Q4 2023 The GEO Group Inc Earnings Call

Okay.

Pressing the star key followed by zero.

Good day and welcome to the Geo group first quarter 'twenty to 'twenty three earnings conference call.

After todays presentation, there will be an opportunity to ask questions.

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To withdraw your question. Please press Star then two.

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Operator: Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then 2.

Please note today's event is being recorded.

After todays presentation, there will be an opportunity to ask questions.

I would now like to turn the conference over to Pablo Paez Executive Vice President of corporate Corporate Relations. Please go ahead.

To ask a question you May press Star then one on your telephone keypad.

Thank you operator, good morning, everyone and thank you for joining us for today's discussion of the Geo group's fourth quarter and full year 2023 earnings results.

To withdraw your question. Please press Star then two.

Operator: Please note, today's event is being recorded. I would now like to turn the conference over to Pablo Paez, Executive Vice President of Corporate Relations. Please go ahead.

Please note today's event is being recorded.

I would now like to turn the conference over to Pablo Paez Executive Vice President of corporate Corporate Relations. Please go ahead.

With us today are George Italy, Executive Chairman of the Board, Brian Evans, Chief Executive Officer, Wade Calibrating, President and Chief Operating Officer, Shayne March acting Chief Financial Officer, and James Black President of Geo secure services.

Pablo E. Paez: Thank you, Operator. Good morning, everyone, and thank you for joining us for today's discussion of the Geo Group's fourth quarter and full year 2023 earnings report. With us today are George Zoley, Executive Chairman of the Board, Brian Evans, Chief Executive Officer, Wayne Calabrese, President and Chief Operating Officer, Shane March, Acting Chief Financial Officer, and James Black, President of GeoSecure Services. This morning we will discuss our fourth quarter and full year results, as well as our outlook. We will conclude the call with a question and answer session.

Pablo E. Paez: Thank you operator, good morning, everyone and thank you for joining us for today's discussion of the Geo group's fourth quarter and full year 2023 earnings results.

Pablo E. Paez: With us today are George Italy, Executive Chairman of the Board, Brian Evans, Chief Executive Officer, Wade calibration, President and Chief Operating Officer, Shayne March I can chief financial Officer, and James Black President of Geo secure services.

This morning, we will discuss our fourth quarter and full year results as well as our outlook we.

We will conclude the call with a question and answer session.

This conference call is also being webcast live on our Investor website at investors <unk> Geo group Dotcom.

Pablo E. Paez: This morning, we will discuss our fourth quarter and full year results as well as our outlook we.

Today, we will discuss non-GAAP basis information a reconciliation from non-GAAP basis information to GAAP basis results is included in the press release and the supplemental disclosure we issued this morning.

Pablo E. Paez: We will conclude the call with a question and answer session.

Pablo E. Paez: This conference call is also being webcast live on our investor website at investors.geogroup.com. Today, we will discuss non-GAAP basis information. A reconciliation from non-GAAP basis information to GAAP basis results is included in the press release and the supplemental disclosure we issued this morning. Additionally, much of the information we will discuss today, including the answers we give in response to your questions, may include forward-looking statements regarding our beliefs and current expectations with respect to various matters. These forward-looking statements are intended to fall within the safe harbor provisions of the securities law. However, our actual results may differ materially from those in the forward-looking statements as a result of various factors contained in our Securities and Exchange Commission filings, including the Form 10-K, 10-Q, and 8-K reports. With that, please allow me to turn this call over to our Executive Chairman, George Zoley.

Pablo E. Paez: This conference call is also being webcast live on our Investor website at investors <unk> Geo group Dotcom.

Additionally, much of the information we will discuss today, including the answers. We gave in response to your questions May include forward looking statements regarding our beliefs and current expectations with respect to various matters.

Pablo E. Paez: Today, we will discuss non-GAAP basis information a reconciliation from non-GAAP basis information to GAAP basis results is included in the press release and the supplemental disclosure we issued this morning.

These forward looking statements are intended to fall within the safe Harbor provisions of the securities laws.

Pablo E. Paez: Additionally, much of the information we will discuss today, including the answers. We gave in response to your questions May include forward looking statements regarding our beliefs and current expectations with respect to various matters.

Our actual results may differ materially from those in the forward looking statements as a result of various factors contained in our securities and Exchange Commission filings, including the Form 10-K, 10-Q, and 8-K reports with that please allow me to turn this call over to our executive Chairman George <unk>, George Thank you Pablo and good morning to everyone.

Pablo E. Paez: These forward looking statements are intended to fall within the safe Harbor provisions of the securities laws.

Pablo E. Paez: Our actual results may differ materially from those in the forward looking statements as a result of various factors contained in our securities and Exchange Commission filings, including the Form 10-K, 10-Q, and 8-K reports with that please allow me to turn this call over to our executive Chairman George <unk>, George Thank you Pablo and good morning to everyone.

Thank you for joining us on our fourth quarter 2023 earnings call.

Im joined today by our newly reorganized senior management team, including our new CEO, Brian Evans, our new President and Chief operating Officer wing calories, and our new acting Chief financial.

George C. Zoley: Thank you, Pablo, and good morning to everyone. Thank you for joining us for our fourth quarter 2023 earnings. I'm joined today by our newly reorganized senior management team, including our new CEO, Brian Evans, our new President and Chief Operating Officer, Wayne Calabrese, and our new Acting Chief Financial Officer, Shane March, along with our President of Geo Secure Services, James Black. While Brian, Shane, and Wayne are new to their positions, they have each been with the company for a long time.

George C. Zoley: Thank you for joining us on our fourth quarter 2023 earnings call.

Officers Jane March along with our President of Geo secure services teams black, while Brian changed and Wayne are needed to there.

George C. Zoley: I'm joined today by our newly reorganized senior management team, including our new CEO, Brian Evans, our new President and Chief operating Officer wing, Calibrates, and our new acting Chief financial officers Jane March along with our president of Geo secure services.

Positions they have each been with the company a long time.

During today's call, we will review our fourth quarter financial results for 2023 recap the annual operational milestones for each of our business segments providing.

George C. Zoley: Slack, while Brian changed and Wayne are new to their pieces.

George C. Zoley: Positions they have each been with the company a long time.

<unk> provided an update of our continued efforts to reduce debt and deleverage our balance sheet and discuss our initial financial guidance for 2024, which includes a range of assumptions primarily related to the ongoing federal budget discussions in Congress.

George C. Zoley: During today's call, we will review our fourth-quarter financial results for 2023, recap the annual operational milestones for each of our business sectors, provide an update on our continued efforts to reduce debt and deleverage our balance sheet, and discuss our initial financial guidance for 2024, which includes a range of assumptions primarily related to the ongoing federal budget discussions in Congress. During the fourth quarter of 2023, our diversified business units continued to deliver strong operational and financial performance. This morning we reported fourth quarter 23 revenues of approximately $608 million and gap net income of approximately $32 million.

George C. Zoley: During today's call, we will review our fourth quarter financial results for 2023 recap the annual operational milestones for each of our business segments.

George C. Zoley: Provide an update of our continued efforts to reduce debt and deleverage our balance sheet and discuss our initial financial guidance for 2024, which includes a range of assumptions primarily related to the ongoing federal budget discussions in Congress.

During the fourth quarter of 2023, our diversified business units continued to deliver strong operational and financial performance.

Sure.

This morning, we reported fourth quarter at 23 revenues of approximately $608 million in GAAP net income of approximately $32 million.

George C. Zoley: During the fourth quarter of 2023, our diversified business units continued to deliver strong operational and financial performance.

We also reported fourth quarter 23, adjusted EBITDA of approximately $129 million.

George C. Zoley: Sure.

George C. Zoley: This morning, we reported fourth quarter at 23 revenues of approximately $608 million in GAAP net income of approximately $32 million.

Which represents a sequential increase of 8% from the third quarter of 2023.

George C. Zoley: We also reported fourth quarter adjusted EBITDA of approximately 129 million dollars, which represents a sequential increase of 8% from the third quarter of 2023. During the fourth quarter, our security services business unit renewed two important contracts at the federal level. In Colorado, we renewed our contract with ICE for the provision of the company-owned 1,532-bed Aurora ICE process and Associated Secure Support Services for a one-year term. In California, we renewed our contract with the U.S. Marshals for the provision of secure support services at the government-owned 512-bed El Centro detention facility for two years. At the state level, we received a two-year renewal of our lease agreement with the State of New Mexico for our company-owned 600-bed Guadalupe County Correctional Facility, which is managed by the New Mexico Corrections Department.

George C. Zoley: We also reported fourth quarter 23, adjusted EBITDA of approximately $129 million, which represents a sequential increase of 8% from the third quarter of 2023.

During the fourth quarter, our security services business unit renewed two important contracts at the federal level in Colorado, we renewed our contract with ice for the provision of the company owned 532 bed Aurora ice processing center and associated secure support services for.

George C. Zoley: During the fourth quarter, our security services business unit renewed two important contracts at the federal level in Colorado, we renewed our contract with ice for the provision of the company owned 532 bed Aurora ice processing center and associated secure support services for.

A one year term.

In California, we renewed our contract with the U S. Marshals for the provision of secure support services at the government owned 512 bed El Centro detention facility for a two year term.

George C. Zoley: A one year term.

At the state level, we received a two year renewal of our lease agreement with the state of New Mexico for our company owned 600 bed Guadalupe County Correctional facility, which is managed by the New Mexico Corrections Department.

George C. Zoley: In California, we renewed our contract with the U S. Marshals for the provision of secure support services at the government owned 512 bed El Centro detention facility for a two year term.

George C. Zoley: At the state level, we received a two year renewal of our lease agreement with the state of New Mexico for our company owned 600 bed Guadalupe County Correctional facility, which is managed by the New Mexico Corrections Department.

Additionally, our Geo reentry services Division renewed five residential reentry center contracts at the state and federal levels during the fourth quarter of 2023.

Looking at our key quarterly segment trends, our fourth quarter.

George C. Zoley: Additionally, our Geo Reentry Services Division renewed five residential reentry center contracts at the state and federal levels during the fourth quarter of 2020. Looking at our key quarterly segment trends, our fourth quarter 2023 results reflect a year-over-year increase in our secure transportation revenues and in our international revenues. The increase in our secure transportation segment was primarily driven by our new contract to provide air operation support for ICE, which was activated in the third quarter of 2023. Internationally, the increase in revenues was due to our new contract to deliver health care services across public prisons in the state of Victoria in Australia, which was also activated in the third quarter of 2023. Moving to ice hockey.

George C. Zoley: Additionally, our Geo reentry services Division renewed five residential reentry center contracts at the state and federal levels during the fourth quarter of 2023.

2023 results reflect a year over year increase in our secure transportation revenues and in our international revenues.

George C. Zoley: Looking at our key quarterly segment trends, our fourth quarter.

The increase in our secure transportation segment was primarily driven by our new contract to provide air operation support for ice which was activated in the third quarter of 2023 internationally. The increase in revenues was due to.

George C. Zoley: 2023 results reflect a year over year increase in our secure transportation revenues and in our international revenues.

George C. Zoley: The increase in our secure transportation segment was primarily driven by our new contract to provide air operation support for ice which was activated in the third quarter of 2023 internationally. The increase in revenues was due to.

Our new contract to deliver healthcare services across public prisons in the state of Victoria in Australia.

Which was also activated in the third quarter of 2023.

Moving to ice average daily populations, our costs, our ice processing centers increased by approximately 18% during the fourth quarter of 2023 since the end of the year ice populations in our facilities have remained relatively stable at just over 13000 beds.

George C. Zoley: Our new contract to deliver healthcare services across public prisons in the state of Victoria in Australia.

George C. Zoley: Which was also activate it in the third quarter of 2023.

George C. Zoley: Moving to ice average daily populations are costs, our ice processing centers increased by approximately 18% during the fourth quarter of 2023 since the end of the year ice populations in our facilities have remained relatively stable at just over 13000 beds.

George C. Zoley: Average daily populations across our ice process increased by approximately 18% during the fourth quarter of 2023. Since the end of the year, ice populations in our facilities have remained relatively stable at just over 13,000 beds. Currently, we estimate that the census across all ICE facilities nationwide is approximately 38,500. With respect to the Federal Government's Intensive Supervision and Appearance Program, or ISAB, participant counts remain relatively stable during the fourth quarter of 2023 in a range of approximately 190,000 to 195,000 individuals. The current ISAT participant count is approximately 187.

Currently we estimate that the census across all ice facilities.

Nationwide, it's approximately 38500.

With respect to the federal government's intensive supervision and appearance program.

