THE GEO GROUP, INC. Supplemental Information
Fourth QuarterFirstQuarterand Full2024Year 2023
The GEO Group, Inc.'s ("GEO") Unaudited Reconciliation Tables and Supplemental Disclosure presented herein speaks only as of the date or period indicated, and GEO does not undertake any obligation, and disclaims any duty, to update any of this information, except as required by law. GEO's future financial performance is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect GEO's future financial results are discussed more fully in our reports on Form 10-K, Form 10-Q, and Form 8-K filed with the Securities and Exchange Commission ("SEC"). Readers are advised to refer to these reports for additional information concerning GEO.
The results presented herein are shown as of March 31, 2024.
The GEO Group, Inc. | |
4955 Technology Way | |
Boca Raton, Florida 33431 | Phone: 866-301-4436 |
1 | www.geogroup.com |
Company Profile | 3 |
Financial Summary - 1 | 4 |
Financial Summary - 2 | 5 |
Condensed Consolidated Balance Sheets | 6 |
Condensed Consolidated Statement of Operations | 7 |
Reconciliation of Net Income to EBITDA and Adjusted EBITDA, and Reconciliation of Net Income Attributable to GEO to | 8 |
Adjusted Net Income | |
Reconciliation of Net Income Attributable to GEO to Net Operating Income (NOI) | 9 |
Global Operations Profile | 10 |
Portfolio Operating Metrics | 11 |
Customer Data | 12 |
Capital Expenditures | 13 |
Debt Maturity Schedule | 14 |
Outstanding Debt | 15 |
Acquisitions/Dispositions | 16 |
Idle Facilities | 17 |
Property List | 18-22 |
Definitions | 23 |
2 | www.geogroup.com |
Company Profile
The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO's diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO's worldwide operations include the ownership and/or delivery of support services for 100 facilities totaling approximately 81,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.
GEO's mission is to develop innovative public-private partnerships with government agencies around the globe that deliver high quality, cost-efficient solutions while providing enhanced rehabilitation and community reintegration programs to the men and women entrusted to GEO's care.
REVENUE DISTRIBUTION
YTD 2024
19%
25%56%
NET OPERATING INCOME (NOI) DISTRIBUTION
YTD 2024
32%
54%
14%
OWNED AND LEASED | MANAGED ONLY | NON RESIDENTIAL AND OTHER | |||
TOTAL REVENUE | DOMESTIC | INTERNATIONAL | |||
$700
$600 | 48 | 46 | 43 | 45 | 46 | 52 | 51 | 50 | ||||
55 | ||||||||||||
52 | 52 | 51 | ||||||||||
Millions | $500 | |||||||||||
$400 | ||||||||||||
$300 | 541 | 571 | 577 | 563 | 548 | 551 | 557 | 556 | ||||
510 | 505 | 505 | 501 | |||||||||
$200 | ||||||||||||
$100 | ||||||||||||
$0 | ||||||||||||
2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 |
2024 Guidance Summary * | Low-End | Mid-Point | High-End | |||
Revenue | $ | 2,375,000 | $ | 2,425,000 | $ | 2,475,000 |
Net Income (1) | $ | 55,000 | $ | 65,000 | $ | 75,000 |
Adjusted EBITDA | $ | 485,000 | $ | 500,000 | $ | 515,000 |
Growth | $10,000 to $12,000 |
Technology | $20,000 to $25,000 |
Facility Maintenance | $45,000 to $48,000 |
Capital Expenditures $75,000 to $85,000
* In '000's except per share data
- Reflects $86 million loss on Extinguishment of Debt, pre-tax, as a result of GEO's refinancing transactions which closed on April 18,2024.
