The GEO Group Inc GEO
Q1 2012 Earnings Call Transcript

Transcript Call Date 05/07/2012

Operator: Good day, ladies and gentlemen, and welcome the GEO Group Inc First Quarter 2012 Earnings Conference Call. My name is Larry, and I will be your operator for today. At this time all participants are in listen-only mode. Later we will conduct a question-and-answer session.

I would now like to turn the conference over to your host for today, Mr. Pablo Paez, Vice President of Corporate Relations. Please proceed.

Pablo E. Paez - VP, Corporate Relations: Thank you, operator. Good morning everyone and thank you for joining us for today's discussion of the GEO Group's first quarter 2012 earnings results. With us today is George Zoley, Chairman and Chief Executive Officer; Brian Evans, Chief Financial Officer; John Hurley, President of GEO Corrections and Detention; and Jorge Dominicis, President of GEO Care.

This morning we will discuss our first quarter performance and current business development activities. We will conclude the call with a question-and-answer session. This conference call is also being webcast live on our website at

Today we will discuss non-GAAP basis information. A reconciliation from non-GAAP basis information to GAAP basis results is included in the press release and supplemental disclosure we issued this morning.

Additionally, much of the information we will discuss today, including the answers we give in response to your questions, may include forward-looking statements regarding our beliefs and current expectations with respect to various matters. These forward-looking statements are intended to fall within the Safe Harbor provisions of the securities laws. Our actual results may differ materially from those in the forward-looking statements as a result of various factors contained in our Securities and Exchange Commission filings, including the Forms 10-K, 10-Q and 8-K reports.

With that, please allow me to turn this call over to our Chairman and CEO, George C. Zoley. George?

George C. Zoley - Chairman, CEO and Founder: Thanks Pablo. Good morning to everyone and thanks for joining us as we review our first quarter results and provide an update of our efforts to pursue quality growth opportunities and return value to shareholders.

The first quarter was an important financial and operational quarter for our Company driven by the continued performance of our diversified business units and the activation of two new projects. In Texas, we opened the first facility designed and operated for low risk immigration detainees under new federal detention standards in the United States. The new (GO-owned) 600 bed Karnes Civil Detention Center will be operated under a partnership between GEO, Karnes County and ICE. Our management contract will generate approximately $15 million in annualized revenues.

In Indiana, we completed construction of a Company-financed expansion of 512 beds to the New Castle Correctional Facility. The expansion will add approximately $8 million in annualized revenues under an extended management contract for the entire facility through June 2030. Additionally, during the first quarter, our U.S. Corrections and Detention division continued the intake of inmates at the 1,500-bed Riverbend Correctional Facility in Georgia with the completion of the intake process expected this month.

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