The GEO Group, Inc. (GEO) 8-K The Geo Group Reports Third Quarter 2010 Results and Raises Fourth Quarter 2010 Guidance

Exhibit 99.1

NEWS RELEASE

THE GEO GROUP REPORTS THIRD QUARTER 2010 RESULTS
AND RAISES FOURTH QUARTER 2010 GUIDANCE

• 3Q10 GAAP Earnings from Continuing Operations of $5.0 Million-$0.09 EPS

• 3Q10 Pro Forma Earnings from Continuing Operations increased to $22.5 Million-$0.39 EPS

• Increased 4Q10 Pro Forma EPS Guidance to $0.38 to $0.40

• Increased Full-Year 2010 Pro Forma EPS Guidance to $1.48 to $1.50

Boca Raton, Fla. — November 4, 2010 — The GEO Group (NYSE: GEO)(“GEO”) today reported third quarter 2010 financial results. GEO reported GAAP income from continuing operations for the third quarter 2010 of $5.0 million, or $0.09 per diluted share, compared to GAAP income from continuing operations of $19.3 million, or $0.37 per diluted share for the third quarter of 2009. GEO’s third quarter 2010 GAAP income from continuing operations includes $10.2 million, after-tax, in one-time transaction expenses related to GEO’s merger with Cornell Companies on August 12, 2010, which are reported in GEO’s general and administrative expenses; a $4.8 million after-tax loss related to the early extinguishment of debt; and $2.3 million in after-tax start-up/transition expenses.

Excluding these items, GEO reported Pro Forma income from continuing operations of $22.5 million, or $0.39 per diluted share, compared to Pro Forma income from continuing operations of $19.9 million, or $0.38 per diluted share for the third quarter of 2009.

For the first nine months of 2010, GEO reported GAAP income from continuing operations of $39.7 million, or $0.75 per diluted share, compared to $50.9 million, or $0.98 per diluted share for the first nine months of 2009. Pro forma income from continuing operations for the first nine months of 2010 increased to $58.5 million, or $1.10 per diluted share, from pro forma income from continuing operations of $52.8 million, or $1.02 per diluted share for the first nine months of 2009.

George C. Zoley, Chairman and Chief Executive Officer of GEO, said: “We are pleased with our strong third quarter earnings results and our improved outlook for the fourth quarter and full-year 2010. Our financial performance continues to be driven by sound operational results from our diversified business units of U.S. Corrections, GEO Care and International Services. The integration of our merger with Cornell Companies has positioned us to meet the increasing demand for correctional, detention and residential treatment services. We continue to be optimistic about the long term growth prospects in our industry.”

Pro forma income from continuing operations excludes start-up/transition expenses, and other items as set forth in the table below, which presents a reconciliation of pro forma income from continuing operations to GAAP income from continuing operations for the third quarter and the first nine months of 2010 and 2009. Please see the section of this press release below entitled “Important Information on GEO’s Non-GAAP Financial Measures” for information on how GEO defines pro forma income from continuing operations.

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Contact:Pablo E. Paez	(866) 301 4436
Vice President, Corporate Relations

NEWS RELEASE

Table 1. Reconciliation of Pro Forma Income from Continuing Operations to GAAP Income from Continuing Operations

