The GEO Group (NYSE:GEO)
(“GEO”) announced today the signing of a new long-term contract, effective from November 1, 2013 through June 30, 2018, with the California Department of Corrections and Rehabilitation (the “Department”) for the housing of 700 California inmates at the company-owned Golden State Modified Community Correctional Facility (the “Facility”) located in McFarland, California.
The new agreement, which will replace GEO’s existing contract at the Facility that was previously effective through June 30, 2016, will expand the Facility’s contract capacity by 100 beds and is expected to generate an additional $2.2 million in annual revenues for GEO. At full occupancy of 700 beds, the Facility is expected to generate approximately $15.3 million in annualized revenues.
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 through this new long-term agreement and 100-bed contract capacity expansion. Our Golden State Modified Community Correctional Facility plays 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 community of McFarland.”
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, community reentry, and electronic monitoring 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.