIT election, to identify and initiate service opportunities that were unavailable under the REIT structure; (xii) our ability to have met and maintained qualification for taxation as a REIT for the years we elected REIT status; and (xiii) 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		December 31, 2021				December 31, 2020
Cash and cash equivalents		$	299,645			$	113,219
Restricted cash			11,062				23,549
Accounts receivable, net of credit loss reserve of $7,931 and $6,103, respectively			282,809				267,705
Prepaid expenses and other current assets			26,872				33,243
Assets held for sale			6,996				279,406
Total current assets			627,384				717,122
Real estate and related assets:
Property and equipment, net of accumulated depreciation of $1,657,709 and $1,559,388, respectively			2,283,256				2,350,272
Other real estate assets			218,915				228,243
Goodwill			4,844				5,902
Non-current deferred tax assets			–				11,113
Other assets			364,539				396,663
Total assets		$	3,498,938			$	3,709,315
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses		$	305,592			$	274,318
Current portion of long-term debt			35,376				39,087
Total current liabilities			340,968				313,405
Long-term debt, net			1,492,046				1,747,664
Deferred revenue			27,551				18,336
Non-current deferred tax liabilities			88,157				–
Other liabilities			177,748				216,468
Total liabilities			2,126,470				2,295,873
Commitments and contingencies
Preferred stock ? $0.01 par value; 50,000 shares authorized; none issued and outstanding at December 31, 2021 and 2020, respectively			–				–
Common stock ? $0.01 par value; 300,000 shares authorized; 120,285 and 119,638 shares issued and outstanding at December 31, 2021 and 2020, respectively			1,203				1,196
Additional paid-in capital			1,869,955				1,835,494
Accumulated deficit			(498,690	)			(446,519	)
Total stockholders’ equity			1,372,468				1,390,171
Non-controlling interest – operating partnership			–				23,271
Total equity			1,372,468				1,413,442
Total liabilities and stockholders’ equity		$	3,498,938			$	3,709,315

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

		For the Three Months Ended December 31,								For the Year Ended December 31,
			2021				2020				2021				2020
REVENUES:
Safety		$	432,785			$	424,318			$	1,693,968			$	1,706,232
Community			25,313				25,320				99,435				105,990
Properties			14,007				23,802				68,934				93,098
Other			28				37				279				165
			472,133				473,477				1,862,616				1,905,485
EXPENSES:
Operating
Safety			309,948				315,127				1,236,938				1,288,938
Community			20,059				21,158				81,610				88,903
Properties			2,832				6,857				18,155				28,128
Other			80				65				362				407
Total operating expenses			332,919				343,207				1,337,065				1,406,376
General and administrative			38,412				27,031				135,770				124,338
Depreciation and amortization			33,951				36,425				134,738				150,861
Contingent consideration for acquisition of businesses			–				–				–				620
Shareholder litigation expense			–				–				54,295				–
Asset impairments			2,027				47,570				11,378				60,628
			407,309				454,233				1,673,246				1,742,823
OTHER INCOME (EXPENSE):
Interest expense, net			(23,239	)			(19,572	)			(85,542	)			(83,299	)
Expenses associated with debt repayments and refinancing transactions			(4,112	)			(7,141	)			(56,279	)			(7,141	)
Gain (loss) on sale of real estate assets, net			–				(17,943	)			38,766				(13,023	)
Other income (expense)			(105	)			(188	)			(212	)			525
INCOME (LOSS) BEFORE INCOME TAXES			37,368				(25,600	)			86,103				59,724
Income tax expense			(9,331	)			(1,203	)			(137,999	)			(4,386	)
NET INCOME (LOSS)			28,037				(26,803	)			(51,896	)			55,338
Net income attributable to non-controlling interest			–				–				–				(1,181	)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS		$	28,037			$	(26,803	)		$	(51,896	)		$	54,157
BASIC EARNINGS (LOSS) PER SHARE		$	0.23			$	(0.22	)		$	(0.43	)		$	0.45
DILUTED EARNINGS (LOSS) PER SHARE		$	0.23			$	(0.22	)		$	(0.43	)		$	0.45

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 December 31,								For the Year Ended December 31,
		2021				2020				2021				2020
Net income (loss) attributable to common stockholders	$	28,037			$	(26,803	)		$	(51,896	)		$	54,157
Non-controlling interest		–				–				–				1,181
Diluted net income (loss) attributable to common stockholders	$	28,037			$	(26,803	)		$	(51,896	)		$	55,338
Special items:
Expenses associated with debt repayments and refinancing transactions		4,112				7,141				56,279				7,141
Expenses associated with mergers and acquisitions		–				–				–				338
Expenses associated with COVID-19		–				2,792				2,434				13,777
Expenses associated with changes in corporate tax structure		–				195				–				5,240
Income taxes associated with change in corporate tax structure and other special tax items		–				–				114,249				3,085
Contingent consideration for acquisition of businesses		–				–				–				620
Loss (gain) on sale of real estate assets, net		–				17,943				(38,766	)			13,023
Shareholder litigation expense		–				–				54,295				–
Asset impairments		2,027				47,570				11,378				60,628
Income tax expense (benefit) for special items		(1,533	)			–				(21,227	)			532
Adjusted net income	$	32,643			$	48,838			$	126,746			$	159,722
Weighted average common shares outstanding – basic		120,285				119,636				120,192				119,559
Effect of dilutive securities:
Restricted stock-based awards		933				56				531				28
Non-controlling interest – operating partnership units		–				1,342				952				1,342
Weighted average shares and assumed conversions – diluted		121,218				121,034				121,675				120,929
Adjusted Earnings Per Diluted Share	$	0.27			$	0.40			$	1.04			$	1.32

