GEO - Earnings call transcript Q2 2024

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Operator

Good day, and welcome to the GEO Group Second Quarter 2024 Earnings Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. I would now like to turn the conference over to Mr. Pablo Paez, Executive Vice President of Corporate Relations.

Pablo Paez

Thank you, operator. thank GEO joining earnings Group's and discussion for results. everyone, the of second morning, you us for today's Good quarter XXXX Board; President Operating Officer; With Chairman Suchinski, Chief Officer; George are and Mark Secure Calabrese, Brian James Services. Officer; the Black, Wayne Chief us Executive GEO Evans, and Zoley, President Financial Chief of today of Executive quarter This morning, as our well we will results discuss outlook. as our second

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

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

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

George Zoley

executive be manufacturing joining chain business corporate who Thank early morning to everyone. senior than joined by years in our in GEO July our today management, level on us for to more welcome XX markets, management. quarter CFO, senior you, second and Mark with of finance, I'd good call. capital management supply you Suchinski, like and new experience pleased joined Pablo, Thank team, our earnings I'm to and

for on and half milestones we call, outlook second down continued of XXXX XXXX full leverage the will enhance provide debt, our reduce value our to and the shareholders and segments. To results financial operational and and each today's second our the discuss of our business review an long-term guidance our quarter for efforts year. update During financial pay our for

quarter, to and During our financial second the business steady units deliver performance. operational diversified continued

pass Looking year services care compared year-over-year that Revenues managed Services driven well our trends. a The for managed-only not the electronic increase detention approximately the will as X Security which for due begins Homeland only year, Appropriations to at quarter year beds, segment docket, of X ICE having which If the end its census services support of which for to in at require ICE new at XX in the a ICE Congress and U.S. approximately year contract to which prisons financial bill, XXXX, U.S. of estimate this a appropriations of funding beds, state from quarterly Supervision XX,XXX are the reasons a to and ICE estimated bill. participation the version U.S. contract in fiscal by all XX,XXX the currently utilization current second people. would health segment decline increased ICE XXXX ago. Congress monitored of resolution ISAP from its under XX% programs. Security Representatives the XX,XXX in detention levels is constrained of to revenues that our XX,XXX in ICE by deliver long-term level not use activation believe The spent full million our key by at beds. under provide also new with August transportation for year increase beds and primary increase to decreased across its introduced also approximately the Homeland participation monitoring and Victoria. our as increased currently reconvenes the an for fiscal air detention Australia approximately the individuals daily a who of year facilities. compared or increase counts was driven due segment. The is was our below XX% the utilization the XXX,XXX. would We Services our beginning Currently, when believe electronic a bill ago levels the House by House approximately ISAP Security our year for likely ISAP approximately more beds. that reentry Participant are XX,XXX in GPS for September total average beds our approved a the consistent time, adjourned all XX. XXX,XXX year-over-year monitoring funding services XX,XXX now Utilization participation to of for continuing of Congress. to by House agency's resolution nonresidential bill on for alternative-to-detention respect X,XXX number could million ago than from individuals Appropriation counts level quarter bill on averaged fiscal when on XX,XXX for beds of across individuals appropriations of Program XXX,XXX a federal budget facilities of increase Xst, for the of the We GEO consistent has year are division Revenues year approximately ICE approved version X% and current ISAP. approved the of at ago, during year our current recess. beds short-term increase from over At from during approximately October fiscal of in of funding funded represents the ago. increase Xst, or increased nationwide more Revenues compensated $XXX This ICE from a secured the continuing is earlier Intensive government's October a that of Congress currently facilities leased and by Appearance with related which the for population services detain supervision September, of beds, of Revenues federal during We U.S. is facilities under beds and Senate entry driven the increases a approximately the has would primarily Homeland count XX,XXX the facilities of to X start man-days XXXX. our owned X% XX,XXX remain X With our first funding is XXXX. than utilization in current ICE has XXXX funded was XX,XXX second in below quarter across Marshalls

information center late has stand we the with approximately We utilization cost country. to Newark, in beds high-quality to ICE and discontinue to $XXX needed across services GEO with beds the minimum quarter to ICE, New procurement and responsibility. to its remain increase contract and the and by for ICE million of ice-free beds Jersey ICE allow a focused bed this detention detention a in in in In ICE issued for funding XXX rates for help expect toward participants. expected request portion outlier ice decision XX-year ICE for federal behalf a previously non-GEO early needs was issued centers a and of in ready June, announced to of of I any fourth operated facility the to area June, alternatives Subsequently, all Midwest, Utah. procurement, year support on the the resources periods. of a submitting and on Texas to meet XX,XXX of a beds contract, providing in provide a Under considered agency will responded which needs. service agency ISAP Texas, up processing contractor this increasing up services detention processing procurement Phase also We participation to the programs is the XXX,XXX proposal. inclusive a option contractor

