The GEO Group, Inc. (GEO) 25 Apr 232023 Q1 Earnings call transcript

Good day, everyone. And welcome to The GEO Group First Quarter 2023 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]

event recorded. today’s note, also is being Please At over President to I’d like of the floor to turn Pablo Relations. this time, Corporate Paez, Executive Vice Please go ahead.

Officer; thank for Thank Chief for XXXX Executive James Jose of Chief Executive earnings and today Evans, GEO everyone. Chairman Good us you, quarter Financial And Officer; GEO With Calabrese, George Operator. Group’s first Brian joining discussion Chief today’s President Officer; Gordo, are Services. us results. of of The morning, Board; Operating you Black, Wayne Secure Zoley, the

will at as also question-and-answer is we will investors.geogroup.com. session. outlook morning conclude discuss as we website call conference being This our webcast first results and a This well live quarter the on with call investor our our

will from basis supplemental GAAP we the discuss to information included morning. reconciliation and press results release basis this A basis issued information. non-GAAP is disclosure we in non-GAAP Today

will response include answers information the discuss various the including of matters. regarding statements with forward-looking your much to current respect our beliefs to we Additionally, expectations today, and in questions, give we may

are intended statements Safe within fall the securities forward-looking These laws. Harbor provisions the of to

results from statements a in forward-looking reports. X-K of materially in the as including contained Exchange may our XX-K, various actual factors Commission and and XX-Q differ result Securities filings, those Form Our the

Zoley. With that, please Executive allow me to turn George? our Chairman, this call over George to

and segments. progress morning update made senior XXXX financial guidance good reducing everyone. you us on each we the management Thank and trends quarter’s our Pablo, to I an today debt our review towards for first our call. results, of earnings the quarter you, am have business financial our by our to Thank first and provide for joining discuss joined on our

from XXXX revenues This morning million, XX% an XXXX. approximately of increase first reported quarter approximately of first the $XXX we quarter

Secure in also growth Services to Monitoring revenue growth year Services growth our we our but Our in was experienced our Non-Residential driven by Services. strong revenue segment, last Electronic segment Supervision and primarily compared and

$XX quarter quarter a year to of Our approximately rates interest net higher approximately expense higher of million as income to the first million restructuring from to due and transactions a debt interest million we completed XXXX first decreased by result increased the from GAAP $XX August XXXX interest ago. Compared of approximately in $XX expense XXXX.

higher $XXX first and Without first with million quarter the our the impact quarter million by the operating increasing X% delivered also during of by for EBITDA a income interest growth adjusted of from year the approximately increased results XXXX, of to expense, to net ago. X% operating $XXX our XXXX

financial strong to continue Our performance debt and net has progress allowed to our reducing leverage. us substantial make towards

of closing quarter leverage XXXX, billion net approximately debt and the debt quarter net of times with $XX adjusted EBITDA. net approximately X.X the During reduced by $X.X first our we of million, a approximately

Our adjusted by net goal end to XXXX. to to by the of reduce adjusted remains debt the EBITDA of our leverage below below end EBITDA X.X and times X times XXXX

to reduce reduction approximately every interest be reducing by debt, we further able interest year And by debt to hopeful million refinance $XX expected our XXXX. naturally are is Our of to portions our expense. expense our

diversified enterprise investors After when options attractive explore to believe to to services capital objectives, our leverage achieving and an return our that for equity shareholders. we our companies. valuation debt to reduction current We multiple hope compared value-to-EBITDA similar represents

currently towards reactivating have objective facilities. our progress our idle of recently important We made also

Plains our X,XXX-bed lease We the Great use into have Facility. new Oklahoma recently the a announced with of of State entering for agreement

in lease generate is $X.X GEO. will The one-year approximately new of term have revenue million unlimited straight-line annualized initial lease with and expected X.X years effective May an subsequent XXXX, X, to options for

comprised beds Bureau of in Plains reactivation facilities. owned segment, primarily approximately X,XXX Great our Secure idle five Facility, now of With former have of we Prisons Services the our

to the our agencies government upside of level. of at continue state the these market any modern and current And We forecast. federal significant to could these reactivation to represent facilities well-located five and actively idle facilities

scheduled addition, at the upside to the restrictions could expiration Title border of our current Southwest provide XX In forecast.

