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Geo (GEO)

The GEO Group (NYSE: GEO) is a fully integrated equity real estate investment trust specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO is a leading provider of enhanced in-custody rehabilitation, post-release support, electronic monitoring, and community-based programs. GEO's worldwide operations include the ownership and/or management of 123 facilities totaling approximately 93,000 beds, including projects under development, with a workforce of approximately 23,000 professionals.

Company profile

Ticker
GEO
Exchange
CEO
George Zoley
Employees
Incorporated
Location
Fiscal year end
Former names
WACKENHUT CORRECTIONS CORP
SEC CIK
Subsidiaries
B.I. Incorporated • CPT Operating Partnership L.P. • GEO Corrections Holdings, Inc. • GEO Secure Services, LLC • The GEO Group Australia • WBP Leasing, LLC ...
IRS number
650043078

GEO stock data

Calendar

7 Aug 22
9 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 636.79M 636.79M 636.79M 636.79M 636.79M 636.79M
Cash burn (monthly) 3.93M (no burn) (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 5.26M n/a n/a n/a n/a n/a
Cash remaining 631.53M n/a n/a n/a n/a n/a
Runway (months of cash) 160.6 n/a n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
10 Mar 22 James H. Black Common Stock Payment of exercise Dispose F No No 5.71 1,591 9.08K 9,373
10 Mar 22 Shayn P. March Common Stock Payment of exercise Dispose F No No 5.71 1,574 8.99K 59,279
10 Mar 22 Ronald A. Brack Common Stock Payment of exercise Dispose F No No 5.71 1,214 6.93K 59,583
8 Mar 22 George C Zoley Restricted Stock Sale back to company Dispose D No No 0 50,000 0 592,364
8 Mar 22 George C Zoley Common Stock Payment of exercise Dispose F No No 5.64 38,020 214.43K 3,058,600
8 Mar 22 George C Zoley Common Stock Grant Acquire A No No 0 46,620 0 3,096,620
83.7% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 193 205 -5.9%
Opened positions 25 37 -32.4%
Closed positions 37 35 +5.7%
Increased positions 56 54 +3.7%
Reduced positions 78 82 -4.9%
13F shares Current Prev Q Change
Total value 686.01M 795.83M -13.8%
Total shares 103.88M 102.72M +1.1%
Total puts 1.27M 1.94M -34.4%
Total calls 1.33M 3.04M -56.1%
Total put/call ratio 1.0 0.6 +49.4%
Largest owners Shares Value Change
BLK Blackrock 18.08M $119.53M +2.0%
FMR 16.88M $111.55M +66.9%
Vanguard 13.85M $91.55M -33.5%
STT State Street 4.77M $31.55M +1.7%
Millennium Management 3.23M $21.37M +485.5%
Charles Schwab Investment Management 3.18M $21.01M -8.9%
Arrowstreet Capital, Limited Partnership 2.15M $14.23M -16.7%
Geode Capital Management 2.06M $13.62M -23.2%
MS Morgan Stanley 2.03M $13.41M -17.4%
JPM JPMorgan Chase & Co. 1.79M $11.8M -27.5%
Largest transactions Shares Bought/sold Change
Vanguard 13.85M -6.98M -33.5%
FMR 16.88M +6.77M +66.9%
Millennium Management 3.23M +2.68M +485.5%
Mason Capital Management 1.33M +1.33M NEW
Pacer Advisors 0 -1.21M EXIT
Citadel Advisors 1.12M +1.06M +1954.3%
Thompson Siegel & Walmsley 1.06M +1.06M NEW
Scion Asset Management 0 -850K EXIT
Renaissance Technologies 1.45M +809K +125.7%
Two Sigma Investments 1.75M +706.09K +67.7%

