The GEO Group, Inc. (GEO) 7 Nov 232023 Q3 Earnings call transcript

Good day and welcome to the GEO Group Third Quarter 2023 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Pablo Paez, Executive Vice President of Corporate Relations.

Good morning, everyone. And thank you for joining us for today's discussion of The GEO Group's third quarter 2023 earnings results. With us today are George Zoley, Executive Chairman of the Board, Jose Gordo, Chief Executive Officer, Brian Evans, Chief Financial Officer, Wayne Calabrese, Chief Operating Officer and James Black, President of GEO Secure Services.This morning we will discuss our third quarter results as well as our outlook.

call question-and-answer the conclude will with session. a We being on will our conference non-GAAP call website live also is we This Investor webcast at information. basis discuss investors.geogroup.com.Today is information A non-GAAP issued this and to included we in GAAP supplemental reconciliation disclosure the basis basis from morning. release press results

matters. including respect beliefs your of forward-looking much include questions safe These Additionally, today, forward-looking the to and give to we statements the we information answers of our current the may with expectations in various discuss regarding intended within are will the response laws. statements securities to fall provisions harbor

the actual as XX-K, reports.With X-K please materially a Our in Executive XX-Q from allow statements various that, turn this Zoley. George me of our the including factors to contained forward-looking Exchange differ call Form may result Chairman, and over our and those results Securities to in filings, Commission

quarter business focus the trends our adjusted and update $XXX on an we approximately million. million. on segments.This I'm review our quarter net approximately guidance for third XXXX continued of joining of you for on morning third approximately the reduction reported of each quarter call. debt our $XX.X million $XXX for and third management GAAP us senior revenues discuss financial of and results, balance provide earnings our Thank income our year, to by financial our team EBITDA today the joined to of

X Grande continued with X-year our XXX the And Diego several U.S. units for our was At direct our business the term. for in leased steady important a Detention at Texas Center and company-owned quarter renewed renewed San Service. Processing One Secure company level, the diversified Our unit third in term. X-year deliver XXXX Region second contracts at we bed Western Marshal Facility federal bed performance.During Rio business was a operational financial to Services the contracts.

terms contracts Transitional that X with Florida. XXX ICE include our for in renewed own year Bed Broward respective company Center also X We

for XXX,XXX approximately across our entry Our Supervision government's our if Program, these company services August full across procurement XXXXX increase since owned existing Florida we continued XXXXX renewed in Victoria air supervision bed, and division Montgomery sequential quarter, for Intensive our third Blackwater XXX Services electronic reporting At the the the contracts in deliver approximately bed, the early Correctional public July of in bed new driven in South quarter level, increase XX% term our Reentry our contract our to under contracts and only particularly to contender to X-year long contract to secure GTI quarter strong up Rehabilitation X,XXX contract activation in relatively was of its X X new The support generate number and future.Internationally, Australia.Turning services $XX beginning our ICE. increase could in Center state protest for our term.During a to also individuals. contract remains This runs ISAP Facility regions. centers for contract our a due management non-residential steadily transportation million our Texas.Populations third This X award central in revenues of the provide in by Texas a in state has the hope Processing for River Appearance The ICE increase months. emergency centers and remained GEO and we services federal experienced or reflect our the of residential third day to of in stable existing the processing revenues total a term for we've have prisons Processing to operations segment. state revenues. to healthcare company at be for owned it Center, to Since bid renewed primarily a results multi-year increase. reflect participants of western monitoring continue recently for ICE the an our in results centers.Our

the of in has last believe ICE over increase experienced budgetary contemplated previously pressures financial participant timing not remained the uncertain. quarter in the months, X the While we've ISAP stable in Congress moderate our face and remains count to continues appropriation issued largely that bills fourth of was passage beginning the the guidance.We that

