10-Q 1 geo-20240331.htm 10-Q 10-Q
Q10000923796--12-31falseP3Yhttp://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:DebtInstrumentRedemptionPeriodThreeMembergeo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewPrivateNotesMember2022-08-192022-08-190000923796us-gaap:SeniorNotesMembergeo:NinePointFiveZeroPercentSecondLienSecuredNotesDueTwoThousandTwentyEightMember2024-01-012024-03-310000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000923796geo:TenPointTwoFivePercentSeniorNotesDue2031Memberus-gaap:SeniorNotesMemberus-gaap:SubsequentEventMember2024-04-180000923796us-gaap:SeniorNotesMembergeo:TenPointFiveZeroZeroPercentPublicSecondLienNotesDueTwoThousandTwentyEightMember2024-01-012024-03-310000923796us-gaap:CarryingReportedAmountFairValueDisclosureMembergeo:SixPercentSeniorNotesDue2026Member2024-03-310000923796us-gaap:RevolvingCreditFacilityMembergeo:LondonInterbankOfferedRateMemberus-gaap:LineOfCreditMembergeo:AmendedCreditAgreementMember2022-08-190000923796geo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewPrivateNotesMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2022-08-192022-08-190000923796us-gaap:RetainedEarningsMember2024-01-012024-03-310000923796geo:ProspectusSupplementMember2024-01-012024-03-3100009237962023-01-012024-03-310000923796us-gaap:RevolvingCreditFacilityMembersrt:MaximumMembergeo:ExchangeCreditAgreementMember2022-08-192022-08-190000923796srt:MaximumMemberus-gaap:RestrictedStockMember2024-01-012024-03-310000923796us-gaap:SubsequentEventMembergeo:SeniorSecuredTermLoanMember2024-04-180000923796geo:InternationalServicesSegmentMember2022-12-310000923796us-gaap:CommonStockMember2024-01-012024-03-310000923796us-gaap:TradeNamesMember2024-03-310000923796geo:NorthLakeCorrectionalFacilityMembergeo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796us-gaap:RevolvingCreditFacilityMembergeo:TrancheThreeLoanMembergeo:ExchangeCreditAgreementMember2022-08-192022-08-190000923796us-gaap:RestrictedStockMember2023-01-012023-03-310000923796us-gaap:EmployeeStockMember2023-01-012023-03-310000923796geo:GeoAmeyMember2023-01-012023-03-310000923796us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDueTwoThousandTwentyEightMemberus-gaap:SeniorNotesMember2024-03-310000923796us-gaap:SeniorNotesMembergeo:TenPointFiveZeroPercentSecondLienSecuredNotesDueTwoThousandTwentyEightMember2024-03-310000923796us-gaap:FairValueMeasurementsRecurringMember2024-03-310000923796us-gaap:EmployeeStockOptionMember2023-01-012023-03-310000923796geo:TrancheOneLoanMembergeo:ExchangeCreditAgreementMember2023-12-310000923796us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310000923796geo:InternationalServicesSegmentMember2024-03-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:SubsequentEventMemberus-gaap:CommonStockMember2024-05-062024-05-060000923796us-gaap:MaterialReconcilingItemsMember2023-01-012023-03-310000923796geo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewRegisteredNotesMember2022-08-190000923796geo:RavenhallMemberus-gaap:LetterOfCreditMembergeo:RevolverMember2024-03-310000923796us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000923796us-gaap:RevolvingCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembersrt:MinimumMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Membergeo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Member2023-12-310000923796geo:AmendedAndRestatedExecutiveRetirementAgreementMembergeo:GeorgeCZoleyMember2024-03-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310000923796us-gaap:EstimateOfFairValueFairValueDisclosureMembergeo:SixPercentSeniorNotesDue2026Member2023-12-310000923796us-gaap:NoncontrollingInterestMember2022-12-310000923796us-gaap:CommonStockMember2022-12-310000923796us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-03-310000923796us-gaap:TreasuryStockCommonMember2022-12-310000923796geo:TrancheTwoLoanMembergeo:ExchangeCreditAgreementMember2024-03-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2024-03-310000923796us-gaap:DebtInstrumentRedemptionPeriodThreeMembergeo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewRegisteredNotesMember2022-08-192022-08-190000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310000923796us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-03-310000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2024-03-310000923796us-gaap:RetainedEarningsMember2023-01-012023-03-310000923796us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Member2023-12-310000923796us-gaap:OperatingSegmentsMember2023-01-012023-03-310000923796us-gaap:EmployeeStockOptionMember2024-01-012024-03-310000923796us-gaap:AdditionalPaidInCapitalMember2023-12-310000923796geo:CertainEmployeesandExecutiveOfficersMembergeo:MarketAndPerformanceSharesMember2024-01-012024-03-3100009237962023-01-012023-09-300000923796geo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewRegisteredNotesMemberus-gaap:DebtInstrumentRedemptionPeriodFourMember2022-08-192022-08-190000923796us-gaap:OperatingSegmentsMembergeo:InternationalServicesSegmentMember2024-01-012024-03-310000923796geo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewRegisteredNotesMember2024-01-012024-03-310000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:FairValueInputsLevel2Member2023-12-310000923796geo:McFarlandFemaleCommunityReentryFacilityMembergeo:ReentryServicesMemberus-gaap:PropertyPlantAndEquipmentMember2024-01-012024-03-310000923796us-gaap:FairValueInputsLevel2Membergeo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Member2024-03-3100009237962024-01-012024-03-310000923796us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000923796geo:A2018StockIncentivePlanMember2024-01-012024-03-310000923796us-gaap:EstimateOfFairValueFairValueDisclosureMembergeo:SixPercentSeniorNotesDue2026Member2024-03-310000923796geo:TrancheTwoLoanMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:RestrictedStockMember2024-03-310000923796us-gaap:ConvertibleDebtMembergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:OverAllotmentOptionMember2021-02-240000923796geo:TrancheThreeLoanMembergeo:ExchangeCreditAgreementMember2022-08-192022-08-190000923796geo:ElectronicMonitoringAndSupervisionServicesMember2022-12-310000923796us-gaap:SubsequentEventMemberus-gaap:CommonStockMember2024-05-062024-05-060000923796geo:FacilityManagementContractsAndCustomerRelationshipsMember2023-12-310000923796geo:UsCorrectionsAndDetentionMember2024-03-310000923796geo:TermLoanFacilityMembergeo:CreditAgreementMemberus-gaap:SubsequentEventMember2024-04-180000923796us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310000923796geo:ColemanHallMembergeo:ReentryServicesMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310000923796us-gaap:RevolvingCreditFacilityMembergeo:LondonInterbankOfferedRateMembersrt:MaximumMemberus-gaap:LineOfCreditMembergeo:AmendedCreditAgreementMember2022-08-190000923796geo:TermLoanFacilityMembergeo:CreditAgreementMemberus-gaap:SubsequentEventMember2024-04-182024-04-180000923796us-gaap:RevolvingCreditFacilityMemberus-gaap:SeniorNotesMembergeo:CreditAgreementMemberus-gaap:SubsequentEventMember2024-04-182024-04-180000923796us-gaap:RevolvingCreditFacilityMembersrt:MinimumMembergeo:ExchangeCreditAgreementMember2022-08-192022-08-190000923796us-gaap:AccumulatedTranslationAdjustmentMember2024-03-310000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Member2023-12-310000923796geo:FivePointOneTwoFivePercentSeniorNotesDue2023Member