GEO - Earnings call transcript Q3 2020

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Operator

Good morning and welcome to the GEO Group Third Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. to President conference of like Paez, to now Vice Executive Corporate would turn over the Pablo I Relations. Please go ahead.

Pablo Paez

and Thank thank you Executive discussion morning today are everyone us With Chairman, earnings Good Group's today's Chief Care, This Brian President results Zoley, of Davis, XXXX GEO of Founder. Officer. morning, you, and for The third Blake will outlook. Chief Officer, our Ann us Schlarb, Secure quarter Services. results. George and Financial for Evans, operator. President we joining discuss of GEO GEO third and quarter

with We supplemental from will our conclude question non-GAAP disclosure GAAP basis basis will and discuss included session. the also morning. we live Today, call This is conference information the on to being non-GAAP investors.geogroup.com. webcast press is release a call we results basis reconciliation answer A in this at website issued investor and information.

will give statements your including the various of today, within laws. the statements discuss matters. much beliefs These our provisions regarding may we answers with questions to Harbor the current forward-looking of and information respect Additionally, the fall intended expectations securities to to response include we are in Safe forward-looking

over may statements various that, and please results from actual and the our With reports. including me and XX-Q, result to X-K in Exchange Chairman Zoley. factors George? the our allow materially turn filings, forward-looking Our in Commission as those contained CEO, differ call this of a Securities George Form to XX-K,

George Zoley

the in full morning and our third results Pablo, and increased quarter we everyone. good the for reported guidance you, morning our This Thank to year. financial quarter fourth

we experienced performance. quarter, the in second than which favorable a cost financial experienced During the in we third continuation expected had better resulted trends of quarter, the

COVID-XX quarters, While we ongoing favorable and associated financial last are challenges by trends continue with two cost the these pandemic. face the to we operational over encouraged

of to devices health of our those Services recently deployed acquisition of employees and and the times. through that and with employees, the on facilities have company in rapid the associated Secure the have care XX remain and has GEO one and and Our November. of priority, outset to have our our facilities resilience commitment our COVID-XX our our risks inmates, of equipment, unprecedented procuring we expect the our for employees, allowed detainees believe front-line evaluating we up equipment GEO and continued employees pandemic, these Ensuring steps. across safety been as all number of of We have and end steadily and those these facilities, steps and including our the - by From to to protected Abbott to manages at testing the to with the testing all implemented our of are face test always our incredible personal steps have show our our the pandemic. focus all taken we diagnostic residential capabilities, we ramping and focused facilities we facilities in masks personal on protective been have continuously risks most our mitigate mitigate

operations several across While services segments pandemic government of negative company. as we have our has financial had continued the an a impact provider, our COVID essential

Bureau ICE, experienced last overall a at US of quarters, for Federal the our levels two facilities Service, have Prisons. Marshal Over we decline in the occupancy and

our impacted reporting levels due GEO facilities lower centers, by also services across and re-entry programs, occupancy to been has Our segment Care COVID-XX. day youth

Georgia of at With the expectation contract COVID-XX. facility have had as populations decided Ray through our to result James, declining segment to not our have levels a the US we the that the our announced levels lower continue respect occupancy the Prisons, rebid facilities year. well begun previously that is ICE of stabilize, due as end Federal Marshals will Bureau and Care operate to in as agency our D. to federal While of part GEO to for occupancy

contract, a the quarter, the previously which evaluates was XXth During extension this entered September needs. its as set of third to expire we Bureau into future four-month capacity

Our updated reflects full-year end contract the this fourth January through extension the financial of in and the guidance quarter of XXXX. now

ruling with During end ICE to expect by Appeals this the requirements. of McFarland, week, fully conditional that of issued of the activation unanimously Valley a quarter, Golden we the State state the and operations annexes at by which for the third Golden year. Central also normalized the we of began US Xth City legal ruled State Circuit use the the achieve McFarland In all Court Annex California, recent complied permits our

operational of October XX, to provided the business by in the provision an we of of into our contract assets California real essential they for in the Valley we activating on hopeful assets, supported been estate challenges And contracts to is these real government underpinned Democratic - are process are the state the legislative our to during of in despite to at in long-term entered Republican by has cash the both Desert near and high these the California. able the are modification COVID-XX We that levels when and and real services. stability activate strength Central View government pandemic. also and under associated either and times party annex, and quality services continue earnings remain agencies annex - the believe believe be positive We've government. branch of representative control with essential future. flows administrations We federal the milestones Additionally,

will company either our elections. under following party that diversified Government expect political Federal valuable the the be services provide to upcoming to continue able to We