	13 Weeks Ended		13 Weeks Ended			39 Weeks Ended		39 Weeks Ended
(In thousands except per share data)	3-Oct-10		27-Sep-09			3-Oct-10		27-Sep-09
Income from continuing operations	$	5,010	$	19,302		$	39,743	$	50,949
Net (income) loss attributable to non-controlling interests		271		(44	)		227		(129	)
Start-up/transition expenses, net of tax		2,287		634			2,287		1,708
International bid and proposal expenses, net of tax		—		—			—		306
Cornell Merger-related expenses, net of tax		10,206		—			11,519		—
Loss on Extinguishment of Debt, net of tax		4,758		—			4,758		—
Pro forma income from continuing operations	$	22,532	$	19,892		$	58,534	$	52,834
Diluted earnings per share
Income from Continuing Operations		0.09	$	0.37		$	0.75	$	0.98
Net (income) loss attributable to non-controlling interests		—		—			—		—
Start-up/transition expenses, net of tax		0.04		0.01			0.04		0.03
International bid and proposal expenses, net of tax		—		—			—		0.01
Cornell Merger-related expenses, net of tax		0.18		—			0.22		—
Loss on Extinguishment of Debt, net of tax		0.08		—			0.09		—
Diluted pro forma earnings per share	$	0.39	$	0.38		$	1.10	$	1.02
Weighted average common shares outstanding-diluted		58,198		51,950			53,044		51,847

Business Segment Results

The following table presents a summary of GEO’s segment results for the third quarter and the first nine months of 2010 and 2009.

Table 2. Business Segment Results

	13 Weeks Ended		13 Weeks Ended		39 Weeks Ended		39 Weeks Ended
	3-Oct-10		27-Sep-09		3-Oct-10		27-Sep-09
Revenues
U.S. Corrections	$	217,808	$	189,692	$	599,598	$	568,202
GEO Care		60,934		30,636		135,409		92,623
International Services		47,553		36,668		138,142		92,217
Construction		1,638		37,869		22,421		77,263
	$	327,933	$	294,865	$	895,570	$	830,305
Operating Expenses
U.S. Corrections	$	154,686	$	135,700	$	429,922	$	413,781
GEO Care		50,757		26,332		114,645		79,184
International Services		44,523		34,416		129,008		85,360
Construction		1,134		37,899		20,773		77,088
	$	251,100	$	234,347	$	694,348	$	655,413
Depreciation & Amortization Expense
U.S. Corrections	$	11,048	$	8,881	$	27,131	$	26,891
GEO Care		1,905		359		3,679		1,132
International Services		431		376		1,286		1,039
Construction		—		—		—		—
	$	13,384	$	9,616	$	32,096	$	29,062

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Contact:Pablo E. Paez	(866) 301 4436
Vice President, Corporate Relations

NEWS RELEASE

Table 2. Business Segment Results (Continued)

	13 Weeks Ended			13 Weeks Ended			39 Weeks Ended			39 Weeks Ended
	3-Oct-10			27-Sep-09			3-Oct-10			27-Sep-09
Compensated Mandays
U.S. Corrections		3,955,785			3,584,062			10,997,138			10,708,144
GEO Care		438,999			133,094			757,256			400,032
International Services		645,697			548,821			1,886,492			1,599,143
		5,040,481			4,265,977			13,640,886			12,707,319
Revenue Producing Beds
U.S. Corrections		48,477			42,088			48,477			42,088
GEO Care		7,719			1,516			7,719			1,516
International Services		7,147			6,031			7,147			6,031
		63,343			49,635			63,343			49,635
Average Occupancy
U.S. Corrections		93.9	%		93.6	%		94.3	%		94.0	%
GEO Care		92.4	%		96.5	%		92.9	%		96.7	%
International Services		100.0	%		100.0	%		100.0	%		100.0	%
		94.5	%		94.5	%		94.9	%		94.8	%

U.S. Corrections

For the third quarter of 2010, U.S. Corrections revenue increased by approximately $28.1 million year-over-year. This revenue increase was primarily driven by GEO’s merger with Cornell Companies, which added approximately $29.8 million in revenues from the integration of Cornell’s correctional and detention facilities, which were offset by the transition of managed-only contracts for the Graceville Correctional Facility and the Moore Haven Correctional Facility in Florida and the Bridgeport Correctional Center and South Texas Intermediate Sanction Facility in Texas.

GEO Care

For the third quarter of 2010, GEO Care revenue increased by approximately $30.3 million year-over-year. This revenue increase was primarily driven by GEO’s merger with Cornell Companies, which added approximately $23.8 million in revenues from the integration of Cornell’s Community Based and Youth Services facilities under GEO Care, and by the acquisition of the 354-bed Columbia Regional Care Center in South Carolina in the fourth quarter of 2009.