2022-08-190000923796us-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796geo:NorthLakeCorrectionalFacilityMembergeo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMember2024-01-012024-03-310000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2023-12-310000923796geo:TrancheOneLoanMembergeo:ExchangeCreditAgreementMember2024-03-310000923796geo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewPrivateNotesMember2024-01-012024-03-310000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:SeniorNotesMember2023-12-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2023-12-3100009237962022-01-012022-12-310000923796us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310000923796us-gaap:CommonStockMember2023-01-012023-03-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2024-01-012024-03-310000923796us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-12-310000923796us-gaap:CommonStockMember2023-03-310000923796geo:NinetyDaysPeriodMembergeo:RegistrationRightsAgreementMemberus-gaap:SubsequentEventMember2024-04-180000923796geo:CreditAgreementMemberus-gaap:SubsequentEventMember2024-04-180000923796us-gaap:NoncontrollingInterestMember2023-03-310000923796us-gaap:RevolvingCreditFacilityMembergeo:TrancheOneLoansAndTrancheTwoLoansMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-310000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000923796geo:GeoAmeyMember2023-12-310000923796geo:ExchangeCreditAgreementMember2024-03-310000923796geo:SixPercentSeniorNotesDue2026Member2022-08-190000923796geo:GEOSecureServicesMembergeo:DelaneyHallMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796us-gaap:NoncontrollingInterestMember2024-03-310000923796geo:GEOSecureServicesMembergeo:FlightlineCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-03-310000923796geo:ElectronicMonitoringAndSupervisionServicesMember2024-03-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-3100009237962023-12-310000923796us-gaap:OperatingSegmentsMembergeo:InternationalServicesSegmentMember2023-01-012023-03-310000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDueTwoThousandTwentyEightMember2024-01-012024-03-310000923796us-gaap:TreasuryStockCommonMember2023-12-310000923796geo:NinetyDaysThereafterPeriodMembergeo:RegistrationRightsAgreementMemberus-gaap:SubsequentEventMember2024-04-180000923796geo:DRayJamesCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796us-gaap:ConvertibleDebtMembergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:SubsequentEventMember2024-05-060000923796geo:RevolverMember2024-03-310000923796geo:BigSpringCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDueTwoThousandTwentyEightMemberus-gaap:SeniorNotesMember2023-01-012023-12-310000923796geo:ReentryServicesMember2024-03-310000923796us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-03-310000923796us-gaap:CommonStockMember2023-12-310000923796geo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewRegisteredNotesMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2022-08-192022-08-190000923796us-gaap:ConvertibleDebtSecuritiesMember2024-01-012024-03-3100009237962022-12-310000923796us-gaap:OperatingSegmentsMembergeo:ElectronicMonitoringAndSupervisionServicesMember2023-01-012023-03-310000923796us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310000923796geo:A2018StockIncentivePlanMemberus-gaap:SubsequentEventMember2024-05-032024-05-030000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2024-03-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMembersrt:MaximumMember2024-01-012024-03-310000923796geo:CertainEmployeesandExecutiveOfficersMemberus-gaap:RestrictedStockMember2024-01-012024-03-310000923796geo:TrancheOneLoanMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Membergeo:SixPercentSeniorNotesDue2026Member2024-03-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:FairValueInputsLevel2Member2024-03-310000923796geo:FacilityManagementContractsAndCustomerRelationshipsMember2024-01-012024-03-310000923796us-gaap:EstimateOfFairValueFairValueDisclosureMembergeo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:FairValueInputsLevel2Member2023-12-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2023-03-310000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:SeniorNotesMember2023-01-012023-12-310000923796us-gaap:RetainedEarningsMember2023-03-310000923796srt:MaximumMembergeo:TrancheOneLoansAndTrancheTwoLoansMembergeo:ExchangeCreditAgreementMember2024-03-310000923796us-gaap:RevolvingCreditFacilityMembergeo:CreditAgreementMemberus-gaap:SubsequentEventMember2024-04-180000923796geo:ExchangeCreditAgreementMember2024-01-012024-03-310000923796geo:McFarlandFemaleCommunityReentryFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000923796geo:LondonInterbankOfferedRateMember2024-01-012024-03-3100009237962023-03-310000923796geo:LondonInterbankOfferedRateMembergeo:TermLoanMemberus-gaap:LineOfCreditMembergeo:AmendedCreditAgreementMember2022-08-190000923796geo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMembergeo:CheyenneMountainRecoveryCenterMember2024-01-012024-03-310000923796us-gaap:MaterialReconcilingItemsMember2024-01-012024-03-310000923796us-gaap:EstimateOfFairValueFairValueDisclosureMembergeo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Member2023-12-310000923796geo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewPrivateNotesMemberus-gaap:DebtInstrumentRedemptionPeriodFourMember2022-08-192022-08-190000923796us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:RestrictedStockMember2024-01-012024-03-310000923796us-gaap:OperatingSegmentsMember2024-01-012024-03-310000923796geo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewRegisteredNotesMember2022-08-192022-08-190000923796us-gaap:LetterOfCreditMember2024-03-310000923796geo:RiversCorrectionalFacilityMembergeo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796us-gaap:TradeNamesMember2023-12-310000923796geo:GEOSecureServicesMembergeo:BigSpringCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-012023-03-310000923796us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMembergeo:AmendedCreditAgreementMember2022-08-190000923796us-gaap:SeniorNotesMemberus-gaap:SubsequentEventMember2024-04-180000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:SeniorNotesMember2024-01-012024-03-310000923796us-gaap:FairValueMeasurementsRecurringMember2023-12-310000923796geo:ProspectusSupplementMember2023-12-280000923796us-gaap:AccumulatedTranslationAdjustmentMember2023-03-310000923796us-gaap:RevolvingCreditFacilityMembersrt:MinimumMembergeo:CreditAgreementMemberus-gaap:SubsequentEventMember2024-04-182024-04-180000923796us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-03-310000923796geo:SouthAfricanCustodialServicesPtyLimitedMember2023-12-310000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310000923796us-gaap:SeniorNotesMembergeo:TenPointFiveZeroZeroPercentPublicSecondLienNotesDueTwoThousandTwentyEightMember2024-03-310000923796us-gaap:AccumulatedTranslationAdjustmentMember2024-01-012024-03-310000923796us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Membergeo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Member2024-03-310000923796us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310000923796geo:ReentryServicesMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796us-gaap:InterestRateSwapMember2024-03-310000923796us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-03-310000923796