Latest news with #GEOGroup
Business Wire
2 days ago
- Business
- Business Wire
The GEO Group Closes Sale of Company-Owned Lawton Correctional Facility in Oklahoma for $312 Million
BOCA RATON, Fla.--(BUSINESS WIRE)-- The GEO Group, Inc. (NYSE: GEO) ('GEO' or the 'Company') announced today that on July 25, 2025, the Company completed the sale of the GEO-owned Lawton Correctional Facility (the 'Lawton Facility') located in Lawton, Oklahoma to the State of Oklahoma for $312 million and simultaneously transitioned the Lawton Facility operations to the Oklahoma Department of Corrections. As previously disclosed, GEO expects to use the net proceeds from the sale of the Lawton Facility to acquire the 770-bed Western Region Detention Facility located in San Diego, California in a like kind real estate property exchange expected to close on July 31, 2025, and to pay off additional senior secured debt, including the remaining balance of the Term Loan B outstanding under the Company's recently amended Credit Agreement. These transactions are expected to reduce GEO's total net debt to approximately $1.47 billion and position GEO to consider potential future capital returns. George C. Zoley, Executive Chairman of GEO, said, 'We believe that the successful sale of our Lawton Facility is representative of the intrinsic value of our Company-owned facilities, which now total approximately 50,000 beds. We believe this important transaction is a significant deleveraging event that further strengthens our balance sheet and represents an important step to position our Company to consider potential future capital returns. Our management team and Board of Directors remain focused on the disciplined allocation of capital to enhance long-term value for our shareholders.' About The GEO Group The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO's diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO's worldwide operations include the ownership and/or delivery of support services for 97 facilities totaling approximately 74,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 19,000 employees. Use of forward-looking statements This news release may contain 'forward-looking statements' within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the cautionary statements and risk factors contained in GEO's filings with the U.S. Securities and Exchange Commission including its Form 10-K, 10-Q and 8-K reports. All forward-looking statements speak only as of the date of this news release and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. Readers are strongly encouraged to read the full cautionary statements and risk factors contained in GEO's filings with the U.S. Securities and Exchange Commission, including those referenced above. GEO disclaims any obligation to update or revise any forward-looking statements, except as required by law.
Newsweek
2 days ago
- Politics
- Newsweek
People Will Die at Alligator Alcatraz
Advocates for ideas and draws conclusions based on the interpretation of facts and data. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Alligator Alcatraz, the immigration detention center that opened July 3 at a remote abandoned airstrip in Florida's Everglades, is the centerpiece of Governor Ron DeSantis' plan to be a "force multiplier" for President Donald Trump's mass deportation plan. The facility has a capacity of 1,000 beds—with plans to raise that to 4,000—costing $245 per bed per day, for an estimated cost of $450 million per year. Detainees who have managed to communicate with family, friends, and lawyers report appalling conditions. Insufficient and contaminated water. Inadequate, spoiled food. Ignored requests for medical care. Swarms of mosquitoes. Unbearably hot tents that leak when it rains. Severe overcrowding. Facility personnel who berate and threaten them. We have studied immigration detention for over a decade and can say with grim certainty that it's just a matter of time until someone dies at Alligator Alcatraz. This is what happens when detainees are seen as dollar signs. In our book, Immigration Detention Inc: The Big Business of Locking Up Migrants, we follow the money that coalesces around detention in the United States. Countless companies, state and local governments, and communities are tangled up in the economic webs tied to incarcerating migrants. These entities make money by starving, sickening, and exploiting detained migrants. The less they provide, the bigger their profits. President Donald Trump speaks with Secretary of Homeland Security Kristi Noem as they tour a migrant detention center, dubbed Alligator Alcatraz, located at the site of the Dade-Collier Training and Transition Airport in Ochopee, Fla.... President