Q2 2024 The GEO Group Inc Earnings Call

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Speaker Change: Good day and welcome to the Geo Group second quarter 2024 earnings call. All participants will be in a listen only mode should you need assistance. Please signal 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 Touchtone phone.

Speaker Change: And to withdraw your question. Please press Star then two please note. This event is being recorded I would now like to turn the conference over to Mr. Pablo Paez Executive Vice President of corporate Relations. Please go ahead Sir.

Pablo Paez: Thank you operator, good morning, everyone and thank you for joining us for today's discussion of the Geo group's second quarter 2024 earnings results.

Operator: Good morning, everyone, and thank you for joining us for today's discussion of the Geo Group's 2nd quarter, 2020 for Ernie's results.

Operator: With us today are George Zoley, Executive Chairman of the Board; Brian Evans, Chief Executive Officer; Wayne Calabrese, President and Chief Operating Officer; Mark Suchinski, Chief Financial Officer; and James Black, President of Geo Secure Services. This morning we will discuss our 2nd quarter results as well as our outlook.

Pablo Paez: With us today are George the only executive chairman of the board.

Speaker Change: Ryan Evans, Chief Executive Officer, Wayne Calibration, President and Chief operating Officer, Mark <unk>, Chief Financial Officer, and James Black President of Geo secure services.

Speaker Change: This morning, we will discuss our second quarter results as well as our outlook, we will conclude the call with a question and answer session.

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

Operator: This conference call is also being broadcast live on our investor website at investors.geogroup.com.

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

Operator: Today we will discuss non-gout basis information; a reconciliation from non-gout 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 laws.

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

Speaker Change: 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 supplemental disclosure we issued this morning.

Speaker Change: 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.

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

Operator: 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 condition filings, including the Form 10-K, 10-Q, and 8-K reports.

Speaker Change: 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.

Pablo Paez: Would that please allow me to turn this call over to Executive Chairman George Zoley.

George: 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 second quarter earnings call I am pleased to be joined today by our senior management team and I'd like to welcome our new CFO Mark <unk>.

George Zoley: Thank you, Pablo, and good morning to everyone. Thank you for joining us on our 2nd quarter earnings call.

George Zoley: I'm pleased to be joined today by our senior management team, and I'd like to welcome our new CFO, Mark Susan, who joined Geo early in July with more than 20 years of senior level executive experience in business management, corporate finance, capital markets, manufacturing, and supply chain management. During today's call, we will review our 2nd quarter 2022 financial results and the operational milestones for each of our business segments. Provide an update on our continued efforts to pay down debt, reduce our leverage, and enhance long-term value for our shareholders.

Speaker Change: Who joined GL.

Speaker Change: Early in July with more than 20 years of senior level executive experience in business management, corporate finance capital markets manufacturing and supply chain management.

Speaker Change: During today's call, we will review, our second quarter 2024 financial results and the operational milestones for each of our business segments.

Speaker Change: Provide an update on our continued efforts to pay down debt reduce our leverage and enhance long term value for our shareholders and discuss our financial guidance and outlook for the second half of 2024 and the full year.

George Zoley: and discuss our financial guidance and outlook for the second half of 2024 in the full year. During the second quarter, our diversified business units continued to deliver steady operational and financial performance. Looking at our key quarterly trends, revenues in our managed only segment increased by approximately 11% compared to one year ago. The year-over-year increase in managed-only revenues was driven by the activation of our new transportation contract to provide air support services for ICE, as well as our new contract in Australia to deliver primary health care services at 13 prisons across the state of Victoria. Revenues for our Geo entry services division also increased from a year ago, driven by a 5% increase in compensated man days for our non residential reentry services segment.

Operator: and discuss our financial guidance and outlook for the second half of 2024 and the full year. Looking at our key quarterly trends, revenues in our managed only segment increased by approximately 11% compared to one year ago, which is below the 41,000. 500 beds that are funded in the current fiscal year appropriations approved by the U.S. Congress. Currently, the daily ISAP participation count is approximately 175,000.

Speaker Change: During the second quarter, our diversified business units continued to deliver steady operational and financial performance.

Speaker Change: Looking at our key quarterly trends revenues in our managed only segment increased by approximately 11% compared to one year ago.

Speaker Change: The year over year increase in managed only revenues was driven by the activation of our new transportation contract to provide air support services for ice as well as our new contract in Australia to deliver primary healthcare services at 13 prisons across the state.

Victoria: Okay Victoria.

Victoria: Revenues for our Geo entry services Division also increased from a year ago, driven by a 5% increase in compensated mandates for our non residential reentry services segment.

Victoria: Revenues for our owned and leased secure services facilities increased by approximately 7% from a year ago.

George Zoley: Revenues for our own and least secure services facilities increased by approximately 7% from a year ago. This increase was driven primarily by a year-over-year population increases across our ICE and Marshall's facilities. Eulization of our ICE facilities remained consistent during the second quarter of 2024 at approximately 13,000 beds, which represents more than a 30% increase from a year ago when utilization of our ICE facilities was below 10,000 beds. We estimate that utilization across all ICE facilities nationwide is currently at approximately 37,000 beds, which is below the 41,500 beds that are funded in the current fiscal year appropriations approved by the U.S.

Victoria: This increase was driven primarily by year over year population increases across our ice and marshals facilities.

Victoria: Utilization of our ice facilities remain consistent during the second quarter of 2024 at approximately 13000 beds.

Victoria: Which represents more than a 30% increase from a year ago when utilization of our ice facilities was below 10000 beds.

Victoria: We estimate that utilization across all ice facilities nationwide is currently at approximately 37000 beds, which is below the 41000.

Victoria: 500 beds that are funded in the current fiscal year appropriations approved by the U S Congress.

George Zoley: Congress. We believe that the current detention census of 37,000 and ICE participation levels are constrained due to financial reasons related to ICE having overspent its budget earlier in the fiscal year, which will now end on September 30.

Victoria: We believe that the current detention census of 37000.

Victoria: And I statistic patient levels are constrained due to financial reasons related to ice having overspend its budget earlier in the fiscal year, which will now end on September 30.

George Zoley: Revenues for our electronic monitoring and supervision services segment decreased from one year ago due to a decline in the number of individuals who are monitored under the federal government's Intensive Supervision Appearance Program or ISAP. Participant counts under ISAP averaged approximately 184,000 individuals during the second quarter of 2024. Compared to average ISAP participation counts of approximately 188,000 during the first quarter of 2024. Currently, the daily ISAP participation count is approximately 175,000 with respect to federal funding for fiscal year 2025, which begins on October 1. The U.S. House of Representatives has approved its version of the Homeland Security Appropriations.