us-gaap:LetterOfCreditMembergeo:CreditAgreementMemberus-gaap:SubsequentEventMember2024-04-180000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2021-02-240000923796geo:UsCorrectionsAndDetentionMember2022-12-310000923796geo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewPrivateNotesMember2022-08-190000923796geo:RavenhallMember2024-03-310000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000923796geo:GEOSecureServicesMembergeo:DRayJamesCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2024-01-012024-03-310000923796geo:AmendedCreditAgreementMembersrt:MinimumMember2022-08-192022-08-190000923796geo:SouthAfricanCustodialServicesPtyLimitedMember2023-01-012023-03-310000923796us-gaap:NotesPayableOtherPayablesMember2024-01-012024-03-310000923796geo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMember2024-01-012024-03-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:SeniorNotesMember2024-03-310000923796us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000923796us-gaap:RevolvingCreditFacilityMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:ShareBasedCompensationAwardTrancheTwoMemberus-gaap:RestrictedStockMember2024-01-012024-03-310000923796us-gaap:RevolvingCreditFacilityMember2023-12-142023-12-140000923796srt:MinimumMembergeo:ExchangeCreditAgreementMember2022-08-192022-08-190000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:FairValueInputsLevel2Member2023-12-310000923796geo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewRegisteredNotesMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2022-08-192022-08-190000923796us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000923796us-gaap:PropertyPlantAndEquipmentMembergeo:CheyenneMountainRecoveryCenterMember2024-03-310000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Member2024-02-090000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310000923796geo:GeoAmeyMember2024-01-012024-03-310000923796geo:SixPercentSeniorNotesDue2026Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000923796us-gaap:EstimateOfFairValueFairValueDisclosureMembergeo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Member2024-03-310000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Member2024-02-092024-02-090000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Member2024-03-310000923796geo:GEOSecureServicesMembergeo:CheyenneMountainRecoveryCenterMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796us-gaap:ConvertibleDebtSecuritiesMember2023-01-012023-03-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDueTwoThousandTwentyEightMember2024-03-310000923796geo:TermLoanMemberus-gaap:LineOfCreditMembergeo:AmendedCreditAgreementMember2022-08-190000923796us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310000923796geo:InternationalServicesSegmentMember2023-01-012024-03-310000923796geo:NorthLakeCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-3100009237962023-01-012023-12-310000923796geo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewPrivateNotesMember2022-08-192022-08-190000923796geo:ColemanHallMembergeo:ReentryServicesMemberus-gaap:PropertyPlantAndEquipmentMember2024-01-012024-03-310000923796us-gaap:RevolvingCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembergeo:CreditAgreementMemberus-gaap:SubsequentEventMember2024-04-182024-04-180000923796us-gaap:OperatingSegmentsMembergeo:ReentryServicesMember2024-01-012024-03-310000923796us-gaap:RevolvingCreditFacilityMembergeo:ExchangeCreditAgreementMember2024-03-310000923796us-gaap:RetainedEarningsMember2024-03-310000923796geo:TrancheThreeLoanMembergeo:ExchangeCreditAgreementMember2022-08-190000923796geo:SouthAfricanCustodialServicesPtyLimitedMember2024-03-310000923796us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000923796geo:AmendedAndRestatedExecutiveRetirementAgreementMembergeo:GeorgeCZoleyMember2021-07-010000923796us-gaap:OperatingSegmentsMembergeo:ReentryServicesMember2023-01-012023-03-310000923796us-gaap:RetainedEarningsMember2023-12-310000923796geo:FlightlineCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796srt:MaximumMembergeo:AmendedCreditAgreementMember2022-08-192022-08-190000923796geo:EightPointSixTwoFivePercentSeniorSecuredNotesDue2029Memberus-gaap:SeniorNotesMemberus-gaap:SubsequentEventMember2024-04-182024-04-1800009237962023-01-012023-03-310000923796geo:SixPercentSeniorNotesDue2026Member2023-12-310000923796us-gaap:RetainedEarningsMember2022-12-310000923796us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-03-310000923796us-gaap:RevolvingCreditFacilityMembersrt:MaximumMembergeo:CreditAgreementMemberus-gaap:SubsequentEventMember2024-04-182024-04-180000923796us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-310000923796us-gaap:SubsequentEventMember2024-05-030000923796us-gaap:NotesPayableOtherPayablesMember2024-03-310000923796us-gaap:RestrictedStockMember2024-01-012024-03-310000923796geo:TenPointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewRegisteredNotesAndRegisteredNotesMember2024-01-012024-03-310000923796us-gaap:SeniorNotesMembergeo:NinePointFiveZeroPercentSecondLienSecuredNotesDueTwoThousandTwentyEightMember2024-03-310000923796geo:ReentryServicesMemberus-gaap:PropertyPlantAndEquipmentMember2024-01-012024-03-310000923796us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-03-310000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310000923796us-gaap:SeniorNotesMembergeo:TenPointFiveZeroZeroPercentPublicSecondLienNotesDueTwoThousandTwentyEightMember2023-01-012023-12-310000923796us-gaap:NoncontrollingInterestMember2024-01-012024-03-310000923796us-gaap:CommonStockMember2024-03-310000923796us-gaap:RevolvingCreditFacilityMemberus-gaap:SeniorNotesMembergeo:CreditAgreementMemberus-gaap:SubsequentEventMember2024-04-180000923796srt:MaximumMemberus-gaap:SubsequentEventMember2024-05-030000923796geo:AmendedAndRestatedExecutiveRetirementAgreementMembergeo:GeorgeCZoleyMember2021-07-012021-07-010000923796us-gaap:RevolvingCreditFacilityMembersrt:MaximumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembergeo:ExchangeCreditAgreementMember2022-08-190000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMemberus-gaap:SubsequentEventMember2024-05-062024-05-060000923796geo:DelaneyHallMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796geo:GEOSecureServicesMembergeo:DelaneyHallMemberus-gaap:PropertyPlantAndEquipmentMember2024-01-012024-03-310000923796geo:HectorGarzaCenterMembergeo:ReentryServicesMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796srt:MinimumMemberus-gaap:SubsequentEventMember2024-05-030000923796geo:HectorGarzaCenterMembergeo:ReentryServicesMemberus-gaap:PropertyPlantAndEquipmentMember2024-01-012024-03-310000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDueTwoThousandTwentyEightMemberus-gaap:SeniorNotesMember2024-01-012024-03-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Member2024-03-310000923796geo:GEOSecureServicesMembergeo:BigSpringCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2024-01-012024-03-310000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Memberus-gaap:FairValueInputsLevel2Member2024-03-310000923796geo:RiversCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796geo:HectorGarzaCenterMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796us-gaap:RevolvingCreditFacilityMembersrt:MinimumMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:TreasuryStockCommonMember2024-03-310000923796us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