The GEO Group (NYSE: GEO)
(“GEO”), the world’s leading provider of diversified correctional, detention, and community reentry services, reported today its financial results for the fourth quarter and full year 2012. GEO’s financial results are presented throughout as retrospectively revised for discontinued operations resulting from GEO’s previously announced discontinuation of three managed-only contracts with the State of Mississippi during the third quarter of 2012 and the divestiture of the healthcare facility contracts previously held by its former wholly-owned subsidiary, GEO Care, Inc., which was completed on December 31, 2012 (the “GEO Care Divestiture”) in connection with GEO’s conversion to a real estate investment trust (“REIT”) as of January 1, 2013. Please see the section of this press release below entitled “Note on GEO Care Divestiture.”
Fourth Quarter 2012 Highlights
- Income from Continuing Operations of $1.55 Per Diluted Share
- Pro Forma Income from Continuing Operations of $0.44 Per Diluted Share
- Net Operating Income of $97.5 million
- Normalized FFO of $0.79 Per Diluted Share
- AFFO of $0.84 Per Diluted Share
For the fourth quarter 2012, GEO reported Normalized FFO of $49.0 million, or $0.79 per diluted share, an increase of 18.0% from $41.5 million, or $0.67 per Diluted Share, for the fourth quarter 2011. GEO reported fourth quarter 2012 AFFO of $51.8 million, or $0.84 per diluted share, an increase of 19.7% from $43.3 million, or $0.70 per diluted share, for the fourth quarter 2011.
Net operating income for the fourth quarter 2012 increased to $97.5 million from $96.1 million for the fourth quarter of 2011. Net operating income, or gross profit, is defined as revenues less operating expenses, excluding depreciation and amortization expense and general and administrative expenses.
George C. Zoley, Chairman and Chief Executive Officer of GEO, said: “We are pleased with our fourth quarter results and confirmed outlook for 2013, which continue to reflect strong operational and financial performance from our diversified business units. During 2012, we achieved a historic milestone by completing the steps required for our conversion to a real estate investment trust on January 1, 2013, which has allowed us to increase our annual dividends from $0.80 to $2.00 per share. The decisive actions taken by our Board and our management team positioned GEO to become the first fully integrated equity REIT in our industry, and we remain committed to maximizing value for our shareholders.”