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Kelly® Reports Fourth-Quarter and Full-Year Earnings 2021

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Kelly® Reports Fourth-Quarter and Full-Year Earnings 2021

Research, News, and Market Data on Kelly

 

– Q4 revenue increased 0.7%, or 6% as adjusted

– Q4 gross profit rate of 19.7%, improved 160 bps

– Q4 operating earnings of $15.3 million, or earnings of $19.4 million as adjusted, compared to earnings of $13.9 million in the corresponding quarter of 2020 as adjusted, up 40% on an adjusted basis

– Full year 2021 operating earnings of $48.6 million, or earnings of $52.6 million as adjusted, compared to adjusted earnings of $44.3 million last year, up 19% on an adjusted basis

– To unlock capital to accelerate Kelly’s specialty strategy, Kelly and Persol Holdings will unwind cross-ownership and Kelly will reduce its ownership interest in PersolKelly, the companies’ joint venture in the APAC region, in Q1 2022

 

TROY, Mich., 
Feb. 14, 2022 /PRNewswire/ — Kelly® (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced results for the fourth quarter and full year of 2021. The company’s 2021 fiscal year is a 52-week year, and the fourth quarter of 2021 includes 13 weeks. The company’s 2020 fiscal year was a 53-week year, and the fourth quarter of 2020 included 14 weeks.

Peter Quigley, president and chief executive officer, announced revenue for the fourth quarter of 2021 totaled 
$1.3 billion, a 0.7% increase compared to the corresponding quarter of 2020. Year-over-year revenue trends were negatively impacted by the additional week in the 2020 period. Adjusted for the impact of the additional week in 2020, revenue for the fourth quarter of 2021 increased 6.0%. Improving year-over-year revenues in the quarter reflect increasing customer demand compared to the COVID-19-impacted prior year period. 

Earnings from operations in the fourth quarter of 2021 totaled 
$15.3 million, compared to earnings of 
$9.5 million reported in the fourth quarter of 2020. The 2021 fourth-quarter results include a 
$4.1 million restructuring charge. The 2020 fourth-quarter results included a 
$4.4 million restructuring charge. On an adjusted basis, earnings from operations were 
$19.4 million compared to 
$13.9 million in the corresponding quarter of 2020.

Diluted earnings per share in the fourth quarter of 2021 were 
$1.80 compared to 
$0.59 per share in the fourth quarter of 2020. Included in the earnings per share in the fourth quarter of 2021 is a non-cash gain, net of tax, on Kelly’s investment in Persol Holdings common stock of 
$0.87 and a gain on insurance settlement, net of tax, of 
$0.36, partially offset by a loss of 
$0.08 related to restructuring charges, net of tax. Included in the earnings per share in the fourth quarter of 2020 is 
$0.26 from a non-cash gain per share on Kelly’s investment in Persol Holdings common stock, net of tax, partially offset by a loss of 
$0.08 related to restructuring charges, net of tax. On an adjusted basis, earnings per share were 
$0.65 in the fourth quarter of 2021 compared to 
$0.41 in the corresponding quarter of 2020.

“Our fourth-quarter results reflect that the economic recovery continues. While our revenue growth in the quarter was affected by talent supply, we are pleased with our ability to leverage growth into solid gross profit and earnings improvements,” said Quigley.

Operating earnings for the full year of 2021 totaled 
$48.6 million, compared to a loss of 
$93.6 million reported for the full year of 2020. The 2021 full-year results included a 
$4.0 million restructuring charge. The 2020 full-year results include a 
$147.7 million goodwill impairment charge, 
$12.8 million of restructuring charges, a 
$9.5 million customer dispute charge and a 
$32.1 million gain on sale of assets. On an adjusted basis, earnings from operations for the full year of 2021 were 
$52.6 million compared to 
$44.3 million for the full year of 2020.

Diluted earnings per share for the full year of 2021 were 
$3.91 compared to a loss per share of 
$1.83 for the full year of 2020. Included in the earnings per share for the full year of 2021 is 
$2.12 from a non-cash gain on Kelly’s investment in Persol Holdings common stock, net of tax, and a 
$0.36 gain on insurance settlement, net of tax, partially offset by a 
$0.07 per share restructuring charge, net of tax. Included in the loss per share for the full year of 2020 is a non-cash goodwill impairment charge, net of tax, of 
$3.17; restructuring charges, net of tax, of 
$0.24; a 
$0.17 customer dispute charge, net of tax; and a non-cash loss, net of tax, on Kelly’s investment in Persol Holdings common stock of 
$0.29, partially offset by a gain of 
$0.61 related to the gain on sale of assets, net of tax. On an adjusted basis, earnings per share were 
$1.51 for the full year of 2021 compared to 
$1.44 for the full year of 2020.

In other actions taken today, Persol Holdings and Kelly have agreed to changes in their relationship in the APAC region.  