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 December 31,								For the Year Ended December 31,
		2021				2020				2021				2020
Net income (loss)	$	28,037			$	(26,803	)		$	(51,896	)		$	55,338
Depreciation and amortization of real estate assets		25,176				27,447				98,738				112,046
Impairment of real estate assets		2,027				4,225				3,335				14,380
Loss (gain) on sale of real estate assets, net		–				17,943				(38,766	)			13,023
Income tax expense for special items		(506	)			–				8,785				532
Funds From Operations	$	54,734			$	22,812			$	20,196			$	195,319
Expenses associated with debt repayments and refinancing transactions		4,112				7,141				56,279				7,141
Expenses associated with mergers and acquisitions		–				–				–				338
Contingent consideration for acquisition of businesses		–				–				–				620
Expenses associated with COVID-19		–				2,792				2,434				13,777
Expenses associated with changes in corporate tax structure		–				195				–				5,240
Income taxes associated with change in corporate tax structure and other special tax items		–				–				114,249				3,085
Shareholder litigation expense		–				–				54,295				–
Goodwill and other impairments		–				43,345				8,043				46,248
Income tax benefit for special items		(1,027	)			–				(30,012	)			–
Normalized Funds From Operations	$	57,819			$	76,285			$	225,484			$	271,768
Funds From Operations Per Diluted Share	$	0.45			$	0.19			$	0.17			$	1.62
Normalized Funds From Operations Per Diluted Share	$	0.48			$	0.63			$	1.85			$	2.25

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 December 31,							For the Year Ended December 31,
		2021			2020				2021				2020
Net income (loss)	$	28,037		$	(26,803	)		$	(51,896	)		$	55,338
Interest expense		25,700			22,216				95,565				93,453
Depreciation and amortization		33,951			36,425				134,738				150,861
Income tax expense		9,331			1,203				137,999				4,386
EBITDA	$	97,019		$	33,041			$	316,406			$	304,038
Expenses associated with debt repayments and refinancing transactions		4,112			7,141				56,279				7,141
Expenses associated with mergers and acquisitions		–			–				–				338
Expenses associated with COVID-19		–			2,792				2,434				13,777
Expenses associated with changes in corporate tax structure		–			195				–				5,240
Contingent consideration for acquisition of businesses		–			–				–				620
Loss (gain) on sale of real estate assets, net		–			17,943				(38,766	)			13,023
Shareholder litigation expense		–			–				54,295				–
Asset impairments		2,027			47,570				11,378				60,628
Adjusted EBITDA	$	103,158		$	108,682			$	402,026			$	404,805

GUIDANCE — CALCULATION OF FUNDS FROM OPERATIONS & EBITDA

	For the Year Ending December 31, 2022
	Low End of Guidance		High End of Guidance
Net income	$	85,500	$	102,750
Depreciation and amortization of real estate assets		98,500		99,000
Funds From Operations	$	184,000	$	201,750
Diluted EPS	$	0.72	$	0.86
FFO per diluted share	$	1.55	$	1.70
Net income	$	85,500	$	102,750
Interest expense		97,500		96,500
Depreciation and amortization		134,750		134,750
Income tax expense		37,000		36,000
EBITDA	$	354,750	$	370,000

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
		Financial Media: David Gutierrez, Dresner Corporate Services – (312) 780-7204

CoreCivic Reports Fourth Quarter and Full Year 2021 Financial Results

Research, News, and Market Data on CoreCivic

 

BRENTWOOD, Tenn., Feb. 09, 2022 (GLOBE NEWSWIRE) — CoreCivic, Inc. (NYSE: CXW) (the Company) announced today its financial results for the fourth quarter and full year 2021.

Financial Highlights – Full Year 2021

• Total revenue of $1.86 billion
  • CoreCivic Safety revenue of $1.69 billion
  • CoreCivic Community revenue of $99.4 million
  • CoreCivic Properties revenue of $68.9 million
• Net loss attributable to common stockholders of $51.9 million
• Net loss reflects $178.6 million of special items, including $114.2 million of income taxes associated with change in corporate tax structure reflected in the first quarter of 2021
• Diluted net loss per share of $0.43
• Adjusted diluted EPS of $1.04
• Normalized FFO per diluted share of $1.85
• Adjusted EBITDA of $402.0 million

Damon T. Hininger, CoreCivic’s President and Chief Executive Officer, said, “Our fourth quarter financial performance capped off another year of resilient cash flow generation amid the ongoing global pandemic.   During 2021, we made great strides in enhancing our capital structure by revoking our REIT election, selling non-core assets which enabled us to accelerate our debt reduction strategy, accessed the debt capital markets, extended our debt maturities, and positioned our balance sheet to allow us to pursue attractive growth opportunities and return capital to shareholders. With the financial guidance we are providing today for the full year 2022, our capital allocation strategy remains on track.

Hininger continued, “We began 2022 on a positive note with the recent announcement of our new contract with the state of Arizona to care for up to 2,706 inmates at our La Palma Correctional Center, which is the largest contract awarded to the private sector by any state in over a decade.   We look to continue this positive momentum as we pursue other market opportunities that may present themselves throughout the year.”

Financial Highlights – Fourth Quarter 2021

• Total revenue of $472.1 million
  • CoreCivic Safety revenue of $432.8 million
  • CoreCivic Community revenue of $25.3 million
  • CoreCivic Properties revenue of $14.0 million
• Net income attributable to common stockholders of $28.0 million
• Diluted earnings per share of $0.23
• Adjusted diluted EPS of $0.27
• Normalized FFO per diluted share of $0.48
• Adjusted EBITDA of $103.2 million
  

Fourth Quarter 2021 Financial Results Compared With Fourth Quarter 2020

Net income attributable to common stockholders in the fourth quarter of 2021 totaled $28.0 million, or $0.23 per diluted share, compared with net loss attributable to common stockholders in the fourth quarter of 2020 of $26.8 million, or a net loss of $0.22 per diluted share. Adjusted for special items, net income in the fourth quarter of 2021 was $32.6 million, or $0.27 per diluted share (Adjusted Diluted EPS), compared with adjusted net income in the fourth quarter of 2020 of $48.8 million, or $0.40 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. Financial results in 2021 reflect higher income tax expense following the revocation of our election to be taxed as a real estate investment trust (REIT) effective January 1, 2021. As a REIT, we were entitled to a deduction for dividends paid, which resulted in a significantly lower income tax expense in the prior year. The decline in per share amounts was also the result of property sales and refinancing transactions, both of which strengthened our balance sheet, as well as an increase in general and administrative (G&A) expenses.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was $97.0 million in the fourth quarter of 2021, compared with $33.0 million in the fourth quarter of 2020. Adjusted EBITDA, which excludes special items, was $103.2 million in the fourth quarter of 2021, compared with $108.7 million in the fourth quarter of 2020. Adjusted EBITDA decreased from the prior year quarter due to the sale of 47 non-core real estate assets since the end of the third quarter of 2021, which generated $7.4 million in Adjusted EBITDA in the fourth quarter of 2020, and an increase in G&A expenses primarily resulting from lower incentive compensation in the prior year due to the onset of COVID-19.  