discussed to our quarterly the we cash million as and this $X.XX the expect recognize dividend the debt. our in we we debt apply able approximately of importance current minimum the access role reduced stated, service have per paid flows to excess preservation regarding Board $XXX to debt third have approximately down our in we To net net to repayment allocate previously and the this payments million capital. concerns have quarter, has political pay our debt net to cash down also of quarter, that debt in a capital created debt hope thereafter last $XX We million of share our recognize and a annually and towards year of environment. given XXXX has during current - to be provider to order we end, mischaracterization $XX rhetoric of paying down As excess government Directors Through flow in as repayment. future end

annual to opportunities in our and the expect cost identify Additionally, we facility are and process currently savings corporate undergoing levels. budgeting

or identified and of to review third assets the and potential At are have sale our this turn company results, over We also number outlook, a liquidity these I'll position. government owned agencies of Brian to party individuals. to time, the assets call Evans exploring to

Brian Evans

George. you, $X.XX revenues everyone. reported diluted morning, Thank income million share. Good third to $XXX GEO of we quarter of approximately net per Today attributable and

quarter million a pre-tax gain $XXX,XXX close-out assets, $X.X on $X.X results million in COVID-related expenses. reflect of in third $X.X pre-tax estate expenses, start-up pre-tax pre-tax real a in loss Our pre-tax debt, million expenses, extinguishment and on $X.X the million

net adjusted quarter third income of diluted reported we items, these $X.XX share. per Excluding

share. per AFFO of third $X.XX also reported quarter diluted We

occupancy our quarters. Moving of and segments resulted in second continues pandemic negative in continuing company. outlook, facilities lower at and COVID-XX late the programs our has levels and pandemic to to a The have March through impact our third several of the beginning on several

through end While US occupancy levels have the Marshals occupancy to facilities expect begun our of ICE lower continue we year. and stabilize, to levels at the

centers, Our reporting segment of lower services day continues re-entry occupancy facilities, programs, experience residential through and use GEO which expect Care continue we the in end also our to year. to the levels

our XXXX-bed Georgia Federal our through January D. Ray contract As has end XXXX. for Bureau George the company-owned in James Prisons mentioned, the of extended of facility

rebid had As we the prison by decline renew this federal announced, not --, to had contract driven to in decided populations, part Bureau the the COVID-XX not due previously pandemic. in to

extension September contract for XX. reflects the year previously Ray Our the the had expected we full to D. now guidance revised quarter fourth of on expire the four-month and which James

the of reflects year. ICE in operations activation guidance normalized Our Golden quarter our which California, of to this also achieve during third quarter fourth we expect annex State the

expect to share. diluted GEO a and to be For $X.XX net to range $X.XX $X.XX in we be net to in income a the per income to attributable quarter, range adjusted of fourth $X.XX of

quarter fourth AFFO share. diluted $X.XX to expect be and We $X.XX per between

be to $X.XX in to For a GEO diluted a the to of full attributable adjusted share. year, we expect be net income of range in range $X.XX income net $X.XX per a to and to a $X.XX

to year range We in per AFFO $X.XX be share. expect diluted to $X.XX of a full

our is dividend in per CapEx had available cash projected at in of of Moving for XXXX end California. ICE capital related for applied anticipated is or in year the annexes month, to the to reduced $X.XX quarter, the $XX our capital our including credit in borrowing our a an in facility. With the dividend million increase under declared share annualized. CapEx to providing our capacity of $XXX Approximately CapEx. maintenance approximately share to of our $XXX while be total credit million be preserving million structure, addition shareholders, will value to for - approximately revolving to towards per hand. payment be $X.XX to us allow $XXX on repayment feature This accordion million debt. our quarterly process we This The facility we the respect our $XX to in balance activation under expect to million Board capital third also expenditures,

we debt to would how $XX million this net debt average to goal $XXX in flows During cash million starting net expect our pandemic. in on our depending repayments XXXX, repay annual in year, post recover quickly at approximately be and least

expect our to facility corporate process cost annual currently levels. opportunities budgeting are the We and at and savings undertaking identify

assets the third agencies individuals. time, of this identified government Additionally, to Blake Secure to over exploring review Davis and GEO or our a At the we owned to call Services these I'll turn potential several have for of segment. company assets are sale party

Blake Davis

like isolation and From morning have Services the update steps the risks and the our GEO COVID-XX measures. mitigate taken by preventative guidance to quarantine, and we facilities all care on cohorting of start pandemic, to and the CDC. correctional covers on - of the our for efforts unit are our continued which medical and issued Secure detention individuals and with consistent in guidance with I'd Brian, good Thanks, procedures to you to our guidance including the an COVID-XX. of the provide facilities, with associated everyone. of best employees business at our educational practices, implementation best This

paid family or our to to employees care and leave member. to paid policies flu-like a time home exhibit remain if continue off exercise they to We symptoms allow for

employees our our and on of sanitation our to equipment, protective face and efforts personal those focus continued in increased all for of have masks measures We care. deployment the including all