International Services

For the third quarter of 2010, International Services revenue increased by approximately $10.9 million year-over-year driven by the activation of the Parklea Correctional Centre in Australia; the opening of a 360-bed expansion at the Harmondsworth Immigration Removal Centre in the United Kingdom; and positive foreign exchange rate fluctuations.

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Contact:Pablo E. Paez	(866) 301 4436
Vice President, Corporate Relations

NEWS RELEASE

Adjusted EBITDA

Third quarter 2010 Adjusted EBITDA increased to $61.7 million from $46.7 million in the third quarter of 2009. For the first nine months of 2010, Adjusted EBITDA increased to $151.8 million from $130.7 million for the first nine months of 2009. Please see the section of this press release below entitled “Important Information on GEO’s Non-GAAP Financial Measures” for information on how GEO defines Adjusted EBITDA. The following table presents a reconciliation from Adjusted EBITDA to GAAP Net income for the third quarter and the first nine months of 2010 and 2009.

Table 3. Reconciliation from Adjusted EBITDA to GAAP Net Income

	13 Weeks Ended		13 Weeks Ended			39 Weeks Ended		39 Weeks Ended
(In thousands)	3-Oct-10		27-Sep-09			3-Oct-10		27-Sep-09
Net income	$	5,010	$	19,302		$	39,743	$	50,603
Interest expense, net		10,183		5,309			23,730		16,978
Income tax provision		7,547		11,510			28,560		30,374
Depreciation and amortization		13,384		9,616			32,096		29,062
EBITDA	$	36,124	$	45,737		$	124,129	$	127,017
Adjustments, pre-tax
Net (income) loss attributable to non-controlling interests		271		(44	)		227		(129	)
Discontinued operations, (income) loss		—		—			—		562
Start-up/transition expenses		3,812		1,034			3,812		2,785
International bid and proposal expenses		—		—			—		499
Cornell Merger-related expenses		13,544		—			15,688		—
Loss on Extinguishment of Debt		7,933		—			7,933		—
Adjusted EBITDA	$	61,684	$	46,727		$	151,789	$	130,734

Adjusted Funds from Operations

Adjusted Funds from Operations for the third quarter of 2010 increased to $39.0 million compared to $31.1 million for the third quarter of 2009. For the first nine months of 2010, Adjusted Funds from Operations increased to $93.2 million from $84.0 million for the first nine months of 2009.

Please see the section of this press release below entitled “Important Information on GEO’s Non-GAAP Financial Measures” for information on how GEO defines Adjusted Funds from Operations. The following table presents a reconciliation from Adjusted Funds from Operations to GAAP income from continuing operations for the third quarter and the first nine months of 2010 and 2009.

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Contact:Pablo E. Paez	(866) 301 4436
Vice President, Corporate Relations

NEWS RELEASE

Table 4. Reconciliation of Adjusted Funds from Operations to GAAP Income from Continuing Operations

	13 Weeks Ended			13 Weeks Ended			39 Weeks Ended			39 Weeks Ended
(In thousands)	3-Oct-10			27-Sep-09			3-Oct-10			27-Sep-09
Income from Continuing Operations	$	5,010		$	19,302		$	39,743		$	50,949
Net (income) loss attributable to non-controlling interests		271			(44	)		227			(129	)
Depreciation and Amortization		13,384			9,616			32,096			29,062
Income Tax Provision		7,547			11,510			28,560			30,374
Income Taxes Paid		(5,523	)		(7,551	)		(24,851	)		(23,963	)
Stock Based Compensation		1,167			976			3,533			3,357
Maintenance Capital Expenditures		(4,002	)		(3,000	)		(10,292	)		(6,679	)
Equity in Earnings of Affiliates, Net of Income Tax		(1,149	)		(904	)		(2,868	)		(2,407	)
Amortization of Debt Costs and Other Non-Cash Interest		856			1,167			3,398			3,471
Cornell Merger-related expenses		13,544			—			15,688			—
Loss on Extinguishment of Debt		7,933			—			7,933			—
Adjusted Funds from Operations	$	39,038		$	31,072		$	93,167		$	84,035

