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 third quarter of 2019.
Third Quarter 2019 Highlights
- Net Income Attributable to GEO of $45.9 million or $0.39 per
diluted share
- Adjusted Net Income of $0.44 per diluted share
- Net Operating Income of $172.2 million
- Normalized FFO of $0.59 per diluted share
- AFFO of $0.72 per diluted share
GEO reported third quarter 2019 net income attributable to GEO
of $45.9 million, or $0.39 per diluted share, compared to $39.3
million, or $0.33 per diluted share, for the third quarter 2018.
GEO reported total revenues for the third quarter 2019 of $631.6
million up from $583.5 million for the third quarter 2018. Third
quarter 2019 results reflect a $1.2 million loss on real estate
assets, pre-tax, $6.1 million in start-up expenses, pre-tax, and a
$0.6 million gain on the extinguishment of debt, pre-tax, related
to the repurchase of $34 million of senior unsecured notes due
2022. Excluding these items, GEO reported third quarter 2019
Adjusted Net Income of $52.9 million, or $0.44 per diluted
share.
GEO reported third quarter 2019 Normalized Funds From Operations
(“Normalized FFO”) of $70.3 million, or $0.59 per diluted share,
compared to $62.9 million, or $0.52 per diluted share, for the
third quarter 2018. GEO reported third quarter 2019 Adjusted Funds
From Operations (“AFFO”) of $85.6 million, or $0.72 per diluted
share, compared to $77.9 million, or $0.65 per diluted share, for
the third quarter 2018.
George C. Zoley, Chairman and Chief Executive Officer of GEO,
said, “We are pleased with our strong quarterly financial
performance, which reflect strong fundamentals and growing
earnings. During the quarter, we reactivated 4,600 previously idle
beds, which are expected to drive future cash flow growth. We are
proud to have published our first-ever Human Rights and ESG report
in September, highlighting our long-standing commitment to
respecting the human rights of all those in our care, as well as,
the continued success of our GEO Continuum of Care enhanced
rehabilitation and post-release programs. We believe that our
current dividend payment is supported by stable and predictable
cash flows, and we expect to continue to apply our growing excess
cash flow towards paying down debt.”
First Nine Months 2019 Highlights
- Net Income Attributable to GEO of $128.6 million or $1.08
per diluted share
- Adjusted Net Income of $1.21 per diluted share
- Net Operating Income of $503.2 million
- Normalized FFO of $1.65 per diluted share
- AFFO of $2.09 per diluted share
For the first nine months of 2019, GEO reported net income
attributable to GEO of $128.6 million, or $1.08 per diluted share,
compared to $111.7 million, or $0.92 per diluted share, for the
first nine months of 2018. GEO reported total revenues for the
first nine months of 2019 of $1.86 billion up from $1.73 billion
for the first nine months of 2018. Results for the first nine
months of 2019 reflect a $2.7 million loss on real estate assets,
pre-tax, $8.7 million in start-up expenses, pre-tax, and a $5.1
million loss on the extinguishment of debt, pre-tax. Excluding
these items, GEO reported Adjusted Net Income of $144.5 million, or
$1.21 per diluted share, for the first nine months of 2019.
GEO reported Normalized Funds From Operations (“Normalized FFO”)
for the first nine months of 2019 of $197.2 million, or $1.65 per
diluted share, compared to $173.2 million, or $1.43 per diluted
share, for the first nine months of 2018. GEO reported Adjusted
Funds From Operations (“AFFO”) for the first nine months of 2019 of
$249.3 million, or $2.09 per diluted share, compared to $219.9
million, or $1.82 per diluted share, for the first nine months of
2018.
2019 Financial Guidance
GEO updated its initial financial guidance for the full-year and
its revenue guidance for the fourth quarter of 2019. GEO expects
full-year 2019 total revenue to be approximately $2.49 billion. GEO
expects full-year 2019 Net Income Attributable to GEO to be in a
range of $1.45-$1.47 per diluted share and Adjusted Net Income to
be in a range of $1.60-$1.62 per diluted share. GEO expects
full-year 2019 AFFO to be in a range of $2.75-$2.77 per diluted
share.