First, Kelly will reduce its ownership interest in 
PersolKelly Pte. Ltd., the staffing joint venture established between Kelly and Persol in 2016, from 49% to 2.5%. Persol will acquire 46.5% of the shares held by Kelly through a Persol subsidiary. These changes will have no impact on the operations of PersolKelly, which remains a premier staffing supplier across the region. PersolKelly will continue to use the brand name, PersolKelly, for a period of time.

Second, Kelly and Persol will discontinue their cross-shareholding. Kelly holds 9,106,800 shares of Persol Holdings common stock, and Persol owns 1,576,169 shares of Kelly’s Class A common stock and 1,475 shares of its Class B common stock. Kelly will monetize its equity holdings in Persol by selling all its shares in an open market transaction. Kelly will also buy back from Persol its equity position in Kelly. These actions will allow Kelly to realize the appreciation of its equity investment in Persol and enable the company to reinvest in Kelly’s specialty growth strategy. Both stock transactions are expected to be completed within two business days.

Persol Holdings continues to be a valued partner to Kelly, and the companies’ senior leaders will continue to regularly meet as part of this valued business partnership. PersolKelly, under the leadership of CEO  Francis Koh, will continue to provide workforce solutions to customers across 13 markets in the 
Asia Pacific market and Kelly, under the leadership of  Pete Hamilton, will continue to operate KellyOCG in the region.

“Kelly is already building on our momentum from 2021, which included 
Softworld, our largest acquisition to date, the creation of a strong, diverse leadership team, and the introduction of new solutions and products in our specialty businesses,” said Quigley. “With the additional transactions announced today, Kelly will free up significant capital to invest in our specialty strategy, positioning us to elevate growth and profitability in 2022 and beyond.”

In conjunction with its fourth-quarter earnings release, Kelly has published a financial presentation on the Investor Relations page of its public website and will host a conference call at 
9 a.m. ET on February 14 to review the results and answer questions. The call may be accessed in one of the following ways:

Via the Internet:
Kellyservices.com

Via the Telephone
(877) 692-8955 (toll free) or (234) 720-6979 (caller paid)
Enter access code 5728672
After the prompt, please enter ”#”

A recording of the conference call will be available after 
1:30 p.m. ET on 
February 14, 2022, at (866) 207-1041 (toll-free) and (402) 970-0847 (caller-paid). The access code is 7976390#. The recording will also be available at kellyservices.com during this period.

This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These factors include, but are not limited to, changing market and economic conditions, the impact of the novel coronavirus (COVID-19) outbreak, competitive market pressures including pricing and technology introductions and disruptions, disruption in the labor market and weakened demand for human capital resulting from technological advances, competition law risks, the impact of changes in laws and regulations (including federal, state and international tax laws), unexpected changes in claim trends on workers’ compensation, unemployment, disability and medical benefit plans, or the risk of additional tax liabilities in excess of our estimates, our ability to achieve our business strategy, our ability to successfully develop new service offerings, material changes in demand from or loss of large corporate customers as well as changes in their buying practices, risks particular to doing business with government or government contractors, the risk of damage to our brand, our exposure to risks associated with services outside traditional staffing, including business process outsourcing, services of licensed professionals and services connecting talent to independent work, our increasing dependency on third parties for the execution of critical functions, our ability to effectively implement and manage our information technology strategy, the risks associated with past and future acquisitions, including risk of related impairment of goodwill and intangible assets, exposure to risks associated with investments in equity affiliates including 
PersolKelly Pte. Ltd., risks associated with conducting business in foreign countries, including foreign currency fluctuations, the exposure to potential market and currency exchange risks relating to our investment in Persol Holdings, risks associated with violations of anti-corruption, trade protection and other laws and regulations, availability of qualified full-time employees, availability of temporary workers with appropriate skills required by customers, liabilities for employment-related claims and losses, including class action lawsuits and collective actions, our ability to sustain critical business applications through our key data centers, risks arising from failure to preserve the privacy of information entrusted to us or to meet our obligations under global privacy laws, the risk of cyberattacks or other breaches of network or information technology security, our ability to realize value from our tax credit and net operating loss carryforwards, our ability to maintain specified financial covenants in our bank facilities to continue to access credit markets, and other risks, uncertainties and factors discussed in this release and in the Company’s filings with the 
Securities and Exchange Commission.  Actual results may differ materially from any forward-looking statements contained herein, and we undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

About Kelly®

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

MEDIA CONTACT:

ANALYST CONTACT:

Jane Stehney

James Polehna

(248) 765-6864

(248) 244-4586

stehnja@kellyservices.com

polehjm@kellyservices.com

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE 13 WEEKS ENDED JANUARY 2, 2022 AND 14 WEEKS ENDED JANUARY 3, 2021

(UNAUDITED)

(In millions of dollars except per share data)

%

CC %

2021

2020

Change

Change

Change

Revenue from services

$

1,250.3

$

1,241.4

$

8.9

0.7

%

1.1

%

Cost of services

1,004.3

1,017.3

(13.0)

(1.3)

Gross profit

246.0

224.1

21.9

9.8

10.1

Selling, general and administrative expenses

230.7

214.6

16.1

7.5

7.9

Earnings from operations

15.3

9.5

5.8

60.7

Gain (loss) on investment in Persol Holdings

50.0

14.8

35.2

236.8

Gain on insurance settlement

19.0

—

19.0

NM

Other income (expense), net

0.4

(0.2)

