Release – CoreCivic (CXW) – Establishes New Reentry-Focused Leadership Role

 


CoreCivic Establishes New Reentry-Focused Leadership Role

 

Daren Swenson will serve as Vice President, Reentry Partnerships and Innovation

BRENTWOOD, Tenn. – January 19, 2021 – CoreCivic, Inc. (NYSE: CXW) announced today the creation of a new leadership role dedicated to building on the company’s longstanding efforts to provide innovative, high-quality reentry programming to help tackle America’s recidivism crisis. Daren Swenson will serve as the company’s first Vice President, Reentry Partnerships and Innovation. He previously led CoreCivic Community, which provides residential and nonresidential services to help justice-involved individuals obtain employment, housing, healthcare, mental health and addiction treatment, and family reunification, as they successfully reintegrate into their communities.

“CoreCivic has a strong track record of leadership in the fight against recidivism, including helping those in our care learn the life and vocational skills they need,” said Damon T. Hininger, President and CEO. “From making unprecedented commitments to reentry programming in 2014 to launching our effort to support reentry-friendly public policies in 2017, the creation of this new leadership position is a critical next step in our efforts to take on one of the biggest challenges facing our country.”

In his new role, Swenson will serve as CoreCivic’s top advocate and practitioner for reentry. He will build on the company’s ongoing efforts to cultivate meaningful partnerships with academics, issue experts, policymakers and other organizations dedicated to effective reentry solutions and recidivism-reducing outcomes. He will also work to operationalize innovative programs and best practices learned from these partnerships, as well as share the lessons learned through CoreCivic’s extensive efforts to promote successful reentry programs and policies.

“Having served in this field for nearly 30 years, it’s the greatest opportunity of my career to take on a role dedicated to reentry partnerships and innovation,” said Swenson. “I see the difference our teachers, chaplains, counselors, case managers, officers, monitors and so many others make every day and know that there’s even more we can do to positively impact people as they seek to rejoin their families and communities successfully.”

Swenson holds a bachelor’s degree in psychology and sociology from North Dakota State University, and he has served in numerous roles in secure and community corrections, including as warden of facilities in Oklahoma, Minnesota and Arizona.

“Daren has a broad mandate to continue developing deep relationships with people and organizations dedicated to reducing recidivism and to bring innovative approaches into our facilities,” said Hininger. “We know that the challenges justice-involved individuals face cannot be solved by one organization alone, and we look forward to working closely with partners dedicated to providing the best in reentry.”

CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by U.S. government agencies. We have 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 at www.corecivic.com.

SOURCE: CoreCivic

Release – CoreCivic (CXW) – To Present At Noble Capital Markets Seventeenth Annual Investor Conference

 


CoreCivic To Present At Noble Capital Markets’ Seventeenth Annual Investor Conference

 

NASHVILLE, Tenn. – January 14, 2021 – CoreCivic, Inc. (NYSE: CXW) (the “Company”) announced today that its President and Chief Executive Officer, Damon Hininger, and Chief Financial Officer, David Garfinkle, will present at NobleCon17 – Noble Capital Markets’ Seventeenth Annual Investor Conference on Wednesday, January 20, 2021, at 4:30 p.m. Eastern Standard Time. The conference is virtual, with no cost, obligation or restrictions to attend: www.noblecon17.com.

A high-definition, video webcast of the presentation will be available the following day on the Company’s website, www.corecivic.com, and as part of a complete catalog of presentations to be rebroadcast on Channelchek, channelchek.vercel.app, next month.

About CoreCivic

The Company 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 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. Learn more at http://www.corecivic.com/.

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 and registered 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+. In 2018 Noble launched channelchek.vercel.app – an investment community dedicated exclusively to small and micro-cap companies and their industries. Channelchek is tailored to meet the needs of self-directed investors and financial professionals and is the first service to offer institutional-quality research to the public, for FREE at every level without a subscription. More than 6,000 emerging growth companies are listed on the site, with growing content including webcasts, industry sector reports, advanced market data and balanced news.

