- 2Q19 Net Income Attributable to GEO of $0.35 per diluted
share
- 2Q19 Adjusted Net Income of $0.41 per diluted share
- 2Q19 AFFO of $0.70 per diluted share
- Updated FY19 guidance for Net Income Attributable to GEO of
$1.40-$1.44 per diluted share and Adjusted Net Income of $1.53 to
$1.57 per diluted share
- Updated FY19 AFFO guidance of $2.69-$2.73 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 second
quarter of 2019.
Second Quarter 2019 Highlights
- Net Income Attributable to GEO of $41.9
million or $0.35 per diluted share
- Adjusted Net Income of $0.41 per diluted
share
- Net Operating Income of $169.2
million
- Normalized FFO of $0.56 per diluted
share
- AFFO of $0.70 per diluted share
GEO reported second quarter 2019 net income attributable to GEO
of $41.9 million, or $0.35 per diluted share, compared to $37.4
million, or $0.31 per diluted share, for the second quarter 2018.
GEO reported total revenues for the second quarter 2019 of $614.0
million up from $583.5 million for the second quarter 2018. Second
quarter 2019 results reflect $2.6 million in start-up expenses,
pre-tax, and a $5.7 million loss on the extinguishment of debt,
pre-tax, related to the recent amendment and extension of GEO’s
senior revolving credit facility and the recent refinancing of
non-recourse senior secured debt associated with the development of
the Ravenhall Correctional Centre in Australia. Excluding these
items, GEO reported second quarter 2019 Adjusted Net Income of
$49.4 million, or $0.41 per diluted share.
GEO reported second quarter 2019 Normalized Funds From
Operations (“Normalized FFO”) of $66.6 million, or $0.56 per
diluted share, compared to $57.7 million, or $0.48 per diluted
share, for the second quarter 2018. GEO reported second quarter
2019 Adjusted Funds From Operations (“AFFO”) of $83.4 million, or
$0.70 per diluted share, compared to $72.2 million, or $0.60 per
diluted share, for the second quarter 2018.
George C. Zoley, Chairman and Chief Executive Officer of GEO,
said, “We are pleased with our strong quarterly performance and our
outlook for the balance of the year, which reflect strong
fundamentals and growing earnings. We are scheduled to activate
5,700 beds in the second half of the year, including 4,600
previously idle beds. We are proud of the success of our GEO
Continuum of Care enhanced rehabilitation and post-release
programs. We remain focused on effectively allocating capital. We
believe that our current dividend payment is supported by
predictable cash flows, and we expect to apply our increasing
excess cash towards paying down debt.”
First Six Months 2019 Highlights
- Net Income Attributable to GEO of $82.6 million or $0.69 per
diluted share
- Adjusted Net Income of $0.77 per diluted share
- Net Operating Income of $331.0 million
- Normalized FFO of $1.06 per diluted share
- AFFO of $1.37 per diluted share
For the first six months of 2019, GEO reported net income
attributable to GEO of $82.6 million, or $0.69 per diluted share,
compared to $72.4 million, or $0.60 per diluted share, for the
first six months of 2018. GEO reported total revenues for the first
six months of 2019 of $1.22 billion up from $1.15 billion for the
first six months of 2018. In addition to the aforementioned items
reflected in results for the second quarter 2019, results for the
first six months of 2019 reflect a $1.5 million loss on real estate
assets. Excluding all of these items, GEO reported Adjusted Net
Income of $91.6 million, or $0.77 per diluted share, for the first
six months of 2019.
GEO reported Normalized Funds From Operations (“Normalized FFO”)
for the first six months of 2019 of $126.9 million, or $1.06 per
diluted share, compared to $110.3 million, or $0.91 per diluted
share, for the first six months of 2018. GEO reported Adjusted
Funds From Operations (“AFFO”) for the first six months of 2019 of
$163.7 million, or $1.37 per diluted share, compared to $142.0
million, or $1.17 per diluted share, for the first six months of
2018.
2019 Financial Guidance
GEO updated its initial financial guidance for the full-year and
issued financial guidance for the third and fourth quarters of
2019.
