GEO - Earnings call transcript Q1 2021

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Operator

Good day, and welcome to The GEO Group First Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Pablo Paez, Executive Vice President of Corporate Relations. ahead. go Please

Pablo Paez

George Good Schlarb, us our operator. will Services. first and you Blake Chief of today thank of and President and with Executive will results website Thank disclosure Brian Davis, of the in quarter basis and Founder; This we today's morning morning, GEO call reconciliation discussion This call first discuss joining Evans, are us and our Today, With release being discuss press investor the for earnings Officer; conclude Group's Secure outlook, information. Chairman, GAAP A results of morning. for we Chief XXXX on Officer from a Ann you, Financial results. conference is everyone, we Zoley, President issued The GEO will basis quarter at and we supplemental GEO Care; this investors.geogroup.com. our session. non-GAAP included question-and-answer non-GAAP to webcast basis is also live information

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

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

George Zoley

results the updated our everyone. to year. our first morning financial good quarter morning, This and for Pablo, we you guidance reported and XXXX Thank

business we financial to challenges units. of face remain diversified our operational COVID-XX, While we with the continue performance pleased with associated and

quarter, performance. expected first resulted we better trends, which cost experienced financial in the favorable During than

an the D. Rivers completed We Ray transition to status. Valley facilities Moshannon also idle Correctional and our of James,

end had facilities renewed these Bureau March disclosed, and the previously Federal Prisons had contracts January three of by the not respectively. that we As of at and were closed thus

last highlighted privately the to U.S. executive issued criminal an of contracts with in detention this we General As President not facilities. January quarter, renew year Justice of operated the Department directing Attorney order

which lesser Prisons, assumes the Service not agency BOP With and contracts intergovernmental will of are located Marshals additional unlike contract. guidance operated BOP Bureau our resulting does federal primarily service near be closing to XXXX. that in financial the renewed Our extent The facilities, direct the not remaining contract facilities Marshals U.S. also during a respect facilities. to and own U.S. through courthouses contractor generally agreements three

cooperating how We to various Marshals U.S. the executive assessing to Service as are alternatives order. in with comply with the

were by Facility the contract the on New which the agreements Detention During intergovernmental that expired direct renew additional facilities under first York, in notified we late Queens four monitor the that U.S. that renewal detention order. not currently Queens two for of the XXXX implementation are timeline the scope non-renewal Presently, we eight few are XXXX. facilities the would detention are various XX. at with March contracts and We it quarter, four the for direct of President's and times U.S. to years, continue only over The Marshals. executive and our next reflects will contracts guidance including contract Marshals up under in operate our

by order the ICE Department only Justice. we of executive noted that processing Security. the not Immigration an of agency covered Enforcement and order centers of on behalf executive to of As since Customs are the The earlier, Homeland is applies the manage U.S. Department

culturally have Democratic responsive under high-quality over and administrations. by and accreditation rated and provided national Our both Republican XX ICE processing centers for are services highly organizations years

operational capacity facilities capacity in Southwest COVID-XX, throughout these health centers our practices. in Our dedication. been to processing social The Title demonstrated which significant public has federal Notwithstanding promote at reduced employees the put have has reduced across government place have border, pandemic removal with also all ICE operating border adults ICE at the distancing restrictions strength result immediate the of single and associated by challenges XX apprehended as patrol.

increasing investing of XX Abbott coronavirus. $X the These health million novel all approximately to have our We and a company COVID-XX the testing compassionate care mitigate initiatives humane on Rapid of devices the provide to continued facilities the and including entrusted From to beginning steps included mitigation have took and testing risks staff kits. to to focus our those programs. our public acquire crisis capabilities, and

We air installed $X.X company secure bi-polar investment million. a representing facilities service ionization approximately select also purification at system of

face and masks have to hygiene continued access products. personal We provided

to We government from distancing our pursuant social agency have implemented directives partners.