George C. Zoley: Currently we estimate that the census across all ice facilities.

Our ice app.

Participant counts remained relatively stable during the fourth quarter of 2023, and a range of approximately 190000 to 195000 individuals.

George C. Zoley: Nationwide, it's approximately 38500.

George C. Zoley: With respect to the federal government's intensive supervision and appearance program or <unk>.

The current ICF participant count is approximately 187.

George C. Zoley: Participant counts remain relatively stable during the fourth quarter of 2023, and a range of approximately 190000 to 195000 individuals.

We believe that ice continues to face budgetary pressures and the outcome and timing of ongoing federal budget discussions and Congress remains uncertain.

The current ICF participant count is approximately 187.

Since October one the department of Homeland Security and ice have funded under a short term continued resolution, which has been extended twice and is currently set to expire on March eight.

George C. Zoley: We believe that ICE continues to face budgetary pressures, and the outcome and timing of ongoing federal budget discussions in Congress remain uncertain. Since October 1, the Department of Homeland Security and ICE have been funded under a short-term continuing resolution, which has been extended twice and is currently set to expire on March 8. Last week, a group of U.S. senators released a proposed Supplemental Appropriations Bill, which included additional funding for border security. However, that bill was voted down by the full Senate. build, and have provided funding for

George C. Zoley: We believe that <unk> continues to face budgetary pressures and the outcome and timing of ongoing federal budget discussions and Congress remains uncertain.

Last week, a group of U S. Senators released the proposed supplemental appropriations Bill which included additional funding for border security. However that bill was.

George C. Zoley: Since October one the department of Homeland Security and ice have funded under a short term continuing resolution, which has been extended twice and is currently set to expire on March eight.

Yes.

Was voted down by the full Senate.

George C. Zoley: Last week, a group of U S. Senators released the proposed supplemental appropriations Bill which included additional funding for border security. However that bill was.

The bill.

Have provided funding for.

50000 ice detention beds, which represents an increase of 16000 beds from the current funding levels for 34000 beds.

George C. Zoley: Okay.

George C. Zoley: Was voted down by the full Senate.

George C. Zoley: The bill.

Additionally, the bill would've increased the annual funding for alternatives to detention programs to approximately $1 $3 billion from the current funding level of $440 million.

Have provided funding for.

George C. Zoley: 50,000 ICE detention beds, which represents an increase of 16,000 beds from the current funding level of 34,000. Additionally, the bill would have increased the annual funding for alternatives to detention programs to approximately $1.3 billion from the current funding level of $440 million. If Congress is unable to reach an agreement on an appropriations package prior to March 8, the federal government could continue to be funded under a continuing resolution or face the prospect of a government shutdown.

George C. Zoley: 50000 ice detention beds, which represents an increase of 16000 beds from the current funding levels for 34000 beds.

Additionally, the bill would've increased the annual funding for alternatives to detention programs to approximately $1 $3 billion from the current funding level of $440 million.

If congress is unable to reach an agreement on appropriations package prior to March eight the federal government could continue to be funded under a continued resolution or face the prospect of government shutdown.

Given this uncertainty we have provided our initial guidance for 2024 with a range of assumptions, which Bryan and Shane will discuss in more detail.

George C. Zoley: If congress is unable to reach an agreement on appropriations package prior to March eight the federal government could continue to be funded under a continued resolution or face the prospect of government shutdown.

As we have expressed to you in the past decisions related to federal funding levels and related policies are outside of <unk> control as a service provider to the federal government.

George C. Zoley: Given this uncertainty, we have provided our initial guidance for 2023-4 with a range of assumptions which Brian and Shane will discuss in more detail. As we've expressed to you in the past, decisions related to federal funding levels and related policies are outside of GEO's control as a service provider to the federal government, while we will continue to monitor the congressional appropriations process. Our focus remains on providing high-quality services on behalf of DHS, ICE, and all of our clients. We also remain focused on reducing our net debt, which continues to be a strategic priority for our company. In 2023, we reduced our net debt by approximately $197 and ended the year with less than $1.8 billion in total net debt. The debt reduction represents substantial progress towards our objective to de-leverage our balance sheet and position GEO to explore options to return capital to shareholders in the future. I will now turn the call over to our new CEO, Brian Evans. Thank you, George. Good morning, everyone.

George C. Zoley: Given this uncertainty we have provided our initial guidance for 2024 with a range of assumptions, which Bryan and Shane will discuss in more detail.

While we will continue to monitor the congressional appropriations process, our focus remains on providing high quality services on behalf of DHS ice and all of our clients.

George C. Zoley: As we've expressed to you in the past decisions related to federal funding levels and related policies are outside of <unk> control as a service provider to the federal government.

We also remain focused on reducing our net debt, which continues to be a strategic priority for our company.

George C. Zoley: While we will continue to monitor the congressional appropriations process, our focus remains on providing high quality services on behalf of DHS ice and all of our clients.

In 2023, we reduced our net debt by approximately $197 and ended the year with less than one 8 billion in total net debt.

George C. Zoley: We also remain focused on reducing our net debt, which continues to be a strategic priority for our company.

The debt reduction represents substantial progress towards our objective to deleverage our balance sheet and positioned geo to explore options.

George C. Zoley: In 2023, we reduced our net debt by approximately $197 and ended the year with less than one $8 billion in total net debt.

To return capital to shareholders in the future I will now turn the call over to our new CEO, Brian Evans.

George C. Zoley: The debt reduction represents substantial progress towards our objective to deleverage our balance sheet and positioned geo to explore options.

Thank you George good morning, everyone as the prior CFO for 14 years. It is my pleasure to going George.

George C. Zoley: To return capital to shareholders in the future.

And our senior management team and the new capacity of CEO as we work together to continue to execute our company's strategic priorities.

George C. Zoley: I'll now turn the call over to our new CEO, Brian Evans.

Brian R. Evans: Thank you George good morning, everyone as the prior CFO for 14 years. It is my pleasure to going George and our senior management team and the new capacity of CEO as we work together to continue to execute our companies.

Our continued and steady financial performance is underpinned by the strength of our diversified services platform.

Brian R. Evans: As the previous CFO for 14 years, it is my pleasure to join George and our senior management team in the new capacity of CEO as we work together to continue to execute our company's strategic priorities. Our continued and steady financial performance is underpinned by the strength of our diversified services platform. Over the past 20 years, our board and our management team have implemented a disciplined strategy to pursue diversified opportunities that grow our company both organically and through strategic acquisitions of businesses and assets. We believe this growth and investment strategy has positioned Geo as a leading diversified services provider in our country and in our industry.

For the past 20 years, our board and our management team has implemented a disciplined strategy to pursue diversified opportunities that grow our company both organically.

Brian R. Evans: Strategic priorities.

Brian R. Evans: Our continued and steady financial performance is underpinned by the strength of our diversified services platform.

And through strategic acquisitions of businesses and assets.

Brian R. Evans: Over the past 20 years, our board and our management team has implemented a disciplined strategy to pursue diversified opportunities that grow our company both organically.

We believe this growth and investment strategy has positioned geo as a leading diversified services provider in our country in our industry.

And the strength of this diversification has allowed us to deliver steady operational and financial results through challenging periods.

Brian R. Evans: And through strategic acquisitions of businesses and assets.

Brian R. Evans: We believe this growth and investment strategy has positioned geo as a leading diversified services provider in our country and our industry.

Over the course of the Covid pandemic, we were able to offset declines in our secure services and residential reentry revenues with increases in our community based and nonresidential program.

Brian R. Evans: And the strength of this diversification has allowed us to deliver steady operational and financial results through challenging periods. For example, over the course of the COVID pandemic, we were able to offset declines in our secure services and residential reentry revenues with increases in our community-based and non-residential programs. Similarly, in 2021 and 2022, we were able to offset the loss of our Bureau of Prisons contract revenues with increases in our electronic monitoring and supervision services revenues. And in 2023, we offset declines in our electronic monitoring segment with growth from several of our diversified segments, including our secure transportation and international business. As we look forward to 2024, we believe that we are taking a prudent approach to our initial financial guidance given the uncertainty surrounding the outcome and timing of the ongoing federal budget discussions in Congress.

Brian R. Evans: And the strength of this diversification has allowed us to deliver steady operational and financial results through challenging periods.

Similarly in 2021, and 2022, and we were able to offset the loss of our bureau of prisons contract revenues with increases in our electronic monitoring and supervision services revenues and in 2023, we offset declines in our electronic monitoring segment with growth from several.

Brian R. Evans: Over the course of the Covid pandemic, we were able to offset declines in our secure services and residential reentry revenues with increases in our community based and nonresidential program.

Brian R. Evans: Similarly in 2021, and 2022, we were able to offset the loss of our bureau of prisons contract revenues with increases in our electronic monitoring and supervision services revenues.

Our diversified segment, including our secure transportation and international businesses.

As we look forward to 2024, we believe that we are taking a prudent approach to our initial financial guidance given the uncertainty surrounding the outcome and timing of the ongoing federal budget discussions in Congress.

Brian R. Evans: And in 2023, we offset declines in our electronic monitoring segment with growth from several of our diversified segments, including our secure transportation and international businesses.

While decisions related to federal federal funding and related policies are all geos control as a company we are positioned to continue to support <unk>.

Brian R. Evans: As we look forward to 2024, we believe that we are taking a prudent approach to our initial financial guidance given the uncertainty surrounding the outcome and timing of the ongoing federal budget discussions in Congress.

And the U S marshals with a spectrum of support services and solutions, including additional bed capacity secure transportation electronic monitoring technologies and case management services.

Brian R. Evans: While decisions related to federal federal funding and related policies are all geos control as a company we are positioned to continue to support <unk>.

Brian R. Evans: While decisions related to federal funding and related policies are out of our control, as a company, we are positioned to continue to support ICE and the U.S. Marshals with a spectrum of support services and solutions, including additional bed capacity, secure transportation, electronic monitoring technologies, and case management services. With respect to ISAF specifically, BI is the largest provider of electronic monitoring services to federal, state, and local law enforcement agencies and the sole provider of electronic monitoring solutions to ICE.

With respect to Icf's specifically.

Brian R. Evans: And the U S marshals with a spectrum of support services and solutions, including additional bed capacity secure transportation electronic monitoring technologies and case management services with respect to Icf's specifically.

As the largest provider of electronic monitoring services to federal state and local law enforcement agencies, and the sole provider of electronic monitoring solutions to ice.

<unk> has provided the ISR contract services to ice with.

Brian R. Evans: As the largest provider of electronic monitoring services to federal state and local law enforcement agencies, and the sole provider of electronic monitoring solutions to ice.

With bipartisan support for over 20 years successfully achieving high levels of compliance under the program.

Over this timeframe <unk> has built what we believe is an unparalleled platform of technology solutions and case management services, which we anticipate will give <unk> a competitive advantage going forward.

Brian R. Evans: BI has provided ISAP contract services to ICE with bipartisan support for over 20 years, successfully achieving high levels of compliance under the program. Over this timeframe, BI has built what we believe is an unparalleled platform of technology solutions and case management services, which we anticipate will give Geo a competitive advantage going forward. As a sole provider of electronic monitoring services under the current ISAP contract, BI has all the necessary resources to assist ICE should the agency decide to increase the utilization of ISAP. Future increases in the ISAT participant count or further increases in the utilization of our ICE detention beds could potentially generate significant upside to our guidance. Additionally...

Brian R. Evans: <unk> has provided the ISR contract services to ice.

Brian R. Evans: With bipartisan support for over 20 years successfully achieving high levels of compliance under the program.

As the sole provider of electronic monitoring services under the current ICF contract.

Brian R. Evans: Over this timeframe <unk> has built what we believe is an unparalleled platform of technology solutions and case management services, which we anticipate will give <unk> a competitive advantage going forward.

It has all the necessary resources to assist ice should the agency decided to increase the utilization of <unk> future.

Future increases in the ISR participant count or further increases in the utilization of our ice detention beds could potentially generate significant upside to our guidance.

As the sole provider of electronic monitoring services under the current ICF contract.

Brian R. Evans: It has all the necessary resources to assist ice should the agency decided to increase the utilization of ICF.

Additionally, the.

The potential reactivation of any of our remaining idle secure services facilities, which total approximately 9000 beds could also provide meaningful upside for our annualized revenues and cash flows if fully reactivated.

Brian R. Evans: Future increases in ICF participant count or further increases in the utilization of our ice detention beds could potentially generate significant upside to our guidance.

Brian R. Evans: Additionally.