Title allowed by remove to Patrol with the XXXX, States. implemented to of the health Because the the public COVID emergency into of March XX XX, these public at entering restrictions illegally Since government of end portion XX has individuals declaration. significant federal to United a scheduled Southwest encountered expiration border Title the is immediately under XXXX, Border on declaration of health May emergency were coincide the

result in border activity due increase an the in weather Border XX at in time in is larger the proportion may already XX, It expires will by warmer process Title government Border increase encountered of individuals Patrol Title at likely When it an expected a May is is that have when XX border Southwest widely the to summer. also of expected federal the that expiration significantly unusual on encounters there a the seasonal to Patrol.

While counts processing difficult these circumstances in and ICE company would policy which estimate. fully to that ISAP populations, factors program decisions higher result in plays could higher the be our role no are recently these setting in center in

these at time, our guidance in not Given to financial dynamics the for this adjust decided have we assumptions XXXX.

approximately participants electronic ISAP of number the today, monitoring is under XXX,XXX. of As supervision

just closely and to program. XX-day XX-day And initial with subsidiary yesterday, Denver device solutions run began works our introduce participants ICE innovation ISAP an to under the with new VeriWatch area. new in the we test ISAP Our BI of

in the our in obtrusive process. participants the ICE device this non-detained non-citizens for program, its supplement immigration for compliance a manner, wrist would worn of noted moving As less through and qualify ISAP existing capabilities monitoring pilot GPS increasing docket announcement VeriWatch who for

recently processing centers below to the available that Based using ends fiscal by remain historical levels. September for on the beds approximately at ICE public rates year ICE XX,XXX XXXX. Occupancy currently most center data, compared is nationwide, our processes XX, beds Congress funded XX,XXX

budget submitted For request fiscal to ICE has Congress, October year XXXX, funding X, beds. baseline his for President which which XXXX, begins provides for XX,XXX on the

provides fund increase for contingency President’s XX,XXX by the the funding would currently that a beds level beds. addition, ICE funded X,XXX for to budget In request

fiscal bill XXXX. yet for House their Republicans year have not budget released

majority has several with by However, being made key the new enforcement House a considered border priority bills committees. currently Republican

resolution In the that put is budget House nor neither by budget ICE approved it’s currently the that government by the provide believe for beds could Representatives continuing with federal funded. a the would request possible XX,XXX bill be In funded would event, likely that be are of end, under forward XXXX, appropriations President’s the we fiscal the which it year Congress. consistent in that

compared under our historic ICE assumes rates XXXX guidance, XXXX for our lower in technology average the utilization our to Centers and will levels. to supervision respect remain a count Processing at outlook ISAP With participants below

Similarly, in XX financial At ICE represent expiration guidance. XX participant not counts, time, we upside current the financial guidance. Processing resulted the higher Title increased border in Should the have this would were current rates of Centers, those any to expiration of an assumptions Title this regarding ISAP activity in in of result trends upside included our to XX our our Tile also would result guidance. if to occupancy expiration at higher and

call Evans more detail. financial to the in and turn now Brian our will address guidance to I over results

Good Thank you, George. morning, everyone.

revenues approximately reported year we GAAP quarterly growth quarter net quarterly representing XX% on revenues from million, income $XX $XXX ago. the first of in For of of million approximately XXXX, a

to results compared restructuring of operating growth of in expense, August reported interest the and our interest due to an the in impact the reflect results $XX XXXX higher quarter year. we completed for of of million first quarter we of XXXX approximately XXXX. expense in rates last transactions first quarter higher increase First debt interest the Without

income and by $XXX million Compare increased to X% quarter operating a to of our respectively. net XXXX and million, adjusted our the year first in $XXX ago, EBITDA approximately

by $XX of our million XXXX, towards during structure. to net net substantial leverage our overall reduction We debt Moving making the quarter approximately our debt objectives. and progress capital reduced first

net quarter, end net we As adjusted and our approximately had approximately to debt in X.X of the $X.X EBITDA. times billion first declined leverage of the

reduce Our two to next to and leverage. is net net goal debt over our the continue years

times our end the EBITDA objective and this to financial period, X performance adjusted time during year. decrease the by of consistent be Assuming to to leverage by EBITDA of adjusted that below next net our times X.X end below would year

strategy we and more possible of time debt costs able to and in on to hope explore earliest our be the lower order to to to gain shareholders. portions we return debt As our objectives, this these to achieve reduction flexibility execute at options interest leverage refinance and achieve capital

guidance our for to Moving XXXX.

