Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - GEO GROUP INC | d306721dex991.htm |
| EX-99.2 - EX-99.2 - GEO GROUP INC | d306721dex992.htm |
| 8-K - 8-K - GEO GROUP INC | d306721d8k.htm |
Exhibit 99.3
Reconciliation Tables and Supplemental Disclosure
Fourth Quarter and Year-End 2011
The GEO Group’s (“GEO”) Reconciliation Tables and Supplemental Disclosure presented herein speaks only as of the date or period indicated, and GEO does not undertake any obligation, and disclaims any duty, to update any of this information. GEO’s future financial performance is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect GEO’s future financial results are discussed more fully in our reports filed with the SEC. Readers are advised to refer to these reports for additional information concerning GEO.
Reconciliation Tables and Supplemental Disclosure
Fourth Quarter and Year-End 2011
Reconciliation of Pro Forma Net Income to Net Income
(In thousands except per share data)
| 13
Weeks Ended 1-Jan-12 |
13
Weeks Ended 2-Jan-11 |
52
Weeks Ended 1-Jan-12 |
52
Weeks Ended 2-Jan-11 |
|||||||||||||
| Net Income |
$ | 18,627 | $ | 23,047 | $ | 77,463 | $ | 62,790 | ||||||||
| Start-up/transition expenses, net of tax |
5,207 | — | 15,074 | 2,287 | ||||||||||||
| International bid and proposal expenses, net of tax |
— | — | 703 | — | ||||||||||||
| Net loss attributable to non-controlling interests |
112 | 451 | 1,162 | 678 | ||||||||||||
| M&A Related Expenses, net of tax |
— | 6,668 | 4,129 | 18,187 | ||||||||||||
| Loss on Extinguishment of Debt, net of tax |
— | — | — | 4,758 | ||||||||||||
| Gain on Land Sale, net of tax |
— | (482 | ) | — | (482 | ) | ||||||||||
| IRS Settlement, net of tax |
— | (2,941 | ) | — | (2,941 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Pro forma net income |
$ | 23,946 | $ | 26,743 | $ | 98,531 | $ | 85,277 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted earnings per share |
$ | 0.30 | $ | 0.36 | $ | 1.22 | $ | 1.12 | ||||||||
| Start-up/transition expenses, net of tax |
0.09 | — | 0.24 | 0.04 | ||||||||||||
| International bid and proposal expenses, net of tax |
— | — | 0.01 | — | ||||||||||||
| Net loss attributable to non-controlling interests |
— | 0.01 | 0.02 | 0.01 | ||||||||||||
| M&A Related Expenses, net of tax |
— | 0.10 | 0.06 | 0.32 | ||||||||||||
| Loss on Extinguishment of Debt, net of tax |
— | — | — | 0.09 | ||||||||||||
| Gain on Land Sale, net of tax |
— | (0.01 | ) | — | (0.01 | ) | ||||||||||
| IRS Settlement, net of tax |
— | (0.05 | ) | — | (0.05 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted pro forma earnings per share |
$ | 0.39 | $ | 0.41 | $ | 1.55 | $ | 1.52 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average common shares outstanding-diluted |
61,780 | 64,697 | 63,740 | 55,989 | ||||||||||||
1
Reconciliation Tables and Supplemental Disclosure
Fourth Quarter and Year-End 2011
Reconciliation from Adjusted EBITDA to Net Income
(In thousands)
| 13
Weeks Ended 1-Jan-12 |
13
Weeks Ended 2-Jan-11 |
52
Weeks Ended 1-Jan-12 |
52
Weeks Ended 2-Jan-11 |
|||||||||||||
| Net Income |
$ | 18,627 | $ | 23,047 | $ | 77,463 | $ | 62,790 | ||||||||
| Interest expense, net |
