10-Q
Q2false0000923796--12-31P3Yhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTaxhttp://fasb.org/us-gaap/2023#OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentNetOfTax0000923796us-gaap:ConvertibleDebtSecuritiesMember2023-01-012023-06-300000923796geo:RiversCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2023-06-300000923796geo:TrancheOneLoanMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:OperatingSegmentsMembergeo:InternationalServicesSegmentMember2022-04-012022-06-300000923796us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300000923796geo:InternationalServicesSegmentMember2022-12-310000923796geo:ColemanHallMemberus-gaap:PropertyPlantAndEquipmentMember2023-01-012023-06-300000923796us-gaap:RetainedEarningsMember2022-01-012022-06-300000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:SeniorNotesMember2023-01-012023-06-300000923796us-gaap:RevolvingCreditFacilityMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:OperatingSegmentsMembergeo:InternationalServicesSegmentMember2023-01-012023-06-300000923796us-gaap:PropertyPlantAndEquipmentMembergeo:McFarlandFemaleCommunityReentryFacilityMember2023-01-012023-06-300000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300000923796us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000923796us-gaap:OperatingSegmentsMember2022-04-012022-06-300000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:SeniorNotesMember2022-12-310000923796geo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMemberus-gaap:DebtInstrumentRedemptionPeriodFourMembergeo:NewRegisteredNotesMember2022-08-192022-08-190000923796us-gaap:PropertyPlantAndEquipmentMembergeo:HectorGarzaCenterMember2023-01-012023-06-300000923796us-gaap:PropertyPlantAndEquipmentMembergeo:McFarlandFemaleCommunityReentryFacilityMember2023-06-300000923796us-gaap:EmployeeStockOptionMember2022-01-012022-06-300000923796us-gaap:PropertyPlantAndEquipmentMembergeo:DRayJamesCorrectionalFacilityMember2023-06-300000923796geo:TrancheTwoLoanMembergeo:ExchangeCreditAgreementMember2022-12-310000923796us-gaap:NoncontrollingInterestMember2023-06-300000923796geo:RavenhallMember2023-06-300000923796geo:GEOSecureServicesMembergeo:BigSpringCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2023-06-300000923796us-gaap:OperatingSegmentsMembergeo:ElectronicMonitoringAndSupervisionServicesMember2023-04-012023-06-300000923796geo:TrancheThreeLoanMembergeo:ExchangeCreditAgreementMember2022-08-192022-08-190000923796us-gaap:OperatingSegmentsMembergeo:UsCorrectionsAndDetentionMember2022-01-012022-06-300000923796geo:AdditionalRevolverMember2023-06-300000923796us-gaap:PropertyPlantAndEquipmentMembergeo:NorthLakeCorrectionalFacilityMember2023-06-300000923796us-gaap:SeniorNotesMembergeo:SixPercentSeniorNotesDue2026Member2023-01-012023-06-300000923796us-gaap:OperatingSegmentsMembergeo:ReentryServicesMember2022-04-012022-06-300000923796geo:AmendedAndRestatedExecutiveRetirementAgreementMembergeo:GeorgeCZoleyMember2021-07-010000923796us-gaap:RevolvingCreditFacilityMembergeo:TrancheOneLoansAndTrancheTwoLoansMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:PropertyPlantAndEquipmentMembergeo:DRayJamesCorrectionalFacilityMember2023-01-012023-06-300000923796geo:TenPointFivePercentageSeniorSecondLinenSecuredNotesMember2023-01-012023-06-300000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Member2022-08-190000923796us-gaap:FairValueInputsLevel2Membergeo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Member2023-06-300000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-06-300000923796us-gaap:FairValueInputsLevel2Membergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Member2022-12-310000923796us-gaap:PropertyPlantAndEquipmentMembergeo:HectorGarzaCenterMembergeo:ReentryServicesMember2023-06-300000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2022-06-300000923796geo:TrancheOneLoanMembergeo:ExchangeCreditAgreementMember2023-06-300000923796geo:BigSpringCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2023-06-300000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000923796us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-06-300000923796us-gaap:NoncontrollingInterestMember2022-04-012022-06-300000923796us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300000923796geo:RiversCorrectionalFacilityMembergeo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMember2023-06-300000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300000923796us-gaap:AdditionalPaidInCapitalMember2022-12-310000923796us-gaap:TreasuryStockCommonMember2022-12-310000923796geo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewPrivateNotesMember2023-01-012023-06-300000923796us-gaap:SeniorNotesMembergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Member2023-06-300000923796geo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMembergeo:DRayJamesCorrectionalFacilityMember2023-06-300000923796geo:AmendedCreditAgreementMembersrt:MaximumMember2022-08-192022-08-190000923796us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-06-300000923796us-gaap:RestrictedStockMember2023-06-300000923796srt:MaximumMembergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2023-01-012023-06-300000923796us-gaap:RestrictedStockMembersrt:MinimumMember2023-01-012023-06-300000923796us-gaap:RetainedEarningsMember2022-04-012022-06-300000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000923796us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310000923796us-gaap:OperatingSegmentsMember2022-01-012022-06-300000923796geo:TrancheTwoLoanMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-300000923796us-gaap:AdditionalPaidInCapitalMember2023-01-012023-06-300000923796us-gaap:OperatingSegmentsMembergeo:ElectronicMonitoringAndSupervisionServicesMember2022-01-012022-06-300000923796us-gaap:AdditionalPaidInCapitalMember2023-06-300000923796us-gaap:RestrictedStockMember2022-12-310000923796us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-012023-06-300000923796us-gaap:SeniorNotesMembergeo:SixPercentSeniorNotesDue2026Member2023-06-300000923796us-gaap:NoncontrollingInterestMember2022-01-012022-06-300000923796geo:FacilityManagementContractsAndCustomerRelationshipsMember2022-12-310000923796us-gaap:NoncontrollingInterestMember2022-06-300000923796us-gaap:RestrictedStockMembergeo:CertainEmployeesandExecutiveOfficersMember2023-01-012023-06-300000923796us-gaap:TreasuryStockCommonMember2022-03-310000923796us-gaap:CommonStockMember2022-06-300000923796geo:FivePointOneTwoFivePercentSeniorNotesDue2023Member2023-01-012023-06-300000923796us-gaap:SeniorNotesMembergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Member2022-01-012022-12-3100009237962023-01-012023-06-300000923796us-gaap:TechnologyBasedIntangibleAssetsMember2022-12-310000923796us-gaap:MaterialReconcilingItemsMember2022-04-012022-06-300000923796us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000923796geo:TrancheOneLoansAndTrancheTwoLoansMember2023-01-012023-06-300000923796us-gaap:RetainedEarningsMember2023-04-012023-06-300000923796us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-06-300000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Member2022-12-310000923796geo:FlightlineCorrectionalFacilityMembergeo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMember2023-06-300000923796us-gaap:CarryingReportedAmountFairValueDisclosureMembergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Member2022-12-310000923796us-gaap:SeniorNotesMembergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Member2022-12-310000923796us-gaap:TradeNamesMember2023-06-300000923796us-gaap:SeniorNotesMembergeo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDueTwoThousandTwentyEightMember2022-12-310000923796us-gaap:TreasuryStockCommonMember2023-03-310000923796geo:SouthAfricanCustodialServicesPtyLimitedMember2023-06-300000923796geo:FivePointOneTwoFivePercentSeniorNotesDue2023Member2022-09-300000923796us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-06-300000923796geo:FlightlineCorrectionalFacilityMembergeo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMember2023-01-012023-06-300000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300000923796us-gaap:RevolvingCreditFacilityMembersrt:MinimumMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:RestrictedStockMember2023-04-012023-06-300000923796geo:CheyenneMountainRecoveryCenterMemberus-gaap:PropertyPlantAndEquipmentMember2023-01-012023-06-300000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300000923796us-gaap:RetainedEarningsMember2022-06-300000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2023-01-012023-06-300000923796us-gaap:CommonStockMember2023-04-012023-06-300000923796geo:SixPercentSeniorNotesDue2026Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300000923796geo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewRegisteredNotesMember2022-08-190000923796geo:CheyenneMountainRecoveryCenterMemberus-gaap:PropertyPlantAndEquipmentMember2023-06-300000923796geo:ExchangeCreditAgreementMember2023-01-012023-06-300000923796us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310000923796us-gaap:FairValueInputsLevel2Membergeo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2021-02-240000923796geo:GeoAmeyMember2023-01-012023-06-300000923796us-gaap:FairValueInputsLevel2Membergeo:TenPointFivePercentPublicSecondLienNotesDue2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000923796geo:GeoAmeyMember2022-01-012022-06-300000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Member2023-06-300000923796us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-06-300000923796geo:TrancheOneLoanMembergeo:ExchangeCreditAgreementMember2022-08-192022-08-190000923796geo:FivePointOneTwoFivePercentSeniorNotesDue2023Member2022-10-062022-10-060000923796geo:AlbertBoRobinsonAssessmentTreatmentCenterMember2023-06-300000923796geo:LondonInterbankOfferedRateMember2023-01-012023-06-300000923796us-gaap:RevolvingCreditFacilityMembergeo:ExchangeCreditAgreementMembergeo:TrancheOneLoansAndTrancheTwoLoansMember2022-08-192022-08-190000923796geo:RevolverMember2023-06-300000923796geo:TrancheThreeLoanMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:RestrictedStockMember2023-01-012023-06-300000923796us-gaap:PropertyPlantAndEquipmentMembergeo:ReentryServicesMember2023-01-012023-06-300000923796geo:TrancheThreeLoanMembergeo:ExchangeCreditAgreementMember2022-08-190000923796geo:AmendedCreditAgreementMembergeo:LondonInterbankOfferedRateMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMembersrt:MaximumMember2022-08-190000923796geo:ProspectusSupplementMember2021-06-280000923796us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310000923796geo:RavenhallMember2022-07-012022-09-300000923796us-gaap:SeniorNotesMembergeo:TenPointFiveZeroZeroPercentPublicSecondLienNotesDueTwoThousandTwentyEightMember2023-01-012023-06-300000923796geo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewPrivateNotesMember2022-08-192022-08-190000923796us-gaap:PropertyPlantAndEquipmentMembergeo:HectorGarzaCenterMembergeo:ReentryServicesMember2023-01-012023-06-300000923796geo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMembergeo:NorthLakeCorrectionalFacilityMember2023-06-300000923796us-gaap:FairValueInputsLevel2Membergeo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300000923796srt:MinimumMembergeo:ExchangeCreditAgreementMember2022-08-192022-08-190000923796geo:RavenhallMember2022-01-012022-09-300000923796us-gaap:EmployeeStockOptionMember2023-06-300000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000923796us-gaap:CommonStockMember2022-03-310000923796geo:ReentryServicesMember2023-06-300000923796us-gaap:RestrictedStockMember2022-01-012022-06-300000923796us-gaap:NotesPayableOtherPayablesMember2023-06-300000923796us-gaap:EmployeeStockMember2023-01-012023-06-300000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Member2023-01-012023-06-300000923796us-gaap:CarryingReportedAmountFairValueDisclosureMembergeo:SixPercentSeniorNotesDue2026Member2022-12-310000923796us-gaap:OperatingSegmentsMember2023-01-012023-06-300000923796us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-06-300000923796geo:CheyenneMountainRecoveryCenterMemberus-gaap:PropertyPlantAndEquipmentMembergeo:ReentryServicesMember2023-06-300000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000923796geo:FivePointOneTwoFivePercentSeniorNotesDue2023Member2022-08-190000923796geo:UsCorrectionsAndDetentionMember2023-06-300000923796geo:GeoAmeyMember2022-12-310000923796geo:UsMarshalsServiceMembersrt:MinimumMember2023-01-012023-06-300000923796geo:ColemanHallMemberus-gaap:PropertyPlantAndEquipmentMember2023-06-300000923796us-gaap:RetainedEarningsMember2023-03-310000923796geo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMembergeo:McFarlandFemaleCommunityReentryFacilityMember2023-01-012023-06-300000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2022Member2022-12-310000923796us-gaap:RetainedEarningsMember2022-03-310000923796us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300000923796geo:AmendedCreditAgreementMembersrt:MinimumMember2022-08-192022-08-190000923796geo:SixPercentSeniorNotesDue2026Member2023-01-012023-06-300000923796geo:SouthAfricanCustodialServicesPtyLimitedMember2022-01-012022-06-300000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Member2023-06-300000923796us-gaap:FairValueMeasurementsRecurringMember2022-12-310000923796us-gaap:NoncontrollingInterestMember2023-04-012023-06-300000923796us-gaap:AccumulatedTranslationAdjustmentMember2023-06-300000923796us-gaap:RevolvingCreditFacilityMembergeo:ExchangeCreditAgreementMember2023-06-300000923796us-gaap:RevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembergeo:ExchangeCreditAgreementMember2022-08-190000923796geo:NewRevolvingCreditCommitmentsAndNewTrancheOneTwoAndThreeLoansAndNewRegisteredNotesAndNewPrivateNotesMember2023-06-300000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000923796geo:FacilityManagementContractsAndCustomerRelationshipsMember2023-01-012023-06-300000923796us-gaap:OperatingSegmentsMembergeo:UsCorrectionsAndDetentionMember2023-04-012023-06-300000923796us-gaap:RevolvingCreditFacilityMembergeo:LondonInterbankOfferedRateMembergeo:AmendedCreditAgreementMemberus-gaap:LineOfCreditMember2022-08-190000923796geo:SixPercentSeniorNotesDue2026Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000923796us-gaap:RetainedEarningsMember2021-12-310000923796us-gaap:FairValueInputsLevel2Membergeo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300000923796us-gaap:FairValueInputsLevel2Membergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300000923796us-gaap:CommonStockMember2022-12-310000923796geo:GEOSecureServicesMember2022-06-300000923796us-gaap:CommonStockMember2022-04-012022-06-300000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2023-06-3000009237962022-06-300000923796us-gaap:SeniorNotesMembergeo:SixPercentSeniorNotesDue2026Member2022-12-310000923796geo:TenPointFivePercentageSeniorSecondLinenSecuredNotesMember2023-06-300000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000923796us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Member2022-12-310000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Member2023-06-300000923796geo:AmendedAndRestatedExecutiveRetirementAgreementMembergeo:GeorgeCZoleyMember2021-07-012021-07-010000923796geo:InternationalServicesSegmentMember2023-01-012023-06-300000923796us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-06-300000923796us-gaap:OperatingSegmentsMembergeo:ReentryServicesMember2023-01-012023-06-300000923796us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-3100009237962023-08-070000923796us-gaap:OperatingSegmentsMembergeo:UsCorrectionsAndDetentionMember2023-01-012023-06-300000923796us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-06-300000923796us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2022-04-012022-06-300000923796geo:AmendedCreditAgreementMembergeo:LondonInterbankOfferedRateMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMembersrt:MinimumMember2022-08-190000923796us-gaap:FairValueInputsLevel2Membergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-3100009237962022-01-012022-12-310000923796geo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMemberus-gaap:DebtInstrumentRedemptionPeriodThreeMembergeo:NewPrivateNotesMember2022-08-192022-08-190000923796us-gaap:RestrictedStockMembersrt:MaximumMember2023-01-012023-06-3000009237962023-03-012023-03-010000923796geo:ProspectusSupplementMember2023-01-012023-06-300000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-06-300000923796us-gaap:FairValueInputsLevel2Membergeo:SixPercentSeniorNotesDue2026Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-3000009237962023-04-012023-06-300000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDueTwoThousandTwentyEightMember2023-01-012023-06-300000923796us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-06-300000923796us-gaap:NoncontrollingInterestMember2022-03-310000923796us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-06-300000923796us-gaap:AdditionalPaidInCapitalMember2022-06-300000923796us-gaap:RevolvingCreditFacilityMembergeo:TrancheThreeLoanMembergeo:ExchangeCreditAgreementMember2022-08-192022-08-190000923796geo:UsCorrectionsAndDetentionMember2022-12-310000923796geo:AmendedCreditAgreementMemberus-gaap:LineOfCreditMembergeo:TermLoanMember2022-08-190000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2022-01-012022-06-300000923796us-gaap:PropertyPlantAndEquipmentMember2023-06-300000923796us-gaap:CommonStockMember2022-01-012022-06-300000923796geo:ReentryServicesMember2022-12-310000923796us-gaap:TechnologyBasedIntangibleAssetsMember2023-06-300000923796us-gaap:FairValueInputsLevel2Membergeo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000923796geo:SouthAfricanCustodialServicesPtyLimitedMember2022-12-310000923796geo:AmendedAndRestatedExecutiveRetirementAgreementMembergeo:GeorgeCZoleyMember2023-06-300000923796us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-06-300000923796geo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMemberus-gaap:DebtInstrumentRedemptionPeriodFourMembergeo:NewPrivateNotesMember2022-08-192022-08-190000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000923796geo:ProspectusSupplementMember2022-01-012022-06-300000923796us-gaap:TreasuryStockCommonMember2022-06-300000923796us-gaap:CarryingReportedAmountFairValueDisclosureMembergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Member2023-06-300000923796geo:InternationalServicesSegmentMember2023-06-300000923796geo:CheyenneMountainRecoveryCenterMemberus-gaap:PropertyPlantAndEquipmentMembergeo:ReentryServicesMember2023-01-012023-06-300000923796us-gaap:OperatingSegmentsMembergeo:InternationalServicesSegmentMember2023-04-012023-06-300000923796us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300000923796us-gaap:FairValueInputsLevel2Membergeo:FivePointEightSevenFivePercentSeniorNotesDue2024Member2023-06-300000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDueTwoThousandTwentyEightMember2023-06-300000923796geo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMembergeo:NorthLakeCorrectionalFacilityMember2023-01-012023-06-300000923796us-gaap:CommonStockMember2023-01-012023-06-300000923796us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-12-310000923796us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-06-300000923796geo:CorrectionalAlternativePlacementServicesCenterMember2023-01-012023-06-300000923796geo:LondonInterbankOfferedRateMembergeo:AmendedCreditAgreementMemberus-gaap:LineOfCreditMembergeo:TermLoanMember2022-08-190000923796us-gaap:DebtInstrumentRedemptionPeriodOneMembergeo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewRegisteredNotesMember2022-08-192022-08-190000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:SeniorNotesMember2022-01-012022-12-310000923796us-gaap:RevolvingCreditFacilityMembersrt:MinimumMembergeo:ExchangeCreditAgreementMember2022-08-192022-08-190000923796geo:ExchangeCreditAgreementMember2022-12-310000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300000923796us-gaap:TreasuryStockCommonMember2021-12-310000923796us-gaap:NoncontrollingInterestMember2023-01-012023-06-300000923796us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000923796us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310000923796us-gaap:CarryingReportedAmountFairValueDisclosureMembergeo:FivePointEightSevenFivePercentSeniorNotesDue2024Member2022-12-310000923796us-gaap:AccumulatedTranslationAdjustmentMember2022-06-300000923796geo:UsMarshalsServiceMembersrt:MaximumMember2023-01-012023-06-300000923796geo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMembergeo:McFarlandFemaleCommunityReentryFacilityMember2023-06-300000923796geo:ExchangeCreditAgreementMember2023-06-300000923796us-gaap:EmployeeStockOptionMember2023-03-012023-03-010000923796geo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMember2023-06-300000923796geo:A2018StockIncentivePlanMember2023-01-012023-06-300000923796us-gaap:TreasuryStockCommonMember2023-01-012023-06-300000923796us-gaap:SeniorNotesMembergeo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDueTwoThousandTwentyEightMember2022-01-012022-12-310000923796us-gaap:EmployeeStockMember2022-01-012022-06-300000923796us-gaap:RevolvingCreditFacilityMembersrt:MaximumMembergeo:ExchangeCreditAgreementMember2022-08-192022-08-190000923796us-gaap:CarryingReportedAmountFairValueDisclosureMembergeo:SixPercentSeniorNotesDue2026Member2023-06-300000923796geo:RavenhallMembergeo:RevolverMemberus-gaap:LetterOfCreditMember2023-06-300000923796us-gaap:AdditionalPaidInCapitalMember2023-03-310000923796us-gaap:RevolvingCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembergeo:ExchangeCreditAgreementMember2022-08-1900009237962022-12-310000923796us-gaap:SeniorNotesMembergeo:FivePointEightSevenFivePercentSeniorNotesDue2022Member2023-06-300000923796geo:FivePointOneTwoFivePercentSeniorNotesDue2023Member2023-06-300000923796us-gaap:FairValueInputsLevel2Membergeo:TenPointFivePercentPublicSecondLienNotesDue2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300000923796geo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMember2023-01-012023-06-300000923796geo:RiversCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2023-01-012023-06-300000923796us-gaap:AdditionalPaidInCapitalMember2022-01-012022-06-300000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310000923796us-gaap:OperatingSegmentsMembergeo:ElectronicMonitoringAndSupervisionServicesMember2023-01-012023-06-300000923796us-gaap:NoncontrollingInterestMember2022-12-310000923796us-gaap:OperatingSegmentsMembergeo:InternationalServicesSegmentMember2022-01-012022-06-300000923796geo:ColemanHallMemberus-gaap:PropertyPlantAndEquipmentMembergeo:ReentryServicesMember2023-06-300000923796us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310000923796geo:BigSpringCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2023-01-012023-06-3000009237962023-06-300000923796geo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewPrivateNotesMember2022-08-190000923796us-gaap:RetainedEarningsMember2022-12-310000923796us-gaap:RetainedEarningsMember2023-01-012023-06-300000923796geo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewRegisteredNotesMember2022-08-192022-08-190000923796us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000923796us-gaap:SeniorNotesMembergeo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDueTwoThousandTwentyEightMember2023-06-300000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2023-04-012023-06-300000923796us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembergeo:TrancheOneLoanMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:FairValueMeasurementsRecurringMember2023-06-300000923796us-gaap:TreasuryStockCommonMember2023-06-300000923796us-gaap:FairValueInputsLevel2Membergeo:SixPercentSeniorNotesDue2026Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310000923796us-gaap:DebtInstrumentRedemptionPeriodOneMembergeo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewPrivateNotesMember2022-08-192022-08-190000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:SeniorNotesMember2023-06-300000923796geo:SixPercentSeniorNotesDue2026Member2022-12-310000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000923796us-gaap:NoncontrollingInterestMember2023-03-310000923796us-gaap:EmployeeStockOptionMember2023-01-012023-06-300000923796geo:RiversCorrectionalFacilityMembergeo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMember2023-01-012023-06-3000009237962022-01-012022-06-300000923796geo:AmendedCreditAgreementMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-08-190000923796geo:FlightlineCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2023-01-012023-06-300000923796us-gaap:TradeNamesMember2022-12-310000923796us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-06-300000923796geo:FlightlineCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2023-06-3000009237962021-10-312021-10-310000923796geo:GeoAmeyMember2023-06-300000923796us-gaap:SeniorNotesMembergeo:SixPercentSeniorNotesDue2026Member2022-01-012022-12-310000923796us-gaap:LetterOfCreditMember2023