Jordan Neil Hymowitz
Managing Principal, Philadelphia Financial Management of San Francisco LLC
And I know its not as much as you [ph] expected (00:59:26), but the incremental margin at these levels is higher than the average margin, correct?
Brian Robert Evans
Chief Financial Officer &
Senior Vice President, The GEO Group, Inc.
It varies by the minimum. Yeah. It varies by facility depending on how that contract is priced, but it should
be incrementally better.
Jordan Neil Hymowitz
Managing Principal, Philadelphia Financial Management of San Francisco LLC
Okay. And next, of the 9,000, roughly 12% beds that are unoccupied, should we think about if they do get occupied, the earnings and margin are about average
with whats out there. In other words, theyre not substantially better or worse.
Brian Robert Evans
Chief Financial Officer & Senior Vice President, The GEO Group, Inc.
Well, theyre owned facilities, so they should be the margin should be the EBITDA margin should be in line with our historical average for
owned facilities, which is in that 25% to 35% range. So, it would be a little higher than our average margins, because our average margins include international operations and managed only facilities that have lower margins.
Jordan Neil Hymowitz
Managing Principal, Philadelphia
Financial Management of San Francisco LLC
Perfect. Thanks. And just you mentioned with this new proposal for ISAP, I mean, were talking
5 million people that could potentially be monitored. I mean, thats like multiples of the 100 to 200 you currently are monitoring, meaning you dont get all of them or half of them. But that business which has 50% margins could be
substantially higher next year if this comes through. Is that correct?
George Christopher Zoley
Executive Chairman, The GEO Group, Inc.
It depends yes,
it quantitatively. But as weve discussed, theres different pricing levels for different programs of intensity as far as monitoring, as I said. The most intensive would be monitoring on a daily basis and throughout the day. But it could
be as little as, once every month or few months or couple of times a year.
Jordan Neil Hymowitz
Managing Principal, Philadelphia Financial Management of San Francisco LLC
Fine. And final question is, could you remind me of the number of beds that were in place during the last Republican administration?
George Christopher Zoley
Executive Chairman, The GEO
Group, Inc.
I think they got over 50,000, maybe 52,000.
Jordan Neil Hymowitz
Managing Principal, Philadelphia
Financial Management of San Francisco LLC
52,000 is the right number. So, again, as we head towards an election year, if the Republicans should win, the
number of beds could be 30% higher.
Jose Gordo
Chief Executive Officer & Director, The GEO Group, Inc.
It could be.
Jordan Neil Hymowitz
Managing Principal, Philadelphia Financial Management of San Francisco LLC
Okay. Thanks for taking my questions.