BOCA RATON, Fla.--(BUSINESS WIRE)--Aug. 8, 2012--
The GEO Group, Inc. (NYSE:GEO) ("GEO") provided an update today
on its ongoing evaluation of a potential conversion into a real estate
investment trust ("REIT") during its second quarter 2012 earnings
GEO has engaged the law firm of Skadden Arps as its legal advisors and
Bank of America Merrill Lynch and Barclays Capital as its financial
co-advisors to assist with the comprehensive review. In the middle of
July 2012, GEO submitted a request to the United States Internal Revenue
Service for a private letter ruling in order to better inform GEO's
board of directors regarding the potential advantages and disadvantages
of a REIT conversion and to determine whether GEO would qualify to
convert to a REIT.
Once GEO and its advisors complete the comprehensive analysis being
performed regarding a potential REIT conversion, GEO's board of
directors will be adequately informed and in a position to determine
whether to move forward with a REIT conversion. If GEO's board of
directors concludes that it is in the best interest of GEO to proceed
with the REIT conversion, GEO would seek to complete the conversion by
the earliest conversion date which is January 2013; however, due to the
short timeframe, the REIT conversion could be delayed until the next
available conversion date which is January 2014. A conversion by GEO
into a REIT would require the approval of GEO's shareholders.
The GEO Group, Inc. is the world’s leading diversified provider of
correctional, detention, and residential treatment services to federal,
state, and local government agencies around the globe. GEO offers a
turnkey approach that includes design, construction, financing, and
operations. GEO represents government clients in the United States,
Australia, South Africa, and the United Kingdom. GEO’s worldwide
operations include 20,000 employees, 109 correctional, detention and
residential treatment facilities, including projects under development,
and 75,000 owned and/or managed beds.
This press release 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 the possibility and timing of a REIT conversion.
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: (1) GEO’s analysis of the
advantages and disadvantages of a REIT conversion; (2) the results of
GEO's private letter ruling request to the IRS; (3) GEO’s ability to
successfully pursue further growth and continue to enhance shareholder
value; (4) GEO’s ability to access the capital markets in the future on
satisfactory terms or at all; (5) risks associated with GEO’s ability to
control operating costs associated with contract start-ups; (6) GEO’s
ability to timely open facilities as planned, profitably manage such
facilities and successfully integrate such facilities into GEO’s
operations without substantial costs; (7) GEO’s ability to win
management contracts for which it has submitted proposals and to retain
existing management contracts; (8) GEO’s ability to obtain future
financing on acceptable terms; (9) GEO’s ability to sustain company-wide
occupancy rates at its facilities; and (10) other factors contained in
GEO’s Securities and Exchange Commission filings, including the forms
10-K, 10-Q and 8-K reports.
Source: The GEO Group, Inc.
The GEO Group, Inc.
Pablo E. Paez, 1-866-301-4436
President, Corporate Relations