Channelchek C-Suite Interview Series

FAT Brands (FAT) President & CEO Andrew Wiederhorn

  • What has fueled FAT Brands’ 600% growth
  • An update on the management structure
  • Returning to pre-covid levels; has delivery dropped off as customers return to restaurants?
  • The impact of inflation and supply chain constraints
  • The outlook for future acquisitions
  • What catalysts will move the stock price?


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FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 17 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide..

Research, News, & Advanced Market Data on FAT Brands

Forbes Global Media CEO Mike Federle & CFO Mike York

  • What model is the company pursuing?
  • WHow Forbes managed to succeed during a global pandemic
  • What are Forbes’ opportunities for growth?
  • The SPAC transaction with Magnum Opus
  • Opportunities as a public company


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Forbes champions success by celebrating those who have made it, and those who aspire to make it. Forbes convenes and curates the most influential leaders and entrepreneurs who are driving change, transforming business and making a significant impact on the world. The Forbes brand today reaches more than 150 million people worldwide through its trusted journalism, signature LIVE and Forbes Virtual events, custom marketing programs and 44 licensed local editions in 77 countries. Forbes Media’s brand extensions include real estate, education and financial services license agreements. Forbes recently announced plans to go public through a business combination with Magnum Opus (NYSE: OPA), a special purpose acquisition company (SPAC), which is expected to close in Q1 of 2022.

View an Exclusive SPAC Report on Forbes and Magnum Opus

The 2022 C-Suite Interview series is now available on major podcast platforms

Aurania Resources CEO, President, and Chairman Keith Barron

  • A summary of Aurania’s landholdings; Mineralization discovered to-date
  • What lead to the decision to narrow Aurania’s focus?
  • Immediate plans to explore core concessions
  • Potential joint ventures, and the upside for shareholders
  • How the hiring of Carolina Lasso Amaya helps Aurania gain access to more areas
  • Aurania’s financial position & expected milestones for 2022


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Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.
Research, News, & Advanced Market Data on Aurania

Beasley Media Group CEO Caroline Beasley

  • Why is now such an exciting time for Beasley?
  • Discussion on its renewed focus on Digital; How big is it expected to be?
  • Why the company has a favorable runway to invest for enhanced revenue and cash flow growth.
  • Sports betting is big, but it is expected to get much bigger; Why?
  • The outlook for midterm political advertising
  • Is there M&A in its future?


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Beasley Media Group owns and operates 62 stations (47 FM and 15 AM) in 15 large- and mid-size markets in the United States. Approximately 20 million consumers listen to the Company’s radio stations weekly over-the-air, online and on smartphones and tablets, and millions regularly engage with the Company’s brands and personalities through digital platforms such as Facebook, Twitter, text messaging, digital and web applications and email. The Overwatch League’s Houston Outlaws esports team is a wholly owned subsidiary. The Company also owns BeasleyXP, a national esports content hub, and AXLR-R8, a Rocket League Championship Series team, in its esports portfolio. For more information, please visit www.bbgi.com.
Research, News, & Advanced Market Data on Beasley

Baudax Bio President & CEO Gerri Henwood

  • An overview of Baudax Bio and their product profile
  • How are Anjeso commercial activities progressing? Has Covid shifted the strategy?
  • What proposed CDC opioid guidelines mean for Baudax
  • Long term opportunities for neuromuscular blocking agents
  • Does the recent stock split cure the Nasdaq difficiency?
  • What will get the stock moving in the right direction going forward?


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Baudax Bio is a pharmaceutical company focused on commercializing and developing innovative products for acute care settings. ANJESO is the first and only 24-hour, intravenous (IV) COX-2 preferential non-steroidal anti-inflammatory (NSAID) for the management of moderate to severe pain. In addition to ANJESO, Baudax Bio has a pipeline of other innovative pharmaceutical assets including two novel neuromuscular blocking agents (NMBs) and a proprietary chemical reversal agent specific to these NMBs. For more information, please visit www.baudaxbio.com.
Research, News, & Advanced Market Data on Baudax Bio

Bowlero Corp. President & CFO Brett Parker

  • What led to the company going public after a rich 25 year history
  • Competition, current market share, and the attractive growth outlook
  • What regions present the best opportunity for expansion?
  • The unique value-add that Bowlero brings to its bowling centers; what allows it to run at such high margins?
  • Leveraging PBA ownership to boost the marketing strategy
  • Recent stock performance; what will get the price moving in the right direction?


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Bowlero Corp. is the worldwide leader in bowling entertainment, media, and events. With more than 300 bowling centers across North America, Bowlero Corp. serves more than 26 million guests each year through a family of brands that includes Bowlero, Bowlmor Lanes, and AMF. In 2019, Bowlero Corp. acquired the Professional Bowlers Association, the major league of bowling, which boasts thousands of members and millions of fans across the globe. For more information on Bowlero Corp., please visit BowleroCorp.com.
Research, News, & Advanced Market Data on Bowlero Corp.

Digerati Technologies CEO Art Smith

  • How have inflation, supply chain, and labor shortage issues affected Digerati?
  • Highlights from recent three UCaaS case studies
  • The M&A strategy and outlook
  • Color on the recently closed SkyNet Telecom acquisition
  • Art’s view on Digerati’s stock performance and catalysts that will trigger growth
  • Is a stock uplisting near?


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Digerati Technologies, Inc. (OTCQB: DTGI) is a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its operating subsidiaries T3 Communications (T3com.com) and Nexogy (Nexogy.com), the Company is meeting the global needs of businesses seeking simple, flexible, reliable, and cost-effective communication and network solutions including cloud PBX, cloud telephony, cloud WAN, cloud call center, cloud mobile, and the delivery of digital oxygen on its broadband network. Digerati has developed a robust integration platform to fuel mergers and acquisitions in a highly fragmented market as it delivers business solutions on its carrier-grade network and Only in the Cloud™.
Research, News, & Advanced Market Data on Digerati

Transportation & Logistics Forum – a NobleCon Online Investor Event

Supply chain issues, COVID-related production delays, volatile fuel costs, and new regulations. Hear from c-suite executives how these issues have affected the transporation sector over the past few years. What have they learned, what adjustments have they made, and what does the future hold for these six companies?

Featuring corporate overviews and Q&A sessions with c-suite executives. Moderated by Noble Capital Markets Senior Research Analyst Poe Fratt


Watch The Presentations
ACCO Brands Chairman & CEO Boris Elisman

  • Addressing supply chain issues; effects so far, steps to remediate, and expectations going forward
  • Price increases to cover inflation-based cost increases. When they expect to see benefits
  • An update on the PowerA acquisition; growth expectations for this year – Outlook for future acquisitions
  • Covid effects on emerging markets; steps the company is taking to increase revenues
  • Achieving gross margin improvements against current headwinds the company is facing
  • Planned usage of expected free cash flow coming out of 2021


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ACCO Brands Corporation (NYSE: ACCO) is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include Artline®, AT-A-GLANCE®, Barrilito®, Derwent®, Esselte®, Five Star®, Foroni®, GBC®, Hilroy®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, Wilson Jones® and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.
Research, News, & Advanced Market Data on ACCO Brands

Newrange Gold CEO Robert Archer

  • History with the Argosy Gold Mine Project and details of the transaction
  • How the acquisition affects near and long-term plans and budget expectations
  • How has the trajectory for Pamlico changed with Robert Carrington shifting to an advisory role?
  • How should investors view the resource potential at Pamlico?
  • Near-term milestones and catalysts on the horizon


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Newrange is focused on district-scale exploration for precious metals in favorable jurisdictions including Nevada and Ontario. The Company’s Pamlico Project in Nevada contains a large-scale multi-phase polymetallic mineralizing system with multiple gold and copper targets spread over more than 5,700 hectares. In the prolific Red Lake District of northwestern Ontario, the past-producing high-grade Argosy Gold Mine is open to depth, while the adjacent North Birch Project offers additional blue-sky potential. Focused on developing shareholder value through exploration and development of key projects, the Company is committed to building sustainable value for all stakeholders. Further information can be found on our website at www.newrangegold.com.
Research, News, & Advanced Market Data on Newrange

Voyager Digital CEO Stephen Ehrlich

  • Plans to expand beyond the current 65 digital assets available on the platform; How assets are selected and how rewards are offered
  • What is driving growth in the crypto market?
  • How does crypto market volatility affect Voyager’s revenues?
  • Following FY2021 results, what is behind Voyager’s growth? What additional services are planned for the platform?
  • Thoughts on upcoming crypto regulation; how Voyager stays prepared
  • How Voyager plans to narrow the valuation delta


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Voyager Digital Ltd. (TSX: VOYG; OTCQX: VYGVF; FRA: UCD2) is a fast-growing, publicly traded cryptocurrency platform in the United States founded in 2018 to bring choice, transparency, and cost efficiency to the marketplace. Voyager offers a secure way to trade over 60 different crypto assets using its easy-to-use mobile application, and earn rewards up to 12 percent annually on more than 30 cryptocurrencies. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. To learn more about the company, please visit https://www.investvoyager.com.
Research, News, & Advanced Market Data on Voyager

Axcella Therapeutics President & CEO Bill Hinshaw

  • An introduction to Endogenous Metabolic Modulators & the Axcella pipeline
  • The discovery platform; how Axcella’s products are developed
  • Status of clinical trials for AXA-1665 for Overt Hepatic Encephalopathy
  • AXA1125 for the treatment of nonalcoholic steatohepatitis (NASH) and as a potential treatment for Long COVID
  • Key milestones for current and upcoming trials


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Axcella is a clinical-stage biotechnology company pioneering a new approach to treat complex diseases using endogenous metabolic modulator (EMM) compositions. The company’s product candidates are comprised of EMMs and derivatives that are engineered in distinct combinations and ratios to reset multiple biological pathways, improve cellular energetics, and restore homeostasis. Axcella’s pipeline includes lead therapeutic candidates in Phase 2 development for the reduction in risk of overt hepatic encephalopathy (OHE) recurrence, the treatment of Long COVID, and the treatment of non-alcoholic steatohepatitis (NASH). The company’s unique model allows for the evaluation of its EMM compositions through non-IND clinical studies or IND clinical trials. For more information, please visit www.axcellatx.com.
Research, News, & Advanced Market Data on Axcella

FenixOro Gold Corp CEO John Carlesso

  • The business and political climate in Colombia; What makes it such an attractive country to operate in?
  • How accessible is the property; What are the infrastructure needs?
  • Exploration and drilling results to date; Mineralization potential
  • When is a maiden resource estimate expected?
  • Liquidity and funding needs
  • Upcoming catalysts for the stock; Why is now a good time to invest?


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FenixOro Gold Corp is a Canadian company focused on acquiring and exploring gold projects with world class exploration potential in the most prolific gold producing regions of Colombia. FenixOro’s flagship property, the Abriaqui project, is located 15 km west of Continental Gold’s Buritica project in Antioquia State at the northern end of the Mid-Cauca gold belt, a geological trend which has seen multiple large gold discoveries in the past 10 years including Buritica and Anglo Gold’s Nuevo Chaquiro and La Colosa. As documented in “NI 43-101 Technical Report on the Abriaqui project Antioquia State, Colombia” (December 5, 2019), the geological characteristics of Abriaqui and Buritica are similar. The report also documents the high gold grade at Abriaqui with samples taken from 20 of the veins assaying greater than 20 g/t gold. Since the preparation of this report a Phase 1 drilling program has been completed at Abriaqui resulting in a significant discovery of a high grade, “Buritica style” gold deposit. A Phase 2 drilling program has recently commenced. FenixOro’s VP of Exploration, Stuart Moller, led the discovery team at Buritica for Continental Gold in 2007-2011. At the time of its latest public report, the Buritica Mine contains measured plus indicated resources of 5.32 million ounces of gold (16.02 Mt grading 10.32 g/t) plus a 6.02 million ounce inferred resource (21.87 Mt grading 8.56 g/t) for a total of 11.34 million ounces of gold resources. Buritica began formal production in November 2020 and has expected annual average production of 250,000 ounces at an all-in sustaining cost of approximately US$600 per ounce. Resources, cost and production data are taken from Continental Gold’s “NI 43-101 Buritica Mineral Resource 2019-01, Antioquia, Colombia, 18 March, 2019”). Continental Gold was recently the subject of a takeover by Zijin Mining in an all-cash transaction valued at C$1.4 billion.
Research, News, & Advanced Market Data on FenixOro

E.W. Scripps CEO Adam Symson & CFO Jason Combs

  • One of the largest players in the OTT and OTA markets, management explains how big it expects the markets to become
  • On the heels of a recent investment, management answers the question, will esports become a new division for the company?
  • Outlines a favorable Retransmission revenue growth cycle
  • Provides an update on capital allocation as free cash flow conversion hits 50% and debt levels are significantly reduced
  • With a 30% free cash flow yield, management provides their assessment of the stock and why it has been recently lackluster


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The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company focused on creating a better-informed world. As the nation’s fourth-largest local TV broadcaster, Scripps serves communities with quality, objective local journalism and operates a portfolio of 61 stations in 41 markets. The Scripps Networks reach nearly every American through the national news outlets Court TV and Newsy and popular entertainment brands ION, Bounce, Grit, Laff, Court TV Mystery, Defy TV and TrueReal. Scripps is the nation’s largest holder of broadcast spectrum. Scripps runs an award-winning investigative reporting newsroom in Washington, D.C., and is the longtime steward of the Scripps National Spelling Bee. Founded in 1878, Scripps has held for decades to the motto, “Give light and the people will find their own way.”
Research, News, & Advanced Market Data on Scripps

Salem Media Management Team

  • Among the most diversified in its peer set, management highlighted its “customer first” approach
  • Recent refinancing is a big deal, derisks its balance sheet and sets it on a path toward significant debt reduction
  • Management highlights some key growth drivers including Salem Now, Salem Surround and Salem Podcast Networks
  • Larry Elder’s return to the air. How his rise to the national stage had helped the company
  • Conversion data issues at Facebook. Has this leveled the playing field?


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Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape.
Research, News, & Advanced Market Data on Salem Media

Motorsport Games CEO, President, and CFO

  • The largest digital media company focused on the motorsport and automotive game industry, with a broad license portfolio in iconic racing franchises including NASCAR, Le Mans, IndyCar, and BTCC (British Touring Car Championship).
  • Insights on its upcoming launch of NASCAR 21: Ignition, including key release dates
  • A favorable revenue growth cadence as the company launches additional games over the next three years
  • Large cash position that appears sufficient through its investment spend in game development
  • Compelling stock valuation relative to recent sales in the motorsport game industry


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Motorsport Games, a Motorsport Network company, combines innovative and engaging video games with exciting esports competitions and content for racing fans and gamers around the globe. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”). Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League among others. For more information about Motorsport Games visit: www.motorsportgames.com.
Research, News, & Advanced Market Data on Motorsport Games

Cumulus Media President and CEO Mary Berner

  • See it here first, a new investor presentation that rebrands the company
  • A strategic shift from a one-dimensional Radio-first model to a multi-dimensional Audio-first media company, which positions it for growth
  • Highlighting its recent Audacy content distribution partnership
  • 2022 EBITDA guidance of $175 million to $200 million, with strong Digital revenue growth and a post-pandemic radio rebound
  • On track to delever debt to below 4.0 times EBITDA in 2022


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CUMULUS MEDIA (NASDAQ: CMLS) is a leading media, advertising, and marketing services company delivering premium content to over a quarter billion people every month—wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 413 owned-and-operated radio stations across 86 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, CNN, the AP, the Academy of Country Music Awards, and many other world-class partners across nearly 7,300 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through the CUMULUS Podcast Network, its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with personal connections, local impact and national reach through broadcast and on-demand digital, mobile, social, and voice-activated platforms, as well as integrated digital marketing services, powerful influencers, full-service audio solutions, industry-leading research and insights, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees. For more information visit www.cumulusmedia.com.
Research, News, & Advanced Market Data on Cumulus Media

Engine Media Executive Chairman Tom Rogers & CEO Lou Schwartz

  • An outsized, experienced management team for a developmental company.
  • Multiple revenue streams, each with significant growth potential to deliver shareholder value. Notable growth potential in social media influencer marketing, esports, and gaming.
  • WinView – A patented social gaming experience, covering key aspects of mobile sports betting – part of a large patent portfolio
  • Swing toward cash flow positive is within a reasonable investment time horizon.
  • Compelling stock valuation relative to peers in the industry.


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Engine Media Holdings Inc. is traded publicly under the ticker symbol (NASDAQ: GAME) (TSX-V: GAME). The organization is focused on developing premium consumer experiences and unparalleled technology and content solutions for partners in the esports, news and gaming industry. The company’s subsidiaries include Stream Hatchet; the global leader in gaming video distribution analytics; Eden Games , a premium video game developer and publisher with numerous console and mobile gaming franchises; WinView Games, an industry innovator in audience second screen play-along gaming during live events; UMG, an end-to-end competitive esports platform enabling the professional and amateur esports community with tournaments, matches and award nominating content; and Frankly Media, a digital publishing platform empowering broadcasters to create, distribute and monetize content across all channels. Engine Media generates revenue through a combination of direct-to-consumer and subscription fees; streaming technology and data SaaS-based offerings; programmatic advertising and sponsorships. To date, the combined companies’ clients have included more than 1,200 television, print and radio brands, dozens of gaming and technology companies, and have connectivity into hundreds of millions of homes around the world through their content, distribution and technology services.
Research, News, & Advanced Market Data on Engine Media

Digerati Technologies CEO Arthur Smith

  • Seasoned management team with industry experience and proven ability to create shareholder value.
  • Compelling roll-up strategy in an attractive growth oriented market, with businesses left unserved by larger industry and financial players.
  • High recurring revenue and industry-low customer churn, a function of its high local touch with its customers.
  • Favorable fundamental growth outlook with operations based in fast growing population States of Florida and Texas.


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Digerati Technologies, Inc. (OTCQB: DTGI) is a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its operating subsidiaries T3 Communications (T3com.com) and Nexogy (Nexogy.com), the Company is meeting the global needs of businesses seeking simple, flexible, reliable, and cost-effective communication and network solutions including cloud PBX, cloud telephony, cloud WAN, cloud call center, cloud mobile, and the delivery of digital oxygen on its broadband network. Digerati has developed a robust integration platform to fuel mergers and acquisitions in a highly fragmented market as it delivers business solutions on its carrier-grade network and Only in the Cloud™.
Research, News, & Advanced Market Data on Digerati Technologies

Lineage Cell Therapeutics CEO Brian Culley

  • Allogeneic approach to cell therapy – an off-the-shelf solution
  • Scalability and control advantages to Lineage’s manufacturing process
  • OpRegen – restoring retinal tissue with a single injection of RPE cells – advantage over current treatment methods
  • OPC1 – Spinal cord treatment program – using cell therapy to treat neurological conditions
  • VAC2 – A cancer vaccine candidate produced from their pluripotent cell tech, comprised of mature dendritic cells.
  • Upcoming milestones & financial position for 2021


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Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs. Lineage’s programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities. With this platform Lineage develops and manufactures specialized, terminally differentiated human cells from its pluripotent and progenitor cell starting materials. These differentiated cells are developed to either replace or support cells that are dysfunctional or absent due to degenerative disease or traumatic injury or administered as a means of helping the body mount an effective immune response to cancer. Lineage’s clinical programs are in markets with billion dollar opportunities and include three allogeneic (“off-the-shelf”) product candidates: (i) OpRegen®, a retinal pigment epithelium transplant therapy in Phase 1/2a development for the treatment of dry age-related macular degeneration, a leading cause of blindness in the developed world; (ii) OPC1, an oligodendrocyte progenitor cell therapy in Phase 1/2a development for the treatment of subacute spinal cord injuries; and (iii) VAC2, an allogeneic dendritic cell therapy produced from Lineage’s VAC technology platform for immuno-oncology and infectious disease, currently in Phase 1 clinical development for the treatment of non-small cell lung cancer. For more information, please visit www.lineagecell.com or follow the Company on Twitter @LineageCell.
Research, News, & Advanced Market Data on Lineage Cell Therapeutics

Townsquare Media CEO Bill Wilson

  • The unique capabilities of this management team to build its Digital businesses
  • Behind the scenes of its “Digital First” strategy
  • Update on a new west coast office; future expansion plans
  • The power of radio and its digital transition
  • M&A targets; Digital, Radio, and TV?
  • Rebounding entertainment business
  • Revenue target updates


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Townsquare is a community-focused digital media, digital marketing solutions and radio company focused outside the Top 50 markets in the U.S. Our assets include Townsquare Interactive, a digital marketing services subscription business providing web sites, search engine optimization, social platforms and online reputation management for approximately 23,600 SMBs; Townsquare IGNITE, a proprietary digital programmatic advertising technology with an in-house demand and data management platform; and Townsquare Media, our portfolio of 322 local terrestrial radio stations in 67 cities with corresponding local news and entertainment websites and apps including legendary brands such as WYRK.com, WJON.com, and NJ101.5.com along with a network of national music brands including XXLmag.com, TasteofCountry.com, UltimateClassicRock.com and Loudwire.com. For more information, please visit www.townsquaremedia.com, www.townsquareinteractive.com, and www.townsquareignite.com.
Research, News, & Advanced Market Data on Townsquare

CoreCivic President & CEO Damon Hininger

  • How Biden Admin Executive Orders are projected to affect CoreCivic’s operations – How the company continues to be an effective solution for the federal government
  • Increasing border-crossing activity and ICE detention rates
  • Where does the company stand on the Alabama prison contract funding?
  • Options to modernize outdated prison facilities
  • Update on the debt reduction plan & access to capital
  • Corecivic’s Environmental, Social, and Governance report


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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
Research, News, & Advanced Market Data on CoreCivic

InPlay Oil President & CEO Doug Bartole

  • Returning to pre-covid production levels
  • Recent successful drills; anticipation of increased production levels
  • Improvements on drilling and operational costs
  • Effects of ESG pressures; reducing emissions
  • InPlay’s debt and cash flow strategy; any other M&A activity on the horizon?
  • Oil prices are high; will they stay there?