We Abbott our increased facilities at and have testing all begun have recently secure of devices services to our also test deploying rapid facilities.

during testing at of of are have than month inmates and We XX,XXX percentage facilities. larger the detainees the through process conducted intake and tests more October, a we our

these taken, in compassionate continue to are based and steps work CDC We we'll to evaluating by steps the high grateful other we our updated our care and to adjustments We as who sacrifices and guidance facility. incredibly all the appropriate quality continuously those remain and employees best making of make daily for have and report on for provide practices. frontline necessary

company-owned we this Ann, the View I Effective to our turn Golden fourth the operational an third be to Valley hopeful normalized in the few into activation California, contract company-owned In discuss during Annex ICE the call in able remain ICE activate Annex we quarter to we briefly Annex continue to activating the we Desert entered XXXX. our began in like of to process expect near the a of future. I and State California, the also quarter, Central operations California week, achieve to highlights. of operational modification Before which would

This the XXXX D. of During through Georgia to entered also quarter, previously Prisons end our we a Ray third facility. was expire contract on with of the X-month XX. James, for extension set September the January into Bureau Federal

the deactivation facility. of at the Pass, State Texas contract completed our Additionally, the Eagle out-of-state we recently of with Idaho

an into entered have the Service Marshal United XXXX. use of Eagle We Pass for agreement with States during the

for the Centre, Fulham at at beds. I total XXXX Finally, increasing At in will of XXX-bed capacity total XXX-bed Correctional this call XXXX and a Correctional a over to Australia, we have expansion Center turn Ann expansion now completed capacity bringing GEO the the review a to time, beds Care. to Junee

Ann Schlarb

Consistent across and of good with Secure have GEO measures morning business by guidance with to COVID-XX GEO on our an guidance taking you, Thank employees the issued as care issued provide our policies all our the cohorting like you for and of Services, all risks educational the our Youth and Reentry facilities, quarantine residential I'd COVID-XX everyone. Blake, steps COVID-XX. of continued to facilities efforts procedures consistent mitigate to we This guidance our GEO by Care update and individuals preventative to as mitigate unit. GEO in in guidance are Services we with CDC. best spread on the includes and the the the well undertaken

increased focused have We personal sanitation masks including and protective efforts our deployment face on measures, testing. equipment, of

COVID-XX We a of other our reporting our to reentry to had also occupancy pandemic best as negative experience based employees and have has several nonresidential on as entry continuously recent The challenges for the during evaluate in needed, appropriate updated segment occupancy Texas third We off and several day centers to the measures to quarter by time if pandemic levels highlights. impacted and youth we the paid previously facility had levels. home to our Hector related paid our guidance unprecedented impact COVID-XX Garza continue services exercise and which screening we'll referral and these positive continue and programs, adjustments necessary and leave has residential we CDC closure and practices. on challenges, these remain in have steps, The make lower led of implemented our into we allow Notwithstanding policies facilities. additional disclosed,

of XXX-bed we with Alaska Center Park the our Department During completed contract View in Alaska new the third a Corrections. reactivation under of quarter, the company-owned

in delivering Tennessee to to These divisions are remained services participants government indicative to innovative who I'll time, our recently also Corrections. reentry approximately of in Care back activated employees day program a XXXX new virtual continue quality have the capacity closing contract with behalf agency our remarks. to recent technologies. which XX new to through of day on turn in those We on very work care with the his the proud sites our a serve GEO Department reporting resilience and focused in remain of under participants milestones of new George We and deliver this often high to the rehabilitation our At including to report partners. for front-line our of every care, call programming ways Tennessee

George Zoley

Ann. you, Thank

services regarding quarterly the either is Federal role created to will dedication controlled to allowed has with COVID-XX our daily We steps continue to our global of commitment assets cash than supported essential our for Government employees of earnings as government services both challenges to the allocate essential and excess proud high-quality company chambers recognize Republican the business that mitigate flows and capital diversified under the XX dividend contracts years upcoming to preserve provided our of We flows to concerns in and are election. our high-quality reduce Democratic Congress We rhetoric political estate under risks believe strong, We has that remain under debt of the incredibly mischaracterization to pandemic. order access future current board and all services Despite following and innovative unprecedented whose services. both by COVID-XX, but party has our long-term and and capital, our payments provider the that our our and significant believe provide able we our and company a administrations cash by parties. be towards repayment. the entailing associated taken real of more we believe government

us on we down will paying remains team shareholders, these and That effectively debt deleveraging. allow to presentation. that believe providing our completes focusing our allocating balance to management while and value steps focused on Our capital,

be any will to address We questions. glad

Operator

begin will Instructions] question-and-answer We Gomes Noble question ahead. Capital, please [Operator now the session. of first from Joe The comes go

Joe Gomes

my taking for thanks and morning Good questions.