Funds From Operations (FFO) was $54.7 million, or $0.45 per diluted share, in the fourth quarter of 2021, compared to $22.8 million, or $0.19 per diluted share, in the fourth quarter of 2020. Normalized FFO, which excludes special items, was $57.8 million, or $0.48 per diluted share, in the fourth quarter of 2021, compared with $76.3 million, or $0.63 per diluted share, in the fourth quarter of 2020. FFO and Normalized FFO were also impacted by our new corporate tax structure.

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

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 are currently working with ADCRR on a ramp plan that is expected to begin late in the first quarter or early in the second quarter of 2022. The La Palma facility currently supports the mission of Immigration and Customs Enforcement (ICE) by caring for approximately 1,800 detainees. We are simultaneously working with ICE to coordinate the transition of their populations to other facilities, including at facilities where we have available capacity within the region. We expect the transition of populations from ICE detainees to inmates from the state of Arizona to result in the disruption of earnings and cash flows until the occupancy of inmates from the state of Arizona reaches stabilization. Upon full utilization of the new contract with the state of Arizona we expect to generate approximately $75 million to $85 million in annualized revenue at the La Palma facility.  

2022 Financial Guidance

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

	Full Year 2022
• Diluted EPS	$0.72 to $0.86
• FFO per diluted share	$1.55 to $1.70
• EBITDA	$354.8 million to $370.0 million

Our 2022 guidance reflects a continuation of occupancy restrictions placed on our bed capacity by many of our government partners as a result of the ongoing COVID-19 pandemic, which could result in enhanced earnings when relieved. Our 2022 guidance also reflects the aforementioned transition of resident populations at our La Palma Correctional Center, and higher operating expenses due to above average wage inflation we expect to experience in 2022 as a result of the challenging labor market.

During 2022, we expect to invest approximately $75.8 million to $79.3 million in capital expenditures, consisting of approximately $33.8 million to $34.3 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 $12.0 million to $13.0 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 fourth quarter and full year 2021.   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 first quarter of 2022.   Written materials used in the investor presentations will also be available on our website beginning on or about February 21, 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, February 10, 2022, which 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 877-614-0009 in the U.S. and Canada, including the confirmation passcode 8591205. 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 February 10, 2022, through 1:15 p.m. central time (2:15 p.m. eastern time) on February 18, 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 8591205.

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. CoreCivic provides a broad range of solutions to government partners that serve the public good through corrections and detention management, a network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. CoreCivic is the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believes it is the largest private owner of real estate used by government agencies in the U.S. CoreCivic has been a flexible and dependable partner for government for more than 35 years. CoreCivic’s employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.

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. 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; (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, following our revocation of our REIT election, to identify and initiate service opportunities that were unavailable under the REIT structure; (xii) our ability to have met and maintained qualification for taxation as a REIT for the years we elected REIT status; and (xiii) 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		December 31, 2021				December 31, 2020
Cash and cash equivalents		$	299,645			$	113,219
Restricted cash			11,062				23,549
Accounts receivable, net of credit loss reserve of $7,931 and $6,103, respectively			282,809				267,705
Prepaid expenses and other current assets			26,872				33,243
Assets held for sale			6,996				279,406
Total current assets			627,384				717,122
Real estate and related assets:
Property and equipment, net of accumulated depreciation of $1,657,709 and $1,559,388, respectively			2,283,256				2,350,272
Other real estate assets			218,915				228,243
Goodwill			4,844				5,902
Non-current deferred tax assets			–				11,113
Other assets			364,539				396,663
Total assets		$	3,498,938			$	3,709,315
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses		$	305,592			$	274,318
Current portion of long-term debt			35,376				39,087
Total current liabilities			340,968				313,405
Long-term debt, net			1,492,046				1,747,664
Deferred revenue			27,551				18,336
Non-current deferred tax liabilities			88,157				–
Other liabilities			177,748				216,468
Total liabilities			2,126,470				2,295,873
Commitments and contingencies
Preferred stock ? $0.01 par value; 50,000 shares authorized; none issued and outstanding at December 31, 2021 and 2020, respectively			–				–
Common stock ? $0.01 par value; 300,000 shares authorized; 120,285 and 119,638 shares issued and outstanding at December 31, 2021 and 2020, respectively			1,203				1,196
Additional paid-in capital			1,869,955				1,835,494
Accumulated deficit			(498,690	)			(446,519	)
Total stockholders’ equity			1,372,468				1,390,171
Non-controlling interest – operating partnership			–				23,271
Total equity			1,372,468				1,413,442
Total liabilities and stockholders’ equity		$	3,498,938			$	3,709,315

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

		For the Three Months Ended December 31,								For the Year Ended December 31,
			2021				2020				2021				2020
REVENUES:
Safety		$	432,785			$	424,318			$	1,693,968			$	1,706,232
Community			25,313				25,320				99,435				105,990
Properties			14,007				23,802				68,934				93,098
Other			28				37				279				165
			472,133				473,477				1,862,616				1,905,485
EXPENSES:
Operating
Safety			309,948				315,127				1,236,938				1,288,938
Community			20,059				21,158				81,610				88,903
Properties			2,832				6,857				18,155				28,128
Other			80				65				362				407
Total operating expenses			332,919				343,207				1,337,065				1,406,376
General and administrative			38,412				27,031				135,770				124,338
Depreciation and amortization			33,951				36,425				134,738				150,861
Contingent consideration for acquisition of businesses			–				–				–				620
Shareholder litigation expense			–				–				54,295				–
Asset impairments			2,027				47,570				11,378				60,628
			407,309				454,233				1,673,246				1,742,823
OTHER INCOME (EXPENSE):
Interest expense, net			(23,239	)			(19,572	)			(85,542	)			(83,299	)
Expenses associated with debt repayments and refinancing transactions			(4,112	)			(7,141	)			(56,279	)			(7,141	)
Gain (loss) on sale of real estate assets, net			–				(17,943	)			38,766				(13,023	)
Other income (expense)			(105	)			(188	)			(212	)			525
INCOME (LOSS) BEFORE INCOME TAXES			37,368				(25,600	)			86,103				59,724
Income tax expense			(9,331	)			(1,203	)			(137,999	)			(4,386	)
NET INCOME (LOSS)			28,037				(26,803	)			(51,896	)			55,338
Net income attributable to non-controlling interest			–				–				–				(1,181	)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS		$	28,037			$	(26,803	)		$	(51,896	)		$	54,157
BASIC EARNINGS (LOSS) PER SHARE		$	0.23			$	(0.22	)		$	(0.43	)		$	0.45
DILUTED EARNINGS (LOSS) PER SHARE		$	0.23			$	(0.22	)		$	(0.43	)		$	0.45