between of $X.XX expect We million $X.XX GAAP $XXX billion. on billion full income year revenues and annual to to net million XXXX be $XXX

We expect XX%, exclusive approximately year full any our the for XXXX items. to tax of be discrete rate effective

restructuring year higher transactions full compared increase XXXX. million XXXX $XX to interest to and XXXX completed the rates debt in full due August an guidance approximately in Our reflects of net of expense we interest year the

be XXXX $XXX between our $XXX million to expect adjusted We year full and million. EBITDA

any expiration our assumes XXXX. to related noted, year through our of this then the George the this on ISAP slightly XX average does time, As year counts for current middle not lower resulting the include to assumptions counts of and At participant scheduled increase XXth to guidance decline year. compared May of continue the Title guidance in

rates rates remain to could believe Processing XX ISAP which utilization participant upside represent we in Centers at Additionally, levels. result and ICE potential higher below our The our current our will ICE Processing guidance. occupancy Title forecast expiration counts at of assumes our higher Centers, historical could

remaining idle facilities, which and approximately Services current X,XXX to could X,XXX guidance. our Additionally, beds our also total the of reentry upside represent reactivation Secure beds

of guidance the for to Moving our second XXXX. quarter

be and XXXX we on between to and range We $XXX be to to expect net $XXX of be revenues GAAP million. million and -- second $XX between million million expect $XXX in $XXX of a million million adjusted income EBITDA our $XX to quarterly quarter

the James review our turn will over Services GEO to for I a of Secure segment. time, this At call Black

morning, Good Services. my update is Secure everyone. GEO to an Brian. you, on Thank provide pleasure It

Elimination XXXX, Services audits, reviews, XX the of and accreditations Act audits, including underwent our quarter During government Rape facility PREA internal first third-party Prison certification. successfully or Secure

both PREA of our American XXX% perfect Secure Two facilities with received score certification. received of our Association, while X from accreditation a of the Services Correctional facilities

in division million during driven miles Transportation the first and Our GTI X.X States quarter. completed overseas United the approximately

Moving our be partners. the continue government federal stable. At our at detention to facilities trends to current agency for populations U.S. Marshals level,

criminal facilities proceedings. agency federal services Our carries the detainees its support country facing pretrial around the it mission providing of U.S. custodial out for as Marshals

option quarter, exercised five-year effective facility During which U.S. the now in direct Robert XXX-bed the for first contract XXXX. February under our through the of is the Dayton Georgia, period Marshals

three periods periods direct through the additional our period September and our is our facility option an year, has XXX-bed option contract XXXX exercise Diego have had of of its option through XXXX. This September contracts second to Last of San exercise.

September through Marshals an of XXXX with Rio is a facility our U.S. September at option XXXX. through Our that contract the under X,XXX-bed Texas period Grande operating option third of runs has current five-year and direct additional period in

We important bed the remain capacity. generally provide is optimistic regarding these space continued where alternative courthouses, services facilities, which federal of and needed of there all detention lack near suitable of a believe utilization we

to data, fiscal year. our below publicly beds latest the Moving Processing the XX,XXX to our According while approximately currently facilities ICE is across funded beds nationwide, using historical under XX,XXX occupancy remain for agency rates Centers, current levels. has available ICE the

circumstances remains services our impact future service quality agency on beds, as for the May respond to support XX, provider several XX center need partner’s including government While could needs. Title being of high our scheduled to immigration the focus on prepared delivering expiration and processing a

of delivering track behalf professional entrusted Our of our care and have commitment human support care. providing ICE respect services rights secure the ICE Processing record, to to on Centers those all with our residential longstanding consistent a

health than ICE correctional more quality Centers to Processing offer round-the-clock Healthcare of a Processing in is double services. access at healthcare typical Centers state ICE staff generally our the staffing a number facility. Our

Processing also and resources. legal to ICE and legal access offer Our counsel libraries Centers

with our at We meetings counsel. space have accommodate legal dedicated centers to

Centers ICE All daily dietician. Our meals culturally also registered that by sensitive. meals provide are approved a are Processing

of as access to to and We We various and based denominations. fair ensure volunteers community with representation also needed faith faith partner provide religious opportunities.