financial Security XX. at the for appropriation includes ICE the currently Security monitoring census the for fund detention And funded and would ISAP federal under of funded request to the additional range proceedings.Additionally, require to face beds the Appropriation provision which ICE to agreement fourth Congress, beds programs. which program. presently level expires could has long down be for for to individuals The federal yet continuing version their term days, the on XXXX, of available the XX,XXX non-detained November Congress increases electronic duration government or short-term fiscal year for a resolution a be submitted in will under would ISAP bills detention White of alternatives the shutdown. detention flat the believe all increase X. within is to in an We on a funding current is House bill agreement the government XX,XXX balance appropriations unable we slightly began now once on counts for Appropriations funding approximately these alternatives funding Given keeps of Congress to to tightened XX a Homeland of The the to factors, that of the continuing has or the a year. entire the bill of docket our October reach Homeland short beds, the government overall an term again capabilities prospect participant slightly supplemental estimate ICE guidance quarter includes next use House and reach If the ICE the for assumes is the and XX,XXX. government The version which Senate current the the at resolution,

process to DHS the and monitor appropriations ICE. providing services on high quality congressional continuing behalf focused and are We of on remain

on We counties to reported, federal, of are our publicly are continuing the agencies.As and to jurisdictions country to are sector use local government across some facilities several current idle has overcrowding facilities potential in been and state market jails private of our efforts these their modern, local exploring generate the is experiencing challenges state priority reactivated address either or well-located key which to strategic our a net debt they leased We local our annualized believe management focused GEO agencies.Finally, our we these company. EBITDA challenges. significant adjusted could federal for or increased are if facilities that under reducing remain

at During quarter, approximately $X.X the our $XXX and presently. billion million by in debt debt net total reduced we are third net

Our reducing future. objective the continue in by is debt approximately net $XXX to year per to million million $XXX

remain of financial be to refinance Brian in possible portions to will results and now more call debt will over time.I also that we detail. the address to able at We our earliest our guidance Evans hopeful turn the

of Today GAAP reported we EBITDA reported adjusted million $XXX approximately $XXX revenues approximately $XX.X quarterly of net on million. approximately income We million. of quarterly

services supervision increase higher recent of a our revenue reentry continued for third emergency day activation quarter quarterly from centers post new reflect were results the third during our health our transportation support in to revenues to during contract improve due air XXXX. of residential the provide almost as our contract Victoria, XXXX XXXX, to pandemic. offset third from international we year-over-year revenues, from increases reentry XX% Australia.Additionally, segment quarter non-residential care XXXX. and increased centers our experienced lower revenues in the ICE revenues populations the quarter and higher from segment by quarter have in These services Third our revenue and by Similarly, monitoring year-over-year reporting electronic XX%

also third to interest Our compared results reflect debt increase for third of of year. million interest approximately XXXX.Moving August the the our due and in quarter restructuring quarter of $XX we rates the the in of expense balance guidance to higher completed an to net XXXX

the previous the of fourth for quarter in during a increase XXXX Our assumed quarter. ISAP participants guidance moderate

stable George last we to budgetary participant bills the months, uncertain. of in that the contemplated timing appropriations remains over Congress remained moderate previous was the we pressures, mentioned, that ICE X have continues of count While increase face in passage our experienced the not and guide.As ISAP relatively the believe has

quarter for As range these quarter be of of of range a million and our GAAP in a to to to million.We factors, of expect $XXX EBITDA purposes flat quarterly be range a that revenues assume net XXXX have will ISAP guidance million year.This million $XXX $XX count income the million. result $XXX adjusted of the budget of $XX in XXXX in fourth we the for we $XXX to participant a fourth million down now balance morning, updated for guidance provided updated assumptions, the slightly and our to

$XXX year be $XXX to full approximately of on expect income net $X.X in range we XXXX, the of For million GAAP billion. to a annual million revenues

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

between full guidance our the and $XXX be We expect in to year history. XXXX company's $XXX adjusted of represents adjusted level full million EBITDA highest XXXX our million.Our year second annual EBITDA

representative with services is of and our and from of supervision segments. other several electronic platform.We growth in declines and segment revenues diversified throughout continued Our diversified the in been to strength XXXX our offset of services performance have steady monitoring earnings able our

idle remaining and services potential fully annualized not include and which secure beds does flows X,XXX cash provide total any our revenues facilities, of upside could reactivation guidance Our meaningful approximately to our the of reactivated.

