1Q21 Results. CoreCivic posted revenue of $454.7 million in the first quarter of 2021, compared to $491.1 million in the same period last year. EBITDA was $41.6 million versus $99.5 million, with 1Q21 adjusted EBITDA of $96.3 million versus $100.4 million. CoreCivic reported a GAAP loss of $125.5 million or $1.05 per share. Adjusted EPS was $0.24 compared to $0.30 last year or $0.23 on a proforma basis to reflect the adoption of a C-corp structure. We had projected revenue of $470 million and EPS of $0.24.The Noise. There was significant noise in the quarter that obscured a relatively solid quarter, in our view. For example, special items included a non-cash income tax expense of $114.2 million associated with the change in corporate tax structure and a $51.7 million charge to settle shareholder litigation. The Company also incurred some $1.6 million in COVID related expenses that were not in the first quarter of 2020.Continued Debt Reduction. CoreCivic continues to reduce debt. During the first quarter, the Company saw a net reduction in debt of $85 million and the leverage ratio fell to 3.5x at quarter's end. We expect the Company to apply the approximate $120 million of net proceeds from the sale of non-core real estate assets to further reduce debt. After the end of the quarter, CoreCivic raised $450 million of new debt, of which the bulk was used to repay $250 million of debt coming due in October 2022 and $150 million of debt coming due in 2023.Call. Management will host an investor call this morning at 11am ET to discuss the quarter's results. Dial-in is 800-367-2403, ID 7487376. We will provide additional commentary and update our models following the call.Maintaining Outperform and $15 PT. We continue to believe CXW shares present a compelling risk/reward opportunity. While we wait for more clarity on the operating environment, we are maintaining our Outperform rating and $15.00 12-month price target. We continue to believe the services offered by CoreCivic can help its government partners to solve the complex issues they face. Read More >>