310000923796us-gaap:AdditionalPaidInCapitalMember2023-03-310000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Member2024-03-310000923796geo:GEOSecureServicesMembergeo:FlightlineCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2024-01-012024-03-310000923796us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Member2022-08-190000923796geo:GEOSecureServicesMembergeo:DRayJamesCorrectionalFacilityMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310000923796us-gaap:OperatingSegmentsMembergeo:UsCorrectionsAndDetentionMember2023-01-012023-03-310000923796geo:TenPointTwoFivePercentSeniorNotesDue2031Memberus-gaap:SeniorNotesMemberus-gaap:SubsequentEventMember2024-04-182024-04-180000923796us-gaap:RestrictedStockMembersrt:MinimumMember2024-01-012024-03-310000923796us-gaap:SeniorNotesMembergeo:SixPercentSeniorNotesDue2026Member2023-12-310000923796geo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796us-gaap:AdditionalPaidInCapitalMember2024-03-310000923796us-gaap:SeniorNotesMembergeo:SixPercentSeniorNotesDue2026Member2024-03-310000923796geo:RiversCorrectionalFacilityMembergeo:GEOSecureServicesMemberus-gaap:PropertyPlantAndEquipmentMember2024-01-012024-03-310000923796us-gaap:EmployeeStockOptionMember2024-03-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2023-01-012023-12-310000923796geo:AdditionalRevolverMember2024-03-3100009237962024-03-310000923796geo:HealthCareServicesInAustraliaMember2024-01-012024-03-310000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Member2023-12-310000923796geo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMemberus-gaap:SeniorNotesMember2024-03-310000923796srt:MaximumMembergeo:RegistrationRightsAgreementMemberus-gaap:SubsequentEventMember2024-04-182024-04-180000923796geo:SixPercentSeniorNotesDue2026Member2024-01-012024-03-310000923796us-gaap:ConvertibleDebtMembergeo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Member2023-12-310000923796us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310000923796us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Membergeo:SixPercentSeniorNotesDue2026Member2023-12-310000923796us-gaap:EmployeeStockMember2024-01-012024-03-310000923796us-gaap:InterestRateSwapMember2024-01-012024-03-310000923796us-gaap:RestrictedStockMember2023-12-310000923796us-gaap:NoncontrollingInterestMember2023-12-310000923796geo:EightPointSixTwoFivePercentSeniorSecuredNotesDue2029Memberus-gaap:SeniorNotesMemberus-gaap:SubsequentEventMember2024-04-180000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310000923796us-gaap:FairValueInputsLevel2Membergeo:SixPercentSeniorNotesDue2026Member2023-12-310000923796geo:McFarlandFemaleCommunityReentryFacilityMembergeo:ReentryServicesMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-310000923796geo:SixPointFiveZeroPercentExchangeableSeniorNotesDue2026Memberus-gaap:SeniorNotesMember2023-12-310000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310000923796us-gaap:RevolvingCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2024-03-310000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDueTwoThousandTwentyEightMemberus-gaap:SeniorNotesMember2023-12-310000923796us-gaap:RevolvingCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembergeo:CreditAgreementMemberus-gaap:SubsequentEventMember2024-04-180000923796geo:NinePointFiveZeroZeroPercentPrivateSecondLienNotesDue2028Member2023-12-310000923796us-gaap:SeniorNotesMembergeo:TenPointFiveZeroPercentageSeniorSecondLinenSecuredNotesDue2028Member2024-03-310000923796us-gaap:SeniorNotesMembergeo:SixPercentSeniorNotesDue2026Member2024-01-012024-03-310000923796geo:NinePointFiveZeroZeroPercentSeniorSecondLienSecuredNotesDueTwoThousandTwentyEightMembergeo:NewPrivateNotesMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2022-08-192022-08-190000923796us-gaap:TreasuryStockCommonMember2023-01-012023-03-310000923796geo:TrancheOneLoanMembergeo:ExchangeCreditAgreementMember2022-08-192022-08-190000923796us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000923796geo:SouthAfricanCustodialServicesPtyLimitedMember2024-01-012024-03-310000923796us-gaap:RestrictedStockMember2024-01-012024-03-310000923796us-gaap:RevolvingCreditFacilityMembergeo:TrancheOneLoansAndTrancheTwoLoansMembergeo:ExchangeCreditAgreementMember2022-08-192022-08-190000923796geo:GeoAmeyMember2024-03-310000923796us-gaap:OperatingSegmentsMembergeo:ElectronicMonitoringAndSupervisionServicesMember2024-01-012024-03-310000923796geo:TrancheTwoLoanMembergeo:ExchangeCreditAgreementMember2023-12-310000923796us-gaap:FairValueInputsLevel2Membergeo:SixPercentSeniorNotesDue2026Member2024-03-310000923796us-gaap:SeniorNotesMembergeo:SixPercentSeniorNotesDue2026Member2023-01-012023-12-310000923796geo:TrancheOneLoanMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:RevolvingCreditFacilityMembergeo:CreditAgreementMemberus-gaap:SubsequentEventMember2024-04-182024-04-180000923796us-gaap:LetterOfCreditMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:OperatingSegmentsMembergeo:UsCorrectionsAndDetentionMember2024-01-012024-03-310000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:SeniorNotesMember2024-03-3100009237962021-10-312021-10-310000923796geo:TenPointFivePercentPublicSecondLienNotesDue2028Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000923796us-gaap:RevolvingCreditFacilityMembergeo:CreditAgreementMember2024-01-012024-03-310000923796us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000923796geo:ReentryServicesMember2022-12-310000923796geo:FacilityManagementContractsAndCustomerRelationshipsMember2024-03-310000923796us-gaap:EmployeeStockMember2024-03-310000923796geo:SixPercentSeniorNotesDue2026Member2024-03-310000923796geo:TrancheTwoLoanMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:AdditionalPaidInCapitalMember2022-12-310000923796us-gaap:SeniorNotesMembergeo:TenPointFiveZeroZeroPercentPublicSecondLienNotesDueTwoThousandTwentyEightMember2023-12-310000923796us-gaap:NoncontrollingInterestMember2023-01-012023-03-310000923796us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-01-012024-03-310000923796us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000923796geo:ExchangeCreditAgreementMember2023-12-310000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310000923796geo:ColemanHallMemberus-gaap:PropertyPlantAndEquipmentMember2024-03-3100009237962024-05-070000923796us-gaap:RestrictedStockMember2023-01-012023-03-310000923796us-gaap:RevolvingCreditFacilityMembergeo:LondonInterbankOfferedRateMemberus-gaap:LineOfCreditMembergeo:AmendedCreditAgreementMembersrt:MinimumMember2022-08-190000923796us-gaap:TreasuryStockCommonMember2023-03-310000923796us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000923796us-gaap:SeniorNotesMembergeo:TenPointFiveZeroPercentSecondLienSecuredNotesDueTwoThousandTwentyEightMember2024-01-012024-03-310000923796geo:TrancheThreeLoanMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembergeo:ExchangeCreditAgreementMember2022-08-190000923796us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueInputsLevel2Member2023-12-310000923796geo:FivePointEightSevenFivePercentSeniorNotesDue2024Memberus-gaap:FairValueInputsLevel2Member2024-03-310000923796us-gaap:RevolvingCreditFacilityMember2023-12-14iso4217:AUDgeo:Bediso4217:USDxbrli:sharesxbrli:puregeo:Instrumentgeo:Guaranteexbrli:sharesgeo:Metricgeo:Segmentgeo:Facilityiso4217: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 March 31, 2024