years, upside has utilization with guidance.With XX in Congress.Moving specifically, monitoring necessary respect ICE utilization the levels all our the ISAP sole services Additionally, forward, capital ISAP successfully the increases the is significant and bipartisan in support BI ICE increase of decide or to generate our to structure. going these of by to electronic to for high our bills further program. ICE of provider appropriation participant count under assist to to are should approved over ISAP the agency the the resources once provided has achieving of solutions detention could BI beds increases compliance

million. debt by the XXXX, ended approximately of third quarter $X.X total the net approximately our total billion. We with During quarter net of we reduced debt $XXX

for was closed Our the New in by third quarter which the debt million, facility Bo sale in supported $XX September. reduction approximately during our Robinson Jersey reentry of

year further net in expect is to our of our rates ability objective future, potentially $XXX our decrease, reduce Our XXXX.Going to stabilize the end debt. bringing million approximately by interest to billion total and the $XXX per net net approximately our forward debt million continue to enhancing $X.X by to debt we to reduce

debt. overall our future bolster our will As increases annual or half reduce used under be floating in interest future It is annual approximately our cash interest rates would free interest of to rates can further debt -- our a bolster rates in reminder, and decreases flows.

to complement can usually also for to further reentry alternative the additional residential typically sale These uses. repurposed in factors located of potential We buyers. interested be explore often potential assets assets.Our efforts, expect and of are sale reentry in urban including larger result a pool residential these can centers areas,

respect We contract sale.With reentry facilities, secure are these currently have additional on to we for to facilities are either agreement. for and our management lease actively focused agencies marketing idle two federal facilities traditional local or marketing a that we reactivation state under services

be However, of adequately the sale of refinance time. reflects hopeful of possible earliest portions assets to we at price debt consider our their we able may also value.Finally, if larger the these some remain the to

including options interest of credit our hope borrowings able the capital credit is expect XXXX. revolving to new XXXX, existing be As comprised credit within our tranches, as reminder, would approximately in in we have million, million, we to efforts, tranche.We the well and to strong continue currently revolving our facility to which $XX our to agreements be prior achieve goal first a address have matures tranches, in $XXX outstanding We and we under matures a investors participate maturity explore in would institutional to near savings several which first comprehensively which facility, the interest to these banks, and to flexibility from of of future X cost step, shareholders under refinancing would return either the address who to covenants no our future. gain transactions. more with have partners, relationships banking our these received Through as and as

of will for enhance our We call shareholders believe Black segment. all for reducing debt Services our review deleveraging on James and continue I our will time, over this time.At value that to the to Secure over turn focus GEO a

It an Secure to update GEO on is provide my Services. pleasure

certifications. and And During facilities Prison accreditation reviews, Correctional Services services Six quarter the XXXX, an or of third accreditations, Association facilities score certification. XX of internal average underwent of facilities another the Rape X with Secure audits, of Act our our XX.X%. successfully PREA received party Elimination audits, received PREA third including from American government secure our

division Transportation million partners during continue Populations the at stable. contract miles and completed third the government agency X.X detention States our GEOAmey be transfer our of GTI venture Our approximately U.S. overseas U.K. quarter.Moving Marshals the in to at joint current and our level. federal the to facilities driven United

around suitable mission lack services out it important for U.S. Marshal its near Service. where of space all the facilities courthouses, services agency bed We a providing criminal detention proceedings. federal the as carries Marshals generally U.S. for that Our facing custodial support capacity country and pretrial needed these of detainees federal believe facilities provide alternative the there's

and Service processing Marshal detention facility Bed term, During company for contracts Grande company ice quarter, leased center Region processing we Bed the for for winter on our processing to U.S. our XXXX centers.Moving our X-year Rio centers. ICE the our XXX X-year a Western third renewed with

XX,XXX During we Montgomery X terms July. contracts centers, and Texas processing bed have the our experienced a Center.Across for XX% South respective third our since population processing center, ICE bed increase beginning ICE renewed we X-year at XX,XXX the company processing ICE of Center, XXXbed Transitional quarter Broward in our owned our

beds, government federal also and a implementation XX,XXX. estimate appropriations would funding continuing a funding control of next and government As version days, submitted resolution long-term supplemental XXXX. a the XX. House by again no timing the resolution XX for appropriation between currently short census XX,XXX reached fiscal of at under shutdown.As the a government, decisions, a not would in compromise immigration If short-term White which increase a is term the not The provider beds. play on long-standing the we present House, that the Congress XX,XXX the beds.The continuing or maintain could have decisions policies. of Congress or face runs or federal bill ICE the the fund Bill is be November is service no Appropriations beds under current appropriations of ICE funded through active George has would Security for prospect in those agreement Homeland an The Senate House reached noted, for to while be a Senate yet ICE package U.S. also U.S. detention considering version at We year over the more federal the of the the congressional to role broadly, government funded

