The GEO (US:GEO)2024-11-13 21:34Financial Performance - Total revenues for Q3 2024 were $603.1 million, slightly up from $602.8 million in Q3 2023[3] - Net income attributable to GEO for Q3 2024 was $26.3 million, or $0.19 per diluted share, compared to $24.5 million, or $0.16 per diluted share in Q3 2023[2] - Adjusted EBITDA for Q3 2024 was $118.6 million, compared to $118.7 million in Q3 2023[3] - Total revenues for the first nine months of 2024 were $1.82 billion, compared to $1.80 billion for the same period in 2023[8] - Net income attributable to GEO for the first nine months of 2024 was $16.5 million, or $0.11 per diluted share, down from $82.1 million, or $0.55 per diluted share in the same period of 2023[6] - Q3 2024 revenues reached $603,125, a slight increase from $602,785 in Q3 2023, with year-to-date revenues of $1,815,982 compared to $1,804,885 in the same period last year[27] - Operating income for Q3 2024 was $82,371, down from $83,589 in Q3 2023, with year-to-date operating income of $242,078 compared to $268,629 in the prior year[27] - Q3 2024 net income attributable to GEO was $26,320, an increase of 7.3% from $24,519 in Q3 2023[28] - Adjusted EBITDA for Q3 2024 was $118,636, slightly down from $118,670 in Q3 2023, reflecting a decrease of 0.03%[28] Future Projections - The company expects Q4 2024 net income attributable to GEO to be in the range of $0.19 to $0.22 per diluted share, with revenues of $600 million to $610 million[9] - Full year 2024 expected revenues are approximately $2.42 billion, with adjusted net income projected between $0.80 to $0.84 per diluted share[10] - For FY 2024, net income attributable to GEO is projected to be between $40,000 and $45,000[29] - Adjusted EBITDA guidance for FY 2024 is set between $470,000 and $480,000[29] - Total debt, net, is expected to range from $1,675,000 to $1,650,000[29] - The company reported a net interest expense of $182,000 for FY 2024, with an increase to $184,000 projected[29] - Capital expenditures for FY 2024 are estimated to be between $80,000 and $85,000, with growth-related CAPEX at $12,000 to $13,000[29] - Adjusted net income per diluted share for FY 2024 is forecasted to be between $0.80 and $0.84[29] - The weighted average common shares outstanding on a diluted basis is expected to remain at 134,000[29] Debt and Assets - At the end of Q3 2024, GEO's net debt totaled approximately $1.69 billion, with a net leverage of about 3.5 times adjusted EBITDA[12] - Long-term debt decreased to $1,638,686 as of September 30, 2024, down from $1,725,502 at the end of 2023[26] - Cash and cash equivalents were $70,635 as of September 30, 2024, compared to $93,971 at the end of 2023[26] - The company reported a decrease in total current assets to $484,498 from $528,505 at the end of 2023[26] - Interest expense for Q3 2024 was $45,498, down from $55,777 in Q3 2023, indicating improved debt management[27] Operational Updates - Average participant counts under the ISAP program decreased to approximately 177,000 in Q3 2024 from 184,000 in Q2 2024[4] - The Adelanto ICE Processing Center contract was extended through December 19, 2029, employing approximately 350 individuals[11] Strategic Outlook - The company aims to reduce net debt and enhance long-term shareholder value through disciplined capital allocation[25] - Future performance is subject to various risks, including changes in government policy and economic conditions, which may impact financial guidance for 2024[25]