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 May 7, 2024, the registrant had 136,306,146 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 MONTHS ENDED MARCH 31, 2024 AND 2023

3

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

4

CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2024 (UNAUDITED) AND DECEMBER 31, 2023

5

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

6

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

7

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

33

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

48

ITEM 4. CONTROLS AND PROCEDURES

48

PART II - OTHER INFORMATION

49

ITEM 1. LEGAL PROCEEDINGS

49

ITEM 1A. RISK FACTORS

51

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

51

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

51

ITEM 4. MINE SAFETY DISCLOSURES

51

ITEM 5. OTHER INFORMATION

52

ITEM 6. EXHIBITS

53

SIGNATURES

54

 

2


 

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

THE GEO GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

FOR THE THREE MONTHS ENDED

MARCH 31, 2024 AND 2023

(In thousands, except per share data)

 

 

 

Three Months

 

 

 

 

March 31, 2024

 

 

March 31, 2023

 

 

Revenues

 

$

605,672

 

 

$

608,209

 

 

Operating expenses

 

 

441,675

 

 

 

433,492

 

 

Depreciation and amortization

 

 

31,365

 

 

 

31,923

 

 

General and administrative expenses

 

 

53,070

 

 

 

50,134

 

 

Operating income

 

 

79,562

 

 

 

92,660

 

 

Interest income

 

 

2,474

 

 

 

1,168

 

 

Interest expense

 

 

(51,295

)

 

 

(54,258

)

 

Loss on extinguishment of debt

 

 

(39

)

 

 

(136

)

 

Income before income taxes and equity in earnings of affiliates

 

 

30,702

 

 

 

39,434

 

 

Provision for income taxes

 

 

8,071

 

 

 

12,362

 

 

Equity in earnings of affiliates, net of income tax provision of
   $
128 and $179, respectively

 

 

28

 

 

 

922

 

 

Net income

 

 

22,659

 

 

 

27,994

 

 

Net loss attributable to noncontrolling interests

 

 

9

 

 

 

9

 

 

Net income attributable to The GEO Group, Inc.

 

$

22,668

 

 

$

28,003

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

 

122,497

 

 

 

121,432

 

 

Diluted

 

 

130,987

 

 

 

125,139

 

 

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

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

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

 

$

0.15

 

 

$

0.19

 

 

Diluted:

 

 

 

 

 

 

 

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

 

$

0.14

 

 

$

0.19

 

 

 

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 MONTHS ENDED

MARCH 31, 2024 AND 2023

(In thousands)

 

 

 

Three Months

 

 

 

 

March 31, 2024

 

 

March 31, 2023

 

 

Net income

 

$

22,659

 

 

$

27,994

 

 

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(3,872

)

 

 

(1,379

)

 

Change in marketable securities, net of tax provision of $0 and $106, respectively

 

 

 

 

 

400

 

 

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

 

 

12

 

 

 

 

 

Change in fair value of derivative instrument
   classified as cash flow hedge, net of tax provision (benefit) of
   $
186 and $(273), respectively

 

 

699

 

 

 

(1,027

)

 

Total other comprehensive loss, net of tax

 

 

(3,161

)

 

 

(2,006

)

 

Total comprehensive income

 

 

19,498

 

 

 

25,988

 

 

Comprehensive loss attributable to noncontrolling interests

 

 

(3

)

 

 

(1

)

 

Comprehensive income attributable to The GEO Group, Inc.