0.6

277.9

Earnings before taxes and equity in net earnings (loss) of affiliate

84.7

24.1

60.6

251.5

Income tax expense (benefit)

16.1

2.5

13.6

NM

Net earnings before equity in net earnings (loss) of affiliate

68.6

21.6

47.0

218.4

Equity in net earnings (loss) of affiliate

3.1

1.8

1.3

72.2

Net earnings

$

71.7

$

23.4

$

48.3

207.1

%

Basic earnings per share

$

1.80

$

0.59

$

1.21

205.1

%

Diluted earnings per share

$

1.80

$

0.59

$

1.21

205.1

%

STATISTICS:

Permanent placement income (included in revenue from services)

$

21.1

$

10.8

$

10.3

94.7

%

95.0

%

Gross profit rate

19.7

%

18.1

%

1.6

pts.

Conversion rate

6.2

4.2

2.0

Adjusted EBITDA

$

27.7

$

20.4

$

7.3

Adjusted EBITDA margin

2.2

%

1.6

%

0.6

pts.

Effective income tax rate

19.0

%

10.6

%

8.4

pts.

Average number of shares outstanding (millions):

     Basic

39.4

39.3

     Diluted

39.6

39.4

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE 52 WEEKS ENDED JANUARY 2, 2022 AND 53 WEEKS ENDED JANUARY 3, 2021

(UNAUDITED)

(In millions of dollars except per share data)

%

CC %

2021

2020

Change

Change

Change

Revenue from services

$

4,909.7

$

4,516.0

$

393.7

8.7

%

7.8

%

Cost of services

3,990.5

3,688.4

302.1

8.2

Gross profit

919.2

827.6

91.6

11.1

10.1

Selling, general and administrative expenses

870.6

805.6

65.0

8.1

7.3

Goodwill impairment charge

—

147.7

(147.7)

NM

Gain on sale of assets

—

(32.1)

32.1

NM

Earnings (loss) from operations

48.6

(93.6)

142.2

NM

Gain (loss) on investment in Persol Holdings

121.8

(16.6)

138.4

NM

Gain on insurance settlement

19.0

—

19.0

NM

Other income (expense), net

(3.6)

3.4

(7.0)

(206.5)

Earnings (loss) before taxes and equity in net earnings (loss) of affiliate

185.8

(106.8)

292.6

NM

Income tax expense (benefit)

35.1

(34.0)

69.1

203.4

Net earnings (loss) before equity in net earnings (loss) of affiliate

150.7

(72.8)

223.5

NM

Equity in net earnings (loss) of affiliate

5.4

0.8

4.6

NM

Net earnings (loss)

$

156.1

$

(72.0)

$

228.1

NM

%

Basic earnings (loss) per share

$

3.93

$

(1.83)

$

5.76

NM

%

Diluted earnings (loss) per share

$

3.91

$

(1.83)

$

5.74

NM

%

STATISTICS:

Permanent placement income (included in revenue from services)

$

75.4

$

39.7

$

35.7

89.7

%

87.4

%

Gross profit rate

18.7

%

18.3

%

0.4

pts.

Conversion rate

5.3

(11.3)

16.6

Adjusted EBITDA

$

84.1

$

69.0

$

15.1

Adjusted EBITDA margin

1.7

%

1.5

%

0.2

pts.

Effective income tax rate

18.9

%

31.8

%

(12.9)

pts.

Average number of shares outstanding (millions):

     Basic

39.4

39.3

     Diluted

39.5

39.3

KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

Fourth Quarter

2021
(13 Wks)

2020
(14 Wks)

%
Change

CC %
Change

Professional & Industrial

  Revenue from services

$

450.7

$

511.7

(11.9)

%

(12.1)

%

  Gross profit

82.3

89.1

(7.7)

(7.9)

  SG&A expenses excluding restructuring charges

70.8

76.5

(7.4)

(7.6)

  Restructuring charges

—

1.7

NM

NM

  Total SG&A expenses

70.8

78.2

(9.5)

(9.6)

  Earnings (loss) from operations

11.5

10.9

5.3

  Earnings (loss) from operations excluding restructuring charges

11.5

12.6

(9.2)

  Gross profit rate

18.2

%

17.4

%

0.8

pts.

Science, Engineering & Technology

  Revenue from services

$

297.7

$

257.6

15.5

%

15.5

%

  Gross profit

66.1

53.4

23.7

23.7

  SG&A expenses excluding restructuring charges

49.2

35.2

39.7

39.6

  Restructuring charges

—

0.1

NM

NM

  Total SG&A expenses

49.2

35.3

39.3

39.3

  Earnings (loss) from operations

16.9

18.1

(6.7)

  Earnings (loss) from operations excluding restructuring charges

16.9

18.2

(7.1)

  Gross profit rate

22.2

%

20.7

%

1.5

pts.

