Loading...
•
Dec 31, 2020
GEO Q4 2020 Earnings Report
GEO Group reported Q4 2020 results, highlighting challenges associated with the global COVID-19 pandemic and issuing 2021 guidance.
Key Takeaways
GEO Group's Q4 2020 results showed a decrease in revenue and net income compared to Q4 2019, impacted by the COVID-19 pandemic and a goodwill impairment charge. The company remains resilient with long-term real estate assets and contracts entailing essential government services.
Total revenues for Q4 2020 were $578.1 million, compared to $621.7 million for Q4 2019.
Net income attributable to GEO was $11.9 million, or $0.09 per diluted share, compared to $38.1 million, or $0.32 per diluted share, for Q4 2019.
Adjusted net income for Q4 2020 was $39.3 million, or $0.33 per diluted share, compared to $46.0 million, or $0.38 per diluted share, for Q4 2019.
The company drew down $250 million under its revolving credit facility during Q4 2020 and had $283.5 million in cash on hand as of December 31, 2020.
GEO
GEO
Forward Guidance
The company issued financial guidance for the full year and first quarter of 2021, anticipating continued negative impacts from the COVID-19 pandemic and the potential non-renewal of secure services contracts with the BOP. The guidance assumes a slow recovery throughout the year toward more normalized operations by year-end.
Positive Outlook
- Net Income Attributable to GEO to be in a range of $0.88 to $0.98 per diluted share for FY21.
- AFFO to be in a range of $1.98 to $2.08 per diluted share for FY21.
- Adjusted EBITDA to be in a range of approximately $386 million to $400 million for FY21.
- Full year 2021 revenues to be in a range of approximately $2.24 billion to $2.27 billion.
- Net Income Attributable to GEO to be in a range of $0.18 to $0.20 per diluted share for Q1 2021.
Challenges Ahead
- Global COVID-19 pandemic continues to have a negative impact on several segments of company.
- Lower occupancy levels at several of facilities and programs due to COVID-19.
- Increased spending on personal protective equipment, diagnostic testing, medical expenses, non-contact infrared thermometers, and increased sanitation measures.
- Potential non-renewal of three additional secure services contracts with the BOP.
- Three of secure services contracts with the BOP expiring during the first quarter of 2021.