just our working regarding our and COVID-XX challenges have been We to our financing. government closely make available agency all of facilities. health local discussed We been have that at there future I've to with partners concerns vaccinations in addition the departments that access to recognize

have challenges. We a multifaceted approach proactive to adopted these address and

We are $XXX debt deleveraging. XXXX, million. focused approximately our we net reduced and on debt In by reduction

approximately deleveraging dividend During past of set million funding suspended maximizing goal we've net XXXX. in and quarter, paying our a goal our and million reduced the debt quarterly we reduction, growth. with of first debt down month in internally between the million This $XXX net $XX debt by our $XXX and Board

February a fourth intends year. our of Jersey to exchangeable New we the offering. proceeds transaction quarter of and this of completed due a for fees Hall, redeem interest with our structure, of related purposes. expected net amount currently of the of million. also our We current Talbot in maintain senior REIT, has center sale. tax is our XXXX, pay In general quarter, to and reentry implemented We've undertake remaining expenses XXXX private million potential ongoing and to $XXX sold to $XX review GEO the outstanding corporate by In the issued XXXX assets due corporate first $XXX Board of for corporate over notes net tax structure net X.X% used be notes proceeds which portion to we the review in a million a determined of senior use While as proceeds

the maturity successfully to to best position. other our initiatives been stakeholders also our maturities. as review we of the maturities course value. shareholders address believe debt enhance to and alternatives guidance intend work turn are With subsequent in this shareholder our address Evans and we to I'll XXXX long-term these interest addressed due in Brian We having call our time, our over to At liquidity results, consider the

Brian Evans

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

a gain extinguishment real gain on and of assets pre-tax a results, quarter $X million include $XX estate first pre-tax debt. million Our on the

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

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

results expected first better Our better than performance. quarter our units, expected cost operating than trends reflect across resulted in which business

we maintenance Moving the and financial year. the trends our year full for CapEx first to to XXXX quarter than have outlook, better lower of cost expected our guidance updated year the expected reflect in the

approximately $X.XX year expect full million billion. net be We on attributable $XXX billion in to to revenues XXXX XXXX of full income a a of $X.XX million to year to range $XXX GEO

be in share. full expect income diluted a range to net $X.XX adjusted We per year to of $X.XX XXXX

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

million to range of to adjusted $XXX year XXXX in full expect a million. be $XXX EBITDA We

a COVID-XX from slow throughout Our to updated recovery continues guidance the this assume pandemic year.

which on previously Correctional As Spring XX and for of expires non-renewal for received of expire from XXXX we facility which in Flightline set Great the facilities projections which in we periods notice Big already of Oklahoma, non-renewal Texas, that have at and guided the end contracts had and BOP BOP; are May correctional our the option in three account Plains expiring the have the additional XXXX: November. to

on Additionally, thus Marshals, our announced its contract Facility managed the the XX. discontinue ended Reeves contract I County March this County management for our our of reflects facility with Queens month. contract Reeves BOP previously II respect has XXXX Center US guidance the county-owned only consulting decided for that And as well. non-renewal the and has & effective With to Detention to

the of expect to our three Annex of Pass, of Eagle Texas, implementation These in facilities achieve President's Order. Marshals are US and the the continue normalized operations California XXXX. in offset time by to the and will our we which We contract facility activation ICE non-renewals year last course scope monitor line Executive late over

XXXX, of quarter million to to million. second attributable million to be in quarterly expect $XXX the net $XXX to GEO of range we on revenues of For income $XX $XX a million