and on Our ICE, support focus providing to we as ready the remains any services the with stand quality agency needed. services highest to additional

in health care.Our correctional ICE health number at facility. processing doubled care centers Health behalf entrusted services Our ICE secure ICE access than offer residential human is all our generally commitment providing staff those more ICE delivering a of quality rights the track of long-standing have our centers support with on respecting of care and typical to a staffing consistent record, to processing of to around-the-clock processing care our services. professional state the care centers

Our legal to are registered centers access libraries space counsel offer ICE at also daily processing accommodate and counsel.Our ICE that to with and our processing culturally legal legal and we resources, have centers and meetings also dietitians. provide by approved centers meals are sensitive dedicated

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

also processing activities. recreational centers ICE Our offer to quality access

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

procurement services partners. hope a providing the multiyear have these a to air historically provided of processing the we logistical contract, remain months. support emergency also under XX is operation full our for an strong also of centers.During can Transportation X support The services bid transportation our division currently for contender government ICE agency services quarter, third at term federal and began for GTI state the these future.Moving contract and for in which under for ICE could We secure primarily our GTI protest have ICE

corrections correctional Florida, rehabilitation in Indiana, New across including behalf Virginia. enhanced support Mexico departments and of Oklahoma, programs state Georgia, X facilities on Our deliver services high-quality states, Arizona,

we During in Facility continue current Correctional across primary our during under X,XXXbed to Australia our which quarter, delivering for services term.With the new XX health facilities, contract the third new with Victoria. we respect markets, contract the X-year secure Blackwater for public $XX idle care we prisons the to third annualized health revenues.Finally, state is This our beds. expected of in approximately a totaled contract managed-only million quarter, approximately renewed X,XXX Florida market to our River in began services international generate

discussions, these active populations over counties jail country Care. well local recent turn help are facing this a result address of as for number our as We local would to with are had in time, to the like have GEO believe a overcrowding I particularly across Calabrese increases challenges modern We located and can a agencies post-pandemic. facilities and call of review challenges.At the Wayne of

operational our to Care update pleased with Services provide on our unit, GEO an starting I'm business division. Reentry

reentry Bureau reentry also quarter, internal During accreditation X day both centers pre-certification.We reentry XXX%, X renewed residential receiving reporting XX facility the of of audits, well reviews, government of reentry of American and audits, third X as successfully underwent the received contracts, our centers contracts. from including X Correctional scores the Federal and residential Prisons perfect third-party Association, contracts including pre-certifications. received our center non-residential X our residential as with accreditations services

and centers XX states. residential their rehabilitation reentering reentry across housing communities XX provide transitional individuals Our programs for

practices key locations XX our rate centers and including recidivism.Moving for non-residential for GEO Programs and approximately quarter, Care provide to and All treatment high-quality, the probationers cognitive attesting their up day parolees across reporting and XX In-Prison behavioral lowering approximately improvement Continuum services, outcome community-based to of track metrics Our states. showed at to record of our evidence-based third during division. the X,XXX

the post-release population an X rehabilitation XX states in-prison average XX,XXX of XX daily third delivered During to approximately support states. Continuum individuals at in-custody in programs quarter, enhanced we individuals and sites sites in at Care approximately and of X,XXX X

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

that equip significant vocational on lead with aid but classrooms to all We of at all needs. to a on to our also delivery have our investment based job placement the are smart programs focused have only facilities.We in made of market of when certification academic also instruction not completed, boards developing

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

facilities dorms provide quarter, or rehabilitation faith-based extensive delivery third also of character-based enhance XXX,XXX And approximately Our hours character-based faith-based we designated across to of in-custody we programming. important and and programs. our programs.During facilities completed units the housing have the these

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

awarded X,XXX and from and to as for programs also completions treatment Our completions, allocated released they over return GEO program post-release sessions.During individual facilities achieved XXX approximately third more support than $XXX,XXX substance the over we quarter, treatment abuse XX,XXX services individuals program XX,XXX behavioral their behavioral communities. we cognitive to

