The GEO Group Reports Fourth Quarter and Full Year 2021 Results
The GEO Group reported a net loss of $49.8 million or ($0.41) per diluted share for Q4 2021, influenced by a $70.8 million one-time tax charge. Total revenues amounted to $557.5 million, a decline from $578.1 million year-over-year. Despite this, Adjusted Net Income rose to $45.5 million, or $0.38 per diluted share, up from $39.3 million in Q4 2020. For 2021, total revenues were $2.26 billion, down from $2.35 billion in 2020. The company expects 2022 revenues of approximately $2.17 billion, with net income in the range of $0.99 to $1.07 per diluted share.
- Adjusted Net Income for Q4 2021 rose to $45.5 million compared to $39.3 million in Q4 2020.
- Adjusted EBITDAre for Q4 2021 increased to $124.1 million from $108.0 million in Q4 2020.
- AFFO for Q4 2021 improved to $78.4 million, or $0.65 per diluted share, compared to $74.6 million, or $0.62 per diluted share, in Q4 2020.
- Net loss of $49.8 million in Q4 2021, versus net income of $11.9 million in Q4 2020.
- Total revenues decreased to $557.5 million in Q4 2021 from $578.1 million in Q4 2020.
- Full-year 2021 net income fell to $77.4 million from $113.0 million in 2020.
Fourth Quarter 2021 Highlights
-
Total revenues of
$557.5 million -
Net Loss Attributable to GEO of
$49.8 million $0.41 -
Adjusted Net Income of
$45.5 million $0.38 -
Adjusted EBITDAre of
$124.1 million -
Adjusted Funds From Operations (“AFFO”) of
$0.65
As a result of the previously announced change in GEO’s corporate tax structure from a Real Estate Investment Trust to a taxable C corporation, effective for the fiscal year ended
Due to the tax related corporate restructuring items, we reported a fourth quarter 2021 net loss attributable to GEO of
Fourth quarter 2021 results also reflect a
We reported fourth quarter 2021 Adjusted EBITDAre of
Full Year 2021 Highlights
-
Total revenues of
$2.26 billion -
Net Income Attributable to GEO of
$77.4 million $0.58 -
Adjusted Net Income of
$159.2 million $1.32 -
Adjusted EBITDAre of
$467.0 million -
AFFO of
$2.48
For the full year 2021, we reported net income attributable to GEO of
Results for the full year 2021 reflect a one-time, non-cash deferred tax charge of
For the full year 2021, we reported Adjusted EBITDAre of
Balance Sheet and Liquidity
At the end of 2021, we had approximately
We are continuing to examine our options to address our funded recourse debt, including our nearer term maturities which encompass our 2023 and 2024 senior unsecured notes and our senior credit facility, which may include, subject to market conditions, additional capital markets transactions, repurchases, redemptions, exchanges, or other refinancing of our existing debt, and/or evaluating the potential sale of additional company-owned assets and businesses. Between January of 2021 and February of 2022, we have entered into contracts for or have completed eight sales transactions with combined proceeds of approximately
2022 Financial Guidance
We have issued our initial financial guidance for 2022. We expect full year Net Income Attributable to GEO and Adjusted Net Income both to be in a range of
For the first quarter 2022, we expect Net Income Attributable to GEO and Adjusted Net Income both to be between
Our 2022 guidance reflects the normalization of the non-renewal of seven
Our guidance also reflects higher operating expenses, primarily related to wage increases and bonuses for our facility staff. Our guidance also reflects a higher effective corporate income tax rate, which we expect to be approximately 29 percent, as result of our transition to a taxable C corporation.