Brian R. Evans: The potential reactivation of any of our remaining EIDL secure services facilities, which total approximately 9,000 beds, could also provide meaningful upside to our annualized revenues and cash flows if fully reactivated. We could also see additional upside from winning any new managed only contract, similar to our new secure transportation subcontract for ICE air operations support and our new healthcare contract in Australia, which we activated last year. Operationally, our daily management focus and primary objective remain on achieving operational excellence across all our services.

We could also see additional upside from winning any new managed only contract similar to our new secure transportation sub contract for iron ore operations support and our new health care contract in Australia, which reactivated last year.

Brian R. Evans: The potential reactivation of any of our remaining idle secure services facilities, which total approximately 9000 beds could also provide meaningful upside for our annualized revenues and cash flows if fully reactivated.

Brian R. Evans: We could also see additional upside from winning any new managed only contract similar to our new secure transportation sub contract for iron ore operation support and our new health care contract in Australia, which reactivated last year.

Operationally, our daily management focus and primary objective remains on achieving operational excellence across all our service lines.

We are proud of the dedication of our frontline employees and our facility regional and corporate leadership, who help our company fulfill this objective every year.

Brian R. Evans: Operationally, our daily management focus and primary objective remains on achieving operational excellence across all our service lines.

From a strategic standpoint, our management team is focused on the disciplined allocation of capital to enhance long term value for our shareholders.

Brian R. Evans: We are proud of the dedication of our frontline employees and our facility, regional, and corporate leadership who help our company fulfill this objective every year. From a strategic standpoint, our management team is focused on the disciplined allocation of capital to enhance long-term value for our shareholders. For the past three years, we have focused on deleveraging our balance sheet and reducing our debt, and we have made significant progress towards this objective. We have complemented these efforts with the sale of select assets that have resulted in more than $150 million in proceeds. Historically, we have focused on the sale of residential reentry assets. This rationale has been based on the fact that residential reentry centers are typically located in urban areas and can usually be repurposed for alternative uses.

Brian R. Evans: We are proud of the dedication of our frontline employees and our facility regional and corporate leadership, who help our company fulfill this objective every year.

For the past three years, we have focused on deleveraging our balance sheet and reducing our debt and we have made significant progress towards this objective.

Brian R. Evans: From a strategic standpoint, our management team is focused on the disciplined allocation of capital to enhance long term value for our shareholders.

We've complemented these efforts with the sale of select assets that have resulted in more than $150 million in proceeds.

Brian R. Evans: For the past three years, we have focused on deleveraging our balance sheet and reducing our debt and we have made significant progress towards this objective.

Historically, we have focused on the sale of residential reentry assets. This rationale has been based on the fact that residential reentry centers are typically located in urban areas and can usually be repurposed for alternative uses.

We've complemented these efforts with the sale of select assets that have resulted in more than $150 million in proceeds.

As a result of these factors, we often see a larger pool of potential interested buyers.

Brian R. Evans: Historically, we have focused on the sale of residential reentry assets.

Brian R. Evans: This rationale has been based on the fact that residential reentry centers are typically located in urban areas and can usually be repurposed for alternative uses.

Going forward, we expect to explore additional sales of reentry facilities that are either idle or underutilized and may therefore create more value for our company by being sold with respect to our Idaho secure services facilities. As we have previously stated we are focused on marketing these facilities to local state and federal agencies.

Brian R. Evans: As a result of these factors, we often see a larger pool of potential interested buyers. Going forward, we expect to explore additional sales of reentry facilities that are either idle or underutilized and may, therefore, create more value for our company by being sold. With respect to our idle secure services facilities, as we have previously stated, we are focused on marketing these facilities to local, state, and federal agencies for reactivation, either under a traditional secure services contract or lease arrangement. We believe that these important assets can create more long-term value for our company if they can be reactivated. However, we may also consider the sale of some of these larger assets if we believe that the sale price adequately reflects their value.

Brian R. Evans: As a result of these factors, we often see a larger pool of potential interested buyers.

Brian R. Evans: Going forward, we expect to explore additional sales of reentry facilities that are either idle or underutilized and may therefore create more value for our company by being sold.

Reactivation, either under our traditional secure services contract for a lease arrangement we.

Brian R. Evans: With respect to our Idaho secure services facilities as we have previously stated we are focused on marketing these facilities to local state and federal agencies for reactivation, either under our traditional secure services contract for a lease arrangement we.

We believe that these important assets can create more long term value for our company. If they can be reactivated. However, we may also consider the sale of some of these larger assets. If we believe that that sale priced adequately reflects their value.

We believe that these important assets can create more long term value for our company. If they can be reactivated. However, we may also consider the sale of some of these larger assets. If we believe that that sale priced adequately reflects their value.

As we continue to execute our strategic priorities. We also explore expect to explore new areas of potential growth.

We believe that the expertise we have developed across a broad spectrum of government services could be used to provide private sector solutions to address public sector challenges either with our existing government clients or with new government agencies.

Shane March: As we continue to execute our strategic priorities, we also expect to explore new areas of potential growth. We believe that the expertise we have developed across a broad spectrum of government services could be used to provide private sector solutions to address public sector challenges, either with our existing government clients or with new government agencies. Our overarching goal is to continue to strengthen our diversified services platform, which already delivers predictable earnings in cash. We believe that as we allocate capital toward reducing debt and positioning our company to consistently and sustainably return capital to shareholders, the strong and predictable nature of our cash flows will create an attractive value proposition for investors. At this time, I will turn the call over to our acting CFO, Shane March, to review our financial results and guidance in more detail. Thank you, Brian. Good morning, everyone.

Brian R. Evans: As we continue to execute our strategic priorities. We also explore expect to explore new areas of potential growth.

Our overarching goal is to continue to strengthen our diversified services platform, which already delivers predictable earnings and cash flows we.

Brian R. Evans: We believe that the expertise we have developed across a broad spectrum of government services could be used to provide private sector solutions to address public sector challenges either with our existing government clients or with new government agencies.

We believe that as we allocate capital toward reducing debt and positioning our company to consistently and sustainably return capital to shareholders with strong and predictable nature of our cash flows will create an attractive value proposition for investors at this time I will turn the call over to our acting CFO Shane March to review our.

Brian R. Evans: Our overarching goal is to continue to strengthen our diversified services platform, which already delivers predictable earnings and cash flows we believe that as we allocate capital toward reducing debt and positioning our company to consistently and sustainably return capital to shareholders with strong and predictable nature of our cash flows will create.

<unk> results and guidance in more detail.

Thank you Brian Good morning, everyone. Today, we reported fourth quarter of 2023, GAAP net income of approximately $32 million quarterly revenues of approximately $608 million.

Brian R. Evans: An attractive value proposition for investors.

Brian R. Evans: At this time I will turn the call over to our acting CFO Shane March to review, our financial results and guidance in more detail.

We have also reported fourth quarter 2023, adjusted EBITDA of approximately $129 million.

Shane March: Thank you Brian Good morning, everyone. Today, we reported fourth quarter of 2023, GAAP net income of approximately $32 million quarterly revenues of approximately $608 million.

Shane March: Today, we reported fourth quarter 2023 gap net income of approximately $32 million on quarterly revenues of approximately $608 million. We also reported fourth quarter 2023 adjusted EBITDA of approximately $129 million. Looking at each of our segments, managed-only revenues for the fourth quarter of 2023 increased by approximately 18% from one year ago. This increase was driven by higher revenues and secure transportation in international segments related to our new subcontract to provide air support services for ICE and our new health care contract in Victoria, Australia, respectively. Fourth quarter of 2003, revenues for our own and least secure services facilities increased by approximately 4% from one year ago, which is primarily driven by an increased population at our ICE. Further, fourth quarter revenues and our Geo re-entry segment also increased year over year with fourth quarter 2023 revenues from our residential re-entry centers and our non-residential reentry programs experiencing an 11% increase and a 32% increase, respectively.

Looking at each of our segments match only revenues for the fourth quarter of 2023 increased by approximately 18% from one year ago.

Shane March: We also reported fourth quarter 2023, adjusted EBITDA of approximately $129 million.

This increase was driven by higher revenues in our secure transportation and international segments related to our new subcontract provide air support services for ice and our new health care contract in Victoria, Australia, respectively.

Shane March: Looking at each of our segments match only revenues for the fourth quarter of 2023 increased by approximately 18% from one year ago.

Fourth quarter of 2003 revenues for our owned and leased secure services facilities increased by approximately 4% from one year ago, which was primarily driven by increased populations at our ice.

Shane March: This increase was driven by higher revenues in our secure transportation and international segments related to our new subcontract provide air support services for ice and our new health care contract in Victoria, Australia, respectively.

Yes.

Shane March: Fourth quarter of 2003 revenues for our owned and leased secure services facilities increased by approximately 4% from one year ago, which was primarily driven by increased population at our ice.

Further quarter revenues in our.

Geo reentry segment also increased year over year with fourth quarter of 2023 revenues from our residential reentry centers.

In our non residential reentry programs experiencing an 11% increase and a 32% increase respectively.

Shane March: Yes.

Shane March: Further core revenues in our <unk>.

Shane March: Reentry segment also increased year over year with fourth quarter of 2023 revenues from our residential reentry centers.

These revenue increases were offset by lower revenue from our electronic monitoring and supervision services segment. During the fourth quarter of 2023 as a result of lower participation counts under the eisai contract compared to the fourth quarter of 2022.

Shane March: In our non residential reentry programs experiencing an 11% increase and a 32% increase respectively.

Shane March: These revenue increases were offset by lower revenue from our electronic monitoring and supervision services segment. During the fourth quarter of 2023 as a result of lower participation counts under the ISR contract compared to the fourth quarter of 2022.

Shane March: These revenue increases were offset by lower revenue from our electronic monitoring and supervision service segment during the fourth quarter of 2023 as a result of lower participation counts under the ISAP contract compared to the fourth quarter of 2020. Our fourth quarter 2023 results also reflect a year-over-year decrease in net interest expense due to the repayment of debt throughout the year, as well as due to higher interest income compared to fourth quarter 2022. Our effective tax rate for the fourth quarter of 2023 was approximately 20%.

Our fourth quarter 2023 results also reflect a year over year decrease in net interest expense due to the repayment of debt throughout the year as well as due to higher interest income compared to fourth quarter of 2022.

Our effective tax rate for the fourth quarter 2023 was approximately 20%.

Shane March: Our fourth quarter 2023 results also reflect a year over year decrease in net interest expense due to the repayment of debt throughout the year as well as due to higher interest income compared to fourth quarter of 2022.

Yeah.

Moving to our guidance for 2024, as George and Brian discussed, we believe that ice continues to face budgetary pressures and the outcome and timing of ongoing federal budget discussions and Congress remains uncertain.

Shane March: Our effective tax rate for the fourth quarter 2023 was approximately 20%.

News articles have reported that ice is facing a $700 million.

Shane March: Yeah.

Shane March: Moving to our guidance for 2024, as George and Brian discussed, we believe that ICE continues to face budgetary pressures, and the outcome and timing of ongoing federal budget discussions in Congress remain uncertain. Recent news articles have reported that ICE is facing a $700 million debt budget and will be forced to scale back operations if it does not receive additional funding. The reported budget deficit could result in a reduction in immigration detention beds under contract and a reduction in the number of non-citizens being monitored under the agency's Alternative to Detention programs, which include ISAP. Although we have no way to predict whether the reported budget deficit will be addressed by Congress, we remain hopeful that a long-term funding shortfall will be avoided in order to address the agency's needs to deal with its border obligations. As a result, our financial guidance for 2024 incorporates a range of assumptions. For the full year 2024, we expect Gap Net Income to be in the range of $110 million to $125 million on annual revenues of approximately $2.4 billion and an effective tax rate of approximately 28%, exclusive of any discrete item.

Shane March: Moving to our guidance for 2024, as George and Brian discussed, we believe that ice continues to face budgetary pressures and the outcome and timing of ongoing federal budget discussions and Congress remains uncertain.

Budget deficit and will be forced to scale back operations. If it does not receive additional funding.

The reported budget deficit could result in a <unk>.

Reduction of immigration detention beds under contract and a reduction in a number of non citizens being monitored under the agency's alternatives to detention programs, which includes ISS.

Shane March: News articles have reported that ice is facing a $700 million budget deficit that will be forced to scale back operations. If it does not receive additional funding.

Although we have no way to predict whether it's a reported budget deficit will address the address by Congress.

Shane March: The reported budget deficit could result in a reduction of immigration detention beds under contract and a reduction in a number of non citizens being monitored under the agency's alternatives to detention programs, which includes <unk>.

<unk> hopeful that a long term funding shortfall will be avoided in order to address the agency's needs to deal with its owner obligations.