Brian Evans

morning. Good

Joe Gomes

more of on wins going if just eliminating and give what to looking Just you thoughts little election color has you're Biden companies, and your on for start a some more at or guy's are your detail Biden picture a wanted color on of little you about preparing know made forward after the this little what I are the get thoughts use versus trying wins. you've detail the what election? bit and private about about, if to don't what talked comments - or kind and Trump a guys big

Brian Evans

for high-quality parties. both and wouldn't It outcome us appropriate government we've essential the different election, federal potential of XX more earlier, but Democratic for be controls than and to Republican provided on to administrations speculate of a the Congress years the we by under under both presidential as mentioned services

there the major border So we security, administration I will there that Obama-Biden fairly under unless steadily changes. in grew don't a much change know and previously is be

we there at otherwise, But we've there our just parties. So, COVID-XX best whether decades we actual business of but have look to job parties to as will both if do that high-quality services try are pandemic. stressed, applied a our change X.X mitigate as to the our of is differences do is policy to under we and continue

Joe Gomes

Okay, least obviously getting opinion all the your minute, in second four need the there, the a oh, D. basically on congrats BOP turned and least what BOP on what what, there Ray or happened to what we'll side? give don't sudden the thank changed from we I saying, saying wait and mean months saying, need that quarter, James, it. in of you the guys' at for but around that extension more the facility the anymore you facility a on on at we

Brian Evans

have may facilities, a lot about having for hazard that would down be to of but in the to and people - something facility other which problematic. to being very would pandemic guess COVID-XX to middle a can't - speak obviously shutting of transfer we We the BOP, do

Joe Gomes

on again, you of the recent here some at congrats mentioned activations this State and Golden Desert View Okay. And week.

a mentioned View that? modification, contract Desert that for what were made You was modifications

Brian Evans

of part facility Marshals by the in US the That the will involve use Service.

Joe Gomes

Okay.

Okay. months On contracts, XXXX. have ago, pretty the US Marshals the there differences similar will signed versus have just Eagle Service? talked in declining the the X, you contract were the in other any populations major that occurred that be maybe in is COVID contracts reflecting to Are there Pass, about Service US using Marshal that you and or with that contract X, situation XX signed that previous much

Brian Evans

Well, they're other different where stable the a lot one situation, agency the of kind with of very so presentence those with it's operationally, State a and criminals very clients. is is similar. and One Federal but of very different client fairly population a is that there holding they turnover a individuals the inside financially, facility, is are

Joe Gomes

of terms see in state many appreciated. know industries, given and with state color on there pricing up, the or And or pandemic, taking coming it Okay. been stressed there approach given going you pandemic is renewals budgets detail more be would here from has pushback of I - as wait have has significantly, the in a contract any guys they're the what's just

Brian Evans

wait the next if second their see are there states particularly early approach, be the taking are year. and not think passed session. of I many, and in a reviewing a with There'll budgets not most be currently will regard bill states stimulus whether

Joe Gomes

and have And any that made again property about Okay. progress you've last of quarter talked any the you in today? sales

Brian Evans

between their we strategy. have to trying identifying versus facilities in but sale estate to yet, governmental group so to of sales our and real particular and progressing due and locations, potential we in positioning that don't as value their we execution third are parties in a them progressed Well agencies

Joe Gomes

in me back to Thank you one last from questions. queue. Okay answers all and I'll for get one my the and

that about the there there, of quarter opportunities Just quarter new else Nebraska, since had that a talked trying in out guys potential that opportunities just up anything last some for is one the has could in was be there guys? to you in is get update little the other the you and pipeline popped second

Blake Davis

is RFP forward, The slow think of I point. moving the it's this Nebraska at but Nebraska. kind

Brian Evans

in to capacity a ICE that. for and we has preparing Northeast, of are for information to respond location the issued request

Joe Gomes

it. great, thank much. you Okay, very Appreciate

Operator

question ahead. The Sidoti. from Ramgopal Mitra is go Please next of

Mitra Ramgopal

Yes, Thanks hi, good morning. questions. taking the for

it you're just obviously medical incurring I trends cost cost, in et that on a procedures cetera. starting First, hearing up, seeing wanted I was et benefiting to increased COVID, becoming given less one we and are are get you? at XQ, you're on to you're cetera, feared the think but And if of I to spending how related recently just lower ordering side elective a pick that's for that from tailwind sense