Contact:

Investors: Cameron Hopewell – Managing Director, Investor Relations – (615) 263-3024
Media: Steve Owen – Vice President, Communications – (615) 263-3107

SOURCE: CoreCivic

Release – Prophase Labs (PRPH) – To Present at the NobleCon17 Annual Small and Microcap Investor Conference


ProPhase Labs to Present at the NobleCon17 Annual Small & Microcap Investor Conference on Tuesday, January 19, 2021 at 12:45 p.m. Eastern Time

 

Company Exceeding Near Term Goals & Expands 2021 Testing Capacity
Surpasses Targeted $30 Net Profit Margin Per COVID-19 Test

GARDEN CITY, NY, January 11, 2021 — ProPhase Labs, Inc. (NASDAQ: PRPH) (“ProPhase Labs”), a diversified medical science and technology company, today announced that management will present at the NobleCon17 Annual Small & Microcap Investor Conference taking place January 19th – 20th, 2021.

ProPhase Labs CEO Ted Karkus is scheduled to host a virtual presentation during the conference and will also participate in one-on-one meetings throughout the day. Management will highlight its newly formed subsidiary, ProPhase Diagnostics, which operates a Clinical Laboratory Improvement Amendments (“CLIA”) accredited laboratory in Old Bridge, New Jersey, and recently entered into a lease for a new 25,000 square foot COVID-19 testing facility in Garden City, New York.

Ted Karkus, CEO of ProPhase Labs, stated: “I am excited to report new testing metrics at NobleCon17 with our anticipated launch of additional COVID-19 testing services from our newly acquired lab in Garden City, New York later this month. Interest and demand for our lab processing services has been high, motivating us to build our second lab with capacity to be able to process up to 50,000 COVID-19 tests per day by next month. This capacity is in addition to our successful ramp up of our first lab in New Jersey. We look forward to sharing more on our developing story during our formal presentation and with new investors throughout the conference,” concluded Karkus.

NobleCon17 Annual Small & Microcap Investor Conference

Date: Tuesday, January 19, 2021
Time: 12:45 p.m. EST, 9:45 a.m. PST
Webcast: https://www.nobleconference.com/register/investor-guest – Track 1
Replay: https://noble.mediasite.com/Mediasite/Play/0ea17b2d55f043578d885999a363abf21d – Track 1
Location: Virtual

 

A replay of the webcast will be available at the replay link above approximately 24 hours following the live presentation and will also be available in the company’s new investor relations section here.

For more information or to schedule a one-on-one meeting with ProPhase Labs management, please contact your conference representative or you may also email your request to PRPH@mzgroup.us or call Chris Tyson at (949) 491-8235.

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 and registered 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+. In 2018 Noble launched channelchek.vercel.app – an investment community dedicated exclusively to small and micro-cap companies and their industries. Channelchek is tailored to meet the needs of self-directed investors and financial professionals and is the first service to offer institutional-quality research to the public, for FREE at every level without a subscription. More than 6,000 emerging growth companies are listed on the site, with growing content including webcasts, industry sector reports, advanced market data and balanced news.

About ProPhase Labs

ProPhase Labs (NASDAQ: PRPH) is a diversified medical science and technology company with deep experience with OTC consumer healthcare products and dietary supplements. Its dietary supplement line of products, TK Supplements, has extensive distribution in major FDM (Food, Drug and Mass) retailers including Walmart, Walgreens, CVS and RITE-AID. The Company’s recently formed wholly-owned subsidiary, ProPhase Diagnostics, Inc., is a rapidly developing CLIA laboratory business that offers COVID-19 and other Respiratory Pathogen Panel (RPP) testing services. ProPhase Labs is dedicated to creating sustainable value for shareholders over the long-term through growth of its existing businesses. It is also continuing to explore strategic investments and additional acquisition opportunities. For more information visit us at www.ProPhaselabs.com.

Investor Contact:
Chris Tyson
Managing Director
MZ Group – MZ North America
949-491-8235

PRPH@mzgroup.us
www.mzgroup.us

Source: ProPhase Labs, Inc.

NobleCon17 Presenting Companies List

NobleCon17 Presenting Company Schedule
January 19 & 20, 2021

Complete rebroadcast catalog now available on Channelchek!

Two days of public companies presenting, followed by Q&A sessions moderated by accredited research analysts. Four panels featuring key opinion leaders. Virtual Networking. For more information on NobleCon17, go to nobleconference.com.