Shane March: Although we have no way to predict whether it's a reported budget deficit will address the address by Congress remain hopeful that a long term funding shortfall will be avoided in order to address the agency's needs to deal with its owner obligations.

As a result, our financial guidance for 2024 incorporates a range of assumptions.

For the full year of 2024, we expect GAAP net income to be in the range of $110 million to $125 million on annual.

As a result, our financial guidance for 2024 incorporates a range of assumptions.

Revenues of approximately $2 4 billion.

And in effect effective tax rate of approximately 28% exclusive of any discrete items.

For the full year 2024, we expect GAAP net income to be in the range of $110 million to $125 million on annual revenues of approximately $2 4 billion.

We expect our full year 2024, adjusted EBITDA to be.

Between $485 million and $515 million.

Shane March: And in effect effective tax rate of approximately 28% exclusive of any discrete items.

With respect to our assumptions the midpoint of our guidance assumes stable populations across our ice processing centers and stable participant accounts under our the ISR contracts.

Shane March: We expect our full-year 2024 adjusted EBITDA to be between $485 million and $515 million. With respect to our assumptions, the midpoint of our guidance assumes stable populations across our ICE processing centers and stable participant counts under the ICEF contract. On the low end of the range, our guidance assumes that budget discussions continue to be delayed throughout the year and that ongoing budgetary pressures result in some moderate decreased utilization of both ice processing center beds and electronic monitoring services under the ISOP contract. On the high end of the range, our guidance assumes only some moderate increase in the utilization of ice processing center beds and electronic monitoring services under the ISOP contract should additional funding be appropriated for ice during this fiscal year.

Shane March: We expect our full year 2024, adjusted EBITDA to be between $485 million and $515 million.

On the low end of the range our guidance assumes that budget discussions continue to be delayed throughout the year and our ongoing budgetary pressures result, and some moderate decreased utilization of both ice processing center beds and electronic monitoring services under the ISR contract.

Shane March: With respect to our assumptions at the midpoint of our guidance assumes stable populations across our ice processing centers and stable participant accounts under our the ISR contracts.

Shane March: On the low end of the range our guidance assumes that budget discussions continue to be delayed throughout the year and our ongoing budgetary pressures result, and some moderate decreased utilization of both ice processing center beds and electronic monitoring services under the ISR contracts.

On the high end of the range our guidance assumes only some moderate increase in the utilization of ice processing center beds and electronic monitoring services under the ISR contract should additional funding be appropriate for ice during this fiscal year.

Shane March: On the high end of the range our guidance assumes only some moderate increase in the utilization of ice processing center beds and electronic monitoring services under the ISR contract should additional funding the appropriate for ice during this fiscal year.

For the first quarter 2024, we expect GAAP net income to be in a range of 22 million to $24 million and quarterly revenues in the range of 600 million to $610 million.

We expect first quarter of 2024, adjusted EBITDA to be in the range of $117 million to $122 million.

Shane March: For the first quarter of 2024, we expect GAAP net income to be in a range of $22 million to $24 million, and quarterly revenues in the range of $600 million to $610 million. We expect first quarter 2024 adjusted EBITDA to be in the range of $117 million to $122 million. Compared to fourth quarter 2023, our first quarter 2024 guidance reflects the impact of having one fewer day in the quarter. Additionally, as we have previously addressed, our first quarter of the year is impacted by higher costs related to payroll taxes, which are front-loaded at the beginning of each year.

Shane March: For the first quarter 2024, we expect GAAP net income to be in a range of 22 million to $24 million and quarterly revenues in the range of 600 million to $610 million.

Compared to fourth quarter of 2023, our first quarter of 2024 guidance reflect the impact of having one fewer day in the quarter.

Shane March: We expect first quarter 2024, adjusted EBITDA to be in the range of $117 million to $122 million.

Additionally, as we have previously addressed our first quarter of the year and impacted by higher costs related to payroll taxes, which are frontloaded in the beginning of each year.

Shane March: Compared to fourth quarter of 2023, our first quarter 2024 guidance reflects the impact of having one fewer day in the quarter.

Moving to our capital structure during 2023, we reduced our total net debt by approximately $197 million.

Shane March: Additionally, as we have previously addressed our first quarter of the year is impacted by higher costs related to payroll taxes, which are frontloaded in the beginning of each year.

We ended the year with total net debt of less than $1 8 billion.

Which represents substantial progress towards our stated goal of reducing net debt and deleveraging our balance sheet.

Shane March: Moving to our capital structure during 2023, we reduced our total net debt by approximately $197 million.

Shane March: Moving to our capital structure, during 2023, we reduced our total net debt by approximately $197 million. We ended the year with total net debt of less than $1.8 billion, which represents substantial progress towards our stated goal of reducing net debt and deleveraging our balance sheet. Going forward, our objective is to continue reducing our debt by approximately $175 million to $200 million per year, which would bring our total net debt to approximately $1.6 billion by the end of 2024. Furthermore, over the next 12 months, we expect interest rates to stabilize and possibly decrease, which would further enhance our ability to reduce our net debt. Approximately one half of our debt is based on floating interest rates.

Going forward. Our objective is to continue reducing our debt by approximately 175 million to $200 million per year, which would bring our total net debt to approximately $1 $6 billion by the end of 2024.

Shane March: We ended the year with total net debt of less than $1 8 billion.

Shane March: Which represents substantial progress towards our stated goal of reducing net debt and deleveraging our balance sheet.

Over the next 12 months, we expect interest rates to stabilize potentially decrease which would further enhance our ability to reduce our net debt.

Shane March: Going forward. Our objective is to continue reducing our debt by approximately 175 million to $200 million per year, which would bring our total net debt to approximately $1 $6 billion by the end of 2024.

Approximately one half of our debt is based on floating interest rates and decreases in interest rates would bolster our annual free cash flow that could be used to further reduce our overall levels of debt.

Shane March: Over the next 12 months, we expect interest rates to stabilize potentially decrease which would further enhance our ability to reduce our net debt.

Finally in 2024, we expect to take some additional steps to refinance portions of our debt.

Shane March: Approximately one half of our debt is based on floating interest rates and decreases in interest rates would bolster our annual free cash flow that could be used to further reduce our overall levels of debt.

Shane March: And decreases in interest rates would bolster our annual free cash flow that could be used to further reduce our overall levels of debt. Finally, in 2024, we expect to take some additional steps to refinance portions of our debt. As a first step, this past December, we refinanced the two tranches of our revolving credit, which had different maturity dates, into a combined $265 million revolver that is now maturing in March of 2027. The successful refinancing of our revolver is indicative of our strong relationships with our banking partners and the significant interest we receive from new banks. Earlier this week, we also announced the redemption of the remaining $23 million of senior notes that were due in October 2024, clearing the deck of any remaining debt maturities prior to 2026. Our focus will now shift to refinancing our two 2027 first lien term loans, which remain our most expensive debt, as well as potentially addressing our 2026 convertible net.

As a first step this past December we refinanced the two tranches of our revolving credit facility, which had different maturity dates until a combined $265 million revolver, which will now mature in March 2027.

Shane March: Finally in 2024, we expect to take some additional steps to refinance portions of our debt.

Shane March: As a first step this past December we refinanced the two tranches of our revolving credit facility, which had different maturity dates until a combined $265 million revolver, which will now mature in March of 2027.

The successful refinancing of our revolver is indicative of our strong relationships with our banking partners and the significant interest we received from <unk>.

Earlier. This week, we also announced the redemption of the remaining $23 million of senior notes that were due in October 2020 for clearing the deck of any remaining debt maturities prior to 2026.

Shane March: The successful refinancing of our revolver is indicative of our strong relationships with our banking partners and the significant interest we received from new banks.

Our focus will now shift to refinancing our two 2027 first lien term loans, which remain our most expensive debt as well as potentially addressing our 2026 convertible notes.

Earlier. This week, we also announced the redemption of the remaining $23 million of senior notes that were due in October 2020 for clearing the deck of any remaining debt maturities prior to 2026.

We hope that these efforts will allow us to reduce our overall cost of capital achieved annual interest cost savings and gain more flexibility within the covenants under our debt agreements to explore options to return capital to our shareholders in the future.

Shane March: Our focus will now shift to refinancing our two 2027 first lien term loans, which remain our most expensive debt as well as potentially addressing our 2026 convertible notes.

Shane March: We hope that these efforts will allow us to reduce our overall cost of capital achieved annual interest cost savings and gain more flexibility within the covenants under our debt agreements to explore options to return capital to our shareholders in the future.

Shane March: We hope that these efforts will allow us to reduce our overall cost of capital, achieve annual interest cost savings, and gain more flexibility within the covenants under our debt agreements to explore options to return capital to our shareholders in the future. We believe that our focus on reducing debt, delevering the balance sheet, and freeing up free cash flow for the potential return of capital will enhance value for our shareholders over time. At this time, I will turn the call over to James Black for a review of our GeoSecure services segment. Thank you, Shane. Good morning, everyone.

We believe that our focus on reducing debt delevering, the balance sheet and freeing up key free cash flow for the potential return of capital will enhance value for our shareholders over time.

At this time I will turn the call over to James Park for a review of our Geo secure services segment.

Shane March: We believe that our focus on reducing debt delevering, the balance sheet and freeing up key free cash flow for the potential return of capital will enhance value for our shareholders over time.

Thank you Shannon.

Morning, everyone. It is my pleasure to review the <unk> annual milestones for Geo secure services.

During 2023, we renewed 15 secure services contracts, including 10 contracts at the federal level with ice and the U S marshals.

Shane March: At this time I will turn the call over to James Park for a review of our Geo secure services segment.

James Park: Thank you Shannon.

During the year, our secure services facilities also successfully underwent a total of 209 audits.

James Park: Morning, everyone. It is my pleasure to review the <unk> annual milestones for Geo secure services.

James Black: It is my pleasure to review the Annual Milestones for GeoSecure Service. During 2023, we renewed 15 Secure Services contracts, including 10 contracts at the federal level with ICE and the U.S. Marshals.

James Park: During 2023, we renewed 15 secure services contracts, including 10 contracts at the federal level with ice and the U S market.

<unk> internal audits government reviews third party accreditation and prison rape elimination act or previous certifications.

James Black: During the year, our Secure Services Facilities also successfully underwent a total of 209 audits, including internal audits, government reviews, third-party accreditations, and the Prison Rape Elimination Act, or PREASA. Twelve of our secure services facilities received accreditation from the American Correctional Association, with an average score of 99.3%, and another 14 facilities received PREA certification. Our GTI Transportation Division and our GeoAMI UK joint venture completed approximately 18 million miles driven in the United States and the UK during the year. Moving on to current trends for our government agency partners. At the federal level, populations at our U.S. Marshals Detention Facility will remain stable throughout 2020. Our U.S. Marshals facilities around the country support the agency as it carries out its mission of providing custodial services for pre-trial detainees facing federal criminal prosecution. We believe that our U.S.

James Park: During the year, our secure services facilities also successfully underwent a total of 209 audits.

Coiled rebar security services facilities received accreditation from the American Correctional Association with an average score of 99, 3%.

James Park: <unk> internal audits government reviews third party accreditation and prison rape elimination act or previous certifications.

And another 14 facilities received <unk> certification.

Our GTI transportation Division and our U R. Geo Amey U K joint venture completed approximately 18 million miles driven in the United States and the UK during the year.

James Park: Coiled rebar superior services facilities received accreditation from the American Correctional Association with an average score of 99, 3%.

James Park: And another 14 facilities received <unk> certification.

Moving to current trends for our government agency partners at the federal level populations at our U S. Marshals detention facilities remain stable throughout 2023.

James Park: Our GTI transportation Division and our U R. Geo Amey U K joint venture completed approximately 18 million miles driven in the United States and the UK during the year.

Our U S marshals facilities around the country to support the agency as it carries out its mission of providing custodial services for pretrial detainees facing federal criminal proceedings.

James Park: Moving to current trends for our government agency partners at the federal level populations at our U S. Marshals detention facilities remain stable throughout 2023.

We believe that our U S marshal facilities provide needed bed space, new federal courthouses, where there is generally a lack of suitable alternative detention capacity.

James Park: Our U S marshals facilities around the country to support the agency as it carries out its mission of providing custodial services for pre trial detainees facing federal criminal proceedings.

In the fourth quarter, we renewed our contract with the U S. Marshals to provide secure residential support services for the government owned 512 bid El Centro detention facility for a two year term.

James Park: We believe that our U S marshals facilities provide needed bed space, new federal courthouses, where there is generally a lack of suitable alternative detention capacity.