Speaker Change: Revenues for our electronic monitoring and supervision services segment decreased from one year ago due to a decline in number of individuals who are monitored under the federal government's intensive supervision appearance program or <unk>.

Speaker Change: Participant Count Center ice have averaged approximately 184000 individuals during the second quarter of 2024 compared to average ICF participation counts of approximately 188000 during the first quarter of 2024.

Speaker Change: Currently the daily ICF participation count is approximately 175000.

Speaker Change: With respect to federal funding for fiscal year, 2025, which begins on October one.

Operator: With respect to federal funding for fiscal year 2025, which begins on October 1st, the U.S. House of Representatives has approved its version of the Homeland Security Appropriations Act. At this time, the U.S. Senate has not introduced its version of the Homeland Security Appropriations Act. In early June, ICE announced a decision to discontinue a non-geofacility contract in Texas that needs across the country. Geo has responded to this ICE procurement by submitting phase one of the proposal. Price also previously issued a request for information for contractor service federal processing centers in the Midwest, Texas, and Utah.

Speaker Change: The U S House of Representatives has approved its version of the Homeland Security Appropriations Bill.

George Zoley: Bill. The House bill would increase funding for ICE detention to 50,000 beds, an increase of 8,500 beds from the currently funded level of 41,500 beds, an increase of approximately 13,000 beds from the current utilization level of 37,000 beds. The House Bill would also require the use of electronic GPS monitoring for all individuals in the nine detained docket, which is currently estimated at a total of more than 7 million people.

Speaker Change: The house Bill would increase funding for ice detention.

Speaker Change: 50000 beds, an increase of 8500 beds from the currently funded level of 41500 beds.

Speaker Change: An increase of approximately 13000 beds from the current utilization level of 37000 beds.

Speaker Change: The house Bill, but also required the use of electronic GPS monitoring for all individuals in the nine detained docket, which is currently estimated at a total of more than 7 million people.

George Zoley: At this time, the U.S. Senate has not introduced its version of the Homeland Security Appropriations Bill, and the U.S. Congress has adjourned for the August recess. If a Homeland Security Appropriations Bill is not approved when Congress reconvenes in September, Congress could pass a short-term or long-term continuing resolution for fiscal year 2025. We believe that under a continuing resolution beginning on October 1st, ICE would likely start with a full year of funding consistent with the current funding levels for 41,500 detention beds, and approximately $470 million for the agency's alternative to detention programs. We expect utilization rates for ICE detention beds and the alternatives to detention programs to increase in the fourth quarter of the year, with detention beds increasing up to 41,500 beds, and ICE that participation up to 195,000 participants.

Speaker Change: At this time the U S. Senate has not introduced its version of the Homeland Security Appropriations Bill in the U S. Congress has adjourn for the August recess.

Speaker Change: If a homeland security approach appropriations Bill is not approved when Congress Reconvenes since September Congress could pass a short term or long term continuing resolution for fiscal year 2025.

Speaker Change: We believe that under a continuing resolution beginning on October one.

Speaker Change: Ice would likely start with a full year of funding consistent with the current funding levels.

Speaker Change: 41500 detention beds.

Speaker Change: And approximately $470 million for the agency's alternative TD tension programs.

Speaker Change: We expect utilization rates for ice detention beds, and the alternatives to detention programs to increase in the fourth quarter of the year with detention beds, increasing up to 41500 beds and ice that participation up to 195000.

Speaker Change: Participants.

George Zoley: We remain focused on providing high-quality services on behalf of ICE, and we stand ready to provide any needed services and resources to help the agency meet its needs. In early June, ICE announced a decision to discontinue a non-geo facility in contract in Texas, which was considered a cost outlier, and will allow ICE to free up approximately $157 million in funding to support the agency's bed needs across the country. Subsequently, in late June, ICE issued a procurement for a contractor-operated processing center with a minimum of 600 beds in the New York, New Jersey area of responsibility.

Speaker Change: We remain focused on providing high quality services on behalf of ice and we stand ready to provide any needed services and resources to help the agency immediate needs.

Speaker Change: In early June ice announced a decision to discontinue a non geo facility in contracting Texas.

Speaker Change: Which was considered a cost outlier and will allow us to free up approximately $157 million in funding to support the agency.

Yes.

Speaker Change: Needs across the country.

Speaker Change: Subsequently in late June IC issued a procurement for a contractor operated processing center with a minimum of 600 beds in Newark, New Jersey area of responsibility.

George Zoley: Geo has responded to this ICE procurement by submitting Phase one portion of the proposal. Under this procurement, ICE is expected to award a 15-year contract, inclusive of all option periods. ICE also previously issued a request for information for a contractor service federal processing centers in the Midwest, Texas, and Utah.

Speaker Change: <unk> has responded to this ice procurement by submitting phase one portion of the proposal.

Speaker Change: Under this procurement ice as expected toward a 15 year contract inclusive of all option periods.

Speaker Change: <unk> also previously issued a request for information for contractor service federal processing centers in the Midwest, Texas and Utah.

George Zoley: Finally, during the second quarter, we completed the comprehensive refinancing of our debt, including the exchange and retirement of substantially all of our convertible notes. These important transactions have pushed out our debt maturities, reduced our overall cost of debt, and given us greater flexibility for potential capital returns in the future as we continue to focus on reducing our debt and de-leveraging our balance sheet. Our net debt to approximately $1.65 billion and our net leverage below 3.5 times adjusted EBITDA by year end.

Speaker Change: Finally during the second quarter, we completed the comprehensive refinancing of our debt, including the exchange and retirement of substantially all of our convertible notes.

Speaker Change: These important transactions have pushed out our debt maturities reduced our overall cost of debt and giving us greater flexibility for potential capital returns in the future as we continue to focus on reducing our debt and deleveraging our balance sheet.

Speaker Change: We expect to reduce our debt by between $100 million and $125 million. This year, bringing our total net debt to approximately $165 billion and our net leverage below three five times adjusted EBITDA.

By year end I will now turn the call over to our CEO, Brian Essex.

Brian Evans: I will now turn the call over to our CEO, Brian Evans.

Brian Evans: Thank you, George.

Brian Essex: Thank you George good morning, everyone.

Brian Evans: Good morning, everyone. Our steady financial performance and strong cash flows have allowed us to significantly reduce our debt and de-leverage our balance sheet over the last two to three years. Our disciplined allocation of capital over this timeframe positioned us to comprehensively refinance our entire debt structure during the second quarter of 2024. This important transaction has staggered our maturities between 2029 and 2031, giving our company a significantly longer debt repayment runway. The refinancing also resulted in an overall lower cost of debt and a higher proportion of fixed rate debt, which is now approximately 73% of our total debt, further insulating our company from potential interest rate increases in the future.