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

year expenses a reflect payroll higher quarter results of our in reminder lower subsequent our compared are quarter resulting than all second As front-loaded expenses first each payroll because quarter results, to quarters. during the taxes tax first

we hand. credit resulting million million of the end in capital Moving additional under had down approximately drew At $XXX $XXX cash an additional leaving revolver. our on and facility, approximately quarter, to in the in recently, million revolving our borrowing cash $XX approximately our million on structure. hand first $XXX we capacity More in on

purposes. and financial to liquidity, additional our our corporate maintain to As decision step prior funds further drawdown, on general a is our draw precautionary with revolver for prudent obtain flexibility preserve and

address will options our examine including funded continue to near-term proactively our maturities. to indebtedness We our

unsecured million $XXX this exchangeable due we senior in in this year, refinanced XXXX of the XXXX. unsecured our part effort, earlier due of notes X.X% notes $XXX of issuing As senior amount outstanding million by new

been successfully addressed, we due intend alternatives course our to having With in subsequent also the maturity to maturity. debt XXXX consider address

and effort, had now to CapEx review have that $XX previously various our have engaged process $XX total advisers we we financial for alternatives to a legal million assist and for counsel as of Skadden, approximately our planned existing be capital Lazard to corporate XXXX XXXX. million, CapEx in intend in we this including prudent advisers respect as million $XX Arps We as part Akerman. we to expenditures, structure As maintenance announced, capital alongside With CapEx. in canceled expect previously

quarterly down goal use growth, of our pay of and last month. our cash fund payments the maximizing flows to Board suspended debt, the With deleverage dividend internally

XXXX, $XXX on million down down for debt deleveraging have a In in and paying been we over paid We debt. focused year. approximately

by During the million down substantial paid quarter in of which net $XXX XXXX. represents debt, our to million debt we towards in progress approximately million $XX $XXX articulated the year, of first previously reducing objective net

assets. of as company-owned to are We as potential also evaluate potential sale cost-saving continuing well several opportunities the

reentry million. we resulted Services quarter, will Hall I sold Secure call for interest At segment. to GEO review of which New GEO in over our of approximately Talbot this in Davis first net the our proceeds in turn the the Blake facility During Jersey, to time, a $XX

Blake Davis

and update Secure to provide brief unit. good morning, Brian Thanks, business on I'd a our Services GEO you everyone. like

We initiatives. During quarantine, continued the policy Prevention, pandemic. mitigation associated related cohorting pandemic, including start with the consistent by put quarter and to guidance have medical and place practices isolation. challenges the issued first the Centers in of and address of with controls and Control the for our staff procedures implemented to we COVID-XX XXXX, the From several Disease

We remain exercised paid allow and time-off have home continuously policies to paid as needed. employees leave our to

face facilities. We available at masks have supplies and our all made of cleaning

all Secure in including over that our be positive COVID-XX testing tests our secure rapid increasing XXX,XXX facilities. new arrivals on test we isolated. that have at screen of to and focused deployment services have cases capabilities us can We across administered quarantined Abbott the at of allow care so date, properly those facilities to To COVID Services our devices intake,

other spread purification made systems departments jurisdiction's ionization to have systems will our each allowing closely and Secure More and been based on at select install partners adjustments at viruses. by airborne facilities, guidelines. recently, have bi-polar We vaccinations We our available our with vaccinations vaccine date, make can practices. have updated of working XXXXX significant CDC continuously steps company we the and and air To been government evaluate agency Secure the guidance sites. over a Services Services investment administered mitigation at facilities. reduce make health our also best These to local bacteria

Moving to our recent operational activity.

ended at James, correctional D. January not Federal As facilities Bureau by we Prisons Rivers the Ray at our the Valley were end contracts renewed and of Moshannon announced, March respectively. and and of previously had the

staff BOP the first with these ramp-down Our closely complete to three of worked the regional quarter facilities. the and and deactivation facility during

with the year, US As executive this Department operated Justice directing detention order contracts renew General privately not of issued to the facilities. we have criminal of an discussed in January Attorney President

renewed preparing operationally we expectation with periods our been not As a that be BOP have with current contracts result, option remaining the their the will when expire.

