GEO : Investor Presentation (1Q24)
GEO
Investor Presentation
1Q24
- Confidential -
Important Notices and Disclaimers
Forward-Looking Statements
This presentation contains forward-looking statements regarding future events and future performance of GEO that involve risks and uncertainties that could materially and adversely affect actual results, including statements regarding GEO's financial guidance for the full-year of 2024, GEO's focus on reducing net debt, future financial position, business strategy, and plans and objectives of management for future operations, and GEO's assumptions regarding segment trends and government budgetary pressures. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "anticipate," "intend," "plan," "believe," "seek," "estimate," or "continue" or the negative of such words and similar expressions. Risks and uncertainties that could cause actual results to vary from current expectations and forward-looking statements contained in this presentation include, but are not limited to: (1) GEO's ability to meet its financial guidance for 2024 given the various risks to which its business is exposed; (2) GEO's ability to deleverage and repay, refinance or otherwise address its debt maturities in an amount and on terms commercially acceptable to GEO, and on the timeline it expects or at all; (3) GEO's ability to identify and successfully complete any potential sales of company-owned assets and businesses on commercially advantageous terms on a timely basis, or at all; (4) changes in federal and state government policy, orders, directives, legislation and regulations that affect public-private partnerships with respect to secure, correctional and detention facilities, processing centers and reentry centers, including the timing and scope of implementation of President Biden's Executive Order directing the U.S. Attorney General not to renew the U.S. Department of Justice contracts with privately operated criminal detention facilities; (5) changes in federal immigration policy; (6) public and political opposition to the use of public-private partnerships with respect to secure correctional and detention facilities, processing centers and reentry centers; (7) any continuing impact of the COVID-19 global pandemic on GEO, GEO's ability to mitigate the risks associated with COVID-19, and the efficacy and distribution of COVID-19 vaccines; (8) GEO's ability to sustain or improve company-wide occupancy rates at its facilities in light of any continuing impact of the COVID-19 global pandemic and policy and contract announcements impacting GEO's federal facilities in the United States; (9) fluctuations in GEO's operating results, including as a result of contract terminations, contract renegotiations, changes in occupancy levels and increases in GEO's operating costs; (10) general economic and market conditions, including changes to governmental budgets and its impact on new contract terms, contract renewals, renegotiations, per diem rates, fixed payment provisions, and occupancy levels; (11) GEO's ability to address inflationary pressures related to labor related expenses and other operating costs; (12) GEO's ability to timely open facilities as planned, profitably manage such facilities and successfully integrate such facilities into GEO's operations without substantial costs; (13) GEO's ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (14) risks associated with GEO's ability to control operating costs associated with contract start-ups; (15) GEO's ability to successfully pursue growth and continue to create shareholder value; (16) GEO's ability to obtain financing or access the capital markets in the future on acceptable terms or at all; and
Non-GAAP Financial Measures
This presentation includes Adjusted EBITDA and other non-GAAP financial measures such as Net Debt and Net Leverage. The non-GAAP measures provided herein may not be directly comparable to similar measures used by other companies in the Company's industry, as other companies may define such measures differently. The non-GAAP measures presented herein are not measurements of financial performance under GAAP, and should not be considered as alternatives to, and should only be considered together with, the Company's financial results in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results.
2
Highlights - Attractive Investment Characteristics
First Quarter Highlights
Successful Debt Refinancing
Attractive Equity Valuation
3
Financial Highlights
Revenues($ in millions)
Net Income($ in millions)
$3,000
$200
$171.7
$2,500
$2,256.6
$2,376.7
$2,413.2
$2,425 .0
$150
$2,000
$107.2
$1,500
$100
$77.2
$65.0*
$1,000
$50
$500
$-
$-
2021
2022
2023
2024E
2021
2022
2023
2024E
Adjusted EBITDA($ in millions)
$600
*Reflects $86 million pre-tax Loss on Extinguishment of Debt in 2Q2024 as a result of GEO's April 2024 debt refinancing.
$539.2
$507.2
$500
$500 .0
$467.0
$400
$300
$200
2021
2022
2023
2024E
4
* 2024E Based on Mid-point of FY2024 Financial Guidance issued on May 7, 2024
Company Overview
5
Company History
6
Diversified Government Service Provider
ICE Processing Centers
USMS Detention Facilities
State Correctional and Rehabilitation Facilities
Residential Reentry Centers/Halfway Houses
Day Reporting Centers Electronic Monitoring
7
8
Diversified U.S. Facility Footprint
49 GEO Secure Services Facilities
39 GEO Care Residential Facilities
8 Leased/Not Managed Facilities
9
International Services
4 International Facilities
10
Disclaimer
The GEO Group Inc. published this content on 10 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 June 2024 20:37:29 UTC.