The GEO Group Awarded 10-Year Contracts by the Federal Bureau of Prisons for 3,532 Existing Beds in Big Spring, Texas
May 26 2017 - 6:55AM
Business Wire
The GEO Group (NYSE: GEO) (“GEO”) announced today that it
has been awarded two ten-year contracts, inclusive of renewal
option periods, by the Federal Bureau of Prisons (“BOP”) for the
continued housing of criminal aliens under the custody of the BOP
at the company-owned 1,800-bed Big Spring Facility and the
company-owned 1,732-bed Flight Line Facility, which on a combined
basis were previously referred to as the Big Spring Correctional
Center in Texas.
The two ten-year contracts were awarded to GEO under a
long-standing procurement commonly referred to as Criminal Alien
Requirement (CAR) 16, which was issued by the BOP in 2015. The
contracts are expected to generate total combined revenues of
approximately $664 million over their full ten-year terms, and
their expected financial contribution in 2017 is in-line with the
assumptions which were included in GEO’s most recently issued
financial guidance.
“We are very appreciative of the continued confidence placed in
our company by the Federal Bureau of Prisons,” said George C.
Zoley, GEO’s Chairman and Chief Executive Officer.
GEO has had a long standing public-private partnership with the
BOP that dates back to the 1990s. GEO’s facilities are highly rated
and provide high-quality services in safe, secure, and humane
residential environments.
“We’re pleased to have been able to strengthen our long-standing
partnership with the BOP with these important contract awards. Our
Big Spring and Flight Line Facilities will play an important role
in helping the agency meet its long-term need for high quality,
cost-effective services that comply with the BOP’s mandated
standards,” added Mr. Zoley.
About The GEO Group, Inc.
The GEO Group, Inc. (NYSE: GEO) is the first fully integrated
equity real estate investment trust specializing in the design,
financing, development, and operation of correctional, detention,
and community reentry facilities around the globe. GEO is the
world's leading provider of diversified correctional, detention,
community reentry, and electronic monitoring services to government
agencies worldwide with operations in the United States, Australia,
South Africa, and the United Kingdom. GEO's worldwide operations
include the ownership and/or management of 143 facilities totaling
approximately 100,000 beds, including projects under development,
with a growing workforce of approximately 23,500 professionals.
Forward-Looking Statements
This press release contains forward-looking statements regarding
future events and future performance of GEO that involve risks and
uncertainties that could materially affect actual results. Factors
that could cause actual results to vary from current expectations
and forward-looking statements contained in this press release
include, but are not limited to: (1) GEO’s ability to declare
future quarterly cash dividends and the timing and amount of such
future cash dividends; (2) GEO’s ability to successfully pursue
further growth and continue to create shareholder value; (3) risks
associated with GEO’s ability to control operating costs associated
with contract start-ups; (4) GEO’s ability to timely open
facilities as planned, profitably manage such facilities and
successfully integrate such facilities into GEO’s operations
without substantial costs; (5) GEO’s ability to win management
contracts for which it has submitted proposals and to retain
existing management contracts; (6) GEO’s ability to obtain future
financing on acceptable terms; (7) GEO’s ability to sustain
company-wide occupancy rates at its facilities; (8) GEO’s ability
to access the capital markets in the future on satisfactory terms
or at all; (9) GEO’s ability to remain qualified as a REIT; (10)
the incurrence of REIT related expenses; and (11) other factors
contained in GEO’s Securities and Exchange Commission periodic
filings, including its Form 10-K, 10-Q and 8-K reports.
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version on businesswire.com: http://www.businesswire.com/news/home/20170526005095/en/
The GEO Group, Inc.Pablo E. Paez, 1-866-301-4436Vice
President, Corporate Relations
Geo (NYSE:GEO)
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