BOCA RATON, Fla.--(BUSINESS WIRE)--The GEO Group (NYSE: GEO) (“GEO”) announced today that Karnes County, Texas (the “County”) has been awarded an Intergovernmental Services Agreement by U.S. Immigration and Customs Enforcement (“ICE”) for the housing of up to 600 immigration detainees in a new 600-bed Civil Detention Center to be located in Karnes City, Texas (the “Facility”). The Center, which will be developed and operated by GEO pursuant to a subcontract between the County and GEO, will be the first facility designed and operated for low risk detainees.
GEO will finance, develop and manage the $32.0 million company-owned Facility, which is expected to be completed during the fourth quarter of 2011. GEO’s management contract with the County is expected to generate approximately $15.0 million in annualized revenues.
George C. Zoley, Chairman and Chief Executive Officer of GEO, said, “We appreciate the confidence placed in our company by Karnes County and U.S. Immigration and Customs Enforcement. This important project will be the first Civil Detention Center for immigration detainees in the United States. We look forward to this new public-private partnership with Karnes County and U.S. Immigration and Customs Enforcement.”
The GEO Group is a world leader in the delivery of correctional, detention, and residential treatment services to federal, state, and local government agencies around the globe. GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO represents government clients in the United States, Australia, South Africa, and the United Kingdom. GEO’s worldwide operations include the management and/or ownership of approximately 80,600 beds at 118 correctional, detention and residential treatment facilities, including projects under development.
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.