Centers Processing quality to activities. ICE offer Our recreational access also

enhanced provide rooms. multipurpose and artificial to fields, exercise at We equipment turf centers, have including covered pavilion, made investments our amenities significant soccer

of Moving new XXXX partners, with have agreement lease one initial year The with use to Great unlimited agency X, will X,XXX May our the of years new into term state X.X we recently bed the an options. Plains subsequent government effective State Correctional entered lease of a for our Oklahoma Facility.

lease insurance will line lease, term we the payments. generate approximately be million annually the Over tax for $X.X of GEO straight will revenues and capital maintenance property responsible expenditures, and of property

have objective five of of facilities. marks We former facilities. towards our of approximately primarily The reactivation an of now reactivating Great our X,XXX idle important our Plains comprised Prisons Bureau idle step Facility beds

the and such located actively reactivation and facilities We modern these upside level, forecast. could agencies to at well and federal state represent to government our continue market to any current

Arizona, recent bed of contract effective State the Facility renewal two-year during in the became quarter. and Correctional first Additionally, the X,XXX of Rehabilitation our Kingman

rehabilitation Georgia, Our and our departments state Mexico correctional including Indiana, services Oklahoma, support post behalf Care GEO of Continuum programs facilities of under deliver and in Florida, enhanced release Virginia. high Corrections services on New Arizona, quality

services academic rehabilitation include focused high diplomas. those care Our in helping programs equivalency on attain school our

We with the instructions delivery a smartboards all our significant of equip have of made at classrooms investment academic to in to aid facilities. our

market when placements. lead focused job not also that developing have based We on but to certification only on also vocational programs completed, are

addiction. many of from individuals abuse treatment an substance our programs suffer our important because Our piece services care the in of rehabilitation are

and and across were to provide our have of designated extensive based and based delivery based programs we based dorms enhance faith facilities these facilities programs. housing character faith units Our the character

markets, Finally, for to contract the in new services will XX for Australia of on our State operationally July X, primary XXXX preparing for of with across generate to start our are revenues respect is $XX new prisons in commence This GEO. health approximately Victoria. which contract annualized delivery million in the of international expected we public the healthcare

turn I time, Care. a like would the to Calabrese over to this Wayne review At GEO of call for

unit morning, our you, an division. everyone. on with pleased Thank Care GEO our operational am James. update Good services provide to I reentry business starting

XX reentry facilities our certifications. and audits, successfully reviews, PREA quarter, internal including government audits, underwent services accreditations first third-party the During

certifications. from One of accreditation of received score Correctional PREA our reentry of a perfect while two residential American Association residential our the centers centers with XXX%, reentry received

including seven the residential contracts contracts Federal also four of with We renewed Prisons. Bureau reentry

While to and hopeful residential the affect pandemic improve remain continues eventually rates residual levels. reentry centers, rebound will our to occupancy we trends to at in occupancy impact of continue pre-pandemic the the

and On strong quarter continued during first revenue growth experienced the in pandemic the other deliver one to reentry programs the ago. compared XXXX hand, our growth non-residential to of year

reporting across day at states. parolees provide community and centers up including XX quality behavioral non-residential and XX cognitive X,XXX for Our different probationers high based treatment to services locations

in continue demonstrate the and Outcome centers program risk impact several reports employment to for generated gains clients positive sobriety gains of of for terms reduction, participants. these

average we of We support post-release Programs delivered in-custody division. to In and completed approximately first Moving hours programs daily Care our rehabilitation rehabilitation population GEO approximately participants. of the XXX,XXX Continuum reentry of In-Prison enhanced and quarter, programs. XX,XXX to an in-custody

awarded Our academic programs awarded X,XXX certifications. approximately XXX high school equivalency diplomas and vocational our approximately vocational courses training

programs we awarded Our to sessions. X,XXX treatment treatment completions completions XX,XXX substance program and XX,XXX behavioral individual cognitive abuse over close achieved and program behavioral

they during We provided to we post-release almost also GEO services allocated return released support to quarter. individuals $XXX,XXX first facilities individuals as and XXX communities from support the over to their

community GEO with Our of of Continuum address treatment that in-custody needs enhanced services Care individuals. including critical cognitive integrates rehabilitation, released behavioral support post-release

the can be U.S. served million their changing how in lives. people in Our proven on justice X.X criminal better award model winning provides a program the system