Stock Repurchase Program

On February 22, 2010, GEO’s Board of Directors approved a stock repurchase program of up to $80.0 million of GEO’s common stock effective through March 31, 2011. Through the end of the third quarter 2010, GEO had repurchased approximately 4.0 million shares of its common stock through open-market transactions for approximately $80.0 million. GEO has approximately 65.0 million diluted shares outstanding.

Merger with Cornell Companies, Inc.

On August 12, 2010, GEO merged with Cornell Companies. Following the merger, GEO now manages and/or owns 78,000 beds at 116 correctional, detention and residential treatment facilities.

The merger is expected to increase GEO’s total annualized revenues by approximately $400 million to approximately $1.5 billion. The merger is expected to generate annual cost synergies of $12.0 million-$15.0 million. As previously disclosed, GEO expects the merger to have a neutral impact on its pro forma 2010 earnings per share excluding one-time transaction-related expenses and to become accretive to pro forma earnings in 2011.

Increased 2010 Financial Guidance

GEO has increased its earnings guidance for 2010. GEO has increased its full-year 2010 earnings to a pro forma range of $1.48 to $1.50 per diluted share, exclusive of $0.04 per diluted share in after-tax start-up/transition expenses. GEO expects 2010 total revenues to be in the range of $1.26 billion to $1.27 billion, including $22.0 million in construction revenues and approximately $154.0 million in revenues from Cornell. GEO’s updated full-year guidance excludes $27 million to $28 million in pre-tax one-time transaction-related expenses related to the merger with Cornell.

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Contact:Pablo E. Paez	(866) 301 4436
Vice President, Corporate Relations

NEWS RELEASE

For the fourth quarter 2010, GEO increased its total revenue guidance to a range of $370 million to $375 million with no construction revenues and approximately $100.0 million in revenues from Cornell. GEO increased its fourth quarter earnings guidance to a pro forma range of $0.38 to $0.40 per diluted share. GEO’s fourth quarter guidance excludes $3.0 million to $4.0 million in pre-tax one-time transaction-related expenses related to the merger with Cornell.

Conference Call Information

GEO has scheduled a conference call and simultaneous webcast at 11:00 AM (Eastern Time) on November 5, 2010 to discuss GEO’s third quarter 2010 financial results as well as its progress and outlook. The call-in number for the U.S. is 1-866-770-7051 and the international call-in number is 1-617-213-8064. The participant pass-code for the conference call is 83405214. In addition, a live audio webcast of the conference call may be accessed on the Conference Calls/Webcasts section of GEO’s investor relations home page atwww.geogroup.com. A replay of the audio webcast will be available on the website for one year. A telephonic replay of the conference call will be available until December 5, 2010 at 1-888-286-8010 (U.S.) and 1-617-801-6888 (International). The pass-code for the telephonic replay is 12671750.

About The GEO Group, Inc.

The GEO Group is a world leader in the delivery of correctional, detention, and residential treatment services to federal, state, and local government agencies around the globe. 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. GEO’s worldwide operations include the management and/or ownership of approximately 78,000 beds at 116 correctional, detention and residential treatment facilities, including projects under development.

Important Information on GEO’s Non-GAAP Financial Measures

Pro Forma Income From Continuing Operations, Adjusted EBITDA and Adjusted Funds From Operations are non-GAAP financial measures that are presented as supplemental disclosures.

