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    Brian Violino • Wedbush Securities Inc.

    Brian Violino's questions to CoreCivic Inc (CXW) leadership

    Brian Violino's questions to CoreCivic Inc (CXW) leadership • Q3 2024

    Question

    Brian Violino asked about the possibility of new permanent construction if ICE's needs exceed current capacity, notable differences in the new Alternatives to Detention (ATD) RFI, and CoreCivic's strategic approach to the ATD contract renewal.

    Answer

    CEO Damon T. Hininger and CFO David Garfinkle stated that with approximately 13,000 beds in idle facilities, new construction is not an immediate consideration, though they have the capability to lease third-party facilities for temporary capacity. Regarding the ATD RFI, Hininger interpreted the inclusion of an Industry Day as a clear signal that ICE wants to engage multiple vendors to prepare for potential changes in the program's scale and mission. He emphasized that CoreCivic is significantly better prepared for the bid now due to substantial investments in personnel, competency, and R&D over the past 24-36 months.

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    Brian Violino's questions to Geo Group Inc (GEO) leadership

    Brian Violino's questions to Geo Group Inc (GEO) leadership • Q3 2024

    Question

    Brian Violino of Wells Fargo Securities inquired about the potential trend of Net Operating Income (NOI) margins for the ISAP segment if participant counts scale into the millions and asked for details on the size and margins of the air services opportunity.

    Answer

    CEO Brian Evans stated that ISAP margins depend on the mix of services and technology used by ICE but expects them to be consistent with current levels or potentially improve. Executive Chairman George Zoley added that, in general, they see a theoretical potential for a doubling of all services, including transportation, contingent on Congressional funding, which might not be finalized until after the new administration is in place.

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    Brian Violino's questions to Redwood Trust Inc (RWT) leadership

    Brian Violino's questions to Redwood Trust Inc (RWT) leadership • Q3 2024

    Question

    Brian Violino from Wedbush Securities sought clarity on the outlook for Net Interest Income (NII), given the negative impact from a reduced accrual rate on the bridge portfolio versus the positive impact from recent capital deployment.

    Answer

    CFO Brooke Carillo explained that the positive NII impact from the $157 million of capital deployed in Q3 is expected to more than offset the headwind from bridge loan modifications. She also noted that resolving a significant portion of focused assets by early 2025 should provide a material boost to EAD and capital available for redeployment.

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