Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income attributable to GEO of approximately $19.6 million or $0.14 per diluted share on revenues of approximately $605 million, compared to net income of approximately $22.7 million or $0.14 per diluted share in Q1 2024 on revenues of approximately $606 million [25][26] - Adjusted EBITDA for Q1 2025 was approximately $100 million, down from approximately $118 million in the prior year's first quarter [25][26] - Operating expenses increased by approximately 3% year over year, reflecting higher labor costs and general administrative expenses [26][27] Business Line Data and Key Metrics Changes - Revenues from owned and leased secure service facilities increased by approximately 3% year over year, while revenues from electronic monitoring and supervision services declined by approximately 10% [25][26] - Combined revenues from owned and leased reentry centers, managed only facilities, and non-residential service contracts were largely unchanged compared to the prior year's first quarter [26] Market Data and Key Metrics Changes - Utilization at facilities under contract with ICE is currently at approximately 16,000 beds, the highest level in over five years, while ICE detention levels are estimated at about 48,000 beds nationwide [11][12] - The company has around 3,000 beds available under contract with the US Marshals Service and approximately 6,500 beds at idle facilities [11][12] Company Strategy and Development Direction - The company is focused on expanding its capabilities to assist the federal government with immigration enforcement priorities, including a $70 million investment to enhance detention capacity and electronic monitoring services [6][33] - The company has reorganized its corporate management structure to strengthen operational oversight in anticipation of expected growth [7][33] - The guidance for 2025 reflects a "tale of two halves," with the first half impacted by higher overhead and capital expenditures, while growth is expected to begin in the second half [8][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to meet the federal government's expanded immigration enforcement needs and anticipates significant growth opportunities in 2025 [6][34] - The company expects to see additional contract awards and increased utilization of idle facilities, with optimism for the second half of the year [12][46] Other Important Information - The company ended Q1 2025 with approximately $1.68 billion in total net debt and expects to reduce net debt by approximately $150 million to $175 million for the full year [21][30] - The company is exploring options for returning capital to shareholders in the future, contingent on achieving certain leverage levels [30][31] Q&A Session Summary Question: What caused the larger fall in operating income in the electronic monitoring segment? - Management indicated that the decline in profitability was due to a mix shift away from phones to GPS monitoring devices, impacting margins [40] Question: Is the $45 billion funding for ICE detention inclusive of ATD? - Management noted that the funding activity is focused on interior enforcement and that they expect greater utilization of electronic monitoring as the budget process unfolds [42][43] Question: What is the current status of ICE detainee numbers? - Management stated that the increase in detainees is due to the agency's focus on interior enforcement, and they are optimistic about the second half of the year [46][47] Question: What is the status of the Northlake contract? - Management clarified that capital investment for the Northlake facility is included in overall guidance and will be accretive over the contract timeline [70] Question: When might the company consider share repurchases? - Management indicated that share repurchases could be considered in the back half of 2025, depending on financial performance and debt reduction progress [60][68]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported net income attributable to GEO of approximately $15.5 million or $0.11 per diluted share on revenues of approximately $608 million, compared to $25 million or $0.17 per diluted share in Q4 2023 on the same revenue [29][30] - Adjusted net income for Q4 2024 was approximately $18 million or $0.13 per diluted share, down from $37 million or $0.29 per diluted share in Q4 2023 [31] - Adjusted EBITDA for Q4 2024 was approximately $108 million, compared to approximately $129 million for the prior year's fourth quarter [31] - For the full year 2024, net income attributable to GEO was approximately $32 million on annual revenues of approximately $2.42 billion, with adjusted net income of approximately $101 million or $0.75 per diluted share [34][36] Business Line Data and Key Metrics Changes - Revenue from owned and leased secure service facilities increased by approximately 3% year-over-year, while revenue from electronic monitoring and supervision services declined by approximately 10% compared to the prior year's fourth quarter [31][32] - The average daily census levels at residential reentry centers remained stable at approximately 5,000 individuals during Q4 2024 [56] Market Data and Key Metrics Changes - The current population in ICE detention facilities is approximately 15,000, which represents an increase of 1,000 beds utilized since the last earnings call [12] - The company expects to provide approximately 17,000 incremental detention beds to ICE and the federal government, increasing total available capacity from approximately 15,000 to 32,000 beds [11][12] Company Strategy and Development Direction - The company plans to invest $70 million to enhance capabilities for expanded detention capacity, secure transportation, and electronic monitoring services to ICE and the federal government [11][69] - The company aims to reactivate idle facilities and is in discussions with ICE and the Marshals Service regarding their interest in these facilities [15][26] - The company is positioned to scale up its secure residential care housing and electronic monitoring services significantly in response to new administration policies [70][72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the unprecedented level of operational activity expected in 2025, driven by new contract opportunities and increased enforcement by ICE [9][24] - The company anticipates that the ramp-up in enforcement and detention activities will depend on additional funding appropriated by Congress [24][26] - Management highlighted the importance of the Laken Riley Act in potentially increasing the demand for monitoring services [16][77] Other Important Information - The company ended 2024 with approximately $1.7 billion in total net debt and expects to reduce net debt by an additional $150 million to $175 million in 2025 [27][41] - The company has a significant runway to grow its business while focusing on debt reduction and exploring options for returning capital to shareholders in the future [41] Q&A Session Summary Question: Impact of The Laken Riley Act on monitoring - Management indicated that individuals may need to be placed in detention or continue in the ISEP monitoring program indefinitely if there is no capacity [77] Question: Prioritization of monitoring devices - Management noted a preference for ankle monitors for high-security monitoring, with no identified supply chain issues [78][81] Question: Revenue guidance and monitoring segment contribution - Approximately $250 million of the projected $800 million to $1 billion in incremental revenue is expected from monitoring, based on a participant count of approximately 450,000 [83][87] Question: Expectations for ICE's use of the Atlanta facility - Management mentioned that a court order allows for partial utilization of the facility, with a hearing expected to authorize full utilization [111] Question: Startup costs and operational expenses for new facilities - Management discussed the significant costs associated with hiring and training staff for facility activation, with expectations for a fast ramp-up in procurement activity [113][117]