X-plusmillion to GEO and on our proven address community turning award-winning believe in criminal of services cognitive individuals. services, our treatment lives.Finally, people behavioral in Care U.S. services the integrates their critical that program supervision justice system electronic can monitoring how changing needs be the segment. better of Our a provides served model support post-release program enhanced released including in-custody rehabilitation Continuum with We

level, to the the relatively subsidiary provides agencies over required the number the X monitored last to under and full across monitoring a individuals. Security, has suite of stable remained on of months contract BI products Homeland behalf and Department and ISAP local the supervision participants at federal Our XXX,XXX state XXX,XXX solutions, with At approximately of be country. our federal, of technologies

for we remains and continue BI's we of to under While of levels be as previously services participants XX of services currently And assume BI solutions, time. pressures, monitoring remarks. all over expect compliance will believe of slightly balance increase down ISAP and compliance the to the Supervision in the number quarter, budget technologies and the technology time, new and noted, moderately ISAP has to support to previously appropriations that has the like of high of Gordo the has ISAP for this to solutions flat holistic expected and that face explore had year.We the to supervision, provided by case of to agency government years. bills to our for needs being participant passage federal fourth for management, I'd the almost forward, budgetary uncertain.BI that turn beginning achieved we going ICE purposes management counts Jose considered innovative timing over begin to and technology Appearance call the the continues it ICE Congress the variety partners.At U.S. been tenure, closing case new Under using of Program government's a now

debt clients federal in-service flexibility international operating closing, markets.We of believe and where of beds our new our the underpin our these opportunities, secured to costs leverage current adjacent and/or is we the these based our with increased of in increases cash are successful potential. in that to continue the managed-only and services divisions and various upside growth also of enrolled real potentially these number and segments, diversified agencies, non-core comparable centers valuation and our are our In before our remain beds, values future.We complementary areas with on portions in in believe presence.Based company that to, current have existing either the seeking both value as ISAP, X,XXX to current that industry.As we talent to that those opportunities, that a plan We our transportation potential processing market and assets lines taking value. the debt more substantial capital upside our gain best where our continue under replacement we aggregate valuation participants we of well significant our business electronic our clients or of company-owned to employees, shareholders with our under of of estate the is we existing and by public management secure track alone for to generally equal pursue growth, construction past, believe and/or as record our in valuation own conservative are price facilities our total reduce performance government selective approximately assets.We financial In the reducing the during sale who We believe we we geographic of or agency sales return selectively operational secured to of on the future new XX,XXX local, components, business. of a flows interest GEO we overall ICE and to new on stock expect to the the valuable have populations believe activation located XXXX. believe costs current at state this in net than significant compelling of estimated facilities our other beds facilities into several our that assets diversified approximately better a has contract enterprise modern case idle or or and at account we of And in company. wins excess further lease monitoring, available facilities reentry, units including focused order have to of steady on delivered positioning third quarter in refinance our or have many expressed

at almost entrusted critical both state We services years.We to presidential remain and Republican have well-being through the federal an XX essential levels that our our a government and can provider complex, trust with those and consistently to prioritizes consummately the in steadfast of care. administrations professional that projects, commitment and being resource-intensive as for organization delivered our clients Democratic

would We carry are to mission take we our clients to as who questions. ready future stand we on basis to to employees meet evolve. purpose and a and glad XX,XXX the and continue worldwide with professionalism, great demands of may over of proud remarks, completes continue daily That our our be they out our

Instructions] today with Gomes first [Operator question The Joe NOBLE from comes Capital.