17,609 | 10,706 | 68,344 | 34,436 | ||||||||||||
| Income tax provision |
12,617 | 10,972 | 47,925 | 39,532 | ||||||||||||
| Depreciation and amortization |
23,509 | 16,015 | 85,341 | 48,111 | ||||||||||||
| Tax provision on equity in earnings of affiliate |
701 | 540 | 2,406 | 2,212 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
$ | 73,063 | $ | 61,280 | $ | 281,479 | $ | 187,081 | ||||||||
| Adjustments |
||||||||||||||||
| Net loss attributable to non-controlling interests |
$ | 112 | $ | 451 | $ | 1,162 | $ | 678 | ||||||||
| Stock Based Compensation, pre-tax |
1,270 | 1,106 | 6,113 | 4,639 | ||||||||||||
| Start-up/transition expenses, pre-tax |
7,084 | — | 22,364 | 3,812 | ||||||||||||
| International bid and proposal expenses, pre-tax |
— | — | 1,091 | — | ||||||||||||
| M&A Related Expenses, pre-tax |
— | 9,693 | 6,308 | 25,381 | ||||||||||||
| Loss on Extinguishment of Debt, pre-tax |
— | — | — | 7,933 | ||||||||||||
| Gain on Land Sale, pre-tax |
— | (801 | ) | — | (801 | ) | ||||||||||
| IRS Settlement, pre-tax |
— | (3,323 | ) | — | (3,323 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA |
$ | 81,529 | $ | 68,406 | $ | 318,517 | $ | 225,400 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
2
Reconciliation Tables and Supplemental Disclosure
Fourth Quarter and Year-End 2011
Reconciliation of Adjusted Funds from Operations to Net Income
(In thousands)
| 13
Weeks Ended 1-Jan-12 |
13
Weeks Ended 2-Jan-11 |
52
Weeks Ended 1-Jan-12 |
52
Weeks Ended 2-Jan-11 |
|||||||||||||
| Net Income |
$ | 18,627 | $ | 23,047 | $ | 77,463 | $ | 62,790 | ||||||||
| Net loss attributable to non-controlling interests |
112 | 451 | 1,162 | 678 | ||||||||||||
| Depreciation and Amortization |
23,509 | 16,015 | 85,341 | 48,111 | ||||||||||||
| Income Tax Provision |
12,617 | 10,972 | 47,925 | 39,532 | ||||||||||||
| Income Taxes Paid |
(5,876 | ) | (9,624 | ) | (15,892 | ) | (34,475 | ) | ||||||||
| Stock Based Compensation |
1,270 | 1,106 | 6,113 | 4,639 | ||||||||||||
| Maintenance Capital Expenditures |
(11,164 | ) | (6,952 | ) | (35,264 | ) | (17,244 | ) | ||||||||
| Equity in Earnings (loss) of Affiliates, Net of Income Tax |
789 | (1,350 | ) | (1,563 | ) | (4,218 | ) | |||||||||
| Amortization of Debt Costs and Other Non-Cash Interest |
597 | (189 | ) | 1,745 | 3,209 | |||||||||||
| Start-up/transition expenses |
7,084 | — | 22,364 | 3,812 | ||||||||||||
| M&A Related Expenses |
— | 9,693 | 6,308 | 25,381 | ||||||||||||
| International bid and proposal expenses |
— | — | 1,091 | — | ||||||||||||
| Loss on Extinguishment of Debt |
— | — | — | 7,933 | ||||||||||||
| Gain on Land Sale, net of tax |
— | (801 | ) | — | (801 | ) | ||||||||||
| IRS Settlement, net of tax |
— | (3,323 | ) | — | (3,323 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted Funds from Operations |
$ | 47,565 | $ | 39,045 | $ | 196,793 | $ | 136,024 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted Funds from Operations Per Share |
$ | 0.77 | $ | 0.60 | $ | 3.09 | $ | 2.43 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average common shares outstanding-diluted |
61,780 | 64,697 | 63,740 | 55,989 | ||||||||||||
3