Electronic Services and segment. Supervision our to Monitoring turning Finally,

reported first we quarterly million first compared delivering the $XXX of of quarter quarter approximately During growth of revenue the to strong XXXX. XXXX,

the the suite a services Monitoring technology case ISAP provides subsidiary supervision products of agencies monitoring BI and Homeland and the behalf level, BI management, almost compliance around years. on and Electronic solutions on the under state full U.S. and Security holistic ICE provided of country. and has technologies behalf federal supervision At of Our solutions, XX for local federal, of program Department

ISAP Under has tenure, achieved of BI’s program levels compliance. high the

monitoring the number ISAP the of under participants is of XXX,XXX. electronic supervision technologies today, approximately program in As

we ISAP could remain the developing high and result higher as a services in service on May focused innovative quality counts Title solutions. delivering on XXth new expiration participant technology of While scheduled and provider, XX

means recently this tracking with new and provides launched To achieving end, device policies we government VeriWatch, that additional objectives. agencies a wrist-worn GPS compliance their an with established of

since law the smart believe is potential state-of-the We BI wrist enforcement a device. and for into a VeriWatch technology typical agencies looking is and for other corrections community changer game device art worn taps and

efforts test testing. as and expand the in past corrections into began County, technology, to use to modification XX-day in innovative announced heard, Santa area new of Clara ever contract. XX-day run Denver the and of couple VeriWatch in California, As in an devices month, yesterday this contract had ISAP award opportunities our VeriWatch we important for just to marketing our of a of George put the VeriWatch an mentioned, step We to you this our community initial a have we marking the participants ISAP with under first

over I’d call like the this for turn remarks. time, At closing to Gordo Jose to

our closing, In pleased quarter. are we with Wayne. for first very results Thanks, the

have we on full our our operational the deliver while to positioned year well for key and we reduction our at leverage EBITDA objectives are XXXX excellence. year, all As our financial for guidance adjusted we revenues said, to maintaining believe target achieving and namely times commitment

some upside, by the Although our of populations policy budgetary business have our facilities at challenges selective for state monitoring key are our opportunities the activation potential constraints which and as and only our including reentry divisions in that or remain secure out largely such ICE of of believe in federal sale we non-core control, beds, some we electronic of clients, decisions new transportation our and also of ISAP increases idle counts, additional and assets. participant wins our contract managed the units,

services continuing various U.S. including committed agency We provide business across high of our to and DHS all time Marshals to long and lines stand clients ICE, quality clients. our to fully our state

clients new existing business. and complementary lines with new to are we we growth, as of or as historically to these with where lines areas will our agencies service in adjacent have and with seek that both our Going forward, well continue operated, service

routine that to providing criminal the underserved abuse are the from counseling, substance multiple psychological safe including core managing populations find diverse We to competencies rehabilitative and placement quality in areas post-release patients large going securely individuals corporate offering stages high justice a delivering umbrella, the monitoring the relocation and through operationally same processing to and or housing transition individuals from the transporting system unique operate securely comprehensive electronically individuals management day-to-day various hard case pretrial needs illnesses under have and immigration of system successfully job lifesaving complex facilities, manner, to and vocational difficult including individuals in medical treatment, society, our of requiring to to in needs safely variety with ranging to examinations care to acute looking services housing services system, and criminal treatment, healthcare government justice world-class professionally, chronic training, XXxX positive to conditions a custody of services, contributors serious becoming with humane clients.

as our successful for areas for wide executing as business leverage existing ranging can well where to new pursue the to our opportunities compete excel. and growth business lines, plan We in both these in track in within competencies our lines future, new record

We several company’s have diversified and skill better core so. had have successfully sets the to never we and ourselves believe do to continue history times resources we throughout

industry the its our we service employees are always envelope believe have the also continue to as who premier world. best of the kind We the in in eager pushing GEO keep to provider

will take be That our glad and remarks questions. completes we to

Capital. today from question question. your Joe first our ahead with Noble And Please Instructions] go comes [Operator Gomes from

morning. Good

Good morning.