Operator: Our steady financial performance and strong cash flows have allowed us to significantly reduce our debt and deleverage our balance sheet over the last two to three years, allowing us to comprehensively refinance our entire debt structure during the second quarter of 2024. The refinancing also resulted in an overall lower cost of debt.

Brian Essex: Our steady financial performance and strong cash flows have allowed us to significantly reduce our debt and deleverage our balance sheet over the last two to three years, our disciplined allocation of capital over this timeframe positioned us to comprehensively refinance our entire debt structure during the second quarter of 2024.

Brian Essex: This important transaction is staggered our maturities between 2029, and 2031, giving our company a significantly longer debt repayment runway.

Brian Essex: The refinancing also resulted in an overall lower cost of debt.

Brian Essex: And a higher proportion of fixed rate debt, which is now approximately 73% of our total debt further insulating our company from potential interest rate increases in the future <unk>.

Brian Evans: And importantly, we were able to exchange and retire substantially all of the $230 million of our convertible notes, which we believe had created an overhang on our equity valuation. The disciplined allocation of capital to drive long-term value for shareholders remains one of our top managerial priorities. In the immediate term, we will continue to focus on paying down debt and reducing our leverage. Over the next 12 months, we hope to reduce our total debt, net debt, to less than $1.65 billion and our net leverage to comfortably below 3.5 times adjusted EBITDA. As we make progress towards these goals, we expect to evaluate options to return capital to shareholders in conjunction with our company's capital needs and strategic and growth objectives.

Brian Essex: And importantly, we were able to exchange and retire substantially all of the $230 million of our convertible notes, which we believe had created an overhang on our equity valuation.

Brian Essex: The disciplined allocation of capital to drive long term value for shareholders remains one of our top managerial priorities.

Brian Essex: In the immediate term, we will continue to focus on paying down debt and reducing our leverage over the next 12 months, we hope to reduce our total debt.

Brian Essex: Net debt to less than $165 billion.

Brian Essex: And our net leverage to comfortably below three five times adjusted EBITDA.

Operator: As we make progress toward these goals, we expect to evaluate options to return capital to shareholders in conjunction with our company's capital needs and strategic and growth objectives. We have done so by carefully allocating capital, investing in company-owned facilities, and pursuing strategic acquisitions of businesses and assets, medical and mental health services in congregate care settings, secure ground and air transportation, and cutting-edge electronic monitoring technology. Approximately 10,000 of our company-owned beds are currently idle, and our management team remains focused on marketing these important assets to local, state, and federal agencies for reactivation either under a traditional secure services contract or a lease arrangement.

Brian Essex: As we make progress towards these goals, we can we expect to evaluate options to return capital to shareholders in conjunction with our company's capital needs and strategic and growth objectives. The careful evaluation of quality growth opportunities is another important managerial priority for our company.

Brian Evans: The careful evaluation of quality growth opportunities is another important managerial priority for our company. Over the last 20 years, we have focused our investment strategy on developing a service platform that we believe is unmatched in terms of diversification and scope in our industry. We have done so by carefully allocating capital, investing in company-owned facilities, and pursuing strategic acquisitions of businesses and assets. We believe that this strategy has allowed us to develop leading market positions across the entire spectrum of our services in our industry, enabling us to respond to the needs of our government agency partners as policy priorities evolve over time.

Brian Essex: Over the last 20 years, we have focused our investment strategy on developing a service platform that we believe is unmatched in terms of diversification and scope in our industry.

Brian Essex: We have done so by carefully allocating capital investing in company owned facilities and pursuing strategic acquisitions of businesses and assets.

Brian Essex: We believe that this strategy has allowed us to develop leading market positions across the entire spectrum of our services in our industry.

Brian Essex: Enabling us to respond to the needs of our government agency partners as policy priorities evolve over time.

Brian Evans: Our diversified services and solutions include residential care in various security settings, enhancing custody rehabilitation programs through our award-winning geo-continuum of care, community reentry, post-release and case management services, medical and mental health services, and congregate care settings, secure ground and air transportation, and cutting-edge electronic monitoring technology. We have also developed an unmatched network of company-owned brick-and-mortar assets comprised of secure correctional facilities, federal detention facilities, immigration processing centers, and community reentry centers with a combined total of approximately 54,000 company-owned beds. We've also developed a number of priorities and growing needs of our government agency partners. Based on increased construction and development costs, we believe that our company-owned facilities have a combined replacement value in excess of $6 billion.

Brian Essex: Our diversified services and solutions include residential care and various security settings enhanced in custody rehabilitation programs through our award winning Geo continuum of care community reentry post release and case management services.

Brian Essex: Medical and mental health services, and congregate care settings, secure ground and air transportation and cutting edge electronic monitoring technology.

Brian Essex: We have also developed an unmatched network of company owned brick and mortar assets comprised of secure correctional facilities federal detention facilities immigration processing centers and community reentry centers with a combined total of approximately 54000 company owned beds.

Brian Essex: Our company owned facilities are relatively new with an average age of 20 years and we believe that these facilities are well suited to help meet the diverse policy priorities and growing needs of our government agency partners.

Brian Essex: Based on increased construction and development cost, we believe that our company owned facilities have a combined replacement value in excess of $6 billion.

Brian Evans: Approximately 10,000 of our company-owned beds are currently idle. And our management team remains focused on marketing these important assets to local, state, and federal agencies for reactivation either under a traditional secure services contract or a lease arrangement. If fully reactivated, our 10,000 idle beds would provide meaningful upside to our annualized revenues and cash flows. We will also continue to evaluate potential future asset sales to complement our capital needs, primarily focusing on our idle or underutilized residential reentry centers. Since these assets are typically located in urban areas, can usually be readily repurposed for alternative uses, and generally attract a larger pool of potential interested buyers.

Brian Essex: Approximately 10000 of our company owned beds are currently idle and our management team remains focused on marketing these important assets to local state and federal agencies for reactivation, either under our traditional secure services contract for a lease arrangement.

Brian Essex: If fully reactivated our 10000 idle beds would provide meaningful upside to our annualized revenues and cash flows.

Operator: We will also continue to evaluate potential future asset sales to complement our capital needs. Since these assets are typically located in urban areas, they can usually be readily repurposed for alternative uses and generally attract a larger pool of potential interested buyers. With respect to publicly known opportunities, as George mentioned, ICE has issued a procurement for a minimum of 600 beds in the Newark, New Jersey area and a separate request for information for facilities in the Midwest, Texas, and Utah.