GEO expects fourth quarter 2019 revenues to be in a range of
$629 million to $634 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.
Debt Repurchases and Financing Update
During the third quarter 2019, GEO repurchased approximately $34
million of senior unsecured notes due 2022. GEO also closed on a
$44 million, 15-year real estate loan bearing interest at 4.22
percent annually. At the end of the third quarter, GEO had
approximately $395 million in available borrowing capacity under
its $900 million revolving credit facility, which matures in May
2024.
Quarterly Dividend
On October 14, 2019, GEO’s Board of Directors declared a
quarterly cash dividend of $0.48 per share. The quarterly cash
dividend was paid on November 1, 2019 to shareholders of record as
of the close of business on October 25, 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 third 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 November 19, 2019 at
1-877-344-7529 (U.S.) and 1-412-317-0088 (International). The
participant passcode for the telephonic replay is 10136408.
About The GEO Group
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 offender 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.
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,
gain/loss on extinguishment of debt, 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, gain/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, gain/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
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.
Third quarter and first nine months of 2019 financial tables
to follow:
Condensed
Consolidated Balance Sheets*
(Unaudited)
As of As of September 30,
2019 December 31, 2018 (unaudited)
(unaudited)
ASSETS Cash and cash
equivalents
$
54,030
$
31,255
Restricted cash and cash equivalents
33,536
51,678
Accounts receivable, less allowance for doubtful accounts
377,984
445,526
Contract receivable, current portion
8,193
15,535
Prepaid expenses and other current assets
43,856
57,768
Total current assets
$
517,599
$
601,762
Restricted Cash and Investments
33,728
22,431
Property and Equipment, Net
2,155,498
2,158,610
Contract Receivable
353,010
368,178
Operating Lease Right-of-Use Assets, Net
125,718
-
Assets Held for Sale
3,761
2,634
Deferred Income Tax Assets
29,924
29,924
Intangible Assets, Net (including goodwill)
991,948
1,008,719
Other Non-Current Assets
71,693
65,860
Total Assets
$
4,282,879
$
4,258,118
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable
$
96,263
$
93,032
Accrued payroll and related taxes
57,774
76,009
Accrued expenses and other current liabilities
202,356
204,170
Operating lease liabilities, current portion
28,795
-
Current portion of finance lease obligations, long-term debt, and
non-recourse debt
23,417
332,027
Total current liabilities
$
408,605
$
705,238
Deferred Income Tax Liabilities
13,681
13,681
Other Non-Current Liabilities
88,159
82,481
Operating Lease Liabilities
99,271
-
Finance Lease Liabilities
3,403
4,570
Long-Term Debt
2,355,724
2,397,227
Non-Recourse Debt
307,032
15,017
Total Shareholders' Equity
1,007,004
1,039,904
Total Liabilities and Shareholders' Equity
$
4,282,879
$
4,258,118
* all figures in '000s
Condensed
Consolidated Statements of Operations*
(Unaudited)
Q3 2019 Q3 2018
YTD 2019 YTD 2018 (unaudited)
(unaudited) (unaudited) (unaudited)
Revenues
$
631,579
$
583,530
$
1,856,212
$
1,731,956
Operating expenses
472,513
434,806
1,382,678
1,299,312
Depreciation and amortization
32,419
31,297
97,240
94,536
General and administrative expenses
48,488
47,647
142,183
136,927
Operating income
78,159
69,780
234,111
201,181
Interest income
6,686
8,428
23,127
26,194
Interest expense
(36,645)
(37,991)
(115,857)
(110,205)
Gain/(Loss) on extinguishment of debt
594
-
(5,147)
(574)
Income before income taxes and
equity in earnings of affiliates
48,794
40,217
136,234
116,596
Provision for income taxes
5,137
3,723
14,509
12,193
Equity in earnings of affiliates, net of income tax
provision
2,228
2,735
6,645
7,071
Net income
45,885
39,229
128,370
111,474
Less: Net loss attributable to
noncontrolling interests
47
60
181
223
Net income attributable to The GEO
Group, Inc.
