Geo Group Inc - GEO STOCK NEWS

The GEO Group announced the end of its contract with the Oklahoma Department of Corrections for the 2,600-bed Lawton Correctional and Rehabilitation Facility, effective June 30, 2024, unless extended for three months. GEO cited challenges due to wage inflation and staffing shortages exacerbated by the COVID-19 pandemic and the veto of approved funding by the Oklahoma State Legislature.

Despite long-standing partnerships since 1998 and significant investments in reducing prison overcrowding and lowering recidivism, GEO stated it could no longer manage the facility without revised financial terms. The discontinuation is not expected to impact GEO's financial guidance.

Additionally, GEO issued a default notice to Oklahoma for $3 million in damages to the Great Plains Correctional Facility, seeking repairs within 30 days.

The GEO Group announced the appointment of Mark J. Suchinski as Senior Vice President and Chief Financial Officer, effective July 8, 2024. Suchinski brings extensive experience from his previous roles at Spirit AeroSystems and Home Products International. His background includes corporate finance, financial reporting, and manufacturing management. GEO's leadership expressed confidence in Suchinski's skills and experience to drive value creation for the company and its shareholders.

The GEO Group (NYSE: GEO) announced that U.S. Immigration and Customs Enforcement (ICE) plans to issue a task order for continued funding of the GEO-owned 1,940-bed Adelanto ICE Processing Center in California through September 30, 2024. GEO previously filed motions with the U.S. District Court and the U.S. Court of Appeals to vacate several injunction orders, including a COVID-19-related intake prohibition. These legal actions are supported by three unions representing over 350 employees at the Adelanto Center. The contract, initially set on December 19, 2019, spans 15 years and generates about $85 million annually for GEO.

The GEO Group, Inc. reported total revenues of $605.7 million, net income of $22.7 million, and Adjusted EBITDA of $117.6 million for the first quarter of 2024. Despite a decrease in net income and total revenues compared to the first quarter of 2023, the company's diversified business units showed strong operational and financial performance. GEO successfully refinanced its debt, reducing its average cost of debt and enhancing flexibility. The company updated its financial guidance for 2024, projecting a net income range of $55 million to $75 million on annual revenues of approximately $2.4 billion. Recent developments include a five-year contract awarded to GEO Transport, Inc. to provide air operations support services for U.S. Immigration and Customs Enforcement, generating approximately $25 million in annualized revenues. Debt refinancing activities resulted in net proceeds of approximately $1.67 billion, providing GEO with opportunities to strengthen its financial position.

The GEO Group, Inc. (NYSE:GEO) has announced the date for its first quarter 2024 earnings release and conference call. The financial results will be released on Tuesday, May 7, 2024, before the market opens, with a conference call at 11:00 AM (Eastern Time) on the same day. The call will be hosted by key executives of GEO, including the Executive Chairman, CEO, CFO, President, and other senior officials. Participants can join the call through designated numbers or access a live webcast on GEO's investor relations home page. Both webcast and telephonic replays will be available for a specified period.

The GEO Group has closed a senior notes offering and a new term loan, raising approximately $1.67 billion in net proceeds. The offering included $1.275 billion in senior notes and a $450 million term loan. GEO plans to use the proceeds to refinance existing debt, including various loans and notes, and for general corporate purposes.

The GEO Group (GEO) has entered into private exchange agreements with certain Noteholders to exchange $177 million in 6.50% Exchangeable Senior Notes for a total estimated valuation of $305 million, consisting of cash and common stock. The exchange value will be determined based on the stock's average price over 20 trading days. GEO plans to fund the cash portion with proceeds from a recent notes offering. Approximately 77% of the outstanding notes will be exchanged, leaving $53 million remaining.

The GEO Group (GEO) has priced a private offering of $1.275 billion aggregate principal amount of senior notes, including Secured Notes and Unsecured Notes. The company also priced a new $450.0 million Term Loan, expected to result in net proceeds of approximately $1.67 billion. The funds will be used to refinance existing indebtedness and for other corporate purposes.

The GEO Group (GEO) plans to issue $1.2 billion in senior notes to refinance existing debt, with proceeds used for various corporate purposes. The offering is exempt from registration requirements and targets qualified institutional buyers in the US and non-US persons.