- 4Q16 Net Income Attributable to GEO
of $0.66 per Diluted Share
- 4Q16 Adjusted Net Income of $0.62
per Diluted Share
- 4Q16 Normalized FFO of $0.83 per
Diluted Share
- 4Q16 AFFO of $1.04 per Diluted
Share
- Issues FY2017 EPS Guidance of
$2.05-$2.15 per Diluted Share; Normalized FFO Guidance of
$2.90-$3.00 per Diluted Share; and AFFO Guidance of $3.70-$3.80 per
Diluted Share
The GEO Group, Inc. (NYSE: GEO) (“GEO”), a fully
integrated equity real estate investment trust (“REIT”) and a
leading provider of evidence-based offender rehabilitation and
community reentry services around the globe, reported today its
financial results for the fourth quarter and full-year 2016.
Fourth Quarter 2016 Highlights
- Net Income Attributable to GEO of
$0.66 per Diluted Share
- Adjusted Net Income of $0.62 per
Diluted Share
- Net Operating Income of $143.8
million
- Normalized FFO of $0.83 per Diluted
Share
- AFFO of $1.04 per Diluted
Share
GEO reported fourth quarter 2016 net income attributable to GEO
of $49.4 million, or $0.66 per diluted share, compared to $44.1
million, or $0.59 per diluted share, for the fourth quarter 2015.
GEO’s results for the fourth quarter 2016 include approximately
$1.0 million, net of tax, related to a gain on sale of real estate
assets and approximately $2.0 million in non-recurring tax
benefits. Adjusting for these items, GEO reported adjusted net
income for the fourth quarter 2016 of $0.62 per diluted share.
GEO reported fourth quarter 2016 Normalized Funds From
Operations (“Normalized FFO”) of $61.9 million, or $0.83 per
diluted share, compared to $59.0 million, or $0.80 per diluted
share, for the fourth quarter 2015. GEO reported fourth quarter
2016 Adjusted Funds From Operations (“AFFO”) of $77.7 million, or
$1.04 per diluted share, compared to $71.6 million, or $0.97 per
diluted share, for the fourth quarter 2015. GEO reported fourth
quarter 2016 Net Operating Income (“NOI”) of $143.8 million
compared to $142.5 million for the fourth quarter 2015.
George C. Zoley, Chairman and Chief Executive Officer of GEO,
said, “We are pleased with our strong fourth quarter and year-end
results and our outlook for 2017. Our continued growth has been
driven by robust financial and operational performance across our
diversified platform of real estate, management and programmatic
services. We have been able to provide cost-effective, high quality
services for our government partners while delivering
industry-leading, evidence-based rehabilitation programs both
in-custody and in community-based settings to the men and women who
have been entrusted to our care. We remain focused on expanding the
delivery of these important programs and effectively allocating
capital to continue to enhance value for our shareholders.”
GEO reported total revenues for the fourth quarter 2016 of
$566.6 million up from $500.1 million for the fourth quarter 2015.
Fourth quarter 2016 revenues reflect $70.1 million in construction
revenues associated with the development of the 1,300-bed Ravenhall
Facility in Australia (the “Ravenhall, Australia project”) compared
to $40.1 million in construction revenues for the fourth quarter
2015.
Full-Year 2016 Highlights
- Net Income Attributable to GEO of
$2.00 per Diluted Share
- Adjusted Net Income of $2.19 per
Diluted Share
- Net Operating Income of $563.4
million
- Normalized FFO of $3.01 per Diluted
Share
- AFFO of $3.76 per Diluted
Share
GEO reported net income attributable to GEO of $148.7 million,
or $2.00 per diluted share, for the full-year 2016, compared to
$139.4 million, or $1.88 per diluted share, for the full-year 2015.
GEO’s results for the full-year 2016 reflect approximately $15.9
million, net of tax, related to the loss on extinguishment of debt
associated with GEO’s April 2016 senior note offering and tender
offer for GEO’s 6.625% senior notes which were due 2021,
approximately $1.2 million, net of tax, in start-up expenses,
approximately $1.0 million, net of tax, related to a gain on sale
of real estate assets and approximately $2.0 million in
non-recurring tax benefits. Adjusting for these items, GEO reported
adjusted net income for the full-year 2016 of $2.19 per diluted
share.
