The GEO Group Announces Funding Extension for Adelanto ICE Processing Center Contract
May 20 2024 - 6:00AM
Business Wire
The GEO Group (NYSE: GEO) (“GEO”) announced today that
U.S. Immigration and Customs Enforcement (“ICE”) announced that it
plans to issue a task order for the GEO-owned 1,940-bed Adelanto
ICE Processing Center in California (the “Adelanto Center”), which
provides for continued funding through September 30, 2024.
GEO previously filed motions, on January 4, 2024, with the U.S.
District Court, Central District of California, in the case of
Roman v. Wolf, to Intervene and to Vacate several injunction orders
(collectively the “Orders”) including an intake prohibition order
issued more than three years ago, limiting the use of the Adelanto
Center based on then-prevailing COVID-19 conditions. GEO was joined
in its filings by three unions (collectively the “Unions”)
representing over 350 employees at the Adelanto Center.
Subsequently, on April 22, 2024, GEO and the Unions filed a renewed
motion with the U.S. Court of Appeals for the Ninth Circuit to
intervene in the case of Roman v. Wolf, with a proposed motion to
stay the Orders. GEO and the Unions will continue to pursue legal
action to protect GEO's and the Unions’ interests, which include
the Adelanto Center contract’s annualized revenues and the
potential loss of jobs by 350-plus employees.
ICE and GEO entered into a 15-year contract on December 19,
2019, for the provision of secure residential housing and care at
the Adelanto Center, consisting of a 5-year base period, ending on
December 19, 2024, followed by two 5-year option periods. The
Adelanto Center contract generates approximately $85 million in
annualized revenues for GEO.
About The GEO Group
The GEO Group, Inc. (NYSE: GEO) is a leading diversified
government service provider, specializing in design, financing,
development, and support services for secure facilities, processing
centers, and community reentry centers in the United States,
Australia, South Africa, and the United Kingdom. GEO’s diversified
services include enhanced in-custody rehabilitation and
post-release support through the award-winning GEO Continuum of
Care®, secure transportation, electronic monitoring,
community-based programs, and correctional health and mental health
care. GEO’s worldwide operations include the ownership and/or
delivery of support services for 100 facilities totaling
approximately 81,000 beds, including idle facilities and projects
under development, with a workforce of up to approximately 18,000
employees.
Use of forward-looking statements
This news release may contain “forward-looking statements”
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended, and the U.S. Private Securities Litigation Reform
Act of 1995. Readers are cautioned not to place undue reliance on
these forward-looking statements and any such forward-looking
statements are qualified in their entirety by reference to the
following cautionary statements. All forward-looking statements
speak only as of the date of this news release and are based on
current expectations and involve a number of assumptions, risks and
uncertainties that could cause the actual results to differ
materially from such forward-looking statements, including
statements regarding GEO’s filings in the case of Roman v. Wolf,
statements regarding the Orders, and statements regarding the
Adelanto Center contract. Risks and uncertainties 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, risk factors contained in GEO’s filings
with the U.S. Securities and Exchange Commission, including its
Form 10-K, 10-Q, and 8-K reports. GEO disclaims any obligation to
update or revise any forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20240517420374/en/
Pablo E. Paez (866) 301 4436 Executive Vice President, Corporate
Relations
Geo (NYSE:GEO)
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