$
45,932
$
39,289
$
128,551
$
111,697
Weighted
Average Common Shares Outstanding: Basic
119,209
119,681
119,052
120,567
Diluted
119,282
120,302
119,314
121,055
Net income per Common Share
Attributable to The GEO Group, Inc. :
Basic: Net
income per share — basic
$
0.39
$
0.33
$
1.08
$
0.93
Diluted:
Net income per share — diluted
$
0.39
$
0.33
$
1.08
$
0.92
Regular Dividends Declared per Common
Share
$
0.48
$
0.47
$
1.44
$
1.41
* 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)
Q3
2019 Q3 2018 YTD 2019
YTD 2018
Net Income attributable to
GEO
$
45,932
$
39,289
$ 128,551
$ 111,697
Add (Subtract):
Net Tax Cuts and Jobs
Act Impact
-
-
-
304
(Gain)/Loss on
extinguishment of debt
(594)
-
5,147
574
Start-up expenses,
pre-tax
6,077
3,728
8,718
3,826
Legal related expenses,
pre-tax
-
-
-
4,500
Escrow releases, pre-tax
-
-
-
(2,273)
(Gain)/Loss on real
estate assets, pre-tax
1,196
2,209
2,693
2,701
Tax effect of
adjustments to Net Income attributable to GEO
248
74
(650)
(639)
Adjusted Net Income
$ 52,859
$ 45,300
$
144,459
$
120,690
Weighted average common shares outstanding - Diluted
119,282
120,302
119,314
121,055
Adjusted Net Income Per Diluted Share
$
0.44
$
0.38
$
1.21
$
1.00
Reconciliation of
Net Income Attributable to GEO to FFO, Normalized FFO, and
AFFO *
(Unaudited)
Q3 2019
Q3 2018
YTD 2019
YTD 2018
(unaudited) (unaudited) (unaudited) (unaudited)
Net
Income attributable to GEO
$
45,932
$
39,289
$
128,551
$
111,697
Add (Subtract): Real Estate Related Depreciation and
Amortization
17,931
17,634
53,970
52,531
(Gain)/Loss on real estate assets
1,196
2,209
2,693
2,701
Equals: NAREIT defined FFO
$
65,059
$
59,132
$
185,214
$
166,929
Add (Subtract): Net Tax Cuts and Jobs Act Impact
-
-
-
304
(Gain)/Loss on extinguishment of debt, pre-tax
(594)
-
5,147
574
Start-up expenses, pre-tax
5,593
3,728
7,467
3,826
Legal related expenses, pre-tax
-
-
-
4,500
Escrow releases, pre-tax
-
-
-
(2,273)
Tax Effect of adjustments to Funds From Operations **
248
74
(650)
(639)
Equals: FFO, normalized
$
70,306
$
62,934
$
197,178
$
173,221
Add (Subtract): Non-Real Estate Related Depreciation &
Amortization
14,488
13,663
43,270
42,005
Consolidated Maintenance Capital Expenditures
(5,744)
(6,162)
(14,893)
(17,561)
Stock Based Compensation Expenses
4,739
5,564
16,919
16,351
Amortization of debt issuance costs, discount and/or premium and
other non-cash interest
1,838
1,868
6,861
5,860
Equals: AFFO
$
85,627
$
77,867
$
249,335
$
219,876
Weighted average common shares outstanding - Diluted
119,282
120,302
119,314
121,055
FFO/AFFO per Share - Diluted
Normalized FFO Per Diluted Share
$
0.59
$
0.52
$
1.65
$
1.43
AFFO Per Diluted Share
$
0.72
$
0.65
$
2.09
$
1.82
Regular Common Stock Dividends per common
share
$
0.48
$
0.47
$
1.44
$
1.41
* 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)
Q3 2019
Q3 2018
YTD 2019
YTD 2018
(unaudited) (unaudited) (unaudited) (unaudited)
Net Income
attributable to GEO
$
45,932
$
39,289
$
128,551
$
111,697
Less Net loss attributable to noncontrolling interests
47
60
181
223
Net Income
$
45,885
$
39,229
$
128,370
$
111,474
Add (Subtract): Equity in earnings of affiliates, net of
income tax provision
(2,228)
(2,735)
(6,645)
(7,071)
Income tax provision
5,137
3,723
14,509
12,193