For the full-year 2016, GEO reported Normalized FFO of $224.0
million, or $3.01 per diluted share, compared to $204.3 million, or
$2.76 per diluted share, for the full-year 2015. GEO reported AFFO
for the full-year 2016 of $279.2 million, or $3.76 per diluted
share, compared to $248.4 million, or $3.36 per diluted share, for
the full-year 2015. For the full-year 2016, GEO reported NOI of
$563.4 million compared to $511.9 million for the full-year
2015.
GEO reported total revenues for the full-year 2016 of $2.18
billion up from $1.84 billion for the full-year 2015. Revenues for
the full-year 2016 reflect $252.4 million in construction revenues
associated with the development of the Ravenhall, Australia
project, compared to $107.4 million in construction revenues for
the full-year 2015.
GEO Continuum of Care – 2016 Achievements
To strengthen its commitment to being the world’s leading
provider of evidence-based rehabilitation and post-release
services, GEO announced today that it has doubled its annual
expenditure commitment to expand the delivery of its ‘GEO Continuum
of Care’ programs from $5 million to $10 million beginning in 2017.
The ‘GEO Continuum of Care’ integrates enhanced in-prison
rehabilitation programs including evidence-based treatment with
post-release support services.
During 2016, the ‘GEO Continuum of Care’ division achieved
several important milestones:
- Completed approximately 5.9 million
hours of rehabilitation programming through a diverse number of
programs
- Averaged close to 12,000 daily
participants in academic programs
- Awarded 1,849 high school equivalency
degrees
- Averaged more than 24,000 daily
participants in vocational training programs;
- Awarded 7,674 vocational training
completions
- Averaged close to 4,000 daily
participants in substance abuse treatment programs
- Awarded 8,220 substance abuse program
completions.
Community Education Centers Acquisition
GEO announced today the signing of a definitive agreement to
acquire Community Education Centers (“CEC”) for $360 million in an
all cash transaction, excluding transaction related expenses. GEO
will not assume any debt as a result of the transaction. CEC’s
operations encompass 12,000 beds nationwide.
GEO plans to integrate CEC into GEO’s existing business units of
GEO Corrections & Detention and GEO Care. Following the
acquisition, GEO will own and/or manage approximately 98,000 beds
worldwide including approximately 7,000 community reentry beds. The
transaction is expected to close the second quarter of 2017 subject
to the fulfillment of customary conditions. The transaction will be
supported by a term loan financing commitment from BNP Paribas and
borrowings under GEO’s existing Revolving Credit Facility.
The acquisition is expected to increase GEO’s total annualized
revenues by approximately $250 million. In addition, GEO
anticipates annual net synergies of approximately $5 million to be
realized over 9 to 12 months. Excluding one-time
transaction-related expenses and transitional costs, GEO expects
the acquisition to be modestly accretive in 2017 and to be 9-11%
accretive to Adjusted EBITDA post-synergies on a fully annualized
basis beginning in 2018.
2017 Financial Guidance
GEO issued its initial financial guidance for the full-year and
first quarter of 2017. GEO expects full-year 2017 total revenue to
be approximately $2.1 billion, including approximately $103 million
in construction revenue associated with GEO’s contract for the
development and operation of the Ravenhall, Australia project. GEO
expects full-year 2017 Net Income Attributable to GEO to be in a
range of $2.05 to $2.15 per diluted share. GEO expects full-year
2017 Normalized FFO in a range of $2.90 to $3.00 per diluted share
and AFFO in a range of $3.70 to $3.80 per diluted share. GEO’s
initial financial guidance for 2017 does not yet reflect the
announced acquisition of CEC, which is expected to close the second
quarter of 2017.
For the first quarter 2017, GEO expects total revenues to be in
a range of $549 million to $554 million, including approximately
$57 million in construction revenue associated with GEO’s contract
for the development and operation of the Ravenhall, Australia
project. For the first quarter 2017, GEO expects Net Income
Attributable to GEO to be in a range of $0.48 to $0.50 per diluted
share, Normalized FFO in a range of $0.70 to $0.72 per diluted
share, and AFFO in a range of $0.90 to $0.92 per diluted share.