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InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.
Research, News, & Advanced Market Data on InPlay Oil

Sierra Metals CEO Luis Marchese

  • Near-term & long-term expansion plans – when are preliminary feasibility studies expected for each mine?
  • Dealing with Covid impacts in Peru and Mexico
  • How Sierra improves efficiency at their mines – How each mine compares to the industry cost curve
  • Current revenue mix by metal & how it is expected to changev
  • Increasing reserves and resources to support the company’s growing production profile
  • Sierra’s financial strength and liquidity


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Sierra Metals is a diversified Canadian mining company focused on the production and development of precious and base metals from its polymetallic Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. Sierra Metals has recently had several new key discoveries and still has many more exciting brownfield exploration opportunities at all three Mines in Peru and Mexico that are within close proximity to the existing mines. Additionally, the Company also has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.
Research, News, & Advanced Market Data on Sierra Metals

TAAL Distributed Information Technologies President Chris Naprawa

  • A blockchain infrastructure play – transaction processing for enterprise applications
  • BitcoinSV – What makes it the best option for transaction processing?
  • Potential addressable market & key competitors
  • The delivery of value-added services for enterprises – new tools to help businesses develop on blockchain
  • Outlook for TAAL’s crypto mining efforts
  • Cash position – Will additional capital raises be necessary?


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TAAL Distributed Information Technologies Inc. delivers value-added blockchain services, providing professional-grade, highly scalable blockchain infrastructure and transactional platforms to support businesses building solutions and applications upon the BitcoinSV platform, and developing, operating, and managing distributed computing systems for enterprise users.
Research, News, & Advanced Market Data on TAAL Distributed Information Technologies

Cocrystal Pharma Interim Co-CEOs Sam Lee, President & James Martin, CFO

  • Developing acute and pandemic antiviral treatments for Coronavirus, Norovirus, Influenza, and Hepatitis C
  • Proprietary structure-based drug discovery strategy & how it differs from traditional approaches to drug discovery
  • How they are able to develop product candidates for multiple forms of delivery
  • Influenza A/B collaboration with Merck – progress and market potential
  • Overview of Coronavirus program – COVID-19 and beyond
  • Milestones to watch for in the next 12-18 months


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Cocrystal Pharma, Inc. is a clinical-stage biotechnology company discovering and developing novel antiviral therapeutics that target the replication process of coronaviruses (including SARS-CoV-2), influenza viruses, hepatitis C viruses and noroviruses. Cocrystal employs unique structure-based technologies and Nobel Prize-winning expertise to create first- and best-in-class antiviral drugs. For further information about Cocrystal, please visit www.cocrystalpharma.com.
Research, News, & Advanced Market Data on Cocrystal Pharma

Indonesia Energy President Frank Ingriselli

  • Update on current Kruh drilling progress; expected well count over next 3 years and upcoming milestones
  • Drilling expectations for gas-prone Citarum block
  • Addressing recent auditor comments; probability of success in current wells
  • Stock price volatility & current ownership structure
  • Does Indonesia provide a competitive advantage?


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Indonesia Energy Corporation Limited (NYSE American:INDO) is a publicly traded energy company engaged in the acquisition and development of strategic, high growth energy projects in Indonesia. IEC’s principal assets are its Kruh Block (63,000 acres) located onshore on the Island of Sumatra in Indonesia and its Citarum Block (1,000,000 acres) located onshore on the Island of Java in Indonesia. IEC is headquartered in Jakarta, Indonesia and has a representative office in Danville, California.
Research, News, & Advanced Market Data on Indonesia Energy

Avivagen CEO Kym Anthony

  • Overview of Avivagen’s discovery that oxidized ?-carotene supports immune function and enhances livestock feed intake
  • How extensive is the efficacy research?
  • What alternatives exist? What differentiates OxC-beta?
  • Addressable market opportunity; recent livestock contracts
  • Progress on expanding geographical reach
  • Avivagen’s recurring increasing revenue model


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Avivagen is a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications that, by safely supporting immune function, promote general health and performance. It is a public corporation traded on the TSX Venture Exchange under the symbol VIV and is headquartered in Ottawa, Canada, based in partnership facilities of the National Research Council of Canada. For more information, visit www.avivagen.com.
Research, News, & Advanced Market Data on Avivagen

Salem Media Group EVP & CFO Evan Masyr

  • How was the pandemic different from other recession cycles, and how did Salem handle it?
  • How Salem’s block programming partners provided stability and liquidity
  • As one of the leading diversified broadcasters, management discussed its ongoing interests outside of radio
  • Strong growth outlook for Salem Surround and Salem Now
  • Steps to significantly lower debt levels through real estate sales
  • The value of its Digital Media business and the disconnect with its stock price


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Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape.
Research, News, & Advanced Market Data on Salem Media Group

Helius Medical Technologies Interim CEO Dane Andreeff

  • The Portable Neuromodulation Stimulator (PoNS Device) combined with physical therapy to reduce symptoms of neurological disease or trauma; treatment schedule & clinical evidence for efficacy
  • Total addressable market for MS patients in the US and Canada
  • What the FDA Breakthrough Designation means for Helius
  • Plans for expansion in Canada & commercialization in the U.S.
  • Competitive advantages & a broad patent portfolio


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Helius Medical Technologies is a neurotech company focused on neurological wellness. The Company’s purpose is to develop, license and acquire unique and non-invasive platform technologies that amplify the brain’s ability to heal itself. The Company’s first commercial product is the Portable Neuromodulation Stimulator (PoNS™). For more information, visit www.heliusmedical.com.
Research, News, & Advanced Market Data on Helius Medical Technologies

Great Bear Resources President & CEO Chris Taylor

  • An overview of the Dixie Project – a large, high-grade property in a tier 1 jurisdiction in Canada
  • Drilling program results to-date
  • When a maiden resource estimate & preliminary economic assessment are expected
  • Cash position and funding needs through 2022
  • Plans for properties outside of the Dixie Project
  • Could Great Bear advance Dixie to production on their own?


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Great Bear Resources Ltd. is a well-financed gold exploration company managed by a team with a track record of success in mineral exploration. Great Bear is focused in the prolific Red Lake gold district in northwest Ontario, where the company controls over 330 km2 of highly prospective tenure across 5 projects: the flagship Dixie Project (100% owned), the Pakwash Property (earning a 100% interest), the Dedee Property (earning a 100% interest), the Sobel Property (earning a 100% interest), and the Red Lake North Property (earning a 100% interest) all of which are accessible year-round through existing roads.
Research, News, & Advanced Market Data on Great Bear Resources

Genprex President & CEO Rodney Varner

  • REQORSA – immunogene therapy for lung cancer patients – how this therapy can supplement Keytruda and Tagrisso
  • Oncology program patient profile and population; Clinical trial stages, enrollment, and data milestones
  • Diabetes program overview and current status
  • Cash position and important upcoming milestones including clinical trials, datapoints, and research programs


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Genprex, Inc. is a clinical-stage gene therapy company focused on developing life-changing therapies for patients with cancer and diabetes. Genprex’s technologies are designed to administer disease-fighting genes to provide new therapies for large patient populations with cancer and diabetes who currently have limited treatment options. Genprex works with world-class institutions and collaborators to develop drug candidates to further its pipeline of gene therapies in order to provide novel treatment approaches. The Company’s lead product candidate, REQORSA™ (quaratusugene ozeplasmid), is being evaluated as a treatment for non-small cell lung cancer (NSCLC). REQORSA has a multimodal mechanism of action that has been shown to interrupt cell signaling pathways that cause replication and proliferation of cancer cells; re-establish pathways for apoptosis, or programmed cell death, in cancer cells; and modulate the immune response against cancer cells. REQORSA has also been shown to block mechanisms that create drug resistance. In January 2020, the U.S. Food and Drug Administration granted Fast Track Designation for REQORSA for NSCLC in combination therapy with AstraZeneca’s Tagrisso® (osimertinib) for patients with EFGR mutations whose tumors progressed after treatment with Tagrisso alone.
Research, News, & Advanced Market Data on Genprex

Stem Holdings / Driven By Stem CEO Adam Berk

  • Why the delivery model makes sense in the cannabis industry and why it will continue to thrive post-Covid
  • Expected launch dates of delivery services in various markets
  • Dispensary footprint in Oregon – expansion plans
  • Michigan market potential and launch timing
  • Future targets for expansion as laws continue to pass
  • Benefits of the proposed SAFE Banking Act


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Stem is a leading omnichannel, vertically-integrated cannabis branded products and technology company with state-of-the-art cultivation, processing, extraction, retail, distribution, and delivery-as-a-service (DaaS) operations throughout the United States. Stem’s family of award-winning brands includes TJ’s Gardens™, TravisxJames™, and Yerba Buena™ flower and extracts; Cannavore™ edible confections; Doseology™, a CBD mass-market brand launching in 2021; as well as DaaS brands Budee™ and Ganjarunner™ through the acquisition of Driven Deliveries. Budee™ and Ganjarunner™ e-commerce platforms provide direct-to consumer proprietary logistics and an omnichannel UX (user experience)/CX (customer experience).
Research, News, & Advanced Market Data on Stem

PDS Biotechnology CEO Frank Bedu-Addo, CMO Lauren Wood & CFO Seth Van Voorhees

In this interview, Noble Senior Analyst Robert LeBoyer and the distinguished team from PDS discuss the PDS Biotech pipeline, including an in-depth overview of the Versamune platform, a T-cell activating platform designed to address key limitations of current immunotherapies, as well as the current status of 3 ongoing phase 2 trails. The PDS team also provides an update on their SARS-Cov-2 program and partnership with Farmacore.


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PDS Biotech is a clinical-stage immunotherapy company with a growing pipeline of cancer immunotherapies and infectious disease vaccines based on the Company’s proprietary Versamune® T-cell activating technology platform. The company’s lead investigational cancer immunotherapy product PDS0101 is currently in Phase 2 clinical studies in multiple indications. Versamune® effectively delivers disease-specific antigens for in vivo uptake and processing, while also activating the critical type 1 interferon immunological pathway, resulting in production of potent disease-specific killer T-cells as well as neutralizing antibodies. PDS Biotech has developed multiple therapies, based on combinations of Versamune® and disease-specific antigens, designed to train the immune system to better recognize diseased cells and effectively attack and destroy them.
Research, News, & Advanced Market Data on PDS Biotechnology

Chakana Copper CEO Chakana Copper

  • What makes Peru a leading mining jurisdiction
  • Copper and gold discoveries made to date at the Soledad project
  • Conclusions from drilling programs at Paloma and Huancarama
  • Funding status and outlook through 2021
  • Benefits of the Gold Fields partnership
  • What’s the M&A outlook in the copper space?


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Chakana Copper Corp is a Canadian-based minerals exploration company that is currently advancing the Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive communities. The Soledad Project consists of high-grade gold-copper-silver mineralization hosted in tourmaline breccia pipes. A total of 45,061 metres of drilling has been completed to date, testing ten (10) of twenty-three (23) confirmed breccia pipes. The exploration team has identified 110 targets in total on the project, confirming that Soledad is a large, well-endowed mineral system with strong exploration upside. Chakana’s investors are uniquely positioned as the Soledad Project provides exposure to several metals including copper, gold, and silver.
Research, News, & Advanced Market Data on Chakana Copper

Bassett Furniture CEO Rob Spilman

  • What lessons were learned from the pandemic? How is Bassett dealing with the current industry climate?
  • Details & timeline on the new manufacturing plant
  • Capturing the shift towards online shopping
  • Overcoming the disruption in import trade
  • The Lane Venture acquisition & Bassett’s outdoor furniture strategy
  • How long does the current environment last? What are the biggest long-term challenges going forward?


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Bassett Furniture Industries, Inc. (NASDAQ:BSET), is a leading manufacturer and marketer of high quality home furnishings. With 97 company- and licensee-owned stores at the time of this release, Bassett has leveraged its strong brand name in furniture into a network of corporate and licensed stores that focus on providing consumers with a friendly environment for buying furniture and accessories. Bassett’s retail strategy includes stylish, custom-built furniture that features the latest on-trend furniture styles, free in-home design visits, and coordinated decorating accessories. Bassett also has a traditional wholesale business with more than 700 accounts on the open market, across the United States and internationally and a logistics business specializing in home furnishings.
Research, News, & Advanced Market Data on Bassett Furniture

Esports Entertainment Group CEO Grant Johnson

  • How their vertical integration strategy differentiates the company
  • Funding and closing the Helix acquisition
  • The regulatory outlook in New Jersey and other states
  • Organically growing relationships with professional sports teams
  • M&A strategy — to build it or to buy it?
  • What catalysts will move the stock price?


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Esports Entertainment Group is a full stack esports and online gambling company fueled by the growth of video-gaming and the ascendance of esports with new generations. Our mission is to help connect the world at large with the future of sports entertainment in unique and enriching ways that bring fans and gamers together. Esports Entertainment Group and its affiliates are well-poised to help fans and players to stay connected and involved with their favorite esports. From traditional sports partnerships with professional NFL/NHL/NBA/FIFA teams, community-focused tournaments in a wide range of esports, and boots-on-the-ground LAN cafes, EEG has influence over the full-spectrum of esports and gaming at all levels. The Company maintains offices in New Jersey, the UK and Malta.
Research, News, & Advanced Market Data on Esports Entertainment Group

Golden Predator Mining CEO Janet Lee Sheriff and Viva Gold CEO James Hesketh

Noble Capital Markets Senior Research Analyst Mark Reichman sits down with Golden Predator Mining (NTGSF, GPY) CEO Janet Lee Sheriff & Viva Gold (VAUCF, VAU) CEO James Hesketh for this exclusive interview to discuss the proposed merger of the two companies, which the shareholders of Viva Gold are scheduled to vote on May 3rd.


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Golden Predator is advancing the past-producing Brewery Creek Mine towards a timely resumption of mining activities in Canada’s Yukon. The project has established resources grading over 1.0 g/t Gold and both a technical report and Bankable Feasibility Study underway to define the economics of a restart of heap leach operations at the Brewery Creek Mine. The 180 km2 brownfield property is located 55 km by road from Dawson City, Yukon and operates under a Socio-Economic Accord with the Tr’ondëk Hwëch’in First Nation. The Company also holds the Marg Project, with a 43-101 compliant resource, the Gold Dome Project and Grew Creek Project.
Research, News, & Advanced Market Data on Golden Predator

Energy Fuels CEO Mark Chalmers

  • Why the positive outlook for uranium prices?
  • Significance of a potential national uranium reserve
  • Supply & demand outlook – replacing lost production sites
  • Current projects – production capabilities and operational timelines
  • Vanadium – reserves, market potential, and strategy
  • Rare Earths – recent agreements & future potential


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Energy Fuels is a leading U.S.-based uranium mining company, supplying U3O8 to major nuclear utilities. The Company also produces vanadium from certain of its projects, as market conditions warrant, and is in the process of ramping-up to commercial production of REE carbonate in 2021. Its corporate offices are in Lakewood, Colorado near Denver, and all of its assets and employees are in the United States. Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery (“ISR”) Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today, has a licensed capacity of over 8 million pounds of U3O8 per year, and has the ability to produce vanadium when market conditions warrant, as well as REE carbonate and uranium from Monazite. The Nichols Ranch ISR Project is currently on standby and has a licensed capacity of 2 million pounds of U3O8 per year. The Alta Mesa ISR Project is also currently on standby. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the U.S. and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels’ common shares is the NYSE American under the trading symbol “UUUU,” and the Company’s common shares are also listed on the Toronto Stock Exchange under the trading symbol “EFR.” Energy Fuels’ website is www.energyfuels.com.
Research, News, & Advanced Market Data on Energy Fuels

Schwazze CEO Justin Dye

  • Structural overview – a “seed-to-sale” vertically integrated cannabis company
  • What makes Colorado such an attractive market? Outlook for expansion into other states
  • The Star Buds acquisition – financing and potential EBITDA impact
  • Does their current cash position allow for continued organic growth? How does Schwazze add value to its acquisitions?
  • What is management doing to bridge the perceived stock price discount?


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Energy Fuels is a leading U.S.-based uranium mining company, supplying U3O8 to major nuclear utilities. The Company also produces vanadium from certain of its projects, as market conditions warrant, and is in the process of ramping-up to commercial production of REE carbonate in 2021. Its corporate offices are in Lakewood, Colorado near Denver, and all of its assets and employees are in the United States. Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery (“ISR”) Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today, has a licensed capacity of over 8 million pounds of U3O8 per year, and has the ability to produce vanadium when market conditions warrant, as well as REE carbonate and uranium from Monazite. The Nichols Ranch ISR Project is currently on standby and has a licensed capacity of 2 million pounds of U3O8 per year. The Alta Mesa ISR Project is also currently on standby. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the U.S. and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels’ common shares is the NYSE American under the trading symbol “UUUU,” and the Company’s common shares are also listed on the Toronto Stock Exchange under the trading symbol “EFR.” Energy Fuels’ website is www.energyfuels.com.
Research, News, & Advanced Market Data on Energy Fuels

Ayala Pharmaceuticals CEO Roni Mamluk, PhD

AL101 & AL102 – targeted therapy candidates for cancer patients for a variety of tumors:
   – Adenoid Cystic Carcinoma (ACC)
   – Triple Negative Breast Cancer (TNBC)
   – T-cell Acute Lymphoblastic Leukemia (T-ALL)
   – Desmoid Tumors
   – Multiple Myeloma (MM) (Novartis collaboration)
Roni discusses current patient profiles and available treatment options, treatment potential with AL101 & AL102, clinical trial statuses for all targets, when study data is expected, and the company’s financial position and cash balance.


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Ayala Pharmaceuticals, Inc. is a clinical-stage oncology company focused on developing and commercializing small molecule therapeutics for patients suffering from rare and aggressive cancers, primarily in genetically defined patient populations. Ayala’s approach is focused on predicating, identifying and addressing tumorigenic drivers of cancer through a combination of its bioinformatics platform and next-generation sequencing to deliver targeted therapies to underserved patient populations. The company has two product candidates under development, AL101 and AL102, targeting the aberrant activation of the Notch pathway with gamma secretase inhibitors to treat a variety of tumors including Adenoid Cystic Carcinoma, Triple Negative Breast Cancer (TNBC), T-cell Acute Lymphoblastic Leukemia (T-ALL), Desmoid Tumors and Multiple Myeloma (MM) (in collaboration with Novartis). Ayala’s lead product candidate, AL101, has received Fast Track Designation and Orphan Drug Designation from the U.S. FDA and is currently in a Phase 2 clinical trial for patients with ACC (ACCURACY) bearing Notch activating mutations and in a Phase 2 clinical trial for patients with TNBC (TENACITY) bearing Notch activating mutations and other gene rearrangements. AL102 is currently being advanced to a Phase 2/3 clinical trials for patients with desmoid tumors (RINGSIDE). For more information, visit www.ayalapharma.com.
Research, News, & Advanced Market Data on Ayala Pharmaceuticals

enCore Energy (ENCUF)(EU.V) CEO Paul Goranson & Exec. Chairman William Sheriff

  • Outlook for uranium pricing; how enCore’s production capabilities position them well for the next big move
  • Supply and demand outlook for uranium; value of building a strategic reserve
  • Steps they’ve taken to restart the processing plants acquired in 2020
  • Long term plans for existing assets in New Mexico; addressing environmental & community standards in restarting activities
  • Current cash position; plans to finance future growth


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enCore Energy Corp. is a U.S. domestic uranium developer focused on becoming a leading in-situ recovery (ISR) uranium producer. The Company is led by a team of industry experts with extensive knowledge and experience in the development and operations of in situ recovery uranium operations. enCore Energy’s opportunities are created from the Company’s transformational acquisition of its two South Texas production facilities, the changing global uranium supply/demand outlook and opportunities for industry consolidation. These short-term opportunities are augmented by our strong long term commitment to working with local indigenous communities in New Mexico where the company holds significant uranium resources
Research, News, & Advanced Market Data on enCore Energy

Palladium One Mining (NKORF)(PDM.V) CEO Derrick Weyrauch

  • Pricing outlook for palladium, platinum, and nickel
  • LK Project – 2020 discovery; Phase 2 program anticipated results
  • The role of geophysics in the exploration program
  • Kaukua South – when to expect a resource estimate
  • Canadian projects – Drilling & survey updates on Tyko
  • Cash position – Will recent financing carry the company into 2022?