GEO expects full-year 2019 total revenue to be approximately
$2.47 billion. GEO expects full-year 2019 Net Income Attributable
to GEO to be in a range of $1.40-$1.44 per diluted share and
Adjusted Net Income to be in a range of $1.53-$1.57 per diluted
share. GEO expects full-year 2019 AFFO to be in a range of
$2.69-$2.73 per diluted share and Adjusted EBITDAre to be in a
range of $486 million to $491 million.
For the third quarter 2019, GEO expects total revenues to be in
a range of $615 million to $620 million. GEO expects third quarter
2019 Net Income Attributable to GEO to be in a range of $0.33 to
$0.35 per diluted share and Adjusted Net Income to be in a range of
$0.37 to $0.39 per diluted share. GEO expects third quarter 2019
AFFO to be in a range of $0.66 to $0.68 per diluted share.
For the fourth quarter 2019, GEO expects total revenues to be in
a range of $630 million to $635 million. GEO expects fourth quarter
2019 Net Income Attributable to GEO to be in a range of $0.37 to
$0.39 per diluted share and Adjusted Net Income to be in a range of
$0.39 to $0.41 per diluted share. GEO expects fourth quarter 2019
AFFO to be in a range of $0.66 to $0.68 per diluted share.
Quarterly Dividend
On July 9, 2019, GEO’s Board of Directors declared a quarterly
cash dividend of $0.48 per share. The quarterly cash dividend was
paid on July 26, 2019 to shareholders of record as of the close of
business on July 19, 2019. 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, Net Income to EBITDAre (EBITDA for real estate)
and Adjusted EBITDAre (Adjusted EBITDA for real estate), and Net
Income Attributable to GEO to FFO, Normalized FFO and AFFO, along
with supplemental financial and operational information on GEO’s
business and other important operating metrics, and in this press
release, Net Income Attributable to GEO to Adjusted Net Income. The
reconciliation tables are also presented herein. Please see the
section 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 available
on GEO’s investor 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 second quarter
2019 financial results as well as its 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
under the News, Events and Reports tab 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 August 13, 2019 at
1-877-344-7529 (U.S.) and 1-412-317-0088 (International). The
participant passcode for the telephonic replay is 10133683.
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 facilities, processing centers, and
community reentry centers in the United States, Australia, South
Africa, and the United Kingdom. GEO is the world’s leading
provider of enhanced offender rehabilitation, post-release support,
electronic monitoring, and community-based programs. GEO's worldwide operations include the
ownership and/or management of 133 facilities totaling
approximately 97,000 beds, including projects under development,
with a growing workforce of approximately 23,000
professionals.
Note to Reconciliation Tables and Supplemental Disclosure
–
Important Information on GEO’s Non-GAAP Financial
Measures
Net Operating Income, EBITDAre, Adjusted EBITDAre, 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 Adjusted Net Income, Adjusted EBITDAre, Net Operating
Income, FFO, Normalized FFO, and AFFO. The determination of the
amounts that are included or 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 2019, 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 non-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 adjusted by subtracting equity in earnings
of affiliates, net of income tax provision, and by adding income
tax (benefit) provision, interest expense, net of interest income,
depreciation and amortization expense, general and administrative
expenses, real estate related operating lease expense, gain/loss on
real estate assets, pre-tax, and start-up expenses, pre-tax.
EBITDAre (EBITDA for real estate) is defined as net income
adjusted by adding provisions for income tax, interest expense, net
of interest income, depreciation and amortization, and gain/loss on
real estate assets, pre-tax. Adjusted EBITDAre (Adjusted EBITDA for
real estate) is defined as EBITDAre adjusted for net loss
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 start-up
expenses, pre-tax, legal related expenses, pre-tax, and escrow
releases, pre-tax. Given the nature of our business as a real
estate owner and operator, we believe that EBITDAre and Adjusted
EBITDAre 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, EBITDAre and Adjusted EBITDAre 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 net income
attributable to GEO.
The adjustments we make to derive the non-GAAP measures of
EBITDAre and Adjusted EBITDAre 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. EBITDAre and Adjusted
EBITDAre 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
net Tax Cuts and Jobs Act (“TCJA”) impact, loss on the
extinguishment of debt, start-up expenses, legal related expenses,
escrow releases, and tax effect of adjustments to FFO.
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 net TCJA
impact, gain/loss on real estate assets, loss on the extinguishment
of debt, start-up expenses, legal related expenses, escrow
releases, and tax effect of adjustments to Net Income Attributable
to GEO.