Compared to fourth quarter 2016 results, first quarter 2017
guidance reflects approximately $0.05 to $0.06 per diluted share in
additional employment tax expense as a result of the seasonality in
unemployment taxes, which are front-loaded in the first quarter of
the year, as well as other normal fluctuations in federal
populations which impact first quarter earnings by $0.02 to $0.03
per share.
Quarterly Dividend
On February 6, 2017, GEO’s Board of Directors declared a
quarterly cash dividend of $0.70 per share. The quarterly cash
dividend will be paid on February 27, 2017 to shareholders of
record as of the close of business on February 17, 2017. The
declaration of future quarterly cash dividends is subject to
approval by GEO’s Board of Directors and to meeting the
requirements of all applicable laws and regulations. GEO’s Board of
Directors retains the power to modify its dividend policy as it may
deem necessary or appropriate in the future.
Reconciliation Tables and Supplemental Information
GEO has made available Supplemental Information which contains
reconciliation tables of Net Income Attributable to GEO to Net
Operating Income, EBITDA, and Adjusted EBITDA, and Net Income
Attributable to GEO to FFO, Normalized FFO and AFFO along with
supplemental financial and operational information on GEO’s
business segments and other important operating metrics. A
reconciliation table of Net Income Attributable to GEO to Adjusted
Net Income is also presented herein. Please see the section of this
press release below titled “Note to Reconciliation Tables and
Supplemental Disclosure - Important Information on GEO’s Non-GAAP
Financial Measures” for information on how GEO defines these
supplemental Non-GAAP financial measures and reconciles them to the
most directly comparable GAAP measures. GEO’s Reconciliation Tables
can be found herein and in GEO’s Supplemental Information which is
available on GEO’s Investor Relations webpage at
investors.geogroup.com.
Conference Call Information
GEO has scheduled a conference call and simultaneous webcast for
today at 11:00 AM (Eastern Time) to discuss GEO’s fourth quarter
and full-year 2016 financial results as well as its progress and
outlook. The call-in number for the U.S. is 1-877-250-1553 and the
international call-in number is 1-412-542-4145. In addition, a live
audio webcast of the conference call may be accessed on the Events
and Webcasts section of GEO’s investor relations webpage at
investors.geogroup.com. A replay of the webcast will be available
on the website for one year. A telephonic replay of the conference
call will be available until March 8, 2017 at 1-877-344-7529 (U.S.)
and 1-412-317-0088 (International). The participant passcode for
the telephonic replay is 10100457.
About The GEO Group
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 104 facilities totaling
approximately 87,000 beds, including projects under development,
with a growing workforce of approximately 20,500 professionals.
Note to Reconciliation Tables and Supplemental Disclosure
–
Important Information on GEO’s Non-GAAP Financial
Measures
Net Operating Income, EBITDA, Adjusted EBITDA, Funds from
Operations, Normalized Funds from Operations, Adjusted Funds from
Operations, and Adjusted Net Income are non-GAAP financial measures
that are presented as supplemental disclosures. GEO has presented
herein certain forward-looking statements about GEO's future
financial performance that include non-GAAP financial measures,
including, Net Operating Income, Adjusted EBITDA, FFO, Normalized
FFO, and AFFO. The determination of the amounts that are excluded
from these non-GAAP financial measures is a matter of management
judgment and depends upon, among other factors, the nature of the
underlying expense or income amounts recognized in a given period.
While we have provided a high level reconciliation for the guidance
ranges for full year 2017, we are unable to present a more detailed
quantitative reconciliation of the forward-looking non-GAAP
financial measures to their most directly comparable
forward-looking GAAP financial measures because management cannot
reliably predict all of the necessary components of such GAAP
measures. The quantitative reconciliation of the forward-looking
GAAP financial measures will be provided for completed annual and
quarterly periods, as applicable, calculated in a consistent manner
with the quantitative reconciliation of non-GAAP financial measures
previously reported for completed annual and quarterly periods.
Net Operating Income is defined as revenues less operating
expenses, excluding depreciation and amortization expense, general
and administrative expenses, real estate related operating lease
expense, and start-up expenses, pre-tax. Net Operating Income is
calculated as net income attributable to GEO adjusted by
subtracting net loss attributable to non-controlling interests,
equity in earnings of affiliates, net of income tax provision, and
by adding income tax (benefit) provision, interest expense, net of
interest income, loss on extinguishment of debt, depreciation and
amortization expense, general and administrative expenses, real
estate related operating lease expense, and start-up expenses,
pre-tax.
EBITDA is defined as Net Operating Income adjusted by
subtracting general and administrative expenses, real estate
related operating lease expense, and start-up expenses, pre-tax,
and by adding equity in earnings of affiliates, pre-tax. Adjusted
EBITDA is defined as EBITDA adjusted for net loss/income
attributable to non-controlling interests, stock-based compensation
expenses, pre-tax, and certain other adjustments as defined from
time to time, including for the periods presented M&A related
expenses, pre-tax, start-up expenses, pre-tax, and gain on sale of
real estate assets, pre-tax. Given the nature of our business as a
real estate owner and operator, we believe that EBITDA and Adjusted
EBITDA are helpful to investors as measures of our operational
performance because they provide an indication of our ability to
incur and service debt, to satisfy general operating expenses, to
make capital expenditures and to fund other cash needs or reinvest
cash into our business.
We believe that by removing the impact of our asset base
(primarily depreciation and amortization) and excluding certain
non-cash charges, amounts spent on interest and taxes, and certain
other charges that are highly variable from year to year, EBITDA
and Adjusted EBITDA provide our investors with performance measures
that reflect the impact to operations from trends in occupancy
rates, per diem rates and operating costs, providing a perspective
not immediately apparent from income from continuing
operations.
The adjustments we make to derive the non-GAAP measures of
EBITDA and Adjusted EBITDA exclude items which may cause short-term
fluctuations in income from continuing operations and which we do
not consider to be the fundamental attributes or primary drivers of
our business plan and they do not affect our overall long-term
operating performance. EBITDA and Adjusted EBITDA provide
disclosure on the same basis as that used by our management and
provide consistency in our financial reporting, facilitate internal
and external comparisons of our historical operating performance
and our business units and provide continuity to investors for
comparability purposes.
Funds From Operations, or FFO, is defined in accordance with
standards established by the National Association of Real Estate
Investment Trusts, or NAREIT, which defines FFO as net income/loss
attributable to common shareholders (computed in accordance with
United States Generally Accepted Accounting Principles), excluding
real estate related depreciation and amortization, excluding gains
and losses from the cumulative effects of accounting changes,
extraordinary items and sales of properties, and including
adjustments for unconsolidated partnerships and joint ventures.
Normalized Funds from Operations, or Normalized FFO, is defined as
FFO adjusted for certain items which by their nature are not
comparable from period to period or that tend to obscure GEO’s
actual operating performance, including for the periods presented
M&A related expenses, net of tax, start-up expenses, net of
tax, loss on extinguishment of debt, net of tax, and non-recurring
tax benefits.
Adjusted Funds From Operations, or AFFO, is defined as
Normalized FFO adjusted by adding non-cash expenses such as
non-real estate related depreciation and amortization, stock based
compensation expense, the amortization of debt issuance costs,
discount and/or premium and other non-cash interest, and by
subtracting recurring consolidated maintenance capital
expenditures.
Adjusted Net Income is defined as Net Income Attributable to GEO
adjusted for certain items which by their nature are not comparable
from period to period or that tend to obscure GEO’s actual
operating performance, including for the periods presented M&A
related expenses, net of tax, start-up expenses, net of tax, loss
on extinguishment of debt, net of tax, gain on sale of real estate
assets, net of tax, and non-recurring tax benefits.
Because of the unique design, structure and use of our
correctional facilities, we believe that assessing the performance
of our correctional facilities without the impact of depreciation
or amortization is useful and meaningful to investors. Although
NAREIT has published its definition of FFO, companies often modify
this definition as they seek to provide financial measures that
meaningfully reflect their distinctive operations. We have modified
FFO to derive Normalized FFO and AFFO that meaningfully reflect our
operations.
Our assessment of our operations is focused on long-term
sustainability. The adjustments we make to derive the non-GAAP
measures of Normalized FFO and AFFO exclude items which may cause
short-term fluctuations in income from continuing operations but
have no impact on our cash flows, or we do not consider them to be
fundamental attributes or the primary drivers of our business plan
and they do not affect our overall long-term operating performance.
