Release Details

BOCA RATON, Fla.--(BUSINESS WIRE)-- The GEO Group (NYSE:GEO) (“GEO”) announced today the signing of a contract with the California Department of Corrections and Rehabilitation (the “Department”) for the reactivation of the company-owned, 260-bed McFarland Female Community Reentry Facility (the “Facility”) located in McFarland, California.

The contract with the Department will be effective through June 30, 2018. The Facility will house female inmates and will provide enhanced rehabilitation and recidivism reduction programs. GEO expects to begin the intake of inmates at the Facility in the third quarter of 2014. The Facility is expected to generate approximately $9 million in annualized revenues at full occupancy. The contract also includes a provision for a 260-bed expansion which can be exercised at the Department’s option within 12 months.

George C. Zoley, Chairman and CEO of GEO, said, “We are thankful for the confidence placed in our company by the California Department of Corrections and Rehabilitation. The reactivation of our McFarland Community Reentry Facility will play an important role in helping meet the need for correctional bed space as well as enhanced rehabilitation and recidivism reduction programs in the State of California. We look forward to our continued partnership with the Department and the community of McFarland.”

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, and community reentry 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.

The GEO Group, Inc.
Pablo E. Paez, 866-301-4436
Vice President, Corporate Relations

Source: The GEO Group, Inc.