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The GEO Group, Inc. (NYSE: GEO) (“GEO”) today reported its financial results for the third quarter and first nine months of 2012 and provided an update on its ongoing review of a potential conversion into a Real Estate Investment Trust (“REIT”).
Financial Results - Third Quarter 2012 Compared with Third Quarter 2011
GEO reported total revenues for the third quarter 2012 of $411.5 million compared to total revenues of $395.7 million for the third 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 third quarter 2012 of $16.5 million, or $0.27 per diluted share, compared to income from continuing operations of $20.7 million, or $0.33 per diluted share for the third quarter of 2011. GEO’s third quarter 2012 income from continuing operations includes a $0.9 million after-tax loss attributable to non-controlling interests; $1.3 million, after-tax, in start-up/transition expenses; $1.1 million, after-tax, in international bid and proposal expenses; $1.0 million, after-tax, in non-recurring expenses including M&A related expenses in connection with GEO’s previously announced acquisition of the partnership interests in Municipal Corrections Finance, L.P. (“MCF”), and a $5.0 million after-tax loss related to the early extinguishment of debt in connection with the previously-announced redemption of the MCF bonds.
Excluding these items, GEO reported Pro Forma income from continuing operations of $25.7 million, or $0.42 per diluted share, for the third quarter 2012 compared to Pro Forma income from continuing operations of $25.5 million, or $0.40 per diluted share for the third quarter 2011. Third quarter 2012 Adjusted EBITDA increased to $86.7 million from $81.1 million in the third quarter 2011. GEO reported Adjusted Funds from Operations for the third quarter 2012 of $57.9 million, or $0.94 per diluted share, compared to $53.6 million, or $0.84 per diluted share, for the third quarter 2011.