Education

  Revenue from services

$

132.4

$

91.8

44.3

%

44.3

%

  Gross profit

21.1

13.4

57.6

57.6

  SG&A expenses excluding restructuring charges

15.6

13.3

17.1

17.1

  Restructuring charges

—

0.2

NM

NM

  Total SG&A expenses

15.6

13.5

15.3

15.3

  Earnings (loss) from operations

5.5

(0.1)

NM

  Earnings (loss) from operations excluding restructuring charges

5.5

0.1

NM

  Gross profit rate

15.9

%

14.6

%

1.3

pts.

Outsourcing & Consulting

Revenue from services

$

112.1

$

102.5

9.3

%

9.4

%

Gross profit

38.0

32.7

16.3

16.5

SG&A expenses excluding restructuring charges

33.5

28.9

16.2

16.4

Restructuring charges

—

0.3

NM

NM

Total SG&A expenses

33.5

29.2

15.1

15.4

Earnings (loss) from operations

4.5

3.5

26.2

Earnings (loss) from operations excluding restructuring charges

4.5

3.8

17.6

Gross profit rate

34.0

%

31.9

%

2.1

pts.

International

  Revenue from services

$

257.7

$

278.0

(7.2)

%

(5.4)

%

  Gross profit

38.5

35.5

8.6

11.0

  SG&A expenses excluding restructuring charges

35.5

33.2

6.9

9.2

  Restructuring charges

1.2

0.3

365.5

384.5

  Total SG&A expenses

36.7

33.5

9.6

12.1

  Earnings (loss) from operations

1.8

2.0

(7.7)

  Earnings (loss) from operations excluding restructuring charges

3.0

2.3

35.1

  Gross profit rate

15.0

%

12.8

%

2.2

pts.

KELLY SERVICES, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS BY SEGMENT

(UNAUDITED)

(In millions of dollars)

December Year to Date

2021
(52 Wks)

2020
(53 Wks)

%
Change

CC %
Change

Professional & Industrial

  Revenue from services

$

1,837.4

$

1,858.4

(1.1)

%

(1.5)

%

  Gross profit

310.0

330.2

(6.1)

(6.5)

  SG&A expenses excluding restructuring charges

278.6

282.6

(1.4)

(1.7)

  Restructuring charges

—

6.0

NM

NM

  Total SG&A expenses

278.6

288.6

(3.5)

(3.8)

  Earnings (loss) from operations

31.4

41.6

(24.4)

  Earnings (loss) from operations excluding restructuring charges

31.4

47.6

(34.0)

  Gross profit rate

16.9

%

17.8

%

(0.9)

pts.

Science, Engineering & Technology

  Revenue from services

$

1,156.8

$

1,019.1

13.5

%

13.3

%

  Gross profit

253.9

209.4

21.3

21.1

  SG&A expenses excluding restructuring charges

180.2

133.8

34.7

34.5

  Restructuring charges

—

0.6

NM

NM

  Total SG&A expenses

180.2

134.4

34.1

33.9

  Earnings (loss) from operations

73.7

75.0

(1.7)

  Earnings (loss) from operations excluding restructuring charges

73.7

75.6

(2.5)

  Gross profit rate

21.9

%

20.5

%

1.4

pts.

Education

  Revenue from services

$

416.5

$

286.9

45.2

%

45.2

%

  Gross profit

65.1

42.2

54.1

54.1

  SG&A expenses excluding restructuring charges

62.1

50.2

23.6

23.6

  Restructuring charges

—

1.0

NM

NM

  Total SG&A expenses

62.1

51.2

21.1

21.1

  Earnings (loss) from operations

3.0

(9.0)

NM

  Earnings (loss) from operations excluding restructuring charges

3.0

(8.0)

NM

  Gross profit rate

15.6

%

14.7

%

0.9

pts.

Outsourcing & Consulting

  Revenue from services

$

432.1

$

363.5

18.9

%

17.9

%

  Gross profit

141.4

119.8

18.0

16.3

  SG&A expenses excluding restructuring charges

122.7

108.0

13.6

12.4

  Restructuring charges

—

0.3

NM

NM

  Total SG&A expenses

122.7

108.3

13.3

12.0

  Earnings (loss) from operations

18.7

11.5

62.7

  Earnings (loss) from operations excluding restructuring charges

18.7

11.8

58.3

  Gross profit rate

32.7

%

33.0

%

(0.3)

pts.

International

  Revenue from services

$

1067.8

$

988.6

8.0

%

4.9

%

  Gross profit

148.8

126.0

18.1

14.8

  SG&A expenses excluding restructuring charges

137.7

133.5

3.1

0.2

  Restructuring charges

1.2

1.4

(10.2)

(6.6)

  Total SG&A expenses

138.9

134.9

2.9

0.1

  Earnings (loss) from operations

9.9

(8.9)

NM

  Earnings (loss) from operations excluding restructuring charges

11.1

(7.5)

NM

  Gross profit rate

13.9

%

12.7

%

1.2

pts.