3 | www.geogroup.com |
Financial Summary
Company Profile *
Q1 2024 | Q1 2023 |
(unaudited) | (unaudited) |
Market Capitalization ** | $ | 1,785,598 | $ | 993,786 |
Share Price ** | $ | 14.12 | $ | 7.89 |
Revenues * | ||||
Owned and Leased: Secure Services | $ | 297,211 | $ | 277,066 |
Owned and Leased: Reentry Services | 39,225 | 39,358 | ||
Managed Only | 152,277 | 133,815 | ||
Electronic Monitoring and Supervision Services | 86,784 | 132,640 | ||
Non-Residential Services & Other | 30,175 | 25,330 | ||
$ | 605,672 | $ | 608,209 | |
Net Operating Income (NOI) * | ||||
Owned and Leased: Secure Services | $ | 80,369 | $ | 75,942 |
Owned and Leased: Reentry Services | 10,799 | 11,959 | ||
Managed Only | 25,114 | 13,642 | ||
Electronic Monitoring and Supervision Services | 44,696 | 72,367 | ||
Non-Residential Services & Other | 8,082 | 5,053 | ||
$ | 169,060 | $ | 178,963 | |
Net income attributable to The GEO Group, Inc. * | ||||
$ | 22,668 | $ | 28,003 | |
Adjusted EBITDA * | $ | 117,643 | $ | 130,916 |
Capital Expenditures * ** | ||||
Growth | $ | 1,140 | $ | - |
Technology | 6,729 | 2,399 | ||
Facility Maintenance | 6,468 | 10,444 | ||
$ | 14,337 | $ | 12,843 | |
- Figures in '000s, except per share data
- As of quarter-end or year-to-date as applicable
4 | www.geogroup.com |
Financial Summary
Q1 2024 | Q1 2023 | ||||
Portfolio | |||||
Owned and Leased: Secure Services | 30 | 30 | |||
Owned and Leased: Reentry Services | 34 | 35 | |||
Managed Only & Other | 26 | 26 | |||
90 | 91 | ||||
Owned and Leased: Secure Services * | |||||
Revenue Producing Beds | 35,749 | 35,749 | |||
Occupancy | 84% | 85% | |||
Compensated Mandays | 2,743,361 | 2,726,619 | |||
Square Feet | 6,158,949 | 6,082,828 | |||
Idle Facilities: | Design Capacity | - Beds | 10,632 | 8,982 | |
Square Feet | 1,872,084 | 1,784,705 | |||
Owned and Leased: Reentry Services * | |||||
Revenue Producing Beds | 5,577 | 6,839 | |||
Occupancy (3) | 75% | 56% | |||
Compensated Mandays | 381,871 | 343,529 | |||
Square Feet | 922,347 | 1,046,264 | |||
Available beds at active facilities | 320 | 490 | |||
Idle Facilities: | Design Capacity | - Beds | 789 | 2,184 | |
Square Feet | 147,968 | 228,187 | |||
Managed Only * | |||||
Revenue Producing Beds | 23,455 | 23,690 | |||
Occupancy | 96% | 95% | |||
Compensated Mandays | 2,040,309 | 2,023,997 | |||
Square Feet | 6,900,731 | 7,245,713 | |||
U.S. | 3,800,905 | 3,900,405 | |||
International | 3,099,826 | 3,345,308 | |||
Non-Residential Units ** | |||||
Day Reporting Centers (1) | 701,260 | 746,703 | |||
Electronic Monitoring and Supervision Services (2) | 33,301,711 | 41,723,598 |
- Revenue producing beds, occupancy and compensated mandays exclude Great Plains Correctional Facility, Guadalupe County Correctional Facility,
Logan Hall, Toler Hall, and Youth facilities for which GEO has a management consulting agreement, idle facilities, and projects under activation/construction. - Non-ResidentialUnits presented in the table are calculated based on number of days within the period multiplied by number of units. Excludes In-Prison
treatment participants.
- Reentry Services Non-Residential Units include home confinement populations and day reporting center participants.
- Electronic Monitoring and Supervision Services Non-Residential Units include electronic monitoring services and Intensive Supervision and Appearance Program ("ISAP") participants.
- Occupancy has increased due to a decrease in capacity primarily due to Delaney Hall being reclassified as Secured Services facility.