-06-300000923796us-gaap:InterestRateSwapMember2023-06-300000923796geo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewRegisteredNotesMember2023-01-012023-06-300000923796us-gaap:NotesPayableOtherPayablesMember2023-01-012023-06-300000923796us-gaap:OperatingSegmentsMembergeo:ReentryServicesMember2023-04-012023-06-3000009237962023-03-310000923796us-gaap:EmployeeStockMember2023-06-300000923796geo:AlbertBoRobinsonAssessmentTreatmentCenterMember2023-01-012023-06-300000923796us-gaap:RetainedEarningsMember2023-06-300000923796geo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMembergeo:DRayJamesCorrectionalFacilityMember2023-01-012023-06-300000923796us-gaap:RestrictedStockMember2023-01-012023-06-300000923796us-gaap:NoncontrollingInterestMember2021-12-310000923796us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000923796us-gaap:RestrictedStockMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2023-01-012023-06-3000009237962022-03-310000923796geo:TrancheTwoLoanMembergeo:ExchangeCreditAgreementMember2023-06-300000923796us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-06-300000923796us-gaap:FairValueInputsLevel2Membergeo:SixPercentSeniorNotesDue2026Member2022-12-310000923796us-gaap:CarryingReportedAmountFairValueDisclosureMembergeo:FivePointEightSevenFivePercentSeniorNotesDue2024Member2023-06-300000923796us-gaap:MaterialReconcilingItemsMember2023-04-012023-06-300000923796us-gaap:FairValueInputsLevel2Membergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Member2023-06-300000923796us-gaap:RestrictedStockMember2022-01-012022-06-300000923796us-gaap:OperatingSegmentsMembergeo:ElectronicMonitoringAndSupervisionServicesMember2022-04-012022-06-300000923796us-gaap:CommonStockMember2023-03-310000923796geo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewRegisteredNotesAndRegisteredNotesMember2023-01-012023-06-300000923796us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-06-300000923796us-gaap:OperatingSegmentsMembergeo:ReentryServicesMember2022-01-012022-06-300000923796geo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMembergeo:NewRegisteredNotesMember2022-08-192022-08-190000923796geo:ElectronicMonitoringAndSupervisionServicesMember2023-06-300000923796us-gaap:InterestRateSwapMember2023-01-012023-06-300000923796geo:SixPercentSeniorNotesDue2026Member2023-06-300000923796us-gaap:CommonStockMember2023-06-300000923796us-gaap:FairValueInputsLevel2Membergeo:TenPointFivePercentPublicSecondLienNotesDue2028Member2023-06-3000009237962021-12-310000923796us-gaap:LetterOfCreditMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:PropertyPlantAndEquipmentMembergeo:NorthLakeCorrectionalFacilityMember2023-01-012023-06-300000923796us-gaap:SeniorNotesMembergeo:TenPointFiveZeroZeroPercentPublicSecondLienNotesDueTwoThousandTwentyEightMember2023-06-300000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Member2022-12-310000923796us-gaap:SeniorNotesMembergeo:TenPointFiveZeroZeroPercentPublicSecondLienNotesDueTwoThousandTwentyEightMember2022-01-012022-12-310000923796us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300000923796us-gaap:SeniorNotesMembergeo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDueTwoThousandTwentyEightMember2023-01-012023-06-300000923796us-gaap:AdditionalPaidInCapitalMember2021-12-310000923796geo:TrancheOneLoanMembergeo:ExchangeCreditAgreementMember2022-12-310000923796us-gaap:FairValueInputsLevel2Membergeo:FivePointEightSevenFivePercentSeniorNotesDue2024Member2022-12-310000923796geo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMemberus-gaap:DebtInstrumentRedemptionPeriodThreeMembergeo:NewRegisteredNotesMember2022-08-192022-08-190000923796us-gaap:SeniorNotesMembergeo:TenPointFiveZeroZeroPercentPublicSecondLienNotesDueTwoThousandTwentyEightMember2022-12-310000923796geo:GEOSecureServicesMembergeo:BigSpringCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2023-01-012023-06-300000923796us-gaap:CommonStockMember2021-12-310000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Member2023-06-300000923796geo:ColemanHallMemberus-gaap:PropertyPlantAndEquipmentMembergeo:ReentryServicesMember2023-01-012023-06-300000923796us-gaap:PropertyPlantAndEquipmentMembergeo:HectorGarzaCenterMember2023-06-300000923796us-gaap:AdditionalPaidInCapitalMember2022-03-310000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300000923796us-gaap:OperatingSegmentsMember2023-04-012023-06-300000923796srt:MaximumMembergeo:TrancheOneLoansAndTrancheTwoLoansMembergeo:ExchangeCreditAgreementMember2023-06-300000923796us-gaap:ShareBasedCompensationAwardTrancheTwoMemberus-gaap:RestrictedStockMember2023-01-012023-06-300000923796us-gaap:PropertyPlantAndEquipmentMembergeo:ReentryServicesMember2023-06-300000923796us-gaap:OverAllotmentOptionMembergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2021-02-240000923796us-gaap:SeniorNotesMembergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Member2023-01-012023-06-300000923796geo:FacilityManagementContractsAndCustomerRelationshipsMember2023-06-300000923796us-gaap:OperatingSegmentsMembergeo:UsCorrectionsAndDetentionMember2022-04-012022-06-300000923796us-gaap:DebtInstrumentRedemptionPeriodTwoMembergeo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewPrivateNotesMember2022-08-192022-08-1900009237962022-04-012022-06-300000923796geo:SouthAfricanCustodialServicesPtyLimitedMember2023-01-012023-06-300000923796geo:SixPercentSeniorNotesDue2026Member2022-08-190000923796us-gaap:RestrictedStockMember2022-04-012022-06-300000923796us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-06-300000923796us-gaap:MaterialReconcilingItemsMember2022-01-012022-06-300000923796us-gaap:MaterialReconcilingItemsMember2023-01-012023-06-300000923796geo:CertainEmployeesandExecutiveOfficersMembergeo:MarketAndPerformanceSharesMember2023-01-012023-06-300000923796us-gaap:RevolvingCreditFacilityMembersrt:MaximumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembergeo:ExchangeCreditAgreementMember2022-08-190000923796geo:ElectronicMonitoringAndSupervisionServicesMember2022-12-310000923796geo:TrancheTwoLoanMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-30geo:Bediso4217:AUDxbrli:puregeo:Metricgeo:Facilitygeo:Detaineegeo:Propertyiso4217:USDxbrli:sharesgeo:Persongeo:Instrumentgeo:Guaranteexbrli:sharesgeo:Segmentiso4217:USD

