Blog Coverage: GEO Group Bags Two 10-Year Contracts with Federal Bureau of Prisons in Texas
LONDON, UK / ACCESSWIRE / May 30, 2017 / Active Wall St. blog coverage looks at the headline from private prison operator The GEO Group, Inc. (NYSE: GEO) as the Company announced on May 26, 2017, that it had bagged two 10-year contracts from the Federal Bureau of Prisons (BOP). The 10-year period is inclusive of the renewal option periods. The total value of the two contracts for the 10-year period is approximately $664 million. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.
One of GEO Group's competitors within the REIT - Healthcare Facilities space, Welltower Inc. (NYSE: HCN), announced on May 05, 2017, its financial results for Q1 2017 which ended on March 31, 2017. AWS will be initiating a research report on Welltower in the coming days.
Today, AWS is promoting its blog coverage on GEO; touching on HCN. Get all of our free blog coverage and more by clicking on the link below: http://www.activewallst.com/register/.
Commenting on the matter, George C. Zoley, GEO Group's Chairman and CEO said: "We're pleased to have been able to strengthen our long-standing partnership with the BOP with these important contract awards. Our Big Spring and Flight Line Facilities will play an important role in helping the agency meet its long-term need for high quality, cost-effective services that comply with the BOP's mandated standards."
Details of the contracts
The two contracts are for the continued housing of criminal aliens under the custody of BOP at two facilities owned by the Company at Big Spring Correctional Center in Texas. One contract is for GEO Group's Big Spring Facility with 1,800 beds and the second contract is for GEO's Flight Line Facility which has 1,732-beds.
BOP had issued a Criminal Alien Requirement (CAR) 16 in 2015. CAR 16 are long-standing procurements issued by BOP, and GEO Group was awarded these contracts as per these requirements. During the tenure of 10 years, both these contracts are expected to generate total revenue of approximately $664 million. GEO Group has already factored in the revenues from these contracts in its financial guidance for FY17 which it disclosed on May 02, 2017.
About GEO and its public-private partnerships
Founded in 1984, GEO Group is a real estate investment trust (REIT) that is the world's leading provider in the delivery of diversified correctional, detention, and residential treatment services to government agencies around the globe. It not only builds and develops state-of-the-art correctional and detention facilities and provides management services, but also offers evidence-based rehabilitation, post-release reintegration, support services, and supervision of individuals.
Its operations are spread across the US, Australia, South Africa, and UK. As of April 2017, GEO Group's worldwide operations include the ownership and/or management of 143 facilities totaling approximately 100,000 beds, including projects under development and are supported by a team of approximately 23,500 professionals.
In US, GEO Group has been in a public-private partnership with several federal agencies including with BOP since 1990s. In April 2017, GEO Group bagged a contract with the US Immigration and Customs Enforcement (ICE) for the development and operation of a new 1,000-bed Detention Facility at Conroe, Texas for approximately $110 million. In April 2017, GEO also completed the acquisition of Community Education Centers (CEC) to expand its reach in Correctional, Detention, Re-entry, and Rehabilitation Services.
In December 2016, GEO Group signed a five-year contract with Charlton County and ICE for 780 beds at its facility in Folkston, Georgia, for housing immigration detainees, and it was named the Folkston ICE Processing Center.
Stock Performance
On Friday, May 26, 2017, The GEO Group's shares were slightly down 0.93%, finishing the day at $30.84 with volume of 659.12 thousand shares exchanging hands by the close of the trading session. In the last six months and previous twelve months, shares of the Company have soared 42.29% and 39.42%, respectively. Moreover, the stock surged 28.75% since the start of the year. Shares of the Company have a PE ratio of 22.09. The stock has a dividend yield of 6.10% and currently has a market cap of $3.86 billion.
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