Finally, as previously disclosed, we are engaged in discussions with our banks and the advisors of ad-hoc groups representing our term loan lenders and bondholders to amend and extend our senior credit facility and our 2023, 2024, and 2026 senior unsecured notes. We will update our financial guidance accordingly if we are able to complete a transaction to reflect the expected increase in interest expense. For each one percent increase in our weighted average cost of debt, our interest expense would increase by approximately
COVID-19 Information
As the COVID-19 pandemic has impacted communities across
We will continue to evaluate and refine the steps we have taken as appropriate and necessary based on updated guidance by the
Conference Call Information
We have scheduled a conference call and simultaneous webcast for today at
About
Reconciliation Tables and Supplemental Information
GEO has made available Supplemental Information which contains reconciliation tables of Net Income Attributable to GEO to Net Operating Income, Net Income to EBITDAre (EBITDA for real estate) and Adjusted EBITDAre (Adjusted EBITDA for real estate), and Net Income Attributable to GEO to FFO, Normalized FFO and Adjusted FFO, along with supplemental financial and operational information on GEO’s business and other important operating metrics, and in this press release, Net Income Attributable to GEO to Adjusted Net Income. The reconciliation tables are also presented herein. Please see the section below titled “Note to Reconciliation Tables and Supplemental Disclosure - Important Information on GEO’s Non-GAAP Financial Measures” for information on how GEO defines these supplemental Non-GAAP financial measures and reconciles them to the most directly comparable GAAP measures. GEO’s Reconciliation Tables can be found herein and in GEO’s Supplemental Information available on GEO’s investor webpage at investors.geogroup.com.
Note to Reconciliation Tables and Supplemental Disclosure –
Important Information on GEO's Non-GAAP Financial Measures
Net Operating Income, EBITDAre, Adjusted EBITDAre, Funds from Operations, Normalized Funds from Operations, Adjusted Funds from Operations, and Adjusted Net Income are non-GAAP financial measures that are presented as supplemental disclosures. GEO has presented herein certain forward-looking statements about GEO's future financial performance that include non-GAAP financial measures, including Adjusted EBITDAre, Adjusted Net Income, and AFFO.
The determination of the amounts that are included or excluded from these non-GAAP financial measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period. While we have provided a high level reconciliation for the guidance ranges for full year 2022, we are unable to present a more detailed quantitative reconciliation of the forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because management cannot reliably predict all of the necessary components of such GAAP measures. The quantitative reconciliation of the forward-looking non-GAAP financial measures will be provided for completed annual and quarterly periods, as applicable, calculated in a consistent manner with the quantitative reconciliation of non-GAAP financial measures previously reported for completed annual and quarterly periods.
Net Operating Income is defined as revenues less operating expenses, excluding depreciation and amortization expense, general and administrative expenses, real estate related operating lease expense, gain/loss on real estate assets, pre-tax, and start-up expenses, pre-tax. Net Operating Income is calculated as net income adjusted by subtracting equity in earnings of affiliates, net of income tax provision, and by adding income tax provision, interest expense, net of interest income, gain on extinguishment of debt, depreciation and amortization expense, goodwill impairment charge, general and administrative expenses, real estate related operating lease expense, gain/loss on real estate assets, pre-tax, and start-up expenses, pre-tax.
EBITDAre (EBITDA for real estate) is defined as net income adjusted by adding provisions for income tax, interest expense, net of interest income, depreciation and amortization, goodwill impairment charge, pre-tax, and gain/loss on real estate assets, pre-tax. Adjusted EBITDAre (Adjusted EBITDA for real estate) is defined as EBITDAre adjusted for net loss attributable to non-controlling interests, stock-based compensation expenses, pre-tax, and certain other adjustments as defined from time to time, including for the periods presented M&A related expenses, pre-tax, loss and settlement on asset divestiture, pre-tax, one-time employee restructuring expenses, pre-tax, start-up expenses, pre-tax, COVID-19 expenses, pre-tax, close-out expenses, pre-tax, and other non-cash revenue and expense, pre-tax.
Given the nature of our business as a real estate owner and operator, we believe that EBITDAre and Adjusted EBITDAre are helpful to investors as measures of our operational performance because they provide an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We believe that by removing the impact of our asset base (primarily depreciation and amortization) and excluding certain non-cash charges, amounts spent on interest and taxes, and certain other charges that are highly variable from year to year, EBITDAre and Adjusted EBITDAre provide our investors with performance measures that reflect the impact to operations from trends in occupancy rates, per diem rates and operating costs, providing a perspective not immediately apparent from net income attributable to GEO.
