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. 

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

 

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

Friday, November 05, 2021

The GEO Group, Inc. (GEO)
Another Solid Quarter

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.

3Q21 Results. The GEO Group reported better-than-expected top line and AFFO for the third quarter of 2021. Total revenue for the quarter was $557.3 million compared to guidance of $548-$553 million. We were at $553 million. GEO reported AFFO of $0.65/sh, compared to guidance of $0.62/sh -$0.64/sh. We were at $0.65/sh. Adjusted earnings were $0.36/sh versus $0.37/sh last year. We had forecast $0.36/sh.


Non-Residential Services Strong Showing.  The Non-Residential Services segment, mostly the BI monitoring business, enjoyed a very solid quarter, with revenue up 19% y-o-y (compared to 8.4% YTD) and NOI up 31% in the quarter (compared to 19% YTD) …

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. 

Friday, November 05, 2021

The GEO Group, Inc. (GEO)
Another Solid Quarter

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.

3Q21 Results. The GEO Group reported better-than-expected top line and AFFO for the third quarter of 2021. Total revenue for the quarter was $557.3 million compared to guidance of $548-$553 million. We were at $553 million. GEO reported AFFO of $0.65/sh, compared to guidance of $0.62/sh -$0.64/sh. We were at $0.65/sh. Adjusted earnings were $0.36/sh versus $0.37/sh last year. We had forecast $0.36/sh.


Non-Residential Services Strong Showing.  The Non-Residential Services segment, mostly the BI monitoring business, enjoyed a very solid quarter, with revenue up 19% y-o-y (compared to 8.4% YTD) and NOI up 31% in the quarter (compared to 19% YTD) …

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. 

	Image Credit: Pixabay (Pexels)

Is the Halloween Investment Strategy a Trick or a Treat?

 

What Is the Halloween Strategy? Is it statistically reliable? What have the results been?

The directive, “Always remember to buy in November,” has a few different names; the Halloween effect, the Halloween indicator, are among the more common. It answers the question, If I sell in May and walk away, when do I come back? This is because the “Halloween Strategy” and the “Sell in May” strategies are related — they are different ways of suggesting the same action. The results should be identical.

What Is It?

The Halloween strategy is over a century old. Buying when October ends is essentially a market-timing strategy based on the thought that the overall stock market performs better between Oct. 31st (Halloween) and May 1st than it performs from May through the end of October. The directive suggests first that market timing yields better results than buy and hold. Secondly, it says the probability of better results compared to buying and holding is increased, over this period. Those who subscribe to this approach recommend not investing at all during the off “season.”

Evidence suggests this strategy does perform well over time, but despite many theories, there is no clear or agreed-upon reason. A famous study was done by Sven Bouman (AEGON Asset Mgmt.) and Ben Jacobsen (Erasmus University Rotterdam) and published in the American Economic Review, December 2002. The study documents the existence of a strong seasonal effect in stock returns based on the Halloween indicator. They found the “inherited wisdom” to be true globally and useful in 36 of the 37 developed and emerging markets they studied. They reported the Sell in May effect tends to be particularly strong in European countries and is amplified over time. Their sample evidence shows that in the UK the effect has been noticeable since 1694. They also reported, “While we have examined a number of possible explanations, none of these appears to explain the puzzle convincingly.”

Is it Reliable?

I didn’t go back as far as 1694 the way Sven and Ben did. And, I didn’t collect data from emerging and developed markets around the globe. More pertinent to Channelchek readers is whether this strategy used on the U.S. markets has been worthwhile. The evaluation of this is found below.

 

 

The above chart is a compilation of average results for two six-month periods, May through October and November through April. It also looks at two different indexes, the largest stocks in the S&P 500 (blues) index and smallcap stocks of the Russell 2000 (orange shades).

What was discovered is that during the period, investors in either of these indexes would have had positive earnings during either “season.” So it supports “buy and hold” wisdom or, at least, staying invested. During the Halloween through May period, the smallcap Russell returned 8.60% while during the other six months, performance was a weaker 2.92%. The S&P 500 maintained consistent averages in the low 5% area for either period.

