The GEO Group Reports Fourth Quarter and Full-Year 2020 Results and Issues 2021 Guidance
The GEO Group, Inc. (NYSE: GEO) (“GEO”), a fully integrated equity real estate investment trust (“REIT”) and a leading provider of enhanced in-custody rehabilitation, post-release support, and community-based programs, reported today its financial results for the fourth quarter and full-year 2020 and issued financial guidance for 2021.
Fourth Quarter 2020 Highlights
-
Total revenues of
$578.1 million -
Net Income Attributable to GEO of
$11.9 million or$0.09 per diluted share -
4Q20 results reflect
$21.1 million Goodwill impairment charge related to GEO’s reentry centers primarily due to COVID-19 -
Adjusted Net Income of
$0.33 per diluted share -
Net Operating Income of
$151.1 million -
Normalized FFO of
$0.48 per diluted share -
AFFO of
$0.62 per diluted share
We reported fourth quarter 2020 net income attributable to GEO of
Fourth quarter 2020 results reflect a
We reported fourth quarter 2020 Normalized Funds From Operations (“Normalized FFO”) of
George C. Zoley, Chairman and Chief Executive Officer of GEO, said, “During the fourth quarter of 2020, our operating divisions continued to face challenges associated with the global COVID-19 pandemic. We remain grateful for our frontline employees, who have continued to make daily sacrifices and have remained committed to providing high-quality services and humane and compassionate care to all those entrusted to our facilities and programs. Despite the challenges associated with COVID-19 and the current political environment, we believe that our company remains resilient and is supported by long-term real estate assets and contracts entailing essential government services.
We recognize that heightened political rhetoric has led to the mischaracterization of our role as a government services provider and has created concerns regarding our future access to financing. We are aware of the importance of allocating capital to pay down debt in the current environment, and our Board has taken steps to reduce our quarterly dividend payments in order to apply our excess cash flows toward debt repayment. We remain committed to balance our continued creation of value for our shareholders with prudent management of our balance sheet.”
Full-Year 2020 Highlights
-
Total revenues of
$2.35 billion -
Net Income Attributable to GEO of
$113.0 million or$0.94 per diluted share -
FY20 results reflect
$21.1 million Goodwill impairment charge related to GEO’s reentry centers primarily due to COVID-19 -
Adjusted Net Income of
$1.30 per diluted share -
Net Operating Income of
$601.8 million -
Normalized FFO of
$1.91 per diluted share -
AFFO of
$2.51 per diluted share
For the full-year 2020, we reported net income attributable to GEO of
Results for the full-year 2020 reflect a
We reported Normalized FFO of
Recent Developments
On January 26, 2021, President Biden signed an executive order directing the United States Attorney General not to renew U.S. Department of Justice (“DOJ”) contracts with privately operated criminal detention facilities, as consistent with applicable law (the “Executive Order”). Two agencies of the DOJ, the Federal Bureau of Prisons (“BOP”) and U.S. Marshals Service (“USMS”), utilize our services. The BOP houses in