The adjustments we make to derive the non-GAAP measures of EBITDAre and Adjusted EBITDAre exclude items which may cause short-term fluctuations in income from continuing operations and which we do not consider to be the fundamental attributes or primary drivers of our business plan and they do not affect our overall long-term operating performance. EBITDAre and Adjusted EBITDAre provide disclosure on the same basis as that used by our management and provide consistency in our financial reporting, facilitate internal and external comparisons of our historical operating performance and our business units and provide continuity to investors for comparability purposes.
Funds From Operations, or FFO, is defined in accordance with standards established by the
Normalized Funds from Operations, or Normalized FFO, is defined as FFO adjusted for certain items which by their nature are not comparable from period to period or that tend to obscure GEO’s actual operating performance, including for the periods presented goodwill impairment charge, pre-tax, start-up expenses, pre-tax, M&A related expenses, pre-tax, loss and settlement on asset divestiture, pre-tax, gain on the extinguishment of debt, pre-tax, one-time employee restructuring expenses, pre-tax, COVID-19 expenses, pre-tax, close-out expenses, pre-tax, change in tax structure to C corporation, and tax effect of adjustments to FFO. Adjusted Funds From Operations, or AFFO, is defined as Normalized FFO adjusted by adding non-cash expenses such as non-real estate related depreciation and amortization, stock based compensation expense, the amortization of debt issuance costs, discount and/or premium and other non-cash interest, and by subtracting consolidated maintenance capital expenditures and other non-cash revenue and expenses.
Adjusted Net Income is defined as Net Income Attributable to GEO adjusted for certain items which by their nature are not comparable from period to period or that tend to obscure GEO’s actual operating performance, including for the periods presented gain/loss on real estate assets, pre-tax, goodwill impairment charge, pre-tax, start-up expenses, pre-tax, M&A related expenses, pre-tax, loss and settlement on asset divestiture, pre-tax, change in tax structure to C corporation, gain on the extinguishment of debt, pre-tax, one-time employee restructuring expenses, pre-tax, COVID-19 expenses, pre-tax, close-out expenses, pre-tax, and tax effect of adjustments to Net Income Attributable to GEO.
Because of the unique design, structure and use of our
Because FFO, Normalized FFO and AFFO exclude depreciation and amortization unique to real estate as well as non-operational items and certain other charges that are highly variable from year to year, they provide our investors with performance measures that reflect the impact to operations from trends in occupancy rates, per diem rates, operating costs, and interest costs, providing a perspective not immediately apparent from Net Income Attributable to GEO. We believe the presentation of FFO, Normalized FFO and AFFO provide useful information to investors as they provide an indication of our ability to fund capital expenditures and expand our business. FFO, Normalized FFO and AFFO provide disclosure on the same basis as that used by our management and provide consistency in our financial reporting, facilitate internal and external comparisons of our historical operating performance and our business units and provide continuity to investors for comparability purposes.
Safe-Harbor Statement