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 December 31,								For the Year Ended December 31,
		2021				2020				2021				2020
Net income (loss) attributable to common stockholders	$	28,037			$	(26,803	)		$	(51,896	)		$	54,157
Non-controlling interest		–				–				–				1,181
Diluted net income (loss) attributable to common stockholders	$	28,037			$	(26,803	)		$	(51,896	)		$	55,338
Special items:
Expenses associated with debt repayments and refinancing transactions		4,112				7,141				56,279				7,141
Expenses associated with mergers and acquisitions		–				–				–				338
Expenses associated with COVID-19		–				2,792				2,434				13,777
Expenses associated with changes in corporate tax structure		–				195				–				5,240
Income taxes associated with change in corporate tax structure and other special tax items		–				–				114,249				3,085
Contingent consideration for acquisition of businesses		–				–				–				620
Loss (gain) on sale of real estate assets, net		–				17,943				(38,766	)			13,023
Shareholder litigation expense		–				–				54,295				–
Asset impairments		2,027				47,570				11,378				60,628
Income tax expense (benefit) for special items		(1,533	)			–				(21,227	)			532
Adjusted net income	$	32,643			$	48,838			$	126,746			$	159,722
Weighted average common shares outstanding – basic		120,285				119,636				120,192				119,559
Effect of dilutive securities:
Restricted stock-based awards		933				56				531				28
Non-controlling interest – operating partnership units		–				1,342				952				1,342
Weighted average shares and assumed conversions – diluted		121,218				121,034				121,675				120,929
Adjusted Earnings Per Diluted Share	$	0.27			$	0.40			$	1.04			$	1.32

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 December 31,								For the Year Ended December 31,
		2021				2020				2021				2020
Net income (loss)	$	28,037			$	(26,803	)		$	(51,896	)		$	55,338
Depreciation and amortization of real estate assets		25,176				27,447				98,738				112,046
Impairment of real estate assets		2,027				4,225				3,335				14,380
Loss (gain) on sale of real estate assets, net		–				17,943				(38,766	)			13,023
Income tax expense for special items		(506	)			–				8,785				532
Funds From Operations	$	54,734			$	22,812			$	20,196			$	195,319
Expenses associated with debt repayments and refinancing transactions		4,112				7,141				56,279				7,141
Expenses associated with mergers and acquisitions		–				–				–				338
Contingent consideration for acquisition of businesses		–				–				–				620
Expenses associated with COVID-19		–				2,792				2,434				13,777
Expenses associated with changes in corporate tax structure		–				195				–				5,240
Income taxes associated with change in corporate tax structure and other special tax items		–				–				114,249				3,085
Shareholder litigation expense		–				–				54,295				–
Goodwill and other impairments		–				43,345				8,043				46,248
Income tax benefit for special items		(1,027	)			–				(30,012	)			–
Normalized Funds From Operations	$	57,819			$	76,285			$	225,484			$	271,768
Funds From Operations Per Diluted Share	$	0.45			$	0.19			$	0.17			$	1.62
Normalized Funds From Operations Per Diluted Share	$	0.48			$	0.63			$	1.85			$	2.25

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 December 31,							For the Year Ended December 31,
		2021			2020				2021				2020
Net income (loss)	$	28,037		$	(26,803	)		$	(51,896	)		$	55,338
Interest expense		25,700			22,216				95,565				93,453
Depreciation and amortization		33,951			36,425				134,738				150,861
Income tax expense		9,331			1,203				137,999				4,386
EBITDA	$	97,019		$	33,041			$	316,406			$	304,038
Expenses associated with debt repayments and refinancing transactions		4,112			7,141				56,279				7,141
Expenses associated with mergers and acquisitions		–			–				–				338
Expenses associated with COVID-19		–			2,792				2,434				13,777
Expenses associated with changes in corporate tax structure		–			195				–				5,240
Contingent consideration for acquisition of businesses		–			–				–				620
Loss (gain) on sale of real estate assets, net		–			17,943				(38,766	)			13,023
Shareholder litigation expense		–			–				54,295				–
Asset impairments		2,027			47,570				11,378				60,628
Adjusted EBITDA	$	103,158		$	108,682			$	402,026			$	404,805

GUIDANCE — CALCULATION OF FUNDS FROM OPERATIONS & EBITDA

	For the Year Ending December 31, 2022
	Low End of Guidance		High End of Guidance
Net income	$	85,500	$	102,750
Depreciation and amortization of real estate assets		98,500		99,000
Funds From Operations	$	184,000	$	201,750
Diluted EPS	$	0.72	$	0.86
FFO per diluted share	$	1.55	$	1.70
Net income	$	85,500	$	102,750
Interest expense		97,500		96,500
Depreciation and amortization		134,750		134,750
Income tax expense		37,000		36,000
EBITDA	$	354,750	$	370,000

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
		Financial Media: David Gutierrez, Dresner Corporate Services – (312) 780-7204

Thursday, February 10, 2022

CoreCivic, Inc. (CXW)
Solid 4Q21, Provides Guidance for 2022

CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through corrections and detention management, a growing network of residential reentry centers to help address America’s recidivism crisis, and government real estate solutions. We are a publicly traded real estate investment trust and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. We also believe we are the largest private owner of real estate used by U.S. government agencies. The Company has been a flexible and dependable partner for government for more than 35 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

4Q21 Results. CoreCivic reported fourth quarter results after the market closed yesterday. Revenue came in at $472.1 million, compared to $473.5 million in the same period last year. The Company reported net income of $28 million, or $0.23 per share, compared to a loss of $26.8 million, or $0.22 per share last year. Adjusted EPS of $0.27 compared to $0.40. On a proforma basis to reflect the adoption of a C-corp structure EPS was $0.27 versus $0.30 last year. We had projected revenue of $474 million and EPS of $0.22.


2021 Results.  Full year revenue came in at $1.86 billion, adjusted EPS at $1.04, normalized FFO at $1.85, and adjusted EBITDA at $402 million. These results were obtained in the still challenging operating environment, including Covid-related costs and restrictions and the loss of USMS contracts as a result of the President’s executive order. In 2020, revenue was $1.91 billion, adjusted EPS$1.32 …

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. 