Brian Essex: We will also continue to evaluate potential future asset sales to complement our capital needs, primarily focusing on our idle or underutilized residential reentry centers.

Brian Essex: Since these assets are typically located in urban areas can usually be readily repurpose for alternative uses and generally attract a larger pool of potential interested buyers.

Brian Evans: With respect to publicly known opportunities, as George mentioned, ICE has issued a procurement for a minimum of 600 beds in the Newark, New Jersey area and a separate request for information for facilities in the Midwest, Texas, and Utah. We believe that some of our currently available facilities are well suited to help the agency meet its need for additional bed space in several of those areas of the country. We have a longstanding public-private partnership with ICE and a federal government dating back to the mid-1980s. We currently have 17 company-owned facilities on a contract with ICE, providing needed bed space and support services across the United States.

Brian Essex: With respect to publicly known opportunities as George mentioned ice has issued a procurement for a minimum of 600 beds in Newark, New Jersey area and a separate request for information for facilities in the Midwest, Texas and Utah.

George: We believe that some of our currently available facilities are well suited to help the agency meet its need for additional bed space and several of those areas of the country.

Operator: We believe that some of our currently available facilities are well suited to help the agency meet its need for additional bed space in several of those areas of the country. We currently have 17 company-owned facilities under contract with ICE providing needed bed space and support services across the United States.

Speaker Change: We have a long standing public private partnership with ice and the federal government dating back to the mid 19 eighties. We currently have 17 company owned facilities under contract with ice providing needed bed space and support services across the United States.

Brian Evans: We have also provided electronic monitoring and case management services on behalf of ICE under the ICEF contract for more than 20 years. Over this timeframe, our electronic monitoring subsidiary, BI, has built what we believe is an unparalleled platform of integrated technology solutions and case management services, successfully achieving high levels of compliance under the program with bipartisan support. We believe our company continues to be an attractive value proposition for investors, given the strong and predictable nature of our cash flows, and we are focused on executing our strategic priorities and allocating capital to enhance long-term value for shareholders.

Speaker Change: We have also provided electronic monitoring and case management services on behalf of ice under the ICF contract for more than 20 years.

Speaker Change: Over this timeframe our electronic monitoring subsidiary <unk> has built what we believe is an unparalleled platform of integrated technology solutions and case management services successfully achieving high levels of compliance under the program with bipartisan support.

Speaker Change: We believe our company continues to be attractive value proposition for investors given the strong and predictable nature of our cash flows and we are focused on executing our strategic priorities and allocating capital to enhance long term value for shareholders. At this time I will turn the call over to our CFO Mark <unk>.

Mark Suchinski: At this time, I'll turn the call over to RCFO Mark Sashinsky.

Mark Suchinski: Thank you, Brian.

Mark: Thank you, Brian and good morning, everyone.

Brian: Thank you, Brian, and good morning, everyone. For the second quarter of 2024, we reported a gap net loss attributable to the GEO of approximately $32.5 million, or 25 cents per diluted share, on quarterly revenues of approximately $607 million. We also reported second quarter 2024 adjusted EBITDA of approximately $119 million. These revenue increases were offset by lower quarterly revenue from our electronic monitoring and supervision services segment due to lower participant counts under the ISEP contract compared to the prior year's second quarter.

Mark Suchinski: Good morning, everyone. I'm pleased to have joined the World Class Organization, and I look forward to working with George, Brian, and the rest of the management team as we continue to execute the strategic priorities of the Geo Group. For the second quarter of 2024, we reported a gap net loss attributable to the Geo of approximately $32.5 million, or 25 cents per diluted share. On quarterly revenues of approximately $607 million. Our second quarter of 2024 results reflect pre-tax costs associated with the extinguishment of debt of approximately $82 million in connection with our debt-refinancing transactions, excluding the costs associated with the extinguishment of debt and other non-recurring items. We reported second quarter of 2024 adjusted net income of approximately $30 million, or 23 cents per diluted share.

Mark: I am pleased to have joined World class organization, and I look forward to working with George Brian and the rest of the management team as we continue to execute the strategic priorities of the Geo group.

Mark: For the second quarter of 2024, we reported a GAAP net loss attributable to the Geo of approximately $32 $5 million or 25 per diluted share on quarterly revenues of approximately $607 million.

Mark: Our second quarter 2024 results reflect pre tax costs associated with the extinguishment of debt of approximately $82 million in connection with our debt refinancing transactions.

Mark: Excluding the costs associated with the extinguishment of debt and other nonrecurring items, we reported second quarter 2024, adjusted net income of approximately $30 million.

Mark: Or 23 <unk> per.

Per diluted share.

Mark Suchinski: We also reported second quarter of 2024 adjusted EBDA of approximately $119 million. Beginning with revenues, quarterly revenues in our own and least secure service of segment increased by approximately 7% year over year, primarily driven by higher occupancy levels at our U.S. Marshall Service and ICE facilities. Revenues in our managed only segment increased by approximately 11% during the second quarter of 2024 compared to a year ago. This year-over-year increase in our managed-only segment was driven by higher revenues in our secure transportation and international segments. Finally, quarterly revenues in our non-residential service segment increased by approximately 6% year over year.

Mark: We also reported second quarter 2024, adjusted EBITDA of approximately $119 million.

Mark: Beginning with revenues.

Mark: Revenues in our owned and leased secure services segment increased by approximately 7% year over year, primarily driven by higher occupancy levels at our U S Marshal service and ice facilities.

Mark: Revenues in our managed only segment increased by approximately 11% during the second quarter of 2024 compared to a year ago.

Mark: This year over year increase in our managed only segment was driven by higher revenues in our secure transportation and international segments.

Mark: Yeah.

Mark: Finally quarterly revenues and our nonresidential service segment increased by approximately 6% year over year.

Mark Suchinski: These revenue increases were offset by lower quarterly revenue from our electronic monitoring and supervision services segment due to lower participant counts under the ICEP contract compared to the prior year second quarter. Turning to our expenses during the second quarter of 2024, operating expenses increased by approximately 4% as a result of inflationary cost increases, higher occupancy levels, and a shift in quarterly revenue mix compared to the second quarter of 2023. General and administrative expenses for the second quarter of 2024 reflect approximately $3 million in fees associated with the exchange and retirement of our convertible notes. Our second quarter of 2024 results also reflect a year-over-year decrease in net interest expense of approximately $5 million.

Mark: These revenue increases were offset by lower quarterly revenue from our electronic monitoring and supervision services segment due to lower participant counts under the ICF contract compared to the prior year second quarter.

Mark: Turning to our expenses.