 

$

19,495

 

 

$

25,987

 

 

 

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

4


 

THE GEO GROUP, INC.

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2024 AND DECEMBER 31, 2023

(In thousands, except share data)

 

 

 

March 31, 2024

 

 

December 31, 2023

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

126,497

 

 

$

93,971

 

Accounts receivable, net of credit loss reserve of $677 and $606,
   respectively

 

 

356,717

 

 

 

390,023

 

Prepaid expenses and other current assets

 

 

48,276

 

 

 

44,511

 

Total current assets

 

 

531,490

 

 

 

528,505

 

Restricted Cash and Investments

 

 

141,378

 

 

 

135,968

 

Property and Equipment, Net

 

 

1,929,012

 

 

 

1,944,278

 

Operating Lease Right-of-Use Assets, Net

 

 

97,318

 

 

 

102,204

 

Deferred Income Tax Assets

 

 

8,551

 

 

 

8,551

 

Goodwill

 

 

756,019

 

 

 

755,199

 

Intangible Assets, Net

 

 

133,516

 

 

 

135,886

 

Other Non-Current Assets

 

 

87,226

 

 

 

85,815

 

Total Assets

 

$

3,684,510

 

 

$

3,696,406

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable

 

$

67,822

 

 

$

64,447

 

Accrued payroll and related taxes

 

 

89,160

 

 

 

64,436

 

Accrued expenses and other current liabilities

 

 

196,276

 

 

 

228,059

 

Operating lease liabilities, current portion

 

 

24,271

 

 

 

24,640

 

Current portion of finance lease liabilities and long-term debt

 

 

43,400

 

 

 

55,882

 

Total current liabilities

 

 

420,929

 

 

 

437,464

 

Deferred Income Tax Liabilities

 

 

74,872

 

 

 

77,369

 

Other Non-Current Liabilities

 

 

85,609

 

 

 

83,643

 

Operating Lease Liabilities

 

 

77,431

 

 

 

82,114

 

Long-Term Debt, Net

 

 

1,717,048

 

 

 

1,725,502

 

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,
   
130,668,619 and 130,297,248 issued and 126,458,772
and
126,087,401 outstanding, respectively

 

 

1,307

 

 

 

1,303

 

Additional paid-in capital

 

 

1,297,998

 

 

 

1,299,193

 

Retained earnings

 

 

125,757

 

 

 

103,089

 

Accumulated other comprehensive loss

 

 

(19,815

)

 

 

(16,642

)

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

 

 

(95,175

)

 

 

(95,175

)

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

 

 

1,310,072

 

 

 

1,291,768

 

Noncontrolling interests

 

 

(1,451

)

 

 

(1,454

)

Total shareholders’ equity

 

 

1,308,621

 

 

 

1,290,314

 

Total Liabilities and Shareholders’ Equity

 

$

3,684,510

 

 

$

3,696,406

 

 

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 THREE MONTHS ENDED

MARCH 31, 2024 AND 2023

(In thousands)

 

 

 

Three Months

 

 

 

March 31, 2024

 

 

March 31, 2023

 

Cash Flow from Operating Activities:

 

 

 

 

 

 

Net income

 

$

22,659

 

 

$

27,994

 

Net loss attributable to noncontrolling interests

 

 

9

 

 

 

9

 

Net income attributable to The GEO Group, Inc.

 

 

22,668

 

 

 

28,003

 

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

 

 

 

 

 

 

Depreciation and amortization expense

 

 

31,365

 

 

 

31,923

 

Stock-based compensation

 

 

5,656

 

 

 

5,578

 

Loss on extinguishment of debt

 

 

39

 

 

 

136

 

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

 

 

2,909

 

 

 

2,824

 

Equity in earnings of affiliates, net of tax

 

 

(28

)

 

 

(922

)

Dividends received from unconsolidated joint ventures

 

 

3,646

 

 

 

1,011

 

Loss on sale/disposal of property and equipment, net

 

 

246

 

 

 

606

 

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

 

 

 

 

 

 

Changes in accounts receivable, prepaid expenses and other assets

 

 

25,753

 

 

 

70,962

 

Changes in accounts payable, accrued expenses and other liabilities

 

 

(6,447

)

 

 

(45,381

)

Net cash provided by operating activities

 

 

85,807

 

 

 

94,740

 

Cash Flow from Investing Activities:

 

 

 

 

 

 

Proceeds from sale of property and equipment

 

 

 

 

 

175

 

Change in restricted investments

 

 

(2,523

)

 

 

(1,570

)

Capital expenditures

 

 

(14,768

)

 

 

(13,767

)

Net cash used in investing activities

 

 

(17,291

)

 

 

(15,162

)

Cash Flow from Financing Activities:

 

 

 

 

 

 

Payments on long-term debt

 

 

(23,253

)

 

 

(48,273

)

Proceeds from sale of treasury shares

 

 

 

 

 

5,750

 

Taxes paid related to net share settlements of equity awards

 

 

(7,412

)

 

 

(3,445

)

Proceeds from issuance of common stock in connection with ESPP

 

 

36

 

 

 

41

 

Proceeds from the exercise of stock options

 

 

529

 

 

 

49

 

Net cash used in financing activities

 

 

(30,100

)

 

 

(45,878

)

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

 

 

(3,003

)

 

 

(1,286

)

Net Increase in Cash, Cash Equivalents and Restricted Cash
   and Cash Equivalents

 

 

35,413

 

 

 

32,414

 

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

 

 

159,867

 

 

 

143,843

 

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

 

$

195,280

 

 

$

176,257

 

Supplemental Disclosures:

 

 

 

 

 

 

Non-cash Investing and Financing activities:

 

 

 

 

 

 

Right-of-use assets obtained from operating lease liabilities

 

$

491

 

 

$

1,583

 

Debt issuance costs in accrued expenses

 

$

 

 

$

3,850

 

Capital expenditures in accounts payable and accrued expenses

 

$

326

 

 

$

640

 

 

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 Ltd. (“GEOAmey”). At March 31, 2024, the Company’s worldwide operations include the management and/or ownership of approximately 81,000 beds at 100 facilities, including idle facilities, and also includes the provision of reentry and electronic monitoring and supervision services for thousands of individuals, including 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 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 stockholders, which provides the Company with greater flexibility to use its free cash flow. Effective January 1, 2021, the Company is subject to federal and state income taxes on its taxable income at applicable tax rates and is 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. The Board also voted unanimously to discontinue the Company's quarterly dividend.

