The GEO Group Reports Third Quarter 2021 Results
The GEO Group reported its financial results for Q3 and the first nine months of 2021, highlighting total revenues of $557.3 million for Q3, down from $579.1 million in Q3 2020. Net income attributable to GEO was $34.7 million, compared to $39.2 million a year earlier. For the first nine months, revenues totaled $1.70 billion, with net income at $127.2 million, up from $101.1 million in 2020. The company has successfully reduced net recourse debt by $175 million year-to-date and aims to maintain financial flexibility amidst ongoing challenges.
- Increased net income attributable to GEO for the first nine months of 2021, reaching $127.2 million compared to $101.1 million in 2020.
- Successful debt reduction of approximately $175 million, meeting 2021 reduction goals ahead of schedule.
- Expected revenues for Q4 2021 are projected between $554 million and $559 million, with net income anticipated between $40 million and $42 million.
- Total revenues for Q3 2021 decreased to $557.3 million from $579.1 million in Q3 2020.
- Adjusted Funds From Operations (AFFO) fell to $0.65 per diluted share in Q3 2021, down from $0.67 per diluted share in the prior year.
- Non-renewal of contracts with the Federal Bureau of Prisons expected to impact future revenues.
Third Quarter 2021 Highlights
-
Total revenues of
$557.3 million -
Net Income Attributable to GEO of
$34.7 million -
Adjusted Net Income of
$44.0 million -
Normalized Funds From Operations (“Normalized FFO”) of
$0.52 -
Adjusted Funds From Operations (“AFFO”) of
$0.65
We reported third quarter 2021 net income attributable to GEO of
We reported third quarter 2021 Normalized FFO of
First Nine Months 2021 Highlights
-
Total revenues of
$1.70 billion -
Net Income Attributable to GEO of
$127.2 million -
Adjusted Net Income of
$128.9 million -
Normalized FFO of
$1.54 -
AFFO of
$1.95
For the first nine months of 2021, we reported net income attributable to GEO of
For the first nine months of 2021, we reported Normalized FFO of
Balance Sheet and Liquidity
At the end of the third quarter 2021, we had approximately
During the first nine months of 2021, we reduced net recourse debt by approximately
Additionally, as has been previously disclosed, our Board of Directors is currently undertaking an evaluation of GEO's corporate tax structure as a Real Estate Investment Trust.
Updated 2021 Financial Guidance
We have updated our 2021 financial guidance for the fourth quarter and full year 2021. We expect Net Income Attributable to GEO for the fourth quarter 2021 to be between
For the full year 2021, we expect Net Income Attributable to GEO to be in a range of
Consistent with our previously disclosed expectations, our guidance reflects the non-renewal of our contracts with the
COVID-19 Information
As the COVID-19 pandemic has impacted communities across
During the pandemic, we have implemented mitigation initiatives to address the risks of COVID-19, consistent with the guidance issued for correctional and detention facilities 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, Net Operating Income, FFO, Normalized FFO, 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 2021, 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, 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/loss on extinguishment of debt, 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.
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, 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 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 M&A related expenses, pre-tax, loss on asset divestiture, pre-tax, gain on the extinguishment of debt, pre-tax, start-up expenses, 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 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 recurring 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, M&A related expenses, pre-tax, loss on asset divestiture, pre-tax, gain on the extinguishment of debt, pre-tax, start-up expenses, 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. Additionally, FFO, Normalized FFO and AFFO are widely recognized measures in our industry as a real estate investment trust.