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In millions of dollars)

Jan.  2, 2022

Jan.  3, 2021

Current Assets

  Cash and equivalents

$

112.7

$

223.0

  Trade accounts receivable, less allowances of

    $12.6 and $13.3, respectively

1,423.2

1,265.2

  Prepaid expenses and other current assets

52.8

61.4

Total current assets

1,588.7

1,549.6

Noncurrent Assets

Property and equipment, net

35.3

41.0

Operating lease right-of-use assets

75.8

83.2

Deferred taxes

302.8

282.0

Goodwill, net

114.8

3.5

Investment in Persol Holdings

264.3

164.2

Investment in equity affiliate

123.4

118.5

Other assets

389.1

319.9

Total noncurrent assets

1,305.5

1,012.3

Total Assets

$

2,894.2

$

2,561.9

Current Liabilities

  Short-term borrowings

$

—

$

0.3

  Accounts payable and accrued liabilities

687.2

536.8

Operating lease liabilities

17.5

19.6

  Accrued payroll and related taxes

318.4

293.0

  Accrued workers’ compensation and other claims

20.8

22.7

  Income and other taxes

51.3

53.2

Total current liabilities

1,095.2

925.6

Noncurrent Liabilities

Operating lease liabilities

61.4

67.5

Accrued payroll and related taxes

57.6

58.5

  Accrued workers’ compensation and other claims

37.0

42.2

  Accrued retirement benefits

220.0

205.8

  Other long-term liabilities

86.8

59.3

Total noncurrent liabilities

462.8

433.3

Stockholders’ Equity

  Common stock

40.1

40.1

  Treasury stock

(15.1)

(17.1)

  Paid-in capital

23.9

21.3

  Earnings invested in the business

1,315.0

1,162.9

  Accumulated other comprehensive income (loss)

(27.7)

(4.2)

Total stockholders’ equity

1,336.2

1,203.0

Total Liabilities and Stockholders’ Equity

$

2,894.2

$

2,561.9

Statistics:

 Working Capital

$

493.5

$

624.0

 Current Ratio

1.5

1.7

 Debt-to-capital %

0.0

%

0.0

%

 Global Days Sales Outstanding

60

64

 Year-to-Date Free Cash Flow

$

73.8

$

170.5

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE 52 WEEKS ENDED JANUARY 2, 2022 AND 53 WEEKS ENDED JANUARY 3, 2021

(UNAUDITED)

(In millions of dollars)

2021

2020

Cash flows from operating activities:

  Net earnings (loss)

$

156.1

$

(72.0)

  Adjustments to reconcile net earnings to net cash from operating activities:

    Goodwill impairment charge

—

147.7

    Deferred income taxes

21.6

(57.1)

    Depreciation and amortization

29.8

24.2

    Operating lease asset amortization

21.2

21.1

    Provision for credit losses and sales allowances

1.6

12.8

    Stock-based compensation

5.1

3.9

    (Gain) loss on investment in Persol Holdings

(121.8)

16.6

    Gain on insurance settlement

(19.0)

—

    Gain on sale of assets

—

(32.1)

    Equity in net (earnings) loss of PersolKelly Pte. Ltd.

(5.4)

(0.8)

    Other, net

6.0

1.4

  Changes in operating assets and liabilities, net of acquisitions

(10.2)

120.3

  Net cash from operating activities

85.0

186.0

Cash flows from investing activities:

  Capital expenditures

(11.2)

(15.5)

  Proceeds from sale of assets

—

55.5

  Acquisition of companies, net of cash received

(213.0)

(39.2)

  Proceeds from company-owned life insurance

12.2

2.3

  Proceeds from insurance settlement

19.0

—

  Proceeds from sale of Brazil, net of cash disposed

—

1.2

  Proceeds (payments) related to loans to equity affiliate

5.9

5.6

  Proceeds from (investment in) equity securities

5.0

(0.2)

  Other investing activities

1.4

0.1

    Net cash (used in) from investing activities

(180.7)

9.8

Cash flows from financing activities:

  Net change in short-term borrowings

(0.2)

(1.7)

  Financing lease payments

(1.5)

(2.0)

  Dividend payments

(4.0)

(3.0)

  Payments of tax withholding for stock awards

(0.6)

(1.2)

  Contingent consideration payments

(1.6)

—

  Other financing activities

(0.2)

(0.2)

    Net cash used in financing activities

(8.1)

(8.1)

Effect of exchange rates on cash, cash equivalents and restricted cash

(4.8)

9.4

Net change in cash, cash equivalents and restricted cash

(108.6)

197.1

Cash, cash equivalents and restricted cash at beginning of year

228.1

31.0

Cash, cash equivalents and restricted cash at end of year

$

119.5

$

228.1

KELLY SERVICES, INC. AND SUBSIDIARIES

REVENUE FROM SERVICES

(UNAUDITED)

(In millions of dollars)

Fourth Quarter

2021

2020

%

CC %

(13 Wks)

(14 Wks)

Change

Change

Americas

  United States

$

908.6

$

891.0

2.0

%

2.0

%

  Canada

38.1

33.8

12.6

8.6

  Puerto Rico

25.5

20.9

21.6

21.6

  Mexico

10.6

35.8

(70.5)