Financial report summary

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Risks
  • Risks Related to Public-Private Partnerships
  • Public and political opposition to the use of public-private partnerships for secure facilities, processing centers and community reentry centers could result in our inability to obtain new contracts or the loss of existing contracts, impact our ability to obtain or refinance debt financing or enter into commercial arrangements, which could have a material adverse effect on our business, financial condition, results of operations and the market price of our securities.
  • Our level of indebtedness could adversely affect our financial condition and prevent us from fulfilling our debt service obligations.
  • We are incurring significant indebtedness in connection with substantial ongoing capital expenditures. Capital expenditures for existing and future projects may materially strain our liquidity.
  • Despite current indebtedness levels, we may still incur more indebtedness, which could further exacerbate the risks described above.
  • Our borrowing costs and access to capital and credit markets could be adversely affected by a downgrade or potential downgrade of our credit ratings.
  • The covenants in the indentures governing the 6.50% Exchangeable Senior Notes, the 6.00% Senior Notes, the 5.125% Senior Notes and the 5.875% Senior Notes and the covenants in our Senior Credit Facility impose significant operating and financial restrictions which may adversely affect our ability to operate our business.
  • Servicing our indebtedness will require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control and we may not be able to generate the cash required to service our indebtedness.
  • Because portions of our senior indebtedness have floating interest rates, a general increase in interest rates would adversely affect cash flows.
  • We depend on distributions from our subsidiaries to make payments on our indebtedness. These distributions may not be made.
  • We may not be able to satisfy our repurchase obligations in the event of a change of control or fundamental change because the terms of our indebtedness or lack of funds may prevent us from doing so.
  • The conditional exchange features of the 6.5% Exchangeable Senior Notes, if triggered, may adversely affect our financial condition.
  • We partner with a limited number of governmental customers who account for a significant portion of our revenues. The loss of, or a significant decrease in revenues from, these customers could seriously harm our financial condition and results of operations.
  • Fluctuations in occupancy levels could cause a decrease in revenues and profitability.
  • State budgetary constraints may have a material adverse impact on us.
  • From time to time, we may not have a management contract with a client to operate existing beds at a facility or new beds at a facility that we are expanding and we cannot assure you that such a contract will be obtained. Failure to obtain a management contract for these beds will subject us to carrying costs with no corresponding management revenue.
  • We are subject to the loss of our facility management contracts, due to terminations, non-renewals or competitive re-bids, which could adversely affect our results of operations and liquidity, including our ability to secure new facility management contracts from other government customers.
  • Our growth depends on our ability to secure contracts to develop and manage new secure facilities, processing centers and community based facilities and to secure contracts to provide electronic monitoring services, community-based reentry services and monitoring and supervision services, the demand for which is outside our control.
  • We may not be able to meet state requirements for capital investment or locate land for the development of new facilities, which could adversely affect our results of operations and future growth.
  • Competition for contracts may adversely affect the profitability of our business.
  • We are dependent on government appropriations, which may not be made on a timely basis or at all and may be adversely impacted by budgetary constraints at the federal, state, local and foreign government levels.
  • Adverse publicity may negatively impact our ability to retain existing contracts and obtain new contracts.
  • We may incur significant start-up and operating costs on new contracts before receiving related revenues, which may impact our cash flows and not be recouped.
  • We may face community opposition to facility locations, which may adversely affect our ability to obtain new contracts.
  • Natural disasters, pandemic outbreaks, global political events and other serious catastrophic events could disrupt operations and otherwise materially adversely affect our business and financial condition.
  • Our international operations expose us to risks that could materially adversely affect our financial condition and results of operations.
  • We conduct certain of our operations through joint ventures or consortiums, which may lead to disagreements with our joint venture partners or business partners and adversely affect our interest in the joint ventures or consortiums.
  • The rising cost and increasing difficulty of obtaining adequate levels of surety credit on favorable terms could adversely affect our operating results.
  • We are dependent upon our senior management and our ability to attract and retain sufficient qualified personnel.
  • Adverse developments in our relationship with our employees could adversely affect our business, financial condition or results of operations.
  • Our profitability may be materially adversely affected by inflation.
  • Our obligation to pay income taxes increased beginning with our taxable year ended December 31, 2021, which will result in a reduction to our earnings, and could have negative consequences to us.
  • We may fail to realize the anticipated benefits of terminating our REIT election and becoming a taxable C corporation effective for our fiscal year ended December 31, 2021, or those benefits may take longer to realize than expected, if at all, or may not offset the costs of terminating our REIT election and becoming a taxable C Corporation.