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 fourth quarter of 2021 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 2021 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
Third quarter and first nine months of 2021 financial tables to follow:
Condensed Consolidated Balance Sheets*
(Unaudited)
| As of | As of | ||||
| (unaudited) | (unaudited) | ||||
| ASSETS | |||||
| Cash and cash equivalents | $ | 537,070 |
$ | 283,524 |
|
| Restricted cash and cash equivalents | 30,201 |
26,740 |
|||
| Accounts receivable, less allowance for doubtful accounts | 327,723 |
362,668 |
|||
| Contract receivable, current portion | 6,313 |
6,283 |
|||
| Prepaid expenses and other current assets | 31,682 |
32,108 |
|||
| Total current assets | $ | 932,989 |
$ | 711,323 |
|
| Restricted Cash and Investments | 60,732 |
37,338 |
|||
| Property and Equipment, Net | 2,055,406 |
2,122,195 |
|||
| Contract Receivable | 366,155 |
396,647 |
|||
| Operating Lease Right-of-Use Assets, Net | 118,073 |
124,727 |
|||
| Assets Held for Sale | 9,717 |
9,108 |
|||
| Deferred Income Tax Assets | 36,604 |
36,604 |
|||
| Intangible Assets, Net (including goodwill) | 928,016 |
942,997 |
|||
| Other Non-Current Assets | 81,104 |
79,187 |
|||
| Total Assets | $ | 4,588,796 |
$ | 4,460,126 |
|
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Accounts payable | $ | 67,411 |
$ | 85,861 |
|
| Accrued payroll and related taxes | 80,798 |
67,797 |
|||
| Accrued expenses and other current liabilities | 216,404 |
202,378 |
|||
| Operating lease liabilities, current portion | 28,982 |
29,080 |
|||
| Current portion of finance lease obligations, long-term debt, and non-recourse debt | 27,010 |
26,180 |
|||
| Total current liabilities | $ | 420,605 |
$ | 411,296 |
|
| Deferred Income Tax Liabilities | 30,726 |
30,726 |
|||
| Other Non-Current Liabilities | 95,789 |
115,555 |
|||
| Operating Lease Liabilities | 95,357 |
101,375 |
|||
| Finance Lease Liabilities | 2,147 |
2,988 |
|||
| Long-Term Debt | 2,629,010 |
2,561,881 |
|||
| Non-Recourse Debt | 297,456 |
324,223 |
|||
| Total Shareholders' Equity |
1,017,706 |
912,082 |
|||
| Total Liabilities and Shareholders' Equity | $ | 4,588,796 |
$ | 4,460,126 |
|
| * all figures in '000s |
Condensed Consolidated Statements of Operations*
(Unaudited)
| Q3 2021 | Q3 2020 | YTD 2021 | YTD 2020 | |||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||
| Revenues | $ | 557,277 |
$ | 579,136 |
$ | 1,699,073 |
$ | 1,771,982 |
||||
| Operating expenses | 399,900 |
434,131 |
1,233,060 |
1,339,912 |
||||||||
| Depreciation and amortization | 32,883 |
33,628 |
100,306 |
100,389 |
||||||||
| General and administrative expenses | 50,475 |
46,644 |
153,642 |
145,969 |
||||||||
| Operating income | 74,019 |
64,733 |
212,065 |
185,712 |
||||||||
| Interest income | 5,990 |
6,360 |
18,177 |
17,046 |
||||||||
| Interest expense | (32,525) |
(30,749) |
(96,422) |
(95,539) |
||||||||