Because of the unique design, structure and use of our
correctional facilities, processing centers, and reentry centers,
we believe that assessing the performance of our correctional
facilities, processing centers, and reentry centers 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 net income attributable to GEO 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 Net Income Attributable to GEO.
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 full
year, third quarter, and fourth quarter of 2019, the assumptions
underlying such guidance, the continued expansion and success of
our GEO Continuum of Care, and statements regarding growth
opportunities and allocation of capital to enhance long-term value
for our shareholders and applying excess cash towards paying down
debt. 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 2019 given the various risks to which
its business is exposed; (2) GEO’s ability to declare future
quarterly cash dividends and the timing and amount of such future
cash dividends; (3) GEO’s ability to successfully pursue further
growth and continue to create shareholder value; (4) GEO’s ability
to obtain future financing on acceptable terms; (5) GEO’s ability
to access the capital markets in the future on satisfactory terms
or at all; (6) risks associated with GEO’s ability to control
operating costs associated with contract start-ups; (7) 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; (8) GEO’s ability to
win management contracts for which it has submitted proposals and
to retain existing management contracts; (9) GEO’s ability to
sustain company-wide occupancy rates at its facilities; (10) the
impact of any future regulations or guidance on the Tax Cuts and
Jobs Act; (11) GEO’s ability to remain qualified as a REIT; (12)
the incurrence of REIT related expenses; and (13) other factors
contained in GEO’s Securities and Exchange Commission periodic
filings, including its Form 10-K, 10-Q and 8-K reports.
Second quarter and first six months of 2019 financial tables
to follow:
Condensed
Consolidated Balance Sheets*
(Unaudited)
As of As of June 30, 2019 December 31,
2018 (unaudited) (unaudited)
ASSETS Cash and cash
equivalents
$
21,561
$
31,255
Restricted cash and cash equivalents
56,343
51,678
Accounts receivable, less allowance for doubtful accounts
394,720
445,526
Contract receivable, current portion
13,944
15,535
Prepaid expenses and other current assets
46,316
57,768
Total current assets
$
532,884
$
601,762
Restricted Cash and Investments
27,358
22,431
Property and Equipment, Net
2,148,225
2,158,610
Contract Receivable
365,208
368,178
Operating Lease Right-of-Use Assets, Net
132,016
-
Assets Held for Sale
4,607
2,634
Deferred Income Tax Assets
29,924
29,924
Intangible Assets, Net (including goodwill)
997,579
1,008,719
Other Non-Current Assets
70,337
65,860
Total Assets
$
4,308,138
$
4,258,118
LIABILITIES AND SHAREHOLDERS' EQUITY Accounts
payable
$
91,257
$
93,032
Accrued payroll and related taxes
71,369
76,009
Accrued expenses and other current liabilities
189,083
204,170
Operating lease liabilities, current portion
32,077
-
Current portion of finance lease obligations, long-term debt, and
non-recourse debt
25,866
332,027
Total current liabilities
$
409,652
$
705,238
Deferred Income Tax Liabilities
13,681
13,681
Other Non-Current Liabilities
81,812
82,481
Operating Lease Liabilities
102,844
-
Finance Lease Liabilities
3,779
4,570
Long-Term Debt
2,354,526
2,397,227
Non-Recourse Debt
320,306
15,017
Total Shareholders' Equity
1,021,538
1,039,904
Total Liabilities and Shareholders' Equity
$
4,308,138
$
4,258,118
* all figures in '000s
Condensed
Consolidated Statements of Operations*
(Unaudited)
Q2 2019
Q2 2018
YTD 2019
YTD 2018
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues
$
613,966
$
583,509
$
1,224,633
$
1,148,426
Operating expenses
453,168
437,797
910,165
864,506
Depreciation and amortization
32,352
31,313
64,821
63,239
General and administrative expenses
47,271
47,448
93,695
89,280
Operating income
81,175
66,951
155,952
131,401
Interest income
8,045
8,667
16,441
17,766
Interest expense
(38,932
)
(36,345
)
(79,212
)
(72,214
)
Loss on extinguishment of debt
(5,741
)
(574
)
(5,741
)
(574
)
Income before income taxes and equity in earnings of
affiliates
44,547
38,699
87,440
76,379
Provision for income taxes
4,532
3,715
9,372
8,470
Equity in earnings of affiliates, net of income tax
provision
1,821
2,341
4,417
4,336
Net income
41,836
37,325
82,485
72,245
Less: Net loss attributable to noncontrolling
interests
78
96
134
163
Net income attributable to The GEO Group, Inc.