This press release contains forward-looking statements regarding future events and future performance of GEO that involve risks and uncertainties that could materially and adversely affect actual results, including statements regarding GEO’s financial guidance for the full year and first quarter of 2022 and GEO’s proposed steps to address its future debt maturities. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” or “continue” or the negative of such words and similar expressions. Risks and uncertainties that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to: (1) GEO’s ability to meet its financial guidance for 2022 given the various risks to which its business is exposed; (2) GEO’s ability to deleverage and repay, refinance or otherwise address its debt maturities in an amount or on the timeline it expects, or at all; (3) GEO’s ability to identify and successfully complete any potential sales of additional company-owned assets and businesses on commercially advantageous terms on a timely basis, or at all; (4) changes in federal and state government policy, orders, directives, legislation and regulations that affect public-private partnerships with respect to secure, correctional and detention facilities, processing centers and reentry centers, including the timing and scope of implementation of
Fourth quarter and full year 2021 financial tables to follow:
| Condensed Consolidated Balance Sheets* | ||||||
(Unaudited) |
||||||
| As of | As of | |||||
| (unaudited) | (unaudited) | |||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 506,491 |
$ | 283,524 |
||
| Restricted cash and cash equivalents | 20,161 |
26,740 |
||||
| Accounts receivable, less allowance for doubtful accounts | 365,573 |
362,668 |
||||
| Contract receivable, current portion | 6,507 |
6,283 |
||||
| Prepaid expenses and other current assets | 45,176 |
32,108 |
||||
| Total current assets | $ | 943,908 |
$ | 711,323 |
||
| Restricted Cash and Investments | 76,158 |
37,338 |
||||
| Property and Equipment, Net | 2,037,845 |
2,122,195 |
||||
| Contract Receivable | 367,071 |
396,647 |
||||
| Operating Lease Right-of-Use Assets, Net | 112,187 |
124,727 |
||||
| Assets Held for Sale | 7,877 |
9,108 |
||||
| Deferred Income Tax Assets | - |
36,604 |
||||
| Intangible Assets, Net (including goodwill) | 921,349 |
942,997 |
||||
| Other Non-Current Assets | 71,013 |
79,187 |
||||
| Total Assets | $ | 4,537,408 |
$ | 4,460,126 |
||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Accounts payable | $ | 64,073 |
$ | 85,861 |
||
| Accrued payroll and related taxes | 67,210 |
67,797 |
||||
| Accrued expenses and other current liabilities | 200,712 |
202,378 |
||||
| Operating lease liabilities, current portion | 28,279 |
29,080 |
||||
| Current portion of finance lease obligations, long-term debt, and non-recourse debt | 18,568 |
26,180 |
||||
| Total current liabilities | $ | 378,842 |
$ | 411,296 |
||
| Deferred Income Tax Liabilities | 80,768 |
30,726 |
||||
| Other Non-Current Liabilities | 87,073 |
115,555 |
||||
| Operating Lease Liabilities | 89,917 |
101,375 |
||||
| Finance Lease Liabilities | 1,977 |
2,988 |
||||
| Long-Term Debt | 2,625,959 |
2,561,881 |
||||
| Non-Recourse Debt | 297,856 |
324,223 |
||||
| Total Shareholders' Equity | 975,016 |
912,082 |
||||
| Total Liabilities and Shareholders' Equity | $ | 4,537,408 |
$ | 4,460,126 |
||
| * all figures in '000s | ||||||
| Condensed Consolidated Statements of Operations* | ||||||||||||||||
(Unaudited) |
||||||||||||||||
| Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Revenues | $ | 557,539 |
|
$ | 578,116 |
|
$ | 2,256,612 |
|
$ | 2,350,098 |
|
||||
| Operating expenses | 395,986 |
|
431,584 |
|
1,629,046 |
|
1,771,495 |
|
||||||||
| Depreciation and amortization | 34,871 |
|
34,291 |
|
135,177 |
|
134,680 |
|
||||||||
| General and administrative expenses | 50,664 |
|
47,402 |
|
204,306 |
|
193,372 |
|
||||||||
- |
|
21,146 |
|
- |
|
21,146 |
|
|||||||||
| Operating income | 76,018 |
|
43,693 |
|
288,083 |
|
229,405 |
|
||||||||
| Interest income | 5,830 |
|
6,026 |
|
24,007 |
|
23,072 |
|
||||||||
| Interest expense | (33,038 |
) |
(31,300 |
) |
(129,460 |
) |
(126,837 |
) |
||||||||
| Gain on extinguishment of debt | - |
|
2,283 |
|
4,693 |
|
5,319 |
|
||||||||
| Net gain/(loss) on dispositions of assets | 1,209 |
|
(5,680 |
) |
5,499 |
|
(6,831 |
) |
||||||||