ICE, call and count it appears figures programming am six XXX,XXX XXX,XXX that seems that are of total to weeks to the the of under by at four the past weeks if some released the SmartLink it over under have So the program. program, looking about under about stabilized ISAF I

What to the feel gives that program are that through continue to this better to saying as trying saying that here think get it you you half you continue Just your government view will will decline? first of that partners year. are decline to a

them month think Title about face that’s from we face to heard is with that fact to next the XX I there will to what have exceeding budget wanting have their having remarks and But a cut away. costs. they concern to going aside

decline for assuming count, think, that of of be So we significantly situation, think conservative stabilized, could the being but I possible ICE increase. could it’s the in that position obviously all in as it’s and there taken an it participant have be correct us unpredictable continued could a as I well

guaranteed switching more the to for get you ICE does lot detention And you of Thank for increase are contracts above enough. processing that. to the the a Fair much minimums? to contracts, need guaranteed minimum your guys facilities, population how facilities, there

are Some quite or full. Texas of full those less the facilities our actually are almost along half facilities particularly Southern full, border. than Other

So an going what location increase, it’s there be determined although and by think we but it. with not happens a could basis budgeted we away, have national XX on the Title geographic for

get projections, the if better what at then am And consensus from they quarter? looking a second is your Okay. of the least just below first handle consensus estimates quarter. are expectations driving down at then quarter trying you kind lower are for the as I to to second

Brian. Joe. Hey, It’s

as So decline the mentioned, seems and we different have of year, to you significant more That I a mentioned during ISAP through the of as George year, rate. -- noted, the think slowed there to counts. a are was earlier participant the in the first part part

then in to the changes half year that, numbers. modest And that assume stable of of decline type or rate the improvement second we

of decline second and then still the so that we transition. seeing are And quarter, some

there. on going what’s that’s So

turn in in on normalized the the of that or and see when a as normalized then that’s we activation activation a the third Australia. And as of some, basis the hinting quarterly quarter, care basis the contract contract well health

if largest, potentially they about happens, move inmates. that one guys out have answer and occur? some California’s type the there case ability the know can there. impacting to to but Would those Okay. California in throw the largest guys happened you to if have be assist X,XXX it flooding don’t their you and Thanks the facility of that. not, I for I article if or state State will of worst inmates this of might scenario that corporate, Reading

cooperate with of aware But will always particular government… that not work am our to story. I we

Okay.

them with to. actively not we engaged able are are we or whether clients … if

a California previously And for out-of-state relationship we with on had beds. have contractual

Yeah.

-- we what really of Yeah. available a… We have are that don’t beds be at McFarland that to have XXX used any

Yeah.

California of in don’t State available any capacity female we facility, state that. than other the have but

Okay.

although Okay. what once of in there And the just stocks the the question XXXX. have on. again, a guys your have out one again, to shorted stocks are get you over of somewhat one less difficult of record strong, GEO that of having answer. still XXXX performance me And to opinion I versus GEO’s what more trying it’s despite shorted pass then to, last Stock Again, part are of the -- thinking to maybe a are most and going will lend shorts one for kind most them it The missing would kind But New GEO Exchange? as year, in you York story the

and for they as recently of to the fully well-diversified that difficult occur we times opportunities that in for are us think wait mass are we have and they allows don’t company wait occurred I us appreciating critical a to kind Oklahoma. through

as footprint as in large So internationally and four for this almost we very have a got decades. been domestically, have business well we

different provider we in everything types services, and Monitoring high administrations, done houses, they Republican a facilities are as in Electronic whether or need there under an devices. as well government services have of essential monitoring for these security We and because well is are between, Democratic halfway and

of populations do So you to care are of our do very people. can own healthcare, large We people. foodservices. everything our of We care take we We do diversified. own take

Thank in get Thanks. you. queue. Great. I will Okay. back

ahead comes with question. question Mitra from from next Please Our Ramgopal Sidoti. go your

the morning Good for Yes. questions. thanks and taking

year-over-year first there related to Just that payroll the on all Is tax of expense the revenue. the you pretty increase else? was of terms as in saw or quarter, a operating something much percentage

last year-over-year year? From

Yes.

overall just labor and the drives the taxes in growth additional up in ISAP counts Payroll participant costs.