Pro Forma Income From Continuing Operations is defined as income from continuing operations adjusted for net (income) loss attributable to non-controlling interest, start-up/transition expenses, international bid and proposal expenses, Cornell-merger related expenses, net of tax, and loss on extinguishment of debt. GEO believes that Pro Forma Income From Continuing Operations is useful to investors as it provides information about the performance of GEO’s overall business because such measure eliminates the effects of unusual or non-recurring charges that are not directly attributable to GEO’s underlying operating performance, it provides disclosure on the same basis as that used by GEO’s management and it provides consistency in GEO’s financial reporting and therefore continuity to investors for comparability purposes. GEO’s management uses Pro Forma Income From Continuing Operations to monitor and evaluate its operating performance and to facilitate internal and external comparisons of the historical operating performance of GEO and its business units.

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Contact:Pablo E. Paez	(866) 301 4436
Vice President, Corporate Relations

NEWS RELEASE

Adjusted EBITDA is defined as net income before net interest expense, income tax and depreciation and amortization, adjusted for net (income) loss attributable to non-controlling interest, discontinued operations, start-up/transition expenses, international bid and proposal expenses, Cornell-merger related expenses, and loss on extinguishment on debt. GEO believes that Adjusted EBITDA is useful to investors as it provides information about the performance of GEO’s overall business because such measure eliminates the effects of unusual or non-recurring charges that are not directly attributable to GEO’s underlying operating performance, it provides disclosure on the same basis as that used by GEO’s management and it provides consistency in GEO’s financial reporting and therefore continuity to investors for comparability purposes. GEO’s management uses Adjusted EBITDA to monitor and evaluate its operating performance and to facilitate internal and external comparisons of the historical operating performance of GEO and its business units.

Adjusted Funds From Operations is defined as income from continuing operations excluding depreciation and amortization, income taxes, stock-based compensation, maintenance capital expenditures, equity in earnings of affiliates and amortization of debt costs and other non-cash interest. GEO believes that Adjusted Funds From Operations is useful to investors as it provides information regarding cash that GEO’s operating business generates before taking into account certain cash and non-cash items that are non-operational or infrequent in nature, it provides disclosure on the same basis as that used by GEO’s management and it provides consistency in GEO’s financial reporting and therefore continuity to investors for comparability purposes. GEO’s management uses Adjusted Funds From Operations to monitor and evaluate its operating performance and to facilitate internal and external comparisons of the historical operating performance of GEO and its business units.

A reconciliation of these non-GAAP measures to the most directly comparable GAAP measurements of these items is included in Tables 1, 3 and 4, respectively.

Safe-Harbor Statement

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, costs, and cost synergies, our ability to maintain growth and strengthen contract relationships, and our ability to meet the increasing demand for correctional, detention, and residential treatment services, and long-term growth prospects in our industry. 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 meet its financial guidance for 2010 given the various risks to which its business is exposed; (2) GEO’s ability to successfully pursue further growth and continue to enhance shareholder value; (3) the risk that the Cornell business will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; (4) the risk that the expected increased revenues resulting from the acquisition of Cornell may not be fully realized or may take longer to realize than expected; (5) the risk that the cost synergies from the transaction may not be fully realized or may take longer to realize than expected; (6) any difficulties encountered in maintaining relationships with customers, employees or suppliers as a result of the transaction with Cornell; (7) GEO’s ability to access the capital markets in the future on satisfactory terms or at all; (8) risks associated with GEO’s ability to control operating costs associated with contract start-ups; (9) 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; (10) GEO’s ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (11) GEO’s ability to obtain future financing on acceptable terms; (12) GEO’s ability to sustain company-wide occupancy rates at its facilities; and (13) other factors contained in GEO’s Securities and Exchange Commission filings, including the forms 10-K, 10-Q and 8-K reports.

