NYSE$GEO

GEO Group Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported financial results for the first quarter of 2022.

The GEO Group reported strong operational and financial performance for Q1 2022, with total revenues of $551.2 million and a net income of $38.2 million. The company has reduced net recourse debt by approximately $80 million during the quarter and is focused on further debt reduction.

  • Total revenues for Q1 2022 were $551.2 million.
  • Net Income Attributable to GEO was $38.2 million, or $0.26 per diluted share.
  • Adjusted EBITDA reached $125.2 million.
  • The company reduced net recourse debt by approximately $80 million during the first quarter of 2022.

Headline financials

Total Revenue

$551M

Previous: $576M-4.4%
EPS (adj)

$0.64

Previous: $0.60+6.7%
Adjusted EBITDA

$125M

No prior period
Net Debt

$2B

Previous: $57M+3408.8%
Capital Expenditures

-$13.8M

Previous: -$27.3M+49.5%
Free Cash Flow

$24.4M

Previous: $23.3M+5.1%
Net Income

$38.2M

Previous: $50.5M-24.4%
Operating Income

$81.5M

Previous: $65.6M+24.2%
Gross Profit

$166M

Previous: $148M+12.0%
Cash & Equivalents

$599M

Previous: $289M+106.8%
Total Assets

$4.61B

Previous: $4.43B+4.1%
R&D Expense

$0.00

Previous: $0.00

Revenue & EPS history

GEO · Revenue · Quarterly

$551M

Q1 2022-4.4%vs Q1 2021
Beat estimate in 9 of 12 quarters(75%)
ActualEstimate

Forward guidance

GEO has updated its financial guidance for 2022. They expect full year Net Income Attributable to GEO to be between $145 million and $157 million on annual revenues of approximately $2.2 billion.

Tailwinds

  • Expect full year Net Income Attributable to GEO to between $145 million and $157 million.
  • Expect annual revenues of approximately $2.2 billion.
  • Expect Adjusted Net Income to be in a range of $1.17 to $1.27 per diluted share.
  • Expect full-year 2022 AFFO to be in a range of $2.30 to $2.40 per diluted share.
  • Expect full year 2022 Adjusted EBITDA to be in a range of $453 million to $471 million.

Headwinds

  • Second quarter 2022 guidance reflects the previously announced discontinuation of our managed-only George W. Hill Correctional Facility contract in Pennsylvania in early April 2022, representing approximately $47 million in annualized revenues.
  • Experienced favorable cost offsets during the first quarter of 2022, which we do not expect to re-occur in subsequent quarters.
  • Full-year 2022 guidance continues to reflect the expected non-renewal of our two U.S. Department of Justice direct contracts that have option periods expiring during 2022, with combined annualized revenues of approximately $90 million.
  • Guidance also reflects the impact of higher wages and bonuses for our facility staff.
  • Expect effective tax rate for the full-year 2022 to be approximately 29%, exclusive of any discrete items.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.4%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+2.9%

Avg return

30 days after

60%

39 / 65 earnings

Positive

+21.2%

Q3 2016

Best reaction

-14.9%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+20.5%+16.7%+37.7%
Q4 2025-14.9%-7.9%-8.1%
Q3 2025-8.3%-11.7%+1.8%
Q1 2025-9.9%-13.9%-11.3%
Q4 2024+6.1%+0.5%+13.7%
Q3 2024+0.9%+5.5%+25.2%
Q2 2024-2.9%-1.1%+2.3%
Q1 2024+1.0%+7.2%+5.2%
Q4 2023-0.6%-1.5%+7.1%
Q3 2023+5.1%+2.4%+7.0%
Q2 2023+1.9%+1.0%-3.0%
Q1 2023-6.2%-3.0%-1.2%
Q4 2022-4.7%-1.0%-14.6%
Q3 2022-10.9%-9.7%+21.7%
Q2 2022+8.4%+4.7%+29.8%
Q1 2022+10.6%+9.6%+5.7%
Q4 2021-4.2%-4.8%-4.0%
Q3 2021+4.7%+2.4%-17.2%
Q2 2021+10.9%+11.6%+15.1%
Q1 2021+7.3%+8.0%+53.3%
Q4 2020-2.9%-17.4%-9.8%
Q3 2020+9.2%+20.3%+19.7%
Q2 2020-6.7%-3.1%-3.7%
Q1 2020-11.7%-13.1%-10.1%
Q4 2019+1.0%+5.6%-27.0%
Q3 2019+0.9%-2.1%-10.3%
Q2 2019-0.3%+1.2%-2.1%
Q1 2019-2.5%-0.3%+5.3%
Q4 2018-1.4%-3.2%-21.8%
Q3 2018-0.2%+1.5%+4.7%
Q2 2018+1.9%+0.4%+1.2%
Q1 2018+3.9%+9.3%+10.5%
Q4 2017-2.8%+0.0%-7.1%
Q3 2017+2.1%+5.8%+0.7%
Q2 2017-3.7%-4.3%-2.6%
Q1 2017+0.9%-0.1%-2.4%
Q4 2016-2.7%-3.7%-5.5%
Q3 2016+21.2%+28.0%+42.3%
Q2 2016+2.3%+1.4%-34.4%
Q1 2016+1.6%
Q4 2015+2.2%
Q3 2015-9.3%
Q2 2015+0.8%
Q1 2015+1.3%
Q4 2014+1.6%
Q3 2014-3.0%
Q2 2014+1.9%
Q1 2014+0.7%
Q4 2013+1.9%
Q3 2013+0.6%
Q2 2013+1.5%
Q1 2013-0.7%
Q4 2012+0.4%
Q3 2012+0.9%
Q2 2012+2.8%
Q1 2012+0.4%
Q4 2011+0.0%
Q3 2011-2.6%
Q2 2011+1.5%
Q1 2011+1.3%
Q4 2010+1.1%
Q3 2010-2.0%
Q2 2010-2.2%
Q1 2010+0.2%
Q4 2009+1.9%

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