(70.1)

Total Americas Region

982.8

981.5

0.1

—

Europe

  Switzerland

61.0

59.2

3.1

4.9

  France

55.0

57.0

(3.5)

0.5

  Portugal

37.3

42.6

(12.4)

(8.6)

  Russia

32.9

29.9

9.8

4.9

  Italy

18.2

15.7

15.8

20.7

  United Kingdom

16.4

17.2

(4.5)

(6.7)

  Germany

9.4

8.0

17.4

22.3

  Ireland

8.0

5.9

36.9

42.4

  Other

18.1

15.9

13.5

17.4

Total Europe Region

256.3

251.4

2.0

4.0

Total Asia-Pacific Region

11.2

8.5

33.3

34.5

Total Kelly Services, Inc.

$

1,250.3

$

1,241.4

0.7

%

1.1

%

KELLY SERVICES, INC. AND SUBSIDIARIES

REVENUE FROM SERVICES

(UNAUDITED)

(In millions of dollars)

December Year to Date

2021

2020

%

CC %

(52 Wks)

(53 Wks)

Change

Change

Americas

  United States

$

3,513.4

$

3,260.2

7.8

%

7.8

%

  Canada

155.0

122.5

26.5

18.2

  Puerto Rico

102.1

77.0

32.5

32.5

  Mexico

92.7

114.4

(19.0)

(23.2)

  Brazil

—

17.0

NM

NM

Total Americas Region

3,863.2

3,591.1

7.6

7.2

Europe

  France

223.1

198.2

12.5

8.6

  Switzerland

222.2

200.4

10.9

8.2

  Portugal

158.2

141.7

11.7

7.6

  Russia

132.2

118.5

11.5

14.3

  Italy

74.2

58.2

27.4

23.0

  United Kingdom

68.3

73.7

(7.4)

(13.7)

  Germany

34.0

30.1

13.0

9.7

  Ireland

26.8

19.9

34.9

31.4

  Other

68.0

54.6

24.5

20.4

Total Europe Region

1,007.0

895.3

12.5

9.5

Total Asia-Pacific Region

39.5

29.6

33.8

27.7

Total Kelly Services, Inc.

$

4,909.7

$

4,516.0

8.7

%

7.8

%

 KELLY SERVICES, INC. AND SUBSIDIARIES

 RECONCILIATION OF NON-GAAP MEASURES

FOURTH QUARTER

 (UNAUDITED)

 (In millions of dollars)

2021

2020

SG&A Expenses:

As Reported

Restructuring(5)

Adjusted

Adjusted

Professional & Industrial

$                    70.8

$                       —

$               70.8

$               76.5

Science, Engineering & Technology

49.2

—

49.2

35.2

Education

15.6

—

15.6

13.3

Outsourcing & Consulting

33.5

—

33.5

28.9

International

36.7

(1.2)

35.5

33.2

Corporate

24.9

(2.9)

22.0

23.1

Total Company

$                  230.7

$                     (4.1)

$            226.6

$            210.2

2021

2020

Earnings (Loss) from Operations:

As Reported

Restructuring(5)

Adjusted

Adjusted

Professional & Industrial

$                    11.5

$                       —

$               11.5

$               12.6

Science, Engineering & Technology

16.9

—

16.9

18.2

Education

5.5

—

5.5

0.1

Outsourcing & Consulting

4.5

—

4.5

3.8

International

1.8

1.2

3.0

2.3

Corporate

(24.9)

2.9

(22.0)

(23.1)

Total Company

$                    15.3

$                      4.1

$               19.4

$               13.9

 KELLY SERVICES, INC. AND SUBSIDIARIES

 RECONCILIATION OF NON-GAAP MEASURES

FOURTH QUARTER

 (UNAUDITED)

 (In millions of dollars)

2020

SG&A Expenses:

As Reported

Restructuring(5)

Adjusted

Professional & Industrial

$                    78.2

$                     (1.7)

$               76.5

Science, Engineering & Technology

35.3

(0.1)

35.2

Education

13.5

(0.2)

13.3

Outsourcing & Consulting

29.2

(0.3)

28.9

International

33.5

(0.3)

33.2

Corporate

24.9

(1.8)

23.1

Total Company

$                  214.6

$                     (4.4)

$            210.2

2020

Earnings (Loss) from Operations:

As Reported

Restructuring(5)

Adjusted

Professional & Industrial

$                    10.9

$                      1.7

$               12.6

Science, Engineering & Technology

18.1

0.1

18.2

Education

(0.1)

0.2

0.1

Outsourcing & Consulting

3.5

0.3

3.8

International

2.0

0.3

2.3

Corporate

(24.9)

1.8

(23.1)

Total Company

$                      9.5

$                      4.4

$               13.9

KELLY SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

DECEMBER YEAR TO DATE

(UNAUDITED)

(In millions of dollars)

2021

2020

SG&A Expenses:

As Reported

Restructuring(5)