 

 

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 29, 2024 for the year ended December 31, 2023. The accompanying December 31, 2023 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, 2023. 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 three months ended March 31, 2024 are not necessarily indicative of the results for the entire year ending December 31, 2024, 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, 2024 to March 31, 2024 are as follows (in thousands):

 

 

 

January 1,
2024

 

 

Additions [1]

 

 

Foreign Currency
Translation

 

 

March 31, 2024

 

U.S. Secure Services

 

$

316,366

 

 

$

 

 

$

 

 

$

316,366

 

Electronic Monitoring and Supervision Services

 

 

289,570

 

 

 

-

 

 

 

 

 

$

289,570

 

Reentry Services

 

 

148,873

 

 

 

-

 

 

 

 

 

$

148,873

 

International Services

 

 

390

 

 

 

836

 

 

 

(16

)

 

$

1,210

 

Total Goodwill

 

$

755,199

 

 

$

836

 

 

$

(16

)

 

$

756,019

 

 

 

[1] During the first quarter of 2024, the Company completed an acquisition of an entity that performed health care services located in Australia. The purchase price was approximately AUD6.0 million, or approximately $3.9 million, based on exchange rates on the date of acquisition subject to certain adjustments. The net assets acquired and operations were not material to our results from operations during the quarter ended March 31, 2024..

 

The Company has also recorded other finite and indefinite-lived intangible assets as a result of its various business combinations. The Company's intangible assets include facility management contracts and trade names and technology, as follows (in thousands):

 

 

 

March 31, 2024

 

 

December 31, 2023

 

 

 

Weighted
Average
Useful Life
(years)

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Facility management contracts

 

 

16.3

 

 

$

223,776

 

 

$

(135,460

)

 

$

88,316

 

 

$

223,781

 

 

$

(133,095

)

 

$

90,686

 

Trade names

 

Indefinite

 

 

 

45,200

 

 

 

 

 

 

45,200

 

 

 

45,200

 

 

 

 

 

 

45,200

 

Total acquired intangible assets

 

 

 

 

$

268,976

 

 

$

(135,460

)

 

$

133,516

 

 

$

268,981

 

 

$

(133,095

)

 

$

135,886

 

 

Amortization expense was $2.4 million and $3.4 million for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, the weighted average period before the next contract renewal or extension for the acquired facility management contracts was approximately 3.1 years.

Estimated amortization expense related to the Company's finite-lived intangible assets for the remainder of 2024 through 2028 and thereafter is as follows (in thousands):

 

Fiscal Year

 

Total
Amortization
Expense

 

Remainder of 2024

 

$

7,665

 

2025

 

 

8,533

 

2026

 

 

7,166

 

2027

 

 

6,860

 

2028

 

 

6,854

 

Thereafter

 

 

51,238

 

 

$

88,316

 

 

8


 

3. FINANCIAL INSTRUMENTS

The following tables provide a summary of the Company’s significant financial assets and liabilities carried at fair value and measured on a recurring basis as of March 31, 2024 and December 31, 2023 (in thousands):

 

 

 

 

 

 

Fair Value Measurements at March 31, 2024

 

 

 

Carrying Value at
March 31,
2024

 

 

Quoted Prices in
Active Markets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs (Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Restricted investment:

 

 

 

 

 

 

 

 

 

 

 

 

Rabbi Trusts

 

$

53,403

 

 

$

9,692

 

 

$

43,711

 

 

$

 

Marketable equity and fixed income securities

 

 

52,250

 

 

 

23,366

 

 

 

28,884

 

 

 

 

Other non-current assets

 

 

19,186

 

 

 

 

 

 

19,186

 

 

 

 

Interest rate swap derivatives

 

 

4,733

 

 

 

 

 

 

4,733

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2023

 

 

 

Carrying Value at
December 31,
2023

 

 

Quoted Prices in
Active Markets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs (Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Restricted investments:

 

 

 

 

 

 

 

 

 

 

 

 

Rabbi Trust

 

$

51,247

 

 

$

9,547

 

 

$

41,700

 

 

$

 

Marketable equity and fixed income securities

 

 

47,382

 

 

 

19,010

 

 

 

28,372

 

 

 

 

Other non-current assets

 

 

18,887

 

 

 

 

 

 

18,887

 

 

 

 

    Interest rate swap derivatives

 

 

3,849

 

 

 

 

 

 

3,849

 

 

 

 

 

The Company’s Level 2 financial instruments included in the tables above as of March 31, 2024 and December 31, 2023 consist of interest rate swap derivative assets/liabilities held by GEO, investments in equity and fixed income mutual funds held in the Company’s captive insurance subsidiary, Florina, the Company's rabbi trust established for employer contributions to The GEO Group, Inc. Non-qualified Deferred Compensation Plan and other non-current assets which include the cash surrender value of company-owned life insurance policies. The Company's Level 1 financial instruments included in the table above as of March 31, 2024 consist of money market funds held in Florina and money market funds held in the Company's rabbi trust established for its Executive Chairman's retirement account.

The interest rate swap derivative assets are valued using a discounted cash flow model based on projected borrowing rates. The Company's restricted investment in the rabbi trust for The GEO Group, Inc. Non-qualified Deferred Compensation Plan is invested in Company-owned life insurance policies which are recorded at their cash surrender values. These investments are valued based on the underlying investments held in the policies' separate accounts. The underlying assets are equity and fixed income pooled funds. The marketable equity and fixed income securities are valued using quoted rates. The company-owned life insurance policies included in other non-current assets are valued at their cash surrender values.