 

Vectrus Awarded Logistics Support Services Task Order Valued at $250 Million

Research, News, and Market Data on Vectrus

 

COLORADO SPRINGS, Colo., Feb. 8, 2022 /PRNewswire/ — Vectrus, Inc., (NYSE: VEC), a leading global government services company, announced that it was awarded a new five-year cost-plus-fixed-fee task order valued at $250 million to provide logistics support services to the U.S. Army at Fort Benning, Georgia. The task order, which was awarded under the Enhanced Army Global Logistics Enterprise (EAGLE) contract extends through December 2026, including all option periods.

“We are pleased to have been selected to provide logistical support services under this important task order,” said Chuck Prow, president and chief executive officer of Vectrus. “I would like to thank our Army client for their continued confidence in Vectrus.” 

About Vectrus:
For more than 70 years, Vectrus has provided critical mission support for our customers’ toughest operational challenges. As a high-performing organization with exceptional talent, deep domain knowledge, a history of long-term customer relationships, and groundbreaking technical expertise, we deliver innovative, mission-matched solutions for our military and government customers worldwide. Whether it’s base operations support, 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 9,200 employees spanning 206 locations in 27 countries. In 2020, Vectrus generated sales of $1.4 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

Contact Information

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

SOURCE Vectrus, Inc.

  Image Credit: Parag Deshmuk

How Much is Spent Saying ‘I Love You’ on Valentine’s?

 

While the gift-giving season may be in full bloom between Thanksgiving and Christmas, gifts of the blooming variety are often given on Valentine’s Day. Many businesses rely on their piece of the $22 billion that will be spent for the most romantic of holidays. Gifts include everything from jewelry to dinner, Valentine’s Day cards, and stuffed animals. Below are some staggering statistics from the Nat’l Retail Federation and 1(800)FLOWERS.com (FLWS) that show the heart-thumping magnitude of February 14^th.

Last February 14^th, which was as much virus-times as it was Valentine’s, Americans spent about $21.8 billion showing they care.  That’s around

 508,000 Bitcoins!  

Spending is expected to be close to the same for 2022.

The highest dollar category of Valentine’s Day commerce is jewelry. Last year $4.1 billion was spent on jewelry. While gold has fluctuated from up 5.50% to down 7% since then, the current price per ounce is in line with last year’s price.

In 2021, men were figured to spend approximately $230 each, while women were believed to have parted with close to $100. 

Sweets are the most popular Valentine’s Day gift. A survey showed 54% of participants plan to give candy. This adds to around $2 billion in spending.  Americans will buy 58 million pounds of chocolate (give or take) for Valentine’s Day!

Approximately 150 million cards are expected to be presented which may be why V-Day is considered a “Hallmark Holiday.”

Valentine’s Day Facts on flowers

For many men, Valentine’s Day starts with checking the price of a dozen roses.  According to CNBC, the price may have increased by 22% over last year. This is approximately the same level of inflation experienced at Dollar Tree (DLTR).

More than a third, or 36% of people anticipate buying flowers. The total spent on those flowers will be about $2 billion.

Men are far more likely to buy flowers than women — 56% versus 18%.

Younger people purchase more Valentine’s Day flowers than their elders. 48% of those 18-24 years old plan to

buy flowers, compared to only 28% of those 65 and over.

Roses are the most popular Valentine’s Day flower, with over 250 million produced exclusively for the holiday each year.

Take-Away

While many retailers wait all year for the period of Black Friday through the Christmas season. Many earn a sizeable portion of their annual revenue from the tens of billions spent on Mother’s and Father’s Day, and of course, Valentine’s.

 

Suggested Reading

“The Biggest Valentine’s Day in its History”

The Big Challenges for Supply Chains in 2022

Online Media is Within an Hour of Becoming Main-Stream Media

What is the Future of Entertainment Consumption?

 

Sources

https://www.1800flowers.com/blog/flower-facts/valentines-day-fun-facts/

https://nrf.com/media-center/press-releases/valentines-day-spending-total-218-billion

https://www.cnbc.com/2022/02/04/inflation-means-price-jumps-for-dinner-and-roses-this-valentines-day.html

 

Stay up to date. Follow us:

  Image Credit: Parag Deshmuk

How Much is Spent Saying ‘I Love You’ on Valentine’s?

 

While the gift-giving season may be in full bloom between Thanksgiving and Christmas, gifts of the blooming variety are often given on Valentine’s Day. Many businesses rely on their piece of the $22 billion that will be spent for the most romantic of holidays. Gifts include everything from jewelry to dinner, Valentine’s Day cards, and stuffed animals. Below are some staggering statistics from the Nat’l Retail Federation and 1(800)FLOWERS.com (FLWS) that show the heart-thumping magnitude of February 14^th.

Last February 14^th, which was as much virus-times as it was Valentine’s, Americans spent about $21.8 billion showing they care.  That’s around

 508,000 Bitcoins!  

Spending is expected to be close to the same for 2022.

The highest dollar category of Valentine’s Day commerce is jewelry. Last year $4.1 billion was spent on jewelry. While gold has fluctuated from up 5.50% to down 7% since then, the current price per ounce is in line with last year’s price.

In 2021, men were figured to spend approximately $230 each, while women were believed to have parted with close to $100. 

Sweets are the most popular Valentine’s Day gift. A survey showed 54% of participants plan to give candy. This adds to around $2 billion in spending.  Americans will buy 58 million pounds of chocolate (give or take) for Valentine’s Day!

Approximately 150 million cards are expected to be presented which may be why V-Day is considered a “Hallmark Holiday.”

Valentine’s Day Facts on flowers

For many men, Valentine’s Day starts with checking the price of a dozen roses.  According to CNBC, the price may have increased by 22% over last year. This is approximately the same level of inflation experienced at Dollar Tree (DLTR).

More than a third, or 36% of people anticipate buying flowers. The total spent on those flowers will be about $2 billion.

Men are far more likely to buy flowers than women — 56% versus 18%.

Younger people purchase more Valentine’s Day flowers than their elders. 48% of those 18-24 years old plan to

buy flowers, compared to only 28% of those 65 and over.

Roses are the most popular Valentine’s Day flower, with over 250 million produced exclusively for the holiday each year.

