Tag: Security & Protection Services

The GEO Group (GEO) – Proposed Refinancing

Posted on by cpereira@noblefcm.com


Thursday, April 04, 2024

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

Proposed Refinancing. The GEO Group is proposing to issue $1.2 billion of senior notes, comprised of $700 million of senior secured notes due 2029 and $500 million of senior unsecured notes due 2031 in a private offering. The Company also is seeking a new $400 million Term Loan B under a new senior secured credit facility.

Use of Proceeds. The proceeds will be used to refinance approximately  $1.5 billion of existing indebtedness, including to fund the repurchase, redemption or other discharge of the Company’s existing Tranche 1 Term Loan and Tranche 2 Term Loan under its existing senior credit facility, the 9.50% senior second lien secured notes, the 10.50% senior second lien secured notes, and the 6.00% senior notes due 2026. Other uses are to pay debt related transaction fees and expenses and for general corporate purposes.


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

The GEO Group (GEO) – An Expanded Contract

Posted on by cpereira@noblefcm.com


Wednesday, March 13, 2024

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

Air Support. GEO’s wholly-owned subsidiary, GEO Transport, Inc. (“GTI”) has been awarded a five-year contract, inclusive of option periods, to provide air operations support services on behalf of U.S. Immigration and Customs Enforcement. GTI will act as a subcontractor to CSI Aviation, Inc., which has been selected by ICE as the prime contractor.

Details. The new five-year contract is expected to generate approximately $25 million in annualized revenues for GEO. GTI first began providing air operations support services to ICE as a subcontractor to CSI Aviation under a nine-month emergency contract starting in July of 2023. The original July emergency contract to provide air operations support for ICE was expected to generate up to approximately $16 million in revenues over a 9-month period.


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

CoreCivic, Inc. (CXW) – Terming Out Some Debt

Posted on by cpereira@noblefcm.com


Wednesday, March 06, 2024

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 government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 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.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

Debt Offering. Last night after market close, CoreCivic announced an offering of $500 million aggregate principal amount of 8.25% senior notes due 2029. The aggregate principal amount of the Notes to be issued in the offering was increased to $500 million from the previously announced $450 million. The aggregate net proceeds from the sale of the Notes are expected to be approximately $490.3 million.

Uses. CoreCivic intends to use the net proceeds, together with borrowings under the Company’s revolving credit facility and cash on hand, to fund the concurrent cash tender offer for any and all of the $593.1 million outstanding aggregate principal amount of 2026 Notes. Any remaining funds will be used to redeem 2026 Notes that remain outstanding thereafter. With excess cash on hand, the Company could pay most of the remaining principal with cash, modestly tapping into the revolver.


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

The GEO Group (GEO) – Ending the 2023 Fiscal Year on a Good Note

Posted on by cpereira@noblefcm.com


Friday, February 16, 2024

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

4Q23 Results. Revenue for the quarter came in at $608.3 million, compared to $620.7 million a year ago. Adjusted EBITDA totaled $129 million, EPS was $0.21, and adjusted EPS $0.29. In the year ago period, GEO reported $145.5 million, $0.28, and $0.34, respectively. We had forecast $600 million, $119.5 million, $0.19, and $0.19, respectively.

Debt Reduction. For the full year, GEO reduced net debt by some $197 million, ending the year with approximately $1.8 billion of net debt. We expect the Company to continue to reduce net debt by $175-$200 million annually.


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

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

CoreCivic, Inc. (CXW) – Raising Price Target to $17, Post Call Commentary

Posted on by cpereira@noblefcm.com


Monday, February 12, 2024

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 government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 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.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

ICE Pops — Where Do We Go From Here? ICE detainee population grew to 38,498 at the end of January, up from 36,845 at the end of the Federal government fiscal year. But CR funding remains at 34,000 beds. With the CR ending March 8th, it is unclear if a budget will pass and where funding will end up. The recent Senate discussions had suggested a 50,000 bed level, but it is unclear where negotiations go from here. CoreCivic ICE pops were down modestly to a current 11,334 from 11,800 in November, reflecting normal seasonality.

Margins. With higher populations across federal, state, and local partners, higher occupancy rates, normalizing staffing cost and inflation, and per diem increase, operating margin improved in 4Q23. We anticipate additional improvement in 2024. Notably, the Community segment operating margin rose to 33.4% in the quarter, up from 22.2% last year.


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

CoreCivic, Inc. (CXW) – A Fourth Quarter Beat

Posted on by cpereira@noblefcm.com


Thursday, February 08, 2024

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 government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 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.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

Results. Fourth quarter revenue totaled $491.2 million, up from $471.4 million last year and in-line with our $495 million projection. Adjusted EBITDA for the quarter was $90 million, compared to $87.7 million last year and our $82 million estimate. CXW reported adjusted net income of $26.4 million and adjusted EPS of $0.23, beating our estimates of $17.5 million and $0.18, respectively, and improving from $25 million and $0.22 last year.

Strong Business Momentum. The better than expected results were driven by ongoing population and resulting occupancy increases. CoreCivic ended the year at 74% occupancy, the highest quarterly level since 2Q20. Labor availability and wage inflation are normalizing, resulting in improving margins. We expect these trends to continue in 2024.


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

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

The GEO Group (GEO) – Extension of Credit Facility

Posted on by cpereira@noblefcm.com


Monday, December 18, 2023

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

Amendment to Facility. Last week, GEO announced the Company closed on a Refinancing Revolving Credit Commitments Amendment to its Credit Agreement dated August 19, 2022. The amendment provides the refinancing of all of GEO’s outstanding revolving credit facility commitments.

