Tag: Security & Protection Services

CoreCivic, Inc. (CXW) – Post Call Commentary

Posted on by cpereira@noblefcm.com


Monday, February 13, 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 – Generalist 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.

Prepping For an End to Title 42. Once again, during the quarter CoreCivic continued to hire staff in anticipation of an ending of Title 42 and a surge in ICE populations. The additional expense impacted margins. Management did note that without the extra expense, guidance for 2023 would have been in the ballpark of consensus estimates for the year.

Potential New Business? Management again noted increasing interest from various states, both current clients and potential new clients, for solutions as these parties deal with a very tight labor market. With excess bed capacity available and the staff hired, CoreCivic is well positioned to pick up additional business, in our view.


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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) – Fourth Quarter and Full Year 2022 First Look

Posted on by cpereira@noblefcm.com


Thursday, February 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 – Generalist 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.

Solid 4Q22 Operating Results. CoreCivic beat expectations for 4Q22. Reported revenue was $471.4 million, compared to $472.1 million in the year ago period and our estimate of $465 million. Reported net income was $24.4 million, or $0.21 per diluted share, compared to $28 million, or $0.23 per share, last year. We had forecast net income of $14.5 million, or $0.13 per share. Adjusted EBITDA for the quarter was $87.7 million, compared to our $73.1 million estimate, and $103.2 million in 4Q21.

La Palma Normalizing, but Labor Remains a Challenge. CoreCivic substantially completed the transition of inmate populations at La Palma during the quarter, a positive. However, staffing remains a challenge, with temporary incentives, above average wage pressure, and travel costs, all impacting margin, which we anticipate will continue through at least the first quarter of 2023.


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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) – Expanding Health Services in Australia

Posted on by cpereira@noblefcm.com


Wednesday, January 11, 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, 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.

New Contract. The GEO Group was awarded a contract from the Department of Justice and Community Safety in the State of Victoria for the delivery of primary health services across 13 public prisons. The contract will commence on July 1, 2023 and is expected to generate approximately $33 million in incremental annualized revenue for GEO. We view the new contract as a nice compliment to the existing operations.

A New (Old) Business. This is a return of GEO to a business previously conducted by the Company. The Company held this contract before being forced to spin off the unit once becoming a REIT. GEO already provides these services in the facilities it manages and the new contract is just an expansion to other non-managed facilities. There should not be any “learning curve,” in our view.


Get the Full Report

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.