« MA: 1,600 Illegally Detailed at Ludlow Prison Each Year | Main | Judge Rules that U.S. Has Broad Powers to Detain Noncitizens Indefinitely »
June 16, 2006
FL: GEO Signs Interim Contract for Operation of Civil Commitment Center
The GEO Group, Inc. Signs Interim Contract For the Management and
Operation of the 545-bed Florida Civil Commitment Center
GEO to Assume Management of the Florida Civil Commitment Center on July 1, 2006
http://phx.corporate-ir.net/phoenix.zhtml?c=91331&p=irol-
newsArticle&ID=871936&highlight=
BOCA RATON, Fla., June 13 /PRNewswire-FirstCall/ -- The GEO Group, Inc.
(NYSE: GGI) ("GEO") announced today that it has signed an interim
agreement with the State of Florida, Department of Children and Families (the "Department") for the management and operation of the 545-bed Florida Civil Commitment Center (the "Center") located in Arcadia, Florida. Under the terms of the interim agreement, GEO will assume management of the existing Center on July 1, 2006. The interim agreement is expected to generate approximately $7.7 million in operating revenues during 2006.
As previously announced on June 6, 2006, GEO received a notice of intent to award a contract from the Department for the management of the Center under an operations contract which would have an initial term of five years and three five-year renewal option periods and which is scheduled to begin on January 1, 2007. The operations contract is expected to generate approximately $20.0 million in annual operating revenues during the first year. In addition, under the contract award, GEO would begin construction of a new 660-bed replacement facility in Arcadia, Florida. The sale of
tax-exempt, government- sponsored bonds would finance the construction of the replacement facility, which would be leased to and ultimately owned by the State of Florida. GEO would assume operation of the new facility upon its completion in 2008 under the terms of the operations contract. The interim contract is not related to the previously announced contract award.
George C. Zoley, Chairman of the Board and Chief Executive Officer of GEO,said: "We are thankful for the opportunity to provide interim management services at the Florida Civil Commitment Center beginning on July 1, 2006.We appreciate the confidence placed in our Company by the Florida Department of Children and Families, and we look forward to the signing of a long term contract for the management of the Florida Civil Commitment Center and the development of a new state-of-the-art replacement facility. "
The GEO Group, Inc. ("GEO") is a world leader in the delivery 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, Canada, and the United Kingdom. GEO's worldwide operations include 62 correctional and residential treatment facilities with a total design capacity of approximately 50,500 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 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:
(1) GEO's ability to successfully pursue further growth and continue to enhance shareholder value; (2) GEO's ability to access the capital markets in the future on satisfactory terms or at all; (3) risks associated with GEO's ability to control operating costs associated with contract start-ups; (4) 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; (5) GEO's
ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (6) GEO's ability to obtain future financing on acceptable terms; (7) GEO's ability to sustain company- wide occupancy rates at its facilities; and (8) 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.
06/13/2006
Posted by lois at June 16, 2006 10:22 AM