 

9


 

4. FAIR VALUE OF ASSETS AND LIABILITIES

The Company’s consolidated balance sheets reflect certain financial assets and liabilities at carrying value. The carrying value of certain debt instruments, if applicable, is net of unamortized discount. The following tables present the carrying values of those financial instruments and the estimated corresponding fair values at March 31, 2024 and December 31, 2023 (in thousands):

 

 

 

 

 

 

Estimated Fair Value Measurements at March 31, 2024

 

 

 

Carrying Value as
of March 31,
2024

 

 

Total Fair
Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

126,497

 

 

$

126,497

 

 

$

126,497

 

 

$

 

 

$

 

Restricted cash and investments

 

 

35,725

 

 

 

35,725

 

 

 

35,725

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings under exchange credit facility

 

$

906,712

 

 

$

932,328

 

 

$

 

 

$

932,328

 

 

$

 

10.500% Public Second Lien Notes due 2028

 

 

286,521

 

 

 

292,726

 

 

 

 

 

 

292,726

 

 

 

 

9.500% Private Second Lien Notes due 2028

 

 

239,142

 

 

 

241,917

 

 

 

 

 

 

241,917

 

 

 

 

6.00% Senior Notes due 2026

 

 

110,858

 

 

 

109,268

 

 

 

 

 

 

109,268

 

 

 

 

6.50% Exchangeable Senior Notes due 2026

 

 

230,000

 

 

 

394,399

 

 

 

 

 

 

394,399

 

 

 

 

 

 

 

 

 

 

Estimated Fair Value Measurements at December 31, 2023

 

 

 

Carrying Value as
of December 31,
2023

 

 

Total Fair
Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

93,971

 

 

$

93,971

 

 

$

93,971

 

 

$

 

 

$

 

Restricted cash and investments

 

 

65,896

 

 

 

65,896

 

 

 

65,896

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings under exchange credit facility

 

$

906,712

 

 

$

926,445

 

 

$

 

 

$

926,445

 

 

$

 

10.500% Public Second Lien Notes due 2028

 

 

286,521

 

 

 

293,049

 

 

 

 

 

 

293,049

 

 

 

 

9.500% Private Second Lien Notes due 2028

 

 

239,142

 

 

 

231,692

 

 

 

 

 

 

231,692

 

 

 

 

5.875% Senior Notes due 2024

 

 

23,253

 

 

 

22,946

 

 

 

 

 

 

22,946

 

 

 

 

6.00% Senior Notes due 2026

 

 

110,858

 

 

 

106,541

 

 

 

 

 

 

106,541

 

 

 

 

6.50% Exchangeable Senior Notes due 2026

 

 

230,000

 

 

 

319,920

 

 

 

 

 

 

319,920

 

 

 

 

 

The fair values of the Company’s cash and cash equivalents, and restricted cash and investments approximates the carrying values of these assets at March 31, 2024 and December 31, 2023. Restricted cash consists of money market funds, bank deposits, commercial paper and time deposits used for asset replacement funds and other funds contractually required to be maintained at the Company's Australian subsidiary. The fair value of the money market funds and bank deposits is based on quoted market prices (Level 1).

As of March 31, 2024, the recurring fair values of the Company's 10.500% Public Second Lien Notes due 2028 and the 9.500% Private Second Lien Notes due 2028 are based on Level 2 inputs using quotations by major market news services, such as Bloomberg. The fair value of the Company's exchange credit facility was also based on quotations by major market new services and also estimates of trading value considering the Company's borrowing rate, the undrawn spread and similar instruments.

As of March 31, 2024 and December 31, 2023, the fair values of the Company's 5.875% senior unsecured notes due 2024 ("5.875% Senior Notes due 2024"), 6.00% senior unsecured notes due 2026 (“6.00% Senior Notes”), and the 6.50% exchangeable senior unsecured notes due 2026 (“Convertible Notes” or “6.50% Exchangeable Notes due 2026”) are based on Level 2 inputs by major market news services.

 

10


 

5. RESTRICTED CASH AND CASH EQUIVALENTS

The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents reported on the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows:

 

 

 

March 31,
2024

 

 

March 31,
2023

 

Cash and cash equivalents

 

$

126,497

 

 

$

110,916

 

Restricted cash and investments - non-current

 

 

141,378

 

 

 

129,832

 

Less Restricted investments - non-current

 

 

(72,595

)

 

 

(64,491

)

Total cash, cash equivalents and restricted cash and cash
   equivalents shown in the statement of cash flows

 

$

195,280

 

 

$

176,257

 

 

Amounts included in restricted cash and cash equivalents are attributable to certain contractual cash restriction requirements at the Company's wholly owned Australian subsidiary and asset replacement funds contractually required to be maintained and other guarantees. Restricted investments - non-current (included in Restricted Cash and Investments in the accompanying consolidated balance sheets) consists of the Company's rabbi trust established for an employee and employer contributions to The GEO Group, Inc. Non-qualified Deferred Compensation Plan, its rabbi trust established for its Executive Chairman's retirement account held in a money market fund, investments in equity and fixed income mutual funds and money market funds held in the Company’s captive insurance subsidiary, Florina, and certain contractual cash requirements at the Company’s wholly owned Australian subsidiary related to certain performance guarantees at its Ravenhall facility. The investments held in the rabbi trust related to The GEO Group, Inc. Non-Qualified Deferred Compensation Plan and the investments in equity and fixed income mutual funds held in Florina are restricted investments that are not considered to be restricted cash and cash equivalents in the accompanying consolidated statements of cash flows. Refer to Note 3 - Financial Instruments.

6. SHAREHOLDERS’ EQUITY

The following tables present the changes in shareholders’ equity that are attributable to the Company’s shareholders and to noncontrolling interests for the three months ended March 31, 2024 and 2023 (in thousands):

 

 

 

Common shares

 

 

Additional
Paid-In

 

 

 

 

 

Accumulated
Other
Comprehensive

 

 

Treasury shares

 

 

Noncontrolling

 

 

Total
Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Retained Earnings

 

 

Loss

 

 

Shares

 

 

Amount

 

 

Interests

 

 

Equity

 

For the Three Months Ended
   March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2023

 

 

126,087

 

 

$

1,303

 

 

$

1,299,193

 

 

$

103,089

 

 

$

(16,642

)

 

 

4,210

 

 

$

(95,175

)

 

$

(1,454

)

 

$

1,290,314

 

Proceeds from exercise
   of stock options

 

 

73

 

 

 

1

 

 

 

528

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

529

 

Stock-based compensation
   expense

 

 

 

 

 

 

 

 

5,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,656

 

Restricted stock granted

 

 

929

 

 

 

9

 

 

 

(9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock canceled

 

 

(20

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares withheld for net
   settlements of share-
   based awards [1]

 

 

(615

)

 

 

(6

)

 

 

(7,406

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,412

)

Issuance of common
   stock - ESPP

 

 

3

 

 

 

 

 

 

36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

22,668