   

Click the logos to view advanced market data and recent news for each company
All times listed are Eastern Standard Time

Tuesday January 19, 2021


Healthcare Panel
Track 1 – 8:35am
 

Transportation Panel
Track 2 – 8:35am
 

XBIO (Nasdaq)
Track 1 – 9:45am
 

OS Therapies
Track 2 – 9:45am
 

ENCUF (OTCQB)
Track 3 – 9:45am
Watch the Preview

GLVMF (OTCQX)
Track 4 – 9:45am
Watch the Preview

CLBS (Nasdaq)
Track 1 – 10:30am
Watch the Preview

III (Nasdaq)
Track 2 – 10:30am
Watch the Preview

IPOOF (OTCQX)
Track 3 – 10:30am
Watch the Preview

UUUU (NYSE)
Track 4 – 10:30am
 

HSDT (Nasdaq)
Track 1 – 11:15am
Watch the Preview

OSS (Nasdaq)
Track 2 – 11:15am
Watch the Preview

GEVO (Nasdaq)
Track 3 – 11:15am
Watch the Preview

ELYGF (OTCQX)
Track 4 – 11:15am
Watch the Preview

LCTX (NYSE)
Track 1 – 12:00pm
Watch the Preview

ORN (NYSE)
Track 2 – 12:00pm
 

CPST (Nasdaq)
Track 3 – 12:00pm
Watch the Preview

EXK (NYSE)
Track 4 – 12:00pm
Watch the Preview

Currently Scheduling
Track 1 – 12:45pm
 

LMB (Nasdaq)
Track 2 – 12:45pm
Watch the Preview

INDO (NYSE)
Track 3 – 12:45pm
Watch the Preview

SMTS (NYSE)
Track 4 – 12:45pm
Watch the Preview

CTXR (Nasdaq)
Track 1 – 1:30pm
 

CMTL (NasdaqGS)
Track 2 – 1:30pm
 

CMLS (Nasdaq)
Track 3 – 1:30pm
 

AUIAF (OTCQB)
Track 4 – 1:30pm
Watch the Preview

COCP (Nasdaq)
Track 1 – 2:15pm
Watch the Preview

REKR (Nasdaq)
Track 2 – 2:15pm
Watch the Preview

TPCO (Nasdaq)
Track 3 – 2:15pm
 

AUXXF (OTCQX)
Track 4 – 2:15pm
Watch the Preview

CURR (OTCQB)
Track 1 – 3:00pm
 

TAALF (OTCQX)
Track 2 – 3:00pm
Watch the Preview

Playboy Enterprises
Track 3 – 3:00pm
Watch the Preview

CHKKF (OTCQB)
Track 4 – 3:00pm
Watch the Preview

GNPX (Nasdaq)
Track 1 – 3:45pm
Watch the Preview

FLYLF (OTCQX)
Track 2 – 3:45pm
 

EVC (NYSE)
Track 3 – 3:45pm
 

NTGSF (OTCQX)
Track 4 – 3:45pm
Watch the Preview

JAGX (Nasdaq)
Track 1 – 4:30pm
Watch the Preview

JETMF (OTCQB)
Track 2 – 4:30pm
Watch the Preview

TSQ (NYSE)
Track 3 – 4:30pm
 

NRGOF (OTCQB)
Track 4 – 4:30pm
Watch the Preview

RCAR (OTCPK)
Track 1 – 5:15pm
 

PANL (Nasdaq)
Track 2 – 5:15pm
 
 
Natural Resources Panel
Track 4 – 5:15pm

Wednesday January 20, 2021


ELDN (Nasdaq)
Track 1 – 9:00am
 

PTPI (Nasdaq)
Track 2 – 9:00am
 

MEEC (OTCQB)
Track 3 – 9:00am
 

NMGRF (OTCQX)
Track 4 – 9:00am
 

VIVXF (OTCQB)
Track 1 – 9:45am
Watch the Preview

MIND (NasdaqGS)
Track 2 – 9:45am
Watch the Preview

SSP (NasdaqGS)
Track 3 – 9:45am
 

NKORF (OTCPK)
Track 4 – 9:45am
Watch the Preview

OCGN (Nasdaq)
Track 1 – 10:30am
Watch the Preview

GNK (NYSE)
Track 2 – 10:30am
 

ACCO (NYSE)
Track 3 – 10:30am
 

LODE (NYSE)
Track 4 – 10:30am
Watch the Preview

CRPOF (OTCQX)
Track 1 – 11:15am
 

INSW (NYSE)
Track 2 – 11:15am
 

DLHC (Nasdaq)
Track 3 – 11:15am
Watch the Preview

MUNMF (OTCQB)
Track 4 – 11:15am
Watch the Preview

AEZS (Nasdaq)
Track 1 – 12:00pm
 

GLDD (NasdaqGS)
Track 2 – 12:00pm
Watch the Preview

GMBL (Nasdaq)
Track 3 – 12:00pm
Watch the Preview

STTDF (OTCQB)
Track 4 – 12:00pm
Watch the Preview

KRBP (Nasdaq)
Track 1 – 12:45pm
Watch the Preview

SHIP (Nasdaq)
Track 2 – 12:45pm
Watch the Preview

Private Company
Track 3 – 12:45pm
Watch the Preview

JAGGF (OTCPK)
Track 4 – 12:45pm