Finally, These of during returns second debt, our flexibility overall as we and the focus convertible reducing sheet. for cost the transactions exchange potential our notes. and reduced capital debt balance to maturities, giving pushed all out and our important continue of us completed have on of debt including our the future debt de-leveraging greater comprehensive in our refinancing of quarter, retirement substantially our the we

reduce X.Xx to adjusted below million total million to $XXX and year, year-end. debt bringing We net this by our our debt expect net our will $XXX leverage our call and EBITDA Brian by now over between Evans. approximately to the I $X.XX billion turn CEO,

Brian Evans

morning, you, everyone. Thank George. Good

significantly Our have us reduce our strong cash allowed the balance de-leverage to debt X years. last X and sheet performance to over our steady financial and flows

giving lower resulted XXXX of our now debt company transaction rate in is allocation debt structure a proportion of debt, cost XXXX. The positioned of disciplined debt potential overall which maturities approximately our the from entire company of refinance to runway. time in debt, our insulating total repayment important us frame this quarter our the XX% staggered interest future. significantly has a second XXXX also refinancing fixed increases and during between higher further rate comprehensively an and This over Our longer capital our of

down long-term to our managerial and term, our all our had debt continue to which for immediate overhang of we of our notes, In were created one we Importantly, shareholders drive we will of reducing value paying capital the on believe priorities. leverage. an the convertible remains top retire focus able and equity to allocation The on substantially disciplined valuation. exchange of million $XXX

Over $X.XX to to and our the to reduce we leverage billion adjusted X.Xx hope our than EBITDA. next debt, total debt XX below months, net less net comfortably

in our and priority company's evaluation evaluate opportunities our The make we we goals, options progress expect careful As towards of shareholders and another with capital managerial company. to growth is important capital conjunction to growth return objectives. needs for to these quality strategic

industry. XX focused unmatched and developing years, scope platform terms we service last is in a investment Over our in the have believe strategy our that of we on diversification

has allocating as in in respond businesses assets. pursuing We agency have that believe the strategic allowed acquisitions market capital, positions carefully so policy services the partners to spectrum by company-owned our leading and strategy of and evolve industry, our to priorities time. over of of facilities government across needs our this We develop enabling to done entire us investing us

settings, and GEO secure reentry care technologies. services and air through and case congregate post-release health residential in community our services Continuum Care, include custody settings, care transportation solutions rehabilitation of and services, monitoring diversified cutting-edge management electronic and award-winning ground mental security and Our various programs medical enhancing

of developed federal detention also and combined centers total company-owned brick-and-mortar facilities, company-owned unmatched have centers beds. a with an re-entry correctional processing community XX,XXX immigration of assets network We comprised approximately facilities, secure of

that XX,XXX an believe needs construction our our of company-owned are billion. company-owned fully government the and that beds of Approximately believe arrangement. XX,XXX focused age these currently assets of new team replacement and excess years, to contract local diverse value for reactivated increased to our flows. on marketing agencies help a of Our a services are provide and upside If idle partners. to or our are with have agency $X annualized well facilities XX management growing in development average under revenues combined beds traditional state reactivation, our a either federal facilities these meet meaningful and idle, relatively suited secure our and priorities facilities would we company-owned costs, policy and important lease we on Based remains cash

agency need request in generally for respect will capital underutilized Newark, future facilities information Jersey of of the in procurement are in a focusing alternative can Utah. assets for re-entry our potential to space beds for bed George urban residential and to for We a additional areas, a With on of opportunities, buyers. the that issued ICE and facilities usually or idle these We continue separate repurposed located area evaluate its a known primarily are help interested some complement Since asset potential suited uses New needs, to also as larger of the centers. to areas pool Midwest, of typically currently publicly the be sales and our available Texas several for those well country. has attract in minimum readily XXX our believe meet mentioned,

the the public-private XX facilities have long-standing We back United providing federal mid-XXXXs. bed States. ICE a partnership and support have currently the to space needed with contract with We government across and dating services ICE under company-owned

of than provided platform for ISAP our also and management technology case monitoring high investors, monitoring electronic management has shareholders. the on this for built more strategic subsidiary, value bipartisan services capital to executing the I'll and integrated Mark to At is this frame, unparalleled predictable believe Over with the time, BI have we our company Suchinski. are long-term solutions strong program successfully levels enhance behalf believe years. focused nature to an services, We of achieving and of proposition what support. cash value under case our We over electronic flows, continues for turn contract given compliance time under ICE we allocating be priorities CFO, our our call XX on and the of attractive and

