Movers and SHAKERS
Thursday, May 7, 2020
Solid First Quarter. What's Next?
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.
1Q20 Results. Revenue came in at $491.1 million up 1.5% over the first quarter of 2019, and adjusted EPS was $0.30 versus $0.42 last year. We had forecast $476 million and $0.26, respectively. Normalized FFO was $0.54 per share and AFFO came in at $0.58 per share compared to $0.64 and $0.63, respectively, last year. We were at $0.52 and $0.53. Recall, EPS was expected to decline as populations, particularly for ICE, were expected to decline even before the COVID crisis.
COVID Response. Operationally, in response to the crisis, CoreCivic has taken a number of measures to conform with guidance from its government partners and public health officials for prevention and addressing positive COVID cases. The Company also announced in April bonuses for every frontline employee as well as an updated leave policy. The Company also offered idle bed capacity at no cost to communities. While these measures will impact operating costs in the short-term, the measures should help the Company exit the...
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.