 

What Have the Results Been?

Since the turn of the century, investors would have fared better if they bought stocks represented in the smallcap average, after Halloween, then moved to S&P 500 stocks in May. Below are the results of the 21 periods. The highest returns of either index occurred during the latest Halloween to May cycle. It was the smallcap index that measured a 45.76% gain. The index also measured the second-highest gain during the Sell in May 2004 measurement period. The Sell in May smallcap index also can claim the two lowest performance numbers.

 

 

Take-Away

The Halloween strategy says that investors should be fully invested in stocks from November through April, and out of stocks from May through October. Variations of this strategy and its accompanying axioms have been around for over a century. Looking at the last 21 years, a move from larger stocks to smaller may have been the move that could have paid off best as smallcaps after Halloween have outperformed over the past two decades.

Both “seasons,” for both measured indexes had positive average earnings. So the notion of staying fully invested is supported using recent data.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading:

Does the Russell Reconstitution Impact Small-Cap Performance During June?

Was There Ever a Market Crash on Good Friday?

Additional Balance in 60-40 Asset Mixes

How Good are Experts at Predicting the Market?

 

Sources:

https://pubs.aeaweb.org/doi/pdfplus/10.1257/000282802762024683

www.koyfin.com

 

Stay up to date. Follow us:

Sierra Metals to Release Q3-2021 Consolidated Financial Results on Monday, November 8th, 2021 Sierra Metals will release Q3-2021 financial results on Monday, November 8th, 2021, after Market Close. Senior Management will also host a webcast and conference call on Tuesday, November 9th, 2021, at 10:30am EST. Research, News & Market Data on Sierra Metals Watch a recent virtual road show featuring Sierra Metals

 

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Jeff Bezos, Christopher Columbus, and Elon Musk (New Frontiers in Success)

 

Jeff Bezos gave some advice and did a little bragging on Twitter about his accomplishments last night (October 10). The tweet from the second richest man in the world got a response from Elon Musk, whose net worth lead over Bezos is growing. The advice in the post, just minutes before Columbus Day, seems to fit. It recognized the power of going against naysayers and believing in oneself. As for Elon Musk’s reply to Bezos, well, I guess this is how two men that own rocket ships communicate.

 

Background:

In 1999 the business weekly, Barron’s wrote a story on Amazon’s business and featured it on the cover of their magazine. The story was titled, “Amazon.bomb” it predicted the demise of the online store while dismissing Bezos by saying, “The idea that Amazon CEO Jeff Bezos has pioneered a new business paradigm is silly. ” Twenty-two and a half years later, the person many predicted was sailing off in the wrong direction, is worth $1.6 trillion, owns a more successful publication than Barron’s, and is sending people into space.

It isn’t clear if his tweet was related to Christopher Columbus who also could have failed had he not ignored naysayers, let go of what was the standard route to success, and instead found people that believed in him. The Bezos tweet reads: “Listen and be open, but don’t let anybody tell you who you are. This was just one of the many stories telling us all the ways we were going to fail. Today, Amazon is one of the world’s most successful companies and has revolutionized two entirely different industries.”

 

 

Elon Musk Response

Famous for his short, impactful Twitter posts and replies, Elon Musk responded with a simple emoji of a Second Place Silver Medal emoji. This “poke” collected 20,000 more “Likes” than the original post.  A few days earlier a major news outlet published an article showing how Elon Musk, has overtaken Bezos as the richest person and how he’s widening the gap.

 

 

Musk and Bezos compete on several frontiers, including self-driving cars and space exploration. The competitiveness of the two and the nudge and poke we woke up to on Twitter this morning is perhaps one way the ultra-successful keep themselves motivated.

 

Take-Away

If Christopher Columbus had access to Twitter in the early 1500s, would he have highlighted his success and given advice about listening to others while ignoring the naysayers? Would Amerigo Vespucci have tweeted back a map with two continents named after himself? We’ll obviously never know, but we know we can be grateful for so many who didn’t just follow others and instead went against criticism and found success.

 

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading:

Michael Burry vs Cathie Wood is Not an Even Competition

Warren Buffet vs. Elon Musk: Who’s Right?