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Palladium One Mining Inc. is an exploration company targeting district scale, platinum-group-element (PGE)-copper nickel deposits in Finland and Canada. Its flagship project is the Läntinen Koillismaa or LK Project, a palladium dominant platinum group element-copper-nickel project in north-central Finland, ranked by the Fraser Institute as one of the world’s top countries for mineral exploration and development. Exploration at LK is focused on targeting disseminated sulfides along 38 kilometers of favorable basal contact and building on an established NI 43-101 open pit resource.
Research, News, & Advanced Market Data on Palladium One

Comstock Mining (LODE) CEO Corrado De Gasperis

  • The evolution of Comstock’s business model, including the recent investment in LiNiCo
  • Lithium recycling strategy over the next 12/24/36 months; permits, agreements, facilities, and cathode output expectations; products and by-products of the process
  • Mercury clean-up pilots; recent launch in the Philippines
  • 2021 exploration and development plans; when is the next mineral resource estimate expected?
  • Evolution of the shareholder base; solidifying Comstock’s place in the ESG segment


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Comstock Mining Inc. is an emerging leader in climate-smart, sustainable mineral development and production of environment-enhancing, increasingly scarce strategic and precious metals. The Company is focused on conservation-based, high-value, cash-generating valorization of mineral and metals essential to meeting the rapidly increasing demand for clean energy technologies. The Company has extensive, contiguous property in the historic, world-class Comstock and Silver City mining districts (collectively, the “Comstock District”) with fully permitted, metallurgical labs and an operational, mineral processing and beneficiation platform that includes a growing portfolio of mercury remediation, gold, silver, lithium, nickel, and cobalt processing capabilities.
Research, News, & Advanced Market Data on Comstock Mining

Capstone Turbine (CPST) CEO Darren Jamison

  • Micro-turbines: an economically competitive green energy source with flexible application
  • Customer base; largest current clients, pandemic impacts on growth, and the post-covid strategy
  • The future of hydrogen and its use as a blending fuel
  • Recent Texas blackouts and the impact of natural disasters
  • Service business growth, reoccurring revenues, and their current cash position


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Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) is the world’s leading producer of highly efficient, low-emission, resilient microturbine energy systems. Capstone microturbines serve multiple vertical markets worldwide, including natural resources, energy efficiency, renewable energy, critical power supply, transportation and microgrids. Capstone offers a comprehensive product lineup via our direct sales team, as well as our global distribution network. Capstone provides scalable solutions from 30 kWs to 10 MWs that operate on a variety of fuels and are the ideal solution for today’s multi-technology distributed power generation projects.
Research, News, & Advanced Market Data on Capstone Turbine

Allegiant Gold (AUXXF) CEO Peter Gianulis

  • The flagship Eastside project; near-term goals, status of expanded drilling permits, immediate gold-ounce goals, and the focus for 2022
  • Allegiant’s options portfolio and the value-add for shareholders
  • The current M&A environment for junior exploration companies and the importance of jurisdiction
  • What differentiates Allegiant? Why is now the time to invest?


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Allegiant owns 100% of 10 highly-prospective gold projects in the United States, 7 of which are located in the mining-friendly jurisdiction of Nevada. Four of Allegiant’s projects are farmed-out, providing for cost reductions and cash-flow. Allegiant’s flagship, district-scale Eastside project hosts a large and expanding gold resource and is located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and sulphide gold mineralization at Eastside is amenable to heap leaching.
Research, News, & Advanced Market Data on Allegiant Gold

Kelly Services (KELYA) – Peter Quigley, CEO

  • What they have done to transform the organization and accelerate growth
  • What recent acquisitions in education and telecom have brought to Kelly
  • Rating progress on revenue growth and gross margin goals
  • Covid pandemic impacts and response
  • Current state of client and talent demand – recent contract wins
  • What’s next in the evolution of “work”?


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Kelly Services, Inc. connects talented people to companies in need of their skills in areas including Science, Engineering, Education, Office, Contact Center, Light Industrial, and more. The company is always thinking about what’s next in the evolving world of work, and helps people ditch the script on old ways of thinking and embrace the value of all workstyles in the workplace. Kelly directly employ nearly 440,000 people around the world, and connect thousands more with work through its global network of talent suppliers and partners in its outsourcing and consulting practice. Revenue in 2019 was $5.4 billion. Visit kellyservices.com to learn what’s next.
Learn more about Kelly

Pangaea Logistics (PANL) – Ed Coll, CEO & Mads Petersen, Managing Director

  • Current state of the dry bulk market and a look into next year
  • Tempering market volatility and generating outperformance
  • Ways that the cargo-centric focus adds value
  • Catalysts for renewing the dry bulk fleet
  • Does the Ice-class fleet represent a durable competitive advantage?
  • Why aren’t Capes part of the corporate strategy?


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Pangaea Logistics Solutions Ltd and its subsidiaries provide seaborne drybulk transportation services. It transports drybulk cargos including grains, coal, iron, ore, pig, iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The firm’s services include cargo loading, cargo discharge, vessel chartering, voyage planning and technical vessel management. The company derives all of its revenues from contracts of affreightment, voyage charters and time charters. Its strategy depends on focusing on increasing strategic contracts of affreightment, expanding capacity and flexibility by increasing its owned fleet and increasing backhaul focus and fleet efficiency.
Learn more about Pangaea Logistics Solutions

Palladium One Mining (NKORF) – Derrick Weyrauch, CEO

  • What is driving the strength in palladium prices?
  • What makes Finland unique as a source of palladium?
  • LK Project – Phase 1 results/ Phase 2 goals
  • When they expect to update mineral resource estimate
  • Financial strength and liquidity overview
  • Why is now a good time to invest?


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Palladium One Mining Inc. is an exploration company targeting district scale, platinum-group-element (PGE)-copper-nickel deposits in Finland and Canada. Its flagship project is the Läntinen Koillismaa or LK Project, a palladium-dominant platinum group element-copper-nickel project in north-central Finland, ranked by the Fraser Institute as one of the world’s top countries for mineral exploration and development. Exploration at LK is focused on targeting disseminated sulfides along 38 kilometers of favorable basal contact and building on an established NI 43-101 open pit resource.
Learn more about Palladium One Mining

Genco Shipping & Trading (GNK) – John Wobensmith, CEO

  • Macro outlook for industry recovery – Managing through the volatility
  • Regulatory outlook and possible changes
  • Genco’s fleet renewal program strategy
  • Managing crew changes amidst Covid pandemic
  • Scrubbers – Benefits achieved for Capes to date
  • Greatest challenges & opportunitues going forward


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Genco Shipping & Trading Limited transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes. As of November 18, 2020, Genco Shipping & Trading Limited’s fleet consists of 17 Capesize, six Ultramax, 18 Supramax and seven Handysize vessels with an aggregate capacity of approximately 4,627,000 dwt and an average age of 10.3 years.
Learn more about Genco Shipping & Trading

Kratos Defense & Security Solutions (KTOS) – Eric DeMarco, CEO

  • Unmanned systems – Opportunities, market size, and competitive advantages
  • Space – Tracking, telemetry, & control systems
  • Effects of current Continuing Resolution Act
  • Impact of ongoing recapitalization of strategic weapons systems
  • Key factors driving pipeline and backlog growth
  • M&A strategy going forward


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Kratos Defense & Security Solutions, Inc. provides engineering, information technology (IT) services, and warfighter solutions primarily in the United States. It operates in two segments, Kratos Government Solutions (KGS) and Public Safety and Security (PSS). The KGS segment provides engineering, IT, and weapons systems to federal, state, and local government agencies, primarily U.S. Department of Defense. It provides weapon systems sustainment, lifecycle support, and extension; command, control, communications, computing, intelligence, surveillance, and reconnaissance; military range operations and technical services; missile, rocket, and weapons systems test and evaluation; mission launch; public safety and security; modeling and simulation, unmanned aerial vehicle products and technology, and advanced network engineering and information technology; and public safety, security, and surveillance systems integration services. This segment also provides public safety, security, and surveillance systems products and services to the homeland security market with products and services focused at supporting first responders. The PSS segment provides system design, deployment, integration, monitoring, and support services for public safety, security, and surveillance networks for state and local governments, and commercial customers. This segment provides services that combine the systems and offer integrated solutions on an Ethernet-based platform. It also offers solutions that combine voice, data, electronic security, and building automation systems with fixed or wireless connectivity solutions. This segment�s target markets include retail, healthcare, education, municipal government, correctional, and other public facilities. The company was formerly known as Wireless Facilities, Inc. and changed its name to Kratos Defense & Security Solutions, Inc. in 2007. Kratos Defense & Security Solutions, Inc. was founded in 1994 and is based in San Diego, California.
Learn more about Kratos Defense & Security Solutions

Lineage Cell Therapeutics (LCTX) – Brian Culley, CEO and Brandi Roberts, CFO

  • Recent focus of the current pipeline
  • Foundation & utilization of pluripotent stem cells
  • Company structure – recent changes, current capabilities and subsidiaries
  • Overview of ongoing clinical trials in eye disease, spinal cord injury, and oncology indications
  • Market opportunity and competitive landscape
  • Current cash position & burn rate


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Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs. Lineage’s programs are based on its robust proprietary cell-based therapy platform and associated in-house development and manufacturing capabilities. With this platform Lineage develops and manufactures specialized, terminally differentiated human cells from its pluripotent and progenitor cell starting materials. These differentiated cells are developed to either replace or support cells that are dysfunctional or absent due to degenerative disease or traumatic injury or administered as a means of helping the body mount an effective immune response to cancer. Lineage’s clinical programs are in markets with billion dollar opportunities and include three allogeneic (“off-the-shelf”) product candidates: (i) OpRegen®, a retinal pigment epithelium transplant therapy in Phase 1/2a development for the treatment of dry age-related macular degeneration, a leading cause of blindness in the developed world; (ii) OPC1, an oligodendrocyte progenitor cell therapy in Phase 1/2a development for the treatment of acute spinal cord injuries; and (iii) VAC, an allogeneic dendritic cell therapy platform for immuno-oncology and infectious disease, currently in clinical development for the treatment of non-small cell lung cancer and in preclinical development for additional cancers and as a vaccine against infectious diseases, including SARS-CoV-2, the virus which causes COVID-19.
Learn more about Lineage Cell Therapeutics

E.W. Scripps (SSP) – Adam Symson, President & CEO and Lisa Knutson, Exec. Vice President & CFO

  • Where debt levels should be
  • Covid and the “new norm”
  • The future of legacy TV
  • Is there enough scale for Retrans?
  • ATCS 3.0 – Revenue opportunities – Possible spectrum play?
  • Significance of proposed regulatory rollback


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The E.W. Scripps Co. (www.scripps.com) serves audiences and businesses through a growing portfolio of television, print and digital media brands. After approval of its acquisition of two Granite Broadcasting stations later this year, Scripps will own 21 local television stations as well as daily newspapers in 13 markets across the United States. It also runs an expanding collection of local and national digital journalism and information businesses including digital video news service Newsy. Scripps also produces television programming, runs an award-winning investigative reporting newsroom in Washington, D.C., and serves as the longtime steward of one of the nation�s largest, most successful and longest-running educational programs, Scripps National Spelling Bee. Founded in 1879, Scripps is focused on the stories of tomorrow.
Learn more about The E.W. Scripps Company

Vectrus (VEC) – Chuck Prow, CEO

  • Opportunities in the converged infrastructure market
  • What the LOGCAP V contract means for Vectrus
  • Where they’re looking for portfolio growth over time
  • M&A strategy – ideal debt to EBITDA ratio
  • Operational impacts due to Covid
  • Expected effects from either election outcome


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Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.
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Gray Television (GTN) – Jim Ryan, CFO and Kevin Latek, Chief Legal & Development Officer

  • Why TV consolidation is likely to continue
  • Where the industry stands on retransmission revenues
  • Will network comps slow? Networks getting greedy?
  • Will broadcasters’ political bubble pop due to digital?
  • Is industry deregulation a concern with a potential new administration?
  • Coping with Covid; how the business has changed


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Gray Television, Inc. operates as a television broadcast company in the United States. As of April 6, 2010, it operated 36 television stations in 30 markets, including 17 affiliated with CBS Inc.; 10 affiliated with the National Broadcasting Company, Inc.; 8 affiliated with the American Broadcasting Company (ABC); and 1 affiliated with FOX Entertainment Group, Inc. (FOX). The company also operated 39 digital second channels comprising 1 affiliated with ABC, 4 affiliated with FOX, 7 affiliated with CW Network, LLC, 18 affiliated with Twentieth Television, Inc., 2 affiliated with Universal Sports Network, and 7 local news/weather channels. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.
Learn more about Gray Television

Coeur Mining (CDE) – Mitch Krebs, CEO

  • Where are the best near-term growth opportunities?
  • Rochester mine expansion plan and timing
  • Outlook for Silvertip feasibility study
  • Interests as a buyer/seller in current M&A environment
  • High-level plan to improve free cash flow profile
  • Why is now a good time to invest in Coeur Mining?


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Coeur Mining, Inc., headquartered in Chicago, Illinois, is a precious and base metals producer with five operations in North America. Coeur’s wholly owned operations include the Palmarejo silver-gold complex in Mexico, the Silvertip silver-zinc-lead mine in British Columbia, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, and the Wharf gold mine in South Dakota. In addition, the Company has interests in several precious metal exploration projects throughout North America. The company’s shares trade on the New York Stock Exchange under the ticker “CDE”.
Learn more about Coeur Mining

InPlay Oil (CDE) – Doug Bartole, CEO

  • Overview of InPlay Oil’s primary operations
  • How they are able to keep cost profile attractive
  • Response to oil price drop & recovery in 2020
  • New credit facility provides added liquidity until new wells start producing
  • Potential for more tuck-in acquisitions
  • When Doug expects the stock price to recover


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InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.
Learn more about InPlay Oil

Comstock Mining (LODE) – Corrado De Gasperis, CEO

  • Dayton – expectations for planned survey & milestones towards upcoming technical report
  • Lucerne properties sale & shareholder upside
  • Plans to grow the royalty portfolio
  • Mercury remediation & gold extraction strategies
  • Comstock’s financial strength and liquidity
  • Why is now a good time to invest?


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Comstock Mining Inc is a mining company with a focus on gold and silver deposits in the Comstock and Silver City mining districts in Nevada. Its operations are divided into two segments, namely mining and real estate. Its mining projects include The Lucerne Resource area, the Dayton Resource area, the Spring Valley exploration target, the Northern Extension, Northern Targets and Occidental areas. The Real Estate segment involves land, real estate rental properties and a hotel, restaurant & bar provided by the Gold Hill Hotel located in Gold Hill, Nevada just south of Virginia City and the Daney Ranch, located just south of Silver City. The majority revenues are generated from the real estate segment.
Learn more about Comstock Mining

Eagle Bulk Shipping (EGLE) – Gary Vogel, CEO

  • Dry bulk demand recovery despite COVID uncertainty
  • Active management strategy adds value to fleet
  • Managing seasonality & embracing volatility
  • Fleet renewal program improves age profile
  • Does Eagle have a durable competitive advantage?
  • Greatest challenges over the next 3-5 years


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Eagle Bulk Shipping Inc. is a US-based drybulk owner-operator focused on the Supramax/Ultramax mid-size asset class, which ranges from 50,000 and 65,000 deadweight tons in size; these vessels are equipped with onboard cranes allowing for the self-loading and unloading of cargoes, a feature which distinguishes them from the larger classes of drybulk vessels and provides for greatly enhanced flexibility and versatility- both with respect to cargo diversity and port accessibility. The Company transports a broad range of major and minor bulk cargoes around the world, including coal, grain, ore, pet coke, cement, and fertilizer. Eagle operates out of three offices, Stamford (headquarters), Singapore, and Hamburg, and performs all aspects of vessel management in-house including: commercial, operational, technical, and strategic.
Learn more about Eagle Bulk Shipping

Entravision Communications (EVC) – Christopher Young, CFO

  • Illegal immigration policy effect on its Hispanic markets
  • Recent digital media strategy changes & outlook
  • Covid effects on networks & digital platforms
  • Positive cash flow despite lower 2Q revenues
  • Expected impact of political advertising in 2020
  • Near-term acquisition outlook & strategy


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Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets. The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.
Learn more about Entravision

PDS Biotechnology (PDSB) – Frank Bedu-Addo, Ph.D., CEO

  • Oncology & infectious disease portfolio overview
  • PDS0101 oncology candidate – status of 3 clinical trials & competitive outlook
  • Other pipeline assets and indications – including prostate, breast, colorectal, and ovarian cancers
  • Universal flu vaccine & potential COVID applications of Versamune
  • Financial overview – current cash position, burn rate, & prioritization
  • Value generating catalysts for the next 12 months


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PDS Biotechnology Corp operates as a clinical stage biotechnology company, principally involved in drug discovery in the United States. It is primarily engaged in the treatment of various early-stage and late-stage cancers, including head and neck cancer, prostate cancer, breast cancer, cervical cancer, anal cancer, and other cancers. Its products are based on the proprietary Versamune platform technology, which activates and directs the human immune system to unleash a powerful and targeted attack against cancer cells.
Learn more about PDS Biotechnology

electroCore (ECOR) – Peter Staats, MD, CMO

  • Portfolio overview – currently approved indications
  • Recent Emergency Use Authorization for treatment of breathing difficulty due to COVID-19
  • gammaCore market opportunity, competition, and dfferentiation factors
  • Global coverage, partnership, and other indication opportunities for gammaCore
  • Value generating catalysts over next 12 months


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electroCore Inc is a commercial-stage bioelectronic medicine company with a platform for non-invasive vagus nerve stimulation therapy initially focused on neurology and rheumatology. The company’s product gammaCore is FDA-cleared for adjunctive use for the preventive treatment of cluster headache and for the acute treatment of pain associated with episodic cluster headache and migraine headache in adult patients.
Learn more about electroCore

Energy Fuels (UUUU) – Mark Chalmers, CEO & President

  • The current state of the uranium market
  • Impact of trade policies on domestic producers
  • Could small modular reactors be a game changer?
  • Portfolio beyond uranium – vanadium & rare earths
  • Uranium/minerals issues for the upcoming election
  • Energy Fuels financial strength and liquidity


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Energy Fuels is the largest uranium producer in the U.S. and holds more production capacity and uranium resources than any other U.S. producer. The Company also produces vanadium. Headquartered in Colorado, Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch ISR Facility in Wyoming, and the Alta Mesa ISR Facility in Texas. The producing White Mesa Mill is the only conventional uranium mill in the U.S. and has a licensed capacity of 8 million pounds of U3O8 per year. Nichols Ranch is in production and has a licensed capacity of 2 million pounds of U3O8 per year. Alta Mesa is currently on standby. Energy Fuels also owns several licensed and developed uranium and vanadium mines on standby and other projects in development.
Learn more about Energy Fuels

FAT Brands (FAT) – Andrew Wiederhorn, CEO & President

  • Covid effects & steps taken to combat the crisis
  • Benefits of recent whole business securitization
  • Overview of the Johnny Rockets acquisition
  • Post-acquisition revenue & margin outlook
  • Increasing sales with ghost kitchens & co-branding
  • Are more acquisitions on the horizon?


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FAT Brands Inc is a multi-brand restaurant franchising company. It develops, markets, and acquires predominantly fast casual restaurant concepts. The company provides turkey burgers, chicken Sandwiches, chicken tenders, burgers, ribs, wrap sandwiches, and others. Its brand portfolio comprises Fatburger, Buffalo’s Cafe and Express, and Ponderosa and Bonanza. The company’s overall footprint covers nearly 32 countries. Fatburger generates maximum revenue for the company.
Learn more about FAT Brands

ACCO Brands (ACCO) – Boris Elisman, CEO & President

  • Covid effects on the back to school season
  • Areas of focus for new product development
  • Expected impacts of recent cost reductions
  • Near term acquisitions strategy & outlook
  • Trends in largest international markets
  • Effects of a possible permanent shift to remote working & learning


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ACCO Brands Corporation designs, manufactures, sources, markets, and sells office products, academic supplies, and calendar products primarily in the United States, Canada, Northern Europe, Brazil, Australia, and Mexico. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company offers office products, such as stapling, binding and laminating equipment, and related consumable supplies, as well as shredders and whiteboards; and academic products, including notebooks, folders, decorative calendars, and stationery products. It also provides private label products, as well as business machine maintenance and repair services. The company offers its business, academic, and calendar product lines under the Artline, AT-A-GLANCE, Derwent, Esselte, Five Star, GBC, Hilroy, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra, Wilson Jones, and other brand names. In addition, it designs, sources, distributes, markets, and sells accessories for laptop and desktop computers, and tablets comprising security products; input devices, such as presenters, mice, and trackballs; ergonomic aids, including foot and wrist rests; docking stations; and other personal computers and tablet accessories under the Kensington, Microsaver, and ClickSafe brand names. The company sells its products to consumers and commercial end-users primarily through resellers, including traditional office supply resellers, wholesalers, mass merchandisers, and retailers, as well as directly to consumers through on-line and direct mail. ACCO Brands Corporation is headquartered in Lake Zurich, Illinois.
Learn more about ACCO Brands

CoreCivic (CXW) – Damon Hininger, CEO

  • Making the change from REIT to C-Corp.
  • How CoreCivic helps reduce prison overcrowding
  • Covid impacts on facilities, teams, and inmates
  • Environmental-social-governance report update
  • Effects of recent calls for criminal justice reform
  • What’s next for CoreCivic?


