Capital Allocation. Management noted the need to address the credit facility, with a goal of reducing the size of the line and extending the maturity, prior to committing to returning capital to shareholders. We anticipate actions such as share repurchases could be implemented by the end of the second quarter next year.New Business? CXW remains in negotiations for the West Tennessee facility. Arizona remains a potential new award. Experiencing their own labor issues, some states have contacted CoreCivic about taking inmates. Over at ICE, we continue to believe there could be a significant increase in populations once Title 42 is rescinded.Staffing. A familiar refrain from companies these days is the difficulty in hiring staff. CoreCivic is exploring a host of alternatives, including pay raises, bonuses, expanded benefits, to attract staff. As a private entity, CoreCivic can move faster than its government counterparts, but the ultimate impact on margins is still unknown.Updated Projections. Fourth quarter results will be negatively impacted by additional interest expense and increased operating costs. For the fourth quarter we are now projecting revenue of $474 million, compared to our previous $460 million. Fourth quarter adjusted EPS is now projected at $0.26, compared to a previous $0.21. For the full year, we are now at revenue of $1.86 billion and adjusted EPS of $1.03.Maintaining Outperform and $15 PT. We continue to believe CXW shares present a compelling risk/reward opportunity. We believe the services offered by CoreCivic are needed by its government partners to solve the complex issues they face. We are maintaining our Outperform rating and $15.00 12-month price target. At our target, CXW shares would trade at 14.6x our 2021 adjusted EPS estimate, 8.2x our 2021 AFFO estimate, 7.2x adjusted EBITDA, and 1.5x revenue. Read More >>