So to the wanted Secure start segment. I Services out on

declined wondering, population segment there since are the is because just actually July. that mentioned in X revenues facilities population significantly was guys the yet But increases of to ICE You went of had that majority happen the beginning how I their the guaranteed revenues up year-over-year. to would think last contract was top to have the terminated Or year meet was minimums? whether -- facility off for lost of there the another down? or segment that there head that trying been drove just the my that

No.

think was combination the Northlake first, of this I there Facility.

last I think in year. discontinued September that of

So BOP facility. that as in was there a

it’s in that $X or -- a year probably about million million to $XX away. Now worth quarter revenue per went

that's So in not last quarter in this and quarter. the it was

think the was Okay. XX,XXX end the continuing I in also population. that, exceeding you think are of ICE the I about seen, September, a mentioned latest And that you populations the that Are similar to populations? increase at see I've XX,XXX. ICE type of in ICE your

of in have minimum used provide capacity have guarantees the We minimum ICE majority increase the processing above those had approximately in of guarantees. to being the continue our facilities the And that that's centers. X/X an

news. good That's

Yes, it is.

million here program? are to the that that be type that -- like of a -- thing prepared about everyone remarks capacity law last I yet. could the monitored. X you to see? increases saw being potentially alternatives on in not you not your number of see citizens U.S. put in would that program guys have guys are potentially that's And Obviously, I the House type handle of that proposal what -- was Or you would Great. split been large? mentioned But Could detention, into that not amongst type something a to you of hasn't need the people do people? are think of

is this Joe, Wayne Calabrese.

as may into docket who well-resourced whether and one in the I non-detained think government seen, to all programs well remains would the or of we're $X in or be place million program, wouldn't the move so be well to put certainly. required, -- capable all more of they up one gearing positioned, be of but

positioned well detention the resourced. a facets are different and as there of And lot alternative to to we're said, programs. So I

gear the requirement We country would have the if contract. that to cover be to offices all and became that able the of over up

the And are currently more about maybe talked of can some but color that? a you then you with discussions don't much know about give ICE in I how restarting maybe idle of facilities. you little on the of idle facilities, some

periodically of facilities. existing reviews facilities as the as idle capacity the ICE well Well,

what and they know have. They of we operating, capable facilities. So currently know reactivating we're we're

them, same with So do stay with and touch we in they us. the

couple and any legal little been about get There's the have one on And of and has of illegal proposed GEO? Last Anything cases potentially of those discussion. could been bit I'll I impact negatively that there's in legal current queue. back that a cases then for or last one come that immigration me, quarters, from changed ICE. think some

be for and a the desire as of ICE restrict I current what sure don't could cases would it. a my What by people last so. not have come not into that the many Maybe program some country. mind there's some to. what to think is of couple parole referring review individuals the I processing days put to cases. in I people through centers -- means legal No, you're I'm the further legal It there's challenges maybe read their

Securities. question next Wedbush with comes The Violino from Brian

even was potential funding further to be doesn't it but mentioned call, you could grow funding ahead clearly, ISAP. a as out fruition? can to participants I you're ISAP. the appreciate XXXX grow that come major there not to some it So out policy pushed if last on gets ISAP looking guidance, But relates changes factor going know further, is and giving

higher same we standpoint. a Just funding kind did congressional from least levels a thoughts numbers a ISAP when your of ago curious the see lot were at because year

we've budgetary certain Homeland level in and the other said ICE a prior population count of have Department divisions calls much level. existing the did think well Security I as as program Well, they around. move that yes, have budgetary money within ISAP a of we under flexibility in higher And

redirect priorities towards becomes the to So for it to funding decision those the really where and a put as priorities. agency

agency with So the instructions the that by it's but or White House. internal decision really by an oversight or happen, the and could

your if guess missed if your you your updated last for for with guidance, just clarify, could rates, fourth what's is not occupancy? guidance assumption but that just climbing I assumption for them I'm of levels? And the ICE I occupancy assumed kind the detention it. you today, gave Got I ICE quarter what underlying steady but think sure within it, here, guidance curious underlying the obviously,

consistent Pretty quarter-over-quarter.

any facility significant step-up haven't We assumed in reactivation existing or a population the level.

