A Fluid Situation. The situation in the Safety segment remains fluid. Again, the key issue is the USMS. We continue to believe there does not exist an acceptable and available alternative to the private industry. On the positive side, two facilities in which the USMS is currently exiting are in-demand from various State Department of Corrections. This should help mitigate the USMS impact, at least in the near-term.Alabama. The Alabama project continues to move forward, although it has been pushed to the right due to the Barclay's situation. In addition, a lawsuit has been filed to stop the construction of the facilities. We would note again that the State is under Federal Court order to improve conditions at its facilities. Asset Sales and the Debt. The remaining non-core properties are expected to be sold by the end of the second quarter and should result in net proceeds of $120 million which can be used to either further reduce debt or be re-invested in the Alabama project. While the recent $450 million offering will increase interest costs, it also terms out overall debt and should enable the Company to repay more near-term debt over the next two years.Updated Projections. Just like in the first quarter, the second quarter will be impacted by some non-operating expenses, the major being some $17.7 million of "make whole" payments. In addition, revenue is being impacted by a swirling environment such as the overall population, daily compensation, etc. We are reducing our projections to second quarter revenue of $445 million, EPS of $0.07, and adjusted ESP of $0.18. For the full year, we are now at revenue of $1.78 billion and adjusted EPS of $0.78.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. Read More >>