Financial Data and Key Metrics Changes - The company reported net income attributable to GEO of approximately $29 million or $0.21 per diluted share on quarterly revenue of approximately $636 million for Q2 2025, compared to a net loss of approximately $32.5 million or $0.25 per diluted share in Q2 2024 [26] - Adjusted net income for Q2 2025 was approximately $31 million or $0.22 per diluted share, compared to approximately $30 million or $0.23 per diluted share for the prior year [26] - Adjusted EBITDA for Q2 2025 was approximately $119 million, consistent with the prior year [26] Business Line Data and Key Metrics Changes - Revenues in owned and leased secure facilities increased by approximately 12% year over year, driven by new ICE contracts and census growth [27] - Revenues for non-residential contracts increased by approximately 10% from the prior year [27] - There was a 7% reduction in electronic monitoring and supervision services, a 2% reduction in reentry centers, and a 3% reduction in managed-only contracts [28] Market Data and Key Metrics Changes - Utilization across current ICE contracts increased from approximately 15,000 beds to 20,000 beds, representing the highest level of ICE utilization in the company's history [11] - The company has approximately 5,900 idle beds at six facilities, which could generate up to approximately $310 million in annualized revenues if fully utilized [12] Company Strategy and Development Direction - The company is focused on activating remaining idle facilities and exploring additional contract opportunities with ICE and the U.S. Marshals Service [13][15] - A $300 million stock buyback program has been authorized, expected to be executed at a rate of approximately $100 million per year [24][35] - The company aims to enhance shareholder value through disciplined capital allocation and debt reduction, targeting approximately $100 million in debt reduction per year [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the potential for additional contract awards and the overall growth opportunities in the ICE sector [16][48] - The company anticipates that the funding from the budget reconciliation bill will be available in mid to late August, which could support the expansion of detention capacity [14] - Management expects growth in the ICEP contract to materialize late this year or early next year, coinciding with the maximization of ICE detention capacity [19][47] Other Important Information - The company completed the sale of its Lawton facility for $312 million, which is seen as a transformative event [22][23] - The company has increased its budget for physical plant and technology improvements to approximately $100 million to better respond to ICE's expanding needs [29] Q&A Session Summary Question: Can you clarify the potential revenue from the additional beds? - Management indicated that approximately $250 million could be generated from an additional 5,000 beds, as these would be incremental beds where overhead is already paid [53] Question: What is the status of the ISAP contract and the potential shift to ankle monitors? - Management has stocked up on ankle monitors and noted that additional funding may be required for the ISAP contract if there is a shift to more expensive monitoring devices [56] Question: Will there be additional debt reduction in the second half of the year? - Management expects to generate excess cash in the second half of the year, enabling continued debt reduction while also looking at share repurchases [58][59] Question: How is the company positioned for state-level opportunities? - Management confirmed that the focus on state clients has increased, with ongoing competitive bidding for facilities in Florida and improved funding streams in Georgia [61] Question: What is the outlook for contracting additional facilities with the Marshals Service? - Management is cautiously optimistic about opportunities with the Marshals Service, noting that discussions are underway and funding is a key consideration [80]