Mark: Turning to our expenses. Taking into account our results for the first six months of 24, which include $82 million in pre-tax costs associated with the extinguishment of debt, we expect net income attributable to GEO for the full year 2024 to be in a range of $40. We expect our full year 2024 adjusted EBITDA to be between $485 million and $505 million. And for the fourth quarter of 2024, we expect net income attributable to Geo to be in a range of 22 to 29 cents per diluted share on quarterly revenues of 611 million to 621 million dollars. And we also expect fourth-quarter 2024 Adjusted EBITDA to be in the range of $125 million to $138 million. $40 million in borrowings under, Thank you, Mark. Good morning, everyone.

Mark: During the second quarter of 2024 operating expenses increased by approximately 4% as a result of inflationary cost increases higher occupancy levels and a shift in quarterly revenue mix compared to the second quarter of 2023.

Mark: General and administrative expenses for the second quarter of 2024 reflect approximately $3 million in fees associated with the exchange and retirement of our convertible notes.

Mark: Our second quarter 2024 results also reflect a year over year decrease in net interest expense of approximately $5 million.

Mark Suchinski: Now moving to our guidance for the full year and the third and fourth quarters of 2024. Taking into account our result for the first six months of 24, which include $82 million in pre-tax costs associated with the extinguishment of debt. We expect net income attributable to jail for the full year 2024 to be in a range of 40 to 51 cents per diluted share. On annual revenues of approximately $2.44 billion and an effective tax rate of approximately 24% inclusive of the known discrete items. Excluding the cost associated with the extinguishment of debt and other unusual and non-recurring items, we expect full year 2024 adjusted net income to be in a range of 82 cents to 93 cents per diluted share.

Mark: Now moving to our guidance for the full year and the third and fourth quarters of 2024.

Mark: Taking into account our result for the first six months of 'twenty, four which include $82 million in pre tax costs associated with the extinguishment of debt. We expect net income attributable to Geo for the full year 2024 to be in a range of <unk> 40.

Mark: To <unk> 51 per diluted share on annual revenues of approximately $2 $44 billion and effective tax rate of approximately 24% inclusive of the known discrete items.

Mark: Excluding the cost associated with the extinguishment of debt and other unusual and nonrecurring items. We expect full year 2024, adjusted net income to be in a range of 82.

Mark: To <unk> 93 per diluted share.

Mark Suchinski: We expect our full year 2024 adjusted EBITDA to be between $485 million and $505 million dollars. For the third quarter of 2024, we expect net income attributable to Geo to be in the range of 21 to 25 cents per diluted share on quarterly revenues of $606 million to $616 million. We expect third quarter of 2024, and for the fourth quarter of 2024, we expect net income attributable to Geo to be in the range of 22 to 29 cents per diluted share on quarterly revenues of $611 million to $621 million. And we also expect fourth quarter of 2024 adjusted EBITDA to be in the range of $125 million to $138 million.

Mark: We expect our full year 2024, adjusted EBITDA to be between $485 million and $505 million.

Mark: For the third quarter of 2024, we expect net income attributable to geo to be in the range of 21 to <unk> 25 per diluted share on quarterly revenues of 606 million to $616 million.

Mark: We expect third quarter 2024, adjusted EBITDA to be in a range of $123 million to $130 million.

Mark: And for the fourth quarter of 2024, we expect net income attributable to geo to be in the range of 22 to 29.

Per diluted share on quarterly revenues of $611 million to $621 million.

Mark: And we also expect fourth quarter 2024, adjusted EBITDA to be in the range of $125 million to $138 million.

Mark Suchinski: Our guidance for the fourth quarter of 2024 assumes a gradual moderate increase in the utilization of ICE detention beds and the number of participants monitored under the ICEP contract.

Mark: Our guidance for the fourth quarter of 2024 assumes a gradual moderate increases in the utilization of ice detention beds and the number of participants monitored under the ICF contract.

Mark Suchinski: Moving to our capital structure, during the second quarter of 2024, we completed a comprehensive refinancing of our debt. These transactions included the exchange and retirement of $229.4 million of the $230 million of our senior unsecured exchangeable notes using a combination of $229.4 million in cash and approximately $12.4 million shares of Geo common stock. As of June 30th, 2024, our senior debt was comprised of $650 million in 8.58% senior secured notes due in 2029, $625 million in 10 and a quarter percent senior unsecured notes due in 2031. Approximately $444 million in borrowings under our term loan B due in 2029, bearing interest at sulfur plus five and a quarter percent, $40 million in borrowings under a $310 million revolving credit facility, bearing interest of sulfur plus 3%, and approximately $41 million in other secured and unsecured debt.

Mark: Moving to our capital structure.

Mark: During the second quarter of 2024, we completed a comprehensive refinancing of our debt.

Mark: These transactions included the exchange and retirement of $229 $4 million.

Mark: Of the $230 million of our senior unsecured exchangeable notes using a combination of $229 4 million in cash and approximately 12 4 million shares of <unk> common stock.

Mark: As of June 32024, our senior debt was comprised of $650 million in eight and five 8% senior secured notes due in 2029.

Mark: $625 million in 10.25% senior unsecured notes due in 2031.

Mark: Approximately $444 million in borrowings under our term loan b due in 2029 bearing interest at Sulphur plus 5.25%.

Mark: <unk> $40 million in borrowings under.

Mark: A $310 million revolving credit facility bearing interest of sulfur plus 3% and approximately $41 million and other secured and unsecured debt.

Mark Suchinski: Net of cash on hand of approximately $46 million, our total net debt was just below $1.76 billion at the end of the second quarter of 2024. Under this meaningful improved debt structure, our fixed rate debt represents approximately 73% of our total debt, netted us, and we have pushed out substantially all of our debt maturities to 2029 and 2031. Going forward, we expect to continue to focus on further reducing our net debt, and we expect to end 2024 with approximately $1.65 billion in total net debt. Our goal remains to explore options for returning capital to shareholders in the future.

Mark: Net of cash on hand of approximately $46 million.

Mark: Our total net debt was just below $1 76 billion at the end of the second quarter 2024.

Mark: Under this meaningfully improved debt structure, our fixed rate debt represents approximately 73% of our total debt indebtedness and we have pushed out substantially all of our debt maturities to 2029 and 2031.

Mark: Going forward, we expect to continue to focus on further reducing our net debt and we expect to end 2024 with approximately $1 65 billion and total net debt. Our goal remains to explore options for returning capital to shareholders in the future.

James Black: At this time, I will turn the call over to James Black for a review of our DO Secure Service Business Unit.

James Slack: At this time I will turn the call over to James Slack for a review of our Geo secure services business unit.

James Black: Thank you, Mark.