Watch the Preview

AYLA (Nasdaq)
Track 1 – 1:30pm
 

PXS (Nasdaq)
Track 2 – 1:30pm
 

FAT (Nasdaq)
Track 3 – 1:30pm
Watch the Preview

VGZ (NYSE)
Track 4 – 1:30pm
Watch the Preview

STMH (OTCQX)
Track 1 – 2:15pm
 

EGLE (NasdaqGS)
Track 2 – 2:15pm
Watch the Preview

SALM (Nasdaq)
Track 3 – 2:15pm
Watch the Preview

GLDRF (OTCQB)
Track 4 – 2:15pm
Watch the Preview

VNRX (NYSE)
Track 1 – 3:00pm
 

EDRY (Nasdaq)
Track 2 – 3:00pm
 

VYGVF (OTCQB)
Track 3 – 3:00pm
Watch the Preview

GGIFF (OTC)
Track 4 – 3:00pm
 

Adaptive Phage
Track 1 – 3:45pm
 

NXTTF (OTCQB)
Track 2 – 3:45pm
Watch the Preview

LSYN (OTCQB)
Track 3 – 3:45pm
 

FTK (NYSE)
Track 4 – 3:45pm
 

ONTX (Nasdaq)
Track 1 – 4:30pm
Watch the Preview

CXW (NYSE)
Track 2 – 4:30pm
 

GTBAF (BUSXF)
Track 3 – 4:30pm
 

GTBAF (OTCQX)
Track 4 – 4:30pm
 
 
ESEA (Nasdaq)
Track 2 – 5:15pm
 
 
Track 4 – 5:15pm

InvestorBrandNetwork is the Media Sponsor of NobleCon
InvestorWire is the Official NewsWire of NobleCon

CoreCivic, Inc. (CXW) – Sale of 42 Non-Core Properties Yields $27 million for Debt Reduction

Thursday, December 24, 2020

CoreCivic, Inc. (CXW)
Sale of 42 Non-Core Properties Yields $27 million for Debt Reduction

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.

    Sale. Yesterday after the market closed, CoreCivic announced the sale of 42 non-core government properties, representing 573,000 gross rentable square feet, for $106.5 million. The Company had originally purchased these properties for $98.7 million. CoreCivic will use the $27 million of net proceeds, after repayment of non-recourse debt related to the portfolio, to repay borrowings under the Company’s revolving credit facility.

    And More Still To Go.  CoreCivic still has five additional non-core government properties, representing some 1.1 million of gross rentable square feet, that are being marketed. We remain confident the additional properties could generate $120 million of net cash, after repayment of non-recourse debt. Again, we expect any net proceeds to be used to reduce outstanding debt, as per the Company’s …



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

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

Release – CoreCivic (CXW) – Announces the Sale of 42 Non-Core Government Leased Properties for $106.5 Million

 


CoreCivic Announces the Sale of 42 Non-Core Government Leased Properties for $106.5 Million

 

BRENTWOOD, Tenn., Dec. 23, 2020 (GLOBE NEWSWIRE) — CoreCivic, Inc. (NYSE: CXW) (the “Company”) announced today that following an extensive and ongoing marketing process for the proposed sale of certain non-core real estate assets in its CoreCivic Properties segment, it closed on the sale of 42 of its non-core government leased properties to a third party for an aggregate purchase price of $106.5 million. The assets sold represented approximately 573,000 gross rentable square feet and are expected to generate approximate net proceeds of $27.0 million, following repayment of non-recourse mortgage notes associated with some of the properties and other transaction-related costs. Net cash proceeds will be utilized to repay borrowings under the Company’s revolving credit facility.