discontinue also on from period received already BOP expires our have And to agreement Reeves facility that renewed notice BOP our Facility May for management the will I Correctional County for current option that the not county-owned Oklahoma & Reeves contract also with has contract when ended. Great its effective therefore, the We The decided for XXst. month. Detention has the County Plains consulting Center II and be this managed in

were the notified contract on company-owned the option who The in contracts not Additionally, US next to the for these Executive will eight not US operate Line to current in With Texas is intergovernmental expectation Marshals Marshals Department contract Spring the end direct that contracts. lesser extent not four not at which ICE processing US US and in Marshals. periods do XXXX. facility the through operate detention those up facilities, federal few years near bed four renew including does by Queens times Marshals federal generally charged US capacity, the been November, contracts the US house cover that currently our own primarily We for New Marshals The the facilities expired of two agencies renewed which a with respect centers, The Big under Flight intergovernmental and have additional that agreements direct over March Services, under facilities. in XXXX. BOP, direct located the would and areas XX. that agreements our renewal BOP. outside are facilities pre-trial facilities contract are is for We are their offenders, late for be courthouses to expire the and of detention crimes. York current in service Marshals the by our through Justice. the detention contracts agency the to respect Order two various our And unlike With at with

access include turf covered Our pavilions All sensitive centers which humane of that culturally centers and care and diverse our mental in more and care our high-quality provide responsive processing XX/X TVs approved safe ICE those double entrusted legal needed units, clothing, treatment to Health national ICE services and multipurpose individuals, at rated housing for services amenities highly numerous needs. to dietitian, centers and fields. culturally our in telephone staffing is registered who to facilities, state full organizations Typical our in appropriate artificial are outdoor the flat-screen approximately health health at by health a provide provided by than access is environment. accreditation and care have processing rooms, meals services. processing and correctional soccer

to services Republican have provided to will We XX the these over over a we high-quality professional Care. And accountability the At further administrations. of of for GEO years and opportunity centers. under time processing review call ICE delivery turn improve this ways and at for to I welcome find Ann the Democratic services

Ann Schlarb

on GEO Consistent employees COVID-XX implementing everyone. update morning, GEO Thank briefly by you, focused undertaken like facilities, good to efforts our Blake strategies. remained and and our business you Care unit. I'd on our company have Secure the with our Services mitigation

put additional residential place cohorting GEO GEO policies Reentry measures. entry and our in have quarantine of Youth Services and and in facilities screening All

also focused our face sanitation, testing and have masks. deploying increased We on efforts

time exercise We and as have leave needed. paid to allowed off remain to our employees paid home

those to continue environment, will and have deliver virtual continued guidance on and we'll through other adjustments often operational as and to our evaluate our innovative to the steps rehabilitation Despite the necessary in practices. We mitigation of of of care, during ways programming highlights CDC our our challenging the best initiatives by employees was to in based reentry and make appropriate updated GEO including published high-quality programs innovative and report, Care us our technologies. to implemented Continuum the the Among GEO programs. by allowed which our which pandemic of team Continuum academic employees transition We programming. our creation Care Academy, the technology-based accomplishments XXXX our recently annual the

Services Career Academy to programs increase an participants. opportunities employers, GEO our post-release for launched partner also under vocational with our We in to effort employment community

highlights the The also programs. Care support Commission treatment received our Florida annual substance XXXX on Rehabilitation of emphasizes Care our of the of importance strength Continuum Our quality of Continuum services. recently and post-release from Facilities on the of report Accreditation also accreditation abuse annual released that our report in the facilities based

of lower received who year, Furthermore, XXXX, food, address annual rates treatment, the such Throughout individuals support released not their support statistics post-release who transportation, significantly needs basic in X,XXX GEO show team support services, community and year During assistance. our that as participate allocated to program. periods, education experienced than our disclosed post-release our housing, more those to than Care job in Continuum one of over placement and million did our clothing, $X.X returning transitional participants, the two communities. report helped individuals post-release recidivism post-release

part Our criminal be proven successful to model, of live better GEO people and Continuum can X.X of how believe their provides criminal served justice GEO's Care on it justice program how reform. lives. the they contribution that a is million changing the We system, in

offender award-winning in Our other in conflict national with initiatives not sentence regarding competition, or reforms. is program

applaud In fact, we these efforts.