We more hire have participants. we staff as to add

the then And forward? comfortable labor hold on to follow-up are a in terms costs going of cost How Thanks. and on the you able being labor market. just Okay.

well. So the wants I year to to to as last our to the state were receive facilities, work one months that we significant adjustments then folks our number those to to to given and on at costs. respond touch partners staff but XX adjustments of with during have ops contracts if state a able But we offset our correctional can of

of even to our retention, and some no would maybe I recruiting we benefit. able to as well that our say margin improve which rates as pay, impact improved So were significantly our has and efforts

into as those of contracts. then Standards without Contract detail on -- from Act law the getting around mostly wage inflation contracts because reminder, Labor rules federal And contracts much are of Fair on too Act, our Service just structure the the we a and protected those and

monitor are, say, So is right and as the I right last the we we that managed that to only are area and where think year side forward. would we of exposed our more continue on on going and state described through contracts I that we now we will

Electronic Monitoring nicely. then to business And clearly Thanks. the growing just Yeah. switching

traction big about XX% VeriWatch business? of think revenue you this your of this build or as just I your you of XXXX. introduce can the a out in it’s be especially think pie now to revenue increasing continue How piece pie gains

it be. have can I how big like don’t we think forecasted

strategies. the that think about Wayne think and markets may think develop that is Jose that up we continue diversification give customers in open and increased talked This or product. We innovate well. with said thing VeriWatch I some there as area opportunities us opportunities our some I may to as new some of with important existing of

any the XX, of our conservative there trying upside Thanks. there’s it that et real have relates the And on really you facilities, to -- about Title potential is reactivation and know if as out guidance get there? idle to How I cetera. the how sense certainly guidance, then flip is mentioned on a downside Okay. you risk side, any

we little range the expecting a beginning I year, to what are level. the don’t we our wider but bit the if from of think, at than we hold risk think to narrowed continue that and the have end expectations range some a Well, we normal reasonable captures of have lower the the range downside

curious just in see And how I be Okay. that was you it I thoughts enacted? asylum proposed of the you would rule know terms Thanks. around if to you see that, country third if initial your impacting it’s but was relating potentially to early,

mean know to Well, but I for while we will are people that would that more think, processed is their be upheld. if rule be going into cases being placed detention, don’t that removal,

We Post immigrants awaiting mindful there’s various masking thousands end of there of news has Title including reports Washington been Mexican in organizations XX. are of hundreds the the by the area several for that where

the to XX,XXX Commissioner crossings is Acting the per after of Customs Miller, May double Troy day And to expecting XXth. illegal U.S. Border more and Protection than

we don’t is in we to what fit. they facilities planning with to see the taking So for but place as that’s ICE deal available and bed capacity have that, preparation know situation exactly

then, great. the Australia. That’s finally, No. obviously, international, on growth our in addition especially nice And

Just domestic aside international curious the some your have you are but on know lot if plate the you a additional seeing front, again opportunities not I on there? just

very all now mental separate a contracts services providing health being REIT. a Well, the health been REIT. restricted possibly We of pursue we no a longer the in area were where rules under and other to services health We as of previously as do can we health previously organized under available we things REIT. facilities, were We hospitals, for those did services are third parties. prior psychiatric now were us. to providing We becoming general have

taking for again Thanks Okay. the questions.

question. Violino next comes Our ahead from Wedbush. from Brian with go Please question your

question. Appreciate for taking my it. Thanks Yeah.