“We are pleased with the positive market response we have seen throughout the marketing process of our non-core government leased properties, and today’s closing announcement is a positive initial step in the process to recycle capital towards higher returning opportunities,” said Damon Hininger, CoreCivic’s President and Chief Executive Officer. “The remaining non-core assets we are evaluating for sale are significantly larger in terms of gross rentable square feet, both individually and in aggregate, and we remain optimistic in our prospects for consummating additional sales.”

The Company’s original purchase price for the 42 properties sold was $98.7 million. Subsequent to the close of the transaction, the CoreCivic Properties portfolio consists of 15 properties representing 2.7 million square feet, including five non-core government leased properties representing 1.1 million gross rentable square feet. In addition to the CoreCivic Properties portfolio, CoreCivic operates 48 correctional and detention facilities, 42 of which it owns, with a total design capacity of approximately 71,000 beds, and 27 residential reentry centers with a total design capacity of approximately 5,000 beds.

About CoreCivic

The Company 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 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. Learn more at http://www.corecivic.com/.

Forward-Looking Statements

This press release contains statements as to our beliefs and expectations of the outcome of future events that are “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. 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, 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 the South Texas Family Residential Center by Immigration and Customs Enforcement under terms of the current contract, 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) the location and duration of shelter in place orders and other 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; (ix) whether revoking our REIT election 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 identify and consummate the sale of additional non-core assets at attractive prices; (xi) 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; (xii) our ability, following the revocation of our REIT election, to identify and initiate service opportunities that were unavailable under the REIT structure; (xiii) our ability to meet and maintain qualification for taxation as a REIT for the years the Company elected REIT status; and (xiv) 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.

Contact:

Investors: Cameron Hopewell – Managing Director, Investor Relations – (615) 263-3024
Media: Steve Owen – Vice President, Communications – (615) 263-3107

DLH Holdings Corp. (DLHC) – Covid Continues to Impact Revenues But Well Positioned Going Forward

Tuesday, December 08, 2020

DLH Holdings Corp. (DLHC)
Covid Continues to Impact Revenues; But Well Positioned Going Forward

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.

    4Q20 Results. Revenues were $50.7 million, down from $54.2 million a year ago. Revenue was negatively impacted by COVID with deferrals in certain programs and a reduction in pass-through revenue. We had projected $54 million and consensus was $55.2 million. EPS was $0.10, down from $0.12 y-o-y, although 4Q20 results were impacted by $930,000 of acquisition costs, which reduced 4Q20 EPS by $0.05. We were at $0.14 and consensus was $0.15. EBITDA was $4.4 million ($5.3 million adjusted) versus $5.3 million in the prior year period.

    Growing Opportunity Set.  With an expanded portfolio of mission-critical related services across multiple government agencies, DLH is well positioned to capitalize on expected growth in its key focus areas such as veterans health, public health, and life sciences. The IBA and S3 acquisitions have expanded the Company’s opportunity set and ability to capture additional share at existing clients …



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. 

Investment of Excess Corporate Cash

 


Share Repurchases have Surpassed Dividends – Four Uses of Excess Corporate Cash

 

Management is faced with several options when their company has excess cash.  They can invest the excess reserves in the hope that the investment will lead to higher growth. They can pay down debt. They may repurchase shares. Or they could distribute it by paying shareholders a dividend. Management’s decision is best if made by viewing each option as an investment with a different return profile. Each investment opportunity has its advantages and disadvantages.

 In recent years, share repurchases have grown in popularity. Treasury & Risk, an online magazine for corporate treasury professionals, reported that the amount of capital spent on share repurchases between 2014-2019 has increased at a compound annual growth rate (CAGR) of 10.4% versus a 7.1% rate for dividends and a 5.5% rate for organic investments. The investments may signify to the market management’s positive expectations about the company’s future performance. In this article, Channelchek looks at the four uses of cash and addresses the advantages and disadvantages along with the broader market implications.