| Gain on extinguishment of debt | - |
1,472 |
4,693 |
3,035 |
||||||||
| Loss on asset divestiture | (5,031) |
- |
(5,031) |
- |
||||||||
| Gain/(Loss) on dispositions of real estate | (1,057) |
(271) |
9,322 |
(1,151) |
||||||||
| Income before income taxes and equity in earnings of affiliates | 41,396 |
41,545 |
142,804 |
109,103 |
||||||||
| Provision for income taxes | 8,395 |
4,616 |
21,394 |
15,358 |
||||||||
| Equity in earnings of affiliates, net of income tax provision | 1,640 |
2,243 |
5,647 |
7,202 |
||||||||
| Net income | 34,641 |
39,172 |
127,057 |
100,947 |
||||||||
| Less: Net loss attributable to noncontrolling interests | 69 |
48 |
157 |
174 |
||||||||
| Net income attributable to |
$ | 34,710 |
$ | 39,220 |
$ | 127,214 |
$ | 101,121 |
||||
| Weighted Average Common Shares Outstanding: | ||||||||||||
| Basic | 120,525 |
119,826 |
120,326 |
119,677 |
||||||||
| Diluted | 120,872 |
120,032 |
120,583 |
119,964 |
||||||||
| Net income per Common Share Attributable to |
||||||||||||
| Basic: | ||||||||||||
| Net income per share — basic | $ | 0.24 |
$ | 0.33 |
$ | 0.94 |
$ | 0.84 |
||||
| Diluted: | ||||||||||||
| Net income per share — diluted | $ | 0.24 |
$ | 0.33 |
$ | 0.94 |
$ | 0.84 |
||||
| Regular Dividends Declared per Common Share | $ | - |
$ | 0.48 |
$ | 0.25 |
$ | 1.44 |
||||
* |
All figures in '000s, except per share data |
** |
Diluted earnings per share attributable to GEO available to common stockholders was calculated and presented in GEO’s unaudited financial statements under the two-class method for the nine months ended |
Reconciliation of Net Income Attributable to GEO to Adjusted Net Income
(In thousands, except per share data)(Unaudited)
| Q3 2021 | Q3 2020 | YTD 2021 | YTD 2020 | ||||||||||||||
| Net Income attributable to GEO | $ |
34,710 |
|
$ |
39,220 |
|
$ |
127,214 |
|
$ |
101,121 |
|
|||||
| Add: | |||||||||||||||||
| (Gain)/Loss on real estate assets, pre-tax |
|
1,057 |
|
|
271 |
|
|
(9,322 |
) |
|
1,151 |
|
|||||
| M&A related expenses, pre-tax |
|
3,977 |
|
|
- |
|
|
3,977 |
|
|
- |
|
|||||
| Loss on asset divestiture, pre-tax |
|
5,031 |
|
|
- |
|
|
5,031 |
|
|
- |
|
|||||
| One-time employee restructuring expenses, pre-tax |
|
- |
|
|
- |
|
|
7,459 |
|
|
- |
|
|||||
| Gain on extinguishment of debt, pre-tax |
|
- |
|
|
(1,472 |
) |
|
(4,693 |
) |
|
(3,035 |
) |
|||||
| Start-up expenses, pre-tax |
|
- |
|
|
1,907 |
|
|
- |
|
|
4,413 |
|
|||||
| COVID-19 expenses, pre-tax |
|
- |
|
|
2,635 |
|
|
- |
|
|
7,404 |
|
|||||
| Close-out expenses, pre-tax |
|
- |
|
|
1,674 |
|
|
- |
|
|
5,895 |
|
|||||
| Tax effect of adjustments to Net Income attributable to GEO |
|
(763 |
) |
|
142 |
|
|
(750 |
) |
|
(620 |
) |
|||||
| Adjusted Net Income | $ |
44,012 |
|
$ |
44,377 |
|
$ |
128,916 |
|
$ |
116,329 |
|
|||||
| Weighted average common shares outstanding - Diluted |
|
120,872 |
|
|
120,032 |
|
|
120,583 |
|
|
119,964 |
|
|||||