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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 REIT 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.
Learn more about CoreCivic

Golden Predator Mining (NTGSF, GPY:CA)
Janet Lee-Sheriff, CEO & William Sheriff, Executive Chairman

  • Keys to bringing Brewery Creek back to production
  • Near-term catalysts for the stock
  • Earning a social license through community engagement
  • Yukon Territory – what investors should know
  • Overview of financial strength and liquidity
  • Key milestones for remainder of 2020


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Golden Predator is advancing the past-producing Brewery Creek Mine towards a timely resumption of mining activities, under its Quartz Mining and Water Licenses, in Canada’s Yukon. The Brewery Creek Mine project has established mineral resources grading over 1.0 g/t Gold with planning studies currently underway by to consider the feasibility of restarting the mine. Drilling continues to expand the open-ended mineralized areas and untested targets across the 180 km2 brownfield property located 55 km by road from Dawson City, Yukon. The Company has a Socio-Economic Accord with the Tr’ondëk Hwëch’in First Nation.
Learn more about Golden Predator Mining

Genprex (GNPX) – Rodney Varner, CEO

  • Overview of Genprex’s gene therapy portfolio
  • Fast track designation of GPX-001 in combination with Tagrisso
  • Market opportunity & timeline of GPX-001 Keytruda combination in lung cancer
  • Diabetes program – grant and preclinical study
  • Main value generating catalysts next 6-12 months
  • Current cash position and burn rate


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Genprex Inc is a U.S.-based clinical-stage gene therapy company. It is engaged in developing a new approach to treating cancer based on its novel proprietary technology platform, including initial product candidate, Oncoprex immunogene therapy. Oncoprex, which has a multimodal mechanism of action whereby it interrupts cell signaling pathways that cause replication and proliferation of cancer cells, re-establishes pathways for apoptosis in cancer cells and modulates the immune response against cancer cells.
Learn more about Genprex

One Stop Sysems (OSS) – David Raun, CEO

  • What makes their product portfolio unique
  • Market size & competitive environment
  • Biggest changes made since David took over as CEO <
  • COVID impacts on manufacturing, supply, & customers
  • Plans to increase their value proposition
  • Biggest near-term growth opportunity


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One Stop Systems Inc is a US-based company which is principally engaged in designing, manufacturing, and marketing high-end systems for high performance computing (HPC) applications. The company offers custom servers, compute accelerators, solid-state storage arrays and system expansion systems. The product line of the company includes GPU Appliances, GPU Expansion, GPUs and co-processors, Flash storage arrays, Flash storage expansion, Servers, Disk Arrays, Desktop computing appliances, accessories and parts. The company delivers high-end technology to customers through the sale of equipment and software for use on their premises or through remote cloud access to secure data centres housing technology.
Learn more about One Stop Systems

Seanergy Maritime (SHIP) – Stamatis Tsantanis, Chairman & CEO

  • Macro environment effects on cape-size market
  • Pre & post-covid outlook for iron ore supply
  • Biggest impact of IMO2020 so far
  • Fleet expansion development & recent refinancing
  • Rate environment expectations for 2H2020
  • Liquidity outlook – Would SHIP consider a buyback?


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Seanergy Maritime Holdings Corp., an international shipping company, provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. Seanergy Maritime Holdings Corp. is the only pure-play Capesize shipping company listed in the US capital markets. Seanergy provides marine dry bulk transportation services through a modern fleet of 10 Capesize vessels, with total capacity of approximately 1,748,581 dwt and an average fleet age of about 9.8 years. The Company is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and class A warrants under “SHIPW”.
Learn more about Seanergy

Neovasc (NVCN) – Bill Little, COO

  • “Reducer” device for Refractory Angina
  • Reducer differentiators and market potential
  • Reducer catalysts, including FDA approval
  • “Tiara” device for Mitral Regurgitation
  • Tiara compared to standard of care & competitors
  • Value generating milestones/catalysts for the next year


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Neovasc Inc is a specialty medical device company. The company develops, manufactures and markets products for the rapidly growing cardiovascular marketplace. Its products include the Tiara for the transcatheter treatment of mitral valve disease and the Neovasc Reducer for the treatment of refractory angina. Neovasc is developing the Tiara for the treatment of mitral valve disease. Neovasc operates its business in one segment.
Learn more about Neovasc

Sierra Metals (SMTS) – Luis Marchese, CEO

  • Background of new CEO, Luis Marchese
  • How new silver discovery impacts growth outlook
  • Efforts to increase reserves in resources
  • Operational impacts due to COVID-19
  • Sierra’s financial strength and liquidity
  • Which metals have the most favorable outlook


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Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.
Learn more about Sierra Metals

Aurania Resources (AUIAF)(ARU:CA)
Keith Barron, CEO and Richard Spencer, President

  • How 2 boys hunting for pigs lead to gold discovery
  • What makes the Lost Cities project unique
  • Utilizing historical research, field work, & analytics
  • Effects of COVID-19 work restrictions in Ecuador
  • Potential mineral concessions in Peru
  • What differentiates Aurania from competitors


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Aurania Resources Ltd. is a Canada-based junior mining exploration company engaged in the identification, evaluation, acquisition, and exploration of mineral property interests, with a focus on precious metals and copper. Its flagship asset, The Lost Cities-Cutucu Project, is in southeastern Ecuador in the Province of Morona-Santiago. The company also has several minor projects in Switzerland.
Learn more about Aurania Resources

Dyadic International (DYAI) – Mark Emalfarb, President & CEO

  • Dyadic’s current business development strategy
  • Differentiating factors of the C1 platform
  • Various potential biologics applications for C1
  • The roadmap to commerical application
  • Current patnerships, including Dr. Fauci’s lab
  • Vision for Dyadic in the next 6-12 months


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Dyadic International, Inc. is a global biotechnology company which is developing what it believes will be a potentially significant biopharmaceutical gene expression platform based on the industrially proven hyper productive engineered fungus Thermothelomyces heterothallica (formerly Myceliophthora thermophila), named C1. The C1 microorganism, which enables the development and large scale manufacture of low cost proteins, has the potential to be further developed into a safe and efficient expression system that may help speed up the development, lower production costs and improve the performance of biologic vaccines and drugs at flexible commercial scales. Dyadic is using the C1 technology and other technologies to conduct research, development and commercial activities for the development and manufacturing of human and animal vaccines and drugs, such as virus like particles (VLPs) and antigens, monoclonal antibodies, Fab antibody fragments, Fc-Fusion proteins, biosimilars and/or biobetters, and other therapeutic proteins. Dyadic pursues research and development collaborations, licensing arrangements and other commercial opportunities with its partners and collaborators to leverage the value and benefits of these technologies in development and manufacture of biopharmaceuticals. In particular, as the aging population grows in developed and undeveloped countries, Dyadic believes the C1 technology may help bring biologic vaccines, drugs and other biologic products to market faster, in greater volumes, at lower cost, and with new properties to drug developers and manufacturers, and improve access and cost to patients and the healthcare system, but most importantly save lives.

Learn more about Dyadic International

Onconova Therapeutics (ONTX)
Steven Fruchtman, M.D., CEO and Ric Woodman, M.D., CMO

  • Portfolio outlook over the next 6-12 months
  • Progress of INSPIRE clinical trial in high-risk MDS
  • Upcoming trial in KRAS non-small cell lung cancer
  • Differentiating factors for rigosertib
  • Commencement of CDK 4/6 clinical program
  • Key value generating catalysts for 2020


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Onconova Therapeutics Inc is a clinical-stage biopharmaceutical company operating in the US. It focuses on discovering and developing novel small molecule product candidates primarily to treat cancer. The company has created a library of targeted agents designed to work against cellular pathways important to cancer cells. Its product candidates are Single-agent IV rigosertib, Oral rigosertib + azacitidine, IV Briciclib, Recilisib, and ON 123300. The key product candidate Rigosertib is a small molecule which blocks cellular signaling by targeting RAS effector pathways.
Learn more about Onconova Therapeutics

Newrange Gold (NRGOF)(NRG:CA) – Robert Archer, CEO

  • Plan for increasing shareholder value
  • Any project holds due to COVID-19?
  • What makes Pamlico unique? Is it over-mined?
  • Benefits of recent sale of non-core assets
  • What investors can expect from current projects


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Newrange Gold Corp., headquartered in Vancouver, British Columbia, is a precious metals exploration and development company focused on near to intermediate term production opportunities in favorable jurisdictions including Nevada, Colorado and Ontario. The company’s high-potential flagship Pamlico Project represents a high-grade epithermal gold system located in Nevada’s Walker Lane trend. The North Birch Project, located in the northwestern corner of the Birch-Uchi Greenstone Belt in the Red Lake Mining District of Ontario, includes the Western Fold and contiguous H Lake properties. The shares trade on the TSX Venture Exchange under the ticker NRG, the OTCQB under the ticker NRGOF and the Frankfurt Stock Exchange (FSX) under the ticker X6C.
Learn more about Newrange Gold

Energy Services of America Corp. (ESOA) – Doug Reynolds, CEO

  • Bidding outlook for 2nd half of 2020
  • Handling layoffs and re-hires during COVID-19
  • C.J. Hughes new president, Chuck Austin
  • Expected outcome of current litigation
  • Competitve strengths over the next few years


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Energy Services of America Corporation is engaged in providing contracting services for energy-related companies. The company is primarily engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. It services the gas, petroleum, power, chemical and automotive industries, and does incidental work such as water and sewer projects. Energy Service’s other services include liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction.
Learn more about Energy Services of America

Orion Group Holdings (ORN)
Mark Stauffer, CEO and Robert Tabb, CFO

  • Future uncertainty compared to a month ago
  • What’s the outlook for bidding activity?
  • Has COVID-19 changed anything for Orion?
  • Orion’s cash flow generating capacity
  • Biggest opportunites & challenges going forward


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Orion Group Holdings Inc is a US-based company which provides solutions in marine construction, design and specialty services both on and off the water in the continental US, Alaska, Canada, and the Caribbean Basin. It provides services such as marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design, and specialty services. It also provides turnkey concrete construction services including pour and finish, dirt work, layout, forming, and mesh across the commercial and structural business areas. It manages its business in two segments namely marine segment and concrete segment. The firm earns most of its revenue from the US.
Learn more about Orion Group Holdings

Indonesia Energy Corp. (INDO) – Frank Ingriselli, President

  • Benefits of operating in Indonesia
  • Oil price threshold to remain profitable
  • Effects of COVID-19 on production
  • Benefits of government intervention in sector
  • INDO’s competitive position vs. larger companies


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Indonesia Energy Corp Ltd is an oil and gas exploration and production company focused on Indonesia. It holds two oil and gas assets through its subsidiaries in Indonesia: one producing block (the Kruh Block) and one exploration block (the Citarum Block). The Kruh Block is located to the northwest of Pendopo, Pali, South Sumatra. The Citarum Block is located to the south of Jakarta.
Learn more about Indonesia Energy

Great Lakes Dredge & Dock (GLDD)
Lasse Petterson, CEO and Mark Marinko, CFO

  • How Panama Canal expansion affects US projects
  • Why the increase in coastal reclamation projects?
  • Dealing with a positive COVID-19 case on board
  • How the Jones Act affects future plans
  • What is GLDD’s biggest challenge going forward?


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Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.
Learn more about Great Lakes Dredge & Dock

Gevo, Inc. (GEVO) – Patrick Gruber, CEO

  • Why invest in alternative fuels?
  • What is Gevo’s revenue model?
  • The transition away from fossil fuels
  • The effects of carbon reduction policies
  • What’s the path to adoption of their product?


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Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.
Learn more about Gevo

1-800-Flowers.com (FLWS)
William Shea, CFO and Joe Pititto, Director of IR

  • COVID-19 effects on retail and e-commerce
  • Recent demand change bringing new customers?
  • Social distancing effects on local florists
  • High unemployment impact on gifting industry
  • The outlook for Mother’s Day


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1-800 Flowers.com Inc is a United-States-based provider of gourmet food & gift baskets, consumer floral, and BloomNet wire service. Gourmet food & gift baskets and consumer floral jointly account for the majority of the company’s total revenue. The company provides a broad range of merchandise, including fresh flowers, premium, fruits, popcorn, specialty treats, cookies and baked gifts, premium chocolates, confectionery, gift baskets, premium English muffins, steaks and chops, and others. The company offers products through omnichannel and multiple brands, such as Harry & David, The Popcorn Factory, Cheryl’s, Fannie May, 1-800-Baskets.com, Wolferman’s, Fruit Bouquets by 1800Flowers.com, and Stock Yards. The company’s BloomNet Wire Service provides products and services for florists.
Learn more about 1-800-Flowers.com

Ely Gold Royalties (ELYGF) – Trey Wasser, CEO

  • Trey’s outlook for gold prices
  • Impact of work stoppages during COVID-19
  • What mines are still producing?
  • Advantages of a owning a gold royalty company
  • Ely’s outlook and near-term goals


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Ely Gold Royalties Inc. is a Nevada focused gold royalty company. Its current portfolio includes royalties at some of Nevada’s largest gold mines, including Jerritt Canyon, Goldstrike and Marigold as well as the Fenelon property in Quebec, operated by Wallbridge Mining. Ely Gold’s royalty portfolio includes several advanced projects that are scheduled for production by 2023. The Company continues to actively seek opportunities to purchase producing or near-term producing royalties. Ely Gold is also generating development royalties through property sales on projects that are located at or near producing mines. Management believes that due to the Company’s ability to locate and purchase third-party royalties, its successful strategy of organically creating royalties and its gold focus, Ely Gold offers shareholders a low-risk leverage to gold prices and low-cost access to long-term gold royalties.
Learn more about Ely Gold Royalties

DLH (DLHC) – Primed for Growth

Tuesday, December 07, 2021

DLH (DLHC)
Primed for Growth

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.

    4Q21 Results. DLH reported revenue of $65.2 million in the quarter, up from $50.7 million in the same period last year. IBA added $8.5 million of revenue. We had projected revenue of $63.0 million. Net income totaled $2.9 million, or $0.21 per diluted share, versus $1.4 million, or $0.10 per diluted share, last year. We had forecasted $3.0 million, or $0.22 per share.

    Awards.  The big news during the quarter, and subsequently, has been the FEMA awards, which now total over $140 million, with the opportunity for additional follow-ons. While the FEMA awards are short-term in nature, DLH’s success in not only winning the awards, but also successfully implementing them, speaks volumes about the capabilities of the Company and bodes well for the future …



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

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

The GEO Group Inc. (GEO) – Changing Corporate Structure

Friday, December 03, 2021

The GEO Group, Inc. (GEO)
Changing Corporate Structure

With over 94,000 beds owned, leased or managed across its business lines and serving over 260,000 people daily, GEO is a leading provider of mission critical real estate to its governmental partners. The Company is the first fully integrated equity REIT specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the U.S., Australia, South Africa, and the U.K.

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

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

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

    Adopting C-Corp. In a not unexpected development, The GEO Group will become a taxable C-Corp., foregoing the existing REIT structure. The adoption is effective for the year ending December 31, 2021. The Company’s Board also voted to discontinue GEO’s quarterly dividend. The dividend was suspended this past April when management decided to explore changes to the corporate structure.

    Near-term Impact.  Given the 2021 effective date, during the fourth quarter GEO will incur a one-time, non-cash deferred tax charge of about $75 million and also expects to incur approximately $34 million in incremental tax expense due to the resulting higher corporate tax rate for 2021. The fourth quarter tax expense includes about $26 million in connection with the first three quarters of 2021 …



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

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

The GEO Group, Inc. (GEO) – Changing Corporate Structure

Friday, December 03, 2021

The GEO Group, Inc. (GEO)
Changing Corporate Structure

With over 94,000 beds owned, leased or managed across its business lines and serving over 260,000 people daily, GEO is a leading provider of mission critical real estate to its governmental partners. The Company is the first fully integrated equity REIT specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the U.S., Australia, South Africa, and the U.K.

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

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

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

    Adopting C-Corp. In a not unexpected development, The GEO Group will become a taxable C-Corp., foregoing the existing REIT structure. The adoption is effective for the year ending December 31, 2021. The Company’s Board also voted to discontinue GEO’s quarterly dividend. The dividend was suspended this past April when management decided to explore changes to the corporate structure.

    Near-term Impact.  Given the 2021 effective date, during the fourth quarter GEO will incur a one-time, non-cash deferred tax charge of about $75 million and also expects to incur approximately $34 million in incremental tax expense due to the resulting higher corporate tax rate for 2021. The fourth quarter tax expense includes about $26 million in connection with the first three quarters of 2021 …



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. 

Thanksgiving Dinner by the Numbers


Image Credit: RODNAE Productions (Pexels)

Thanksgiving Dinner by the Numbers

 

Minnesota leads the nation in turkey production, while Wisconsin grows 59% of all cranberries. See how Thanksgiving dinner comes together from farms across the nation.


 

From mashed potatoes to green bean casserole to the centerpiece turkey, many of the components of a traditional Thanksgiving menu originate from American farms.

Here’s the government data behind Thanksgiving dinner. Unless otherwise noted, all the data is from the US Department of Agriculture.

Turkey

In 2020, farmers raised 224 million turkeys and produced 5.7 billion pounds of ready-to-cook turkey. That’s an average of 26 pounds of meat per bird. Last year, total turkey production was worth an estimated $5.1 billion.

 

 

Top states: Minnesota produced the most turkeys in 2020 at 40 million birds — or about 18% of the US total. Arkansas was second with 31 million, followed by North Carolina at 30 million.

Fun fact: Americans ate 16 pounds of turkey per person in 2020.

Sweet potatoes

In 2020, the US produced 3.4 billion pounds of sweet potatoes. Farmers sold $588 million worth of sweet potatoes.

 

 

Top states: North Carolina leads the nation in sweet potato farming, producing 1.9 billion pounds or about 55% of the crop grown in the US. California growers produced 887 million pounds or 26% of US sweet potato production.

Fun fact: Domestic sweet potato consumption has grown significantly since 2000: annual per capita availability, a measure used as a proxy for consumption, increased from 4.2 pounds in 2000 to 6.7 pounds in 2020.

Cranberries

In 2020, the US produced 7.8 million barrels of cranberries, down 1.1 million from the 2018 figure of 8.9 million barrels. Barrels can hold 100 pounds of cranberries.

 

 

Top states: This Thanksgiving mainstay is harvested from bogs covering 39,300 acres primarily in two states. In Wisconsin, farmers harvested 4.6 million barrels of cranberries in 2020, accounting for 59% of total production. Massachusetts farmers produced 2.1 million barrels of cranberries, accounting for 27% of all production.

Fun fact: The price of a barrel of cranberries is 47% lower from a high of $70.02 (adjusted to 2020 dollars) in 2008 to $37.30 in 2020.

Potatoes

In 2020, the US produced 47 billion pounds of potatoes. The value of all potatoes sold in 2020 was $3.7 billion, an 8% decrease from 2019.

 

 

Top states: Synonymous with potatoes, Idaho leads the nation in production, responsible for 32% of the nation’s output. Neighboring Washington is responsible for 24% of production.

Fun fact: Forty percent of potatoes were processed into frozen products, including french fries. About 24%, or 11.3 billion pounds of potatoes, remained as the fresh type that can be transformed into mashed potatoes.

Snap (or green) beans

In 2020, the US produced 1.7 billion pounds of snap beans. Eighteen percent of snap beans produced in the US are for fresh use, while the rest are processed by canning or freezing.

 

 

Top states: Wisconsin led all states in production in 2020 with 633 million pounds of snap beans. Five other states — New York, Michigan, Oregon, Florida, and Illinois — had production exceed 100 million pounds.

Fun fact: In terms of area harvested, snap beans were among the top three vegetables alongside sweet corn and tomatoes. In 2020, snap bean farms covered 185,200 acres. Sweet corn harvests covered 402,900 acres, while tomatoes covered 280,000 acres.

Pumpkins

In 2020, US farmers produced 1.5 billion pounds of pumpkins.

 

 

Top states: Production is dispersed throughout the US, with all states producing some pumpkins. In 2017 and based on weight, about 40% of pumpkin acres were harvested in the top six pumpkin-producing states. Illinois harvested 15,900 acres of pumpkins, more than twice the 7,000 acres harvested in second-place Pennsylvania.

Fun fact: The majority of Illinois’ pumpkin crop — 523 million pounds or 82% of the total — is processed as pie filling or other processed pumpkin products. By contrast, 0% of the pumpkin crop in California is processed. This difference is largely explained by differences in types of pumpkins grown in Illinois versus other states. According to the USDA, pumpkin growers in other states are geared more toward growing pumpkins for seasonal reasons such as Halloween.

To learn more about the farmers producing this food, read this report on the 3.4 million agricultural workers in America.

 

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

Wednesday, November 10, 2021

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

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.

    Capital Allocation. Management noted the need to address the credit facility, with a goal of reducing the size of the line and extending the maturity, prior to committing to returning capital to shareholders. We anticipate actions such as share repurchases could be implemented by the end of the second quarter next year.

    New Business? CXW remains in negotiations for the West Tennessee facility.  Arizona remains a potential new award. Experiencing their own labor issues, some states have contacted CoreCivic about taking inmates. Over at ICE, we continue to believe there could be a significant increase in populations once Title 42 is rescinded …



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 – Kelly Reports Third-Quarter 2021 Earnings and Announces Dividend


Kelly® Reports Third-Quarter 2021 Earnings and Announces Dividend

 

Financial Highlights

  • Q3 revenue up 15.1%; 14.5% in constant currency
  • Q3 operating earnings of $9.0 million; up from a loss a year ago and up 25.9% on an adjusted basis
  • Q3 earnings per share of $0.87 up from $0.42 a year ago; adjusted EPS of $0.25 compared to $0.29

TROY, Mich., Nov. 10, 2021 (GLOBE NEWSWIRE) — Kelly® (Nasdaq: KELYAKELYB), a leading specialty talent solutions provider, today announced results for the third quarter of 2021.

Peter Quigley, president and chief executive officer, announced revenue for the third quarter of 2021 totaled $1.2 billion, a 15.1% increase compared to the corresponding quarter of 2020. Revenue improved year-over-year in the quarter reflecting increased customer demand compared to the COVID-19-impacted prior year period.

Earnings from operations in the third quarter of 2021 totaled $9.0 million, compared to a loss of $2.4 million reported in the third quarter of 2020. Included in the third quarter of 2020 was a $9.5 million charge related to a customer dispute in Mexico. On an adjusted basis, earnings from operations improved 25.9%.

Diluted earnings per share in the third quarter of 2021 were $0.87 compared to $0.42 per share in the third quarter of 2020. Included in the earnings per share is a non-cash gain per share, net of tax, on Kelly’s investment in Persol Holdings common stock of $0.62 in the third quarter of 2021 and $0.29 in the third quarter of 2020. On an adjusted basis, earnings per share were $0.25 in the third quarter of 2021 compared to $0.29 in the corresponding quarter of 2020.