James Slack: Thank you Mark good morning, everyone. It is my pleasure to review the quarterly milestones for Geo secure services.

James Black: Good morning, everyone. It is my pleasure to review the quarterly milestones for DO Secure Service. During the second quarter of 2024, our Secure Services Facilities successfully underwent a total of 62 audits, including internal audits, government reviews, third party accreditations, and Prison Rape Elimination Act, or Free Us certifications. Our GTI Transportation Division and our GeoAme UK Joint Venture completed approximately 4 million miles driven in the United States and the UK during the second quarter.

Operator: It is my pleasure to review the quarterly milestones for Geo Secure Service. Six of our secure services facilities received accreditation from the American Correctional Association. Moving to current trends for our government agency partners, we believe that our U.S. Marshals facilities provide needed bed space near federal courthouses where there is generally a lack of suitable alternative detention capacity. Notably, none of our direct contracts with the U.S.

James Slack: During the second quarter of 2020 for our secure services facilities successfully underwent a total of 62 audits, including internal audits government reviews third party accreditations and prison rape elimination.

James Slack: Bria certifications.

James Slack: Six of our secure services facilities received accreditation from the American Correctional Association with an average score of 99% and one facility received <unk> certification in the second quarter.

James Slack: Our GTR transportation Division and our Geo Amey U K joint venture completed approximately 4 million miles driven in the United States and the UK during the second quarter.

James Slack: Moving to current trends for our government agency partners.

James Black: Moving to current trends for our government agency partners. At the end of the second quarter, utilization of our U.S. Marshals Detention Facilities remains stable at over 9,000 beds, which represents an increase of approximately 8% from 1% to 1% year ago. Our U.S. Marshals facilities around the country support the agency as it carries out its mission of providing secure custodial services for pretrial detainees facing federal criminal proceedings. We believe that our U.S. Marshals facilities provide needed bed space near federal courthouses where there is generally a lack of suitable alternative detention capacity. Notably, none of our direct contracts with the U.S.

James Slack: At the end of the second quarter utilization of our U S. Marshals detention facilities remain stable at over 9000 beds, which represents an increase of approximately 8% from one year ago.

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

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

Speaker Change: Notably none of our direct contracts with the U S. Marshal services are up for renewal over the next 12 months.

James Black: Marshals services are up for renewal over the next 12 months. Moving to our ICE processing centers, we experience stable utilization of approximately 13,000 beds in the second quarter of 2024. We estimate that the utilization across all ICE facilities nationwide is currently at approximately 37,000 beds, which is 4,500 beds below the 41,500 bed level that is funded under the current fiscal year's congressional appropriation. GEO has a longstanding track record of delivering professional support services on behalf of ICE at GEO contracted ICE Processing Centers, and we stand ready to support ICE with any additional need. We have a total of 10,000 beds at several idle secure services facilities that we believe are well suited to support ICE's mission.

Speaker Change: Moving to our ice processing centers, we experienced stable utilization of approximately 13000 beds in the second quarter of 2024.

Operator: Marshals Services are up for renewal over the next 12 months, moving to our ice processing. We experienced stable utilization of approximately 13,000 beds in the second quarter of 2024. We estimate that the utilization across all ICE facilities nationwide is currently at approximately 37,000 beds, which is 4,500 beds below the 41,500 bed level that is funded under the current fiscal year's congressional appropriation. We have a total of 10,000 beds at several Idle Secure Services 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.

Speaker Change: We estimate that the utilization across all ice facilities nationwide is currently at approximately 37000 beds, which is 4500 beds below the 41500 bid level that is funded under the current fiscal year's conduct congressional appropriation.

Speaker Change: Geo has a long standing track record of delivering professional support services on behalf of ice at Geo contracted ice processing centers.

Speaker Change: We stand ready to support ice with any additional needs.

Speaker Change: We have a total of 10000 beds at several idle secure services facilities that we believe are well suited to support Ices mission and we have the expertise and resources to provide the needed and some new services to meet the agency's needs.

James Black: We have the expertise and resources to provide the needed and salary services to meet the agency's needs. GEO contracted ICE Processing Centers offer around-the-clock access to quality health care services. 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. GEO contracted ICE Processing Centers offer full access to legal counsel and legal library and resources, and we have dedicated space at each ICE Center to accommodate meetings with legal counsel. GEO contracted ICE Processing Centers provide residents with three daily meals that are culturally sensitive, special diet approved, and approved by registered dietitians.

Speaker Change: <unk> contracted ice processing centers offer a round the clock access to quality healthcare services or.

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

Speaker Change: <unk> contracted ice processing centers offer a full access to legal counsel and legal library and resources and we have dedicated space at each center to accommodate meetings with legal counsel.

Speaker Change: Geo contracted ice processing centers provide residents with three daily meals that are culturally sensitive special diet approved and approved by registered Dieticians.

James Black: We also provide access to faith-based and religious opportunities at each GEO contracted ICE processing centers. Business Center, and we partner with community volunteers as needed to ensure a fair representation of various faiths and denominations. Geo-contracted ice process centers also offer access to quality recreational activities.

Speaker Change: We also provide access to faith based and religious opportunities at each Geo contracted ice processing center and.

Operator: 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 a fair representation of various faiths and denominations. We have made significant investments in our enhanced amenities at these centers, including artificial turf soccer. During the second quarter of 2024, ICE issued a task order for the Adelanto Center, providing for continued funding through October 19, 2024, allowing additional time for ICE to obtain relief from the previously disclosed outdated COVID-related litigation that currently prevents full use of the center, which will include the resumption of intake at the Adelante Center. We provide secure ground transportation for ICE, primarily at 12 of the geocontracted ICE processes.

Speaker Change: And we partner with community volunteers as needed to ensure a fair representation of various space in denomination.

Speaker Change: <unk> contracted ice processing centers also offer access to quality recreational activities. We have made significant investments in our enhanced amenities at these centers, including artificial turf soccer fields covered pavilions.

James Black: We have made significant investments in our enhanced amenities at these centers, including artificial turf soccer fields, covered pervillion, exercise equipment, and multi-purpose rooms. Ice and Geo entered into a 15-year contract on December 19, 2019, for the provision of secure residential housing and care at our company-owned 1,940-bed Adolonto Ice Process Center in California, consisting of a five-year-based period ending on December 19, 2024, followed by two five-year option periods. During the second quarter of 2024, ICE issued a task order for Adolonto Center, providing for continued funding through October 19, 2024, allowing additional time for ICE to obtain relief from the previously disclosed outdated COVID-related litigation that currently prevents full use of the center.

Speaker Change: Exercise equipment and multipurpose rooms.