$
41,914
$
37,421
$
82,619
$
72,408
Weighted Average Common Shares Outstanding:
Basic
119,168
120,274
118,972
121,017
Diluted
119,544
120,659
119,517
121,461
Net income per Common Share Attributable to The GEO
Group, Inc. : Basic: Net income per share — basic
$
0.35
$
0.31
$
0.69
$
0.60
Diluted: Net income per share — diluted
$
0.35
$
0.31
$
0.69
$
0.60
$
0.48
$
0.47
$
0.96
$
0.94
* 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)
Adjusted Net Income Reconciliation Q2 2019
Q2 2018 YTD 2019 YTD 2018 Net Income
attributable to GEO
$
41,914
$
37,421
$
82,619
$
72,408
Add (Subtract): Net Tax Cuts and Jobs Act Impact
-
-
-
304
Loss on extinguishment of debt
5,741
574
5,741
574
Start-up expenses, pre-tax
2,641
98
2,641
98
Legal related expenses, pre-tax
-
4,500
-
4,500
Escrow releases, pre-tax
-
(2,273
)
-
(2,273
)
Gain/Loss on real estate assets, pre-tax
-
590
1,497
492
Tax effect of adjustments to Net Income attributable to GEO
(853
)
(713
)
(899
)
(713
)
Adjusted Net Income
$
49,443
$
40,197
$
91,599
$
75,390
Weighted average common shares outstanding - Diluted
119,544
120,659
119,517
121,461
Adjusted Net Income Per Diluted Share
$
0.41
$
0.33
$
0.77
$
0.62
Reconciliation of
Net Income Attributable to GEO to FFO, Normalized FFO, and
AFFO*
(Unaudited)
Q2 2019
Q2 2018
YTD 2019
YTD 2018
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Net Income attributable to GEO
$
41,914
$
37,421
$
82,619
$
72,408
Add (Subtract): Real Estate Related Depreciation and Amortization
17,937
17,509
36,039
34,897
Gain/Loss on real estate assets
-
590
1,497
492
Equals: NAREIT defined FFO
$
59,851
$
55,520
$
120,155
$
107,797
Add (Subtract): Net Tax Cuts and Jobs Act Impact
-
-
-
304
Loss on extinguishment of debt, pre-tax
5,741
574
5,741
574
Start-up expenses, pre-tax
1,874
98
1,874
98
Legal related expenses, pre-tax
-
4,500
-
4,500
Escrow releases, pre-tax
-
(2,273
)
-
(2,273
)
Tax Effect of adjustments to Funds From Operations **
(853
)
(713
)
(899
)
(713
)
Equals: FFO, normalized
$
66,613
$
57,706
$
126,871
$
110,287
Add (Subtract): Non-Real Estate Related Depreciation &
Amortization
14,415
13,804
28,782
28,342
Consolidated Maintenance Capital Expenditures
(5,515
)
(6,076
)
(9,149
)
(11,399
)
Stock Based Compensation Expenses
5,454
4,960
12,180
10,787
Amortization of debt issuance costs, discount and/or premium and
other non-cash interest
2,460
1,855
5,023
3,992
Equals: AFFO
$
83,427
$
72,249
$
163,707
$
142,009
Weighted average common shares outstanding - Diluted
119,544
120,659
119,517
121,461
FFO/AFFO per Share - Diluted Normalized FFO
Per Diluted Share
$
0.56
$
0.48
$
1.06
$
0.91
AFFO Per Diluted Share
$
0.70
$
0.60
$
1.37
$
1.17
Regular Common Stock Dividends per common
share
$
0.48
$
0.47
$
0.96
$
0.94
* all figures in '000s, except per share data ** tax
adjustments related to Gain/Loss on real estate assets, Debt
extinguishment, Start-up expenses, Legal expenses and Escrow
releases
Reconciliation of
Net Income Attributable to GEO to
Net Operating
Income, EBITDAre and Adjusted EBITDAre*
(Unaudited)
Q2 2019
Q2 2018
YTD 2019
YTD 2018
(unaudited) (unaudited) (unaudited) (unaudited)
Net Income
attributable to GEO
$
41,914
$
37,421
$
82,619
$
72,408
Less Net loss attributable to noncontrolling interests
78
96
134
163
Net Income
$
41,836
$
37,325
$
82,485
$
72,245