Blake Davis

quarter, facility. still main labor amount just levels in savings areas due had of a fair the While that experienced lower the have occupancy third been we in to

secondarily, staff as the differently discussed we've able time and has then reduce and manage sites medical So, over been to been before. off we've

seeing think see taken to don't additional all some of I year, in that quarter. moved was think fourth think to for back I return we been, and starting much we've to of are credit the how where we've the way normalcy, but for balance I it's some that this pre-COVID, the been We but in cautious are it we've

Mitra Ramgopal

as thanks. are to pricing? of whether level the to pass incremental COVID, able new related And it on at to you or it's terms contract expenses in negotiations that Okay, any relates

Blake Davis

it, A it of depends. little bit

we pass say customer. I'd can pro We don't to anything cost. that forma include that's the have on adjustments and the net our

of working to to side be we're that pass on we what but we'll working that. limited we're do it, able that which can, So, it's

Mitra Ramgopal

be Okay what versus and seen year then to just coming going this back down Obviously, contract historically. it's to retention. we've the

of quarters not wanted you beyond? potential and it's in XXXX contract a back COVID, next maybe sense few up the It be going of surges, just picking us how seems get recent Just still, to retention in at to with disruptive obviously terms with view terms in sense it's least

Brian Evans

Ray had wasn't very you earlier, D. the in is as renewed that contract James know, George contract high. one as retention rate facility. the Well, industry the the We discussed

or within state pretty the facility, typical that state other inmates those The were of and Eagle that. one whatever just those Pass go couldn't to the industry of provide their for or to out was more that beds of back think material they origin I and needed we capacity it's but

So why and we've that's George as discussed the that activate to US facility they able Service. but moved discussed to expecting are with Blake already, Marshal be away,

Mitra Ramgopal

And to I stocks but given capital wondering the now, know maybe point? at, it on the repurchases at great. be that's I of as resulting relates of where the that also Okay, use was reduction right debt if in allocation, remains share table terms this capital priority might

Blake Davis

always it's main think that focus as is see George and to but our something need it returning maintaining for indicated then we I a potential investments. shareholders do the debt growth we'll dividend is some repayment which on focusing have still

to So, activation the outlay as our increased facilities call, for in we expected this related mentioned capital California the we year for ICE. of during the

it's farther allocate the capital now where wrong towards. right I'd it's So going of to down say possible, but we're

Mitra Ramgopal

fair next Okay, then to year, the is assume process still is you're but CapEx for And we return going now it it more it's the on that normal probably fair. through allocation, year higher and budget see to obviously this levels?

Brian Evans

Well, step business there. replacement of a monitoring next result as to also ICE changing the then California this I be equipment we'll may discussed, previously electronic still of capital we related have the some in technology as down and some year, project we've think in there of some a see

exactly, at probably reasonable amount some $XX still will million. much less least this can't it say have but how CapEx year, next than year, it be of I will for So,

Mitra Ramgopal

picture. then And a on finally thanks. Okay, just big

to competitive as just just a it? I cetera. it environment of to a you As being on wondering new COVID, if, bring from result characterize relates business, et would able How was

George Zoley

annexes Well, we new place. new fully announcements taken is the activated. One developing are our businesses, has ICE regarding

be this shortly. activated Eagle beginning the is, next activated our facility to and then expected is one Pass And that next It's Marshal beginning Service the third we well. activate to believe year of year. Another is as of will year, we be a expect facility

we glad continued So these money issues that client lot the are we Brian glad to spend have growth repurpose as particular facilities to for we we do of and, so. to just have growth said, have this a opportunity. some We're

Mitra Ramgopal

questions. again Thanks taking the Okay. for

Operator

of The next ahead. question is Stifel. Jarmoszuk from go Nick Please

Nick Jarmoszuk

asset mentioned, think I Hi, right get ballpark as it update could figure an good up if morning. about? What, be sale Is the that last on proceeds. we million. to quarter, to $XXX the still believe

Brian Evans

that's period, in we're that. think one targeting wouldn't I'll I we number year. But achieve a maybe year think that over we the Yes, necessarily be several can

Nick Jarmoszuk

And should would we be to? then about they applied think where proceeds, how

Brian Evans

those debt, about Well, as then over Typically, we just revolver outstanding. we some longer will from and we apply we reduce perspective, of to talked the be to reduce reducing before. flexibility bonds term, the will able may a the

Nick Jarmoszuk

for extension? what's the your would relocate it is, Question D. at What on Ray James facility, estimate getting how long there another I'm entire takes population? to the be

George Zoley

a or extended looking if lot That's on Bureau a Bureau depends it COVID vaccine just Prisons. at by now the we're on of of a it and right progress be care. always improves and Prisons, things environment Federal three about plan how It's call general by of the the but probably a months demobilization and the with can side medical that