| Income before income taxes and equity in earnings of affiliates | 50,019 |
|
15,022 |
|
192,822 |
|
124,128 |
|
||||||||
| Provision for income taxes *** | 101,336 |
|
5,106 |
|
122,730 |
|
20,463 |
|
||||||||
| Equity in earnings of affiliates, net of income tax provision | 1,495 |
|
1,968 |
|
7,141 |
|
9,166 |
|
||||||||
| Net income/(loss) | (49,822 |
) |
11,884 |
|
77,233 |
|
112,831 |
|
||||||||
| Less: Net loss attributable to noncontrolling interests | 26 |
|
27 |
|
185 |
|
201 |
|
||||||||
| Net income/(loss) attributable to |
$ | (49,796 |
) |
$ | 11,911 |
|
$ | 77,418 |
|
$ | 113,032 |
|
||||
| Weighted Average Common Shares Outstanding: | ||||||||||||||||
| Basic | 120,553 |
|
119,844 |
|
120,384 |
|
119,719 |
|
||||||||
| Diluted ** | 120,553 |
|
120,105 |
|
120,732 |
|
119,991 |
|
||||||||
| Net income/(loss) per Common Share Attributable to |
||||||||||||||||
| Basic: | ||||||||||||||||
| Net income/(loss)per share — basic | $ | (0.41 |
) |
$ | 0.10 |
|
$ | 0.59 |
|
$ | 0.94 |
|
||||
| Diluted: | ||||||||||||||||
| Net income/(loss) per share — diluted | $ | (0.41 |
) |
$ | 0.10 |
|
$ | 0.58 |
|
$ | 0.94 |
|
||||
| Regular Dividends Declared per Common Share | $ | - |
|
$ | 0.34 |
|
$ | 0.25 |
|
$ | 1.78 |
|
||||
| * All figures in '000s, except per share data | ||||||||||||||||
| ** Q4 2021 basic and diluted weighted common shares outstanding are the same because the Company generated a net loss available to common stockholders and common stock equivalents are excluded from diluted net loss per share as they have an antidilutive impact. | ||||||||||||||||
| *** As a result of GEO’s restructuring to a taxable |
||||||||||||||||
In accordance with GAAP, diluted earnings per share attributable to GEO available to common stockholders is calculated under the if-converted method or the two-class method, whichever calculation results in the lowest diluted earnings per share amount, which may be lower than Adjusted Net Income Per Diluted Share.
| Reconciliation of Net Income/(Loss) Attributable to GEO to Adjusted Net Income | |||||||||||||||||
(In thousands, except per share data)(Unaudited) |
|||||||||||||||||
| Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | ||||||||||||||
| Net Income (Loss) attributable to GEO | $ |
(49,796 |
) |
$ |
11,911 |
|
$ |
77,418 |
|
$ |
113,032 |
|
|||||
| Add: | |||||||||||||||||
| (Gain)/Loss on real estate assets, pre-tax |
|
(735 |
) |
|
5,680 |
|
|
(10,056 |
) |
|
6,831 |
|
|||||
| M&A related expenses, pre-tax |
|
4,141 |
|
|
- |
|
|
8,118 |
|
|
- |
|
|||||
| Loss and settlement on asset divestiture, pre-tax |
|
1,302 |
|
|
- |
|
|
6,333 |
|
|
- |
|
|||||
| Change in tax structure to |
|
87,611 |
|
|
- |
|
|
70,813 |
|
|
- |
|
|||||
| One-time employee restructuring expenses, pre-tax |
|
- |
|
|
- |
|
|
7,459 |
|
|
- |
|
|||||
| Start-up expenses, pre-tax |
|
2,242 |
|
|
- |
|
|
2,242 |
|
|
4,413 |
|
|||||
| Close-out expenses, pre-tax |
|
3,291 |
|
|
- |
|
|
3,291 |
|
|
5,895 |
|
|||||
| Gain on extinguishment of debt, pre-tax |
|
- |
|
|
(2,283 |
) |
|
(4,693 |
) |
|
(5,319 |
) |
|||||
| COVID-19 expenses, pre-tax |
|
- |
|
|
2,478 |
|
|
- |
|
|
9,883 |
|
|||||
|
- |
|
|
21,146 |
|
|
- |
|
|
21,146 |
|
||||||
| Tax effect of adjustments to Net Income attributable to GEO |
|
(2,575 |
) |
|
320 |
|
|
(1,722 |
) |
|
(300 |
) |
|||||
| Adjusted Net Income | $ |
45,481 |
|
$ |
39,252 |
|
$ |
159,203 |
|
$ |
155,581 |
|
|||||
| Weighted average common shares outstanding - Diluted |
|
120,553 |
|
|
120,105 |
|
|
120,732 |
|
|
119,991 |
|
|||||
| Adjusted Net Income Per Diluted Share | $ |
0.38 |
|
$ |
0.33 |
|
$ |
1.32 |
|
$ |
1.30 |
|
|||||
In accordance with GAAP, diluted earnings per share attributable to GEO available to common stockholders is calculated under the if-converted method or the two-class method, whichever calculation results in the lowest diluted earnings per share amount, which may be lower than Adjusted Net Income Per Diluted Share.