Speaker Change: <unk> entered into a 15 year contract on December 19, 2019 for the provision of secure residential housing and care at our company owned 1940 bed Adelanto ice processing center in California.

Speaker Change: Shifting over a five year base period, ending on December 19, 2024, followed by two five year option periods.

Speaker Change: During the second quarter of 2024.

Speaker Change: Issued a task order for added for the Adelanto sooner providing for continued funding through October 19, 2024, allowing additional time for ice to obtain relief from the previously disclosed outdated Covid related litigation that currently prevents full use of the center.

James Black: We hope for a positive outcome from the ongoing legal proceeding that will include the resumption of intake at the Adolonto Center. With respect to ancillary support services, we provide secure ground transportation for ice, primarily at 12 of the geo-contracted ice processing centers. And, as we noted, our GPI Transportation Division also provides secure air operation support for ice. As a subcontractor, under a five-year prime contract held by CSI Aviation.

Speaker Change: Hope for a positive outcome from the ongoing legal proceedings that.

Speaker Change: That will include the resumption of intake at the Adelanto Center.

Speaker Change: With respect to ancillary support services, we provide secure ground transportation for ice primarily at 12 of the Geo contracted ice processing centers and.

Speaker Change: And as we noted our GTI Transportation Division also provide secure air operation support for ice as a sub contractor under a five year prime contract held by CSI aviation.

James Black: We'll respect to our state segment. On June 20, we announced that Geo had been given the Oklahoma Department of Corrections notice of our intent to discontinue our management contract for the company-owned 2,388-bed Lawton Correctional Facility, which was set to expire on June 30, 2024, unless new contract terms could be mutually agreed upon. Subsequently, on June 26, we announced that Geo and the Oklahoma Department of Corrections had agreed to enter into a new one-year contract continuing Geo's operation of the Lawton Facility through June 30, 2025, under revised terms. Finally, on July 31, we successfully completed the previously disclosed transition of operations at the state-owned 1,536-bed Lawrenceville Correctional Center in Virginia, which is now managed by the Virginia Department of Corrections.

Speaker Change: With respect to our state segment on June 20th we announced that Geo headwind given the Oklahoma had given the Oklahoma Department of corrections notice of our intent to discontinue our management contract for the company owned 2388 bit Lawton Correctional.

Operator: With respect to our state segment, on June 20th, we announced that Geo had given the Oklahoma Department of Corrections notice of our intent to discontinue our management contract for the company-owned 2,388-bed Lawton Correctional Facility. Subsequently, on June 26th, we announced that Geo and the Oklahoma Department of Corrections had agreed to enter into a new one-year contract continuing Geo's operation of the Lawton facility through June 30th, 2025 under revised terms.

Speaker Change: Facility.

Speaker Change: <unk>, which was set to expire on June 32024, unless new contract terms could be mutually agreed upon.

Speaker Change: Subsequently on June 26th we announced that Geo and the Oklahoma Department of Corrections had agreed to enter into a new one year contract continuing geos operation of the law and facilities through June 32025 under our revised terms.

Speaker Change: Finally on July 31, we successfully completed the previously disclosed transition of operations at the state owned 1536 bit Lawrenceville Correctional Center in Virginia, which.

Speaker Change: Which is now managed by the Virginia Department of Corrections.

James Black: We had a long-standing partnership with the Virginia Department of Corrections, and we are proud of our decades-long record of providing high-quality services to the Commonwealth.

Speaker Change: We had a long standing partnership with the Virginia Department of Corrections and we are proud of our decades long record of providing high quality services to the Commonwealth.

Wayne Calabrese: At this time, I will turn the call over to Wayne Calibri's for a review of our GeoCare business unit.

Wayne calories: At this time I will turn the call over to Wayne calories for a review of our Geo care business unit.

Wayne Calabrese: Thank you, James. I'm pleased to provide an overview of the quarterly operational milestones for GeoCare. During the second quarter of 2024, we successfully renewed 15 residential reentry center contracts, including five contracts with the Federal Bureau of Prisons. Additionally, we retained two contracts covering eight non-residential day reporting centers in Illinois and California, and we were awarded one new contract for an additional day reporting center in California. Our residential reentry centers, non-residential day reporting centers, and our ISAP field offices successfully underwent a combined total of 79 audits, including internal audits, government reviews, third-party accreditation, and Prison Rape Elimination Act or PREA certifications during the quarter.

Wayne calories: Thank you James I am pleased to provide an overview of the quarterly operational milestones for Geo care.

Wayne calories: During the second quarter of 2024, we successfully renewed 15 residential reentry center contracts, including five contracts with the Federal Bureau of prisons. Additionally, we retained two contracts covering eight nonresidential day reporting centers.

Operator: During the second quarter of 2024, we successfully renewed 15 residential reentry center contracts, including five contracts with the Federal Bureau of Prisons. Additionally, five of our residential reentry centers received accreditation from the American Correctional Association, each with an accreditation score of 100 percent. And three of our residential reentry centers, which provide transitional housing and rehabilitation programs for individuals re-entering their communities across 14 states, received PREA certifications in the second quarter. Census levels at these centers remain stable, with an average daily population of approximately 5,000 individuals during the second quarter of the year.

Wayne calories: Illinois, and California, and we were awarded one new contract for an additional day reporting center in California.

Wayne calories: Our residential reentry centers nonresidential day reporting centers and our iPad field offices successfully underwent a combined total of 79 audits, including internal audits government reviews third party accreditations and prison rape elimination act or <unk>.

Wayne calories: Certifications during the quarter.

Wayne Calabrese: Five of our residential reentry centers received accreditation from the American Correctional Association, each with an accreditation score of 100%, and three of our residential reentry centers received PREA certifications in the second quarter. Our 34 residential reentry centers provide transitional housing and rehabilitation programs for individuals re-entering their communities across 14 states. Census levels of these centers remain stable with an average daily population of approximately 5,000 individuals during the second quarter of the year. Our non-residential and day reporting centers provide high-quality community-based services, including cognitive behavioral treatment for up to approximately 8,500 parolees and probationers at 97 locations across 10 different states.

Wayne calories: Five of our residential reentry centers received accreditation from the American Correctional Association, each with an accreditation score of 100% in three of our residential reentry centers received previous certifications in the second quarter.

Wayne calories: Our 34 residential reentry centers provide transitional housing and rehabilitation programs for individuals re entering their communities across 14 States census levels. At these centers remains stable with an average daily population of approximately 5000 individuals.

Wayne calories: During the second quarter.

Wayne calories: Of the year.

Wayne calories: Our nonresidential day reporting centers provide high quality community based services, including cognitive behavioral treatment for up to approximately 8500, parolees and probationers at 97 locations across 10 different states.