Reconciliation Tables and Supplemental Disclosure
Fourth Quarter and Year-End 2011
Business Segment Results
(In thousands)
| 13
Weeks Ended 1-Jan-12 |
13
Weeks Ended 2-Jan-11 |
52
Weeks Ended 1-Jan-12 |
52
Weeks Ended 2-Jan-11 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Revenues |
||||||||||||||||
| U.S. Corrections & Detention |
$ | 243,251 | $ | 242,819 | $ | 970,507 | $ | 842,417 | ||||||||
| GEO Care |
109,284 | 78,410 | 426,759 | 213,819 | ||||||||||||
| International Services |
53,934 | 52,335 | 215,514 | 190,477 | ||||||||||||
| Facility Construction & Design |
— | 834 | 119 | 23,255 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 406,469 | $ | 374,398 | $ | 1,612,899 | $ | 1,269,968 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating Expenses |
||||||||||||||||
| U.S. Corrections & Detention |
$ | 173,631 | $ | 168,353 | $ | 696,262 | $ | 598,275 | ||||||||
| GEO Care |
82,396 | 64,828 | 326,297 | 179,473 | ||||||||||||
| International Services |
49,902 | 47,391 | 198,939 | 176,399 | ||||||||||||
| Facility Construction & Design |
— | 100 | 82 | 20,873 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 305,929 | $ | 280,672 | $ | 1,221,580 | $ | 975,020 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Depreciation & Amortization Expense |
||||||||||||||||
| U.S. Corrections & Detention |
$ | 15,404 | $ | 12,613 | $ | 55,676 | $ | 39,744 | ||||||||
| GEO Care |
7,574 | 2,921 | 27,530 | 6,600 | ||||||||||||
| International Services |
531 | 481 | 2,135 | 1,767 | ||||||||||||
| Facility Construction & Design |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 23,509 | $ | 16,015 | $ | 85,341 | $ | 48,111 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
4
Reconciliation Tables and Supplemental Disclosure
Fourth Quarter and Year-End 2011
Business Segment Results (Continued)
| 13
Weeks Ended 1-Jan-12 |
13
Weeks Ended 2-Jan-11 |
52
Weeks Ended 1-Jan-12 |
52
Weeks Ended 2-Jan-11 |
|||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Compensated Mandays |
||||||||||||||||
| U.S. Corrections & Detention |
4,292,456 | 4,153,398 | 17,294,496 | 15,071,558 | ||||||||||||
| GEO Care |
462,752 | 483,411 | 1,915,031 | 1,214,304 | ||||||||||||
| International Services |
646,244 | 650,377 | 2,571,127 | 2,536,869 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 5,401,452 | 5,287,186 | 21,780,654 | 18,822,731 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Revenue Producing Beds |
||||||||||||||||
| U.S. Corrections & Detention |
50,471 | 53,812 | 50,471 | 53,812 | ||||||||||||
| GEO Care |
5,906 | 6,120 | 5,906 | 6,120 | ||||||||||||
| International Services |
7,149 | 7,147 | 7,149 | 7,147 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 63,526 | 67,079 | 63,526 | 67,079 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Average Occupancy* |
||||||||||||||||
| U.S. Corrections & Detention |
95.5 | % | 93.0 | % | 94.8 | % | 93.8 | % | ||||||||
| GEO Care |
85.2 | % | 86.7 | % | 86.7 | % | 89.0 | % | ||||||||
| International Services |
99.3 | % | 100.0 | % | 99.8 | % | 100.0 | % | ||||||||
| 94.9 | % | 93.2 | % | 94.6 | % | 94.3 | % | |||||||||
* Average occupancy excludes the impact of GEO’s idle facilities.