James Black: Marshal facilities provide needed bed space near federal courthouses where there is generally a lack of suitable alternative detention capacity. In the fourth quarter, we renewed our contract with the U.S. Marshals to provide secure residential support services for the government-owned, 512-bed El Centro Detention Facility for a two-year, Moving to our ICE process. We experienced a steady increase in ICE populations throughout 2023, and most recently, we saw an 18% increase during the fourth quarter of 2022.

Okay.

Moving to our ice processing centers, we experienced a steady increase in ice populations throughout 2023, and most recently, we saw an 18% increase during the fourth quarter of 2023.

James Park: In the fourth quarter, we renewed our contract with the U S. Marshals to provide secure residential support services for the government owned 512 bid El Centro detention facility for a two year term.

During the fourth quarter, we also renewed our contract with ice for the provision of the 100 or 1532 bit Aurora ice processing center and related secure residential support services in Colorado.

James Park: Moving to our ice processing centers, we experienced a steady increase in ice populations throughout 2023, and most recently, we saw an 18% increase during the fourth quarter of 2023.

James Black: During the fourth quarter, we also renewed our contract with ICE for the provision of the 1,532-bed Aurora ICE process and related secure residential support services in Colorado. Additionally, as we previously disclosed, in December 2023, we received a task order from ICE funding our Adelanto Ice Processing Center contract only through February 19, 2024. As ICE launched a review of the effect of COVID-related court injunction orders that prevent full use of the facility, In January 2024, GEO and three unions representing over 350 employees at the facility filed motions in this litigation to intervene and to vacate these outdated COVID-related injunctions. Subsequent to the filing of these, I have extended the task order funding the Atalanto contract through June 19, 2024 Moving on, to the federal appropriations process.

Additionally, as we previously disclosed in December 2023, we received the task order from ice funding, our Adelanto ice processing center contracts only through February 19, 2020, as ice launched a review of the effect of Covid related CT and <unk>.

James Park: During the fourth quarter, we also renewed our contract with ice for the provision of the 100 or 1532 bed Aurora ice processing center and related secure residential support services in Colorado.

James Park: Additionally, as we previously disclosed in December 2023, we received the task order from ice funding, our Adelanto ice processing center contracts only through February 19, 2020, as ice launched a review of the effect of Covid related court injunction.

Junction orders that prevent full use of the facility.

In January 2020 for Geo and three unions, representing over 350 employees at the facility filed motions in this litigation to intervene and to vacate these outdated OLED related injunction works.

James Park: <unk> orders that prevent full use of the facility.

James Park: In January 2020 for Geo and three unions, representing over 350 employees at the facility filed motions in this litigation to intervene and to vacate these outdated opioid related injunction awards.

Subsequent to the filing of these motions IC extended the past quarter funding the adelanto contract through June 19 2024.

Allowing additional time for what we hope will be a positive outcome that includes the resumption of intake at this facility.

James Park: Subsequent to the filing of these motions, obviously extended the past quarter funding the adelanto contract through June 19 2024.

Moving to federal to the federal Appropriations process ice is currently funded funded under a short term continuing resolution that runs through March eight.

James Park: Allowing additional time for what we hope will be a positive outcome that includes the resumption of intake at this facility.

The current funding levels for ice provide 34000 ice detention beds, and we estimate the present census of active ice detention beds to be at approximately 38500.

James Park: Moving to federal will accrue to the federal appropriations process ice is currently funded funded under a short term continuing resolution that runs through March eight.

James Black: ICE is currently funded under a short-term continuing resolution that runs through March 8th. The current funding levels for ICE provide 34,000 ICE detention beds, and we estimate the present census of active ICE detention beds to be at approximately 38,500. As previously noted, if no agreement is reached on an appropriations package in Congress prior to March, the federal government could again be funded under a continuing resolution or face the prospect of a government shutdown.

As previously noted if no agreement is reached on an appropriations package in Congress prior to March a.

James Park: The current funding levels for ice provide 34000 ice detention beds, and we estimate the present census of active ice detention beds to be at approximately 38500.

The federal government could again be funded under our contingent continuing resolution or face the prospect of a government shutdown.

As previously noted if no agreement is reached on an appropriations package in Congress prior to March a federal government could again be funded under our contingent continuing resolution or face the prospect of a government shutdown.

As a longstanding service provider to the federal government. We played no role in and have no control over congressional appropriations decisions the timing of those decisions for the establishment or implementation of federal immigration policies.

James Black: As a long-standing service provider to the federal government, we play no role in and have no control over congressional appropriations decisions, the timing of those decisions, or the establishment or implementation of federal immigration policy. Our focus remains on providing the highest quality services, and we stand ready to support ICE with any additional needs. We have a total of 9,000 additional beds at a number of facilities that we believe are well suited to support ICE's mission, and we have the expertise and resources to provide the needed ancillary services to meet the agency's needs. Geo has a long-standing track record delivering professional support services on behalf of ICE at Geo-contracted ICE processes. Geocontracted ice processing centers offer around-the-clock access to quality health care. Our health care staffing at ICE processing centers, where we provide resident health care, is generally more than double the number of health care staff in a typical state correctional facility. Geocontracted ice processing centers offer full access to legal counsel and legal libraries and resources, and we have dedicated space at each ice center to accommodate meetings with legal counsel. Geocontracted ice processing centers We also provide access to faith-based and religious opportunities at each geocontracted ice processing facility, and we partner with community volunteers as needed to ensure fair representation of various faiths and denominations.

James Park: As a longstanding service provider to the federal government. We played no role in and have no control over congressional appropriations decisions the timing of those decisions for the establishment or implementation of federal immigration policies.

Our focus remains on providing the highest quality services and we stand ready to support ice with any additional needs.

We have a total of 9000 additional beds at a number of facilities that we believe are well suited to support ices mission and.

James Park: Our focus remains on providing the highest quality services and we stand ready to support ice with any additional needs.

And we have the expertise and resources to provide the needed ancillary services to meet the agency's needs.

James Park: We have a total of 9000 additional beds at a number of facilities that we believe are well suited to support <unk> mission.

Geo has a long standing track record delivering professional support services on behalf of ice at Geo contracted ice processing center.

James Park: And we have the expertise and resources to provide the needed ancillary services to meet the agency's needs.

Zito contracted ice processing centers offer a round the clock access to quality health care services.

<unk> has a long standing track record delivering professional support services on behalf of ice at Geo contracted ice processing center.

Our health care staffing at ice processing centers, where we provide resident healthcare is generally more than double the number of health care staff in a typical state correctional facilities.

James Park: Geo contracted ice processing centers offer a round the clock access to quality health care services.

Geo contracted ice processing centers offer a full access to legal counsel and legal libraries and resources and we have dedicated space in each center to accommodate meetings with legal counsel.

James Park: Our health care staffing at ice processing centers, where we provide resident healthcare is generally more than doubled the number of health care staff in a typical state correctional facilities.

Geo contracted ice processing centers to provide three daily meals to residents that are culturally sensitive special diet appropriate and approve by registered Dieticians.

James Park: Geo contracted ice processing centers offer a full access to legal counsel and legal libraries and resources and we have dedicated space at each center to accommodate meetings with legal counsel.

We also provide access to faith based and religious opportunities at each Geo contracted ice processing center, and we partner with community volunteers as needed to ensure fair representation of various space in denomination.

James Park: Geo contracted ice processing centers to provide three daily meals to residents that are culturally sensitive special diet appropriate and approved by registered Dieticians.

Zito contracted ice processing centers also offer access to quality recreational activities.

James Park: We also provide access to faith based and religious opportunities at each Geo contracted ice processing center, and we partner with community volunteers as needed to ensure fair representation of various space in denomination.

We have made a significant investment in the enhanced amenities at these centers, including artificial turf soccer fields covered pavilions exercise equipment and multi purpose room.

James Black: Geocontracted ice processing centers also offer access to the Quality Recreational Act. We have made a significant investment in the enhanced amenities at these centers, including artificial turf soccer fields, covered pavilions, exercise equipment, and multi-purpose. We have also historically provided secure transportation services for ICE, primarily at 12 of the geocontracted ice processing centers. And in 2023, our GTI Transportation Division began providing secure air operation support for ICE as well, moving to our state government agency.

James Park: Zero contracted ice processing centers also offer access to quality recreational activity.

We have also historically provide a secure transportation services rise primarily at 12, <unk> contracted ice processing centers and in 2023, our GTI Transportation Division began providing secure operation air operation support for ice as well.

James Park: We have made a significant investment in the enhanced amenities at these centers, including artificial turf soccer fields covered pavilions exercise equipment and multi purpose room.

James Park: We have also historically provide a secure transportation services rise primarily at 12, <unk> contracted ice processing centers and in 2023, our GTI Transportation Division began providing secure operations air operation support for ice as well.

Moving to our state government agency for <unk>.

During the fourth quarter, we received a two year renewal for our lease agreement with the state of New Mexico for our company own 600 bed Guadalupe County Correctional facility, which is managed and operated by the New Mexico correction in Department.

James Park: Moving to our state Government Agency farm.

James Black: During the fourth quarter, we received a two-year renewal for our lease agreement with the state of New Mexico for our company-owned 600-bed Guadalupe County Correctional Center, which is managed and operated by New Mexico Correctional. In December, we were notified by the Commonwealth of Virginia that the management of the state-owned 1,536-bed Lawrenceville Correctional Center will transition to the Virginia Department of Corrections in August of 2024. We have had a successful partnership with the Virginia Department of Corrections, and we are committed to working closely with the agency to ensure a smooth transition. Finally, with respect to our international markets, as previously noted, we activated a new health care contract in July of 2023 with the state of Victoria in Australia to deliver secure residential health care services across 13 public prisons. We have a longstanding presence in Australia, and we expect to continue to pursue future growth opportunities in this important market. At this time, I will turn the call over to Wayne Calabrese for a review of GeoCare today. Thank you, James.

James Park: During the fourth quarter, we received a two year renewal for our lease agreement with the state of New Mexico for our company own 600 bed Guadalupe County Correctional facility, which is managed and operated by the new Mexico correction of Department.

In December we were notified by the company with Commonwealth of Virginia that the management of the state owned 1536 bed Lawrenceville Correctional Center will transition to the Virginia Department of Corrections in August of 2024.

In December we were notified by the company with Commonwealth of Virginia that the management of the state owned 1536 bed Lawrenceville Correctional Center will transition to the Virginia Department of Corrections in August of 2024.

We have had a successful partnership with the Virginia Department of Corrections and we are committed to working closely with the agency to agency to ensure a smooth transition.

Finally, with respect to our international markets. As previously noted we activated a new health care contract in July of 2023 with the state of Victoria in Australia to deliver secure residential health care services across 13 public prisons.

James Park: We have had a successful partnership with the Virginia Department of Corrections and we are committed to working closely with the agent agency to ensure a smooth transition.

James Park: Finally, with respect to our international markets. As previously noted we activated a new health care contract in July of 2023 with the state of Victoria in Australia to deliver secure residential health care services across 13 public prisons.

We have a long standing presence in Australia, and we expect to continue to pursue future growth opportunities in this important market at.

At this time I will turn the call over to Wang Calibrates for a review of Geo care Division.

Thank you James I am pleased to provide an overview of the annual operational milestones for our Geo care business unit.

James Park: We have a long standing presence in Australia, and we expect to continue to pursue future growth opportunities in this important market.

In 2023, we renewed 32 residential reentry center contracts, including 16 contracts with the Federal Bureau of prisons. Additionally, we renewed 52 nonresidential day reporting center contracts.

James Park: At this time I will turn the call over to Wang Calibrates for a review of Geo care Division.

Wang Calibrates: Thank you James I am pleased to provide an overview of the annual operational milestones for our Geo care business unit.

Wayne Calabrese: I'm pleased to provide an overview of the annual operational milestones for our GeoCare business unit. In 2023, we renewed 32 residential reentry center contracts, including 16 contracts with the Federal Bureau of Prisons. Additionally, we renewed 52 non-residential day reporting center contracts. During the year, our residential reentry centers, non-residential day reporting centers, and ISAP offices successfully underwent a combined total of 338 audits, including internal audits, government reviews, third-party accreditations, and PREIS certification. Eleven of our residential reentry centers received accreditation from the American Correctional Association.

Wang Calibrates: In 2023, we renewed 32 residential reentry center contracts, including 16 contracts with the Federal Bureau of prisons. Additionally, we renewed 52 nonresidential day reporting center contracts.

During the year, our residential reentry centers nonresidential day reporting centers and SAP offices successfully underwent a combined total of 338 audits, including internal audits government reviews third party accreditation and pre <unk>.