| Adjusted Net Income Per Diluted Share * | $ |
0.36 |
|
$ |
0.37 |
|
$ |
1.07 |
|
$ |
0.97 |
|
|||||
* |
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 Attributable to GEO to FFO, Normalized FFO, and AFFO*
(Unaudited)
| Q3 2021 | Q3 2020 | YTD 2021 | YTD 2020 | |||||||||||||
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||
| Net Income attributable to GEO | $ | 34,710 |
|
$ | 39,220 |
|
$ | 127,214 |
|
$ | 101,121 |
|
||||
| Add (Subtract): | ||||||||||||||||
| Real Estate Related Depreciation and Amortization | 18,825 |
|
18,359 |
|
56,643 |
|
55,139 |
|
||||||||
| (Gain)/Loss on real estate assets, pre-tax | 1,057 |
|
271 |
|
(9,322 |
) |
1,151 |
|
||||||||
| Equals: NAREIT defined FFO | $ | 54,592 |
|
$ | 57,850 |
|
$ | 174,535 |
|
$ | 157,411 |
|
||||
| Add (Subtract): | ||||||||||||||||
| Gain on extinguishment of debt, pre-tax | - |
|
(1,472 |
) |
(4,693 |
) |
(3,035 |
) |
||||||||
| Start-up expenses, pre-tax | - |
|
1,895 |
|
- |
|
4,401 |
|
||||||||
| M&A related expenses, pre-tax | 3,977 |
|
- |
|
3,977 |
|
- |
|
||||||||
| One-time employee restructuring expenses, pre-tax | - |
|
- |
|
7,459 |
|
- |
|
||||||||
| Loss on asset divestiture, pre-tax | 5,031 |
|
- |
|
5,031 |
|
- |
|
||||||||
| COVID-19 expenses, pre-tax | - |
|
2,635 |
|
- |
|
7,404 |
|
||||||||
| Close-out expenses, pre-tax | - |
|
1,715 |
|
- |
|
5,935 |
|
||||||||
| Tax effect of adjustments to funds from operations ** | (763 |
) |
142 |
|
(750 |
) |
(620 |
) |
||||||||
| Equals: FFO, normalized | $ | 62,837 |
|
$ | 62,765 |
|
$ | 185,559 |
|
$ | 171,496 |
|
||||
| Add (Subtract): | ||||||||||||||||
| Non-Real Estate Related Depreciation & Amortization | 14,058 |
|
15,269 |
|
43,663 |
|
45,250 |
|
||||||||
| Consolidated Maintenance Capital Expenditures | (3,447 |
) |
(3,878 |
) |
(11,957 |
) |
(15,045 |
) |
||||||||
| Stock Based Compensation Expenses | 4,329 |
|
4,689 |
|
15,755 |
|
19,163 |
|
||||||||
| Other non-cash revenue & expenses | (1,102 |
) |
- |
|
(3,306 |
) |
- |
|
||||||||
| Amortization of debt issuance costs, discount and/or premium and other non-cash interest | 1,974 |
|
1,776 |
|
5,559 |
|
5,153 |
|
||||||||
| Equals: AFFO | $ | 78,649 |
|
$ | 80,621 |
|
$ | 235,273 |
|
$ | 226,017 |
|
||||
| Weighted average common shares outstanding - Diluted | 120,872 |
|
120,032 |
|
120,583 |
|
119,964 |
|
||||||||
| FFO/AFFO per Share - Diluted | ||||||||||||||||
| Normalized FFO Per Diluted Share | $ | 0.52 |
|
$ | 0.52 |
|
$ | 1.54 |
|
$ | 1.43 |
|
||||
| AFFO Per Diluted Share | $ | 0.65 |
|
$ | 0.67 |
|
$ | 1.95 |
|
$ | 1.88 |
|
||||
| Regular Common Stock Dividends per common share | $ | - |
|
$ | 0.48 |
|
$ | 0.25 |
|
$ | 1.44 |
|
||||
* |
all figures in '000s, except per share data |
** |
tax adjustments related to gain/loss on real estate assets, gain on extinguishment of debt, start-up expenses, M&A related expenses, one-time employee restructuring expenses, loss on asset divestiture, COVID-19 expenses, and close-out expenses. |
