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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): February 22, 2010
THE GEO GROUP, INC.
(Exact Name of Registrant as Specified in Its Charter)
Florida
(State or Other Jurisdiction of Incorporation)
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1-14260
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65-0043078 |
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(Commission File Number)
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(IRS Employer Identification No.) |
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621 NW 53rd Street, Suite 700, Boca Raton, Florida
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33487 |
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(Address of Principal Executive Offices)
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(Zip Code) |
(561) 893-0101
(Registrants Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c)) |
Section 2 Financial Information
Item 2.02 Results of Operations and Financial Condition.
On February 22, 2010, The GEO Group, Inc. (GEO) issued a press release (the Press Release)
announcing its financial results for the quarter and fiscal year ended January 3, 2010, a copy of
which is incorporated herein by reference and attached hereto as Exhibit 99.1. GEO also held a
conference call on February 22, 2010 to discuss its financial results for the quarter and fiscal
year, a transcript of which is incorporated herein by reference and attached hereto as Exhibit
99.2.
In the Press Release, GEO provided certain pro forma financial information for the quarter and
fiscal year ended January 3, 2010 that was not calculated in accordance with Generally Accepted
Accounting Principles (the Non-GAAP Information). Generally, for purposes of Regulation G under
the Securities Exchange Act of 1934, Non-GAAP Information is any numerical measure of a companys
performance, financial position, or cash flows that either excludes or includes amounts that are
not normally excluded or included in the most directly comparable measure calculated and presented
in accordance with GAAP. The Press Release presents the financial measure calculated and presented
in accordance with GAAP which is most directly comparable to the Non-GAAP Information with a
prominence equal to or greater than its presentation of the Non-GAAP Information. The Press Release
also contains a reconciliation of the Non-GAAP Information to the financial measure calculated and
presented in accordance with GAAP which is most directly comparable to the Non-GAAP Information.
The Press Release includes three non-GAAP measures, Pro Forma Income from Continuing Operations,
Adjusted EBITDA and Adjusted Free Cash Flow, that are presented as supplemental disclosures. Pro
Forma Income from Continuing Operations is defined as income from continuing operations excluding
start-up/ transition expenses, international tax benefit, and loss on extinguishment of debt.
Adjusted EBITDA is defined as net income before net interest expense, income tax and depreciation
and amortization, excluding discontinued operations, start-up/ transition expenses and loss on
extinguishment of debt. In calculating these adjusted financial measures, GEO excludes certain
expenses which it believes are unusual or non-recurring in nature in order to facilitate an
understanding of GEOs operating performance. GEOs management uses these adjusted financial
measures in conjunction with GAAP financial measures to monitor and evaluate its operating
performance and to facilitate internal and external comparisons of the historical operating
performance of GEO and its business units. Adjusted Free Cash Flow is defined as income from
continuing operations excluding depreciation and amortization, income taxes, loss on extinguishment
of debt and the other items referenced in Table 4 of the Press Release. GEOs management believes
that the Adjusted Free Cash Flow measure provides useful information to GEOs management and
investors regarding cash that GEOs operating business generates before taking into account certain
cash and non-cash items that are non-operational or infrequent in nature.
GEOs management believes that these adjusted financial measures are useful to investors to provide
them with disclosures of GEOs operating results on the same basis as that used by GEOs
management. Additionally, GEOs management believes that these adjusted financial measures provide
useful information to investors about the performance of GEOs overall business because such
financial measures eliminate the effects of unusual or non-recurring charges that are not directly
attributable to GEOs underlying operating performance. GEOs management believes that because it
has historically provided similar non-GAAP Financial Information in its earnings releases,
continuing to do so provides consistency in its financial reporting and continuity to investors for
comparability purposes.
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The Non-GAAP Financial Information should be considered in addition to results that are prepared
under current accounting standards but should not be considered a substitute for, or superior to,
financial information prepared in
accordance with GAAP. The Non-GAAP Financial Information may differ from similarly titled measures
presented by other companies. The Non-GAAP Financial Information, as well as other information in
the Press Release, should be read in conjunction with GEOs financial statements filed with the
Securities and Exchange Commission.
The information in this Form 8-K is being furnished and shall not be deemed filed for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that Section. The information in this Form 8-K shall not be incorporated by
reference into any registration statement or other document pursuant to the Securities Act of 1933,
as amended.
Safe-Harbor Statement
This Form 8-K contains forward-looking statements regarding future events and future performance of
GEO that involve risks and uncertainties that could materially affect actual results, including
statements regarding estimated earnings, revenues and costs and our ability to maintain growth and
strengthen contract relationships. Factors that could cause actual results to vary from current
expectations and forward-looking statements contained in this press release include, but are not
limited to those factors contained in GEOs Securities and Exchange Commission filings, including
the forms 10-K, 10-Q and 8-K reports.
Section 8 Other Events
Item 8.01 Other Events.
On February 22, 2010, GEO announced that its Board of Directors has approved a stock repurchase
program of up to $80.0 million of GEOs common stock effective through March 31, 2011. The stock
repurchase program will be funded primarily with cash on hand, borrowings under GEOs revolving
credit facility, and free cash flow. GEO believes it has the ability to fund the stock repurchase
program, its working capital, its debt service requirements, and its maintenance and growth capital
expenditure requirements, while maintaining sufficient liquidity for other corporate purposes.
The stock repurchase is intended to be implemented through purchases made from time to time in the
open market or in privately negotiated transactions, in accordance with applicable Securities and
Exchange requirements. The program may also include repurchases from time to time from executive
officers or directors of vested restricted stock and/or vested stock options. The stock repurchase
program does not obligate GEO to purchase any specific amount of its common stock and may be
suspended or extended at any time at the companys discretion. a copy of the press release
announcing the repurchase is attached hereto as Exhibit 99.3.
Section 9 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
99.1 |
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Press Release, dated February 22, 2010, announcing GEOs financial results for the quarter and
fiscal year ended January 3, 2010 |
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99.2 |
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Transcript of Conference Call discussing GEOs financial results for the quarter and fiscal
year ended January 3, 2010 |
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99.3 |
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Press Release, dated February 22, 2010, announcing GEOs $80.0 million stock repurchase program |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.
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THE GEO GROUP, INC.
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Date: February 26, 2010 |
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/s/ Brian R. Evans
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Brian R. Evans |
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Senior Vice President & Chief Financial Officer
(principal financial officer) |
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