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to_______

Commission file number: 1-14260

 

The GEO Group, Inc.

(Exact name of registrant as specified in its charter)

 

 

Florida

65-0043078

(State or other jurisdiction of

incorporation or organization)

(IRS Employer

Identification No.)

 

 

 

4955 Technology Way

Boca Raton, Florida

33431

(Address of principal executive offices)

(Zip Code)

 

(561) 893-0101

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value per share

GEO

New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

Smaller reporting company

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

As of August 7, 2023, the registrant had 126,102,801 shares of common stock outstanding.

 

 


 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

3

ITEM 1. FINANCIAL STATEMENTS

3

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

3

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

4

CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2023 (UNAUDITED) AND DECEMBER 31, 2022

5

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

6

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

7

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

31

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

50

ITEM 4. CONTROLS AND PROCEDURES

50

PART II - OTHER INFORMATION

51

ITEM 1. LEGAL PROCEEDINGS

51

ITEM 1A. RISK FACTORS

53

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

53

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

53

ITEM 4. MINE SAFETY DISCLOSURES

53

ITEM 5. OTHER INFORMATION

53

ITEM 6. EXHIBITS

55

SIGNATURES

56

 

2


 

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

THE GEO GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2023 AND 2022

(In thousands, except per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2023

 

 

June 30, 2022

 

 

June 30, 2023

 

 

June 30, 2022

 

Revenues

 

$

593,891

 

 

$

588,177

 

 

$

1,202,100

 

 

$

1,139,362

 

Operating expenses

 

 

428,128

 

 

 

411,791

 

 

 

861,620

 

 

 

796,952

 

Depreciation and amortization

 

 

31,691

 

 

 

32,016

 

 

 

63,614

 

 

 

67,954

 

General and administrative expenses

 

 

41,692

 

 

 

49,296

 

 

 

91,826

 

 

 

97,856

 

Operating income

 

 

92,380

 

 

 

95,074

 

 

 

185,040

 

 

 

176,600

 

Interest income

 

 

1,297

 

 

 

5,562

 

 

 

2,465

 

 

 

11,190

 

Interest expense

 

 

(55,046

)

 

 

(33,225

)

 

 

(109,304

)

 

 

(64,846

)

Loss on extinguishment of debt

 

 

(1,618

)

 

 

 

 

 

(1,754

)

 

 

 

Gain on asset divestitures

 

 

2,175

 

 

 

3,680

 

 

 

2,175

 

 

 

3,053

 

Income before income taxes and equity in earnings of affiliates

 

 

39,188

 

 

 

71,091

 

 

 

78,622

 

 

 

125,997

 

Provision for income taxes

 

 

11,153

 

 

 

18,898

 

 

 

23,515

 

 

 

36,860

 

Equity in earnings of affiliates, net of income tax provision of
   $
334, $163, $514 and $275, respectively

 

 

1,490

 

 

 

1,480

 

 

 

2,412

 

 

 

2,715

 

Net income

 

 

29,525

 

 

 

53,673

 

 

 

57,519

 

 

 

91,852

 

Net loss attributable to noncontrolling interests

 

 

46

 

 

 

54

 

 

 

55

 

 

 

94

 

Net income attributable to The GEO Group, Inc.

 

$

29,571

 

 

$

53,727

 

 

$

57,574

 

 

$

91,946

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

122,045

 

 

 

121,119

 

 

 

121,740

 

 

 

120,918

 

Diluted

 

 

123,278

 

 

 

121,881

 

 

 

123,496

 

 

 

121,650

 

Net income per common share attributable to The GEO Group,
   Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share attributable to The GEO Group,
   Inc. - basic

 

$

0.20

 

 

$

0.37

 

 

$

0.39

 

 

$

0.63

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share attributable to The GEO Group,
   Inc. - diluted

 

$

0.20

 

 

$

0.37

 

 

$

0.39

 

 

$

0.63

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3


 

THE GEO GROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2023 AND 2022

(In thousands)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2023

 

 

June 30, 2022

 

 

June 30, 2023

 

 

June 30, 2022

 

Net income

 

$

29,525

 

 

$

53,673

 

 

$

57,519

 

 

$

91,852

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(1,011

)

 

 

(9,826

)

 

 

(2,390

)

 

 

(9,401

)

Change in marketable securities, net of tax provision (benefit) of $147, $(94), $253 and $(202), respectively

 

 

553

 

 

 

(353

)

 

 

953

 

 

 

(758

)

Pension liability adjustment, net of tax provision
   of $
0, $23, $0 and $45, respectively

 

 

 

 

 

85

 

 

 

 

 

 

170

 

Change in fair value of derivative instrument
   classified as cash flow hedge, net of tax provision (benefit) of
   $
220, $508, $(53) and $1,163, respectively

 

 

827

 

 

 

1,910

 

 

 

(200

)

 

 

4,374

 

Total other comprehensive income (loss), net of tax

 

 

369

 

 

 

(8,184

)

 

 

(1,637

)

 

 

(5,615

)

Total comprehensive income

 

 

29,894

 

 

 

45,489

 

 

 

55,882

 

 

 

86,237

 

Comprehensive loss attributable to noncontrolling interests

 

 

30

 

 

 

31

 

 

 

29

 

 

 

86

 

Comprehensive income attributable to The GEO Group, Inc.