Wang Calibrates: During the year, our residential reentry centers nonresidential day reporting centers and SAP offices successfully underwent a combined total of 338 audits, including internal audits government reviews third party accreditations and pre <unk>.

Artifice.

11 of our residential reentry centers received accreditation from the American Correctional Association in 2023, with an average accreditation score of 99, 9% and eight of our residential reentry centers received previous certifications.

Wang Calibrates: <unk>.

Wang Calibrates: 11 of our residential reentry centers received accreditation from the American Correctional Association in 2023, with an average accreditation score of 99, 9% and eight of our residential reentry centers received previous certifications.

Our 35 residential reentry centers provide transitional housing and rehabilitation programs for individuals re entering their communities across 14 states.

Our nonresidential day reporting centers provide high quality community based services, including cognitive behavioral treatment for up to approximately 9100, parolees and probationers at approximately 90 locations across 10 different states.

Our 35 residential reentry centers provide transitional housing and rehabilitation programs for individuals re entering their communities across 14 states.

Wang Calibrates: Our 35 residential reentry centers provide transitional housing and rehabilitation programs for individuals re entering their communities across 14 states.

Wang Calibrates: Nonresidential day reporting centers provide high quality community based services, including cognitive behavioral treatment for up to approximately 9100, parolees and probationers at approximately 90 locations across 10 different states.

All key outcome metrics and our reentry programs showed improvement throughout the year attesting to our evidence based practices and a track record for lowering the rate of recidivism.

Moving to our Geo in prison programs and continuum of care Division in 2023, we delivered enhanced in custody rehabilitation to an average daily.

Wang Calibrates: All key outcome metrics and our reentry programs showed improvement throughout the year attesting to our evidence based practices and a track record for lowering the rate of recidivism.

Population of approximately 2600 individuals at 30 in prison programs sites in seven states and post release services to approximately 21000 individuals at 13 continuum of care sites in eight states.

Moving to our Geo in prison programs and continuum of care Division in 2023, we delivered enhanced in custody rehabilitation to an average daily.

Wang Calibrates: Population of approximately 2600 individuals at 30 in prison program sites in seven States and post release services to approximately 21000 individuals at 13 continuum of care sites in eight states.

During the year, we renewed five in prison treatment contracts across the country.

Our in custody rehabilitation services include academic programs focused on helping those in our care attain high school equivalency diplomas, we've made a significant investment to equip all of our classrooms with smart boards to aid in the delivery of academic instruction at all.

Wang Calibrates: During the year, we renewed five in prison treatment contracts across the country.

Wang Calibrates: Our in custody rehabilitation services include academic programs focused on helping those in our care attain high school equivalency diplomas, we've made a significant investment to equip all of our classrooms with smart boards to aid in the delivery of academic instruction at all.

All our facilities. We have also focused on developing vocational programs that not only lead to certification and when completed but are also based on market job placement needs.

Our substance abuse treatment programs are an important piece of our rehabilitation services because many of the individuals in our care suffered from addiction.

Wang Calibrates: All our facilities. We have also focused on developing vocational programs that not only lead to certification when completed but are also based on market job placement needs.

Our facilities also provide extensive faith based in character based programs.

Wang Calibrates: Our substance abuse treatment programs are an important piece of our rehabilitation services because many of the individuals in our care suffer from addiction.

And we have designated faith based in character based housing units or dorms across our facilities to enhance the delivery of these programs.

Our facilities also provide extensive faith based and character based programs.

During 2023, we completed approximately $4 6 million hours of enhanced in custody rehabilitation programming.

Wang Calibrates: And we have designated faith based in character based housing units or dorms across our facilities to enhance the delivery of these programs.

Our academic programs awarded more than 3100 High school equivalency diplomas and our vocational courses awarded close to 9200 vocational training certifications.

Wang Calibrates: During 2023, we completed approximately $4 6 million hours of enhanced in custody rehabilitation programming.

Our substance abuse treatment programs awarded approximately 8100 program completions and we achieved over 46000 behavioral treatment program completions and more than 36000 individual cognitive behavioral treatment sessions.

Wang Calibrates: Our academic programs awarded more than 3100 High school equivalency diplomas and our vocational courses awarded close to 9200 vocational training certifications.

Wang Calibrates: Our substance abuse treatment programs awarded approximately 8100 program completions and we achieved over 46000 behavioral treatment program completions and more than 36000 individual cognitive behavioral treatment sessions.

During the year, we also allocated approximately one $6 million toward post release services. This funding supported more than 3100 individuals released from Geo facilities as they return to their communities.

Wang Calibrates: During the year, we also allocated approximately $1 6 million.

Our geo continuum of care integrates enhanced in custody rehabilitation, including cognitive behavioral treatment with post release support services that address critical community needs of released individuals. We believe our award winning program provides a proven model on how the <unk>.

Wang Calibrates: Toward post release services. This funding supported more than 3100 individuals' released from Geo facilities as they return to their communities.

Wang Calibrates: Our geo continuum of care integrates enhanced in custody rehabilitation, including cognitive behavioral treatment with post release support services that address critical community needs of released individuals. We believe our award winning program provides a proven model on how the <unk>.

Two plus million people in the United States Criminal Justice system can be better served and changing their lives.

Finally, turning to our electronic monitoring and supervision services segment. Our bi subsidiary provides a full suite of monitoring and supervision solutions products and technologies on behalf of federal state and local agencies across the country.

Wang Calibrates: Two plus million people in the United States Criminal Justice system can be better served and changing their lives.

Wang Calibrates: Finally, turning to our electronic monitoring and supervision services segment. Our BVI subsidiary provides a full suite of monitoring and supervision solutions products and technologies on behalf of federal state and local agencies across the country.

During 2023, we experienced a decrease in electronic monitoring revenues due to a decline in the number of participants required to be monitored under the federal government's intensive supervision appearance program or <unk> compared to 2022.

Wang Calibrates: During 2023, we experienced a decrease in electronic monitoring revenues due to a decline in the number of participants required to be monitored under the federal government's intensive supervision appearance program or <unk> compared to 2022.

After steadily declining during the first three quarters of 2023, the number of participants under the ICF contract remained relatively stable during the fourth quarter of 2023 and a range of approximately 190 to 195000 participants.

Wang Calibrates: After steadily declining during the first three quarters of 2023, the number of participants under the ICF contract remained relatively stable during the fourth quarter of 2023 and a range of approximately 190 to 195000 participants.

<unk> has provided technology solutions holistic case management supervision monitoring and compliance services under ice App for almost 20 years.

Under <unk> tenure tenure ice App has achieved high levels of compliance using a variety of new technologies and case management services over that time, and we expect <unk> to continue to explore new and innovative technology solutions to support the needs of ice and all our current governor.

Wang Calibrates: <unk> has provided technology solutions holistic case management supervision monitoring and compliance services under ice App for almost 20 years.

Wang Calibrates: Under <unk> tenure tenure ice App has achieved high levels of compliance using a variety of new technologies and case management services over that time, and we expect <unk> to continue to explore new and innovative technology solutions to support the needs of ice and all our current governor.

Agency partners and to add new partners as we pursue future quality growth opportunities at this time I'd like to turn the call back to George for closing remarks. Thanks, Wayne in closing our diversified business units delivered strong financial and operational performance throughout two.

Wang Calibrates: And agency partners and to add new partners as we pursue future quality growth opportunities at this time I'd like to turn the call back to George for closing remarks. Thanks, Duane in closing our diversified business units delivered strong financial and operational performance throughout 2000.

'twenty three.

We've taken what we believe is a prudent approach to our initial financial guidance for 2024, given the uncertainty surrounding current federal budget discussions in Congress. However, as we said today, we believe we have several opportunities for potential upsides.

23.

George C. Zoley: We've taken what we believe is a prudent approach to our initial financial guidance for 2024, given the uncertainty surrounding current federal budget discussions in Congress.

We are actively marketing our current idle facilities and our diversified services as we pursue quality growth opportunities for our company.

We also remained focused on reducing our overall net debt and refinancing portions of our debt.

George C. Zoley: However, as we said today, we believe we have several opportunities for potential upsides.

George C. Zoley: We are actively marketing our current idle facilities and our diversified services as we pursue quality growth opportunities for our company.

These efforts are aimed at reducing our annual interest costs and gaining the flexibility of potential return of capital to shareholders in the future.

George C. Zoley: We also remain focused on reducing our overall net debt and refinancing portions of our debt.

Operational we remain steadfast in our commitment to achieving operational excellence in the daily delivery of our services on behalf of our government Agency partners.

George C. Zoley: These efforts are aimed at reducing our annual interest costs and gaining the flexibility of potential return of capital to shareholders in the future.

We are grateful for our 18000 employees worldwide, whose dedication and professionalism has.

George C. Zoley: Operational we remain steadfast in our commitment to achieving operational excellence in the daily delivery of our services on behalf of our government Agency partners.

It allowed geo to accomplish the milestones we have highlighted for you today that completes our remarks and we'd be glad to take some questions operator.

George C. Zoley: We are grateful for our 18000 employees worldwide, whose dedication and professionalism has allow.

Thank you we will now begin the question and answer session.

To ask a question you May press Star then one on your telephone keypad.

George C. Zoley: <unk> allowed geo to accomplish the milestones we have highlighted for you today that completes our remarks here, we'd be glad to take some questions operator.

We are using a speaker phone we ask can you. Please proceed with your handset before pressing issues.

So at any time and the question has been addressed I would like to withdraw your question. Please press Star then two.

Speaker Change: Thank you we will now begin the question and answer session.

Speaker Change: To ask a question you May press Star then one on your telephone keypad.

At this time, we will pause momentarily to assemble our roster.

And today's first question comes from Joe Gomes with Noble capital. Please go ahead.

Speaker Change: We are using a speaker phone we ask that you. Please pickup your handset before pressing issues.

Speaker Change: Anytime <unk> question has been addressed I would like to withdraw your question. Please press Star then two.

Good morning nice quarter.

Thank you.

Speaker Change: At this time, we will pause momentarily to assemble our roster.

So you mentioned George in your remarks about the underfunding of ice and I'm sure you guys have seen the reports that came out yesterday another article today.

Speaker Change: And today's first question comes from Joe Gomes with Noble capital. Please go ahead.

Joe Gomes: Good morning nice quarter.

About speculation we'll call it that they're going to release people from ice down to 22000.

Joe Gomes: Thank you.

Joe Gomes: So you mentioned George in your remarks about the underfunding of ice and I'm sure you guys have seen the reports that came out yesterday another article today.

Beds from the current as you said 38500.

And I was just trying to get your thoughts on on that happening I understand you don't know about the funding yet I'll just kind of more general your thoughts has something like this ever occurred previously unites were they just had a mass release X.

About speculation we'll call it that they're going to release people from ice down to 22000.

Joe Gomes: <unk> from the current as you said 38500.

Speaker Change: And I was just trying to get your thoughts on on that happening.

Excluding the Covid timeframe.

Speaker Change: I understand you don't know about the funding yet I'll just kind of more general your thoughts had something like this ever occurred previously and ice where they just had a mass release X.

I don't think theres been any thing of <unk>.

Comparable scope and Nate.

Nature as is being discussed in.

Speaker Change: Excluding the Covid time frame.

The.

August press release that came from the White house regarding ice.

Speaker Change: I don't think theres been any thing of <unk>.

Populations, but I'm encouraged.

Speaker Change: Comparable scope and Nate.

By reading one of the news articles today that the house Republicans are planning to unveil, our Ukraine, Israel, Taiwan and border Bill as an alternative to the border free package that was passed by the Senate Tuesday.

Speaker Change: Nature has been.

Speaker Change: Being discussed in.

Speaker Change: The.

Speaker Change: <unk> press release that came from the White house regarding ice.

Populations, but I'm encouraged.

And.

Speaker Change: By reading one of the news articles today that the house Republicans are planning to unveil, our Ukraine, Israel, Taiwan and border Bill as an alternative to the border free package that was passed by the Senate Tuesday.

The lawmakers are expected.

To release this bill any day now.

So.

Our hope is.

One of optimism that.

Speaker Change: <unk>.

Our funding for.

Speaker Change: The lawmakers are expected to.

Foreign aid can be tied to.

Speaker Change: <unk> released this bill any day now.

Funding for border security.

Speaker Change: So.

Speaker Change: Our hope is.

Comprehensive comp prehensile and compromised basis that will.

Speaker Change: One of optimism that.

Speaker Change: Our funding for.

Take care of the critical elements in both issues.

Speaker Change: Foreign aid can be tied to.

Speaker Change: Funding for border security.

Okay. Thanks.