also, Are was in decline there XX in you November Title an On when anticipation call, surge off. similar a if itself the at occupancy seeing provide May you quarter intentional can roll expected far how you ICE mentioned trended ICE update within of December this to the speak XXth date in trend to occupancy firm so given had and pretty seems willing today in then of can the originally sort to we or any in a occupancy And point? just April? that was last

anticipated in We up. was had we where Centers of did Then capacity normalization have situation of was December XX, the ICE occur. in anticipated in seen of occupancy Processing similar a end the went that which a front Title not reduced

happen of because massing this we of been what’s don’t in and exactly go went our number of it recently is a Southern again now up life starting historically Now on down it’s kind individuals know these our never There’s to back border to unprecedented. event time. going and

are are ready don’t made? So assist federal decades we -- we that providers as professional know. are being and they fit. service doing as stand this government, well as we for the see have the plans But We been governments to what state

Thanks. the is and know you see them? that I just program, not may days it that’s VeriWatch comment be just it ISAP, early from ETD on is program you of one with with something wanted existing with replacing Great. it’s overall this work much. to to ISAP your you the something I And could to able too specifically, technology I But me, confirm, relates that growing working to some still more as or be guess, going

similar that’s we monitors watch The and and and the look watch information to is favorably operational an be to we innovation significantly It’s ICE. seen think watches it’s ankle modern a that be than It for by more provides -- will which very but new looking received, remains think used. good functions desired inappropriate. have as participants phones it’s that than more been less provides to restrictive it

waiting the that low for are of doesn’t needs their trying ICE who constructive, a pursuing the make so device administrative information. for less and ICE sharing to monitoring participants the It of non-detained to go who we needs people the are and docket on cases. to security less obtrusive who We are It of just those that following are qualify ICE and not the goes meets as us. of pending the individuals in and closing of

Great. Thank you.

ahead Our from go question. Please your comes Kirk with Ludtke next from Capital. Imperial question

call. you everyone. the Hello, for Thank

the that’s is couple comment you mix on like of looks follow-ups bit It you sequentially, -- I monitoring program. can but about could day from curious down little revenue December man per there? mix, down versus bit quarter. a Just a I am just a so pricing comment about little the suspect

adjusted people the distant as changed remaining It’s pricing of just and price, driven. mix been from changed, the of it’s mix exactly just but have our none has participants the role the it program, who it’s mix has actually average that, the

versus bit similar? terms of or the it. the CapEx day -- of Thank talk device little about average that’s can versus Got per day, VeriWatch you appreciate you. then CapEx economics per it. per a I in revenue the And

obviously been haven’t provide trying information product. and would around think there it’s of data the difficult, of don’t new of but out sort be It’s market innovative, kind even has really bids but released yet Not to competitive we that I any that kind that. there

that of information provide So we right to are now. type hesitant

And think increase move which idled close the did has then the Understood. did That business. Lawden that facility I And prompted [ph] expires I or for later been changed, Thank appreciate. a mean Great congratulations or you. facility does on on this year? secondly, what population what Oklahoma then, the it. the contract new while. What’s Plains, for there? Got

Oklahoma will the I And that discontinued also our months. and is had course better of facility they think as considered staffing. operation think with of the the will area contract which facility general be better to six Hinton, recruitment announced, state that well the lease a CoreCivic a be Oklahoma next at I transferred -- as over State that of for Oklahoma facility, a

I was think the that issue. driving

a is a larger cost part think some to facility related in facility state, much our but bed large CoreCivic the savings bed to, facility, was the X,XXX is X,XXX I facility. There that’s

Lawden the begin two as the we to far and As due months renegotiation that’s for negotiation. that over contract the of next course expect

notice to Does Oklahoma mean that’s model? moving I of that a this lease. Does -- I more that lease Okay. imply is a

used in have model previously CoreCivic. years previous lease a they -- Well, with

location. but So they different in the a lease just are model, continuing actually

it. Got

Okay.

become lease? Lawden imply doesn’t it So that a will

No. No.

Got it.

very appreciate. Thank Okay. you I much. Well,

to the of And call conclude like to The ladies no am Chairman I this questions. conference turn George remarks. session and the back closing at Group I’d Executive question-and-answer gentlemen, showing Zoley, any additional and over for point, GEO

joining forward next Well, on addressing you today’s to call you on us one. and look the thank for

today’s presentation. you do for that, And today’s conclude we thank ladies We and with gentlemen, conference will attending call.

lines. now disconnect your may You