Mark Suchinski

and joined have we Brian, rest strategic I with execute good you, a morning, as the continue Thank I'm world-class to and look forward working the management team the and Brian the George, to organization, GEO Group. everyone. pleased priorities of to of

For the quarter per on of approximately million $XXX million. to attributable $XX.X or second net a approximately $X.XX reported of diluted XXXX, GEO GAAP we of quarterly loss share the revenues

of results XXXX $XX Our of second connection associated our transactions. extinguishment debt with debt million the approximately refinancing costs in quarter reflect pre-tax with

XXXX other $XX income items, $X.XX diluted per debt quarter of extinguishment adjusted the or reported we million with net associated costs the share. approximately second and of Excluding non-recurring

We by $XXX revenues. quarter by year-over-year year-over-year, million. Marshalls increase XX% facilities. in Services and levels revenues increased driven during compared Secure owned the approximately of Quarterly adjusted second our managed-only with year ICE X% by revenues This segments. by also Beginning our secured International reported driven in in second and to of and approximately in managed-only our Service a segment Revenues our segment U.S. ago. EBITDA higher our quarter occupancy XXXX segment at Transportation leased primarily XXXX approximately increased was higher

monitoring contract second offset and revenue Finally, lower segment year from our the by due counts ISAP revenue segment the electronic participant increased to under non-residential prior increases in services quarterly our compared revenues were lower X% supervision approximately year-over-year. quarterly service to These by quarter.

Turning our expenses. to

expenses associated mix and expenses with XXXX. of the administrative of result XXXX, our of quarter increases, quarter second XXXX levels higher the $X second for convertible million cost and as approximately to During approximately inflationary revenue the of compared occupancy a quarterly exchange quarter of fees operating a increased notes. shift by and X% reflect General second the in in retirement

approximately XXXX quarter second in $X million. Our net results reflect decrease of expense year-over-year a also interest

include costs Now guidance our 'XX, into for XXXX. extinguishment Taking the fourth X with debt, results moving of for we the the which third $XX year months to our and of account of quarters million first pretax and associated of the full in $X.XX a inclusive rate net expect of per effective annual attributable to range the of for full discrete be approximately GEO and the $X.XX tax share to XX%, of items. known income diluted in year on XXXX to revenues approximately $X.XX billion

items, with Excluding non-recurring to of unusual range the diluted debt $X.XX of the the costs extinguishment per year associated and other XXXX expect full income in $X.XX we net share. adjusted be and to

full million our between EBITDA adjusted XXXX be expect $XXX million. We $XXX to year and

$XXX quarterly be quarter XXXX, range to of per attributable third the million in $X.XX million. to the of GEO we net to share expect $X.XX diluted on For income of to $XX revenues

expect $XXX million. $XXX We of to the XXXX adjusted range third to quarter in be million EBITDA

be on income net revenues expect we XXXX, $X.XX million. quarterly of of share attributable to in $XXX quarter per to to range $XXX $X.XX million fourth diluted the the For of GEO to

adjusted We to the million. in also expect EBITDA quarter fourth to million $XXX range XXXX of be $XXX

the Our the gradual quarter fourth participants the ICE beds guidance of and ISAP increases assumes the of moderate XXXX for in under detention number utilization monitored of contract. a

our capital structure. to Moving

exchange the million GEO our shares of transactions a of XXXX, using we During exchangeable quarter cash approximately common of unsecured completed a debt. $XXX million and included in combination stock. million and million refinancing These our the of of $XXX.X of notes the comprehensive of XX.X $XXX.X second retirement senior

cash million in XXXX, approximately June Net X.XX%, XX.XX% notes unsecured in XXXX. revolving senior interest of X% on senior And in SOFR of and due and secured XXXX. debt. $XX bearing in $XXX senior of notes borrowings in our bearing facility plus of under borrowings plus unsecured million XX, SOFR million due interest Loan X million secured $XXX hand $XX other Approximately in our at XXXX, X% and comprised Term credit $XX was $XXX million under due a of million. X in As approximately debt in B million

of of billion represents debt improved our was and debt all to maturities we [indiscernible], out XXXX. our debt the $X.XX XXXX. and this structure, just Our below rate of second substantially pushed total fixed total have quarter meaningfully at net debt debt Under XXXX XX% end the our approximately

we to forward, to net continue expect expect reducing XXXX we net Going in on our with billion to approximately total focus debt. further debt, and end $X.XX

