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GEO Group Q2 FFO Rises; Lifts 2014 Outlook - Quick Facts

GEO Group Inc. (GEO) reported that its second-quarter 2014 funds from operations rose to $51.88 million from $46.93 million in the same quarter last year.

Normalized Funds From Operations increased to $51.9 million or $0.72 per share, from $43.9 million, or $0.61 per share, for the second quarter 2013.

Second quarter 2014 Adjusted Funds From Operations or "AFFO" rose to $60.9 million, or $0.85 per share, from $52.3 million, or $0.73 per share, for the second quarter 2013.

Net income was $38.9 million, or $0.54 per share, up from $34.2 million, or $0.48 per diluted share last year.

Quarterly total revenues was $412.8 million up from $381.7 million last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.77 per share and revenues of $404.57 million for the quarter.

Compared to second quarter 2013, GEO's second quarter 2014 results reflect the activation of 1,500 company-owned beds at three facilities in California in November 2013; the assumption of management at three managed-only facilities totaling 3,854 beds in the State of Florida in February 2014; a 400-bed contract capacity expansion at the company-owned Rio Grande Detention Center in Texas during the first quarter 2014; the opening of new day reporting centers in Pennsylvania and California during the fourth quarter 2013 and first quarter 2014; and improved occupancy rates across GEO's diversified real estate portfolio.

The GEO Group announced that on August 5, 2014, its Board of Directors declared a quarterly cash dividend of $0.57 per share. The quarterly cash dividend will be paid on August 29, 2014 to shareholders of record as of the close of business on August 18, 2014.

For the third quarter 2014, GEO expects AFFO to be in a range of $0.81 to $0.84 per diluted share. On a GAAP basis, GEO expects third quarter 2014 net income per diluted share to be in a range of $0.50 to $0.53 and third quarter 2014 revenues to be in a range of $410 million to $415 million. Analysts expect the company to report earnings of $0.77 per share and revenues of $406.68 million for the third-quarter.

For the fourth quarter 2014, GEO expects AFFO to be in a range of $0.81 to $0.84 per diluted share. On a GAAP basis, GEO expects fourth quarter 2014 net income per diluted share to be in a range of $0.50 to $0.53 and fourth quarter 2014 revenues to be in a range of $410 million to $415 million.

GEO increased its financial guidance for the full-year 2014 and issued guidance for the third and fourth quarters 2014. GEO increased its full-year 2014 AFFO guidance to a range of $3.18 to $3.24 per diluted share, or $229 million to $234 million. On a GAAP basis, GEO increased its net income guidance for the full year 2014 to a range of $1.93 to $1.99 per diluted share.

GEO increased full-year 2014 revenue guidance to a range of $1.626 billion to $1.636 billion. GEO increased its full-year 2014 Net Operating Income guidance to a range of $465 million to $470 million. GEO increased its full-year 2014 Adjusted EBITDA guidance to a range of $338 million to $343 million.

Wall Street currently is looking for fiscal year 2014 earnings of $3.05 per share on annual revenues of $1.61 billion.

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