Nick Jarmoszuk

or it, is facility, as have it it, the business does that Within actions operations they down winding more are usual? there seen is you any

George Zoley

We about the for XX number we then while reduced days, over and very few last have have, the it a gradual have months the stalled we demobilize and plans at Bureau to reassessed pace. does

COVID that this their stated, I environment. need be and by dictated pace As will

Nick Jarmoszuk

And facilities, the an many minimums? could of then the provide how other for with contracted them generating are estimate you

Brian Evans

below contract minimums? at the minimum are generating facilities or that contract say in You their

Nick Jarmoszuk

Yes.

Brian Evans

fixed for, one, our maybe of may contracts. full So, are except facilities BOP all price

always it revenues. of there XXX% So, the

guarantee. there I one think is is of that's contract still the version an older XX%

all temple I ICE or one is given operating are occupancy at contracts their ICE our have believe of quarter fixed All payments what forecast minimum second month. year except and and those And minimum then of for right it's our facilities starting. per did below [ph] contracts, when Marshals for forecast the we've our that assumed we mix. a back the our in revised that's We now,

- and them populations not state BOP, populations The bit, state stayed averages. little lastly, then as outside don't. come and the well, some, down populations component down still fixed but our line some Some bit payments, quite they ICE have Federal are the some a of as their than a the fixed higher sort are and of as the have but them have Marshals' traditional more of contracts have in of most with are much

Nick Jarmoszuk

a 'XX we number quarters. infection still, all how the budget scenario of and the with for still COVID together, vaccine can a pandemic about What's upside-downside the think versus can and about you're stabilization being there? resolution they're upside-downside we putting outlook how and for between the rate effective So, that think of the, extends

Brian Evans

the Well, of in is what's to on still There that building the in we think from flexible our market, on market. vaccines talk and in - still going obviously, what We're based going around a be COVID, planning go we're the to a - but budget. from we're know about but that, nothing the perspective we're I middle going today.

would but we improvement no current So, public will year, some otherwise late sort of status is continue quo, we'll apply currently. next to say I information there more the maybe that think the see

our way So, we think planning that's the to most year. prudent and for do next cautious

Nick Jarmoszuk

you just question think on refinancing about there? last can about options talk the you how And the 'XX then notes,

Brian Evans

Well, as under we have, liquidity we before, the revolver. have said we

out. the we but bond capacity think monitor at do to we a continue if is or an seems note look or is from that will alternative using or there those like either definitely time to replace convertible opportunistic We to there be able may go market to a refinancing be something take them notes in another there and access like that, structures to

Nick Jarmoszuk

Thank you.

Operator

Larson The next National Securities. of question ahead. Matthew go Please from is

Matthew Larson

All that, to many which if say but the clients, education, or your depressed right, a a and cap to you a estate-oriented me are like have be based that say keep stretched, bills. is other preferable and taking continue will we'll your bulk and to say notions or prison as out I progressive my state make less might profit it reduced, and will administration back least were seems interested of infrastructure so how don't regardless of or feel things big business. and I'm you public don't literally, showing the nobody tenant but you through your or people on and of little centers paying has prisons, is we've guys, spending are are that affairs plus the there been that, something at actually statement have because your and your buildings and therefore rent some these I and would the mistaken, affect mean much and I of and I one's get worth, office future of yours, on no one, they out with different. just what every stock, they're depressed if our on need little - look mind, whatever certainly and down of they're shouldn't one level, you not your the With okay, sense is certainly the as on We which coming assume of I'll inmates it more for there going is the a have it rhetoric real contracts ever to all York your main more there I been have seems competitor you malls so versus that and like if Thanks, to. in seen prices letting for assume be I to main but the budgets going the competitor rate states about it accurate out space themselves more as go dramatically skyscrapers building landlord what up things that money would no back what call. I picture. if required essentially and federal landlord a of may analogy New the might if about businesses I states guys the fortunately been prison, sorts you a let paying, early, be prison how because would, have reform, with in pays people doesn't for mean, long that states be aren't business? XX% are a City Question own prisons, liberal on it not going but outsourcing that and this of are business? about I'm can new be and term It's detention taking and how know is at like inmates tenants whereas facility. COVID, and is many, an