At our of for the unit. explore turn I options for Our in goal will future. Service review a to time, shareholders the James business GEO to over remains capital call to Secure this Black returning

James Black

my milestones Good Services. quarterly Mark. It morning, is you, everyone. to the pleasure Secure GEO Thank for review

second or underwent XXXX, our American government the audits, a second score total Act audits, the of and received Rape third-party an successfully XX% and X Prison quarter secure including Elimination from facility facilities of facility pre-certification Association the secure certifications. X Correctional received average accreditations XX PREA our internal During quarter. of services in with reviews, of services accreditation

Amey joint million United Our our Transportation the the U.K. miles GTI division U.K. and completed approximately in during the and GEO second X driven States venture quarter.

detention current to partners. At our X,XXX at for approximately of increase utilization over X the of of second year beds, government an which Moving U.S. end remained the ago. trends represents X% quarter, facilities stable from our Marshalls agency

XX months. alternative of the capacity. Services there our with believe around provide the facilities the providing of for renewal country space up services of next Marshalls that needed U.S. criminal as U.S. our Notably, facilities federal it carries federal courthouses, lack custodial the detainees where facing is out direct are We pre-trial Our U.S. Marshalls none contracts secure bed Marshalls mission support near generally detention over a agency suitable its proceedings. for

beds the ICE centers funded approximately services second beds, year's and we XX,XXX experienced bed a long-standing the track nationwide behalf and is the the fiscal processing estimate of delivering any We stand quarter record approximately which ICE GEO GEO additional ICE Moving that utilization X,XXX centers. support of XX,XXX under that beds current support across on utilization of has with stable currently facilities ready XX,XXX processing needs. professional level We congressional XXXX. ICE appropriation. to all ICE our contracted of in at is to below is

expertise and facilities a ICE's needed total XX,XXX secure suited ICE at We several the offer have the meet to idle GEO we services the services believe needs. to have agency's are services. mission, contracted to care to resources we of provide well access ancillary processing beds support that around-the-clock and quality health centers

health and of Our number generally processing GEO-contracted ICE legal offer ICE provide legal and to have counsel. than dedicated centers care staffing library space culturally resident is correctional we health in and meals with at centers meetings we centers legal a more where sensitive, health access to special care diet staff by provide residents processing counsel X and ice state each the typical full double resources, facility. registered care ICE Geo-contracted center processing and dietitians. approved that are daily with accommodate approved

faith-based provide activities. centers religious ensure to contracted fair states ICE recreational also various at as representation and processing a ICE processing also center. partner offer denominations. volunteers to access GEO-contracted each and with quality opportunities GEO to access We community needed we And of

option our base care GEO multi-purpose ICE into XX, housing significant in by residential centers, XXXX fields, investments contract followed XX-year rooms. for and have the Adelanto turf December periods. X-year company-owned on exercise We of amenities X, provision processing a covered December equipment a ending X,XXX-bed including and enhanced entered consisting and on provisions, in artificial our made XXXX, of ICE California, at soccer X-year period XX, center at secure

Adelanto allowing the to to issued continued COVID-related for a During hope funding CSI of for order on -- Oklahoma October the task had currently segment, litigation GEO Aviation. XXXX, a prime contract the given prevents Department to GEO X,XXX the relief legal notice Oklahoma contract division had full enter ICE noted, Subsequently, that center. announced we quarter unless by the With positive on XXXX, and for ICE under contracted at set the that Corrections of management for ongoing upon. services, XX, a X-year we XXth, ancillary the resumption the also processing our transportation correctional for the from state was And providing agreed June the ICE be June the additional could X-year agreed air into GTI which and terms. bed our obtain at disclosed second XX, outcome June previously new support respect been of We facility XXXX, from intent will that time to respect through given use Corrections provides GEO's secure operation June Department With ICE has for terms of center, support GEO new Lawton operation our through contract the expire outdated a of as discontinue on XX for the intake held proceedings to ground Transportation facility include a we Adelanto centers. of that XX, Oklahoma under ICE XXth, as provide our company-owned contract to mutually announced revised sub-contractor center. of we secure XXXX, of primarily Lawton continuing

for decades-long on over of proud by of Correctional and the with Corrections. which We a business Finally, previously At we of is managed this Department the time, Virginia, now the disclosed services we Care Virginia will are long-standing X,XXX high-quality state-owned record of partnership review to bed I operations of at transition Department the Virginia Center had Wayne to providing our of Calabrese Lawrenceville XXst, the Corrections in GEO completed successfully the call commonwealth. our a unit. July turn