Take-Away

While many retailers wait all year for the period of Black Friday through the Christmas season. Many earn a sizeable portion of their annual revenue from the tens of billions spent on Mother’s and Father’s Day, and of course, Valentine’s.

 

Suggested Reading

“The Biggest Valentine’s Day in its History”

The Big Challenges for Supply Chains in 2022

Online Media is Within an Hour of Becoming Main-Stream Media

What is the Future of Entertainment Consumption?

 

Sources

https://www.1800flowers.com/blog/flower-facts/valentines-day-fun-facts/

https://nrf.com/media-center/press-releases/valentines-day-spending-total-218-billion

https://www.cnbc.com/2022/02/04/inflation-means-price-jumps-for-dinner-and-roses-this-valentines-day.html

 

Stay up to date. Follow us:

Noble Capital Markets and Channelchek Announce Dates for 18th Annual NobleCon – April 19-21, 2022 – Hard Rock Guitar Hotel, South Florida

February 8, 2022, Miami – Noble Capital Markets (Noble) announced the dates for its 18^th annual small & microcap investor conference (NobleCon18) scheduled for April 19-21, 2022 at the Hard Rock Guitar Hotel in South Florida. This is Noble’s first in-person event since February 2020. NobleCon18 will feature up to 125 presenting public companies and will be open (at no cost) to investors at any level including institutions and institutional investors, family offices, self-directed investors, investment clubs and organizations, high-net-worth individuals, registered investment advisors, and wealth managers / financial advisors. Independent brokers and equity analysts are also welcome to attend.

“Moving NobleCon to later on the calendar is in an effort to host the event as a full in-person event without restrictions,” said Noble’s Managing Partner, Mark Pinvidic. “The Pandemic has taken its toll at so many levels. We’re hoping that NobleCon18 will serve as a celebration of how business works best, and that’s face-to-face.” The timing of NobleCon coincides with another celebration; the return of Formula 1 racing to South Florida for the first time since 1959. The Miami Grand Prix, with the track encircling Hard Rock Stadium (located only moments away from the namesake Guitar Hotel), is scheduled to run two weeks after NobleCon. “In 2006 we hosted a NASCAR event at NobleCon2, and with the support of Porsche Motor Cars we got  back “Ontrack” in 2010, following the financial crisis. If there was ever a reason and time to get back Ontrack it’s now.” One of the most anticipated events at NobleCon conferences is the “After.” Attendees can expect a race-inspired theme for the eighteenth installment, planned for the evening of the 20^th.

New for NobleCon18 are scheduled Breakouts, with each company having three 40-minute sessions in addition to the formal presentation. Seating is available only in presentation rooms and at the breakout tables, in an effort to encourage interaction during coffee breaks and while lunch is served. Keynotes and provocative panel presentations will round out the agenda. NobleCon will transform all of Hard Rock’s 120,000 ft² state-of-the-art conference facility which features 8’ X 12’ high definition, laser projected screens in all presentation rooms. The exhibitors hall will be expanded in 2022 to include a section featuring cannabis companies involved in all aspects of this burgeoning industry. Following the corporate presentations on 4/20/2022,  an interactive cannabis panel presentation and cocktail reception will close the business day.

Presenting companies cover most industry sectors, primarily with market capitalization under $2billion. In addition to cannabis, other disruptive sectors will be represented including ESG, blockchain / cryptocurrency, psychedelics for treatment of mind-related illness, battery technologies, and uranium / alternate energy sources. The full roster of presenters will be published approximately six weeks before the conference, with the scheduled timeslots for presentations and breakouts issued at the beginning of April.

The Hard Rock Guitar Hotel complex is the largest of its kind in the state, located only minutes from Fort Lauderdale and Miami airports. The resort offers conference goers endless choices including 30 restaurants, bars and clubs, two resort pools (one of which is more than 10 acres), a 20,000 ft² spa and salon, a 130,000 ft² casino, and 10,000 free parking spots.

REGISTER FREE AS AN INVESTOR  |  PRESENTING COMPANY INQUIRIES  |  NOBLECON18.COM

About Noble
Capital Markets

Noble Capital Markets, Inc. was incorporated in 1984 as a full-service SEC / FINRA registered broker-dealer, dedicated exclusively to serving underfollowed small / microcap companies through investment banking, wealth management, trading & execution, and equity research activities. Over the past 37 years, Noble has raised billions of dollars for these companies and published more than 45,000 equity research reports. Members FINRA, SIPC, MSRB.

 

Vectrus Awarded Logistics Support Services Task Order Valued at $250 Million

Research, News, and Market Data on Vectrus

 

COLORADO SPRINGS, Colo., Feb. 8, 2022 /PRNewswire/ — Vectrus, Inc., (NYSE: VEC), a leading global government services company, announced that it was awarded a new five-year cost-plus-fixed-fee task order valued at $250 million to provide logistics support services to the U.S. Army at Fort Benning, Georgia. The task order, which was awarded under the Enhanced Army Global Logistics Enterprise (EAGLE) contract extends through December 2026, including all option periods.

“We are pleased to have been selected to provide logistical support services under this important task order,” said Chuck Prow, president and chief executive officer of Vectrus. “I would like to thank our Army client for their continued confidence in Vectrus.” 

About Vectrus:
For more than 70 years, Vectrus has provided critical mission support for our customers’ toughest operational challenges. As a high-performing organization with exceptional talent, deep domain knowledge, a history of long-term customer relationships, and groundbreaking technical expertise, we deliver innovative, mission-matched solutions for our military and government customers worldwide. Whether it’s base operations support, 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 9,200 employees spanning 206 locations in 27 countries. In 2020, Vectrus generated sales of $1.4 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

Contact Information

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

SOURCE Vectrus, Inc.

  Image: Rodnae productions (Pexels)

Why People are Calling Bitcoin a Religion

 

This article was republished with permission from The Conversation, a news site dedicated to sharing ideas from academic experts. It represents the research-based findings and opinions of Joseph P. Laycock, Assistant Professor of Religious Studies, Texas

 

If you read enough about Bitcoin, you’ll inevitably come across people who refer to the cryptocurrency as a religion.

Bloomberg’s Lorcan Roche Kelly called Bitcoin “the first true religion of the 21st century.” Bitcoin promoter Hass McCook has taken to calling himself “The Friar” and wrote a series of Medium pieces comparing Bitcoin to a religion. There is a Church of Bitcoin, founded in 2017, that explicitly calls legendary Bitcoin creator Satoshi Nakamoto its “prophet.”

