The GEO Group Signs Contracts With U.S. Immigration & Customs Enforcement for Five Facilities in California Totaling 4,490 Beds
December 23 2019 - 6:55AM
Business Wire
The GEO Group (NYSE:GEO) (“GEO”) announced today the
signing of two new contracts with U.S. Immigration and Customs
Enforcement (“ICE”) for five company-owned facilities in California
totaling 4,490 beds. The contracts will have terms of 15 years,
inclusive of two five-year options, effective December 20,
2019.
The contracts cover two existing, company-owned facilities
currently operated by GEO on behalf of ICE: the 1,940-bed Adelanto
ICE Processing Center and the 400-bed Mesa Verde ICE Processing
Center. The contracts also incorporate three other company-owned
facilities: the 700-bed Central Valley MCCF, the 750-bed Desert
View MCCF, and the 700-bed Golden State MCCF, as facility
annexes.
On a combined basis, the contracts are expected to generate over
$200 million in annualized revenues for GEO and will support more
than 1,200 full-time jobs.
“We’re pleased to have been able to build on our long-standing
partnership with ICE to help the agency meet its need for
processing center beds in California, which comply with the Federal
government’s performance-based national detention standards,” said
George C. Zoley, GEO’s Chairman and Chief Executive Officer.
GEO has had a long-standing private-public partnership with the
federal government that dates back to the 1980s. GEO’s facilities
are highly rated and provide high-quality, culturally responsive
services in safe and humane residential environments, which meet
the needs of the individuals in the care of federal immigration
authorities.
The GEO Group (NYSE: GEO) is
the first fully integrated equity real estate investment trust
specializing in the design, financing, development, and operation
of secure facilities, processing centers, and community reentry
centers in the United States, Australia, South Africa, and the
United Kingdom. GEO is a leading provider of enhanced in-custody
rehabilitation, post-release support, electronic monitoring, and
community-based programs. GEO’s worldwide operations include the
ownership and/or management of 130 facilities totaling
approximately 96,000 beds, including projects under development,
with a growing workforce of approximately 23,000
professionals.
This press release contains forward-looking statements regarding
future events and the 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
complete the transition of its three company-owned modified
community correctional facilities in California under the new
contracts with ICE; (2) GEO’s ability to meet its estimate for
annualized revenues for the new ICE contracts in California; (3)
GEO’s ability to successfully pursue further growth and continue to
enhance shareholder value; (4) GEO’s ability to control operating
costs associated with contract start-ups; (5) 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; (6) GEO’s ability to retain
the contracts through the expiration of the options; (7) GEO’s
ability to sustain company-wide occupancy rates at its facilities;
and (8) other factors contained in GEO’s Securities and Exchange
Commission filings, including its Form 10-K, 10-Q and 8-K
reports.
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version on businesswire.com: https://www.businesswire.com/news/home/20191223005099/en/
Pablo E. Paez 1-866-301-4436 Executive Vice President, Corporate
Relations
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