Lithium-Ion Power vs Hydrogen Fuel Cell

Will U.S. Car Companies be Handed Different EV Advantages?

 

Sources:

https://www.barrons.com/articles/SB927932262753284707?tesla=y

https://www.bloomberg.com/news/articles/2021-10-08/musk-just-added-11-billion-in-wealth-dominates-the-rich-list 

https://www.linkedin.com/pulse/20141013110832-8211683-five-leadership-lessons-from-christopher-columbus/

https://www.bloomberg.com/news/articles/2021-10-11/musk-goads-bezos-after-extending-lead-as-world-s-richest-person

https://twitter.com/JeffBezos/status/1447403828505088011?ref_src=twsrc%5Etfw

An exclusive look at Jeff Bezos’s plan to set up Amazon-like delivery for ‘future human settlement’ of the moon – The Washington Post

 

Stay up to date. Follow us:

Jeff Bezos, Christopher Columbus, and Elon Musk (New Frontiers in Success)

 

Jeff Bezos gave some advice and did a little bragging on Twitter about his accomplishments last night (October 10). The tweet from the second richest man in the world got a response from Elon Musk, whose net worth lead over Bezos is growing. The advice in the post, just minutes before Columbus Day, seems to fit. It recognized the power of going against naysayers and believing in oneself. As for Elon Musk’s reply to Bezos, well, I guess this is how two men that own rocket ships communicate.

 

Background:

In 1999 the business weekly, Barron’s wrote a story on Amazon’s business and featured it on the cover of their magazine. The story was titled, “Amazon.bomb” it predicted the demise of the online store while dismissing Bezos by saying, “The idea that Amazon CEO Jeff Bezos has pioneered a new business paradigm is silly. ” Twenty-two and a half years later, the person many predicted was sailing off in the wrong direction, is worth $1.6 trillion, owns a more successful publication than Barron’s, and is sending people into space.

It isn’t clear if his tweet was related to Christopher Columbus who also could have failed had he not ignored naysayers, let go of what was the standard route to success, and instead found people that believed in him. The Bezos tweet reads: “Listen and be open, but don’t let anybody tell you who you are. This was just one of the many stories telling us all the ways we were going to fail. Today, Amazon is one of the world’s most successful companies and has revolutionized two entirely different industries.”

 

 

Elon Musk Response

Famous for his short, impactful Twitter posts and replies, Elon Musk responded with a simple emoji of a Second Place Silver Medal emoji. This “poke” collected 20,000 more “Likes” than the original post.  A few days earlier a major news outlet published an article showing how Elon Musk, has overtaken Bezos as the richest person and how he’s widening the gap.

 

 

Musk and Bezos compete on several frontiers, including self-driving cars and space exploration. The competitiveness of the two and the nudge and poke we woke up to on Twitter this morning is perhaps one way the ultra-successful keep themselves motivated.

 

Take-Away

If Christopher Columbus had access to Twitter in the early 1500s, would he have highlighted his success and given advice about listening to others while ignoring the naysayers? Would Amerigo Vespucci have tweeted back a map with two continents named after himself? We’ll obviously never know, but we know we can be grateful for so many who didn’t just follow others and instead went against criticism and found success.

 

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading:

Michael Burry vs Cathie Wood is Not an Even Competition

Warren Buffet vs. Elon Musk: Who’s Right?

Lithium-Ion Power vs Hydrogen Fuel Cell

Will U.S. Car Companies be Handed Different EV Advantages?

 

Sources:

https://www.barrons.com/articles/SB927932262753284707?tesla=y

https://www.bloomberg.com/news/articles/2021-10-08/musk-just-added-11-billion-in-wealth-dominates-the-rich-list 

https://www.linkedin.com/pulse/20141013110832-8211683-five-leadership-lessons-from-christopher-columbus/

https://www.bloomberg.com/news/articles/2021-10-11/musk-goads-bezos-after-extending-lead-as-world-s-richest-person

https://twitter.com/JeffBezos/status/1447403828505088011?ref_src=twsrc%5Etfw

An exclusive look at Jeff Bezos’s plan to set up Amazon-like delivery for ‘future human settlement’ of the moon – The Washington Post