Wayne Calabrese

milestones pleased I'm provide Care. you, overview GEO the Thank quarterly James. of to an operational for

XX including residential Bureau Prisons. the contracts with Federal center of renewed X quarter we During re-entry XXXX, the second of successfully contracts,

in and new Illinois retained day center we day in we contract one covering California. X an awarded and were for X non-residential contracts Additionally, centers, reporting reporting California, additional

third-party American government Association offices including Our the total of residential a Rape quarter. of certifications accreditations and the Act pre-certifications non-residential And Elimination residential re-entry residential PREA received successfully our XX of audits, underwent centers, received second reviews, our our Correctional XXX%. field accreditation day and an or internal audits, Prison from score centers the reentry accreditation combined in quarter. X ISAP with during each of centers centers Five reentry reporting

residential at remain transitional states. Census programs with XX rehabilitation centers average provide levels the their population during Our centers year. these of and for second approximately XX individuals stable individuals across re-entry an of housing re-entering daily quarter the communities X,XXX

Our centers different approximately day community-based non-residential reporting X,XXX for treatment at high-quality cognitive and provide behavioral and including probationers Parolees upto services, XX XX locations states. across

to Care in-prison Moving GEO our programs Continuum division. and of

to and second we of XXXX, X population at states individuals the services Continuum During average X to program delivered approximately of XX enhanced approximately individuals quarter in at of facilities Care XX,XXX rehabilitation sites states. in-custody XX in GEO an daily X,XXX in-prison

second retained sites Carolina, of and a the contracts new North for and X contract in in-prison we were During state we program successfully in-prison quarter, awarded Tennessee. programs the Florida for in

investment area equip those programs delivery school care high We've We've developing based diplomas. focused placement focused our of to when all classrooms not services programs include attain to of are certification the only our in Our helping facilities. on job a also on on completed, in-custody instructions in aid to academic also vocational needs. but boards equivalency at lead that all significant market academic made rehabilitation smart with

disorder. part important an are programs addiction individuals our substance treatment abuse use because substance from rehabilitation services our in care many the of and of suffer Our

faith-based programs. extensive and provide also character-based facilities Our

to faith-based of character-based programs. our the or We dorms housing important these across facilities delivery designated units enhance and have

of quarter enhanced rehabilitation programming. second XXXX, of completed the XXX,XXX During we approximately hours in-custody

XXX Our academic more school high programs equivalency awarded the diplomas quarter. during than

in same awarded is XXX course in behavioral program awarded than vocational our and technical care And cognitive in sessions. and individual substance to programs approximately completed XXX more programs close treatment treatment participated treatment career Our approximately time. XXX Individuals that completions. behavioral abuse certificates X,XXX our

the allocated post-release they quarter to from GEO released second services. also supported their funding as facilities approximately the $XXX,XXX of approximately return This XXX individuals year, we communities. During toward

post-release behavioral model enhanced support released in believe cognitive the for treatment a following GEO better rehabilitation U.S. release. that critical address Care program services of justice services, Our the be people million of Continuum community lives can how our with served provides criminal including in-custody proven award-winning system in X-plus individuals. their changing integrates needs We

Our recidivism the of several a last in recidivism GEO Care and with the X years. between over positive programs rates XX% had in has a criminal rates reduction across impact achieving of Continuum states reduction our XX%

Finally, supervision segment, turning our monitoring provides services technologies. our monitoring suite products BI full and of supervision and subsidiary a solutions, electronic to and

extend this accommodate management the government expire X or complete. re-bid services to that months of has contracts as ISAP During new prepare second hearings that using current of at for level term years contract has every often years, winning BI Under counts individuals. a of for and attendance management, innovative averaged the individuals established. has The technologies needs compete on and and current that can over time. a of procurements for ISAP explore BI important existing support ICE XX variety re-bid with longer ISAP continue the re-bid to to since competitive federal XX bi-partisan of count X scheduled ability XXXX. July of will to case XX XXXX, holistic technology take XX, almost new of ISAP months to the supervision, first technology tenure, with solutions, under The and has contract BI's received provided services was the compliance we and the quarter achieved high contract. approximately support has participant between case participant to contract to ISAP of approximately XXX,XXX participant ISAP contract due the XXX,XXX monitoring compliance is under solutions the

the electronic ISAP justice to In at across under provided supervision country. local monitoring and addition the to federal, ICE monitoring state the agencies BI criminal the services technologies services and levels to provides contract,

of existing South justice quarter second office administrative BI with state of criminal the the XXXX, United States contracts Sonoma retained courts, the During California. of X important successfully and the Carolina County,