In Austin, Texas, there are billboards with slogans like “Crypto Is Real” that weirdly mirror the ubiquitous billboards about Jesus found on Texas highways. Like many religions, Bitcoin even has dietary restrictions associated with it.

Religion’s Dirty Secret

So does Bitcoin’s having prophets, evangelists and dietary laws make it a religion or not?

As a scholar of religion, I think this is the wrong question to ask.

The dirty secret of religious studies is that there is no universal definition of what religion is. Traditions such as Christianity, Islam and Buddhism certainly exist and have similarities, but the idea that these are all examples of religion is relatively new.

The word “religion” as it’s used today – a vague category that includes certain cultural ideas and practices related to God, the afterlife or morality – arose in Europe around the 16th century. Before this, many Europeans understood that there were only three types of people in the world: Christians, Jews and heathens.

This model shifted after the Protestant Reformation when a long series of wars began between Catholics and Protestants. These became known as “wars of religion,” and religion became a way of talking about differences between Christians. At the same time, Europeans were encountering other cultures through exploration and colonialism. Some of the traditions they encountered shared certain similarities to Christianity and were also deemed religions.

Non-European languages have historically not had a direct equivalent to the word “religion.” What has counted as religion has changed over the centuries, and there are always political interests at stake in determining whether or not something is a religion.

As a religion scholar, Russell McCutcheon argues, “The interesting thing to study, then, is not what religion is or is not, but ‘the making of it’ process itself – whether that manufacturing activity takes place in a courtroom or is a claim made by a group about their own behaviors and institutions.”

Critics Highlight Irrationality

With this in mind, why would anyone claim that Bitcoin is a religion?

Some commentators seem to be making this claim to steer investors away from Bitcoin. Emerging market fund manager Mark Mobius, in an attempt to tamp down enthusiasm about cryptocurrency, said that “crypto is a religion, not an investment.”

His statement, however, is an example of a false dichotomy fallacy or the assumption that if something is one thing, it cannot be another. There is no reason that a religion cannot also be an investment, a political system, or nearly anything else.

Mobius’ point, though, is that “religion,” like cryptocurrency, is irrational. This criticism of religion has been around since the Enlightenment, when Voltaire wrote, “Nothing can be more contrary to religion and the clergy than reason and common sense.”

In this case, labeling Bitcoin a “religion” suggests that bitcoin investors are fanatics and not making rational choices.

 

Bitcoin as Good and Wholesome

On the other hand, some Bitcoin proponents have leaned into the religion label. McCook’s articles use the language of religion to highlight certain aspects of Bitcoin culture and to normalize them.

For example, “stacking sats” – the practice of regularly buying small fractions of bitcoins – sounds weird. But McCook refers to this practice as a religious ritual, and more specifically as “tithing.” Many churches practice tithing, in which members make regular donations to support their church. So this comparison makes sat stacking seem more familiar.

While for some people religion may be associated with the irrational, it is also associated with what religion scholar Doug Cowan calls “the good, moral and decent fallacy.” That is, some people often assume if something is really a religion, it must represent something good. People who “stack sats” might sound weird. But people who “tithe” could sound principled and wholesome.

Using Religion as a Framework

For religion scholars, categorizing something as a religion can pave the way for new insights.

As religion scholar J.Z. Smith writes, “‘Religion’ is not a native term; it is created by scholars for their intellectual purposes and therefore is theirs to define.” For Smith, categorizing certain traditions or cultural institutions as religions creates a comparative framework that will hopefully result in some new understanding. With this in mind, comparing Bitcoin to a tradition like Christianity may cause people to notice things that they didn’t before.

 

A bust of Satoshi Nakamoto In Hungry

 

For example, many religions were founded by charismatic leaders. Charismatic authority does not come from any government office or tradition but solely from the relationship between a leader and their followers. Charismatic leaders are seen by their followers as superhuman or at least extraordinary. Because this relationship is precarious, leaders often remain aloof to keep followers from seeing them as ordinary human beings.

Several commentators have noted that Bitcoin inventor Satoshi Nakamoto resembles a sort of prophet. Nakamoto’s true identity – or whether Nakamoto is actually a team of people – remains a mystery. But the intrigue surrounding this figure is a source of charisma with consequences for bitcoin’s economic value. Many who invest in bitcoin do so in part because they regard Nakamoto as a genius and an economic rebel. In Budapest, artists even erected a bronze statue as a tribute to Nakamoto.

There’s also a connection between Bitcoin and millennialism, or the belief in a coming collective salvation for a select group of people.

In Christianity, millennial expectations involve the return of Jesus and the final judgment of the living and the dead. Some Bitcoiners believe in an inevitable coming “hyperbitcoinization” in which bitcoin will be the only valid currency. When this happens, the “Bitcoin believers” who invested will be justified, while the “no coiners” who shunned cryptocurrency will lose everything.

A Path to Salvation

Finally, some Bitcoiners view bitcoin as not just a way to make money, but as the answer to all of humanity’s problems.

“Because the root cause of all of our problems is basically money printing and capital misallocation as a result of that,” McCook argues, “the only way the whales are going to be saved, or the trees are going to be saved, or the kids are going to be saved, is if we just stop the degeneracy.”

This attitude may be the most significant point of comparison with religious traditions. In his book “God Is Not One,” religion professor Stephen Prothero highlights the distinctiveness of world religions using a four-point model, in which each tradition identifies a unique problem with the human condition, posits a solution, offers specific practices to achieve the solution and puts forth exemplars to model that path.

This model can be applied to Bitcoin: The problem is fiat currency, the solution is Bitcoin, and the practices include encouraging others to invest, “stacking sats” and “hodling” – refusing to sell bitcoin to keep its value up. The exemplars include Satoshi and other figures involved in the creation of blockchain technology.

So Does this Comparison Prove that Bitcoin is a Religion?

Not necessarily, because theologians, sociologists and legal theorists have many different definitions of religion, all of which are more or less useful depending on what the definition is being used for.

However, this comparison may help people understand why Bitcoin has become so attractive to so many people, in ways that would not be possible if Bitcoin were approached as a purely economic phenomenon.

 

Suggested Reading

An Archive of Memes from Stonks’ Heyday in 2021

Dogecoin Group Works to Give Currency Greater Purpose

Blockchain, Beverages, and Baloney

Blockchain 2022 – What’s Next?

