The GEO Group, Inc. (NYSE: GEO) (“GEO”) today reported its financial results for the fourth quarter and full year 2011 and announced that GEO’s Board of Directors (GEO’s “Board”) has adopted a dividend policy and expects to declare quarterly cash dividends beginning in the fourth quarter of 2012.
Financial Results - Fourth Quarter 2011 Compared with Fourth Quarter 2010
GEO reported total revenues for the fourth quarter 2011 of $406.5 million compared to total revenues of $374.4 million for the fourth quarter 2010. GEO reported net income for the fourth quarter 2011 of $18.6 million, or $0.30 per diluted share, compared to net income of $23.0 million, or $0.36 per diluted share for the fourth quarter of 2010. GEO’s fourth quarter 2011 net income includes $5.2 million, after-tax, in start-up/transition expenses and a $0.1 million after-tax income effect related to the loss attributable to non-controlling interests.
Excluding these items, GEO reported Pro Forma net income of $23.9 million, or $0.39 per diluted share, for the fourth quarter 2011 compared to Pro Forma net income of $26.7 million, or $0.41 per diluted share for the fourth quarter 2010. Fourth quarter 2011 Adjusted EBITDA increased to $81.5 million from $68.4 million in the fourth quarter 2010. Adjusted Funds from Operations for the fourth quarter 2011 increased to $47.6 million, or $0.77 per diluted share, compared to $39.0 million, or $0.60 per diluted share, for the fourth quarter 2010.George C. Zoley, Chairman and Chief Executive Officer of GEO, said: “We are pleased with our fourth quarter and year-end results, which continue to reflect sound operational performance and earnings results from our diversified business units. We have provided our initial earnings guidance for 2012 which is impacted by the deactivation of our California contracts, additional start-up and staffing expenses for our GEOAmey project as a result of incumbent employee laws in the United Kingdom, and approximately $0.15 per share in carrying costs for our idle facilities. Notwithstanding these factors, we have issued strong Adjusted Funds from Operations guidance for 2012 of $3.18 to $3.34 per share, which is indicative of what we believe is the strength of our core operations and cash flows.