 

Stay up to date. Follow us:

The College Equity Research Contest that Awards Up to $7,500 to Winning Student(s) and $5,000 to School

 

Boca Raton, Fl. November 1, 2021, Noble Capital Markets today announced the launch of its third annual Channelchek College Challenge. The equity research report contest is designed to encourage college students to explore the field of equity research and analysis. The prize package includes cash for both winning student(s) and the winner’s school, a paid internship with Noble Capital Markets, an award ceremony that will be recorded and played on the Nasdaq tower in New York, and more.

Participants are asked to prepare a “Wall Street-style” equity research report on one of the more than 6,000 public small and microcap companies found on channelchek.com. Channelchek is an investor resource featuring news and commentaries, equity research, live and recorded management discussions, company and stock market data, plus exclusive reports on select industries.

The student(s) that register for this year’s College Challenge will be competing for up to $7,500 paid to them; their college will receive an additional $5,000. The student(s) will also be offered a paid internship with Noble Capital Markets. The planned award ceremony this year will be online as possible restrictions on travel to South Florida still threaten and can’t be known looking out as far as early 2022. However, a video of the award presentation ceremony will be produced and featured on the NASDAQ Tower in New York City’s Times Square.

The College Challenge has been made possible with the support of the following sponsors: Channelchek, Salem Media Group, Kelly Services, NASDAQ, The College Investor, and E.W. Scripps, known for its National Spelling Bee. Contact Channelchek for information on sponsorship opportunities for the third College Challenge.

Mike Kupinski, Noble’s Director of Research, was active in providing guidance and judging last year’s College Challenge; he stated, “It’s exciting to be involved in this competition’s third year. Last year the students clearly took the competition seriously with reports that were well written, with thorough analysis. The winners, Melissa Mueller and Benjamin Trussel from the University of Tennessee are examples of the high level of talent present within the college community today.” Looking toward this year’s College Challenge, Kupinski said, “I hope that the competition will incent more students to be inspired to seek careers in equity research, as well as the financial industry.”

Registration Info: https://www.channelchekcollegechallenge.com

Contest Guidelines:

The Challenge is open to students without restrictions relating to age or academic specialization who are registered at an institute of higher learning anywhere in the United States. Entries will be judged by senior equity analysts at Noble Capital Markets.

A complete list of rules are available at 
College
Challenge Rules. Students planning to compete should be aware there will be regular emailed tips and two informational session webinars for those registered. The information session registration links will be sent to those already registered to take part in the contest. Students interested are encouraged to register early.

About Noble Capital Markets, Inc.

Noble Capital Markets (“Noble”) is a research-driven boutique investment bank that has supported small & microcap companies since 1984. As a FINRA and SEC licensed broker dealer Noble provides institutional-quality equity research, merchant and investment banking, wealth management, and order execution services. In 2005, Noble established NobleCon, an investor conference that has grown substantially over the last decade. Noble launched Channelchek – a new investment community dedicated exclusively to small and micro-cap companies and their industries in 2018. 
Channelchek is tailored to meet the needs of self-directed investors and financial professionals. Channelchek is the first service to offer institutional-quality research to the public, for FREE at every level without a subscription. More than 6,000 public emerging growth companies are listed on the site, with growing content including research, webcasts, podcasts, and balanced news.

For all inquiries contact: College Challenge

The College Equity Research Contest that Awards Up to $7,500 to Winning Student(s) and $5,000 to School

 

Boca Raton, Fl. November 1, 2021, Noble Capital Markets today announced the launch of its third annual Channelchek College Challenge. The equity research report contest is designed to encourage college students to explore the field of equity research and analysis. The prize package includes cash for both winning student(s) and the winner’s school, a paid internship with Noble Capital Markets, an award ceremony that will be recorded and played on the Nasdaq tower in New York, and more.

Participants are asked to prepare a “Wall Street-style” equity research report on one of the more than 6,000 public small and microcap companies found on channelchek.vercel.app. Channelchek is an investor resource featuring news and commentaries, equity research, live and recorded management discussions, company and stock market data, plus exclusive reports on select industries.