growth attention draw to comprehensive Our more also incarcerated, seek structured rehabilitation. approach to efforts of national GEO to positions in Care, a the our the of Continuum of success quality need many opportunities. We pursue and believe to still that

During half Tampa contract in with of we for Federal Bureau a Florida a reentry XXX-bed in quarter residential XXXX, activate area, XXXX. awarded the were we the first the the which Prisons, of expect new of second center, to

back this At time, centers. rehabilitation these of his closing I'll reentry contract day quality California, turn XX-day the are the center nationwide sites for Additionally, activated that for were to two we George, important representative wins third We call our the first contract a reporting services. to total remarks. a day reporting and in additional believe bringing reporting during our and quarter, awarded new center of

George Zoley

Ann. you, Thank

with supported financial contracts, associated Democratic we has in both, the units. controlled assets dividend. address and parties. provided Republican have and government under We our operational we've continue and remain the been Board suspended under there essential professional a policy of believe XX established future legislative with real-estate debt some our challenges by we contracts. both branches for to recent company quarterly and performance high-quality entailing our our non-renewal over and of access recognize and diversified business resilient administrations is To that resulted services to While remains pleased challenges, COVID-XX, our years federal actions by We and We've financing these services. reduction have regarding of concerns on face our focus the

also a are Our tax Board our corporate We of begun potential to XXXX. recently are has assets. the our our we best interest by our long-term We debt as in REIT to review address evaluating company-owned and we be the sale value. refinancing shareholder of completed these fourth structure, initiatives shareholders, of current due a quarter. note senior the as work And believe the of completed maturities enhance

and May That be of questions. Black, Session to service Blake Blake succeeded years on completes Question-and-Answer years with want by glad will be for has XXth, eight GEO. who his him I Davis, our his retirement. thank James And XX Finally, with On take congratulate we'd GEO, to remarks.

Operator

Thank you.

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

Joe Gomes

taking and questions Good morning. Thanks call quarter. and nice the for

George Zoley

Thank you.

Joe Gomes

So your U.S. the wanted thoughts off to George possibly in some start Service. commentary I Marshals here with of

any they that, beds. You of own don't mentioned their

on it houses putting on they? are reasonably they being seems seems rationally the wanted being the be of mean, other I to are not there successful not uses sounds I people? kind from repurpose the are secure Thank me Marshal, were policy And that. be the these mean implemented, that, for from people? your good to but other weren't the the that, How will the to get I think also, -- thoughts facilities as that, mean, center? if other facilities could facility top or they to we but where they understand of a I you. on also if a how those what you for It this difficulty to But used on and some ground. government away I just facilities just detention go have they U.S. BOP facilities, agency look transporting court to -- your So kind use. far

George Zoley

or prisoners question we challenge don't what but near first to identify held for urban the that doing on We the how federal is court quite it details in it, houses. challenge I areas being Service them. for complex are for alternative it predominantly it's of surmised a Marshals have the access think a they're Well, doing U.S. to locations their they're

-- with themselves smaller them facilities. facilities uses to But are time alternative apparently some secure hopeful on. governmental other alternative other we than of by other our have developers lent As of our agencies of facilities as repurposing moves for purposes interest

So as several purposes. of non-secured expect facilities we sales for non-secured nature that

Joe Gomes

to Okay. for are a U.S. just that's I you it people? beds that follow-up a mean, and don't would you your understand of aware thousands And on someone the yours U.S. time, here secure for just But plans. to make such the on in facilities -- transfer Marshals are a facilities that competitor just the going detailed their that access Setting unused. long easy been aside being for second Marshals, in have as industry being I of

George Zoley

purposes. and as some be would there reactivate and closed flow may in the COVID, the into because this systems prisons. have think but for due all beds intents COVID, will court course we of ended, year pandemic system people is greater and empty There going Yeah. will extra be the the a because of But court jails

