According to the recently released investor presentation for the fourth quarter of 2023, GEO Group Inc. reported a full-year revenue of $2.41 billion, an increase from the previous year's revenue of $2.37 billion. The net income for the year was $107.2 million, down from $171.7 million in the previous year. Adjusted EBITDA for the year was reported at $507.2 million, a decrease from the previous year's $539.2 million. The company also highlighted a reduction in net debt by approximately $197 million in 2023, bringing total net debt to $1.78 billion.
The company's stock is currently trading at approximately 6.5x Enterprise Value to Adjusted EBITDA and at approximately 12% Free Cash Flow Yield. GEO Group Inc. is listed on the New York Stock Exchange and is included in major indexes such as S&P 600 and Russell 2000. They reported having over 18,000 employees.
GEO Group Inc. is a leading provider of diversified secure and community reentry services with a 40% share of the market bed capacity, totaling 100,000 beds. The company owns and manages 48 GEO Secure Services Facilities and 40 GEO Care Residential Facilities, with an additional 8 leased/not managed facilities.
In terms of segment trends, the company highlighted continued capacity needs for U.S. Marshals Service (USMS) and U.S. Immigration and Customs Enforcement (ICE). They also noted aging state prison infrastructure and correctional staffing challenges. GEO Group Inc. operates in the US, Australia, UK, and South Africa, providing a range of services including secure residential care, non-secure residential care, and non-residential services.
The company provided financial guidance for the fiscal year 2024, with a projected net income of $110 million to $125 million, net interest expense of $190 million to $200 million, and adjusted EBITDA of $485 million to $515 million. They also outlined their environmental, social, and governance (ESG) objectives, emphasizing their commitment to human rights, workforce diversity, and environmental sustainability.
GEO Group Inc. also published its Fifth Annual Human Rights and ESG Report, which includes enhanced disclosures related to the board oversight of human rights and ESG matters, employee diversity and training programs, corporate governance, and environmental sustainability. The report highlights the company's commitment to respecting human rights and improving the lives of those entrusted to their care.
In terms of governance, the company highlighted its board oversight of health services, criminal justice and human rights, rehabilitation, cyber-security, environmental governance, and nominating and corporate governance. They also emphasized the importance of being a highly regulated and professional services provider, with lengthy contracts specifying all service requirements and on-site, full-time customer contract monitors at their facilities in the US.
Today the company's shares have moved -0.1% to a price of $11.88. For more information, read the company's full 8-K submission here.
