The GEO Group (NYSE:GEO) ("GEO”) announced today that its Board
of Directors has approved a stock repurchase program of up to $100.0
million of GEO’s common stock effective through December 31, 2012. The
stock repurchase program will be funded primarily with cash on hand,
free cash flow, and borrowings under GEO’s revolving credit facility.
GEO believes it has the ability to fund the stock repurchase program,
its working capital, its debt service requirements, and its maintenance
and growth capital expenditure requirements, while maintaining
sufficient liquidity for other corporate purposes.
The stock repurchase is intended to be implemented through purchases
made from time to time in the open market or in privately negotiated
transactions, in accordance with applicable Securities and Exchange
requirements. The program may also include repurchases from time to time
from executive officers or directors of vested restricted stock and/or
vested stock options. The stock repurchase program does not obligate GEO
to purchase any specific amount of its common stock and may be suspended
or extended at any time at the company's discretion. As of May 5, 2011,
GEO had approximately 64.9 million shares of common stock outstanding.
George C. Zoley, Chairman of the Board and Chief Executive Officer of
GEO said: "We continue to be optimistic about the demand in our core
market segments and the long term growth prospects for our company, and
we believe we have the flexibility to pursue long term growth
opportunities, while enhancing our shareholders’ returns with the
implementation of a stock repurchase program. Given current market
conditions, we believe it is appropriate to allocate part of our capital
resources to opportunistically repurchase shares of common stock at
prices which would meet or exceed our targeted returns on invested
capital.”
The Geo Group is a world leader in the delivery of correctional,
detention, and residential treatment services to federal, state, and
local government agencies around the globe. GEO offers a turnkey
approach that includes design, construction, financing, and operations.
GEO represents government clients in the United States, Australia, South
Africa, and the United Kingdom. GEO’s worldwide operations include the
management and/or ownership of approximately 80,000 beds at 116
correctional, detention and residential treatment facilities, including
projects under development.
This press release contains forward-looking statements regarding
future events and future performance of GEO that involve risks and
uncertainties that could materially affect actual results, including
statements regarding estimated earnings, revenues and costs and our
ability to maintain growth and strengthen contract relationships.
Factors that could cause actual results to vary from current
expectations and forward-looking statements contained in this press
release include, but are not limited to: (1) GEO’s ability to
successfully pursue further growth and continue to enhance shareholder
value; (2) GEO’s ability to access the capital markets in the future on
satisfactory terms or at all;
(3) risks associated with GEO’s
ability to control operating costs associated with contract start-ups;
(4) GEO’s ability to timely open facilities as planned, profitably
manage such facilities and successfully integrate such facilities into
GEO’s operations without substantial costs; (5) GEO’s ability to win
management contracts for which it has submitted proposals and to retain
existing management contracts; (6) GEO’s ability to obtain future
financing on acceptable terms; (7) GEO’s ability to sustain company-wide
occupancy rates at its facilities; and (8) other factors contained in
GEO’s Securities and Exchange Commission filings, including the forms
10-K, 10-Q and 8-K reports.