 

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Wednesday, February 02, 2022

DLH (DLHC)
Post Call Commentary and Updated Models

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.

Base Business Outstanding. The 6.7% y-o-y rise in the ongoing base business is key, in our view, as it is indicative of DLH’s expanded array of offerings and the Company’s ability to win additional business. Demand for DLH’s services in existing and adjacent markets continues to expand as federal agencies place increased emphasis on advanced technology solutions and DLH is well positioned to capitalize.


CR: Positive and Negative.  The ongoing Continuing Resolution is delaying new programs and awards but we believe the key Federal agencies DLH targets continue to enjoy broad bi-partisan support and will quickly return to normal once a budget is passed …

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. 

 

Vectrus Launches Expanded Converged Environment Service Offering to Support DoD Readiness and Modernization Initiatives

Research, News, and Market Data on Vectrus

 

 COLORADO SPRINGS, Colo., Feb. 1, 2022 /PRNewswire/ — Vectrus, Inc. (NYSE: VEC) is excited to announce the expansion of its Converged Environment service offering, which designs and implements integrated technology solutions to address installation management challenges faced by the Department of Defense (DoD). The Converged Environment incorporates and expands Vectrus’ existing Converged Infrastructure offering, creating operational efficiencies by integrating all aspects of physical and digital infrastructure. In doing so, the Converged Environment improves performance and reduces costs across communications, assets, logistics, supply chains, acquisition, cyber and physical security, facilities, and operational processes.

Much of the military’s base operations today relies on aging infrastructure and manual inputs, while leaving gaps in the information leaders need. The result is an operational model that falls short of the DoD’s modernization goals, which demand connected, resilient, and cost-effective solutions. The Vectrus Converged Environment approach is designed to meet and advance these needs.

“Unlike traditional solutions, the Vectrus approach exists at the intersection of technology, security, and assets, making us uniquely positioned to unlock the benefits that come with integration. Vectrus is also a service company, bringing highly expert leaders and users to these challenges, so we can shrink the cost and time between understanding an opportunity and implementing a converged solution,” said Corinne Minton-Package, Senior Vice President of Systems and Technology at Vectrus. “Our Converged Environment offering meets the demands of the military while promoting cost savings, increased security, and more strategic use of resources — and rapidly enabling critical data-driven decision-making for our customers.”

The Converged Environment approach is already in practice at Naval Base Coronado in San Diego. As prime contractor, Vectrus is integrating technology solutions and applications for a smart warehouse. This “warehouse of the future,” which involves transshipment between shore facilities and Naval units, will improve efficiency, accuracy, security, and safety of material across supply handling, management, storage, and distribution.

“Vectrus is a trusted partner of the U.S. military — our networked solutions enhance readiness, improve security, streamline logistics, and increase operational advantage. In short, we are the convergence point,” explained Minton-Package. “We are proud of this investment and are committed to developing tailored solutions to meet the DoD’s modernization objectives through the deployment of Vectrus Converged Environments.”

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 9,200 employees spanning 206 locations in 27 countries. In 2020, Vectrus generated sales of $1.4 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.

 

Vectrus Launches Expanded Converged Environment Service Offering to Support DoD Readiness and Modernization Initiatives

Research, News, and Market Data on Vectrus

 

 COLORADO SPRINGS, Colo., Feb. 1, 2022 /PRNewswire/ — Vectrus, Inc. (NYSE: VEC) is excited to announce the expansion of its Converged Environment service offering, which designs and implements integrated technology solutions to address installation management challenges faced by the Department of Defense (DoD). The Converged Environment incorporates and expands Vectrus’ existing Converged Infrastructure offering, creating operational efficiencies by integrating all aspects of physical and digital infrastructure. In doing so, the Converged Environment improves performance and reduces costs across communications, assets, logistics, supply chains, acquisition, cyber and physical security, facilities, and operational processes.

Much of the military’s base operations today relies on aging infrastructure and manual inputs, while leaving gaps in the information leaders need. The result is an operational model that falls short of the DoD’s modernization goals, which demand connected, resilient, and cost-effective solutions. The Vectrus Converged Environment approach is designed to meet and advance these needs.

“Unlike traditional solutions, the Vectrus approach exists at the intersection of technology, security, and assets, making us uniquely positioned to unlock the benefits that come with integration. Vectrus is also a service company, bringing highly expert leaders and users to these challenges, so we can shrink the cost and time between understanding an opportunity and implementing a converged solution,” said Corinne Minton-Package, Senior Vice President of Systems and Technology at Vectrus. “Our Converged Environment offering meets the demands of the military while promoting cost savings, increased security, and more strategic use of resources — and rapidly enabling critical data-driven decision-making for our customers.”

The Converged Environment approach is already in practice at Naval Base Coronado in San Diego. As prime contractor, Vectrus is integrating technology solutions and applications for a smart warehouse. This “warehouse of the future,” which involves transshipment between shore facilities and Naval units, will improve efficiency, accuracy, security, and safety of material across supply handling, management, storage, and distribution.

“Vectrus is a trusted partner of the U.S. military — our networked solutions enhance readiness, improve security, streamline logistics, and increase operational advantage. In short, we are the convergence point,” explained Minton-Package. “We are proud of this investment and are committed to developing tailored solutions to meet the DoD’s modernization objectives through the deployment of Vectrus Converged Environments.”

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 9,200 employees spanning 206 locations in 27 countries. In 2020, Vectrus generated sales of $1.4 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.

Tuesday, February 01, 2022

DLH (DLHC)
First Quarter Fiscal 2022 Results

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.

1QFY22 Results. Revenue totaled $152.8 million, up from $57.9 million in 1Q21. The short-term FEMA awards accounted for $91.1 million of the increase. Earnings were $7.8 million, or $0.55 per diluted share, compared to $1.8 million, or $0.13 per diluted share last year. Ex FEMA, DLH still reported excellent results. Revenue rose 7% year-over-year to $61.7 million, while earnings were $3.1 million, or $0.22 per diluted share. We had projected revenue of $158 million and EPS of $0.48.


Debt Paydown Continues.  During the quarter, DLH reduced the outstanding term loan to $42.9 million from the $46.8 million outstanding at fiscal year end. Mandatory principal amortization on the loan has now been satisfied until March 31, 2024. We expect debt reduction to continue to be a focus of management, all else being equal. With the rapid paydown, additional M&A, which remains a key aspect of …

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