The GEO Group, Inc. (NYSE: GEO)
(“GEO”) today reported its financial results for the second quarter and first six months of 2012 and announced that GEO’s Board of Directors (GEO’s “Board”) has increased GEO’s quarterly dividend to $0.20 per share, or $0.80 per share annually, beginning with the first quarterly dividend which will be paid in September 2012.
Financial Results - Second Quarter 2012 Compared with Second Quarter 2011
GEO reported total revenues for the second quarter 2012 of $412.3 million compared to total revenues of $396.8 million for the second quarter 2011. GEO’s revenues and other financial data are presented throughout as retrospectively revised for discontinued operations. GEO reported income from continuing operations for the second quarter 2012 of $23.0 million, or $0.38 per diluted share, compared to income from continuing operations of $20.2 million, or $0.31 per diluted share for the second quarter of 2011. GEO’s second quarter 2012 income from continuing operations includes $1.1 million, after-tax, in start-up/transition expenses; $0.8 million, after-tax, in international bid and proposal expenses; and $0.2 million, after-tax, in transaction related expenses in connection with GEO’s previously announced acquisition of the partnership interests in Municipal Corrections Finance, L.P. (“MCF”).
Excluding these items, GEO reported Pro Forma income from continuing operations of $25.1 million, or $0.41 per diluted share, for the second quarter 2012 compared to Pro Forma income from continuing operations of $24.8 million, or $0.38 per diluted share for the second quarter 2011. Second quarter 2012 Adjusted EBITDA increased to $86.0 million from $80.1 million in the second quarter 2011. Adjusted Funds from Operations for the second quarter 2012 increased to $54.3 million, or $0.89 per diluted share, compared to $46.6 million, or $0.72 per diluted share, for the second quarter 2011.
George C. Zoley, Chairman and Chief Executive Officer of GEO, said: “We are very pleased with our second quarter results and confirmed outlook for the remainder of the year, which continue to reflect strong operational and financial performance from our diversified business units. This continued strong performance has allowed our Board to increase our quarterly dividend to $0.20 per share beginning with our first quarterly dividend, which will be paid in September. Our dividend policy is indicative of our long-term view that we can meaningfully return value to our shareholders while continuing to deleverage and pursue quality earnings growth.”