then at bit margins services looks secure little the one a If look quarter-over-quarter. for like And trended the operating last it I net down me. segment,

on where term? think there's expenses guess margins if for segment there? of the any in general onetime wondering the things of in And trend you thoughts Just sort near will that I the kind

moved that think you're facilities, the will, levels, utilization in they're up.So about minimum X performance these I our facilities. back financial as And talked were George I those were populations and we the seeing normalized paid what near if our or have the for were as used think facilities, their which get Services, that also underutilized, prior higher we've expected calls are is that of in or we've those in for at at said, but levels of Secure would utilization being at most levels. when fixed this on levels those occupancy seen to being payments margins and paid sort their occur you quarters, last increase,

revenue levels performance. increases increase in occupancy and if increase in utilization we So should further, some or see

from question comes McCarthy Sidoti. with Brendan next The

continuing currently place? the short-term White resolution in -- recently. potential funding I there that in supplemental mentioned you funding House Firstly, under there QX? was be initiative from And benefit on the excess any a will the Is believe of

in tens know several requested. would be provide And exactly -- is how that would we that funding but several for, been to previously don't it many what believe thousands. beds addition has I

of you the timing into with you a participants wondering, kind to funding if what capacity, maybe look able to just increase? the can curious ISAP what just maybe if would secondly, ramp-up then And ramp-up significantly were like? like looking quantify the levels potential might to of more number look process quantify Are just of XXXX, a

It's to hard that answer question.

we do facility ability more have quickly. our add around probably do various scale the that? locations As staff to to at have you Wayne up how said, Boulder, And at the and You'd fairly country. Colorado

ramping fairly electronic very Boulder up almost different made of locations. footprint our a the capable we devices in quickly. But country-wide XXX are large and are have facility, of We

detention We have different are like of stay as of they to much ankle the side, and in us the scale I discounted the populations ICE the And can capabilities and capabilities to frequent up can think monitoring. kinds those technologies, facility. that monitors applied And our a at from to be different to have touch supplies. at relative on is watches, that less we for those what to aware cost -- and different with we have the XXX,XXX programs larger phones using there's available devices

have of scaled focused the persons government's to folks I'd offices are officials have of on one processing at and needed. into that more visits, administration's – will in them, visits, that office based border are is and on and are add, priorities, with all up the as can a our scale that management, who enrollment border, repurpose lot ICE A closely up depend, however, would be home be policies ability non-electronic to or all the work as deal of working the that's case in-country coming the great that who which programs coming traffic services personnel such and across of on the to dedicated the

lumpy. It can very It's lumpy. be

from question comes next The with Securities. Gibas Northland Greg

or I for quarters? the near-term I maybe guess, wanted up significant there's to, notable any upcoming ask renewal first if or in just contracts

Not this year. No.

terms it to delevering, in as then good And progress net debt the there of reduction. relates

facilities. additional X the mentioned You

New I the was the the think kind Jersey sale that it of facility, accelerated delevering. of

maybe do I'm be any happen? or the levels if those event? Or asset curious additional of about have would when share timing QX of you You sense you facilities. those. interest X like Would sales could this And a talked

No.

targeted think right facilities we and properties. they're those now, have got on brokers we've there's that have But contracts don't any place I trying to properties. -- active we those

you like I do I How facilities, believe hitting increased as X,XXX net And the for to and when as the customer? you're increasing at is X after those it kind kind kind levels levels which Or up I do occupancy idle beds. think how facilities? guess you just just you of lastly, those you of reactivation existing that about how curious just marketing occupancies margins things. relates count the obviously of to of weigh like -- -- facilities increase versus weighing occupancy that, idle Is weigh

are It's their regional really up the customer priorities where to on basis. a and

lot are DHS the our other locations northeast we and and reasons. north utilized that ICE We either locations. particularly services the therefore, states, provided the what have and long of of eventually. been attractive recent of And But in for county out cetera. southern the the facilities, business, will have meet think -- of speak, financial more occupancy have are it facilities, in modern much those will et most political more and which a generally that that locations are because ICE Texas, closely so And standards to haul we a attractive, do updated makes prime in is the or jails pulling previously particular belt Louisiana, obviously, for and lot have be

Kirk from Ludtke with comes question next Imperial Capital. The

proposal? would you the of follow-ups. just do monitored think under ISAP, to With I respect a how House have many be couple people

It a monitored a Well, of topics. lot generous can is cover word.

a oversight, They in We pilot program social monitoring, be new higher that's could ISAP. mentioned case under example, to for electronic were of could, ago. a been service numbers Watch substantially in year areas. They management. ask with terms accommodate for The In folks They is be again. the other that could more

activated So on less But be that on programs there -- to in numbers either they different there's a and more ways less-intensive importantly, that should a lot take. accommodate could of set they basis. be descending the direction remains their budget that are growth remains be policy different the a the set.And to can be

people day, hour every could be every monitored some every day. example, of For

people addition weekly, All group people in or is for periodic support deciding those management level of some Some of tools particular are people biyearly. and ICE case available services, some that direct monitoring appropriate person in to monthly, to persons. what

can program be The opted.

