The GEO Group, Inc. (NYSE: GEO) (“GEO”) today reported its financial results for the first quarter 2012 and announced that GEO’s Board of Directors (GEO’s “Board”) has accelerated the implementation of GEO’s dividend policy and expects to declare a quarterly cash dividend of $0.10 per share in the third quarter of 2012, which will increase to $0.15 per share in the fourth quarter of 2012.
Financial Results - First Quarter 2012 Compared with First Quarter 2011
GEO reported total revenues for the first quarter 2012 of $412.3 million compared to total revenues of $391.8 million for the first quarter 2011. GEO reported net income for the first quarter 2012 of $15.1 million, or $0.25 per diluted share, compared to net income of $16.4 million, or $0.25 per diluted share for the first quarter of 2011. GEO’s first quarter 2012 net income includes $3.1 million, after-tax, in start-up/transition expenses; $0.4 million after-tax in international bid and proposal expenses; and $0.3 million after-tax in transaction related expenses in connection with GEO’s announced acquisition of the partnership interests in Municipal Corrections Finance, L.P. (“MCF”).
Excluding these items, GEO reported Pro Forma net income of $18.8 million, or $0.31 per diluted share, for the first quarter 2012 compared to Pro Forma net income of $22.7 million, or $0.35 per diluted share for the first quarter 2011. First quarter 2012 Adjusted EBITDA increased to $74.2 million from $73.1 million in the first quarter 2011. Adjusted Funds from Operations for the first quarter 2012 increased to $58.1 million, or $0.95 per diluted share, compared to $47.0 million, or $0.73 per diluted share, for the first quarter 2011.George C. Zoley, Chairman and Chief Executive Officer of GEO, said: “We are pleased with our first quarter results, which continue to reflect strong operational and financial performance from our diversified business units. We have increased our earnings outlook for 2012, and our Board has accelerated the implementation of our new dividend policy. We now expect to declare a quarterly cash dividend of $0.10 per share in the third quarter, and we will increase the quarterly cash dividend to $0.15 per share in the fourth quarter. This dividend policy is indicative of our long-term view that we can return value to our shareholders while continuing to naturally deleverage and pursue quality growth.”