George Zoley

because XX% XX-year in have the cases, levels, record track and sector sector have and provider services we situations preferred build allowing needed That in allowing like financing their by private because to the are benefited and their of of new our overcrowding them over facilities Central at - in many come prisons. resources retention Federal financial Federal track the levels states a use apply to schools. state we to in use state to these building record, Government Well, in other scarce them that to were own private areas

to theirs, will three So, and favored expect be operate done level, federal we three the our behalf holding a federal have Service, been continue on that and is, to the supplement that their do operator and Marshal to have agencies, last own we to aliens. of facilities we glad decades there are they BOP that. is primarily have and over the the ICE. an At criminal facilities, BOP,

has the have private and private own sector operators. in years, the out we depend that been and XX the Marshal Marshal the primarily a provide that, which because to in they to are we've facilities. BOP to with and needs, scenario. ICE, that the been used combination we've provide and and doing the own and not on ICE capacity public sector facilities carry or their For don't capacity facilities, Service They and sector player operators. public --their do with major them to its Unlike either have not responsibilities, US Service their for they continue the for expect to They sector are

Matthew Larson

All right.

I have aisle. is way, in let right fly from same normally not border the could be that, they I going Paris me now to I draw to then the because So, of are shut down can't or would land more COVID. you doesn't to centers In porous because it could ones Democratic would these border mean are the yourself. that could need to house there their may be like talk they since will of anymore got But the to about seem is - with facilities any one until been folks hear border, own, don't in you about quarantine for-profit people their in not me the the openings the administration There came either over restriction have be a a they who prisons, border will individual greater do I from to adjudicated, if detention been people be I more it blame myself. would likely and if situations more that on administration have one crisis generalize actually, to side coming doing of said ICE alright? than have away seems So, need that and

concern, for White way and would is House of down in lot product, the somebody I'll fair not doing maybe a make - of of that it's some the not is from you're because accurate competitive need completely some still their say? the shutting White business if doesn't they're and decades if and to you as a ICE own, there presumably is prisons that's reasonably of comments then the blown administrations business going who you've have to as get unless a supplying it you'll the regardless thing portion that off, concern who lot, or private been just So, in and then long as ICE feel

George Zoley

is. it I think

policy we - will long to that As Enforcement, a a of policy. in supporting is play there as continue Border play role

Matthew Larson

is they want the which press, libertarian. essentially the been correct politically you've need an red of to then, it's just all reasons to And Okay. another a lined major where to you banks, been don't thing presumably they just don't that that or are for by loan issue kind has me just it bad is

there any for-profit that some don't people that, and discriminatory folks doesn't JP you think could any that, the be are just also that you, know you you need just feel some accurate some be who there that of supplying there is some to think a the into guess I some believe I needed going brought is service say? bottom thing some Morgan sort I'm know, you of to something which a mean the at maybe understand have the an feel financing you're sort - private sort bad capital something out of unless thing, people you prison thing wins about of sources money because maybe but is really people supplying regardless up, your more is expensive, or point political of I I that politicians recourse, down that that your, we for of that's you're to a seems care a some will line. but Is service, bad discriminatory about having from higher since might forward spitting don't - mean to most access have legal you that feel Is cost in I essentially, about closed press secondarily substandard of that A, financing way, just feel the in private cut they always might or really something that recourse so talking that business there plenty which and albeit markets or redlining. the equity the I simply it's a to

Brian Evans

This Brian. is

question on lending the First discriminatory whatnot. of and

pressing members issue the Senate have the et Office some think we'll the Currency of the to there's just I and see and know, out. Comptroller been I it You US the of the some of Committees, discussion federal think works that cetera., level, how Finance at from of

oil as that. isn't pressure The only one facing been facing has but gun industry, sort the well. We're gas that of industry are industry industry who's the ammunition industry and issue. facing Our and smaller a that the been

we do have a markets, the over lawful obviously of on point as have works cetera. also have you of believe that potential all to capital stabilizes legal some that prices. said, et the the how to out is continue to see why services, industries that reduction that providing and industries may far there market rhetoric that So different the out. you prices debt that situation And are help as we'll making then offset in as But political And the And just we're access situation. monitoring with number we'll prices higher, reason that's time. but focusing the as think also be part modest higher I will we're those as

Matthew Larson

other because two at I'm because company's right. this at made you I to know the here, that that's the George just things, of particularly All look I'm picture - level wanted not price, George whole trying is probably pretty This big purchases your And knows him. than by know the of large stock closely the I'm business speaking very with? better Nobody some year. I stock looked all. sure.

