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8-K - FORM 8-K - GEO GROUP INC | g27673e8vk.htm |
EX-99.1 - EX-99.1 - GEO GROUP INC | g27673exv99w1.htm |
Exhibit 99.2
NEWS RELEASE |
One Park Place, Suite 700 621 Northwest 53rd Street Boca Raton, Florida 33487 www.geogroup.com
CR-11-16
CR-11-16
THE GEO GROUP ANNOUNCES $100 MILLION STOCK REPURCHASE PROGRAM
Boca Raton, Fla. July 14, 2011 The GEO Group (NYSE:GEO) (GEO) announced today that its
Board of Directors has approved a stock repurchase program of up to $100.0 million of GEOs common
stock effective through December 31, 2012. The stock repurchase program will be funded primarily
with cash on hand, free cash flow, and borrowings under GEOs revolving credit facility. GEO
believes it has the ability to fund the stock repurchase program, its working capital, its debt
service requirements, and its maintenance and growth capital expenditure requirements, while
maintaining sufficient liquidity for other corporate purposes.
The stock repurchase is intended to be implemented through purchases made from time to time in the
open market or in privately negotiated transactions, in accordance with applicable Securities and
Exchange requirements. The program may also include repurchases from time to time from executive
officers or directors of vested restricted stock and/or vested stock options. The stock repurchase
program does not obligate GEO to purchase any specific amount of its common stock and may be
suspended or extended at any time at the companys discretion. As of May 5, 2011, GEO had
approximately 64.9 million shares of common stock outstanding.
George C. Zoley, Chairman of the Board and Chief Executive Officer of GEO said: We continue to be
optimistic about the demand in our core market segments and the long term growth prospects for our
company, and we believe we have the flexibility to pursue long term growth opportunities, while
enhancing our shareholders returns with the implementation of a stock repurchase program. Given
current market conditions, we believe it is appropriate to allocate part of our capital resources
to opportunistically repurchase shares of common stock at prices which would meet or exceed our
targeted returns on invested capital.
The GEO Group is a world leader in the delivery of correctional, detention, and residential
treatment services to federal, state, and local government agencies around the globe. GEO offers a
turnkey approach that includes design, construction, financing, and operations. GEO represents
government clients in the United States, Australia, South Africa, and the United Kingdom. GEOs
worldwide operations include the management and/or ownership of approximately 80,000 beds at 116
correctional, detention and residential treatment facilities, including projects under development.
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 estimated earnings, revenues and costs and our ability to
maintain growth and strengthen contract relationships. 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) GEOs ability to successfully pursue further growth and
continue to enhance shareholder value; (2) GEOs ability to access the capital markets in the
future on satisfactory terms or at all; (3) risks associated with GEOs ability to control
operating costs associated with contract start-ups; (4) GEOs ability to timely open facilities as
planned, profitably manage such facilities and successfully integrate such facilities into GEOs
operations without substantial costs; (5) GEOs ability to win management contracts for which it
has submitted proposals and to retain existing management contracts; (6) GEOs ability to obtain
future financing on acceptable terms; (7) GEOs ability to sustain company-wide occupancy rates at
its facilities; and (8) other factors contained in GEOs Securities and Exchange Commission
filings, including the forms 10-K, 10-Q and 8-K reports.
-End-
Contact:
|
Pablo E. Paez | 1-866-301-4436 | ||
Vice President, Corporate Relations |