Speaker Change: Comprehensive comp prehensile and compromise basis that we will.

As we all know you have a number of.

Contracts at your facilities that have.

Speaker Change: Take care of the critical elements in both issues.

Guaranteed levels I was just wondering are all all of those facilities now at.

Or above those levels or do you still have a couple that are below those guaranteed levels.

Speaker Change: Okay. Thanks for that.

Speaker Change: As we all know you have a number of.

I think most are above those levels in most of our facilities do have those guarantees that you referenced.

Speaker Change: Contracts at your facilities that have.

Guaranteed levels I was just wondering are all all of those facilities now at or above those levels or do you still have a couple that are below those guaranteed levels.

The higher levels are most likely along the southern border.

Speaker Change: I think most are above those levels and most of our facilities do have those guarantees where you reference.

Locations.

But where the activity is most prevalent.

We do have capacity as was mentioned previously between 7000 9000, we call them incremental beds at existing facilities that could be provided to ice.

Speaker Change: The higher levels are most likely along this.

Speaker Change: Southern border.

Speaker Change: Locations.

Speaker Change: But where the activity is most prevalent.

Speaker Change: We do have capacity as was mentioned previously between 7000 9000, we call them incremental beds at existing facilities that could be provided to ice.

Depending on the <unk>.

The result of additional funding for the agency.

Okay.

Just shifting gears here for a second.

We've talked in the past there was a re.

Quest for information about monitoring.

Speaker Change: Depending on the.

Speaker Change: The result of additional funding for the agency.

And I was just wondering if there's been any update on that or any movement on that.

Speaker Change: Okay, and just shifting gears here for a second.

That potential.

Speaker Change: We've talked in the past there was a.

Change in the monitoring.

Speaker Change: Request for information about monitoring.

I think that was.

Speaker Change: And I was just wondering if there's been any update on that or any movement on that.

For RF five requests for information and we submitted.

Speaker Change: That potential.

Our response to that request, but.

Speaker Change: Change in the monitoring.

We havent heard anything more about that.

I think that was.

We are aware of certain ideas about extending the ICF program and ease of use of ankle monitors to hedge.

Speaker Change: For RF five requests for information and we submitted.

Speaker Change: Our response to that request, but.

<unk> of households.

And that is possibly predicated on additional funding as well.

Speaker Change: We havent heard anything more about that.

Speaker Change: We are aware of certain ideas about extending the ICF program and easy use of ankle monitors to hedge.

Okay.

And anything new that you can point to.

Speaker Change: Heads of households.

The state and the local level for new business.

Speaker Change: And that is possibly predicated on additional funding as well.

Yeah.

Okay.

I think there are states that are facing problems because of the aging facilities in particular.

Okay.

Speaker Change: And anything new that you can point to.

Speaker Change: The state and the local level for new business.

Most states are facing those kind of problems and that means.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: I think there are states that are facing problems because of aging facilities in particular.

A combination of either consolidation of populations within larger facilities are actually building new facilities or leasing facilities for that purpose as we have done with clients in Oklahoma and new Mexico.

Speaker Change: Most states are facing those kind of problems and that means.

Speaker Change: A combination of either consolidation of populations within larger facilities are actually building new facilities or leasing facilities for that purpose as we have done with clients in Oklahoma and new Mexico.

So as as time progresses, I think there will be more opportunities for us to market, our idled facilities within those states that are facing those kinds of problems.

Okay.

Speaker Change: So as as time progresses, I think there will be more opportunities for us to market, our idled facilities within those states that are facing those kinds of problems.

One more for me and I'll get back in queue G&A was a little bit higher than we had expected in the quarter was there anything unusual in that or is that just kind of seasonality.

Speaker Change: Okay.

Yes.

One more for me and I'll get back in queue G&A was a little bit higher than we had expected in the quarter was there anything unusual in that or is that just kind of seasonality.

Ryan that was <unk>.

<unk> year end true ups in professional fees and other things going on nothing specific we don't expect in.

In our guidance that that run rate that occurred in the fourth quarter. So we assume a little bit lower.

Speaker Change: Yes.

Run rate going forward.

Speaker Change: Brian that was.

Speaker Change: Just a year end true ups in professional fees and other things going on nothing specific we don't expect.

Great. Thanks for taking the questions I'll get back in queue.

Yes.

Thank you and our next question today comes from Brian <unk>.

Speaker Change: In our guidance that that run rate that occurred in the fourth quarter. So we assume a little bit lower.

Well Securities. Please go ahead.

Speaker Change: The run rate going forward.

Great. Thanks, Good morning, nice quarter, Thanks for taking my questions.

Speaker Change: Great. Thanks for taking the questions I'll get back in queue.

Just wanted to clarify some of the assumptions in the guidance.

Speaker Change: Yes.

Speaker Change: Thank you and our next question today comes from Brian <unk>.

And the high end Youre assuming.

Brian R. Evans: What Bush Securities. Please go ahead.

Sounds like incremental funding increases I'm just curious could.

Brian R. Evans: Great. Thanks, Good morning, nice quarter, Thanks for taking my questions.

Could you talk to the volume of funding increase youre baking into that high end assumption I'm, assuming it's nowhere near.

Brian R. Evans: I just wanted to clarify some of the assumptions in the guidance.

The numbers that the center was throwing out just given the numbers and then.

Brian R. Evans: And the high end Youre assuming.

Does your midpoint guidance.

Brian R. Evans: Sounds like incremental funding increase and so I'm just curious could.

Assume any incremental funding as well I know what the low end doesn't but I'm curious about the Midland at the mid point sorry.

Speaker Change: Could you talk to the volume of funding increase youre baking into that high end assumption I'm, assuming it's nowhere near the numbers that the study was throwing out just given the numbers and then.

So.

This is Brian the high end as we said is really only moderate I don't think it assumes significant additional funding. It assumes maybe there might be some re programming and it uses.

Brian R. Evans: Does your midpoint guidance.

Brian R. Evans: Assume any incremental funding as well I know what the low end doesn't but I'm curious about the dividend at the midpoint sorry.

A few incremental more beds or.

Brian R. Evans: So.

Brian R. Evans: This is Brian the high end as we said is really only moderate I don't think it assumes.

Slightly increases the participant count in <unk> remember, we said in the fourth quarter. We were in the 190 to 195000 participant level, it's down slightly from that currently and then the low end is the same it just assume seems maybe some slight continued reduction in the ISR participant counts and the.

Brian R. Evans: Significant additional funding it assumes maybe there might be some re programming and it uses.

Brian R. Evans: A few incremental more beds or.

Brian R. Evans: Slightly increases the participant count in <unk> remember, we said in the fourth quarter. We were in the 190 to 195000 participant level, it's down slightly from that currently and then the low end is the same it just seems maybe some slight continued reduction in the ICF participant counts and the.

And maybe some modest reduction if right now is currently at 38000 plus their funding for 34 supposedly so maybe they go back down closer to the 34000 or something like that but nothing like what George was talking about previously either on the upside or the downside.

Brian R. Evans: And maybe some modest reduction if right now price.

It is currently at 38000 plus their funding for 34 supposedly so maybe they go back down closer to the 34000 or something like that but nothing about like what George was talking about previously either on the upside or the downside.

Got it okay.

And then in terms of these articles coming out recently about the reduction and containment.

Do you think theres any possibility I know, it's probably hard to tell that.

So it could be an opportunity to move those containing into the ATB program. If there's some sort of incremental savings from a budget perspective.

Speaker Change: Got it okay.

Speaker Change: And then in terms of these articles coming out recently about the reduction in <unk>.

That is a possibility.

Speaker Change: <unk> you.

Speaker Change: Do you think theres any possibility I know, it's probably hard to tell that.

We are.

Staffed up and scale up for that kind of.

Speaker Change: There could be an opportunity to move those containing into the ATB program. If there's some sort of incremental savings from budget perspective.

Policy change if thats so desires.

The ICF program has been talked about.

Speaker Change: That is a possibility.

With respect to <unk>.

Speaker Change: We are.

Expanding it to other groups of individuals and.

Speaker Change: Staffed up and scale up for that kind of.

Certainly if it.

Speaker Change: We have a policy change if thats so desires.

If there is a desire to reduce detention beds.

Speaker Change: The <unk> program has been talked about.

Place those people under the ICF monitoring program, we're ready to.

With respect to.

Speaker Change: Expanding it to other groups of individuals and.

Assist in that policy change.

Speaker Change: Certainly if.

Great. Thanks, and last one for me.

Speaker Change: If there is a desire to reduce detention beds.

You saw pretty nice uptick in your NOI margins across almost all your segments just wanted to get your view on the sustainability of those margins for 2024 is there anything sort of onetime expense operating expense line that we should be aware of those benefiting you this quarter.

Speaker Change: Place those people under the ICF monitoring program.

Speaker Change: Ready to.

Speaker Change: Assist in that policy change.

Speaker Change: Yeah.

Speaker Change: Great. Thanks, and last one from me.

Speaker Change: You saw pretty nice uptick in your NOI margins across almost all your segments just wanted to get your view on the sustainability of those margins between 24 is there anything sort of seasonal or one time expense operating expense line that we should be aware of that was benefiting you this quarter.

Okay.

No I think as you know.

The populations in our facilities as we talked about has rebounded nicely, especially in our ice facilities, but also to some degree in our marshals facilities.

Speaker Change: Okay.

And I think to the degree that that holds going next year, we should be able to sustain that except the first quarter is a little bit lower for the reasons that Shane mentioned previously theres, some seasonality as well as the impact of payroll related taxes in the first quarter, so that will put a little bit of downward pressure.

No I think as.

Speaker Change: The pop.

Speaker Change: Populations in our facilities as we talked about has rebounded nicely, especially in our ice facilities, but also to some degree in our marshals facilities.

Speaker Change: And I think to the degree that that holds going next year, we should be able to sustain that except the first quarter is a little bit lower for the reasons that Shane mentioned previously there are some seasonality as well as the impact of payroll related taxes in the first quarter, so that will put a little bit of downward pressure.

Okay, great. Thank you.

Thank you and our next question comes from Brendan Mccarthy with Sidoti. Please go ahead.

Hey, good morning, Thanks for taking my questions.

Okay.

Just to follow up on the potential release of one thousands of ice detainees I believe I saw there was a bed count number thrown out there potentially bringing the number of beds funded down to around 22000.

Speaker Change: Okay, great. Thank you.

Speaker Change: Thank you and our next question comes from Brendan Mccarthy with Sidoti. Please go ahead.

Brendan Mccarthy: Hey, good morning, Thanks for taking my questions.

Yeah.

Just curious is that number captured in the low end of the guidance range.

Just to follow up on the potential release of one thousands of ice detainees I believe I saw there was a bed count number thrown out there potentially bringing the number of beds funded down to around 22000.

No.

And just as a reminder, our.

Our facilities as George was mentioning earlier have for the most part.

All of our contracts except for one half.

Just curious is that number captured in the low end of your guidance range.

Fixed payment structure, which represents a significant component of the revenue.

Brendan Mccarthy: No.

Brendan Mccarthy: And just as a reminder, our.

Brendan Mccarthy: Our facilities as George was mentioning earlier have for the most part.

When the.

<unk> populations were.

Lower historically during the Covid pandemic.

Brendan Mccarthy: All of our contracts except for one half.

That protected significantly in an enhanced or supported the predictability of our cash flow. So while there would be some impact if they want.

Brendan Mccarthy: Fixed payment structure, which represents a significant component of the revenue and.

Brendan Mccarthy: Wendy.

That low it would not be as significant as it might seem on a per bed basis.

Brendan Mccarthy: Ice populations were.

Brendan Mccarthy: Lower historically during the Covid pandemic.

That protected significantly and enhanced or supported the predictability of our cash flow. So while there would be some impact if they want.

As George said it may impact a few facilities, where we're already above those guarantees but at some of those facilities those incremental per dms above the guarantees are lower so it would not be a dollar for dollar impact if you will.

Brendan Mccarthy: Net low it would not be as significant as it might seem on a per bed basis.

Brendan Mccarthy: As George said it may impact a few facilities, where we're already above those guarantees but at some of those facilities those incremental per dms above the guarantees are lower so it would not be a dollar for dollar impact if you will.

Got it.

Is it safe to assume.

The only instance that may happen is if the government were to shutdown come March 8th or.

Is that fair to assume.

No I don't think it would happen during that time.

Speaker Change: Got it and is it safe to assume.

I don't sense that there is an immediate desire to do that.

Speaker Change: The only instance that may happen is if the government were to shutdown come March 8th or.

Thank you.

All likelihood is that people will await the results of <unk>.