Adjusted

Adjusted

Professional & Industrial

$                  278.6

$                       —

$            278.6

$            282.6

Science, Engineering & Technology

180.2

—

180.2

133.8

Education

62.1

—

62.1

50.2

Outsourcing & Consulting

122.7

—

122.7

108.0

International

138.9

(1.2)

137.7

124.0

Corporate

88.1

(2.8)

85.3

84.7

Total Company

$                  870.6

$                     (4.0)

$            866.6

$            783.3

2021

2020

Earnings (Loss) from Operations:

As Reported

Restructuring(5)

Adjusted

Adjusted

Professional & Industrial

$                    31.4

$                       —

$               31.4

$               47.6

Science, Engineering & Technology

73.7

—

73.7

75.6

Education

3.0

—

3.0

(8.0)

Outsourcing & Consulting

18.7

—

18.7

11.8

International

9.9

1.2

11.1

2.0

Corporate

(88.1)

2.8

(85.3)

(84.7)

Total Company

$                    48.6

$                      4.0

$               52.6

$               44.3

 KELLY SERVICES, INC. AND SUBSIDIARIES

 RECONCILIATION OF NON-GAAP MEASURES

DECEMBER YEAR TO DATE

 (UNAUDITED)

 (In millions of dollars)

2020

SG&A Expenses:

As Reported

Customer Dispute(4)

Restructuring(5)

Adjusted

Professional & Industrial

$                  288.6

$                       —

$                     (6.0)

$            282.6

Science, Engineering & Technology

134.4

—

(0.6)

133.8

Education

51.2

—

(1.0)

50.2

Outsourcing & Consulting

108.3

—

(0.3)

108.0

International

134.9

(9.5)

(1.4)

124.0

Corporate

88.2

—

(3.5)

84.7

Total Company

$                  805.6

$                     (9.5)

$                  (12.8)

$            783.3

2020

Earnings (Loss) from Operations:

As Reported

Goodwill Impairment(1)

Gain on sale of assets(3)

Customer Dispute(4)

Restructuring(5)

Adjusted

Professional & Industrial

$               41.6

$                     —

$                  —

$                  —

$                      6.0

$               47.6

Science, Engineering & Technology

75.0

—

—

—

0.6

75.6

Education

(9.0)

—

—

—

1.0

(8.0)

Outsourcing & Consulting

11.5

—

—

—

0.3

11.8

International

(8.9)

—

—

9.5

1.4

2.0

Corporate

(203.8)

147.7

(32.1)

—

3.5

(84.7)

Total Company

$             (93.6)

$               147.7

$             (32.1)

$                 9.5

$                    12.8

$               44.3

KELLY SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

(UNAUDITED)

(In millions of dollars except per share data)

Fourth Quarter

December Year to Date

2021

2020

2021

2020

Income tax expense (benefit)

$             16.1

$               2.5

$             35.1

$           (34.0)

Taxes on goodwill impairment charge(1)

—

—

—

23.0

Taxes on investment in Persol Holdings(2)

(15.3)

(4.5)

(37.3)

5.1

Taxes on gain on sale of assets(3)

—

—

—

(8.1)

Taxes on customer dispute(4)

—

—

—

2.8

Taxes on restructuring charges(5)

1.0

1.0

1.0

3.2

Taxes on gain on insurance settlement(6)

(4.8)

—

(4.8)

—

Adjusted income tax expense (benefit)

$             (3.0)

$             (1.0)

$             (6.0)

$             (8.0)

Fourth Quarter

December Year to Date

2021

2020

2021

2020

Net earnings (loss)

$             71.7

$             23.4

$          156.1

$           (72.0)

Goodwill impairment charge, net of taxes(1)

—

—

—

124.7

(Gain) loss on investment in Persol Holdings, net of taxes(2)

(34.7)

(10.3)

(84.5)

11.5

(Gain) loss on sale of assets, net of taxes(3)

—

—

—

(23.9)

Customer dispute, net of taxes(4)

—

—

—

6.7

Restructuring charges, net of taxes(5)

3.1

3.4

3.0

9.6

Gain on insurance settlement, net of taxes(6)

(14.2)

—

(14.2)

—

Adjusted net earnings

$             25.9

$             16.5

$             60.4

$             56.6

Fourth Quarter

December Year to Date

2021

2020

2021

2020

Per Share

Per Share

Net earnings (loss)

$             1.80

$             0.59

$             3.91

$           (1.83)

Goodwill impairment charge, net of taxes(1)

—

—

—

3.17

(Gain) loss on investment in Persol Holdings, net of taxes(2)

(0.87)

(0.26)

(2.12)

0.29

Gain on sale of assets, net of taxes(3)

—

—

—

(0.61)

Customer dispute, net of taxes(4)

—

—

—

0.17

Restructuring charges, net of taxes(5)

0.08

0.08

0.07

0.24

Gain on insurance settlement, net of taxes(6)

(0.36)

—

(0.36)

—

Adjusted net earnings

$             0.65

$             0.41

$             1.51

$             1.44

Note: Earnings per share amounts for each quarter are required to be computed independently and may not equal the amounts computed for the total year.