We may make adjustments to FFO from time to time for certain other
income and expenses that do not reflect a necessary component of
our operational performance on the basis discussed above, even
though such items may require cash settlement. Because FFO,
Normalized FFO and AFFO exclude depreciation and amortization
unique to real estate as well as non-operational items and certain
other charges that are highly variable from year to year, they
provide our investors with performance measures that reflect the
impact to operations from trends in occupancy rates, per diem
rates, operating costs and interest costs, providing a perspective
not immediately apparent from income from continuing operations. We
believe the presentation of FFO, Normalized FFO and AFFO provide
useful information to investors as they provide an indication of
our ability to fund capital expenditures and expand our business.
FFO, Normalized FFO and AFFO provide disclosure on the same basis
as that used by our management and provide consistency in our
financial reporting, facilitate internal and external comparisons
of our historical operating performance and our business units and
provide continuity to investors for comparability purposes.
Additionally, FFO, Normalized FFO and AFFO are widely recognized
measures in our industry as a real estate investment trust.
Safe-Harbor Statement
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,
including statements regarding financial guidance for the first
quarter of 2017 and full year 2017, the assumptions underlying such
guidance, and statements regarding future project activations and
growth opportunities. 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 meet its financial guidance for 2017 given the
various risks to which its business is exposed; (2) GEO’s ability
to successfully close on the acquisition of CEC within the
anticipated timeframe; (3) the risk that CEC will not be integrated
successfully or that such integration may be more difficult,
time-consuming, or costly than expected; (4) the risk that
synergies from the transaction may not be fully realized or may
take longer than expected to realize; (5) the risk that the
expected increased revenues and Adjusted EBITDA may not be fully
realized or may take longer than expected to realize; (6) GEO’s
ability to declare future quarterly cash dividends and the timing
and amount of such future cash dividends; (7) GEO’s ability to
successfully pursue further growth and continue to create
shareholder value; (8) risks associated with GEO’s ability to
control operating costs associated with contract start-ups; (9)
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; (10) GEO’s ability
to win management contracts for which it has submitted proposals
and to retain existing management contracts; (11) GEO’s ability to
obtain future financing on acceptable terms; (12) GEO’s ability to
sustain company-wide occupancy rates at its facilities; (13) GEO’s
ability to access the capital markets in the future on satisfactory
terms or at all; (14) GEO’s ability to remain qualified as a REIT;
(15) the incurrence of REIT related expenses; and (16) other
factors contained in GEO’s Securities and Exchange Commission
periodic filings, including its Form 10-K, 10-Q and 8-K
reports.
Fourth quarter and full-year 2016 financial tables to
follow:
Condensed
Consolidated Statements of Operations
(Unaudited)
Q4 2016 Q4 2015 FY
2016 FY 2015 Revenues $
566,579 $ 500,127 $ 2,179,490 $ 1,843,307
Operating expenses
429,279 365,977 1,650,281 1,363,782
Depreciation and
amortization 29,030 28,129 114,916 106,756
General and
administrative expenses 40,262 39,276 148,709 137,040
Operating income 68,008 66,745 265,584
235,729 Interest income 10,109 3,645 28,496 11,578
Interest expense (34,854) (27,525) (128,718) (106,136)
