The GEO Group Assumes Management of 3,854 Beds in Florida and Adds 400 Incremental Detention Beds in Texas
BOCA RATON, Fla.--(BUSINESS WIRE)--The GEO Group (NYSE:GEO) (“GEO”) announced today that it assumed management of the 985-bed Moore Haven Correctional Facility, the 985-bed Bay Correctional Facility, and the 1,884-bed Graceville Correctional Facility (the “Facilities”) under contracts with the Florida Department of Management Services effective February 1, 2014. The managed-only agreements have contract terms of three years, with successive two-year renewal option periods. The Facilities are expected to generate approximately $56 million in combined annualized revenues at full occupancy.
Additionally, GEO announced today that it has increased the contracted capacity at the company-owned Rio Grande Detention Center (the “Center”) in Laredo, Texas from 1,500 to 1,900 beds under a contract with the U.S. Marshals Service. The U.S. Marshals Services is expected to occupy up to 1,228 beds with the remaining 672 beds reserved for U.S. Immigration and Customs Enforcement. The 1,900-bed Center is expected to generate approximately $38 million in total annualized revenues.
George C. Zoley, Chairman and CEO of GEO, said, “We are pleased with the successful management transition of the Moore Haven, Bay, and Graceville Correctional Facilities, which play an important role in providing cost efficient correctional bed space in the state of Florida. We also appreciate the confidence placed in our company by U.S. Immigration and Customs Enforcement with the expanded use of our company-owned Rio Grande Detention Center, which has been delivering high quality, cost efficient services since 2008. We look forward to strengthening our long-standing public-private partnerships with Federal and State agencies across the country.”
The GEO Group, Inc. (NYSE: GEO) is the first fully integrated equity real estate investment trust specializing in the design, financing, development, and operation of correctional, detention, and community reentry facilities around the globe. GEO is the world's leading provider of diversified correctional, detention, community reentry, and electronic monitoring services to government agencies worldwide with operations in the United States, Australia, South Africa, and the United Kingdom. GEO's worldwide operations include the ownership and/or management of 98 facilities totaling approximately 77,000 beds, including projects under development, with a growing workforce of approximately 18,000 professionals.
This press release contains forward-looking statements regarding future events and future performance of GEO that involve risks and uncertainties that could materially affect actual results, including statements regarding estimated earnings, revenues and costs and our ability to maintain growth and strengthen contract relationships. Factors 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 successfully pursue further growth and continue to enhance shareholder value; (2) GEO’s ability to access the capital markets in the future on satisfactory terms or at all; (3) risks associated with GEO’s ability to control operating costs associated with contract start-ups; (4) GEO’s ability to timely open facilities as planned, profitably manage such facilities and successfully integrate such facilities into GEO’s operations without substantial costs; (5) GEO’s ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (6) GEO’s ability to obtain future financing on acceptable terms; (7) GEO’s ability to sustain company-wide occupancy rates at its facilities; and (8) other factors contained in GEO’s Securities and Exchange Commission filings, including the forms 10-K, 10-Q and 8-K reports.