 

$

29,924

 

 

$

45,520

 

 

$

55,911

 

 

$

86,323

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

4


 

THE GEO GROUP, INC.

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2023 AND DECEMBER 31, 2022

(In thousands, except share data)

 

 

 

June 30, 2023

 

 

December 31, 2022

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

48,716

 

 

$

95,073

 

Accounts receivable, less allowance for doubtful accounts of $741 and $809,
   respectively

 

 

350,961

 

 

 

416,399

 

Prepaid expenses and other current assets

 

 

52,299

 

 

 

43,536

 

Total current assets

 

 

451,976

 

 

 

555,008

 

Restricted Cash and Investments

 

 

136,497

 

 

 

111,691

 

Property and Equipment, Net

 

 

1,963,880

 

 

 

2,002,021

 

Assets Held for Sale

 

 

14,113

 

 

 

480

 

Operating Lease Right-of-Use Assets, Net

 

 

108,975

 

 

 

90,950

 

Deferred Income Tax Assets

 

 

8,005

 

 

 

8,005

 

Goodwill

 

 

755,189

 

 

 

755,199

 

Intangible Assets, Net

 

 

140,971

 

 

 

147,688

 

Other Non-Current Assets

 

 

92,283

 

 

 

89,341

 

Total Assets

 

$

3,671,889

 

 

$

3,760,383

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

 

$

73,076

 

 

$

79,312

 

Accrued payroll and related taxes

 

 

46,136

 

 

 

53,225

 

Accrued expenses and other current liabilities

 

 

174,835

 

 

 

237,369

 

Operating lease liabilities, current portion

 

 

23,784

 

 

 

22,584

 

Current portion of finance lease liabilities and long-term debt

 

 

29,377

 

 

 

44,722

 

Total current liabilities

 

 

347,208

 

 

 

437,212

 

Deferred Income Tax Liabilities

 

 

75,849

 

 

 

75,849

 

Other Non-Current Liabilities

 

 

79,763

 

 

 

74,008

 

Operating Lease Liabilities

 

 

90,127

 

 

 

73,801

 

Finance Lease Liabilities

 

 

922

 

 

 

1,280

 

Long-Term Debt, Net

 

 

1,845,649

 

 

 

1,933,145

 

Commitments, Contingencies and Other Matters (Note 11)

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

Preferred stock, $0.01 par value, 30,000,000 shares authorized,
   
none issued or outstanding

 

 

 

 

 

 

Common stock, $0.01 par value, 187,500,000 shares authorized,
   
130,284,977 and 128,912,410 issued and 126,075,130
and
124,060,038 outstanding, respectively

 

 

1,303

 

 

 

1,289

 

Additional paid-in capital

 

 

1,292,826

 

 

 

1,291,363

 

Retained earnings (accumulated deficit)

 

 

53,338

 

 

 

(4,236

)

Accumulated other comprehensive loss

 

 

(18,582

)

 

 

(16,919

)

Treasury stock, 4,209,847 shares, at cost, respectively

 

 

(95,175

)

 

 

(105,099

)

Total shareholders’ equity attributable to The GEO Group, Inc.

 

 

1,233,710

 

 

 

1,166,398

 

Noncontrolling interests

 

 

(1,339

)

 

 

(1,310

)

Total shareholders’ equity

 

 

1,232,371

 

 

 

1,165,088

 

Total Liabilities and Shareholders’ Equity

 

$

3,671,889

 

 

$

3,760,383

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

5


 

THE GEO GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

FOR THE SIX MONTHS ENDED

JUNE 30, 2023 AND 2022

(In thousands)

 

 

 

Six Months Ended

 

 

 

June 30, 2023

 

 

June 30, 2022

 

Cash Flow from Operating Activities:

 

 

 

 

 

 

Net income

 

$

57,519

 

 

$

91,852

 

Net loss attributable to noncontrolling interests

 

 

55

 

 

 

94

 

Net income attributable to The GEO Group, Inc.

 

 

57,574

 

 

 

91,946

 

Adjustments to reconcile net income attributable to The GEO Group, Inc. to net cash
   provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization expense

 

 

63,614

 

 

 

67,954

 

Stock-based compensation

 

 

8,935

 

 

 

9,869

 

Loss on extinguishment of debt

 

 

1,754

 

 

 

 

Amortization of debt issuance costs, discount and/or premium and other non-cash
   interest

 

 

5,805

 

 

 

3,755

 

Provision for doubtful accounts

 

 

 

 

 

76

 

Equity in earnings of affiliates, net of tax

 

 

(2,412

)

 

 

(2,715

)

Dividends received from unconsolidated joint ventures

 

 

1,807

 

 

 

2,441

 

Loss on sale/disposal of property and equipment, net

 

 

1,701

 

 

 

1,847

 

Gain on asset divestitures

 

 

(2,175

)

 

 

(3,053

)

Changes in assets and liabilities, net of effects of acquisitions:

 

 

 

 

 

 

Changes in accounts receivable, prepaid expenses and other assets

 

 

32,365

 

 

 

2,690

 

Changes in contract receivable

 

 

 

 

 

3,288

 

Changes in accounts payable, accrued expenses and other liabilities

 

 

(56,018

)

 

 

(6,119

)

Net cash provided by operating activities

 

 

112,950

 

 

 

171,979

 

Cash Flow from Investing Activities:

 

 

 

 

 

 

Proceeds from sale of property and equipment

 

 

 

 