“We’re pleased that all five of our specialty operating segments delivered organic year-over-year gains in the third quarter, contributing to solid revenue and GP dollar growth for the company,” said Quigley, who noted that Kelly has already begun taking actions to better leverage top-line growth heading into 2022. “Demand for our solutions is strong, and we’re finding innovative ways to connect talent and clients in a tight labor market. We’re confident that Kelly’s specialty strategy will continue to deliver top and bottom-line growth throughout the recovery and into the post-COVID environment.”

Kelly also reported that on November 10, its board of directors declared a dividend of $0.05 per share. The dividend is payable on December 8, 2021, to stockholders of record as of the close of business on November 24, 2021.

In conjunction with its third-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 November 10 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 2:30 p.m. ET on November 10, 2021, at (866) 207-1041 (toll-free) and (402) 970-0847 (caller-paid). The access code is 2025741#. 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 recent 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 nearly 370,000 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 2020 was $4.5 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     james.polehna@kellyservices.com

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED OCTOBER 3, 2021 AND SEPTEMBER 27, 2020
(UNAUDITED)
(In millions of dollars except per share data)
                %   CC %
    2021   2020   Change   Change   Change
                     
Revenue from services $ 1,195.4     $ 1,038.2     $ 157.2     15.1 %   14.5 %
                     
Cost of services   966.5       847.2       119.3     14.1      
                     
Gross profit   228.9       191.0       37.9     19.8     19.2  
                     
Selling, general and administrative expenses   219.9       193.4       26.5     13.7     13.2  
                     
Earnings (loss) from operations   9.0       (2.4 )     11.4     NM      
                     
Gain (loss) on investment in Persol Holdings   35.5       16.8       18.7     112.0      
                     
Other income (expense), net   (0.3 )     (0.7 )     0.4     50.1      
                     
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate   44.2       13.7       30.5     222.8      
                     
Income tax expense (benefit)   11.1       (1.2 )     12.3     NM      
                     
Net earnings (loss) before equity in net earnings (loss) of affiliate   33.1       14.9       18.2     122.4      
                     
Equity in net earnings (loss) of affiliate   1.7       1.8       (0.1 )   (3.6 )    
                     
Net earnings (loss) $ 34.8     $ 16.7     $ 18.1     108.9      
                     
Basic earnings (loss) per share $ 0.87     $ 0.42     $ 0.45     107.1      
Diluted earnings (loss) per share $ 0.87     $ 0.42     $ 0.45     107.1      
                     
                     
STATISTICS:                    
                     
Permanent placement revenue (included in revenue from services) $ 19.7     $ 9.1     $ 10.6     118.0 %   116.6 %
                     
Gross profit rate   19.2 %     18.4 %     0.8  pts.        
                     
Conversion rate   3.9 %     (1.3 )%     5.2  pts.        
                     
Adjusted EBITDA $ 17.3     $ 13.2     $ 4.1          
Adjusted EBITDA margin   1.4 %     1.3 %     0.1  pts.        
                     
Effective income tax rate   25.2 %     (8.5 )%     33.7  pts.        
                     
Average number of shares outstanding (millions):                    
Basic   39.4       39.3                
Diluted   39.5       39.4                

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 39 WEEKS ENDED OCTOBER 3, 2021 AND SEPTEMBER 27, 2020
(UNAUDITED)
(In millions of dollars except per share data)
                %   CC %
    2021   2020   Change   Change   Change
                     
Revenue from services $ 3,659.4     $ 3,274.6     $ 384.8     11.8 %   10.3 %
                     
Cost of services   2,986.2       2,671.1       315.1     11.8      
                     
Gross profit   673.2       603.5       69.7     11.5     10.1  
                     
Selling, general and administrative expenses   639.9       591.0       48.9     8.3     7.0  
                     
Goodwill impairment charge         147.7       (147.7 )   NM      
                       
Gain on sale of assets         (32.1 )     32.1     NM      
                       
Earnings (loss) from operations   33.3       (103.1 )     136.4     NM      
                       
Gain (loss) on investment in Persol Holdings   71.8       (31.4 )     103.2     NM      
                     
Other income (expense), net   (4.0 )     3.6       (7.6 )   (211.5 )    
                     
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate   101.1       (130.9 )     232.0     NM      
                       
Income tax expense (benefit)   19.0       (36.5 )     55.5     152.0      
                       
Net earnings (loss) before equity in net earnings (loss) of affiliate   82.1       (94.4 )     176.5     NM      
                       
Equity in net earnings (loss) of affiliate   2.3       (1.0 )     3.3     NM      
                       
Net earnings (loss) $ 84.4     $ (95.4 )   $ 179.8     NM      
                       
Basic earnings (loss) per share $ 2.12     $ (2.43 )   $ 4.55     NM      
Diluted earnings (loss) per share $ 2.12     $ (2.43 )   $ 4.55     NM      
                     
                     
STATISTICS:                    
                     
Permanent placement revenue (included in revenue from services) $ 54.3     $ 28.9     $ 25.4     87.8 %   84.5 %
                     
Gross profit rate   18.4 %     18.4 %      pts.        
                     
Conversion rate   4.9 %     (17.1 )%     22.0  pts.        
                     
Adjusted EBITDA $ 56.4     $ 48.6     $ 7.8          
Adjusted EBITDA margin   1.5 %     1.5 %      pts.        
                     
Effective income tax rate   18.8 %     27.9 %     (9.1 ) 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)
                   
    Third Quarter
                   
              %   CC %
    2021     2020   Change   Change
Professional & Industrial                  
Revenue from services $ 452.6     $ 446.5     1.4 %   1.0 %
Gross profit   76.6       77.1     (0.5 )   (0.9 )
SG&A expenses excluding restructuring charges   69.4       65.4     6.2     5.9  
Restructuring charges         (0.1 )   NM     NM  
Total SG&A expenses   69.4       65.3     6.2     5.9  
Earnings (loss) from operations   7.2       11.8     (38.1 )      
Earnings (loss) from operations excluding restructuring charges   7.2       11.7     (38.1 )      
                       
Gross profit rate   16.9 %     17.3 %   (0.4 ) pts.      
                       
Science, Engineering & Technology                      
Revenue from services $ 306.2     $ 244.0     25.5 %   25.3 %
Gross profit   68.1       50.7     34.5     34.4  
SG&A expenses excluding restructuring charges   48.4       31.3     54.8     54.6  
Restructuring charges             NM     NM  
Total SG&A expenses   48.4       31.3     54.8     54.6  
Earnings (loss) from operations   19.7       19.4     1.7      
Earnings (loss) from operations excluding restructuring charges   19.7       19.4     1.7      
                   
Gross profit rate   22.3 %     20.8 %   1.5  pts.    
                   
Education                  
Revenue from services $ 66.6     $ 27.5     142.1 %   142.1 %
Gross profit   10.0       4.1     139.7     139.7  
SG&A expenses excluding restructuring charges   17.0       11.6     45.9     45.9  
Restructuring charges             NM     NM  
Total SG&A expenses   17.0       11.6     46.1     46.1  
Earnings (loss) from operations   (7.0 )     (7.5 )   6.6      
Earnings (loss) from operations excluding restructuring charges   (7.0 )     (7.5 )   6.7      
                   
Gross profit rate   15.1 %     15.2 %   (0.1 ) pts.    
                   
Outsourcing & Consulting                  
Revenue from services $ 113.4     $ 87.9     29.1 %   28.6 %
Gross profit   37.3       29.1     27.9     26.9  
SG&A expenses excluding restructuring charges   30.7       25.4     20.5     19.8  
Restructuring charges             NM     NM  
Total SG&A expenses   30.7       25.4     20.5     19.7  
Earnings (loss) from operations   6.6       3.7     79.1        
Earnings (loss) from operations excluding restructuring charges   6.6       3.7     78.7        
                       
Gross profit rate   32.8 %     33.1 %   (0.3 ) pts.      
                       
International                      
Revenue from services $ 256.8     $ 232.4     10.5 %   8.8 %
Gross profit   36.9       30.0     22.7     21.0  
SG&A expenses excluding restructuring charges   34.5       39.9     (13.6 )   (14.8 )
Restructuring charges             NM     NM  
Total SG&A expenses   34.5       39.9     (13.6 )   (14.8 )
Earnings (loss) from operations   2.4       (9.9 )   NM        
Earnings (loss) from operations excluding restructuring charges   2.4       (9.9 )   NM      
                   
Gross profit rate   14.4 %     12.9 %   1.5  pts.    

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
                   
    September Year to Date
                   
              %   CC %
    2021     2020   Change   Change
Professional & Industrial                  
Revenue from services $ 1,386.7     $ 1,346.7     3.0 %   2.5 %
Gross profit   227.7       241.1     (5.5 )   (6.0 )
SG&A expenses excluding restructuring charges   207.8       206.1     0.8     0.5  
Restructuring charges         4.3     NM     NM  
Total SG&A expenses   207.8       210.4     (1.2 )   (1.6 )
Earnings (loss) from operations   19.9       30.7     (34.9 )    
Earnings (loss) from operations excluding restructuring charges   19.9       35.0     (43.0 )    
                   
Gross profit rate   16.4 %     17.9 %   (1.5 ) pts.    
                   
Science, Engineering & Technology                  
Revenue from services $ 859.1     $ 761.5     12.8 %   12.6 %
Gross profit   187.8       156.0     20.4     20.2  
SG&A expenses excluding restructuring charges   131.0       98.6     32.9     32.7  
Restructuring charges         0.5     NM     NM  
Total SG&A expenses   131.0       99.1     32.2     32.0  
Earnings (loss) from operations   56.8       56.9     (0.2 )      
Earnings (loss) from operations excluding restructuring charges   56.8       57.4     (1.1 )      
                       
Gross profit rate   21.9 %     20.5 %   1.4  pts.      
                       
Education                      
Revenue from services $ 284.1     $ 195.1     45.6 %   45.6 %
Gross profit   44.0       28.8     52.5     52.5  
SG&A expenses excluding restructuring charges   46.5       36.9     26.0     26.0  
Restructuring charges         0.8     NM     NM  
Total SG&A expenses   46.5       37.7     23.1     23.1  
Earnings (loss) from operations   (2.5 )     (8.9 )   72.1      
Earnings (loss) from operations excluding restructuring charges   (2.5 )     (8.1 )   69.0      
                   
Gross profit rate   15.5 %     14.8 %   0.7  pts.    
                   
Outsourcing & Consulting                  
Revenue from services $ 320.0     $ 261.0     22.6 %   21.2 %
Gross profit   103.4       87.1     18.7     16.3  
SG&A expenses excluding restructuring charges   89.2       79.1     12.7     10.9  
Restructuring charges             NM     NM  
Total SG&A expenses   89.2       79.1     12.6     10.8  
Earnings (loss) from operations   14.2       8.0     79.0        
Earnings (loss) from operations excluding restructuring charges   14.2       8.0     77.5        
                       
Gross profit rate   32.3 %     33.4 %   (1.1 ) pts.      
                       
International                      
Revenue from services $ 810.1     $ 710.6     14.0 %   9.0 %
Gross profit   110.3       90.5     21.8     16.3  
SG&A expenses excluding restructuring charges   102.2       100.3     1.8     (2.8 )
Restructuring charges         1.1     NM     NM  
Total SG&A expenses   102.2       101.4     0.7     (3.9 )
Earnings (loss) from operations   8.1       (10.9 )   NM        
Earnings (loss) from operations excluding restructuring charges   8.1       (9.8 )   NM        
                   
Gross profit rate   13.6 %     12.7 %   0.9  pts.    

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
             
    October 3, 2021   January 3, 2021   September 27, 2020
Current Assets            
Cash and equivalents $ 43.5   $ 223.0   $ 248.2  
Trade accounts receivable, less allowances of            
$12.3, $13.3, and $11.4, respectively   1,423.9     1,265.2     1,111.4  
Prepaid expenses and other current assets   71.0     61.4     71.4  
Total current assets   1,538.4     1,549.6     1,431.0  
             
Noncurrent Assets            
Property and equipment, net   36.1     41.0     40.8  
Operating lease right-of-use assets   79.3     83.2     84.0  
Deferred taxes   304.0     282.0     273.3  
Goodwill, net   114.8     3.5      
Investment in Persol Holdings   222.6     164.2     145.8  
Investment in equity affiliate   122.0     118.5     115.6  
Other assets   386.3     319.9     301.2  
Total noncurrent assets   1,265.1     1,012.3     960.7  
             
Total Assets $ 2,803.5   $ 2,561.9   $ 2,391.7  
             
Current Liabilities            
Short-term borrowings $   $ 0.3   $ 0.5  
Accounts payable and accrued liabilities   645.2     536.8     458.4  
Operating lease liabilities   18.4     19.6     19.5  
Accrued payroll and related taxes   334.9     293.0     240.7  
Accrued workers’ compensation and other claims   21.1     22.7     25.0  
Income and other taxes   58.4     53.2     52.4  
Total current liabilities   1,078.0     925.6     796.5  
             
Noncurrent Liabilities            
Operating lease liabilities   64.1     67.5     68.1  
Accrued payroll and related taxes   58.2     58.5     75.7  
Accrued workers’ compensation and other claims   39.1     42.2     44.4  
Accrued retirement benefits   213.5     205.8     188.2  
Other long-term liabilities   76.5     59.3     52.7  
Total noncurrent liabilities   451.4     433.3     429.1  
             
Stockholders’ Equity            
Common stock   40.1     40.1     40.1  
Treasury stock   (15.2 )   (17.1 )   (17.2 )
Paid-in capital   23.2     21.3     20.6  
Earnings invested in the business   1,245.3     1,162.9     1,139.5  
Accumulated other comprehensive income (loss)   (19.3 )   (4.2 )   (16.9 )
Total stockholders’ equity   1,274.1     1,203.0     1,166.1  
             
Total Liabilities and Stockholders’ Equity $ 2,803.5   $ 2,561.9   $ 2,391.7  
             
STATISTICS:            
Working Capital $ 460.4   $ 624.0   $ 634.5  
Current Ratio   1.4     1.7     1.8  
Debt-to-capital %   0.0 %   0.0 %   0.0 %
Global Days Sales Outstanding   63     64     61  
Year-to-Date Free Cash Flow $ 23.5   $ 170.5   $ 204.2  

        

 

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 39 WEEKS ENDED OCTOBER 3, 2021 AND SEPTEMBER 27, 2020
(UNAUDITED)
(In millions of dollars)
    2021   2020
Cash flows from operating activities:        
Net earnings (loss) $ 84.4   $ (95.4 )
Adjustments to reconcile net earnings (loss) to net cash from operating activities:        
Goodwill impairment charge       147.7  
Deferred income taxes on goodwill impairment charge       (23.0 )
Depreciation and amortization   22.0     18.0  
Operating lease asset amortization   16.0     15.9  
Provision for credit losses and sales allowances   0.8     10.7  
Stock-based compensation   4.0     2.9  
(Gain) loss on investment in Persol Holdings   (71.8 )   31.4  
Gain on sale of assets       (32.1 )
Equity in net (earnings) loss of PersolKelly Pte. Ltd.   (2.3 )   1.0  
Other, net   4.6     1.8  
Changes in operating assets and liabilities, net of acquisitions   (26.7 )   137.6  
         
Net cash from operating activities   31.0     216.5  
         
Cash flows from investing activities:        
Capital expenditures   (7.5 )   (12.3 )
Proceeds from sale of assets       55.5  
Acquisition of companies, net of cash received   (213.0 )   (36.4 )
Proceeds from company-owned life insurance   10.4     2.3  
Proceeds from sale of Brazil, net of cash disposed       1.2  
Proceeds from loans with equity affiliate   5.8      
Proceeds from (investment in) equity securities   5.0     (0.2 )
Other investing activities   0.9     0.2  
         
Net cash (used in) from investing activities   (198.4 )   10.3  
         
Cash flows from financing activities:        
Net change in short-term borrowings   (0.2 )   (1.5 )
Financing lease payments   (1.3 )   (1.0 )
Dividend payments   (2.0 )   (3.0 )
Payments of tax withholding for stock awards   (0.6 )   (1.2 )
Contingent consideration payments   (1.6 )    
Other financing activities       (0.1 )
         
Net cash used in financing activities   (5.7 )   (6.8 )
         
Effect of exchange rates on cash, cash equivalents and restricted cash   (3.9 )   3.4  
         
Net change in cash, cash equivalents and restricted cash   (177.0 )   223.4  
Cash, cash equivalents and restricted cash at beginning of period   228.1     31.0  
         
Cash, cash equivalents and restricted cash at end of period $ 51.1   $ 254.4  

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES BY GEOGRAPHY
(UNAUDITED)
(In millions of dollars)
                 
    Third Quarter
                 
            %   CC %
    2021   2020   Change   Change
                 
Americas                
United States $ 851.7   $ 740.6     15.0 %   15.0 %
Canada   43.3     30.3     42.8     35.1  
Puerto Rico   25.5     18.4     39.2     39.2  
Mexico   14.4     27.4     (47.4 )   (52.7 )
Brazil       1.8     NM     NM  
Total Americas Region   934.9     818.5     14.2     13.8  
                 
Europe                
France   56.3     48.8     15.4     14.3  
Switzerland   54.5     49.6     10.0     9.8  
Portugal   36.6     31.7     15.6     14.6  
Russia   33.0     27.2     21.3     21.1  
Italy   18.5     14.5     27.5     26.4  
United Kingdom   17.2     16.4     4.5     (2.1 )
Germany   9.0     7.0     28.2     27.3  
Ireland   7.4     4.9     49.9     48.8  
Other   17.3     12.0     44.4     43.0  
Total Europe Region   249.8     212.1     17.8     16.6  
                 
Total Asia-Pacific Region   10.7     7.6     41.4     39.3  
                 
Total Kelly Services, Inc. $ 1,195.4   $ 1,038.2     15.1 %   14.5 %
                 

        

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES BY GEOGRAPHY
(UNAUDITED)
(In millions of dollars)
                 
    September Year to Date
                 
            %   CC %
    2021   2020   Change   Change
                 
Americas                
United States $ 2,604.8   $ 2,369.2     9.9 %   9.9 %
Canada   116.9     88.7     31.8     21.9  
Mexico   82.1     78.6     4.5     (1.8 )
Puerto Rico   76.6     56.1     36.6     36.6  
Brazil       17.0     NM     NM  
Total Americas Region   2,880.4     2,609.6     10.4     9.8  
                 
Europe                
France   168.1     141.2     19.0     11.9  
Switzerland   161.2     141.2     14.2     9.6  
Portugal   120.9     99.1     22.0     14.5  
Russia   99.3     88.6     12.1     17.5  
Italy   56.0     42.5     31.7     23.9  
United Kingdom   51.9     56.5     (8.2 )   (15.8 )
Germany   24.6     22.1     11.3     5.1  
Ireland   18.8     14.0     34.1     26.8  
Other   49.9     38.7     29.0     21.6  
Total Europe Region   750.7     643.9     16.6     11.6  
                 
Total Asia-Pacific Region   28.3     21.1     33.9     24.9  
                 
Total Kelly Services, Inc. $ 3,659.4   $ 3,274.6     11.8 %   10.3 %
                 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
THIRD QUARTER
(UNAUDITED)
(In millions of dollars)
       
  2021   2020
SG&A Expenses: As Reported   Restructuring(5)   Adjusted   Adjusted
Professional & Industrial $ 69.4     $     $ 69.4     $ 65.4  
Science, Engineering & Technology 48.4         48.4     31.3  
Education 17.0         17.0     11.6  
Outsourcing & Consulting 30.7         30.7     25.4  
International 34.5         34.5     30.4  
Corporate 19.9     0.1     20.0     19.9  
Total Company $ 219.9     $ 0.1     $ 220.0     $ 184.0  

 

  2021   2020
Earnings (loss) from Operations: As Reported   Restructuring(5)   Adjusted   Adjusted
Professional & Industrial $ 7.2     $     $ 7.2     $ 11.7  
Science, Engineering & Technology 19.7         19.7     19.4  
Education (7.0 )       (7.0 )   (7.5 )
Outsourcing & Consulting 6.6         6.6     3.7  
International 2.4         2.4     (0.4 )
Corporate (19.9 )   (0.1 )   (20.0 )   (19.9 )
Total Company $ 9.0     $ (0.1 )   $ 8.9     $ 7.0  

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
THIRD QUARTER
(UNAUDITED)
(In millions of dollars)
               
  2020
SG&A Expenses: As Reported   Customer Dispute(4)   Restructuring(5)   Adjusted
Professional & Industrial $ 65.3     $     $ 0.1     $ 65.4  
Science, Engineering & Technology 31.3             31.3  
Education 11.6             11.6  
Outsourcing & Consulting 25.4             25.4  
International 39.9     (9.5 )       30.4  
Corporate 19.9             19.9  
Total Company $ 193.4     $ (9.5 )   $ 0.1     $ 184.0  

 

  2020
Earnings (loss) from Operations: As Reported   Customer Dispute(4)   Restructuring(5)   Adjusted
Professional & Industrial $ 11.8     $     $ (0.1 )   $ 11.7  
Science, Engineering & Technology 19.4             19.4  
Education (7.5 )           (7.5 )
Outsourcing & Consulting 3.7             3.7  
International (9.9 )   9.5         (0.4 )
Corporate (19.9 )           (19.9 )
Total Company $ (2.4 )   $ 9.5     $ (0.1 )   $ 7.0  

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
SEPTEMBER YEAR TO DATE
(UNAUDITED)
(In millions of dollars)
               