Joe Gomes

Okay. if moment switch ICE, a gears here. on I And for can

seeing them people back emergency. wrong understanding understand and a me I'm to are was if on had bit Then year. same ICE single mentioning if being little their you also significantly used Title across beginning But health populations to XX. how of a was the since increased I as competitor border. the there. the it's that's trends it's the I wondering correct this against please my -- guys Your -- put

the single is be difference I family. and what between is a same? So health that someone the Wouldn't that's part the -- someone and understand of quite

George Zoley

seen that's in our populations XX first Well, temporary with the situation of regard uptick have my a ICE southern understanding will to to country to than because immediately border. detention we pandemic. XX And of the Title inside the allow Title them be origin. on question, deporting would resolved once their COVID of an the to rather think amended is particularly individuals I U.S.

Joe Gomes

Thank One Okay. one me back I'll for in that. for and you final get queue.

you a efforts and obviously, the you maybe state here might some President's to potential -- Order of contracts. due for be on the renewing the talked in new difficulties Executive where So partners? lot new about, there state Can to your and you with speak out business the looking business -- some

George Zoley

growth reentry in Schlarb. nature in that? Well I of day business reporting you release more seen the described programs rehabilitation required of we've There's in Ann on Ann, focus post been facilities. a by think our particular reentering business comment could interest as and and our the

Ann Schlarb

past reporting reentry started our continuing services at implemented at earlier year potential other the discussed Idaho day across with have all I in that reentry opportunities residential new in will Prisons that of were in of The be are we're this Bureau September. and the center as Tennessee, state the state to we've awarded look of seen We've that and we looking the expansions year centers areas. Yeah. of activated

Joe Gomes

Okay. get back in queue. I'll Thank you that. for

Operator

ahead. next Ramgopal The Sidoti. from go question come Please will Mitra from

Mitra Ramgopal

questions. the taking for Thanks morning. Good Yes.

that trends first sustainable, that get in just how the favorable able saw you'll color you wanted more and quarter that on be little maybe how to comfortable forward? the carry to First, a you I cost feel

Brian Evans

is This Brian.

And are think due costs in I a related result seeing driven you're less lower there's resident to think the of medical, by hospital I trends runs. So off-site the the facilities cost less occupancy as really levels also that. less levels, of some there's then occupancy lower

overtime there's management or better as So well. on labor going better

increase, the see trends long those some of obviously the occupancies that. offset continue see way. also manage we'll with that pick we'll we'll as then cost revenues And occupancies lower, being to start think cost as to as I So these up, but to increase continue

equal So even should start think to when better. we footing I on even improve, the occupancy or be

Mitra Ramgopal

-- are more -- see in curious Okay. XX% occupancy cetera? able et be center if states terms increasingly No. lifting to maybe when increase mean of restrictions get speaking back That's anything And capacity I COVID-related vaccine lot underway, rollout any we at of great. and the to the of you're ICE or with from sense you well might a

George Zoley

We and towards the only state. That's be could have more guess our that guess normalized we get to would would a a think that fall, guess. back things just

Mitra Ramgopal

And to if out the space in cetera stem policies, perspective as curious then, of there from right not coming I'm there's now? you anything in lobbying et sort of of do can states whether just federal political given indicating it the that you terms Okay. activity the climate Thanks. seeing again a the to maybe were some of following some expire cetera. prison maybe relates those recently engaging et when private contracts

George Zoley

time administrations provider first quarter, policies and when said this brought think the be tested we and year we to need I transition seasonally period be can in expect implemented fluctuate policies. and which Well our revised, the needs as to all a service periodically clients make to the And goes as different new will accommodations them. the with to And stand we essentially we those implementing in fields and and a to situations and those services ready are forth stand on. work require. ready we on provide due agencies And

Mitra Ramgopal

on focus be the looking or political -- the to again CapEx, might growth for in here? on making example there on you're be again finally, still pretty opportunities, climate likely you is then And that Thanks. investments given here to going the the explore much it the Okay. more more US, international is is

Brian Evans

have what the Well, so I in existing the seeing to balance where our of to transition newer bulk we is in related And had of facilities think reentry year the BI a that mean, facilities. And and is also the the some improvements year this then, minimal the correctional CapEx we the next CapEx we're growth facilities. we most our -- cellular part for and to was CapEx, pretty generation forecasted business of I technology reduced technology. in for and

Mitra Ramgopal

the again taking Thanks Okay. for questions.

