The bottleneck is inside and being paid away

CoreCivic, Inc. (CXW) — this company's answers

The model's full reasoning — Q3 2021 call → NOWe need answer YES/NO. Need evaluate based only transcript. Need determine if management conveys main thing standing between company and meaningfully more business right now is company's own capability (capacity, people, facilities, staffing) rather than shortage of demand, and already spending real money/effort to remove internal limit, with business waiting visible today. Transcript: They discuss staffing challenges, increasing staffing levels in anticipation of higher utilization rates. "we are leaning way forward, on increasing our staffing levels in anticipation of higher utilization rates of our partners. This of course will likely have a material impact on margins, as we go into 2022." "we have responded... aggressive hiring and retention strategies... increasing wages, sign-on and retention bonuses..." "Our government partners have been very collaborative... supporting our request for per diem increases..." "across the company this year, we have provided the largest wage increases..." "we are committed to utilizing necessary resources to address this challenge." Later: "We also anticipate higher staffing levels, as we returned our correctional detention and reentry facilities to normalized pre pandemic operations. Longer term, as we look toward 2022, we will endeavor to higher in anticipation of increases in occupancy, which could have a negative impact on our margins at least until we experience further increases in occupancy." Also "Many of our facilities continue to operate with pandemic-related capacity and operating restrictions... impacting margins." They see occupancy increasing, USMS, ICE potential. They have staffing challenges. Is there demand pressing in? They say "During third quarter we did see many of our state customers increased their utilization... contributed to modest increases in occupancy." "As courtroom operations gradually reopened and operations normalized, we anticipate this trend in utilization to continue." "we are leaning way forward, on increasing our staffing levels in anticipation of higher utilization rates of our partners." That suggests demand expected not necessarily current pressing. But also "Our government partners are experiencing same staffing challenges, which has contributed to some of per diem increases..." "Marshals populations increased." "ICE detainee populations doubled during first half of 2021...

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