The student(s) that register for this year’s College Challenge will be competing for up to $7,500 paid to them; their college will receive an additional $5,000. The student(s) will also be offered a paid internship with Noble Capital Markets. The planned award ceremony this year will be online as possible restrictions on travel to South Florida still threaten and can’t be known looking out as far as early 2022. However, a video of the award presentation ceremony will be produced and featured on the NASDAQ Tower in New York City’s Times Square.

The College Challenge has been made possible with the support of the following sponsors: Channelchek, Salem Media Group, Kelly Services, NASDAQ, The College Investor, and E.W. Scripps, known for its National Spelling Bee. Contact Channelchek for information on sponsorship opportunities for the third College Challenge.

Mike Kupinski, Noble’s Director of Research, was active in providing guidance and judging last year’s College Challenge; he stated, “It’s exciting to be involved in this competition’s third year. Last year the students clearly took the competition seriously with reports that were well written, with thorough analysis. The winners, Melissa Mueller and Benjamin Trussel from the University of Tennessee are examples of the high level of talent present within the college community today.” Looking toward this year’s College Challenge, Kupinski said, “I hope that the competition will incent more students to be inspired to seek careers in equity research, as well as the financial industry.”

Registration Info: https://www.channelchekcollegechallenge.com

Contest Guidelines:

The Challenge is open to students without restrictions relating to age or academic specialization who are registered at an institute of higher learning anywhere in the United States. Entries will be judged by senior equity analysts at Noble Capital Markets.

A complete list of rules are available at 
College
Challenge Rules. Students planning to compete should be aware there will be regular emailed tips and two informational session webinars for those registered. The information session registration links will be sent to those already registered to take part in the contest. Students interested are encouraged to register early.

About Noble Capital Markets, Inc.

Noble Capital Markets (“Noble”) is a research-driven boutique investment bank that has supported small & microcap companies since 1984. As a FINRA and SEC licensed broker dealer Noble provides institutional-quality equity research, merchant and investment banking, wealth management, and order execution services. In 2005, Noble established NobleCon, an investor conference that has grown substantially over the last decade. Noble launched Channelchek – a new investment community dedicated exclusively to small and micro-cap companies and their industries in 2018. 
Channelchek is tailored to meet the needs of self-directed investors and financial professionals. Channelchek is the first service to offer institutional-quality research to the public, for FREE at every level without a subscription. More than 6,000 public emerging growth companies are listed on the site, with growing content including research, webcasts, podcasts, and balanced news.

For all inquiries contact: College Challenge

Friday, September 24, 2021

CoreCivic, Inc. (CXW)
Note Offering Upsized to $225 Million

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.

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

Upsized Offering. CoreCivic upsized its tack-on offering of 8.25% senior notes to $225 million from an original $100 million. The demand for CXW paper is a positive sign that debt investors believe the Company can continue to satisfy its debt obligations, in our view, and provides at least a glimpse as to debt investors’ view of the Company’s business model.


Details.  The Additional Notes were priced at 102.25% of their aggregate principal amount, plus accrued interest from April 14, 2021, the issue date for CoreCivic’s previously issued $450 million aggregate principal amount of 8.25% senior unsecured notes due 2026 (the “Existing Notes”). The Additional Notes will have an effective yield to maturity of 7.65% and will constitute a single class of …

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. 

Friday, September 24, 2021

DLH (DLHC)
Awarded FEMA Contract with $87 Million Ceiling

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.

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

Contract. Under a Federal Emergency Management Agency (FEMA) contract to provide support for states seeking temporary hospital support during the COVID-19 pandemic, DLH has been awarded a contract to support the state of Alaska. The contract has a ceiling value of $87 million for the 90-day base period, with the potential for three one-month extensions. The contract begins Monday.


Details.  As the prime contractor, DLH will manage the emergency medical logistics coordination for the healthcare services teams fielded by its subcontractor, which will provide a significant percentage of the services. DLH will leverage its relationship with a nationally recognized temporary medical staffing firm to place experienced medical support personnel in communities throughout the state …

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.