At expects provided are competing time, call this and service devices services, remarks. electronic several for closing several to the monitoring continue local providers. contracts state involving BI currently by related and to Additionally, turn back which for I'll George thousand other

George Zoley

Wayne. business our and you, financial continued to In have deliver diversified Thank performance. units steady closing, operational

comprehensive significantly lowering average evaluate enhancing pleased future. giving of flexibility the cost balance are our capital have to We to sheet, options our shareholders return the our us to to completed re-financing debt, greater debt in of and

an able strong to our that which and estate to along value notes, which company's We valuation. we attractive for exchange cash substantially have created our our replacement we estimate real flows, with $X all Importantly, on opportunity billion believe assets, represents a and convertible believe equity we retire our of valuation an of are investors. had in predictable overhang excess

believe to also our competitive we of enhance of and several opportunities for no our balance contracts year. re-bids existing the have performance, we the We financial have

our agency our questions. on focused glad upside in are fully to And believe be significant if opportunities That XX,XXX with beds facilities, existing the provide pursue quality partners. our reactivated. GEO strength we to growth will platform diversified of idle We and which government marketing we'd take new and services positions completes remarks,

Operator

now question Noble session. We Joe Capital first Markets. At begin this from question time, will Instructions] [Operator begin question-and-answer we'll the our the will take with now Gomes

Joshua Joseph

is little question but regarding Josh guys just for a My kind on it you touched ISAP filling first bit program. is of This the in earlier, Joe.

you guys months on but color I You know about wanting a the that. kind for contract. just to renewal But you little seen any for out, talked the guys that. XX re-bid it's of more of developments have

Pablo Paez

ICE that there's administration sure want new the RFP. point it's viewpoints concern that own administration nature the some a methodology place of may the aware to they in is its a on contract. new we're think likely in to be and been that in place, I'm there have and discussions But crafting as I

So at they to is time. administration that await what I think see in may place

Joshua Joseph

touched of on with kind already, know again color flights but in kind additional maybe just you call I there announced. the little guys provide on to of it that? bit a any was have the in contract that Is expand expected air chance You can more June operations? ICE the current

George Zoley

know. don't We

haven't or... We from heard CSI anything

Pablo Paez

capable activity comes using for for any air and operations place don't there our doing support we are us a to provide security the more air which We in operations, scale further are information. we new have administration capabilities certainly if of that. wants those in up But

Joshua Joseph

last and the has it opportunities and you the within kind quarter? of the of kind smaller same... this Lastly, Has of talked guys kind changed second level. seeing about state remained quarter, local Or scale in

Pablo Paez

correctional I of regarding our to of among partners have possibly on in some them growth that basis. been need are a we've seen we've state or on their idle interest facilities contacted to lease the think purchase that interest for additional and systems capacity, our as

Operator

with will come question next Brian Your from Violino Wedbush.

Brian Violino

any clarifying questions of It like over versus Just ICE being ask to monitoring Is uptick rolling activity? new the a purely fair fourth both on that's assuming a driven it that, budget sounds and of wanted in guide. by to actual in modest assumed say you're in increase quarter. couple the sort detention the border

Mark Suchinski

and achieving of on participants higher spending as of levels that's some budgets of will funds October in detention of in federal of doing to in as for and to replenish, the stay to Well, capable and budgets, of think commented quarter use think continue use been ISAP speak. that's administration speak, additional additional they've I seen And reflected and use the ICE second beds by number participation beds third earlier as in October within they constraints so there last October what virtue what their and this authority I we've probably of presentation in the use is of and fiscal begins their been replenish in this well the participation. to number not budgetary began X they I financial my year. but X of so quarter, have particular, which X during And to fall, ICE year, beds the and be that been ICE,

Brian Violino

Just could uptick. to potentially us to that below that there go happen, clarify, the move if of reason that current end if year say Or we lower didn't low come of towards the was Would full that guide? there guidance? that some fruition end potential the a doesn't is the

Brian Evans

they before. and bit, end bit will closer as we've a are little why it said hold We of a up. to trend the the little moved that And we range the the numbers tightened that that's think if where be down range, lower

Brian Violino

I that quarters. Last one past to outlook I for me. been noticed the CapEx. higher on couple over want has of the touch just CapEx moving

could on you wondering commentary some if Just provide what...

