Movers and SHAKERS
A Quick Turnaround for Cimarron Facility
CoreCivic Inc through its subsidiaries operates as a diversified Corrections Corporation of America, or CCA is a real estate investment trust involved in the ownership and operation of private prisons. CCA mainly controls medium-security correctional and detention facilities located throughout the U.S. The company derives the vast majority of its income in the form of management revenue from medium-term contracts. CCA is compensated on a per diem rate based on the bed capacity and range of services offered at its facilities. Total revenue for the company is split fairly evenly between contracts with federal agencies, such as the Federal Bureau of Prisons and US Marshals Service, and state entities, such as the State of California Department of Corrections and Rehabilitation.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
New USMS Agreement. Yesterday, CoreCivic announced the U.S. Marshals Service (USMS) had entered into an agreement to utilize the Company's 1,692-bed Cimarron Correctional Facility. This facility was going to be idled due to decreased inmate populations from COVID and a reduced government budget in Oklahoma. The new management contract with USMS will allow the Company to transition the facility's mission without significantly disrupting operations.
Details. The new management contract commenced on September 15th and has an initial term of three years, with unlimited 24-month extension options thereafter upon mutual agreement. CoreCivic expects to begin accepting offender populations into the facility on the contract commencement date, and to incur $0.4 million to $1.5 million in start-up expenses related to the activation of the new ...
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.