Speaker Change: Is that fair to assume.

Speaker Change: No I don't think it would happen during that time.

The final budget decisions that will take place by the end of the first week of March.

Speaker Change: I don't sense that there is an immediate desire to do that.

Speaker Change: Thank you.

Got it.

Speaker Change: All likelihood is that people will await the results of the final budget decisions that will take place by the end of the first week of March.

And then I noticed in the quarter and the fourth quarter. There was a nice jump in interest income what drove that specifically.

That's kind of the predominantly higher interest rates.

At the end of the year plus some cash balances we have internationally.

Speaker Change: Got it.

Speaker Change: And then I noticed in the quarter and the fourth quarter. There was a nice jump in interest income what drove that specifically.

Okay.

Got it Okay and one last question for me.

I've been reading into the.

Speaker Change: That's going to be predominantly higher interest rates.

<unk> release and reporting management program.

Speaker Change: By the end of the year plus some cash balances we have internationally.

It sounds like something that ice may try and rebrand the ATB program into from my research, but just wondering if you can provide some insight on the potential development of that program and whether you think.

Speaker Change: Okay.

Got it Okay and one last question for me.

Speaker Change: Reading into the.

Speaker Change: <unk> release and reporting management program.

Atg will somehow evolve into that.

Speaker Change: It sounds like something that ice may try and rebrand the ATB program into <unk>.

I think there was discussion about doing that but we havent heard anything more.

Speaker Change: From my research, but just wondering if you can provide some insight on the potential development of that program and whether you think.

As to whether those ideas have progressed.

Speaker Change: Atg will somehow evolve into that.

Yeah.

Speaker Change: I think there was discussion about doing that but we havent heard anything more.

Understood. That's all for me thank you.

And as a reminder, ladies and gentlemen, I would like to ask a question. Please press Star then one our next question comes from Kirk Ludtke with Imperial capital. Please go ahead.

As to whether those ideas have progressed.

Speaker Change: Okay.

Hello, everyone. Congratulations on the quarter, thanks for the call.

Speaker Change: Understood. That's all for me thank you.

Thank you.

Speaker Change: And as a reminder, ladies and gentlemen, I would like to ask a question. Please press Star then one our next question comes from Chris <unk> with Imperial capital. Please go ahead.

Just a couple follow ups.

You mentioned in your remarks that the.

Senate Bill included a $1 3 billion of.

Chris: Hello, everyone. Congratulations on the quarter, thanks for the call.

Funding for alternatives to detention I was curious.

Chris: Thank you.

Chris: Just a couple follow ups.

Did it did it.

Chris: You mentioned in your remarks that the <unk>.

Break that down into how much of that would be allocated to eisai.

Chris: Senate Bill included a $1 3 billion of.

No. It did not and that was the original Senate Bill it's not the one that passed which was just a foreign aid funding.

Funding for alternatives to detention I was curious.

Chris: Did it did it.

Chris: Break that down into how much of that would be allocated to IHOP.

Correct, Yes, I'm just curious because it's.

Speaker Change: No. It did not and that was the original Senate Bill it's not the one that passed which was just the foreign aid funding.

That was it Mike that type some of that might be it might show up in future proposals. So I was curious.

The.

Changing tops.

Topics for a secondary.

Speaker Change: Correct, Yes, I'm just curious because it's.

Chronic monitoring.

Revenues were down year over year, but margins were remarkably stable.

Speaker Change: That was it Mike that type some of that might be it might show up in future proposals. So I was curious.

Can you talk about the cost structure in that business or how you were able to maintain margins with such a meaningful year over year decline in revenues.

Speaker Change: The.

Speaker Change: With changing tops.

Speaker Change: Topics for a secondary.

Speaker Change: Chronic monitoring.

Speaker Change: Revenues were down year over year, but margins were remarkably stable.

Sure I mean, I think a lot of it is just product mix and the price that we're using some of those.

Speaker Change: Can you talk about the cost structure in that business or or how you were able to maintain margins with such a meaningful year over year decline in revenues.

<unk>, we own outright and Theyre already mostly paid for and depreciate It and we found some cost efficiency and during the year last year, we were.

Speaker Change: Sure I mean, I think a lot of it is just product mix and the price that we're using some of those.

We benefited from the full impact of those that were somewhat negotiated at the end of 'twenty two in early 'twenty, three and that helped as well.

Alex we are owned outright and Theyre already mostly paid for and depreciated and we found some cost efficiency and during the year last year. When we benefited from the full impact of those that were somewhat negotiated at the end of 'twenty two in early 'twenty, three and that's helped as well.

Got it.

That's helpful and then with respect to the you mentioned that.

The technology is in that.

<unk>.

Is evolving can you talk about.

What what you expect to happen with respect to.

Speaker Change: Got it.

Speaker Change: That's helpful and then with respect to the you mentioned.

The technology in that program and how it might impact.

Speaker Change: Technology and that <unk> is.

Margins on Capex.

Speaker Change: Is evolving can you talk about.

Well.

All technologies I think are.

Speaker Change: What what you expect to happen with respect to.

Are obligated to continue to develop develop.

The technology in that program and how it might impact <unk>.

And evolve as.

Speaker Change: Margins in Capex.

Our our products, which presently include <unk>.

Speaker Change: Well.

Speaker Change: All technologies.

<unk> monitors phones and.

Speaker Change: Thank God.

Speaker Change: Are obligated to continue to develop develop.

The new watches that we've developed it's called the <unk>.

Speaker Change: And evolve as.

We.

Speaker Change: Our our products, which presently include <unk>.

Continued to.

And think through.

Speaker Change: Henkel monitors phones and.

Replacement for those items in the future replacements or improvement.

Speaker Change: The new watches that we've developed it's called the <unk>.

Monitoring mechanisms.

Speaker Change: We.

Speaker Change: Continue to.

Speaker Change: I think through.

Okay.

Thank you.

Speaker Change: Replacements for those items in the future replacements on improving those.

Last call you mentioned that the.

County, jails and northern States.

We're moving away from DHS and ice.

Speaker Change: Monitoring mechanisms.

That might be an opportunity.

Speaker Change: Okay.

Speaker Change: Thank you.

Down the road do you I guess.

Speaker Change: Last call you mentioned that the <unk>.

Is there any way to.

Speaker Change: Tony jails and northern States.

Put a range on that how many beds, you think Mike might be in play.

Speaker Change: We're moving away from DHS and ice.

This year.

Speaker Change: That might be an opportunity.

It's obviously going to depend on.

Speaker Change: Down the road do you I guess is there any way to ship.

Youre getting additional funding for ice as we move through the fiscal year.

Speaker Change: Put a range on that how many beds, you think Mike might be in play.

And those opportunities are probably.

Speaker Change: This year.

Im going to pop up.

Speaker Change: It's obviously going to depend on.

In the second half of the year.

Assuming additional funding.

Speaker Change: You're getting additional funding for ice as we move through the fiscal year.

Okay.

Got it that's helpful. Thank you I appreciate it.

Speaker Change: Those opportunities are probably.

Going to pop up.

Thank you and our next question comes from Greg gave us.

Speaker Change: In the second half of the year.

<unk> Securities. Please go ahead.

Speaker Change: Assuming additional funding.

Hey, Thanks, guys congrats on the quarter, thanks for taking the questions.

Speaker Change: Okay.

Speaker Change: Got it that's perfect. That's helpful. Thank you I appreciate it.

Wanted to get a sense, because I know, we expected a little bit of a rebound in the second half of 2023.

Speaker Change: Thank you and our next question comes from Greg gave us, whereas Northland Securities. Please go ahead.

Ice efforts participants that.

Didn't necessarily happen.

Greg: Hey, Thanks, guys congrats on the quarter, thanks for taking the questions.

Just wanted to see if you had kind of visibility on how those populations are expected to change or is it really stable or flat kind of the best assumption right now as we await.

Greg: Wanted to get a sense, because I know, we expected a little bit of a rebound in the second half of 2023.

Greg: <unk> participants that didn't necessarily happen in.

More visibility from whether it's a big upfront funding.

Greg: Just wanted to see if you had kind of visibility on how those populations are expected to change or is it really stable or flat kind of the best assumption right now as we await.

We really won't know anything is until the end of the first week of March.

That's the deadline for the existing continuing resolutions and the.

Greg: More visibility from whether there's going to be government funding.

Funding for.

Greg: We really won't know anything is until the end of the first week of March.

The balance of the fiscal year will be determined by I believe March 8th.

Unless there is the government shutdowns some store, which we hope there is not.

Greg: That's the deadline for the existing continuing resolutions.

Okay.

Greg: And the.

Okay. That's fair just wanted to see if you're editing.

The funding for.

The balance of the fiscal year will be determined by I believe March eight.

Insight on whether that would change the otherwise.

Wanted to also ask just with respect to your cost structure in 2020 for any notable changes or variations in expenses relative to 2023 that are worth calling out there.

Greg: Unless there is the government shutdown and some store, which we hope there is not.

Greg: Okay.

Speaker Change: Okay. That's fair just wanted to see if you had any.

Speaker Change: Insight on whether that would change otherwise.

The cost structure going to be pretty steady comparatively.

Speaker Change: Wanted to also ask just with respect to your cost structure in 2020 for any notable changes or variations on expenses relative to 2023 that are worth calling out there.

I would say, it's going to be pretty steady comparatively the biggest maybe line item change we will be as we continue to reduce our debt the interest expense year over year should be lower.

Speaker Change: Is the cost structure going to be pretty steady comparatively.

I think what about 2000 25 million correct.

Speaker Change: I would say, it's going to be pretty steady comparatively the biggest.

And that doesn't.

Our guidance does not assume any benefit from any refinancing that may take place during the year as we discussed.

Speaker Change: Maybe line item change, we will be as we continue to reduce our debt the interest expense year over year should be lower.

Looking at.

Speaker Change: I think what about 2025 correct.

In the second half of the year at the latest at trying to redo.

Speaker Change: And that doesn't.

Or.

Speaker Change: Our guidance does not assume any benefit from any refinancing that may take place during the year as we discussed.

Reprice or refinance the term loan so.

That could provide some additional benefit or upside.

Got it.

Speaker Change: Looking at.

Just last one and I apologize if I missed this but regarding sale the potential sale of larger assets.

Speaker Change: In the second half of the year at the latest at trying to redo.

Speaker Change: Sure.

Speaker Change: Reprice or refinance the term loan so.

Has anything changed there in terms of interest levels or what you.

Speaker Change: That could provide some additional benefit or upside.

It might be able to the.

<unk> value that you can receive just curious if I know that's something you've looked at.

Speaker Change: Got it I guess, just last one and I apologize if I missed this but regarding sale the potential sale of larger assets as anything changed there in terms of interest levels or what.

The last several quarters, so if theres anything different in terms of the potential sale of those larger assets.

Speaker Change: It might be able to.

No as you know our larger assets, what we've done is redeployed into leases.

Speaker Change: The range of values and you could receive just curious if I know.

Speaker Change: Something you've looked at.

Most recently in Oklahoma and in a year or two before that was new Mexico.

Speaker Change: The last several quarters, so if theres anything different in terms of the potential sale of those larger assets.

It's partly it's driven from a state level by their funding issues in their budget issues and their ability to be able to make.

Speaker Change: No as you know our larger assets, what we've done is redeployed into leases.

Make a large acquisition like that so I think it's probably likely that it's more preferable for from their perspective to lease and to buy but we will.

Speaker Change: Most recently in Oklahoma and in a year or two before that was new Mexico.

Speaker Change: It's partly it's driven from a state level by their funding issues in their budget issues and their ability to be able to.

Continue to look at both if that makes sense.

Okay. Thanks, guys.

Speaker Change: Make a large acquisition like that so I think its.

Thank you and ladies and gentlemen. This concludes our question and answer session I would like to turn the conference back over to George <unk> for any closing remarks.

Speaker Change: It's probably likely that it's more preferable from from their perspective to lease.

Speaker Change: To buy but we will continue to look at both if that makes sense.

Thank you for joining us on this call and we look forward to addressing you on the next call.

Speaker Change: Okay. Thanks, guys.

Thank you Sir This concludes today's conference call.

Speaker Change: Thank you and ladies and gentlemen. This concludes our question and answer session I would like to turn the conference back over to George <unk> for any closing remarks.

Thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

Yeah.

George C. Zoley: You for joining us on this call and we look forward to addressing you on the next call.

Speaker Change: Thank you Sir This concludes today's conference call. Thank you all for attending today's presentation.

Speaker Change: We will now disconnect your lines and have a wonderful day.

Speaker Change: Sure.

[music].