  2021   2020
SG&A Expenses: As Reported   Restructuring(5)   Adjusted   Adjusted
Professional & Industrial $ 207.8     $     $ 207.8     $ 206.1  
Science, Engineering & Technology 131.0         131.0     98.6  
Education 46.5         46.5     36.9  
Outsourcing & Consulting 89.2         89.2     79.1  
International 102.2         102.2     90.8  
Corporate 63.2     0.1     63.3     61.6  
Total Company $ 639.9     $ 0.1     $ 640.0     $ 573.1  

 

 

  2021   2020
Earnings (loss) from Operations: As Reported   Restructuring(5)   Adjusted   Adjusted
Professional & Industrial $ 19.9     $     $ 19.9     $ 35.0  
Science, Engineering & Technology 56.8         56.8     57.4  
Education (2.5 )       (2.5 )   (8.1 )
Outsourcing & Consulting 14.2         14.2     8.0  
International 8.1         8.1     (0.3 )
Corporate (63.2 )   (0.1 )   (63.3 )   (61.6 )
Total Company $ 33.3     $ (0.1 )   $ 33.2     $ 30.4  

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
SEPTEMBER YEAR TO DATE
(UNAUDITED)
(In millions of dollars)
 
  2020
SG&A Expenses: As Reported   Customer Dispute(4)   Restructuring(5)   Adjusted
Professional & Industrial $ 210.4     $     $ (4.3 )   $ 206.1  
Science, Engineering & Technology 99.1         (0.5 )   98.6  
Education 37.7         (0.8 )   36.9  
Outsourcing & Consulting 79.1             79.1  
International 101.4     (9.5 )   (1.1 )   90.8  
Corporate 63.3         (1.7 )   61.6  
Total Company $ 591.0     $ (9.5 )   $ (8.4 )   $ 573.1  

 

  2020
Earnings (loss) from Operations: As Reported   Goodwill impairment(1)   Gain on sale
of assets(3)
  Customer Dispute(4)   Restructuring(5)   Adjusted
Professional & Industrial $ 30.7     $     $     $     $ 4.3     $ 35.0  
Science, Engineering & Technology 56.9                 0.5     57.4  
Education (8.9 )               0.8     (8.1 )
Outsourcing & Consulting 8.0                     8.0  
International (10.9 )           9.5     1.1     (0.3 )
Corporate (178.9 )   147.7     (32.1 )       1.7     (61.6 )
Total Company $ (103.1 )   $ 147.7     $ (32.1 )   $ 9.5     $ 8.4     $ 30.4  

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)
                 
                 
    Third Quarter   September Year to Date
    2021   2020   2021   2020
Income tax expense (benefit)   $ 11.1     $ (1.2 )   $ 19.0     $ (36.5 )
Taxes on goodwill impairment charge(1)               23.0  
Taxes on investment in Persol Holdings(2)   (10.9 )   (5.2 )   (22.0 )   9.6  
Taxes on gain on sale of assets(3)               (8.1 )
Taxes on customer dispute(4)       2.8         2.8  
Taxes on restructuring charges(5)               2.2  
Adjusted income tax expense (benefit)   $ 0.2     $ (3.6 )   $ (3.0 )   $ (7.0 )
                 
    Third Quarter   September Year to Date
    2021   2020   2021   2020
Net earnings (loss)   $ 34.8     $ 16.7     $ 84.4     $ (95.4 )
Goodwill impairment charge, net of taxes(1)               124.7  
(Gain) loss on investment in Persol Holdings, net of taxes(2)   (24.6 )   (11.6 )   (49.8 )   21.8  
(Gain) loss on sale of assets, net of taxes(3)       0.1         (23.9 )
Customer dispute, net of taxes(4)       6.7         6.7  
Restructuring charges, net of taxes(5)   (0.1 )   (0.1 )   (0.1 )   6.2  
Adjusted net earnings   $ 10.1     $ 11.8     $ 34.5     $ 40.1  
                 
    Third Quarter   September Year to Date
    2021   2020   2021   2020
    Per Share   Per Share
Net earnings (loss)   $ 0.87     $ 0.42     $ 2.12     $ (2.43 )
Goodwill impairment charge, net of taxes(1)               3.18  
(Gain) loss on investment in Persol Holdings, net of taxes(2)   (0.62 )   (0.29 )   (1.25 )   0.56  
Gain on sale of assets, net of taxes(3)               (0.61 )
Customer dispute, net of taxes(4)       0.17         0.17  
Restructuring charges, net of taxes(5)               0.16  
Adjusted net earnings   $ 0.25     $ 0.29     $ 0.86     $ 1.02  

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)
               
  Third Quarter   September Year to Date
  2021   2020   2021   2020
Net earnings (loss) $ 34.8     $ 16.7     $ 84.4     $ (95.4 )
Other (income) expense, net 0.3     0.7     4.0     (3.6 )
Income tax expense (benefit) 11.1     (1.2 )   19.0     (36.5 )
Depreciation and amortization 8.4     6.2     23.2     18.2  
EBITDA 54.6     22.4     130.6     (117.3 )
Equity in net (earnings) loss of affiliate (1.7 )   (1.8 )   (2.3 )   1.0  
Goodwill impairment charge(1)             147.7  
(Gain) loss on investment in Persol Holdings(2) (35.5 )   (16.8 )   (71.8 )   31.4  
Gain on sale of assets(3)             (32.1 )
Customer dispute(4)     9.5         9.5  
Restructuring(5) (0.1 )   (0.1 )   (0.1 )   8.4  
Adjusted EBITDA $ 17.3     $ 13.2     $ 56.4     $ 48.6  
Adjusted EBITDA margin 1.4 %   1.3 %   1.5 %   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 and the 2020 restructuring charges, 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 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 2020 and subsequent adjustments in 2021 represent severance costs and lease terminations in preparation for the new operating model adopted in the third quarter of 2020.

Kelly® Reports Third-Quarter 2021 Earnings and Announces Dividend


Kelly® Reports Third-Quarter 2021 Earnings and Announces Dividend

 

Financial Highlights

  • Q3 revenue up 15.1%; 14.5% in constant currency
  • Q3 operating earnings of $9.0 million; up from a loss a year ago and up 25.9% on an adjusted basis
  • Q3 earnings per share of $0.87 up from $0.42 a year ago; adjusted EPS of $0.25 compared to $0.29

TROY, Mich., Nov. 10, 2021 (GLOBE NEWSWIRE) — Kelly® (Nasdaq: KELYAKELYB), a leading specialty talent solutions provider, today announced results for the third quarter of 2021.

Peter Quigley, president and chief executive officer, announced revenue for the third quarter of 2021 totaled $1.2 billion, a 15.1% increase compared to the corresponding quarter of 2020. Revenue improved year-over-year in the quarter reflecting increased customer demand compared to the COVID-19-impacted prior year period.

Earnings from operations in the third quarter of 2021 totaled $9.0 million, compared to a loss of $2.4 million reported in the third quarter of 2020. Included in the third quarter of 2020 was a $9.5 million charge related to a customer dispute in Mexico. On an adjusted basis, earnings from operations improved 25.9%.

Diluted earnings per share in the third quarter of 2021 were $0.87 compared to $0.42 per share in the third quarter of 2020. Included in the earnings per share is a non-cash gain per share, net of tax, on Kelly’s investment in Persol Holdings common stock of $0.62 in the third quarter of 2021 and $0.29 in the third quarter of 2020. On an adjusted basis, earnings per share were $0.25 in the third quarter of 2021 compared to $0.29 in the corresponding quarter of 2020.

“We’re pleased that all five of our specialty operating segments delivered organic year-over-year gains in the third quarter, contributing to solid revenue and GP dollar growth for the company,” said Quigley, who noted that Kelly has already begun taking actions to better leverage top-line growth heading into 2022. “Demand for our solutions is strong, and we’re finding innovative ways to connect talent and clients in a tight labor market. We’re confident that Kelly’s specialty strategy will continue to deliver top and bottom-line growth throughout the recovery and into the post-COVID environment.”

Kelly also reported that on November 10, its board of directors declared a dividend of $0.05 per share. The dividend is payable on December 8, 2021, to stockholders of record as of the close of business on November 24, 2021.

In conjunction with its third-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 November 10 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)
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A recording of the conference call will be available after 2:30 p.m. ET on November 10, 2021, at (866) 207-1041 (toll-free) and (402) 970-0847 (caller-paid). The access code is 2025741#. 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 recent 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 nearly 370,000 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 2020 was $4.5 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     james.polehna@kellyservices.com

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED OCTOBER 3, 2021 AND SEPTEMBER 27, 2020
(UNAUDITED)
(In millions of dollars except per share data)
                %   CC %
    2021   2020   Change   Change   Change
                     
Revenue from services $ 1,195.4     $ 1,038.2     $ 157.2     15.1 %   14.5 %
                     
Cost of services   966.5       847.2       119.3     14.1      
                     
Gross profit   228.9       191.0       37.9     19.8     19.2  
                     
Selling, general and administrative expenses   219.9       193.4       26.5     13.7     13.2  
                     
Earnings (loss) from operations   9.0       (2.4 )     11.4     NM      
                     
Gain (loss) on investment in Persol Holdings   35.5       16.8       18.7     112.0      
                     
Other income (expense), net   (0.3 )     (0.7 )     0.4     50.1      
                     
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate   44.2       13.7       30.5     222.8      
                     
Income tax expense (benefit)   11.1       (1.2 )     12.3     NM      
                     
Net earnings (loss) before equity in net earnings (loss) of affiliate   33.1       14.9       18.2     122.4      
                     
Equity in net earnings (loss) of affiliate   1.7       1.8       (0.1 )   (3.6 )    
                     
Net earnings (loss) $ 34.8     $ 16.7     $ 18.1     108.9      
                     
Basic earnings (loss) per share $ 0.87     $ 0.42     $ 0.45     107.1      
Diluted earnings (loss) per share $ 0.87     $ 0.42     $ 0.45     107.1      
                     
                     
STATISTICS:                    
                     
Permanent placement revenue (included in revenue from services) $ 19.7     $ 9.1     $ 10.6     118.0 %   116.6 %
                     
Gross profit rate   19.2 %     18.4 %     0.8  pts.        
                     
Conversion rate   3.9 %     (1.3 )%     5.2  pts.        
                     
Adjusted EBITDA $ 17.3     $ 13.2     $ 4.1          
Adjusted EBITDA margin   1.4 %     1.3 %     0.1  pts.        
                     
Effective income tax rate   25.2 %     (8.5 )%     33.7  pts.        
                     
Average number of shares outstanding (millions):                    
Basic   39.4       39.3                
Diluted   39.5       39.4                

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 39 WEEKS ENDED OCTOBER 3, 2021 AND SEPTEMBER 27, 2020
(UNAUDITED)
(In millions of dollars except per share data)
                %   CC %
    2021   2020   Change   Change   Change
                     
Revenue from services $ 3,659.4     $ 3,274.6     $ 384.8     11.8 %   10.3 %
                     
Cost of services   2,986.2       2,671.1       315.1     11.8      
                     
Gross profit   673.2       603.5       69.7     11.5     10.1  
                     
Selling, general and administrative expenses   639.9       591.0       48.9     8.3     7.0  
                     
Goodwill impairment charge         147.7       (147.7 )   NM      
                       
Gain on sale of assets         (32.1 )     32.1     NM      
                       
Earnings (loss) from operations   33.3       (103.1 )     136.4     NM      
                       
Gain (loss) on investment in Persol Holdings   71.8       (31.4 )     103.2     NM      
                     
Other income (expense), net   (4.0 )     3.6       (7.6 )   (211.5 )    
                     
Earnings (loss) before taxes and equity in net earnings (loss) of affiliate   101.1       (130.9 )     232.0     NM      
                       
Income tax expense (benefit)   19.0       (36.5 )     55.5     152.0      
                       
Net earnings (loss) before equity in net earnings (loss) of affiliate   82.1       (94.4 )     176.5     NM      
                       
Equity in net earnings (loss) of affiliate   2.3       (1.0 )     3.3     NM      
                       
Net earnings (loss) $ 84.4     $ (95.4 )   $ 179.8     NM      
                       
Basic earnings (loss) per share $ 2.12     $ (2.43 )   $ 4.55     NM      
Diluted earnings (loss) per share $ 2.12     $ (2.43 )   $ 4.55     NM      
                     
                     
STATISTICS:                    
                     
Permanent placement revenue (included in revenue from services) $ 54.3     $ 28.9     $ 25.4     87.8 %   84.5 %
                     
Gross profit rate   18.4 %     18.4 %      pts.        
                     
Conversion rate   4.9 %     (17.1 )%     22.0  pts.        
                     
Adjusted EBITDA $ 56.4     $ 48.6     $ 7.8          
Adjusted EBITDA margin   1.5 %     1.5 %      pts.        
                     
Effective income tax rate   18.8 %     27.9 %     (9.1 ) 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)
                   
    Third Quarter
                   
              %   CC %
    2021     2020   Change   Change
Professional & Industrial                  
Revenue from services $ 452.6     $ 446.5     1.4 %   1.0 %
Gross profit   76.6       77.1     (0.5 )   (0.9 )
SG&A expenses excluding restructuring charges   69.4       65.4     6.2     5.9  
Restructuring charges         (0.1 )   NM     NM  
Total SG&A expenses   69.4       65.3     6.2     5.9  
Earnings (loss) from operations   7.2       11.8     (38.1 )      
Earnings (loss) from operations excluding restructuring charges   7.2       11.7     (38.1 )      
                       
Gross profit rate   16.9 %     17.3 %   (0.4 ) pts.      
                       
Science, Engineering & Technology                      
Revenue from services $ 306.2     $ 244.0     25.5 %   25.3 %
Gross profit   68.1       50.7     34.5     34.4  
SG&A expenses excluding restructuring charges   48.4       31.3     54.8     54.6  
Restructuring charges             NM     NM  
Total SG&A expenses   48.4       31.3     54.8     54.6  
Earnings (loss) from operations   19.7       19.4     1.7      
Earnings (loss) from operations excluding restructuring charges   19.7       19.4     1.7      
                   
Gross profit rate   22.3 %     20.8 %   1.5  pts.    
                   
Education                  
Revenue from services $ 66.6     $ 27.5     142.1 %   142.1 %
Gross profit   10.0       4.1     139.7     139.7  
SG&A expenses excluding restructuring charges   17.0       11.6     45.9     45.9  
Restructuring charges             NM     NM  
Total SG&A expenses   17.0       11.6     46.1     46.1  
Earnings (loss) from operations   (7.0 )     (7.5 )   6.6      
Earnings (loss) from operations excluding restructuring charges   (7.0 )     (7.5 )   6.7      
                   
Gross profit rate   15.1 %     15.2 %   (0.1 ) pts.    
                   
Outsourcing & Consulting                  
Revenue from services $ 113.4     $ 87.9     29.1 %   28.6 %
Gross profit   37.3       29.1     27.9     26.9  
SG&A expenses excluding restructuring charges   30.7       25.4     20.5     19.8  
Restructuring charges             NM     NM  
Total SG&A expenses   30.7       25.4     20.5     19.7  
Earnings (loss) from operations   6.6       3.7     79.1        
Earnings (loss) from operations excluding restructuring charges   6.6       3.7     78.7        
                       
Gross profit rate   32.8 %     33.1 %   (0.3 ) pts.      
                       
International                      
Revenue from services $ 256.8     $ 232.4     10.5 %   8.8 %
Gross profit   36.9       30.0     22.7     21.0  
SG&A expenses excluding restructuring charges   34.5       39.9     (13.6 )   (14.8 )
Restructuring charges             NM     NM  
Total SG&A expenses   34.5       39.9     (13.6 )   (14.8 )
Earnings (loss) from operations   2.4       (9.9 )   NM        
Earnings (loss) from operations excluding restructuring charges   2.4       (9.9 )   NM      
                   
Gross profit rate   14.4 %     12.9 %   1.5  pts.    

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)
                   
    September Year to Date
                   
              %   CC %
    2021     2020   Change   Change
Professional & Industrial                  
Revenue from services $ 1,386.7     $ 1,346.7     3.0 %   2.5 %
Gross profit   227.7       241.1     (5.5 )   (6.0 )
SG&A expenses excluding restructuring charges   207.8       206.1     0.8     0.5  
Restructuring charges         4.3     NM     NM  
Total SG&A expenses   207.8       210.4     (1.2 )   (1.6 )
Earnings (loss) from operations   19.9       30.7     (34.9 )    
Earnings (loss) from operations excluding restructuring charges   19.9       35.0     (43.0 )    
                   
Gross profit rate   16.4 %     17.9 %   (1.5 ) pts.    
                   
Science, Engineering & Technology                  
Revenue from services $ 859.1     $ 761.5     12.8 %   12.6 %
Gross profit   187.8       156.0     20.4     20.2  
SG&A expenses excluding restructuring charges   131.0       98.6     32.9     32.7  
Restructuring charges         0.5     NM     NM  
Total SG&A expenses   131.0       99.1     32.2     32.0  
Earnings (loss) from operations   56.8       56.9     (0.2 )      
Earnings (loss) from operations excluding restructuring charges   56.8       57.4     (1.1 )      
                       
Gross profit rate   21.9 %     20.5 %   1.4  pts.      
                       
Education                      
Revenue from services $ 284.1     $ 195.1     45.6 %   45.6 %
Gross profit   44.0       28.8     52.5     52.5  
SG&A expenses excluding restructuring charges   46.5       36.9     26.0     26.0  
Restructuring charges         0.8     NM     NM  
Total SG&A expenses   46.5       37.7     23.1     23.1  
Earnings (loss) from operations   (2.5 )     (8.9 )   72.1      
Earnings (loss) from operations excluding restructuring charges   (2.5 )     (8.1 )   69.0      
                   
Gross profit rate   15.5 %     14.8 %   0.7  pts.    
                   
Outsourcing & Consulting                  
Revenue from services $ 320.0     $ 261.0     22.6 %   21.2 %
Gross profit   103.4       87.1     18.7     16.3  
SG&A expenses excluding restructuring charges   89.2       79.1     12.7     10.9  
Restructuring charges             NM     NM  
Total SG&A expenses   89.2       79.1     12.6     10.8  
Earnings (loss) from operations   14.2       8.0     79.0        
Earnings (loss) from operations excluding restructuring charges   14.2       8.0     77.5        
                       
Gross profit rate   32.3 %     33.4 %   (1.1 ) pts.      
                       
International                      
Revenue from services $ 810.1     $ 710.6     14.0 %   9.0 %
Gross profit   110.3       90.5     21.8     16.3  
SG&A expenses excluding restructuring charges   102.2       100.3     1.8     (2.8 )
Restructuring charges         1.1     NM     NM  
Total SG&A expenses   102.2       101.4     0.7     (3.9 )
Earnings (loss) from operations   8.1       (10.9 )   NM        
Earnings (loss) from operations excluding restructuring charges   8.1       (9.8 )   NM        
                   
Gross profit rate   13.6 %     12.7 %   0.9  pts.    