Reinvesting Cash

Reinvesting cash into the business is a clear sign that management believes there will be a large return on the investment. The investment might be building a new factory, hiring employees, or raising the company’s research and development budget. These are steps usually taken when a company has the ability to grow but faces constraints preventing growth. Reinvesting cash, then, is expected to lead to higher earnings and cash flow growth. In comparing cash reinvestment to other forms of investment, management may look at its historical return on invested capital (ROIC) and adjust it to reflect the outlook for specific investment projects. Management should also be wary of the risks associated with the investment and factor these risks into investment considerations. Cash reinvestment is not as obvious as paying down debt, repurchasing shares, or raising a dividend. Often reinvestment is lumped together with normal capital expenditures in an investor’s mind and has little impact on the stock price. However, reinvesting capital is a good indication that management believes its best investment opportunities lie within the company. Companies with high levels of cash reinvestment tend to be associated with early-stage, fast-growing industries.

Paying Down Debt

When a company retires debt, it frees itself of the obligation to pay interest on the note. Therefore, paying down debt can be viewed as an investment as the excess cash deployed will provide future benefits. The return on investment will be equivalent to its cost of debt. A company’s cost of debt is typically less than its implied cost of equity or return on invested capital. With this in mind, the investment return on paying down debt may seem low relative to other cash options. However, there are other factors to consider. Reducing debt improves the company’s balance sheet. This may allow the company to issue debt in the future if favorable opportunities arise. An improved balance sheet may also lower the cost of the remaining debt. It could even have the effect of making the stock more attractive to equity investors. On the other hand, debt reduction may be viewed as management, sending a negative signal about future performance. Is the company shoring up the balance sheet to weather an upcoming negative environment?

Cash Dividends

Paying a cash dividend has long been the easiest way to return funds to shareholders. Investors appreciate the utility of cash assets. Some use dividends to pay for living expenses. Others will reinvest the dividend but enjoy the ability to direct where the proceeds are invested. Measuring the level of cash return is easy. Almost every investor knows what a dividend yield is and that a higher yield reflects a larger return on investment. Changed expectations of investors is also a consideration; before management opts to raise dividends to help lift up its stock’s yield, they should consider the company’s ability to make future dividend payments. The stock market is full of examples of investors punishing companies that cut their dividends. Retirees depend on certain dividend levels to pay for expenses. Others view a dividend cut as a sign that management believes future results will not be as favorable as previously expected.

Share Repurchase

Since 1997, share repurchases have surpassed cash dividend payments. According to Treasury & Risk, $3 trillion was spent on repurchase programs between 2014 and 2019. The return on investment of repurchasing shares depends on the implied return required by investors. By determining a company’s stock price, the market has, in essence, set a required rate of return based on the company’s risk profile and prevailing expected risk-free and market returns.  Repurchasing shares has several advantages. It is inexpensive. It can be done quickly and timed to reflect management’s opinion about the stock price. It can also serve to offset panicked selling that might be unjustified. On the negative side, repurchases weaken the balance sheet leading to more expensive debt financing. Many management teams have been increasing debt levels to fund share repurchases. Such a strategy takes advantage of current low-interest rates but leaves the company susceptible to interest rate increases. As far as signaling goes, share repurchases are usually viewed as a sign that management thinks its stock is undervalued. However, it can also signal that management believes it does not have attractive investment options internally.

Take-Away

There are many factors to consider when deciding what to do with excess cash. We examined the four common uses of unused company funds. Rather than attempt to determine which “investment” is the best, individual companies face different circumstances; Channelchek examined the side effects and the signaling implications of each investment. In the end, it is up to management to determine which method makes sense for their individual company. Likewise, investors should be aware not only of the investment but the implications of the investment. Raising a dividend, for example, maybe a signal of improved management confidence in future performance. Or, it could be a signal that management has run out of attractive internal investment opportunities.

 

Suggested Reading:

Alternative Investments and 401K Plans

Is Gridlock Good for the Stock Market?

Interest rates Impact on Investment Sectors

Tomorrow – Meet Neovasc (NVCN) President and CEO Fred Colen at Channelchek’s online Virtual Road Show.

Learn more and register HERE

Enjoy Premium Channelchek Content at No Cost

Sources:

https://www.treasuryandrisk.com/2020/06/04/corporate-stock-buybacks-hit-record-levels, T&R Staff, Treasury & Risk, June 04, 2020

https://www.jstor.org/stable/3094520?seq=1, January 4, 2020

https://www2.deloitte.com/us/en/insights/economy/spotlight/economics-insights-analysis-03-2019.html, Deloitte, March 26, 2019

 

College Scholarships for Esports Gamers

 


College Sports Scholarships for Esports are on the Rise

 

Esports, or electronic sports, is among the fastest-growing sport in the world. For this reason,  college scholarships, up to full free-ride tuition programs for  esports at schools have increased dramatically. The current environment is a perfect storm for collegiate esports growth – college applications are down, tuition is up, and alternatives to traditional higher-education are growing. The focus on esports as a lure for students and recognition of individual colleges and universities is spreading almost as fast as esports itself.