thing? that's something past? the is contemplated this new been this a Or kind in Is of

we to, available to just presently different that referring The were ICE. programs is

services. So pricing about a intensity funding they of And of, levels for matter particular at performing of want know different those time. services. guess, have these capabilities they It's and that their to money put most we what's just our priorities where levels different in and important I of

GPS until seen to final all element of cases remains that's of new in that monitoring decided. House be the think what part in I be will the proposal is they're the and legislation

just be were docket. most at a the it So theory, legal if this of could, in it's implemented, But actually to proposal that capture case time.

quickly. do time. I shifting the then just gears And appreciate

contract? believe, that state on pricing On that typically, I any you level, have the July I contracts those state on to state you? place X. increase get your been able for of take know repriced, Did

that need allowed money. there And COVID a years Yes, shortage them I because in states, and fortunately, there's play. we at they there how a those use costs. of they have, the funding last increase for a think couple was guess lot Because of drive part was -- I of labor that COVID, particular, a X forces got to -- is to labor in the do just

fairly cover increase So contract, our we've in costs primarily increase in labor costs. been medical to state the consistently able pricing the and to

were monies recovering You spent? that were already being

process. improving Yes. position that financial through And our

Can the you magnitude you for this the price increases quantify of fiscal got year?

of wages costs. and a similar all we've the I health almost I increase seen for years. 'XX years required prior I CPI because or XX% pretty think going that thought a COVID to labor costs, years think like in average years X X and last increased XX%. probably in It's increase in and the X% from care years, increase it's was the now, about into much years, the how it's significant And

question next with Hymowitz The Jordan Philadelphia Financial. from comes

to on First, in not was ICE stats last well, the years on I don't ever ever, beds, call, -- up this aware in level XX.X% highest that what X going the know you're that if so. or out and the came actually

quarter was I I your in higher in assume guidance those way So any the numbers? mean, that based fourth on

No.

approximately I said based guidance for our we've running quarter. third on where As earlier, the is been at

average? the higher the than higher, did quarter only quarter but is fourth not much the beginning So end

border quarter getting people the a it's a on and the lower prior different because weather years. changing of In prior than lot And usually is coming years, of fourth the southern population colder, across.

could the decades. for way historically different. year, seems be it it that's was Now it This

as margin, know the than but average levels it's correct? is not And as CXW, I much at margin incremental higher the these

facility by varies better. should incrementally contract be is how depending It but it priced, the on

other the next And think of there? they're with what's about beds earnings and not XX% In or are we the occupied, about if or should unoccupied, get X,XXX better margin words, that are do out they roughly average worse? substantially

in margin range. so should -- historical line our be with Well, which EBITDA margin to the be they in should for owned is XX% average XX% facilities, the that be facility, they're should -- owned

would because have it average a So operations managed that be facilities margins our only little margins average margins. lower and higher than include our international

XXX but And business you correct? higher mean, that you currently talking ISAP, multiples them of this XX% monitoring, through. I of of could mean, I that them, which potentially or million comes just get if could has you Is we're XXX if all don't half proposal next year for be people substantially margins this are like that mentioned I new that's be X with to mean the monitored.

quantitatively, different Yes, pricing different programs as as monitoring. of for far intensity discussed, as but levels there's we've

could be said, a of and it every as But or I year. or intensive a few the throughout month months As be would a a once monitoring times little most day. on daily as basis couple the

that me question, were of number last beds final could in you the administration? the And remind during of place Republican

got maybe they over XX,XXX, think XX,XXX. I

think is number. XX I right the

be if election should could Republicans if we again, the XX% number an of So higher. the beds head year, towards win,

be. Could

The conference Group. I the concludes turn like George Executive over session. back This GEO Zoley, our to Chairman question-and-answer for to would

forward for call to look this next on call, you you. February. Thank us we the Okay. and on in Thank speaking joining you to

now you has for today's Thank concluded. presentation. conference The attending

may You now disconnect.