5 | www.geogroup.com |
Condensed Consolidated Balance Sheets *
As of | As of | |||
March 31, 2024 | December 31, 2023 | |||
(unaudited) | (unaudited) | |||
ASSETS | ||||
Cash and cash equivalents | $ | 126,497 | $ | 93,971 |
Accounts receivable, less allowance for doubtful accounts | 356,717 | 390,023 | ||
Prepaid expenses and other current assets | 48,276 | 44,511 | ||
Total current assets | $ | 531,490 | $ | 528,505 |
Restricted Cash and Investments | 141,378 | 135,968 | ||
Property and Equipment, Net | 1,929,012 | 1,944,278 | ||
Operating Lease Right-of-Use Assets, Net | 97,318 | 102,204 | ||
Deferred Income Tax Assets | 8,551 | 8,551 | ||
Intangible Assets, Net (including goodwill) | 889,535 | 891,085 | ||
Other Non-Current Assets | 87,226 | 85,815 | ||
Total Assets | $ | 3,684,510 | $ | 3,696,406 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Accounts payable | $ | 67,822 | $ | 64,447 |
Accrued payroll and related taxes | 89,160 | 64,436 | ||
Accrued expenses and other current liabilities | 196,276 | 228,059 | ||
Operating lease liabilities, current portion | 24,271 | 24,640 | ||
Current portion of finance lease obligations, and long-term debt | 43,400 | 55,882 | ||
Total current liabilities | $ | 420,929 | $ | 437,464 |
Deferred Income Tax Liabilities | 74,872 | 77,369 | ||
Other Non-Current Liabilities | 85,609 | 83,643 | ||
Operating Lease Liabilities | 77,431 | 82,114 | ||
Long-Term Debt | 1,717,048 | 1,725,502 | ||
Total Shareholders' Equity | 1,308,621 | 1,290,314 | ||
Total Liabilities and Shareholders' Equity | $ | 3,684,510 | $ | 3,696,406 |
* all figures in '000s
6 | www.geogroup.com |
Condensed Consolidated Statement of Operations *
Q1 2024 | Q1 2023 | |||
(unaudited) | (unaudited) | |||
Revenues | $ | 605,672 | $ | 608,209 |
Operating expenses | 441,675 | 433,492 | ||
Depreciation and amortization | 31,365 | 31,923 | ||
General and administrative expenses | 53,070 | 50,134 |
Operating income | 79,562 | 92,660 | ||
Interest income | 2,474 | 1,168 | ||
Interest expense | (51,295) | (54,258) | ||
Loss on extinguishment of debt | (39) | (136) | ||
Income before income taxes and equity in earnings of affiliates | 30,702 | 39,434 | ||
Provision for income taxes | 8,071 | 12,362 | ||
Equity in earnings of affiliates, net of income tax provision | 28 | 922 | ||
Net income | 22,659 | 27,994 | ||
Less: Net loss attributable to noncontrolling interests | 9 | 9 | ||
Net income attributable to The GEO Group, Inc. | $ | 22,668 | $ | 28,003 |
Weighted Average Common Shares Outstanding: | ||||
Basic | 122,497 | 121,432 | ||
Diluted | 130,987 | 125,139 | ||
Net income per Common Share Attributable to The GEO Group, Inc.** : | ||||
Basic: | ||||
Net income per share - basic | $ | 0.15 | $ | 0.19 |
Diluted: | ||||
Net income per share - diluted | $ | 0.14 | $ | 0.19 |
- All figures in '000s, except per share data
- In accordance with U.S. GAAP, diluted earnings per share attributable to GEO available to common stockholders is calculated under the if-converted method or the two-class method, whichever calculation results in the lowest diluted earnings per share amount, which may be lower than Adjusted Net Income Per Diluted Share.
7 | www.geogroup.com |
Reconciliation of Net Income to EBITDA and Adjusted EBITDA, and Reconciliation of Net Income Attributable to GEO to Adjusted Net Income *
Q1 2024 | Q1 2023 | |||
(unaudited) | (unaudited) | |||
Net Income | $ | 22,659 | $ | 27,994 |
Add: | ||||
Income tax provision ** | 8,199 | 12,541 | ||
Interest expense, net of interest income *** | 48,860 | 53,226 | ||
Depreciation and amortization | 31,365 | 31,923 | ||
EBITDA | $ | 111,083 | $ | 125,684 |
Add (Subtract): | ||||
Net loss attributable to noncontrolling interests | 9 | 9 | ||
Stock based compensation expenses, pre-tax | 5,656 | 5,578 | ||
Start-up expenses, pre-tax | 492 | - | ||
ATM equity program expenses, pre tax | 264 | - | ||
Close-out expenses, pre-tax | 488 | - | ||
Other non-cash revenue & expenses, pre-tax | (349) | (355) | ||
Adjusted EBITDA | $ | 117,643 | $ | 130,916 |
Net Income attributable to GEO | $ | 22,668 | $ | 28,003 |
Add (Subtract): | ||||
Loss on extinguishment of debt, pre-tax | 39 | 136 | ||
Start-up expenses, pre-tax | 492 | - | ||
ATM equity program expenses, pre tax | 264 | - | ||
Close-out expenses, pre-tax | 488 | - | ||
Tax effect of adjustment to net income attributable to GEO (1) | (323) | (34) | ||
Adjusted Net Income | $ | 23,628 | $ | 28,105 |
Weighted average common shares outstanding - Diluted | 130,987 | 125,139 | ||
Adjusted Net Income per Diluted share | 0.18 | 0.22 | ||
- all figures in '000s, except per share data.