Universities and Colleges, as with all institutions, compete against similar establishments for customers (students). Prior to this year’s  pandemic challenges, Forbes wrote about declining admission in a December 2019 article, “About 159,000 fewer men (-2.0%) and nearly 84,000 fewer women (-.8%) enrolled in 2019 compared to 2018.”  Some of the reasons provided in the article are fewer high school graduates, high profile scandals, increased anxiety about costs and student debt, analysis of the value of college, growing concerns about admissions fairness, and political bias on college campuses’. One way at least 151 colleges have been addressing these challenges, and the added challenge of physical distancing adhered to by many institutions is by including, promoting, and solidly backing an electronic sports program. The result, scholarships are becoming common for top esports athletes.

The National Association of Collegiate Esports (NACE) is an officiating governing body for varsity esports. They work closely with Next College Student Athlete (NCSA) and the 151 member colleges to bring schools and athletes together. They also can provide coaching and the information gamers need to navigate the recruiting process and potentially obtain partial or full scholarships. As with any other college experience, fit is important for the student and as with any sports college recruitment, filling specific needs is important. The need is often dictated by the applicant’s strength in specific games.

The Games that Qualify Athletes

Esports scholarships are awarded to gamers who excel in a wide range of popular titles. If the school already has a gamer that is particularly strong in a handful of these games but weaker in others, they may seek to recruit an athlete with strong skills in those games where they lack strength. In terms of traditional sports, think of it as though a college football recruiter whose school has a star quarterback yet is in need of a kicker. The recruiter may come across a great quarterback but overlooks him in search of filling their team gap, which is a skilled kicker.

These are the games that recruiters look to see strength in:

  • Collectible card game: Hearthstone
  • Real-time strategy: StarCraft II
  • Sports games: Rocket League, FIFA, Madden
  • Fighting games: Street Fighter, Mortal Kombat
  • Multiplayer online battle arena (MOBA): League of Legends (LoL), Defense of the Ancients (DOTA) 2, Heroes of the Storm, Smite
  • First-person shooter: Overwatch, Fortnite, Counter-Strike: Global Offensive (CS:GO), PlayerUnknown’s Battlegrounds (PUBG), Paladins

Show Me the Money

Each school offering scholarships to esports athletes have different policies and criteria—the majority range from $500 to $8,000 per year. Several schools are beginning to offer full-tuition and even full-ride scholarships. Harrisburg University—which won ESPN’s first Collegiate Esports Championship in May 2019—was the first to provide full-ride scholarships to its entire 16 team esports roster.

As colleges try to find ways to bring the best and brightest to their institutions, the skills needed by student applicants are changing. There is money to be found in scholarships and programs of all types. Students should also bear in mind that a few short years after they apply for college, they are likely to be applying for a career. Strengthening that future application with skills and accomplishments while in school makes landing the perfect job that much easier.

 

Do You Know a Student  Who Could Use $7,500 for College?

Tell them about the College Challenge!

 

Informational meeting for the College Challenge research contest:

December 3, 2020, 02:30 PM Eastern Time (US and Canada)

College Challenge Information Meeting with Mike Kupinski, Director of Research Noble Capital Markets

Join Webinar
http:s://attendee.gotowebinar.com/register/90109245340248312848

 

Suggested Reading:

College Students are Invited to Show Off Their Company Research Skills

How to Invest in Esports

Heightened M&A Activity In The Gambling Space Validates ESports’ Strategy (Research)

 

Sources:

College Enrollment Declines Again. It’s Down More Than Two Million Students In This Decade.

Current Term Enrollment Estimates 2019

https://www.varsityesportsfoundation.org/

NACE

Photo:
South Dakota School of Mines and Technology esports facility ribbon-cutting ceremony.

