The GEO Group, Inc. (NYSE: GEO) (“GEO”) today reported third quarter and first nine months of 2011 financial results. GEO reported total revenues for the third quarter 2011 of $406.8 million compared to total revenues of $327.9 million for the third quarter 2010. GEO reported net income for the third quarter 2011 of $21.3 million, or $0.34 per diluted share, compared to net income of $5.0 million, or $0.09 per diluted share for the third quarter of 2010. GEO’s third quarter 2011 net income includes $4.3 million, after-tax, in start-up/transition expenses; $0.3 million, after-tax, in international bid and proposal expenses, and a $0.2 million after-tax income effect related to the loss attributable to non-controlling interests.
Excluding these items, GEO reported Pro Forma net income of $26.1 million, or $0.41 per diluted share, for the third quarter 2011 compared to Pro Forma net income of $22.5 million, or $0.39 per diluted share for the third quarter 2010.
For the first nine months of 2011, GEO reported total revenues of $1.2 billion compared to total revenues of $895.6 million for the first nine months of 2010. Net income for the first nine months of 2011 increased to $58.8 million, or $0.91 per diluted share, from $39.7 million, or $0.75 per diluted share, for the first nine months of 2010. Pro forma net income for the first nine months of 2011 increased to $74.6 million, or $1.16 per diluted share, from pro forma net income of $58.5 million, or $1.10 per diluted share for the first nine months of 2010.
George C. Zoley, Chairman and Chief Executive Officer of GEO, said: “We are pleased with our strong third quarter earnings results. While we have experienced some contract discontinuations, which will impact the fourth quarter, our core operations in Detention & Corrections and GEO Care continue to deliver sound operational performance and strong earnings results. We have increased our Adjusted Funds from Operations guidance for 2011 to approximately $3.00 per share, which is indicative of the strength of our core operations. Our strong cash flows will continue to give us the ability to return value to our shareholders as evidenced by the execution of our share repurchase program during the third quarter. We continue to be very optimistic about the demand for our diversified services. We are currently pursuing procurements and future potential business development opportunities in the U.S. and internationally, which total approximately 30,000 beds.”