Brian Evans

particular and Jersey. done in improvements X in some Oklahoma in we Well, I have New one think, significant in, facilities, one

Operator

The next question will come from Brendan McCarthy with Sidoti.

Brendan Michael McCarthy

just I follow-up a the to on wanted ask past question.

start another With fiscal or resolution the Xst, are you funds that's 'XX? to continuing that October assumed of CR expectation come for assuming or a the replenishment a is that

Brian Evans

funding the proposed at That ISAP. bill, would House for which enhanced XX,XXX a count level beds million $XXX pegs Yes. the for not take It's the XX,XXX. of level and as to CR, which in detention assumes bed the

Brendan Michael McCarthy

that federal Then of may just that ICE. sounds like the there's funds year, Is pretty looking fair to this chance a it EHS towards through reprogram rest low fiscal say? at

Brian Evans

I think it is.

avoided least evidently they've the doing think I I that last think, year. at for

Brendan Michael McCarthy

develops purchase want to can and proceeds agreement. you Wondering that provide use the of Coleman how there? at I and Then color if Hall look transaction on sale maybe potential

Brian Evans

values, as Hall So the early are there recognize re-entry in very It that book there the next and and into well a below purchase of said, slightly of closes, and agreement vital entered I said, close that. we have think expect was our year. the facilities end you're We Mark If or Coleman quarter. outs sale placed as some and are that with And by the some we've year I talking transaction. for difference we to sale. obviously it mentioned those we in would they're about for it

Brendan Michael McCarthy

at BI's products. Looking of suite

product the that talk little seeing is product. I more you there's bit a resonating just customers? Can ] with there Vera [ about noticed traction watch among think and what I you're how been

Wayne Calabrese

for participants, being the see early for We'll And still is The is the time. adapts. criminal ] cumbersome. some [ days less This it been the But at Vera particularly has Calabrese. with received. bit primary ISAP the it's the at in perhaps how little for well good watch is justice, the local of expectations and and little It's Wayne interest It a trials levels. lighter well of a it been functioning the product. market And contract. ISAP this have we

Brian Evans

to [ there was this contemporary watch. to the wrist a less Vera worn always for monitoring think with device compared device, has obtrusive in ICE is have I ] particular, interest of we watch that device ankle And an monitor. individuals that as a look the

wouldn't main is of by a it. that the person device of this watch. monitoring You looking one at know And attributes that's a wearing

Brendan Michael McCarthy

the long And guess, transitioning success typically I out trials those do rate, trials those into how of last? Just with what's contract? curiosity, a

Brian Evans

using excess a X,XXX sense prefer how for the market type units an They're be trial works them. or at the We're Only for GPS not ISAP local the small. government in might Vera this this of a trying office in shares XX and Most a can continue criminal probation country of contracts, time. in still But with mode point growth very of get steady they being to say, at of for There justice around monitor participation couple the trialed by, roll just a watch. this XX, law enforcement we've kind couple the numbers of agencies ankle out appliances. office of GEO they're seen months.

Pablo Paez

piloting how use is it's device to there said, clients and I like certain it putting just fully And testing it more to he what said functioning it when they just operationally use, for to they the what think might Wayne in add out for. or and see

Operator

with from Next Greg question will Securities. Gibas Northland come

Gregory Gibas

a assumptions step could follow and kind QX be hit funds flat just nice kind perspective too. kind I ISAP Would then in up relatively of then to commentary those currently detentions there. up. things Then guidance we and once are of QX replenishment expect an your terms on where of from trending If of of seeing

Brian Evans

Yes.

occurred QX the of QX exception of think continuation expenses that refinancing. during the a is the I with

Gregory Gibas

kind you facility? likely do the Adelanto What outcome believe be the will of at

Brian Evans

intake Well, such entire restriction. couple And years medical restriction we're that on the reasons a gone the continued this for about legal ago. it's reason, concerns country. to for intake facility because a in there's hopeful no intake And the the away was has facility original care settlement provision have health COVID, based no an was an of there's only has which

the reach an hoping successful we're their amicable discussions DOJ So at the resolution intake facility. will plaintiffs that be to resume in to with

Gregory Gibas

being that. get likelihood I likely? how just Just think about evaluating guess you, more debt you of returning should of I the shareholders. curious that? sense XXXX And to refinancing the a wanted talked considering of to behind you're kind of better about capital kind lastly, we of thinking about

Mark Suchinski

those when their be greater have we would objectives. and into case that how new the we think and visibility to the I as fit administration objectives would