Kelly Services Inc. (KELYA) – Expands Into Higher Education with Acquisition of Greenwood Asher Associates

Wednesday, November 25, 2020

Kelly Services Inc. (KELYA)

Expands Into Higher Education with Acquisition of Greenwood/Asher & Associates

Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company’s operations are divided into three business segments namely Americas Staffing, Global Talent Solutions (“GTS”) and International Staffing. It provides staffing solutions through its branch networks in Americas and International operations and also provides a suite of innovative talent fulfilment and outcome-based solutions through GTS segment. Americas Staffing generates maximum revenue from its operations.

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

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

    Greenwood/Asher Acquisition. Monday, Kelly Services announced it had acquired Greenwood/Asher & Associates, a leading executive search firm specializing primarily in higher education. Neither terms of the deal or its impact on Kelly’s revenues were disclosed, but we would anticipate additional detail from the Company in the future. An adjacency to its existing educational services business, Greenwood/Asher expands Kelly’s offerings beyond the K-12 market. This marks the third acquisition in the educational space in the past four years for Kelly.

    Attractive Higher Educational Space.  Although we would expect Greenwood/Asher to be suffering similar negative COVID related impacts as Kelly’s K-12 business, longer term we believe the higher educational market is an attractive space. Decreasing average tenure of higher education chief executives, from about 12 years down to six years, should result in an increased volume 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. 

ACCO Brands Corporation (ACCO) – PowerA Acquisition Expands Consumer Offerings

Wednesday, November 11, 2020

ACCO Brands Corporation (ACCO)

PowerA Acquisition Expands Consumer Offerings

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.

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

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

    PowerA Acquisition. Last night, ACCO announced it has entered into a definitive agreement to acquire PowerA, a fast-growing, leading provider of third-party video gaming accessories, including controllers, power charging solutions, and gaming headsets. PowerA is a long-standing licensed partner with the leading gaming platforms and title publishers, with a 20-year track record of collaboration.

    Consumer Focus.  The acquisition represents a major step in ACCO’s strategy to transition the Company into a faster-growing, consumer-focused company. Upon completion of the deal, more than 50% of revenues will be derived from consumer, school, and technology products, which will offer faster growing market demand over the next several years. ACCO’s channels will become more consumer and online …



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 (CXW) – Post Call Commentary Updated Model and Thoughts on Biden Presidency

Monday, November 09, 2020

CoreCivic (CXW)

Post Call Commentary, Updated Model and Thoughts on Biden Presidency

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.

    What Changes Under a Biden Presidency? The proverbial $64,000 question. Although not set in stone, if the Senate remains Republican controlled, we believe any change will be at the margins. As part of the Obama administration, Biden was there as ICE average daily populations experienced a steady increase to the high 30,000 level. A bigger question would be where future detainees would be housed given neither ICE or the USMS owns a meaningful number of beds. If border restrictions are relaxed, crossings may actually increase and, unless policy is changed to not detain anyone, which we think is politically a non-starter, where would the government house them?

    Valuable Assets.  One outcome could be the sale or leasing of CoreCivic’s properties to the government. On a replacement cost basis, we believe the Company’s facilities are worth in excess of $12.75 per CXW share and that is using $100,000 per bed as the replacement cost, well below what the Federal government and States typically spend to build per bed, and discounting the resulting value by 50% …



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. 

Kelly Services Inc. (KELYA) – Better Than Expected 3Q EPS But End Markets Remain Fluid

Friday, November 06, 2020

Kelly Services Inc. (KELYA)

Better Than Expected 3Q EPS But End Markets Remain Fluid

Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company’s operations are divided into three business segments namely Americas Staffing, Global Talent Solutions (“GTS”) and International Staffing. It provides staffing solutions through its branch networks in Americas and International operations and also provides a suite of innovative talent fulfilment and outcome-based solutions through GTS segment. Americas Staffing generates maximum revenue from its operations.

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

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

    3Q Results. Revenue declined 18.1% to $1.04 billion, as COVID-related demand declines persist. GAAP EPS of $0.42 versus a loss of $0.27 last year. Adjusted EPS of $0.29 for 3Q20 versus $0.43 in 3Q19. We had projected revenue of $1.05 billion and EPS of $0.09. Consensus called for $1.047 billion and $0.10, respectively.

    Positives, But Covid Continues to Negatively Impact.  Kelly experienced sequential improvement across each of its business segments, with the September 2020 revenue exit rates better than the overall quarter average. Certain higher margin specialties have proved particularly resilient. Kelly continues to win new business, even in such depressed segments as Education. However, the impact of COVID …



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.