| Reconciliation of Net Income/(Loss) Attributable to GEO to FFO, Normalized FFO, and AFFO* | ||||||||||||||||
(Unaudited) |
||||||||||||||||
| Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Net Income/(Loss) attributable to GEO | $ | (49,796 |
) |
$ | 11,911 |
|
$ | 77,418 |
|
$ | 113,032 |
|
||||
| Add (Subtract): | ||||||||||||||||
| Real Estate Related Depreciation and Amortization | 18,978 |
|
18,520 |
|
75,622 |
|
73,659 |
|
||||||||
| (Gain)/Loss on real estate assets, pre-tax | (735 |
) |
5,680 |
|
(10,056 |
) |
6,831 |
|
||||||||
| Equals: NAREIT defined FFO | $ | (31,553 |
) |
$ | 36,111 |
|
$ | 142,984 |
|
$ | 193,522 |
|
||||
| Add (Subtract): | ||||||||||||||||
- |
|
21,146 |
|
- |
|
21,146 |
|
|||||||||
| Gain on extinguishment of debt, pre-tax | - |
|
(2,283 |
) |
(4,693 |
) |
(5,319 |
) |
||||||||
| Start-up expenses, pre-tax | 1,723 |
|
- |
|
1,723 |
|
4,401 |
|
||||||||
| M&A related expenses, pre-tax | 4,141 |
|
- |
|
8,118 |
|
- |
|
||||||||
| One-time employee restructuring expenses, pre-tax | - |
|
- |
|
7,459 |
|
- |
|
||||||||
| Loss & settelment on asset divestiture, pre-tax | 1,302 |
|
- |
|
6,333 |
|
- |
|
||||||||
| COVID-19 expenses, pre-tax | - |
|
2,478 |
|
- |
|
9,883 |
|
||||||||
| Close-out expenses, pre-tax | 1,475 |
|
- |
|
1,475 |
|
5,935 |
|
||||||||
| Change in tax structure to |
87,611 |
|
- |
|
70,813 |
|
- |
|
||||||||
| Tax effect of adjustments to funds from operations ** | (1,711 |
) |
320 |
|
(26 |
) |
(300 |
) |
||||||||
| Equals: FFO, normalized | $ | 62,988 |
|
$ | 57,772 |
|
$ | 234,186 |
|
$ | 229,268 |
|
||||
| Add (Subtract): | ||||||||||||||||
| Non-Real Estate Related Depreciation & Amortization | 15,893 |
|
15,771 |
|
59,555 |
|
61,021 |
|
||||||||
| Consolidated Maintenance Capital Expenditures | (4,812 |
) |
(4,684 |
) |
(16,769 |
) |
(19,729 |
) |
||||||||
| Stock Based Compensation Expenses | 3,444 |
|
4,734 |
|
19,199 |
|
23,896 |
|
||||||||
| Other non-cash revenue & expenses | (1,102 |
) |
(735 |
) |
(4,408 |
) |
(735 |
) |
||||||||
| Amortization of debt issuance costs, discount and/or premium and other non-cash interest | 1,939 |
|
1,738 |
|
7,498 |
|
6,892 |
|
||||||||
| Equals: AFFO | $ | 78,350 |
|
$ | 74,596 |
|
$ | 299,261 |
|
$ | 300,613 |
|
||||
| Weighted average common shares outstanding - Diluted | 120,553 |
|
120,105 |
|
120,732 |
|
119,991 |
|
||||||||
| FFO/AFFO per Share - Diluted | ||||||||||||||||
| Normalized FFO Per Diluted Share | $ | 0.52 |
|
$ | 0.48 |
|
$ | 1.94 |
|
$ | 1.91 |
|
||||
| AFFO Per Diluted Share | $ | 0.65 |
|
$ | 0.62 |
|
$ | 2.48 |
|
$ | 2.51 |
|
||||
| Regular Common Stock Dividends per common share | $ | - |
|
$ | 0.34 |
|
$ | 0.25 |
|
$ | 1.78 |
|
||||
| * all figures in '000s, except per share data | ||||||||||||||||
| ** tax adjustments related to gain/loss on real estate assets, goodwill imapirment charge, gain on extinguishment of debt, start-up expenses, M&A related expenses, one-time employee restructuring expenses, loss & settelment on asset divestiture, COVID-19 expenses, and close-out expenses. | ||||||||||||||||
