The GEO Group (NYSE:GEO)
(“GEO”) announced today the signing of contracts with the California Department of Corrections and Rehabilitation (the “Department”) for the housing of 1,400 California inmates at the company-owned, 700-bed Central Valley Modified Community Correctional Facility and the company-owned, 700-bed Desert View Modified Community Correctional Facility (the “Facilities”) located in McFarland, California and Adelanto, California respectively.
The contracts with the Department will be five years in length, and GEO expects to begin the intake of inmates at the Facilities in the fourth quarter of 2013. The Facilities are expected to generate approximately $30.7 million in combined annualized revenues at full occupancy.
George C. Zoley, Chairman and CEO of GEO, said, “We are thankful for the confidence placed in our company by the California Department of Corrections and Rehabilitation. The reactivation of our Central Valley and Desert View Modified Community Correctional Facilities will play an important role in helping meet the need for correctional bed space in the State of California. We look forward to our continued partnership with the Department and the communities of McFarland and Adelanto.”
The GEO Group, Inc. (NYSE:GEO) is the first fully integrated equity real estate investment trust specializing in the design, financing, development, and operation of correctional, detention, and community reentry facilities around the globe. GEO is the world's leading provider of diversified correctional, detention, and community reentry services to government agencies worldwide with operations in the United States, Australia, South Africa, and the United Kingdom. GEO's worldwide operations include the ownership and/or management of 96 facilities totaling approximately 73,000 beds, including projects under development, with a growing workforce of approximately 18,000 professionals.
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.