Terms of the Amendment. The amendment provides for approximately $265 million in refinancing revolving credit commitments maturing on March 23, 2027. Prior to the amendment, a portion of the Company’s revolving credit commitments matured on May 17, 2024. The interest rate on outstanding revolving credit loans are determined with reference to the Company’s total leverage ratio. As of the release, the rate is a SOFR based rate (or roughly 5.31% as of December 15, 2023) plus 3.00% per annum. The Company currently has no outstanding borrowings under its revolving credit facility, as amended.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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

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

The GEO Group (GEO) – NobleCon19 Presentation Notes

Posted on by cpereira@noblefcm.com


Thursday, December 14, 2023

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

NobleCon19. The GEO Group CFO Brian Evans presented at NobleCon19. Highlights included the ongoing rise in detainee populations, the continuing challenges of aging facilities and staffing for state correctional agencies, and GEO’s debt reduction efforts. A rebroadcast is available at https://www.channelchek.com/videos/the-geo-group-noblecon19-replay.

Populations. ICE populations move upward and, with recent requests for additional beds, GEO should see incremental benefit, in our view. Border crossings are not slowing to any significant degree, suggesting the the need for additional private sector beds could have a longer tail than expected.


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

The GEO Group (GEO) – Senior Leadership Shuffle

Posted on by cpereira@noblefcm.com


Friday, December 01, 2023

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

New CEO. Yesterday, GEO announced Brian Evans, who has been with the Company for 23 years and has served as the Company’s Chief Financial Officer for 14 years, has been appointed Chief Executive Officer, effective January 1, 2024. Current CEO Jose Gordo is transitioning to an advisor role, by mutual agreement. Given Mr. Evans’ familiarity with GEO and his strong performance as CFO, we believe this is a strong choice for the Company.

Zoley Term. Company founder and Executive Chairman George Zoley will step down as Executive Chairman as of June 30, 2026, the end of his current employment term. Mr. Zoley then will transition into the role as an advisor to the Company, while continuing to serve as the Company’s non-Executive Chairman of the Board of Directors.


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

CoreCivic, Inc. (CXW) – Some More New Contracts

Posted on by cpereira@noblefcm.com


Monday, November 20, 2023

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 government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 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.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

New Business. Last week, CoreCivic announced two additional management contracts, continuing the momentum exhibited since September. Significantly, the new business is with states and counties, two areas of focus for CoreCivic for growth. We believe the recent contract wins demonstrate both strong contracting progress and the high levels of interest in the Company’s services from governmental partners. Notably, utilizing existing bed inventory will help drive margin improvement at CoreCivic.

Wyoming. CoreCivic entered into a new management contract with the state of Wyoming for the housing of up to 240 male inmates at the Company’s 2,672-bed Tallahatchie County Correctional Facility in Tutwiler, Mississippi. The Company previously housed inmates for Wyoming under a management contract that had not been utilized since 2019. The term of the new contract runs through June 30, 2026.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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

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

CoreCivic, Inc. (CXW) – Post Call Commentary – Improving Environment

Posted on by cpereira@noblefcm.com


Thursday, November 09, 2023

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 government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 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.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

ICE Pops Still Increasing. ICE detainee population grew to 36,845 at the end of the Federal government fiscal year, up from 35,289 in the prior week and press reports indicate the current population is closer to 40,000. CoreCivic ICE pops grew from 8,200 at the end of July, to 8,900 at the end of August, to 10,300 at the end of September and were up to 11,800 on Monday.

Positive Impact. The increasing ICE populations, if maintained, will benefit operating results to a greater extent in 4Q than they did in 3Q as many of CoreCivic’s ICE facilities reached the minimum guarantee level by the end of the third quarter. This should result in greater revenue and margin dollar growth for the Safety segment in 4Q23.


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

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

The GEO Group (GEO) – Reported Third Quarter Results

Posted on by cpereira@noblefcm.com


Wednesday, November 08, 2023

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

3Q23 Results. Revenue for the quarter came in at $602.8 million, compared to $616.7 million a year ago. Adjusted EBITDA totaled $118.7 million, EPS was $0.16, and adjusted EPS $0.19. In the year ago period, GEO reported $136.2 million, $0.26, and $0.33, respectively. We had forecast $595 million, $125.6 million, $0.21, and $0.21, respectively.

Overcoming ISAP. Population declines under the ISAP program continue to be a headwind, with segment revenue $42.6 million y-o-y. Secure Services revenue was off modestly, while Reentry Services, Managed Only, and Non-residential Services all saw nice increases in revenue.


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

CoreCivic, Inc. (CXW) – First Look at 3Q23 Results

Posted on by cpereira@noblefcm.com


Tuesday, November 07, 2023

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 government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 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.

Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.

3Q Results. Revenue totaled $483.7 million, up 4.2% year-over-year and up 4.3% sequentially, driven by higher populations and increased per diems. Net income was $13.9 million, or $0.12/sh versus $68.3 million, or $0.58 per share last year. Adjusted EPS was $0.14 for 3Q23 versus $0.08 for 3Q22. Adjusted EBITDA was $75.2 million, up from $68.4 million last year.

ICE Populations. Since the ending of Title 42 on May 11th, overall ICE populations are up 66% through the end of September. CoreCivic ICE populations are up by 4,729, or 84% over the same time frame. We believe this has been driven by management’s foresight in adding staff in anticipation of higher population levels. Reportedly, ICE populations have continued to rise.


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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.