| Reconciliation of Net Income/(Loss) Attributable to GEO to | ||||||||||||||||
| Net Operating Income, EBITDAre and Adjusted EBITDAre* | ||||||||||||||||
(Unaudited) |
||||||||||||||||
| Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Net Income/(Loss) attributable to GEO | $ | (49,796 |
) |
$ | 11,911 |
|
$ | 77,418 |
|
$ | 113,032 |
|
||||
| Less | ||||||||||||||||
| Net loss attributable to noncontrolling interests | 26 |
|
27 |
|
185 |
|
201 |
|
||||||||
| Net Income/(Loss) | $ | (49,822 |
) |
$ | 11,884 |
|
$ | 77,233 |
|
$ | 112,831 |
|
||||
| Add (Subtract): | ||||||||||||||||
| Equity in earnings of affiliates, net of income tax provision | (1,495 |
) |
(1,968 |
) |
(7,141 |
) |
(9,166 |
) |
||||||||
| Income tax provision | 101,336 |
|
5,106 |
|
122,730 |
|
20,463 |
|
||||||||
| Interest expense, net of interest income | 27,208 |
|
25,274 |
|
105,453 |
|
103,765 |
|
||||||||
| Gain on extinguishment of debt | - |
|
(2,283 |
) |
(4,693 |
) |
(5,319 |
) |
||||||||
| Depreciation and amortization | 34,871 |
|
34,291 |
|
135,177 |
|
134,680 |
|
||||||||
- |
|
21,146 |
|
- |
|
21,146 |
|
|||||||||
| General and administrative expenses | 50,664 |
|
47,402 |
|
204,306 |
|
193,372 |
|
||||||||
| Net Operating Income, net of operating lease obligations | $ | 162,762 |
|
$ | 140,852 |
|
$ | 633,065 |
|
$ | 571,772 |
|
||||
| Add: | ||||||||||||||||
| Operating lease expense, real estate | 4,102 |
|
4,529 |
|
16,481 |
|
18,783 |
|
||||||||
| (Gain)/Loss on real estate assets, pre-tax | (735 |
) |
5,680 |
|
(10,056 |
) |
6,831 |
|
||||||||
| Start-up expenses, pre-tax | 1,723 |
|
- |
|
1,723 |
|
4,401 |
|
||||||||
| Net Operating Income (NOI) | $ | 167,852 |
|
$ | 151,061 |
|
$ | 641,213 |
|
$ | 601,787 |
|
||||
| Q4 2021 | Q4 2020 | FY 2021 | FY 2020 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Net Income/(Loss) | $ | (49,822 |
) |
$ | 11,884 |
|
$ | 77,233 |
|
$ | 112,831 |
|
||||
| Add (Subtract): | ||||||||||||||||
| Income tax provision ** | 101,523 |
|
5,455 |
|
123,766 |
|
22,247 |
|
||||||||
| Interest expense, net of interest income *** | 27,208 |
|
22,990 |
|
100,760 |
|
98,446 |
|
||||||||
| Depreciation and amortization | 34,871 |
|
34,291 |
|
135,177 |
|
134,680 |
|
||||||||
- |
|
21,146 |
|
- |
|
21,146 |
|
|||||||||
| (Gain)/Loss on real estate assets, pre-tax | (735 |
) |
5,680 |
|
(10,056 |
) |
6,831 |
|
||||||||
| EBITDAre | $ | 113,045 |
|
$ | 101,446 |
|
$ | 426,880 |
|
$ | 396,181 |
|
||||
| Add (Subtract): | ||||||||||||||||
| Net loss attributable to noncontrolling interests | 26 |
|
27 |
|
185 |
|
201 |
|
||||||||
| Stock based compensation expenses, pre-tax | 3,444 |
|
4,734 |
|
19,199 |
|
23,896 |
|
||||||||
| Start-up expenses, pre-tax | 1,723 |
|
- |
|
1,723 |
|
4,401 |
|
||||||||
| M&A related expenses, pre-tax | 4,141 |
|
- |
|
8,118 |
|
- |
|
||||||||