Reconciliation of Net Income Attributable to GEO to
Net Operating Income, EBITDAre and Adjusted EBITDAre*
(Unaudited)
| Q3 2021 | Q3 2020 | YTD 2021 | YTD 2020 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Net Income attributable to GEO | $ | 34,710 |
|
$ | 39,220 |
|
$ | 127,214 |
|
$ | 101,121 |
|
||||
| Less | ||||||||||||||||
| Net loss attributable to noncontrolling interests | 69 |
|
48 |
|
157 |
|
174 |
|
||||||||
| Net Income | $ | 34,641 |
|
$ | 39,172 |
|
$ | 127,057 |
|
$ | 100,947 |
|
||||
| Add (Subtract): | ||||||||||||||||
| Equity in earnings of affiliates, net of income tax provision | (1,640 |
) |
(2,243 |
) |
(5,647 |
) |
(7,202 |
) |
||||||||
| Income tax provision | 8,395 |
|
4,616 |
|
21,394 |
|
15,358 |
|
||||||||
| Interest expense, net of interest income | 26,535 |
|
24,389 |
|
78,245 |
|
78,493 |
|
||||||||
| Gain on extinguishment of debt | - |
|
(1,472 |
) |
(4,693 |
) |
(3,035 |
) |
||||||||
| Depreciation and amortization | 32,883 |
|
33,628 |
|
100,306 |
|
100,389 |
|
||||||||
| General and administrative expenses | 50,475 |
|
46,644 |
|
153,642 |
|
145,969 |
|
||||||||
| Net Operating Income, net of operating lease obligations | $ | 151,289 |
|
$ | 144,734 |
|
$ | 470,304 |
|
$ | 430,918 |
|
||||
| Add: | ||||||||||||||||
| Operating lease expense, real estate | 4,054 |
|
4,510 |
|
12,379 |
|
14,254 |
|
||||||||
| (Gain)/Loss on real estate assets, pre-tax | 1,057 |
|
271 |
|
(9,322 |
) |
1,151 |
|
||||||||
| Start-up expenses, pre-tax | - |
|
1,895 |
|
- |
|
4,401 |
|
||||||||
| Net Operating Income (NOI) | $ | 156,400 |
|
$ | 151,410 |
|
$ | 473,361 |
|
$ | 450,725 |
|
||||
| Q3 2021 | Q3 2020 | YTD 2021 | YTD 2020 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Net Income | $ | 34,641 |
|
$ | 39,172 |
|
$ | 127,057 |
|
$ | 100,947 |
|
||||
| Add (Subtract): | ||||||||||||||||
| Income tax provision ** | 8,612 |
|
5,122 |
|
22,242 |
|
16,792 |
|
||||||||
| Interest expense, net of interest income *** | 26,535 |
|
22,917 |
|
73,552 |
|
75,458 |
|
||||||||
| Depreciation and amortization | 32,883 |
|
33,628 |
|
100,306 |
|
100,389 |
|
||||||||
| (Gain)/Loss on real estate assets, pre-tax | 1,057 |
|
271 |
|
(9,322 |
) |
1,151 |
|
||||||||
| EBITDAre | $ | 103,728 |
|
$ | 101,110 |
|
$ | 313,835 |
|
$ | 294,737 |
|
||||
| Add (Subtract): | ||||||||||||||||
| Net loss attributable to noncontrolling interests | 69 |
|
48 |
|
157 |
|
174 |
|
||||||||
| Stock based compensation expenses, pre-tax | 4,329 |
|
4,689 |
|
15,755 |
|
19,163 |
|
||||||||
| Start-up expenses, pre-tax | - |
|
1,895 |
|
- |
|
4,401 |
|
||||||||
| M&A related expenses, pre-tax | 3,977 |
|
- |
|
3,977 |
|
- |
|
||||||||
| One-time employee restructuring expenses, pre-tax | - |
|
- |
|
7,459 |
|
- |
|
||||||||
| Loss on asset divestiture, pre-tax | 5,031 |
|
- |
|
5,031 |
|
- |
|
||||||||
| COVID-19 expenses, pre-tax | - |
