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Mar 31, 2022
GEO Q1 2022 Earnings Report
Reported financial results for the first quarter of 2022.
Key Takeaways
The GEO Group reported strong operational and financial performance for Q1 2022, with total revenues of $551.2 million and a net income of $38.2 million. The company has reduced net recourse debt by approximately $80 million during the quarter and is focused on further debt reduction.
Total revenues for Q1 2022 were $551.2 million.
Net Income Attributable to GEO was $38.2 million, or $0.26 per diluted share.
Adjusted EBITDA reached $125.2 million.
The company reduced net recourse debt by approximately $80 million during the first quarter of 2022.
GEO
GEO
Forward Guidance
GEO has updated its financial guidance for 2022. They expect full year Net Income Attributable to GEO to be between $145 million and $157 million on annual revenues of approximately $2.2 billion.
Positive Outlook
- Expect full year Net Income Attributable to GEO to between $145 million and $157 million.
- Expect annual revenues of approximately $2.2 billion.
- Expect Adjusted Net Income to be in a range of $1.17 to $1.27 per diluted share.
- Expect full-year 2022 AFFO to be in a range of $2.30 to $2.40 per diluted share.
- Expect full year 2022 Adjusted EBITDA to be in a range of $453 million to $471 million.
Challenges Ahead
- Second quarter 2022 guidance reflects the previously announced discontinuation of our managed-only George W. Hill Correctional Facility contract in Pennsylvania in early April 2022, representing approximately $47 million in annualized revenues.
- Experienced favorable cost offsets during the first quarter of 2022, which we do not expect to re-occur in subsequent quarters.
- Full-year 2022 guidance continues to reflect the expected non-renewal of our two U.S. Department of Justice direct contracts that have option periods expiring during 2022, with combined annualized revenues of approximately $90 million.
- Guidance also reflects the impact of higher wages and bonuses for our facility staff.
- Expect effective tax rate for the full-year 2022 to be approximately 29%, exclusive of any discrete items.