I target think that's date. a good

Operator

come Trading. question will Next from with Jones Jason Weaver

Jason Weaver

to any to total your high of misconstruing the out most ISAP within app. if prepared be mentioned the capacity the might bar give of non-detained it. dockets in that kind remarks, from but the and be may me to XXX,XXX current I that possible growing just of It House this, to expansion Appropriations your how the Can program under is you even service number a sense rolled of you that bill. seems an

Brian Evans

would that, to States ready pick offices throughout up are participants a to very But million of we just having ready to, expand. United be resource-intensive a the field that rollout operation. obviously complicated X let's said The and number, have

GPS management. all from as everything technology case apps can used which technology, well the phone, of on as the such person-centric as have We a be to services

we requested, do they be We So want a accommodate establish once government to us be growth whatever able prepared and ICE might new policy. partner service. to to put and to if would we'll administration to their a be it can good

Jason Weaver

returning versus change about lines post How the the trade-off to moment you in that that sort shareholders of the reduction? debt capital a ago, the do between further same asked debt was question just along today? restructuring, of think any Then

Brian Evans

we the again, that decisions knowledge of the as own information comes to Well, issue, have on into based our how be and to We'll fit objectives. objectives on it of those it's a it timing forward. administration and balance new needs

Mark Suchinski

de-levering. Yes, Jason, first I'd focus the add, Mark. again, just it's is

about that, in going some talked got roll to explore we the from internal want we a with from conjunction we we've opportunity get So business get just standpoint. what we're George debt once a XXXX. opportunities then to as targets this have to close into And to to

Brian Evans

between reduction, the get to and at find that capital proper a to allocate like. time I shareholders, think continue based said can good to before, opportunities we that what on but that is to timing flows those George we've for look the X discussed, That cash balance continue will point we going we'll next where to late also, on, year. we as focus the we're debt as arise different middle once

Operator

will from come question Financial. with Jordan Philadelphia Hymowitz Next

Jordon Hymowitz

The things. circles of word watches, is. for progressive invasive. less X you answered, were monitoring a see from some mean, have they're use whatever because Is more smart political watches I business. smart tanker They or the less the the questions exclusionary my opposition of or to Most there's opposition democratic want

Brian Evans

that I But for that with the But the, that is can't work supplemented connect appearing has progressive who who work certainly by is to sense suppose most speak who less for and attend. field that of the and if in all the opposition and the for program have. those saying compliance hearings opportunity it ankle I may our not day to are the are less to and achieves attractive of around be watch of do the who moving is on an obstacle all the to the throughout requirements monitoring, communities whatever in understand people requirements of importantly, It It make is required most offices in monitor. it monitoring might people that politically. for have kind less cumbersome. their weight. who or they the sure be, is the folks resources It hearings have to in government of ensuring

Jordon Hymowitz

watch the from a that push from or the districts you got regions that in any for different me progressive Let smart maybe you little municipalities a ankle not any Have some interest monitoring? gotten have way. Then or little ways? more

Wayne Calabrese

outside the ISAP Again, agencies contract. Yes. of still early for it's days

with visited interest. the interested very watch. real the to action see policy the They of said in fit seeing of states, to Vera it expressed were believe, in one would Southeastern I and have it of one Recently, like them that of agencies their Some was use the in how they entertain goals.

Mark Suchinski

included contracts rebid I wanted offer that make to it just mentioned, bid, sure perspective, think that available. they but as some also a that's just Wayne have as within technology we those and also, we've a seen, was bids current was

seen, it existing earlier, we're renewed it Now but starting said contract, in see that just in some contracts they'll we as be how the develop to use seen were said, and remains that some Wayne as to much of we've recently.

Jordon Hymowitz

there done CR any do it mentioned As you this done as is done at necessary the history in or not at it, that XX% like the has CRs decrease behind was increase what CRS you existing have by the XX,XXX, existing that cancer of the level the resolutions are Or words, before? that keeps level. most a quantitative is the of other definition product, the a level data if but what of of for before as on the that been changing are any something opposed of data an ratio to

Mark Suchinski

CR by lower. of continuing Not not time. a same. levels definition existing It every resolution funding stays is higher, the

Operator

any Group I for the GEO to George back would closing Zoley, Chairman our to remarks. Mr. concludes like session. Executive This over turn of the question-and-answer conference

George Zoley

joining you quarter, addressing forward for this and next you the to look us Thank we in quarter.

Operator

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

The GEO Group, Inc. (GEO) 7 Aug 242024 Q2 Earnings call transcript