Contact:Pablo E. Paez	(866) 301 4436
Vice President, Corporate Relations

NEWS RELEASE

Third quarter and first nine months of 2010 financial tables to follow:

THE GEO GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRTEEN AND THIRTY-NINE WEEKS ENDED
OCTOBER 3, 2010 AND SEPTEMBER 27, 2009
(In thousands, except per share data)
(UNAUDITED)

	Thirteen Weeks Ended						Thirty-nine Weeks Ended
	October 3, 2010			September 27, 2009			October 3, 2010			September 27, 2009
Revenues	$	327,933		$	294,865		$	895,570		$	830,305
Operating expenses		251,100			234,347			694,348			655,413
Depreciation and amortization		13,384			9,616			32,096			29,062
General and administrative expenses		33,925			15,685			72,028			49,936
Operating income		29,524			35,217			97,098			95,894
Interest income		1,734			1,224			4,448			3,520
Interest expense		(11,917	)		(6,533	)		(28,178	)		(20,498	)
Loss on extinguishment of debt		(7,933	)		—			(7,933	)		—
Income before income taxes, equity in earnings of affiliate and discontinued operations		11,408			29,908			65,435			78,916
Provision for income taxes		7,547			11,510			28,560			30,374
Equity in earnings of affiliate, net of income tax provision of $449, $352, $1,672 and $936		1,149			904			2,868			2,407
Income from continuing operations		5,010			19,302			39,743			50,949
Loss from discontinued operations, net of tax provision (benefit) of $0, $0, $0 and $(216)		—			—			—			(346	)
Net income	$	5,010		$	19,302		$	39,743		$	50,603
Net (income) loss attributable to noncontrolling interests		271			(44	)		227			(129	)
Net income attributable to The GEO Group Inc.	$	5,281		$	19,258		$	39,970		$	50,474
Weighted-average common shares outstanding:
Basic		57,799			50,900			52,428			50,800
Diluted		58,198			51,950			53,044			51,847
Income per common share attributable to The GEO Group Inc.:
Basic:
Income from continuing operations	$	0.09		$	0.38		$	0.76		$	1.00
Income from discontinued operations		—			—			—			(0.01	)
Net income per share-basic	$	0.09		$	0.38		$	0.76		$	0.99
Diluted:
Income from continuing operations	$	0.09		$	0.37		$	0.75		$	0.98
Loss from discontinued operations		—			—			—			(0.01	)
Net income per share-diluted	$	0.09		$	0.37		$	0.75		$	0.97

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Contact:Pablo E. Paez	(866) 301 4436
Vice President, Corporate Relations

NEWS RELEASE

THE GEO GROUP, INC.
CONSOLIDATED BALANCE SHEETS
OCTOBER 3, 2010 AND JANUARY 3, 2010
(In thousands, except share data)

	October 3, 2010		January 3, 2010
	(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	53,766	$	33,856
Restricted cash and investments		40,180		13,313
Accounts receivable, less allowance for doubtful accounts of $5,605 and $429		261,683		200,756
Deferred income tax asset, net		31,195		17,020
Other current assets		21,443		14,689
Total current assets		408,267		279,634
Restricted Cash and Investments		39,766		20,755
Property and Equipment, Net		1,498,886		998,560
Assets Held for Sale		4,348		4,348
Direct Finance Lease Receivable		36,835		37,162
Goodwill		244,568		40,090
Intangible Assets, Net		92,342		17,579
Other Non-Current Assets		64,948		49,690
	$	2,389,960	$	1,447,818
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	66,799	$	51,856
Accrued payroll and related taxes		43,690		25,209
Accrued expenses		119,323		80,759
Current portion of capital lease obligations, long-term debt and non-recourse debt		41,173		19,624
Total current liabilities		270,985		177,448
Deferred Income Tax Liability		51,069		7,060
Other Non-Current Liabilities		50,996		33,142
Capital Lease Obligations		13,888		14,419
Long-Term Debt		802,506		453,860
Non-Recourse Debt		191,603		96,791
Total Shareholders’ Equity		1,008,913		665,098
	$	2,389,960	$	1,447,818

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Contact:Pablo E. Paez	(866) 301 4436
Vice President, Corporate Relations