|
2,635 |
|
- |
|
7,404 |
|
||||||||
| Close-out expenses, pre-tax | - |
|
1,715 |
|
- |
|
5,935 |
|
||||||||
| Other non-cash revenue & expenses, pre-tax | (1,102 |
) |
- |
|
(3,306 |
) |
- |
|
||||||||
| Adjusted EBITDAre | $ | 116,032 |
|
$ | 112,092 |
|
$ | 342,908 |
|
$ | 331,815 |
|
||||
| * | all figures in '000s | |||||||||||||||
| ** | including income tax provision on equity in earnings of affiliates | |||||||||||||||
| *** | includes (gain)/loss on extinguishment of debt | |||||||||||||||
2021 Outlook/Reconciliation
(In thousands, except per share data)
(Unaudited)
| FY 2021 | ||||||||
| Net Income Attributable to GEO | $ |
165,500 |
|
to |
$ |
168,000 |
|
|
| Real Estate Related Depreciation and Amortization |
|
75,000 |
|
|
75,000 |
|
||
| (Gain)/Loss on Real Estate |
|
(9,000 |
) |
|
(9,000 |
) |
||
| Funds from Operations (FFO) | $ |
231,500 |
|
to |
$ |
234,000 |
|
|
| (Gain)/Loss on Extinguishment of Debt |
|
(5,000 |
) |
|
(5,000 |
) |
||
| Non-recurring Expenses |
|
20,000 |
|
|
20,000 |
|
||
| Normalized Funds from Operations | $ |
246,500 |
|
to |
$ |
249,000 |
|
|
| Non-Real Estate Related Depreciation and Amortization |
|
58,000 |
|
|
58,000 |
|
||
| Consolidated Maintenance Capex |
|
(15,000 |
) |
|
(15,000 |
) |
||
| Non-Cash Stock Based Compensation |
|
19,500 |
|
|
19,500 |
|
||
| Non-Cash Interest Expense |
|
7,500 |
|
|
7,500 |
|
||
| Other Non-Cash Revenue & Expenses |
|
(4,000 |
) |
|
(4,000 |
) |
||
| Adjusted Funds From Operations (AFFO) | $ |
312,500 |
|
to |
$ |
315,000 |
|
|
| Net Interest Expense |
|
104,000 |
|
|
104,000 |
|
||
| Non-Cash Interest Expense |
|
(7,500 |
) |
|
(7,500 |
) |
||
| Consolidated Maintenance Capex |
|
15,000 |
|
|
15,000 |
|
||
| Income Taxes (including income tax provision on equity in earnings of affiliates) |
|
27,500 |
|
|
28,500 |
|
||
| Adjusted EBITDAre | $ |
451,500 |
|
to |
$ |
455,000 |
|
|
| G&A Expenses |
|
198,000 |
|
|
198,000 |
|
||
| Non-recurring Expenses |
|
(20,000 |
) |
|
(20,000 |
) |
||
| Non-Cash Stock Based Compensation |
|
(19,500 |
) |
|
(19,500 |
) |
||
| Equity in Earnings of Affiliates |
|
(7,000 |
) |
|
(7,000 |
) |
||
| Real Estate Related Operating Lease Expense |
|
19,000 |
|
|
19,000 |
|
||
| Net Operating Income | $ |
622,000 |
|
to |
$ |
625,500 |
|
|
| Adjusted Net Income Per Diluted Share* | $ |
1.41 |
|
$ |
1.43 |
|
||
| AFFO Per Diluted Share | $ |
2.57 |
|
to |
$ |
2.59 |
|
|
| Weighted Average Common Shares Outstanding-Diluted |
|
121,500 |
|
to |
|
121,500 |
|
|
* |
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/20211104005349/en/
Executive Vice President, Corporate Relations
Source:
FAQ
What were GEO's total revenues for Q3 2021?
How much did GEO reduce its net recourse debt in 2021?
What is GEO's expected net income for Q4 2021?
How does GEO's net income for the first nine months of 2021 compare to 2020?
What are GEO's expected revenues for the full year 2021?