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions of dollars)
             
    October 3, 2021   January 3, 2021   September 27, 2020
Current Assets            
Cash and equivalents $ 43.5   $ 223.0   $ 248.2  
Trade accounts receivable, less allowances of            
$12.3, $13.3, and $11.4, respectively   1,423.9     1,265.2     1,111.4  
Prepaid expenses and other current assets   71.0     61.4     71.4  
Total current assets   1,538.4     1,549.6     1,431.0  
             
Noncurrent Assets            
Property and equipment, net   36.1     41.0     40.8  
Operating lease right-of-use assets   79.3     83.2     84.0  
Deferred taxes   304.0     282.0     273.3  
Goodwill, net   114.8     3.5      
Investment in Persol Holdings   222.6     164.2     145.8  
Investment in equity affiliate   122.0     118.5     115.6  
Other assets   386.3     319.9     301.2  
Total noncurrent assets   1,265.1     1,012.3     960.7  
             
Total Assets $ 2,803.5   $ 2,561.9   $ 2,391.7  
             
Current Liabilities            
Short-term borrowings $   $ 0.3   $ 0.5  
Accounts payable and accrued liabilities   645.2     536.8     458.4  
Operating lease liabilities   18.4     19.6     19.5  
Accrued payroll and related taxes   334.9     293.0     240.7  
Accrued workers’ compensation and other claims   21.1     22.7     25.0  
Income and other taxes   58.4     53.2     52.4  
Total current liabilities   1,078.0     925.6     796.5  
             
Noncurrent Liabilities            
Operating lease liabilities   64.1     67.5     68.1  
Accrued payroll and related taxes   58.2     58.5     75.7  
Accrued workers’ compensation and other claims   39.1     42.2     44.4  
Accrued retirement benefits   213.5     205.8     188.2  
Other long-term liabilities   76.5     59.3     52.7  
Total noncurrent liabilities   451.4     433.3     429.1  
             
Stockholders’ Equity            
Common stock   40.1     40.1     40.1  
Treasury stock   (15.2 )   (17.1 )   (17.2 )
Paid-in capital   23.2     21.3     20.6  
Earnings invested in the business   1,245.3     1,162.9     1,139.5  
Accumulated other comprehensive income (loss)   (19.3 )   (4.2 )   (16.9 )
Total stockholders’ equity   1,274.1     1,203.0     1,166.1  
             
Total Liabilities and Stockholders’ Equity $ 2,803.5   $ 2,561.9   $ 2,391.7  
             
STATISTICS:            
Working Capital $ 460.4   $ 624.0   $ 634.5  
Current Ratio   1.4     1.7     1.8  
Debt-to-capital %   0.0 %   0.0 %   0.0 %
Global Days Sales Outstanding   63     64     61  
Year-to-Date Free Cash Flow $ 23.5   $ 170.5   $ 204.2  

        

 

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 39 WEEKS ENDED OCTOBER 3, 2021 AND SEPTEMBER 27, 2020
(UNAUDITED)
(In millions of dollars)
    2021   2020
Cash flows from operating activities:        
Net earnings (loss) $ 84.4   $ (95.4 )
Adjustments to reconcile net earnings (loss) to net cash from operating activities:        
Goodwill impairment charge       147.7  
Deferred income taxes on goodwill impairment charge       (23.0 )
Depreciation and amortization   22.0     18.0  
Operating lease asset amortization   16.0     15.9  
Provision for credit losses and sales allowances   0.8     10.7  
Stock-based compensation   4.0     2.9  
(Gain) loss on investment in Persol Holdings   (71.8 )   31.4  
Gain on sale of assets       (32.1 )
Equity in net (earnings) loss of PersolKelly Pte. Ltd.   (2.3 )   1.0  
Other, net   4.6     1.8  
Changes in operating assets and liabilities, net of acquisitions   (26.7 )   137.6  
         
Net cash from operating activities   31.0     216.5  
         
Cash flows from investing activities:        
Capital expenditures   (7.5 )   (12.3 )
Proceeds from sale of assets       55.5  
Acquisition of companies, net of cash received   (213.0 )   (36.4 )
Proceeds from company-owned life insurance   10.4     2.3  
Proceeds from sale of Brazil, net of cash disposed       1.2  
Proceeds from loans with equity affiliate   5.8      
Proceeds from (investment in) equity securities   5.0     (0.2 )
Other investing activities   0.9     0.2  
         
Net cash (used in) from investing activities   (198.4 )   10.3  
         
Cash flows from financing activities:        
Net change in short-term borrowings   (0.2 )   (1.5 )
Financing lease payments   (1.3 )   (1.0 )
Dividend payments   (2.0 )   (3.0 )
Payments of tax withholding for stock awards   (0.6 )   (1.2 )
Contingent consideration payments   (1.6 )    
Other financing activities       (0.1 )
         
Net cash used in financing activities   (5.7 )   (6.8 )
         
Effect of exchange rates on cash, cash equivalents and restricted cash   (3.9 )   3.4  
         
Net change in cash, cash equivalents and restricted cash   (177.0 )   223.4  
Cash, cash equivalents and restricted cash at beginning of period   228.1     31.0  
         
Cash, cash equivalents and restricted cash at end of period $ 51.1   $ 254.4  

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES BY GEOGRAPHY
(UNAUDITED)
(In millions of dollars)
                 
    Third Quarter
                 
            %   CC %
    2021   2020   Change   Change
                 
Americas                
United States $ 851.7   $ 740.6     15.0 %   15.0 %
Canada   43.3     30.3     42.8     35.1  
Puerto Rico   25.5     18.4     39.2     39.2  
Mexico   14.4     27.4     (47.4 )   (52.7 )
Brazil       1.8     NM     NM  
Total Americas Region   934.9     818.5     14.2     13.8  
                 
Europe                
France   56.3     48.8     15.4     14.3  
Switzerland   54.5     49.6     10.0     9.8  
Portugal   36.6     31.7     15.6     14.6  
Russia   33.0     27.2     21.3     21.1  
Italy   18.5     14.5     27.5     26.4  
United Kingdom   17.2     16.4     4.5     (2.1 )
Germany   9.0     7.0     28.2     27.3  
Ireland   7.4     4.9     49.9     48.8  
Other   17.3     12.0     44.4     43.0  
Total Europe Region   249.8     212.1     17.8     16.6  
                 
Total Asia-Pacific Region   10.7     7.6     41.4     39.3  
                 
Total Kelly Services, Inc. $ 1,195.4   $ 1,038.2     15.1 %   14.5 %
                 

        

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES BY GEOGRAPHY
(UNAUDITED)
(In millions of dollars)
                 
    September Year to Date
                 
            %   CC %
    2021   2020   Change   Change
                 
Americas                
United States $ 2,604.8   $ 2,369.2     9.9 %   9.9 %
Canada   116.9     88.7     31.8     21.9  
Mexico   82.1     78.6     4.5     (1.8 )
Puerto Rico   76.6     56.1     36.6     36.6  
Brazil       17.0     NM     NM  
Total Americas Region   2,880.4     2,609.6     10.4     9.8  
                 
Europe                
France   168.1     141.2     19.0     11.9  
Switzerland   161.2     141.2     14.2     9.6  
Portugal   120.9     99.1     22.0     14.5  
Russia   99.3     88.6     12.1     17.5  
Italy   56.0     42.5     31.7     23.9  
United Kingdom   51.9     56.5     (8.2 )   (15.8 )
Germany   24.6     22.1     11.3     5.1  
Ireland   18.8     14.0     34.1     26.8  
Other   49.9     38.7     29.0     21.6  
Total Europe Region   750.7     643.9     16.6     11.6  
                 
Total Asia-Pacific Region   28.3     21.1     33.9     24.9  
                 
Total Kelly Services, Inc. $ 3,659.4   $ 3,274.6     11.8 %   10.3 %
                 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
THIRD QUARTER
(UNAUDITED)
(In millions of dollars)
       
  2021   2020
SG&A Expenses: As Reported   Restructuring(5)   Adjusted   Adjusted
Professional & Industrial $ 69.4     $     $ 69.4     $ 65.4  
Science, Engineering & Technology 48.4         48.4     31.3  
Education 17.0         17.0     11.6  
Outsourcing & Consulting 30.7         30.7     25.4  
International 34.5         34.5     30.4  
Corporate 19.9     0.1     20.0     19.9  
Total Company $ 219.9     $ 0.1     $ 220.0     $ 184.0  

 

  2021   2020
Earnings (loss) from Operations: As Reported   Restructuring(5)   Adjusted   Adjusted
Professional & Industrial $ 7.2     $     $ 7.2     $ 11.7  
Science, Engineering & Technology 19.7         19.7     19.4  
Education (7.0 )       (7.0 )   (7.5 )
Outsourcing & Consulting 6.6         6.6     3.7  
International 2.4         2.4     (0.4 )
Corporate (19.9 )   (0.1 )   (20.0 )   (19.9 )
Total Company $ 9.0     $ (0.1 )   $ 8.9     $ 7.0  

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
THIRD QUARTER
(UNAUDITED)
(In millions of dollars)
               
  2020
SG&A Expenses: As Reported   Customer Dispute(4)   Restructuring(5)   Adjusted
Professional & Industrial $ 65.3     $     $ 0.1     $ 65.4  
Science, Engineering & Technology 31.3             31.3  
Education 11.6             11.6  
Outsourcing & Consulting 25.4             25.4  
International 39.9     (9.5 )       30.4  
Corporate 19.9             19.9  
Total Company $ 193.4     $ (9.5 )   $ 0.1     $ 184.0  

 

  2020
Earnings (loss) from Operations: As Reported   Customer Dispute(4)   Restructuring(5)   Adjusted
Professional & Industrial $ 11.8     $     $ (0.1 )   $ 11.7  
Science, Engineering & Technology 19.4             19.4  
Education (7.5 )           (7.5 )
Outsourcing & Consulting 3.7             3.7  
International (9.9 )   9.5         (0.4 )
Corporate (19.9 )           (19.9 )
Total Company $ (2.4 )   $ 9.5     $ (0.1 )   $ 7.0  

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
SEPTEMBER YEAR TO DATE
(UNAUDITED)
(In millions of dollars)
               
  2021   2020
SG&A Expenses: As Reported   Restructuring(5)   Adjusted   Adjusted
Professional & Industrial $ 207.8     $     $ 207.8     $ 206.1  
Science, Engineering & Technology 131.0         131.0     98.6  
Education 46.5         46.5     36.9  
Outsourcing & Consulting 89.2         89.2     79.1  
International 102.2         102.2     90.8  
Corporate 63.2     0.1     63.3     61.6  
Total Company $ 639.9     $ 0.1     $ 640.0     $ 573.1  

 

 

  2021   2020
Earnings (loss) from Operations: As Reported   Restructuring(5)   Adjusted   Adjusted
Professional & Industrial $ 19.9     $     $ 19.9     $ 35.0  
Science, Engineering & Technology 56.8         56.8     57.4  
Education (2.5 )       (2.5 )   (8.1 )
Outsourcing & Consulting 14.2         14.2     8.0  
International 8.1         8.1     (0.3 )
Corporate (63.2 )   (0.1 )   (63.3 )   (61.6 )
Total Company $ 33.3     $ (0.1 )   $ 33.2     $ 30.4  

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
SEPTEMBER YEAR TO DATE
(UNAUDITED)
(In millions of dollars)
 
  2020
SG&A Expenses: As Reported   Customer Dispute(4)   Restructuring(5)   Adjusted
Professional & Industrial $ 210.4     $     $ (4.3 )   $ 206.1  
Science, Engineering & Technology 99.1         (0.5 )   98.6  
Education 37.7         (0.8 )   36.9  
Outsourcing & Consulting 79.1             79.1  
International 101.4     (9.5 )   (1.1 )   90.8  
Corporate 63.3         (1.7 )   61.6  
Total Company $ 591.0     $ (9.5 )   $ (8.4 )   $ 573.1  

 

  2020
Earnings (loss) from Operations: As Reported   Goodwill impairment(1)   Gain on sale
of assets(3)
  Customer Dispute(4)   Restructuring(5)   Adjusted
Professional & Industrial $ 30.7     $     $     $     $ 4.3     $ 35.0  
Science, Engineering & Technology 56.9                 0.5     57.4  
Education (8.9 )               0.8     (8.1 )
Outsourcing & Consulting 8.0                     8.0  
International (10.9 )           9.5     1.1     (0.3 )
Corporate (178.9 )   147.7     (32.1 )       1.7     (61.6 )
Total Company $ (103.1 )   $ 147.7     $ (32.1 )   $ 9.5     $ 8.4     $ 30.4  

 

 

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)
                 
                 
    Third Quarter   September Year to Date
    2021   2020   2021   2020
Income tax expense (benefit)   $ 11.1     $ (1.2 )   $ 19.0     $ (36.5 )
Taxes on goodwill impairment charge(1)               23.0  
Taxes on investment in Persol Holdings(2)   (10.9 )   (5.2 )   (22.0 )   9.6  
Taxes on gain on sale of assets(3)               (8.1 )
Taxes on customer dispute(4)       2.8         2.8  
Taxes on restructuring charges(5)               2.2  
Adjusted income tax expense (benefit)   $ 0.2     $ (3.6 )   $ (3.0 )   $ (7.0 )
                 
    Third Quarter   September Year to Date
    2021   2020   2021   2020
Net earnings (loss)   $ 34.8     $ 16.7     $ 84.4     $ (95.4 )
Goodwill impairment charge, net of taxes(1)               124.7  
(Gain) loss on investment in Persol Holdings, net of taxes(2)   (24.6 )   (11.6 )   (49.8 )   21.8  
(Gain) loss on sale of assets, net of taxes(3)       0.1         (23.9 )
Customer dispute, net of taxes(4)       6.7         6.7  
Restructuring charges, net of taxes(5)   (0.1 )   (0.1 )   (0.1 )   6.2  
Adjusted net earnings   $ 10.1     $ 11.8     $ 34.5     $ 40.1  
                 
    Third Quarter   September Year to Date
    2021   2020   2021   2020
    Per Share   Per Share
Net earnings (loss)   $ 0.87     $ 0.42     $ 2.12     $ (2.43 )
Goodwill impairment charge, net of taxes(1)               3.18  
(Gain) loss on investment in Persol Holdings, net of taxes(2)   (0.62 )   (0.29 )   (1.25 )   0.56  
Gain on sale of assets, net of taxes(3)               (0.61 )
Customer dispute, net of taxes(4)       0.17         0.17  
Restructuring charges, net of taxes(5)               0.16  
Adjusted net earnings   $ 0.25     $ 0.29     $ 0.86     $ 1.02  

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)
               
  Third Quarter   September Year to Date
  2021   2020   2021   2020
Net earnings (loss) $ 34.8     $ 16.7     $ 84.4     $ (95.4 )
Other (income) expense, net 0.3     0.7     4.0     (3.6 )
Income tax expense (benefit) 11.1     (1.2 )   19.0     (36.5 )
Depreciation and amortization 8.4     6.2     23.2     18.2  
EBITDA 54.6     22.4     130.6     (117.3 )
Equity in net (earnings) loss of affiliate (1.7 )   (1.8 )   (2.3 )   1.0  
Goodwill impairment charge(1)             147.7  
(Gain) loss on investment in Persol Holdings(2) (35.5 )   (16.8 )   (71.8 )   31.4  
Gain on sale of assets(3)             (32.1 )
Customer dispute(4)     9.5         9.5  
Restructuring(5) (0.1 )   (0.1 )   (0.1 )   8.4  
Adjusted EBITDA $ 17.3     $ 13.2     $ 56.4     $ 48.6  
Adjusted EBITDA margin 1.4 %   1.3 %   1.5 %   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 and the 2020 restructuring charges, 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 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 2020 and subsequent adjustments in 2021 represent severance costs and lease terminations in preparation for the new operating model adopted in the third quarter of 2020.

Release – CoreCivic Reports Third Quarter 2021 Financial Results


CoreCivic Reports Third Quarter 2021 Financial Results

 

BRENTWOOD, Tenn., Nov. 08, 2021 (GLOBE NEWSWIRE) — CoreCivic, Inc. (NYSE: CXW) (the Company) announced today its financial results for the third quarter of 2021.

Financial Highlights – Third Quarter 2021

  • Total revenue of $471.2 million
    • CoreCivic Safety revenue of $431.5 million
    • CoreCivic Community revenue of $25.5 million
    • CoreCivic Properties revenue of $13.9 million
  • Diluted earnings per share of $0.25
  • Adjusted diluted EPS of $0.28
  • Normalized FFO per diluted share of $0.48
  • Adjusted EBITDA of $100.9 million
  • Issuance of $225.0 million of Unsecured Senior Notes
  • Leverage decreased to 2.7x

Damon T. Hininger, CoreCivic’s President and Chief Executive Officer, said, “Our cash flow generation remains strong despite the ongoing global pandemic and the unique challenges presented by the current employment market. We continue to execute on our capital allocation strategy with a priority of reducing debt, and enhancing our overall capital structure. During the third quarter we sufficiently reduced debt to fall within the high end of our targeted leverage ratio, and continue to make progress in obtaining the clarity needed to move to the next phase of our capital allocation strategy. Our capital allocation strategy continues to benefit our cost of borrowing, as shown with our recent $225 million unsecured bond issuance which priced nearly 100 basis points lower than the April 2021 issuance.

Hininger continued, “Our business is very durable, and continues to generate cash flow even during these unprecedented disruptions to the economy and criminal justice system. This resiliency is due to the essential nature of our facilities and services in our Safety and Community segments, further enhanced by the stability of our Properties segment, all supported by payments from highly rated federal, state, and local government agencies.”

Third Quarter 2021 Financial Results Compared With Third Quarter 2020

Net income attributable to common stockholders in the third quarter of 2021 totaled $30.0 million, or $0.25 per diluted share, compared with net income attributable to common stockholders generated in the third quarter of 2020 of $26.7 million, or $0.22 per diluted share. Adjusted for special items, net income in the third quarter of 2021 was $33.7 million, or $0.28 per diluted share (Adjusted Diluted EPS), compared with adjusted net income in the third quarter of 2020 of $34.1 million, or $0.28 per diluted share. Special items for each period are presented in detail in the calculation of Adjusted Diluted EPS 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.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was $95.7 million in the third quarter of 2021, compared with $87.8 million in the third quarter of 2020. Adjusted EBITDA, which excludes the special items referred to above, was $100.9 million in the third quarter of 2021, compared with $94.6 million in the third quarter of 2020. Adjusted EBITDA increased from the prior year quarter despite a $7.3 million reduction in facility EBITDA attributable to the 42 properties sold in the fourth quarter of 2020 and the five additional non-core real estate assets sold in the second quarter of 2021.  

Funds From Operations (FFO) was $54.9 million, or $0.45 per diluted share, in the third quarter of 2021, compared to $53.4 million, or $0.44 per diluted share, in the third quarter of 2020. Normalized FFO, which excludes the special items referred to above, was $58.6 million, or $0.48 per diluted share, in the third quarter of 2021, compared with $62.3 million, or $0.52 per diluted share, in the third 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

Notes Offering and Debt Reduction.   On September 29, 2021, we completed an underwritten registered tack-on offering of $225.0 million aggregate principal amount of 8.25% senior unsecured notes due 2026 (the “Additional Notes”) at an issue price of 102.25% of their aggregate principal amount, plus accrued interest from the April 14, 2021 issue date for the $450.0 million aggregate principal amount of 8.25% senior unsecured notes due 2026 (the “Original Notes”). The Additional Notes have an effective yield to maturity of 7.65%, nearly 100 basis points below the effective yield of the Original Notes.

We have made substantial progress in reducing debt, repaying $187.5 million of debt during the third quarter of 2021, net of the change in cash. During the third quarter of 2021, we fully repaid the $112.0 million outstanding balance on our revolving credit facility, which remains undrawn. Including the repayments of mortgage notes associated with the sale of non-core assets, we have reduced our net debt balance by over $500.0 million during the nine months ended September 30, 2021. Subsequent to quarter-end, we repaid $90.0 million, or approximately 40%, of the outstanding balance on our Term Loan B using cash on hand. Using the trailing twelve months ended September 30, 2021, our leverage, or net debt to Adjusted EBITDA, was 2.7x, falling within the high end of our targeted leverage of 2.25x to 2.75x, and down from 4.0x using the trailing twelve months ended September 30, 2020.

New Lease Agreement with the State of New Mexico at the Northwest New Mexico Correctional Center. On September 21, 2021, we entered into a new three-year lease agreement with the State of New Mexico at the Company’s 596-bed Northwest New Mexico Correctional Center. We previously operated the Northwest New Mexico Correctional Center under a contract with New Mexico and transitioned facility operations to the New Mexico Corrections Department when the new lease agreement commenced on November 1, 2021. We will retain responsibility for facility maintenance throughout the term of the lease. The new lease agreement includes automatic extension options that could extend the term of the lease through October 31, 2041.

Financial Guidance

At this time we are not providing 2021 financial guidance because of uncertainties associated with COVID-19, including a resurgence caused by the Delta variant, as well as uncertainties associated with the application of the administration’s various executive actions and policies related to immigration and criminal justice. We currently expect to provide full year 2022 financial guidance in February 2022, when we expect to report our financial results for the fourth quarter and full year 2021.   

Supplemental Financial Information and Investor Presentations

We have made available on our website supplemental financial information and other data for the third quarter of 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 fourth quarter of 2021. Written materials used in the investor presentations will also be available on our website beginning on or about November 15, 2021. 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 Tuesday, November 9, 2021, 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 800-437-2398 in the U.S. and Canada, including the confirmation passcode 1667596. 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 1:00 p.m. central time (2:00 p.m. eastern time) on November 9, 2021, through 1:00 p.m. central time (2:00 p.m. eastern time) on November 17, 2021. 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 1667596.