Interest expense, net of interest income
29,959
29,563
92,730
84,011
(Gain)/Loss on extinguishment of debt
(594)
-
5,147
574
Depreciation and amortization
32,419
31,297
97,240
94,536
General and administrative expenses
48,488
47,647
142,183
136,927
Net Operating Income, net of operating lease obligations
$
159,066
$
148,724
$
473,534
$
432,644
Add: Operating lease expense, real estate
6,391
8,110
19,514
23,805
(Gain)/Loss on real estate assets, pre-tax
1,196
2,209
2,693
2,701
Start-up expenses, pre-tax
5,593
3,728
7,467
3,826
Net Operating Income (NOI)
$
172,246
$
162,771
$
503,208
$
462,976
Q3 2019
Q3 2018
YTD 2019
YTD 2018
(unaudited) (unaudited) (unaudited) (unaudited)
Net Income
$
45,885
$
39,229
$
128,370
$
111,474
Add (Subtract): Income tax provision **
5,593
3,923
15,681
12,829
Interest expense, net of interest income ***
29,365
29,563
97,878
84,585
Depreciation and amortization
32,419
31,297
97,240
94,536
(Gain)/Loss on real estate assets, pre-tax
1,196
2,209
2,693
2,701
EBITDAre
$
114,458
$
106,221
$
341,862
$
306,125
Add (Subtract): Net loss attributable to noncontrolling interests
47
60
181
223
Stock based compensation expenses, pre-tax
4,739
5,564
16,919
16,351
Start-up expenses, pre-tax
5,593
3,728
7,467
3,826
Legal related expenses, pre-tax
-
-
-
4,500
Escrow Releases, pre-tax
-
-
-
(2,273)
Adjusted EBITDAre
$
124,837
$
115,573
$
366,429
$
328,752
* all figures in '000s
** including income tax provision on equity in
earnings of affiliates
*** includes
(gain)/loss on extinguishment of debt
2019
Outlook/Reconciliation
(In thousands, except per share data)
(Unaudited)
FY 2019
Net
Income Attributable to GEO
$ 172,500
to
$
175,500
Real Estate Related Depreciation and Amortization
72,500
72,500
Loss on Real Estate Assets
3,000
3,000
Funds from Operations (FFO)
$
248,000
to
$
251,000
Start-Up
and Transition Expenses
10,500
10,500
Loss on the Extinguishment on Debt
5,000
5,000
Tax Effect to Adjustment to FFO
(750)
(750)
Normalized Funds from Operations
$
262,750
to
$
265,750
Non-Real
Estate Related Depreciation and Amortization
58,500
58,500
Consolidated Maintenance Capex
(22,750)
(22,750)
Non-Cash Stock Based Compensation
22,000
22,000
Non-Cash Interest
Expense
8,000
8,000
Adjusted Funds From Operations (AFFO)
$
328,500
to
$
331,500
Net
Interest Expense
126,000
126,000
Non-Cash Interest
Expense
(8,000)
(8,000)
Loss on the Extinguishment on Debt
(5,000)
(5,000)
Adjustment for Non-Cash Loss on Real Estate Assets
(2,000)
(2,000)
Consolidated Maintenance Capex
22,750
22,750
Income Taxes (including income tax provision on equity in
earnings of affiliates)
20,000
20,000
Adjusted EBITDAre
$
482,250
to
$
485,250
G&A
Expenses
189,000
189,000
Non-Cash Stock Based Compensation
(22,000)
(22,000)
Equity in Earnings of Affiliates
(9,000)
(9,000)
Real Estate Related Operating Lease Expense
26,500
26,500
Net Operating Income
$
666,750
to
$
669,750
Adjusted
Net Income Per Diluted Share
$
1.60
to
$
1.62
AFFO Per Diluted Share
$
2.75
to
$
2.77
Weighted Average Common Shares Outstanding-Diluted
119,250
to
119,500
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191105005437/en/
Pablo E. Paez Executive Vice President, Corporate Relations
(866) 301 4436
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