George Zoley

is. it Yes,

Matthew Larson

Okay. I'm sorry.

versus some ones decades like there and New Fed's rent stabilize is you little on here know might to might I certainly is in and your to states the of if that difference assume I'm would going the read to private earnings are the need a you're way AAA you that facilities not point rationalize to and I I if the power less some have guess some one prison of what guess saying it at that I've the than you tenants or forward in all the a public paying your of government, schools they are the markets old, do York, the So, I've quality. I've manage space closing rewarding you superior facilities up schools fact or that, better been gotten, own business or sell that the perhaps currently it's knows capacity, Federal but would they for anybody, want a if you who public states of that or the would to because are be though themselves, impression COVID significant anything border reform your or or what own or even will

just to necessary, you degree points could in under the to if score of name if - of no idea to prison no a you very - in what shut the greater do administration facilities these company is has put one one we So some have that of might the you your completely value doors they because whether floor are what some a were sell open or so unusual kind of that regardless times jail could down and they up live just reform.

option far he when come recover, it numerous equity so Guantanamo I So, have seems we XX who point firm is trying come may talking prison me the really never things eight - years, care I administration, country and these elected price could go. realize was this not his might firm things close not dollar any an equity facing, mean Obama, never may it off all stock you bigger about just was problems if and I got that opinion. mean, than to facing years, get go your your game or A, and that. if XX private prices also B, doesn't stock our don't long private he mean closing did, down I pretty in going - to administrations a there. multi-billion LA, has say in it's care ranked public They a with that a private? to can for-profit was he

not are your, there the a private rewarding all that if earnings out markets do So, is for pay money feel you equity capability? that would there for you premium your public you

George Zoley

the a not facilities period The make world, path the in forward state has and to just kind we'll or for operate been the are around in what have where people the I of You that facilities for and around - XX have believe not work through pandemic, to our we been economy track Federal this and our we're we the But because we XX do of to I do another beyond know, period facilities. through we of best is We've on, think now temporary will transitional years a the record we're this hope dramatic good any excellence. we in years, it way way situations Yes, operational see and normalization our is going of whether they're transitional country's overreact circumstances. questions. to a lot to to sense.

dramatic $X we state political you're it's operate. $X to in those billion, decisions a of of asset proud is we the no Yes, we and are facilities when of that the are in make reckless at going that's or need levels, appropriate. time - probably we're they time options. to to have period the billion our the So, situation lot is going a transitional, in is and to facilities value than just and counterpart economy but be stressful but not not them the federal at stressful There through governmental a facilities better cashing these

the monitor We options as are those necessary. what aware are, take situation we of and action will and

Matthew Larson

that south, state or saying or climactic as wanted me even represent a that's mean And knows them I endowments people selling of or point. just that and them. or you you're - you so out plans to, I not if suggesting that I'm. a one scenario, what who low, assets have significant selling lease stocks be foundations What told into of and the value. that single them, momentum what some sell I it facilities long wanted the what in to is get federal an It's have at is heading Okay. when I'm could life digits going they're has that in pension just worst-case value because wanted to anything public of they or I'm them if not you probably a is to to kind them asset hear you that that. lot just someone is by have ahead just and let like is run putting hear

even in investing can really that downside viewpoint there time so that been I know never if and trading financing years, whether to one a strongly to do the more, just sense costs if or necessary, says. It trying them have their to consider you convertible that you through other the figure then little or have if some single And sources. and access it's so what data that's sounds have I'm my XX-year, five-year it's in to it - like digits out has the a

my need their no have who XX you housing won't all you for be just over and own You that thanks prisoners I'll else, little much for to for assets right, supplying on the somebody will so been the opinion, I reason value for knows service to a society or bit move guess my, question. so. letting going let or that of forward, ask it have so XX All is, think and people coming - their be express as years nothing answering and what years. else that or next my border me be questions, and there'll a on guess if There's have I

George Zoley

questions. those you Thank for

Operator

from of is next New The question Bill Please go Life. ahead. Fan York

Bill Fan

Can Thank hi. me. hear you Yes, Hello. you.

Brian Evans

Yes, we can hear you.

Bill Fan

to the just want that. ask other, it's like those about to us some to taking I legacy point headwinds don't ask, but should upside the I later, the there alive, in be, term, in of is considering questions growth just upside? - view about for a the to concerned I continue you but COVID, thank question. to do Yes, political lot any big turning about us, Great. I longer have I my want no a think pressure you short or lot be the problem political. unlike assuming unlike got was have going of no or there mean in see, two years a

George Zoley

available decrease and our this enforcement would normal at revenues higher made is and policies, think we there'll vaccine that restore pandemic. have be nationally, the Once facilities a we seen during restoration of we've occupancies

that estimates, many by year. occur next So, will sometime

Operator

to like question-and-answer conference George our I concludes the for Zoley to session. remarks. back closing turn would That over

George Zoley

questions, and conference thank you in for forward you you. Well, exciting next look quarterly call. the we'll those to Thank addressing

Operator

today's for now has attending you conference The concluded. presentation. Thank

now may You disconnect.

The GEO Group, Inc. (GEO) 29 Oct 202020 Q3 Earnings call transcript