Add (Subtract): Equity in earnings of affiliates, net of
income tax provision
(1,821
)
(2,341
)
(4,417
)
(4,336
)
Income tax provision
4,532
3,715
9,372
8,470
Interest expense, net of interest income
30,887
27,678
62,771
54,448
Loss on extinguishment of debt
5,741
574
5,741
574
Depreciation and amortization
32,352
31,313
64,821
63,239
General and administrative expenses
47,271
47,448
93,695
89,280
Net Operating Income, net of operating lease obligations
$
160,798
$
145,712
$
314,468
$
283,920
Add: Operating lease expense, real estate
6,513
7,914
13,122
15,695
Gain/Loss on real estate assets, pre-tax
-
590
1,497
492
Start-up expenses, pre-tax
1,874
98
1,874
98
Net Operating Income (NOI)
$
169,185
$
154,314
$
330,961
$
300,205
Q2 2019
Q2 2018
YTD 2019
YTD 2018
(unaudited) (unaudited) (unaudited) (unaudited)
Net Income
$
41,836
$
37,325
$
82,485
$
72,245
Add (Subtract): Income tax provision **
4,889
3,446
10,087
8,906
Interest expense, net of interest income ***
36,627
28,252
68,511
55,022
Depreciation and amortization
32,352
31,313
64,821
63,239
Gain/Loss on real estate assets, pre-tax
-
590
1,497
492
EBITDAre
$
115,704
$
100,926
$
227,401
$
199,904
Add (Subtract): Net loss attributable to noncontrolling interests
78
96
134
163
Stock based compensation expenses, pre-tax
5,454
4,960
12,180
10,787
Start-up expenses, pre-tax
1,874
98
1,874
98
Legal related expenses, pre-tax
-
4,500
-
4,500
Escrow Releases, pre-tax
-
(2,273
)
-
(2,273
)
Adjusted EBITDAre
$
123,110
$
108,307
$
241,589
$
213,179
* all figures in '000s ** including income tax provision on
equity in earnings of affiliates *** includes loss on
extinguishment of debt
2019
Outlook/Reconciliation
(In thousands, except per share data)
(Unaudited)
FY 2019
Net Income Attributable to GEO
$ 167,500
to
$ 172,500
Real Estate Related Depreciation and Amortization
73,500
73,500
Loss on Real Estate Assets
1,500
1,500
Funds from Operations (FFO)
$ 242,500
to
$ 247,500
Start-Up and Transition Expenses
9,500
9,500
Loss on the Extinguishment on Debt
5,500
5,500
Tax Effect to Adjustment to FFO
(1,000)
(1,000)
Normalized Funds from Operations
$ 256,500
to
$ 261,500
Non-Real Estate Related Depreciation and Amortization
60,000
60,000
Consolidated Maintenance Capex
(28,000)
(28,000)
Non-Cash Stock Based Compensation
23,500
23,500
Non-Cash Interest Expense
10,500
10,500
Adjusted Funds From Operations (AFFO)
$ 322,500
to
$ 327,500
Net Interest Expense
131,000
131,000
Non-Cash Interest Expense
(10,500)
(10,500)
Loss on the Extinguishment on Debt
(5,500)
(5,500)
Consolidated Maintenance Capex
28,000
28,000
Income Taxes (including income tax provision on equity in
earnings of affiliates)
20,500
20,500
Adjusted EBITDAre
$ 486,000
to
$ 491,000
G&A Expenses
186,500
186,500
Non-Cash Stock Based Compensation
(23,500)
(23,500)
Equity in Earnings of Affiliates
(8,500)
(8,500)
Real Estate Related Operating Lease Expense
26,500
26,500
Net Operating Income
$ 667,000
to
$ 672,000
Adjusted Net Income Per Diluted Share
$ 1.53
to
$ 1.57
AFFO Per Diluted Share
$ 2.69
to
$ 2.73
Weighted Average Common Shares Outstanding-Diluted
119,750
to
119,750
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190730005291/en/
Pablo E. Paez (866) 301 4436 Executive Vice President, Corporate
Relations
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