Donald Trump speaks with Secretary of Homeland Security Kristi Noem as they tour a migrant detention center, dubbed Alligator Alcatraz, located at the site of the Dade-Collier Training and Transition Airport in Ochopee, Fla. on July 1, 2025. More ANDREW CABALLERO-REYNOLDS/AFP via Getty Images In fact, it's the business model that has driven the wild growth of the detention system over the last 30 years, regardless of what party controls the White House. Since the 1980s, big prison corporations, like GEO Group and Core Civic, have used lobbying, political donations, and strategic hiring to push for ever-tougher immigration policies that keep up the supply of new bodies to detain. With Trump's push for mass deportations, it's only ramping up. "This is to us an unprecedented opportunity," said GEO Group Executive Chairman George Zoleyon a call with investors after Trump won. A range of other types of companies profit, too: Aramark and Wellpath, which provide food and medical care, respectively, make millions from immigration detention centers. In-facility stores run by corporate giants like Keefe Group charge detainees' outrageous prices for food, medicine, and other necessities, like personal hygiene products. Companies involved in communication, transportation, maintenance, security, technology, and equipment also profit ... the list is endless. County jails also become addicted to detention money. Local officials, in Democrat- and Republican-led districts alike, often see detaining people for ICE as a way to make up for budget shortfalls. With the Trump administration's encouragement, Ron DeSantis is taking this approach to a whole new level, turning detention into a speculative business. Build centers, enact laws that make more people detainable to fill them, then get the big ICE check. Policymakers, too, benefit from businesses tied to detention, often receiving generous campaign donations. Secretary of State Marco Rubio got political contributions for years from GEO Group. Both Attorney General Pam Bondi and "border czar" Tom Homan have been on GEO Group's payroll. Policymakers may invest in detention-adjacent businesses, like Trump's "mass deportation" architect Stephen Miller, who has a financial stake in Palantir Technologies, a software company specializing in surveillance and defense tools that works with the U.S. government. Such mutually beneficial arrangements are central to Alligator Alcatraz. As the Miami Herald reported, contractors hired to build it donated to DeSantis' campaign. Detainees, in turn, pay with their health and even their lives. People have been dying in ICE custody for decades, but that's increased dramatically since Trump took office—11 people have died in ICE detention since then. ICE facilities are supposed to adhere to a set of national detention standards, and ICE is legally required to conduct periodic inspections. But facilities with egregious conditions pass with flying colors. In June, when a local news chopper captured detainees at the Krome Detention Center in Florida spelling "SOS" with their bodies in an outside area, in a desperate plea for help, ICE issued a statement that the facility maintains "compliance with federal standards." To make matters worse, the Trump administration has drastically cut DHS funding and staff charged with protecting detainees' rights, and tightly restricted elected officials' access to facilities. The groundwork for the "follows standards" response has already been laid at Alligator Alcatraz. Responding to horrifying observations by Democratic congresspeople who visited the facility, on July 13 in an NBC Meet the Press interview, DHS Secretary Kristi Noem said that it's "held to the highest levels of what the federal government requires for detention facilities." We know what that means. With Trump's so-called Big Beautiful Bill, another $45 billion will be injected into supersizing the detention system, enlarging the machine of cruelty and exploitation. If we don't demand accountability and eliminate profit incentives, more companies and communities will become economically dependent on locking up, starving, and making human beings sick. Nancy Hiemstra and Deirdre Conlon are co-authors of Immigration Detention Inc: The Big Business of Locking Up Migrants. Hiemstra is a political geographer whose research focuses on U.S. immigration enforcement policies. She is an associate professor at Stony Brook University in Long Island, N.Y. Conlon is a critical geographer working on privatization of immigration controls in the U.S. and Britain. She is an associate professor based at the University of Leeds in Leeds, U.K. The views expressed in this article are the writers' own.