 

37

 

Proceeds from sale of assets held for sale

 

 

2,791

 

 

 

15,812

 

Change in restricted investments

 

 

(3,503

)

 

 

895

 

Capital expenditures

 

 

(31,614

)

 

 

(36,060

)

Net cash used in investing activities

 

 

(32,326

)

 

 

(19,316

)

Cash Flow from Financing Activities:

 

 

 

 

 

 

Payments on long-term debt

 

 

(106,094

)

 

 

(54,318

)

Payments on non-recourse debt

 

 

 

 

 

(4,343

)

Proceeds from sale of treasury shares

 

 

5,750

 

 

 

 

Taxes paid related to net share settlements of equity awards

 

 

(3,445

)

 

 

(1,302

)

Proceeds from issuance of common stock in connection with ESPP

 

 

80

 

 

 

103

 

Proceeds from the exercise of stock options

 

 

81

 

 

 

 

Net cash used in financing activities

 

 

(103,628

)

 

 

(59,860

)

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
   and Cash Equivalents

 

 

(2,050

)

 

 

(4,331

)

Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash
   and Cash Equivalents

 

 

(25,054

)

 

 

88,472

 

Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period

 

 

143,843

 

 

 

548,322

 

Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, end of period

 

$

118,789

 

 

$

636,794

 

Supplemental Disclosures:

 

 

 

 

 

 

Non-cash Investing and Financing activities:

 

 

 

 

 

 

Right-of-use assets obtained from operating lease liabilities

 

$

31,289

 

 

$

4,284

 

Debt issuance costs in accrued expenses

 

$

3,850

 

 

$

 

Capital expenditures in accounts payable and accrued expenses

 

$

2,552

 

 

$

6,429

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

6


 

THE GEO GROUP, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION

The GEO Group, Inc., a Florida corporation, and subsidiaries (the “Company” or “GEO”) specialize in the ownership, leasing and management of secure facilities, processing centers and community reentry centers in the United States, Australia and South Africa. The Company owns, leases and operates a broad range of facilities including maximum, medium and minimum security facilities, processing centers, as well as community-based reentry facilities and offers an expanded delivery of rehabilitation services under its 'GEO Continuum of Care' platform. The 'GEO Continuum of Care' platform integrates enhanced rehabilitative programs, which are evidence-based and include cognitive behavioral treatment and post-release services, and provides academic and vocational classes in life skills and treatment programs while helping individuals reintegrate into their communities. The Company develops new facilities based on contract awards, using its project development expertise and experience to design, construct and finance what it believes are state-of-the-art facilities that maximize security and efficiency. The Company provides innovative compliance technologies, industry-leading monitoring services, and evidence-based supervision and treatment programs for community-based parolees, probationers and pretrial defendants. The Company also provides secure transportation services for individuals as contracted domestically and in the United Kingdom through its joint venture GEOAmey PECS Ltd. (“GEOAmey”). At June 30, 2023, the Company’s worldwide operations include the management and/or ownership of approximately 82,000 beds at 102 facilities, including idle facilities, and also include the provision of community supervision services for more than 400,000 individuals on average, including nearly 180,000 through an array of technology products including radio frequency, GPS, and alcohol monitoring devices.

 

GEO operated as a real estate investment trust ("REIT") from January 1, 2013 through December 31, 2020. As a REIT, the Company provided services and conducted other business activities through taxable REIT subsidiaries ("TRSs"). A TRS is a subsidiary of a REIT that is subject to applicable corporate income tax rates and certain qualification requirements. The Company's use of TRSs permitted GEO to engage in certain business activities in which the REIT could not engage directly, so long as those activities were conducted in entities that elected to be treated as TRSs under the Internal Revenue Code of 1986, as amended (the “Code”), and enabled GEO to, among other things, provide correctional services at facilities it owns and at facilities owned by its government partners. A TRS is not subject to the distribution requirements applicable to REITs so it may retain income generated by its operations for reinvestment.

 

On December 2, 2021, the Company announced that its board of directors (the “Board”) unanimously approved a plan to terminate the Company's REIT status and become a taxable C Corporation, effective for the year ended December 31, 2021. As a result, the Company is no longer required to operate under REIT rules, including the requirement to distribute at least 90% of REIT taxable income to its shareholders, which provides the Company with greater flexibility to use its free cash flow. Effective January 1, 2021, the Company was subject to federal and state income taxes on its taxable income at applicable tax rates and was no longer entitled to a tax deduction for dividends paid. The Company operated as a REIT for the 2020 tax year, and existing REIT requirements and limitations remained in place until December 31, 2020. In connection with terminating the Company’s REIT status, the Board also voted unanimously to discontinue the Company's quarterly dividend in late 2021.

 

 

The Company's unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and the instructions to Form 10-Q and consequently do not include all disclosures required by Form 10-K. The accounting policies followed for quarterly financial reporting are the same as those disclosed in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2023 for the year ended December 31, 2022. The accompanying December 31, 2022 consolidated balance sheet has been derived from those audited financial statements. Additional information may be obtained by referring to the Company’s Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments (consisting only of normal recurring items) necessary for a fair presentation of the financial information for the interim periods reported in this Quarterly Report on Form 10-Q have been made. Results of operations for the six months ended June 30, 2023 are not necessarily indicative of the results for the entire year ending December 31, 2023, or for any other future interim or annual periods.

 

 

 

 

 

7


 

2. GOODWILL AND OTHER INTANGIBLE ASSETS

The Company has recorded goodwill as a result of its various business combinations. Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the tangible assets and intangible assets acquired net of liabilities assumed, including noncontrolling interests. Changes in the Company's goodwill balances from January 1, 2023 to June 30, 2023 are as follows (in thousands):

 

 

 

January 1,
2023

 

 

Foreign Currency
Translation

 

 

June 30, 2023

 

U.S. Secure Services

 

$

316,366

 

 

$