5
Reconciliation Tables And Supplemental Disclosure
Fourth Quarter and Year-End 2011
GEO Corrections & Detention
| 13-weeks | 13-weeks | 52 Weeks | 52 Weeks | |||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||
| 1-Jan-12 | 2-Jan-11 | 1-Jan-12 | 2-Jan-11 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Revenues (In thousands) |
||||||||||||||||
| U.S. Corrections & Detention |
||||||||||||||||
| Federal |
$ | 146,944 | $ | 139,248 | $ | 567,788 | $ | 441,158 | ||||||||
| State |
93,559 | 100,922 | 391,912 | 392,341 | ||||||||||||
| Local |
1,278 | 1,411 | 4,577 | 1,992 | ||||||||||||
| Other |
1,470 | 1,238 | 6,230 | 6,926 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total U.S. Corrections & Detention |
$ | 243,251 | $ | 242,819 | $ | 970,507 | $ | 842,417 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Compensated Mandays |
||||||||||||||||
| U.S. Corrections & Detention |
||||||||||||||||
| Federal |
2,062,053 | 1,851,338 | 8,077,595 | 5,995,923 | ||||||||||||
| State |
2,199,161 | 2,274,089 | 9,096,647 | 9,038,252 | ||||||||||||
| Local |
31,242 | 27,971 | 120,254 | 37,383 | ||||||||||||
| Other |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total U.S. Corrections & Detention |
4,292,456 | 4,153,398 | 17,294,496 | 15,071,558 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
6
Reconciliation Tables and Supplemental Disclosure
Fourth Quarter and Year-End 2011
GEO Care
| 13-weeks | 13-weeks | 52 Weeks | 52 Weeks | |||||||||||||
| Ended | Ended | Ended | Ended | |||||||||||||
| 1-Jan-12 | 2-Jan-11 | 1-Jan-12 | 2-Jan-11 | |||||||||||||
| Revenues (In thousands) |
||||||||||||||||
| Residential Treatment Services |
$ | 37,065 | $ | 33,799 | $ | 146,721 | $ | 136,876 | ||||||||
| Community Based Services |
23,334 | 16,705 | 91,404 | 33,633 | ||||||||||||
| Youth Services |
23,102 | 27,906 | 101,768 | 43,310 | ||||||||||||
| BI |
25,783 | — | 86,866 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 109,284 | $ | 78,410 | $ | 426,759 | $ | 213,819 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Compensated Mandays |
||||||||||||||||
| Residential |
||||||||||||||||
| Residential Treatment Services |
167,259 | 156,745 | 659,689 | 633,467 | ||||||||||||
| Community Based Services |
209,440 | 224,145 | 880,884 | 410,858 | ||||||||||||
| Youth Services |
86,053 | 102,521 | 374,458 | 169,979 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Residential Mandays |
462,752 | 483,411 | 1,915,031 | 1,214,304 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-Residential Units |
||||||||||||||||
| Community Based Services (1) |
205,755 | 40,395 | 754,968 | 82,702 | ||||||||||||
| Youth Services (2) |
100,133 | 134,997 | 467,532 | 210,655 | ||||||||||||
| BI (3) |
5,828,034 | — | 20,478,730 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Non-Residential Units |
6,133,922 | 175,392 | 21,701,230 | 293,357 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (1) | Community Based Services Non-Residential units include home confinement populations and day reporting center participants |
| (2) | Youth Non-Residential units include education, counseling, and other outpatient treatment services. |
| (3) | BI Non-Residential units include electronic monitoring services and ISAP participants |
7
Reconciliation Tables and Supplemental Disclosure
Fourth Quarter and Year-End 2011
Idle Facilities
The following table contains a list of idle facilities, which GEO is currently marketing to correctional and detention agencies.
| Facility |
Location | Bed Count | Prospective Customer | |||||
| Great Plains Correctional Facility |
Oklahoma | 2,048 | State & Federal | |||||
| Aurora Detention Facility |
Colorado | 1,000 | Federal | |||||
| North Lake Correctional Facility |
Michigan | 1,740 | State & Federal | |||||
| Desert View Community Correctional Facility |
California | 650 | Counties & Federal | |||||
| Central Valley Community Correctional Facility |
California | 640 | Counties & Federal | |||||
| Leo Chesney Community Correctional Facility |
California | 318 | Counties & Federal | |||||
| Mesa Verde Community Correctional Facility |
California | 400 | Counties & Federal | |||||
| McFarland Community Correctional Facility |
California | 260 | Counties & Federal | |||||
| Golden State Community Correctional Facility * |
California | 625 | Counties & Federal | |||||
|
|
|
|||||||
| 7,681 | ||||||||
The combined carrying costs to keep the facilities idle equal approximately $0.15 per share.
| * | The Golden State Community Correctional Facility in California is scheduled to close on July 1, 2012. |
8