Loss on extinguishment of debt - - (15,885) -
Income
before income taxes and equity in earnings of affiliates
43,263 42,865 149,477 141,171
Provision for (benefit from) income taxes (4,096) 434 7,904
7,389
Equity in earnings of affiliates, net of income tax
provision 1,983 1,584 6,925 5,533
Net income
49,342 44,015 148,498 139,315 Less:
Net loss attributable to noncontrolling interests 94 43 217 123
Net income attributable to The GEO Group, Inc. $
49,436 $ 44,058 $ 148,715
$ 139,438 Weighted Average Common
Shares Outstanding: Basic 74,141 73,808 74,043 73,696 Diluted
74,460 74,059 74,323 73,995
Income per Common Share
Attributable to The GEO Group, Inc. : Basic: Net
income per share — basic $
0.67 $
0.60 $
2.01
$
1.89 Diluted: Net income per share — diluted
$
0.66 $
0.59 $
2.00 $
1.88
Regular Dividends Declared per Common Share $ 0.65 $ 0.65 $
2.60 $ 2.51 * all figures in '000s, except per share data
Reconciliation of
Net Income Attributable to GEO to Adjusted Net
Income
(In thousands, except per share
data)(Unaudited)
Q4 2016 Q4 2015
FY 2016 FY 2015 Net Income attributable to
GEO $ 49,436 $ 44,058 $ 148,715 $ 139,438 Add: Gain on
sale of real estate assets, net of tax (952 ) - (952 ) -
Non-Recurring Tax Benefits (2,031 ) - (2,031 ) - Loss on
extinguishment of debt, net of tax - - 15,885 - Start-up expenses,
net of tax - - 1,190 4,831 M&A related expenses, net of tax - -
- 2,232
Adjusted Net Income $ 46,453
$ 44,058 $ 162,807 $
146,501 Weighted average common shares outstanding -
Diluted 74,460 74,059 74,323 73,995
Adjusted Net Income
Per Diluted Share $ 0.62 $ 0.59
$ 2.19 $ 1.98
Condensed
Consolidated Balance Sheets
(Unaudited)
As of As of December 31, 2016
December 31, 2015
ASSETS
Current Assets
Cash and cash equivalents $ 68,038 $ 59,638 Restricted cash
and investments 17,133 8,489 Accounts receivable, less allowance
for doubtful accounts 356,255 314,097 Current deferred income tax
assets - 27,914 Contract receivable, current portion 224,033 -
Prepaid expenses and other current assets 32,210 28,208
Total
current assets $
697,669 $
438,346 Restricted
Cash and Investments 20,848 20,236
Property and Equipment,
Net 1,897,241 1,916,386
Contract Receivable 219,783
174,141
Direct Finance Lease Receivable - 1,826
Non-Current Deferred Income Tax Assets 30,039 7,399
Intangible Assets, Net (including goodwill) 819,317 839,586
Other Non-Current Assets 64,512 64,307
Total Assets $
3,749,409 $
3,462,227
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities
Accounts payable $ 79,637 $ 77,523 Accrued payroll and
related taxes 55,260 48,477 Accrued expenses and other current
liabilities 131,096 135,483 Current portion of capital lease
obligations, long-term debt, and non-recourse debt 238,065 17,141
Total current liabilities $
504,058 $
278,624
Non-Current Deferred Income Tax Liabilities - 11,471
Other Non-Current Liabilities 88,656 87,694
Capital Lease
Obligations 7,431 8,693
Long-Term Debt 1,935,465
1,855,810
Non-Recourse Debt 238,842 213,098
Shareholders'
Equity 974,957 1,006,837
Total Liabilities and Shareholders'
Equity $
3,749,409 $
3,462,227 * all
figures in '000s
Reconciliation of
Net Income Attributable to GEO to FFO, Normalized FFO, and
AFFO
(Unaudited)
Q4 2016 Q4 2015
FY 2016 FY 2015 Net Income attributable to
GEO $ 49,436 $ 44,058 $ 148,715 $ 139,438 Add: Real Estate
Related Depreciation and Amortization 15,482 14,933 61,179 57,758
Gain on sale of real estate assets, net of tax (952) - (952) -
Equals: NAREIT defined FFO $
63,966 $ 58,991 $
208,942 $
197,196 Add: Non-recurring tax benefits**
(2,031) - (2,031) - Loss on extinguishment of debt, net of tax - -
15,885 - Start-up expenses, net of tax - - 1,190 4,831 M&A
related expenses, net of tax - - - 2,232
Equals: FFO,
normalized $
61,935 $ 58,991 $
223,986 $ 204,259 Add: Non-Real Estate