Operator

Management. from ahead. And next with Asset question MJX Fred go the Please Taylor will come

Fred Taylor

Yes. that was are Thanks for bond I new the issue, where call. bond the Reading a noticed congratulations. issued subsidiary. February a issues press Is issued release from? XX other the from two it But at on

Brian Evans

at from. that. I'd sure have issued look to not exactly ones they're which I'm all

Fred Taylor

full it it, be if or -- X-K-ed memorandum I And it'd Okay. if offering an would don't you know if prospectus. see be to the great there's nice

had I was question -- other The

Brian Evans

a private placement. was It

a perspective So now. I offering don't think public there's

Fred Taylor

But as X-K? you look that a company, public put you -- to wouldn't in

Brian Evans

of is. Some it

Fred Taylor

Okay.

you The goal credit, mentioned term accumulate? the or between debt, pay you think I loan was, net you other down of in cash to the that said How think revolving $XXX actually the debt. would and million bonds, reduced you just allocating was to would question allow

Brian Evans

during I some call, Well, with working as we're said financial the advisers.

be when I of think the that we of process, that So that. all and to the will do part how business the that flows evaluating cash of apply timing

Fred Taylor

you. Thank Okay.

Operator

Jack next ahead. question Samlyn from from will go The Barnes come Please Capital.

Jack Barnes

Hey. the guys. time. for Thanks Good morning,

contracts and direct direct the any, just Service Just contracts but if difference, Could thinking remain canceled? a possible you clarify and is there ISGAs relationship. whether ISGA between quick think follow-up the even on you the it's how the about the are the Marshals you're if contracts will

George Zoley

direct been our on currently Marshals contract. the with discussions Services have the Well, only

Jack Barnes

there to all the allow it Do contracts? to would a reason to to it apply Order you the direct was contracts, think worded is to or them only way Executive the expect that that apply

George Zoley

discussions And Well, and the exclusively direct responding service the we're the identify Marshals as them. Yes. concerns those right on they contracts. of to are now discussions

Jack Barnes

Okay. you. Thank Great.

George Zoley

as to the thus been ability to the they've concerns. entirety discussions have just have contracts. on of But as We the speculate expressed far, their them don't direct

Jack Barnes

Okay, great. I And if one, then one may. other

the expecting how rationalization -- I intact the to and But might facilities how visibility On be is you -- ICE are population footprint there currently keep your ICE the term? relationship, understand the the think until made about populations the the system, the capacity order Is ICE just to White guess, you Homeland to the didn't address, what in there longer levels, be a the that in on as apply House? do a will I excess in about you there's executive more thinking expect Security. occupancy from

George Zoley

aware have locations and of due don't is, we Well, in large but has. excess again, are that's that what is we capacity knowledge the part White planning number to ICE of the in-depth there House that

those promulgated meet administration. think small I it locations. Obama jails many that ICE be standards that actually hundred may are the of couple a don't the of by were latest around country the And

to facilities by they So of close, Obama which facilities one standards the that retain were issues which deciding be when developed may that whether and the meet the to that confront administration.

Operator

Zoley today's conclude turn any session. like I now remarks. will back This the closing to George over for to question-and-answer conference would

George Zoley

the you addressing to Thank Yes. look forward you your we all for next in questions quarterly and call.

Operator

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

The GEO Group, Inc. (GEO) 10 May 212021 Q1 Earnings call transcript