KELLY SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES

(UNAUDITED)

(In millions of dollars)

Fourth Quarter

December Year to Date

2021

2020

2021

2020

Net earnings (loss)

$                71.7

$                23.4

$              156.1

$               (72.0)

Other (income) expense, net

(0.4)

0.2

3.6

(3.4)

Income tax expense (benefit)

16.1

2.5

35.1

(34.0)

Depreciation and amortization

8.3

6.5

31.5

24.7

EBITDA

95.7

32.6

226.3

(84.7)

Equity in net (earnings) loss of affiliate

(3.1)

(1.8)

(5.4)

(0.8)

Goodwill impairment charge(1)

—

—

—

147.7

(Gain) loss on investment in Persol Holdings(2)

(50.0)

(14.8)

(121.8)

16.6

Gain on sale of assets(3)

—

—

—

(32.1)

Customer dispute(4)

—

—

—

9.5

Restructuring(5)

4.1

4.4

4.0

12.8

Gain on insurance settlement(6)

(19.0)

—

(19.0)

—

Adjusted EBITDA

$                27.7

$                20.4

$                84.1

$                69.0

Adjusted EBITDA margin

2.2   %

1.6   %

1.7   %

1.5   %

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)

Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2020 goodwill impairment charge, the 2021 and 2020 gains and losses on the investment in Persol Holdings, the 2020 gain on sale of assets, the 2020 customer dispute, the 2021 and 2020 restructuring charges and the 2021 gain on insurance settlement are useful to understand the Company’s fiscal 2021 financial performance and increases comparability.  Specifically, Management believes that removing the impact of these items allows for a meaningful comparison of current period operating performance with the operating results of prior periods.  Management also believes that such measures are used by those analyzing performance of companies in the staffing industry to compare current performance to prior periods and to assess future performance.

Management uses Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation and amortization) and Adjusted EBITDA Margin (percent of total GAAP revenue) which Management believes is useful to compare operating performance compared to prior periods and uses it in conjunction with GAAP measures to assess performance. Our calculation of Adjusted EBITDA may not be consistent with similarly titled measures of other companies and should be used in conjunction with GAAP measurements.

These non-GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share.  As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company’s financial performance.  Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company’s financial performance.  Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

(1)

The goodwill impairment charge is the result of an interim impairment test the Company performed during the first quarter of 2020, due to a triggering event caused by a decline in the Company’s common stock price.

(2)

The gains and losses on the investment in Persol Holdings represent the change in fair value of the investment during the period presented and the related tax expense and benefit.

(3)

Gain on sale of assets in 2020 primarily represents the excess of the proceeds over the cost of the headquarters properties sold during the first quarter of 2020.

(4)

Customer dispute in 2020 represents a non-cash charge in Mexico to increase the reserve against a long-term receivable from a former customer based on an updated probability of loss assessment.

(5)

Restructuring charges in 2021 represent severance costs as part of cost management actions designed to increase operational efficiencies within enterprise functions that provide centralized support to operating units.  Restructuring charges in 2020 represent severance costs and lease terminations in preparation for the new operating model adopted in the third quarter of 2020.

(6)

Gain on insurance settlement represents a payment received in the fourth quarter of 2021 related to the settlement of claims under a representations and warranties insurance policy purchased by the Company in connection with the acquisition of Softworld.

SOURCE Kelly Services, Inc.

CoreCivic, Inc. (CXW) – Post Call Commentary and Updated Guidance

Posted on by Admin

Friday, February 11, 2022

CoreCivic, Inc. (CXW)
Post Call Commentary and Updated Guidance

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.

    Opportunity Exists. We continue to believe significant opportunity exists for CoreCivic to increase overall occupancy levels at its facilities. Rescinding of Title 42 and relaxation of Covid imposed occupancy restrictions are two of the key drivers. Management noted a return to pre-Covid occupancy levels could add some $40+ million of EBITDA.

    Capital Allocation.  The Company is currently in negotiations on a new credit facility, which management hopes to complete soon. Notably, management indicated only needing a facility one-quarter to one-third the size of the existing $1 billion facility. Once the credit facility is completed, we anticipate CoreCivic to implement alternative capital allocation strategies, including share repurchases …



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. 

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

Posted on by Admin

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. 

Release – CoreCivic Reports Fourth Quarter and Full Year 2021 Financial Results

Posted on by Admin



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

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

Posted on by Admin

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. 

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

Posted on by Admin

 


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.

How Lovers Spend Money on Valentines Day

Posted on by Admin 


  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 14th.

Last February 14th, 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:

 

How Lovers Spend Money on Valentine’s Day

Posted on by Admin 


  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 14th.

Last February 14th, 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

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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 18th 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 20th.

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

Posted on by Admin

 


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.

The Non-Economic Views of Bitcoin Include Religion

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  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

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Blockchain, Beverages, and Baloney

Blockchain 2022 – What’s Next?

 

Stay up to date. Follow us:

 

DLH (DLHC) – Post Call Commentary and Updated Models

Posted on by Admin

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.