The GEO Group (NYSE: GEO) (“GEO”) announced today that it has signed a contract with the United States Marshals Service for the housing of up to 320 federal detainees at the company-owned Aurora Detention Facility in Colorado.
The new ten-year contract is effective October 1, 2012 and is expected to generate approximately $8.2 million in incremental annual revenues at full occupancy with profit margins in-line with GEO’s company-owned facilities.
George C. Zoley, Chairman and CEO of GEO, said, “We are pleased with the signing of this important contract for the housing of federal detainees at our Aurora Detention Facility. We appreciate the confidence placed in our Company by the U.S. Marshals Service and look forward to building on our long-standing public-private partnership with the agency.”
The GEO Group, Inc. is the world’s leading diversified provider of correctional, detention, and residential treatment services to federal, state, and local government agencies around the globe. GEO’s worldwide operations include 20,000 employees, 108 correctional, detention and residential treatment facilities, including projects under development, and 75,000 owned and/or managed beds. GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO represents government clients in the United States, Australia, South Africa, and the United Kingdom.This press release contains forward-looking statements regarding future events and future performance of GEO that involve risks and uncertainties that could materially affect actual results, including statements regarding estimated earnings, revenues and costs and our ability to maintain growth and strengthen contract relationships. Factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to: (1) GEO’s ability to successfully pursue further growth and continue to enhance shareholder value; (2) GEO’s ability to access the capital markets in the future on satisfactory terms or at all; (3) risks associated with GEO’s ability to control operating costs associated with contract start-ups; (4) 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; (5) GEO’s ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (6) GEO’s ability to obtain future financing on acceptable terms; (7) GEO’s ability to sustain company-wide occupancy rates at its facilities; and (8) other factors contained in GEO’s Securities and Exchange Commission filings, including the forms 10-K, 10-Q and 8-K reports.