Yahoo
17-07-2025
- Business
- Yahoo
1 Profitable Stock Worth Your Attention and 2 to Avoid
While profitability is essential, it doesn't guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity". A business making money today isn't necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. That said, here is one profitable company that balances growth and profitability and two that may struggle to keep up. Two Stocks to Sell: Rapid7 (RPD) Trailing 12-Month GAAP Operating Margin: 3% Founded in 2000 with the idea that network security comes before endpoint security, Rapid7 (NASDAQ:RPD) provides software as a service that helps companies understand where they are exposed to cyber security risks, quickly detect breaches and respond to them. Why Do We Avoid RPD? Average billings growth of 4.6% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand Estimated sales growth of 2% for the next 12 months implies demand will slow from its three-year trend Free cash flow margin is forecasted to shrink by 2.4 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors Rapid7's stock price of $22.68 implies a valuation ratio of 1.7x forward price-to-sales. If you're considering RPD for your portfolio, see our FREE research report to learn more. GEO Group (GEO) Trailing 12-Month GAAP Operating Margin: 12% With a global footprint spanning three continents and approximately 81,000 beds across 100 facilities, GEO Group (NYSE:GEO) operates secure facilities, processing centers, and reentry services for government agencies in the United States, Australia, and South Africa. Why Is GEO Risky? Flat sales over the last five years suggest it must find different ways to grow during this cycle Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 31.5% annually 8.9 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position At $25.50 per share, GEO Group trades at 14.3x forward P/E. Dive into our free research report to see why there are better opportunities than GEO. One Stock to Buy: Cintas (CTAS) Trailing 12-Month GAAP Operating Margin: 22.8% Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ:CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America. Why Will CTAS Outperform? Annual revenue growth of 8.6% over the last two years beat the sector average and underscores the unique value of its offerings CTAS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are growing as it capitalizes on even better market opportunities Cintas is trading at $213.01 per share, or 45.9x forward P/E. Is now a good time to buy? Find out in our full research report, it's free. Stocks We Like Even More The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Business Wire
15-07-2025
- Business
- Business Wire
The GEO Group Announces Date for Second Quarter 2025 Earnings Release and Conference Call
BOCA RATON, Fla.--(BUSINESS WIRE)-- The GEO Group, Inc. (NYSE:GEO) ("GEO") will release its second quarter 2025 financial results on Wednesday, August 6, 2025 before the market opens. GEO has scheduled a conference call and simultaneous webcast for 11:00 AM (Eastern Time) on Wednesday, August 6, 2025. Hosting the call for GEO will be George Zoley, Executive Chairman of the Board, J. David Donahue, Chief Executive Officer, and Mark Suchinski, Chief Financial Officer. To participate in the teleconference, please contact one of the following numbers 5 minutes prior to the scheduled start time: 1-877-250-1553 (U.S.) 1-412-542-4145 (International) In addition, a live audio webcast of the conference call may be accessed on the Webcasts section of GEO's investor relations home page at A webcast replay will remain available on the website for one year. A telephonic replay will also be available through August 13, 2025. The replay numbers are 1-877-344-7529 (U.S.) and 1-412-317-0088 (International). The passcode for the telephonic replay is 2104307. If you have any questions, please contact GEO at 1-866-301-4436.
Business Wire
14-07-2025
- Business
- Business Wire
The GEO Group Amends Senior Revolving Credit Facility
BOCA RATON, Fla.--(BUSINESS WIRE)-- The GEO Group, Inc. (NYSE: GEO) ('GEO' or the 'Company') announced today the closing of an amendment to the Company's Credit Agreement dated as of April 18, 2024 (the 'Amendment'). The Amendment increases GEO's Revolving Credit Facility (the 'Revolver') commitments from $310 million to $450 million and extends the Revolver's maturity to July 14, 2030. The Amendment further provides that interest will accrue on outstanding revolving credit loans at a rate determined with reference to the Company's total leverage ratio. As of today, revolving credit loans accruing interest at a SOFR based rate would accrue interest at the term SOFR reference rate for the applicable interest period plus 2.75% per annum, which is lower by 0.50% from the applicate rate prior to the Amendment. The Amendment also increases GEO's capacity to make restricted payments over the next five years. Prior to the closing of the Amendment, GEO repaid $132 million of the Term Loan B outstanding under the Credit Agreement. Further, as previously disclosed, GEO expects to use net proceeds from the sale of the GEO-owned Lawton Correctional Facility in Oklahoma, which is expected to close on July 25, 2025, to pay off additional senior secured debt, including the remaining balance of the Term Loan B outstanding under the Credit Agreement. These two transactions are expected to reduce GEO's total net debt to approximately $1.47 billion and position GEO to consider potential future capital returns. George C. Zoley, Executive Chairman of GEO, said, 'We are pleased with this recent amendment to upsize and extend our Revolving Credit Facility, which is an important step to position our Company to consider potential future capital returns and support our future financial needs. This transaction also shows the growing support we are receiving from our existing and new banking partners. Our management team and Board of Directors remain focused on the disciplined allocation of capital to enhance long-term value for our shareholders.' About The GEO Group The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO's diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO's worldwide operations include the ownership and/or delivery of support services for 98 facilities totaling approximately 77,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 19,000 employees. Use of forward-looking statements This news release may contain 'forward-looking statements' within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the cautionary statements and risk factors contained in GEO's filings with the U.S. Securities and Exchange Commission including its Form 10-K, 10-Q and 8-K reports. All forward-looking statements speak only as of the date of this news release and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. Readers are strongly encouraged to read the full cautionary statements and risk factors contained in GEO's filings with the U.S. Securities and Exchange Commission, including those referenced above. GEO disclaims any obligation to update or revise any forward-looking statements, except as required by law.