- including income tax provision on equity in earnings of affiliates.
- includes loss on extinguishment of debt.
(1) Tax adjustment related to loss on extinguishment of debt, start-up expenses, ATM equity program expenses, and close-out expenses.
8 | www.geogroup.com |
Reconciliation of Net Income Attributable to GEO to Net Operating Income (NOI) *
Q1 2024 | Q1 2023 | |||
(unaudited) | (unaudited) | |||
Net Income attributable to GEO | $ | 22,668 | $ | 28,003 |
Less | ||||
Net loss attributable to noncontrolling interests | 9 | 9 | ||
Net Income | $ | 22,659 | $ | 27,994 |
Add (Subtract): | ||||
Equity in earnings of affiliates, net of income tax provision | (28) | (922) | ||
Income tax provision | 8,071 | 12,362 | ||
Interest expense, net of interest income | 48,821 | 53,090 | ||
Loss on extinguishment of debt | 39 | 136 | ||
Depreciation and amortization | 31,365 | 31,923 | ||
General and administrative expenses | 53,070 | 50,134 | ||
Net Operating Income, net of operating lease obligations | $ | 163,997 | $ | 174,717 |
Add: | ||||
Operating lease expense, real estate | 4,571 | 4,246 | ||
Start-up expenses, pre-tax | 492 | - | ||
Net Operating Income (NOI) | $ | 169,060 | $ | 178,963 |
- all figures in '000s, except per share data
9 | www.geogroup.com |
Global Operations Profile
Global Operating Portfolio by Region * | ** | |||
United States | Facilities | Current Beds | Beds 1-Yr Ago | |
Texas | 20 | 19,031 | 19,031 | |
California | 13 | 6,623 | 6,623 | |
Arizona | 4 | 5,930 | 5,930 | |
Florida | 5 | 5,751 | 5,751 | |
Georgia | 4 | 5,286 | 5,286 | |
Oklahoma | 2 | 4,622 | 4,622 | |
Indiana | 2 | 4,262 | 4,262 | |
Louisiana | 4 | 3,654 | 3,654 | |
Pennsylvania | 8 | 3,350 | 3,479 | |
Colorado | 5 | 2,860 | 2,943 | |
New Jersey | 5 | 2,362 | 3,262 | |
New Mexico | 4 | 1,984 | 2,034 | |
Michigan | 1 | 1,800 | 1,800 | |
Washington | 1 | 1,575 | 1,575 | |
Virginia | 1 | 1,536 | 1,536 | |
North Carolina | 1 | 1,450 | 1,450 | |
Alabama | 1 | 722 | 724 | |
Alaska | 6 | 705 | 730 | |
Wyoming | 1 | 342 | 342 | |
New York | 1 | 172 | 196 | |
Illinois | 2 | 170 | 170 | |
Kansas | 1 | 136 | 150 | |
Nevada | 1 | 124 | 124 | |
Utah | 1 | 115 | 115 | |
Ohio | 1 | 100 | 100 | |
South Dakota | 1 | 68 | 68 | |
United States Total: | 96 | 74,730 | 75,957 | |
International | Facilities | Current Beds | Current Beds | |
Australia | 3 | 3,501 | 3,501 | |
South Africa | 1 | 3,024 | 3,024 | |
International Total: | 4 | 6,525 | 6,525 | |
Global: | 100 | 81,255 | 82,482 | |
Global Operating Portfolio by Facility Ownership ** | ||||
Company Owned | 71 | 53,999 | 55,129 | |
Company Leased | 11 | 2,990 | 3,037 | |
Managed - Only | 18 | 24,266 | 24,316 | |
Total | 100 | 81,255 | 82,482 |
- Data includes all active faclities and idle beds
- Bed and Facility counts are show n as of March 31, 2024
10 | www.geogroup.com |
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The GEO Group Inc. published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 10:57:08 UTC.