| One-time employee restructuring expenses, pre-tax | - |
|
- |
|
7,459 |
|
- |
|
||||||||
| Loss & settlement on asset divestiture, pre-tax | 1,302 |
|
- |
|
6,333 |
|
- |
|
||||||||
| COVID-19 expenses, pre-tax | - |
|
2,478 |
|
- |
|
9,883 |
|
||||||||
| Close-out expenses, pre-tax | 1,475 |
|
- |
|
1,475 |
|
5,935 |
|
||||||||
| Other non-cash revenue & expenses, pre-tax | (1,102 |
) |
(735 |
) |
(4,408 |
) |
(735 |
) |
||||||||
| Adjusted EBITDAre | $ | 124,054 |
|
$ | 107,950 |
|
$ | 466,964 |
|
$ | 439,762 |
|
||||
| * all figures in '000s | ||||||||||||||||
| ** including income tax provision on equity in earnings of affiliates | ||||||||||||||||
| *** includes (gain)/loss on extinguishment of debt | ||||||||||||||||
| 2022 Outlook/Reconciliation | ||||||||
| (In thousands, except per share data) | ||||||||
(Unaudited) |
||||||||
| FY 2022 | ||||||||
| Net Income Attributable to GEO | $ |
120,000 |
|
to | $ |
130,000 |
|
|
| Depreciation and Amortization |
|
136,000 |
|
|
136,000 |
|
||
| Consolidated Maintenance Capex |
|
(31,000 |
) |
|
(32,000 |
) |
||
| Non-Cash Stock Based Compensation |
|
17,000 |
|
|
17,000 |
|
||
| Non-Cash Interest Expense |
|
7,500 |
|
|
7,500 |
|
||
| Adjusted Funds From Operations (AFFO) | $ |
249,500 |
|
to | $ |
258,500 |
|
|
| Net Interest Expense |
|
104,000 |
|
|
106,000 |
|
||
| Non-Cash Interest Expense |
|
(7,500 |
) |
|
(7,500 |
) |
||
| Facility Maintenance Capex |
|
31,000 |
|
|
32,000 |
|
||
| Income Taxes (incl. income tax provision on equity in earnings of affiliates) |
|
45,000 |
|
|
49,000 |
|
||
| Adjusted EBITDA | $ |
422,000 |
|
to | $ |
438,000 |
|
|
| G&A Expenses |
|
187,000 |
|
|
189,000 |
|
||
| Net Income Attributable to GEO Per Diluted Share | $ |
0.99 |
|
to | $ |
1.07 |
|
|
| Adjusted Net Income Per Diluted Share | $ |
0.99 |
|
$ |
1.07 |
|
||
| AFFO Per Diluted Share | $ |
2.05 |
|
to | $ |
2.13 |
|
|
| Weighted Average Common Shares Outstanding-Diluted |
|
121,500 |
|
to |
|
121,500 |
|
|
| Capital Expenditures | ||||||||
| Growth | $ |
4,000 |
|
to | $ |
5,000 |
|
|
| Technology |
|
41,000 |
|
|
42,000 |
|
||
| Facility Maintenance |
|
31,000 |
|
|
32,000 |
|
||
| Total Capital Expenditures | $ |
76,000 |
|
to | $ |
79,000 |
|
|
In accordance with GAAP, diluted earnings per share attributable to GEO available to common stockholders is calculated under the if-converted method or the two-class method, whichever calculation results in the lowest diluted earnings per share amount, which may be lower than Adjusted Net Income Per Diluted Share.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220216006284/en/
Executive Vice President, Corporate Relations
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Source:
FAQ
What were GEO's Q4 2021 financial results?
How did GEO perform in full year 2021?
What is GEO's expected financial guidance for 2022?
What is GEO's Adjusted Net Income for Q4 2021?
What factors impacted GEO's fourth quarter results?