Related Depreciation & Amortization 13,548 13,196 53,737 48,998
Consolidated Maintenance Capital Expenditures (4,699) (5,622)
(23,419) (23,551) Stock Based Compensation Expenses 3,098 3,107
12,773 11,709 Amortization of debt issuance costs, discount and/or
premium and other non-cash interest 3,791 1,977 12,121 6,963
Equals: AFFO $
77,673 $
71,649 $
279,198 $ 248,378
Weighted average common shares outstanding - Diluted 74,460 74,059
74,323 73,995
FFO/AFFO per Share - Diluted
Normalized FFO Per Diluted Share $
0.83 $
0.80 $
3.01 $ 2.76 AFFO Per
Diluted Share $
1.04 $ 0.97 $
3.76
$ 3.36 Regular Common Stock Dividends per
common share $
0.65 $ 0.65 $
2.60
$ 2.51 * all figures in '000s, except per
share data ** adjusmtent to tax provision
Reconciliation of
Net Income Attributable to GEO toNet Operating Income, EBITDA and
Adjusted EBITDA(Unaudited)
Q4 2016 Q4
2015 FY 2016 FY 2015 Net income
attributable to GEO
$ 49,436
$ 44,058 $ 148,715
$ 139,438 Less Net loss attributable to noncontrolling
interests 94 43 217 123 Net Income
$ 49,342 $
44,015 $
148,498 $ 139,315 Add
(Subtract): Equity in earnings of affiliates, net of income tax
provision (1,983) (1,584) (6,925) (5,533) Income tax provision
(4,096) 434 7,904 7,389 Interest expense, net of interest income
24,745 23,880 100,222 94,558 Loss on extinguishment of debt - -
15,885 - Depreciation and amortization 29,030 28,129 114,916
106,756 General and administrative expenses 40,262 39,276 148,709
137,040
Net Operating Income, net of operating lease
obligations $ 137,300 $ 134,150
$ 529,209 $ 479,525 Add:
Operating lease expense, real estate 6,505 8,397 32,232 27,765
Start-up expenses, pre-tax - - 1,939 4,658
Net Operating Income
(NOI) $ 143,805 $ 142,547 $
563,380 $ 511,948 Subtract (Add):
General and administrative expenses 40,262 39,276 148,709 137,040
Operating lease expense, real estate 6,505 8,397 32,232 27,765
Start-up expenses, pre-tax - - 1,939 4,658 Equity in earnings of
affiliates, pre-tax (1,957) (1,910) (9,266) (7,571)
EBITDA
$ 98,995 $ 96,784 $
389,766 $ 350,056 Adjustments Net loss
attributable to noncontrolling interests 94 43 217 123 Stock based
compensation expenses, pre-tax 3,098 3,107 12,773 11,709 Start-up
expenses, pre-tax - - 1,939 4,658 M&A related expenses, pre-tax
- - - 2,174 Gain on sale of real estate assets, pre-tax (952) -
(952) -
Adjusted EBITDA $
101,235 $ 99,934 $ 403,743
$ 368,720 * all figures in '000s
2017
Outlook/Reconciliation(In thousands, except per share
data)(Unaudited)
FY 2017
Net Income Attributable to GEO $ 151,000 to $ 160,000
Real Estate Related Depreciation and Amortization 65,000
65,000
Funds from Operations (FFO) $ 216,000
to
$ 225,000 Adjustments - -
Normalized Funds from Operations $ 216,000 to
$ 225,000 Non-Real Estate Related
Depreciation and Amortization 56,000 56,000
Consolidated
Maintenance Capex (25,000 ) (25,000 )
Non-Cash Stock Based
Compensation and Non-Cash Interest Expense 29,000 29,000
Adjusted Funds From Operations (AFFO) $
276,000 to
$ 285,000 Net Cash
Interest Expense 90,000 90,000
Consolidated Maintenance
Capex 25,000 25,000
Income Taxes 17,000 17,000
Adjusted EBITDA $ 408,000 to
$
417,000 G&A Expenses 151,000 151,000
Non-Cash Stock Based Compensation (14,500 ) (14,500 )
Equity in Earnings of Affiliates (6,000 ) (6,000 )
Real
Estate Related Operating Lease Expense 26,000 26,000
Net
Operating Income $ 564,500 to
$
573,500 FFO Per Diluted Share (Normalized)
$ 2.90 to
$ 3.00 AFFO Per Diluted
Share $ 3.70 to
$ 3.80 Weighted
Average Common Shares Outstanding-Diluted 74,500 to 75,000
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170222005724/en/
The GEO Group, Inc.Pablo E. Paez, 866-301-4436Vice President,
Corporate Relations
Geo (NYSE:GEO)
Historical Stock Chart
From Apr 2024 to May 2024
Geo (NYSE:GEO)
Historical Stock Chart
From May 2023 to May 2024