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, increases in costs of operations, 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 our ability to successfully integrate the operations of our completed acquisitions 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 September 30,
2021
  December 31,
2020
       
Cash and cash equivalents $ 455,544     $ 113,219  
Restricted cash   11,134       23,549  
Accounts receivable, net of credit loss reserve of $7,338 and $6,103,  respectively   228,889       267,705  
Prepaid expenses and other current assets   33,875       33,243  
Assets held for sale         279,406  
Total current assets   729,442       717,122  
Real estate and related assets:      
Property and equipment, net of accumulated depreciation of $1,631,521 and $1,559,388, respectively   2,295,570       2,350,272  
Other real estate assets   220,733       228,243  
Goodwill   4,844       5,902  
Non-current deferred tax assets         11,113  
Other assets   371,388       396,663  
       
Total assets $ 3,621,977     $ 3,709,315  
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
       
Accounts payable and accrued expenses $ 353,678     $ 274,318  
Current portion of long-term debt   33,685       39,087  
Total current liabilities   387,363       313,405  
       
Long-term debt, net   1,586,363       1,747,664  
Deferred revenue   28,793       18,336  
Non-current deferred tax liabilities   82,736        
Other liabilities   197,364       216,468  
       
Total liabilities   2,282,619       2,295,873  
       
Commitments and contingencies      
       
Preferred stock ? $0.01 par value; 50,000 shares authorized; none issued and outstanding at September 30, 2021, and December 31, 2020, respectively          
Common stock ? $0.01 par value; 300,000 shares authorized; 120,285 and 119,638 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively   1,203       1,196  
Additional paid-in capital   1,864,861       1,835,494  
Accumulated deficit   (526,706 )     (446,519 )
Total stockholders’ equity   1,339,358       1,390,171  
Non-controlling interest – operating partnership         23,271  
Total equity   1,339,358       1,413,442  
       
Total liabilities and equity $ 3,621,977     $ 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
September 30,
  For the Nine Months Ended
September 30,
    2021       2020       2021       2020  
               
REVENUES:              
Safety $ 431,534     $ 420,032     $ 1,261,183     $ 1,281,914  
Community   25,535       24,067       74,122       80,670  
Properties   13,940       24,134       54,927       69,296  
Other   185       33       251       128  
    471,194       468,266       1,390,483       1,432,008  
               
EXPENSES:              
Operating              
Safety   314,283       319,335       926,990       973,811  
Community   20,427       21,095       61,551       67,745  
Properties   3,381       7,411       15,323       21,271  
Other   101       86       282       342  
Total operating expenses   338,192       347,927       1,004,146       1,063,169  
General and administrative   34,600       35,883       97,358       97,307  
Depreciation and amortization   33,991       37,865       100,787       114,436  
Contingent consideration for acquisition of businesses         620             620  
Shareholder litigation expense               54,295        
Asset impairments   5,177       805       9,351       13,058  
    411,960       423,100       1,265,937       1,288,590  
               
OTHER INCOME (EXPENSE):              
Interest expense, net   (20,653 )     (20,193 )     (62,303 )     (63,727 )
Expenses associated with debt repayments and refinancing transactions               (52,167 )      
Gain on sale of real estate assets, net         2,102       38,766       4,920  
Other income (expense)   49       11       (107 )     713  
               
INCOME BEFORE INCOME TAXES   38,630       27,086       48,735       85,324  
               
Income tax expense   (8,618 )     (369 )     (128,668 )     (3,183 )

NET INCOME (LOSS)
  30,012       26,717       (79,933 )    
82,141
 
               
Net income attributable to non-controlling interest                     (1,181 )
               
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS $ 30,012     $ 26,717     $ (79,933 )   $ 80,960  
               
               
BASIC EARNINGS (LOSS) PER SHARE $ 0.25     $ 0.22     $ (0.67 )   $ 0.68  
               
DILUTED EARNINGS (LOSS) PER SHARE $ 0.25     $ 0.22     $ (0.67 )   $ 0.68  
                               

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
September 30,
  For the Nine Months Ended
September 30,
    2021       2020       2021       2020  
               
Net income (loss) attributable to common stockholders $ 30,012     $ 26,717     $ (79,933 )   $ 80,960  
Non-controlling interest                     1,181  
Diluted net income (loss) attributable to common stockholders $ 30,012     $ 26,717     $ (79,933 )   $ 82,141  
               
Special items:              
Expenses associated with debt repayments and refinancing transactions               52,167        
Expenses associated with mergers and acquisitions                     338  
Expenses associated with COVID-19         2,820       2,434       10,985  
Expenses associated with changes in corporate tax structure         4,698             5,045  
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             620  
Gain on sale of real estate assets, net         (2,102 )     (38,766 )     (4,920 )
Shareholder litigation expense               54,295        
Asset impairments   5,177       805       9,351       13,058  
Income tax expense (benefit) for special items   (1,449 )     532       (19,694 )     532  
Adjusted net income $ 33,740     $ 34,090     $ 94,103     $ 110,884  
Weighted average common shares outstanding – basic   120,285       119,632       120,161       119,533  
Effect of dilutive securities:              
Restricted stock-based awards   641       6       397       25  
Non-controlling interest – operating partnership units   1,123       1,342       1,269       1,342  
Weighted average shares and assumed conversions – diluted   122,049       120,980       121,827       120,900  
Adjusted Earnings Per Diluted Share $ 0.28     $ 0.28     $ 0.77     $ 0.92  
                               

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
September 30,
  For the Nine Months Ended
September 30,
    2021       2020       2021       2020  
               
Net income (loss) $ 30,012     $ 26,717     $ (79,933 )   $ 82,141  
Depreciation and amortization of real estate assets   24,877       28,249       73,562       84,599  
Impairment of real estate assets               1,308       10,155  
Gain on sale of real estate assets, net         (2,102 )     (38,766 )     (4,920 )
Income tax expense for special items         532       9,291       532  
Funds From Operations $ 54,889     $ 53,396     $ (34,538 )   $ 172,507  
               
Expenses associated with debt repayments and refinancing transactions               52,167        
Expenses associated with mergers and acquisitions                     338  
Contingent consideration for acquisition of businesses         620             620  
Expenses associated with COVID-19         2,820       2,434       10,985  
Expenses associated with changes in corporate tax structure         4,698             5,045  
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   5,177       805       8,043       2,903  
Income tax benefit for special items   (1,449 )           (28,985 )      
Normalized Funds From Operations $ 58,617     $ 62,339     $ 167,665     $ 195,483  
               
Funds From Operations Per Diluted Share $ 0.45     $ 0.44     $ (0.28 )   $ 1.43  
Normalized Funds From Operations Per Diluted Share $ 0.48     $ 0.52     $ 1.38     $ 1.62  
                               

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
September 30,
  For the Nine Months Ended
September 30,
    2021     2020       2021       2020  
               
Net income (loss) $ 30,012   $ 26,717     $ (79,933 )   $ 82,141  
Interest expense   23,097     22,809       69,865       71,237  
Depreciation and amortization   33,991     37,865       100,787       114,436  
Income tax expense   8,618     369       128,668       3,183  
EBITDA $ 95,718   $ 87,760     $ 219,387     $ 270,997  
Expenses associated with debt repayments and refinancing transactions             52,167        
Expenses associated with mergers and acquisitions                   338  
Expenses associated with COVID-19       2,820       2,434       10,985  
Expenses associated with changes in corporate tax structure       4,698             5,045  
Contingent consideration for acquisition of businesses       620             620  
Gain on sale of real estate assets, net       (2,102 )     (38,766 )     (4,920 )
Shareholder litigation expense             54,295        
Asset impairments   5,177     805       9,351       13,058  
Adjusted EBITDA $ 100,895   $ 94,601     $ 298,868     $ 296,123  
                             

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, M&A activity, 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. Even though expenses associated with mergers and acquisitions may be recurring, the magnitude and timing fluctuate based on the timing and scope of M&A activity, and therefore, such expenses, which are not a necessary component of the ongoing operations of the Company, may not be comparable from period to period.

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

The GEO Group Inc. (GEO) – 10-Q Review

Tuesday, November 09, 2021

The GEO Group, Inc. (GEO)
10-Q Review

With over 94,000 beds owned, leased or managed across its business lines and serving over 260,000 people daily, GEO is a leading provider of mission critical real estate to its governmental partners. The Company is the first fully integrated equity REIT specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the U.S., Australia, South Africa, and the U.K.

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

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

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

    10-Q Overview. We were able to perform a deep dive into The GEO Group’s 10-Q which was released November 5th. And while nothing in the 10-Q changes our assessment of GEO and its business prospects, the 10-Q does provide some enhanced details we want to share.

    Populations The surge at the Southwest border and re-opening of the U.S.  Court system, which we have detailed in previous reports, are positively impacting results. Aggregate net increases in populations, transportation services and/or rates contributed an incremental $18.8 million of revenue primarily due to increased occupancies at the USMS and ICE facilities mainly due to the large increase in …



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) – A Debt Paydown Machine

Tuesday, November 09, 2021

CoreCivic, Inc. (CXW)
A Debt Paydown Machine

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.

    Hits Leverage Ratio Early. At quarter’s end, the leverage ratio was 2.7x, at the top end of the Company’s 2.25-2.75x goal, down from 3.2x at the end of 2Q21 and down from 4.0x at the end of 3Q20. The target was achieved roughly nine months sooner than we had expected highlighting not only management’s focus on reducing net debt, but the overall resiliency of the business model.

    Debt Reduction.  CoreCivic repaid $187.5 million of debt in 3Q21, net of the change in cash, including fully paying off its revolving credit facility, which remains undrawn. Subsequent to quarter’s end, the Company paid down $90 million, or 40%, of its Term B loan using cash on hand. CoreCivic ended the quarter with $455.5 million of cash …



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

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

The GEO Group, Inc. (GEO) – 10-Q Review

Tuesday, November 09, 2021

The GEO Group, Inc. (GEO)
10-Q Review

With over 94,000 beds owned, leased or managed across its business lines and serving over 260,000 people daily, GEO is a leading provider of mission critical real estate to its governmental partners. The Company is the first fully integrated equity REIT specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the U.S., Australia, South Africa, and the U.K.

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

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

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

    10-Q Overview. We were able to perform a deep dive into The GEO Group’s 10-Q which was released November 5th. And while nothing in the 10-Q changes our assessment of GEO and its business prospects, the 10-Q does provide some enhanced details we want to share.

    Populations The surge at the Southwest border and re-opening of the U.S.  Court system, which we have detailed in previous reports, are positively impacting results. Aggregate net increases in populations, transportation services and/or rates contributed an incremental $18.8 million of revenue primarily due to increased occupancies at the USMS and ICE facilities mainly due to the large increase in …



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 Reports Third Quarter 2021 Financial Results


CoreCivic Reports Third Quarter 2021 Financial Results

 

BRENTWOOD, Tenn., Nov. 08, 2021 (GLOBE NEWSWIRE) — CoreCivic, Inc. (NYSE: CXW) (the Company) announced today its financial results for the third quarter of 2021.

Financial Highlights – Third Quarter 2021

  • Total revenue of $471.2 million
    • CoreCivic Safety revenue of $431.5 million
    • CoreCivic Community revenue of $25.5 million
    • CoreCivic Properties revenue of $13.9 million
  • Diluted earnings per share of $0.25
  • Adjusted diluted EPS of $0.28
  • Normalized FFO per diluted share of $0.48
  • Adjusted EBITDA of $100.9 million
  • Issuance of $225.0 million of Unsecured Senior Notes
  • Leverage decreased to 2.7x

Damon T. Hininger, CoreCivic’s President and Chief Executive Officer, said, “Our cash flow generation remains strong despite the ongoing global pandemic and the unique challenges presented by the current employment market. We continue to execute on our capital allocation strategy with a priority of reducing debt, and enhancing our overall capital structure. During the third quarter we sufficiently reduced debt to fall within the high end of our targeted leverage ratio, and continue to make progress in obtaining the clarity needed to move to the next phase of our capital allocation strategy. Our capital allocation strategy continues to benefit our cost of borrowing, as shown with our recent $225 million unsecured bond issuance which priced nearly 100 basis points lower than the April 2021 issuance.

Hininger continued, “Our business is very durable, and continues to generate cash flow even during these unprecedented disruptions to the economy and criminal justice system. This resiliency is due to the essential nature of our facilities and services in our Safety and Community segments, further enhanced by the stability of our Properties segment, all supported by payments from highly rated federal, state, and local government agencies.”

Third Quarter 2021 Financial Results Compared With Third Quarter 2020

Net income attributable to common stockholders in the third quarter of 2021 totaled $30.0 million, or $0.25 per diluted share, compared with net income attributable to common stockholders generated in the third quarter of 2020 of $26.7 million, or $0.22 per diluted share. Adjusted for special items, net income in the third quarter of 2021 was $33.7 million, or $0.28 per diluted share (Adjusted Diluted EPS), compared with adjusted net income in the third quarter of 2020 of $34.1 million, or $0.28 per diluted share. Special items for each period are presented in detail in the calculation of Adjusted Diluted EPS 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.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was $95.7 million in the third quarter of 2021, compared with $87.8 million in the third quarter of 2020. Adjusted EBITDA, which excludes the special items referred to above, was $100.9 million in the third quarter of 2021, compared with $94.6 million in the third quarter of 2020. Adjusted EBITDA increased from the prior year quarter despite a $7.3 million reduction in facility EBITDA attributable to the 42 properties sold in the fourth quarter of 2020 and the five additional non-core real estate assets sold in the second quarter of 2021.  

Funds From Operations (FFO) was $54.9 million, or $0.45 per diluted share, in the third quarter of 2021, compared to $53.4 million, or $0.44 per diluted share, in the third quarter of 2020. Normalized FFO, which excludes the special items referred to above, was $58.6 million, or $0.48 per diluted share, in the third quarter of 2021, compared with $62.3 million, or $0.52 per diluted share, in the third 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

Notes Offering and Debt Reduction.   On September 29, 2021, we completed an underwritten registered tack-on offering of $225.0 million aggregate principal amount of 8.25% senior unsecured notes due 2026 (the “Additional Notes”) at an issue price of 102.25% of their aggregate principal amount, plus accrued interest from the April 14, 2021 issue date for the $450.0 million aggregate principal amount of 8.25% senior unsecured notes due 2026 (the “Original Notes”). The Additional Notes have an effective yield to maturity of 7.65%, nearly 100 basis points below the effective yield of the Original Notes.

We have made substantial progress in reducing debt, repaying $187.5 million of debt during the third quarter of 2021, net of the change in cash. During the third quarter of 2021, we fully repaid the $112.0 million outstanding balance on our revolving credit facility, which remains undrawn. Including the repayments of mortgage notes associated with the sale of non-core assets, we have reduced our net debt balance by over $500.0 million during the nine months ended September 30, 2021. Subsequent to quarter-end, we repaid $90.0 million, or approximately 40%, of the outstanding balance on our Term Loan B using cash on hand. Using the trailing twelve months ended September 30, 2021, our leverage, or net debt to Adjusted EBITDA, was 2.7x, falling within the high end of our targeted leverage of 2.25x to 2.75x, and down from 4.0x using the trailing twelve months ended September 30, 2020.

New Lease Agreement with the State of New Mexico at the Northwest New Mexico Correctional Center. On September 21, 2021, we entered into a new three-year lease agreement with the State of New Mexico at the Company’s 596-bed Northwest New Mexico Correctional Center. We previously operated the Northwest New Mexico Correctional Center under a contract with New Mexico and transitioned facility operations to the New Mexico Corrections Department when the new lease agreement commenced on November 1, 2021. We will retain responsibility for facility maintenance throughout the term of the lease. The new lease agreement includes automatic extension options that could extend the term of the lease through October 31, 2041.

Financial Guidance

At this time we are not providing 2021 financial guidance because of uncertainties associated with COVID-19, including a resurgence caused by the Delta variant, as well as uncertainties associated with the application of the administration’s various executive actions and policies related to immigration and criminal justice. We currently expect to provide full year 2022 financial guidance in February 2022, when we expect to report our financial results for the fourth quarter and full year 2021.   

Supplemental Financial Information and Investor Presentations

We have made available on our website supplemental financial information and other data for the third quarter of 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 fourth quarter of 2021. Written materials used in the investor presentations will also be available on our website beginning on or about November 15, 2021. 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 Tuesday, November 9, 2021, 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 800-437-2398 in the U.S. and Canada, including the confirmation passcode 1667596. 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 1:00 p.m. central time (2:00 p.m. eastern time) on November 9, 2021, through 1:00 p.m. central time (2:00 p.m. eastern time) on November 17, 2021. 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 1667596.

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, increases in costs of operations, 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 our ability to successfully integrate the operations of our completed acquisitions 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 September 30,
2021
  December 31,
2020
       
Cash and cash equivalents $ 455,544     $ 113,219  
Restricted cash   11,134       23,549  
Accounts receivable, net of credit loss reserve of $7,338 and $6,103,  respectively   228,889       267,705  
Prepaid expenses and other current assets   33,875       33,243  
Assets held for sale         279,406  
Total current assets   729,442       717,122  
Real estate and related assets:      
Property and equipment, net of accumulated depreciation of $1,631,521 and $1,559,388, respectively   2,295,570       2,350,272  
Other real estate assets   220,733       228,243  
Goodwill   4,844       5,902  
Non-current deferred tax assets         11,113  
Other assets   371,388       396,663  
       
Total assets $ 3,621,977     $ 3,709,315  
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
       
Accounts payable and accrued expenses $ 353,678     $ 274,318  
Current portion of long-term debt   33,685       39,087  
Total current liabilities   387,363       313,405  
       
Long-term debt, net   1,586,363       1,747,664  
Deferred revenue   28,793       18,336  
Non-current deferred tax liabilities   82,736        
Other liabilities   197,364       216,468  
       
Total liabilities   2,282,619       2,295,873  
       
Commitments and contingencies      
       
Preferred stock ? $0.01 par value; 50,000 shares authorized; none issued and outstanding at September 30, 2021, and December 31, 2020, respectively          
Common stock ? $0.01 par value; 300,000 shares authorized; 120,285 and 119,638 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively   1,203       1,196  
Additional paid-in capital   1,864,861       1,835,494  
Accumulated deficit   (526,706 )     (446,519 )
Total stockholders’ equity   1,339,358       1,390,171  
Non-controlling interest – operating partnership         23,271  
Total equity   1,339,358       1,413,442  
       
Total liabilities and equity $ 3,621,977     $ 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
September 30,
  For the Nine Months Ended
September 30,
    2021       2020       2021       2020  
               
REVENUES:              
Safety $ 431,534     $ 420,032     $ 1,261,183     $ 1,281,914  
Community   25,535       24,067       74,122       80,670  
Properties   13,940       24,134       54,927       69,296  
Other   185       33       251       128  
    471,194       468,266       1,390,483       1,432,008  
               
EXPENSES:              
Operating              
Safety   314,283       319,335       926,990       973,811  
Community   20,427       21,095       61,551       67,745  
Properties   3,381       7,411       15,323       21,271  
Other   101       86       282       342  
Total operating expenses   338,192       347,927       1,004,146       1,063,169  
General and administrative   34,600       35,883       97,358       97,307  
Depreciation and amortization   33,991       37,865       100,787       114,436  
Contingent consideration for acquisition of businesses         620             620  
Shareholder litigation expense               54,295        
Asset impairments   5,177       805       9,351       13,058  
    411,960       423,100       1,265,937       1,288,590  
               
OTHER INCOME (EXPENSE):              
Interest expense, net   (20,653 )     (20,193 )     (62,303 )     (63,727 )
Expenses associated with debt repayments and refinancing transactions               (52,167 )      
Gain on sale of real estate assets, net         2,102       38,766       4,920  
Other income (expense)   49       11       (107 )     713  
               
INCOME BEFORE INCOME TAXES   38,630       27,086       48,735       85,324  
               
Income tax expense   (8,618 )     (369 )     (128,668 )     (3,183 )

NET INCOME (LOSS)
  30,012       26,717       (79,933 )    
82,141
 
               
Net income attributable to non-controlling interest                     (1,181 )
               
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS $ 30,012     $ 26,717     $ (79,933 )   $ 80,960  
               
               
BASIC EARNINGS (LOSS) PER SHARE $ 0.25     $ 0.22     $ (0.67 )   $ 0.68  
               
DILUTED EARNINGS (LOSS) PER SHARE $ 0.25     $ 0.22     $ (0.67 )   $ 0.68  
                               

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
September 30,
  For the Nine Months Ended
September 30,
    2021       2020       2021       2020  
               
Net income (loss) attributable to common stockholders $ 30,012     $ 26,717     $ (79,933 )   $ 80,960  
Non-controlling interest                     1,181  
Diluted net income (loss) attributable to common stockholders $ 30,012     $ 26,717     $ (79,933 )   $ 82,141  
               
Special items:              
Expenses associated with debt repayments and refinancing transactions               52,167        
Expenses associated with mergers and acquisitions                     338  
Expenses associated with COVID-19         2,820       2,434       10,985  
Expenses associated with changes in corporate tax structure         4,698             5,045  
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             620  
Gain on sale of real estate assets, net         (2,102 )     (38,766 )     (4,920 )
Shareholder litigation expense               54,295        
Asset impairments   5,177       805       9,351       13,058  
Income tax expense (benefit) for special items   (1,449 )     532       (19,694 )     532  
Adjusted net income $ 33,740     $ 34,090     $ 94,103     $ 110,884  
Weighted average common shares outstanding – basic   120,285       119,632       120,161       119,533  
Effect of dilutive securities:              
Restricted stock-based awards   641       6       397       25  
Non-controlling interest – operating partnership units   1,123       1,342       1,269       1,342  
Weighted average shares and assumed conversions – diluted   122,049       120,980       121,827       120,900  
Adjusted Earnings Per Diluted Share $ 0.28     $ 0.28     $ 0.77     $ 0.92  
                               

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
September 30,
  For the Nine Months Ended
September 30,
    2021       2020       2021       2020  
               
Net income (loss) $ 30,012     $ 26,717     $ (79,933 )   $ 82,141  
Depreciation and amortization of real estate assets   24,877       28,249       73,562       84,599  
Impairment of real estate assets               1,308       10,155  
Gain on sale of real estate assets, net         (2,102 )     (38,766 )     (4,920 )
Income tax expense for special items         532       9,291       532  
Funds From Operations $ 54,889     $ 53,396     $ (34,538 )   $ 172,507  
               
Expenses associated with debt repayments and refinancing transactions               52,167        
Expenses associated with mergers and acquisitions                     338  
Contingent consideration for acquisition of businesses         620             620  
Expenses associated with COVID-19         2,820       2,434       10,985  
Expenses associated with changes in corporate tax structure         4,698             5,045  
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   5,177       805       8,043       2,903  
Income tax benefit for special items   (1,449 )           (28,985 )      
Normalized Funds From Operations $ 58,617     $ 62,339     $ 167,665     $ 195,483  
               
Funds From Operations Per Diluted Share $ 0.45     $ 0.44     $ (0.28 )   $ 1.43  
Normalized Funds From Operations Per Diluted Share $ 0.48     $ 0.52     $ 1.38     $ 1.62  
                               

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
September 30,
  For the Nine Months Ended
September 30,
    2021     2020       2021       2020  
               
Net income (loss) $ 30,012   $ 26,717     $ (79,933 )   $ 82,141  
Interest expense   23,097     22,809       69,865       71,237  
Depreciation and amortization   33,991     37,865       100,787       114,436  
Income tax expense   8,618     369       128,668       3,183  
EBITDA $ 95,718   $ 87,760     $ 219,387     $ 270,997  
Expenses associated with debt repayments and refinancing transactions             52,167        
Expenses associated with mergers and acquisitions                   338  
Expenses associated with COVID-19       2,820       2,434       10,985  
Expenses associated with changes in corporate tax structure       4,698             5,045  
Contingent consideration for acquisition of businesses       620             620  
Gain on sale of real estate assets, net       (2,102 )     (38,766 )     (4,920 )
Shareholder litigation expense             54,295        
Asset impairments   5,177     805       9,351       13,058  
Adjusted EBITDA $ 100,895   $ 94,601     $ 298,868     $ 296,123  
                             

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, M&A activity, 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. Even though expenses associated with mergers and acquisitions may be recurring, the magnitude and timing fluctuate based on the timing and scope of M&A activity, and therefore, such expenses, which are not a necessary component of the ongoing operations of the Company, may not be comparable from period to period.

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