  • If we failed to qualify as a REIT for those years for which we elected REIT status, we would be subject to corporate income taxes and would not be able to deduct distributions to stockholders when computing our taxable income for those years.
  • Various risks associated with the ownership of real estate may increase costs, expose us to uninsured losses and adversely affect our financial condition and results of operations.
  • Risks related to facility construction and development activities may increase our costs related to such activities.
  • Negative conditions in the capital markets could prevent us from obtaining financing, which could materially harm our business.
  • Technological changes could cause our electronic monitoring products and technology to become obsolete or require the redesign of our electronic monitoring products, which could have a material adverse effect on our business.
  • Any negative changes in the level of acceptance of or resistance to the use of electronic monitoring products and services by governmental customers could have a material adverse effect on our business, financial condition and results of operations.
  • We depend on a limited number of third parties to manufacture and supply quality infrastructure components for our electronic monitoring products. If our suppliers cannot provide the components or services we require and with such quality as we expect, our ability to market and sell our electronic monitoring products and services could be harmed.
  • An inability to acquire, protect or maintain our intellectual property and patents in the electronic monitoring space could harm our ability to compete or grow.
  • Our electronic monitoring products could infringe on the intellectual property rights of others, which may lead to litigation that could itself be costly, could result in the payment of substantial damages or royalties, and/or prevent us from using technology that is essential to our products.
  • We license intellectual property rights in the electronic monitoring space, including patents, from third party owners. If such owners do not properly maintain or enforce the intellectual property underlying such licenses, our competitive position and business prospects could be harmed. Our licensors may also seek to terminate our license.
  • We may be subject to costly product liability claims from the use of our electronic monitoring products, which could damage our reputation, impair the marketability of our products and services and force us to pay costs and damages that may not be covered by adequate insurance.
  • The interruption, delay or failure of the provision of our services or information systems could adversely affect our business.
  • We may not be able to successfully identify or consummate acquisitions or dispositions.
  • Failure to comply with extensive government regulation and applicable contractual requirements could have a material adverse effect on our business, financial condition or results of operations.
  • Our business operations expose us to various liabilities for which we may not have adequate insurance and may have a material adverse effect on our business, financial condition or results of operations.
  • We may not be able to obtain or maintain the insurance levels required by our government contracts.
  • We are subject to risks related to corporate social responsibility.
  • The market price of our common stock may vary substantially. If the market price of our common stock were to decline further in the future at a specific measurement time period that impacts our public float calculation, we could potentially lose our status as a well-known seasoned issuer and large accelerated filer and suffer negative consequences.
  • Future sales or issuances of shares of our common stock could adversely affect the market price of our common stock and may be dilutive to current shareholders.
  • Various anti-takeover protections applicable to us may make an acquisition of us more difficult and reduce the market value of our common stock.
  • Failure to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 could have an adverse effect on our business and the trading price of our common stock.
  • We may issue additional debt securities that could limit our operating flexibility and negatively affect the value of our common stock.
Management Discussion
  • We have determined that our previously reportable business segment, Facility Construction and Design, no longer qualifies as a reportable segment as it no longer meets certain quantitative thresholds and has been aggregated with our International Services reportable business segment below.  In addition, we appointed a new Chief Executive Officer, the chief operating decision maker, during fiscal 2021. Based on changes to the way our chief operating decision maker views the business and financial results used to allocate resources to our electronic monitoring and supervision services operations, along with the growth of the business, we will report the electronic monitoring and supervision services operation as a separate reportable segment. This new segment will be presented as Electronic Monitoring and Supervision Services.  Previously, the electronic monitoring and supervision services operations were included in our GEO Care reportable segment. In addition, our GEO Care reportable segment was renamed to Reentry Services and will include services provided to adults for residential and non-residential treatment, educational and community-based programs, pre-release and half-way house programs   We have retroactively restated our segment presentation for the years ended December 31, 2021, 2020 and 2019 to reflect this change. Refer to Note 15 – Business Segments and Geographic Information of the Notes to the audited consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K.

Content analysis

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