Wayne Calabrese: Moving to our geo-imprison programs and continuum of care division, during the second quarter of 2024, we delivered enhanced in-custody rehabilitation services to an average daily population of approximately 2,600 individuals at 34 in-prison program sites in seven states and to approximately 21,000 individuals at 13 geo-continuum of care facilities in eight states. During the second quarter, we successfully retained two contracts for in-prison program sites in Florida and North Carolina, and we were awarded a new contract for in-prison programs in the state of Tennessee. Our in-custody rehabilitation services include academic programs focused on helping those in our care attain high school equivalency diplomas.

Wayne calories: Moving to our Geo in prison programs and continuum of care Division during the second quarter of 2024, we delivered enhanced in custody rehabilitation services to an average daily population of approximately 2600 individuals at 34 in prison program sites.

Operator: Moving to our Geo In-Prison Programs and Continuum of Care Division. During the second quarter of 2024, we delivered enhanced in-custody rehabilitation services to an average daily population of approximately 2,600 individuals at 34 in-prison program sites in seven states and to approximately 21,000 individuals at 13 Geo Continuum of Care facilities in eight states. During the second quarter of 2024, we completed approximately 700,000 hours of enhanced in-custody rehabilitation program. During the second quarter of 2024, participant counts under the ISAP contract averaged approximately 184,000 individuals, with the current ISAP participant count at approximately 175,000 individuals.

Wayne calories: In seven states and to approximately 21000 individuals at 13 Geo continuum of care facilities in eight states.

Wayne calories: During the second quarter, we successfully retained two contracts four in prison program sites in Florida, and North Carolina, and we were awarded a new contract for in prison programs in the state of Tennessee.

Wayne calories: Are in custody rehabilitation services include academic programs focused on helping those in our care attain high school equivalency diplomas.

Wayne Calabrese: We've made a significant investment to equip all classrooms with smart boards to aid in the delivery of academic instructions at all of our facilities. We've also focused on developing vocational programs that not only lead to certification when completed, but are also based on market area job placement needs. Our substance abuse treatment programs are an important part of our rehabilitation services because many of the individuals in our care suffer from addiction and substance use disorder. Our facilities also provide extensive faith-based and character-based programs. We have designated faith-based and character-based housing units or dorms across our facilities to enhance the delivery of these important programs. During the second quarter of 2024, we completed approximately 700,000 hours of enhanced in-custody rehabilitation programming.

Wayne calories: We've made a significant investment to equip all classrooms with smart boards to aid in the delivery of academic instructions at all of our facilities.

Wayne calories: We are also focused on developing vocational programs, but not only lead to certification when completed but are also based on market area job placement needs.

Speaker Change: Our substance abuse treatment programs are an important part of our rehabilitation services because many of the individuals in our care suffer from addiction and substance use disorder.

Speaker Change: Our facilities also provide extensive faith based and character based programs. We have designated faith based in character based housing units or dorms across our facilities to enhance the delivery of these important programs.

Speaker Change: During the second quarter of 2024, we completed approximately 700000 hours of enhanced in custody rehabilitation programming.

Wayne Calabrese: Our academic programs awarded more than 900 high school equivalency diplomas during the quarter. Our vocational courses awarded close to 950 career and technical certificates in that same time. And our substance abuse treatment programs awarded approximately 900 program completions. Individuals in our care completed approximately 600 behavioral treatment programs and participated in more than 4,500 individual cognitive behavioral treatment sessions. During the second quarter of the year, we also allocated approximately $350,000 toward post-release services. This funding supported approximately 700 individuals released from GEO facilities as they return to their communities. Our Geo continuum of care integrates enhanced in-custody rehabilitation services, including cognitive behavioral treatment, with post-release support services that address critical community needs of released individuals.

Speaker Change: Our academic programs awarded more than 900 high school equivalency diplomas during the quarter, our vocational courses awarded close to 950 career and technical serve <unk> in that same time.

Our substance abuse treatment programs awarded approximately 900 program completions.

Speaker Change: Individuals in our care completed approximately 600 behavioral treatment programs and participated in more than 4500 individual cognitive behavioral treatment sessions.

Speaker Change: During the second quarter of the year, we also allocated approximately $350000 towards post release services.

Speaker Change: This funding supported approximately 700 individuals released from Geo facilities as they return to their communities.

Speaker Change: Our geo continuum of care integrates enhanced in custody rehabilitation services, including cognitive behavioral treatment.

Speaker Change: With post release support services that address critical community needs of released individuals.

Wayne Calabrese: We believe our award-winning program provides a proven model for how the 2-plus million people in the U.S. criminal justice system can be better served in changing their lives following release. Our Geo continuum of care has had a positive impact in the reduction of criminal recidivism rates, with our programs achieving a reduction between 32 and 55 percent in recidivism rates across several states over the last three years.

Speaker Change: We believe our award winning program.

Speaker Change: <unk> a proven model for how the two plus million people in the U S. Criminal Justice system can be better served and changing their lives following released.

Speaker Change: Our Geo continuum of care has had a positive impact in the reduction of criminal recidivism rates with our programs, achieving a reduction between 32% and 55% and recidivism rates across several states over the last three years.

Wayne Calabrese: 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. During the second quarter of 2024, participant counts under the ISAP contract averaged approximately 184,000 individuals, with the current ISAP participant count at approximately 175,000 individuals. BI has provided technology solutions, holistic case management, supervision, monitoring, and compliance services under the ISAP contract for almost 20 years, winning every competitive rebid of the contract since ISAP was first established. Under BI's tenure, ISAP has received bipartisan support and has achieved a high level of participant compliance with attendance at scheduled hearings using a variety of new technologies and case management services over that time.

Speaker Change: Finally, turning to our electronic monitoring and supervision services segment or <unk>.

Speaker Change: Hi subsidiary provides a full suite of monitoring and supervisors and supervision solutions products and technologies during.

Speaker Change: During the second quarter of 2024 participant accounts under the <unk> contract averaged approximately 184000 individuals with the current ICF participant count at approximately 175000 individuals.

Speaker Change: <unk> provided technology solutions holistic case management supervision monitoring and compliance services under the <unk> contract for almost 20 years, winning every competitive rebid of the contracts since <unk> was first established.

Speaker Change: Under <unk> tenure <unk> has received bipartisan support and has achieved high level of participant compliance with attendance at scheduled hearings using a variety of new technologies and case management services over that time.

Wayne Calabrese: The current ISAP contract has a term of five years that is due to expire on July 31, 2025. The Federal Government has the ability to extend existing contracts for six months or longer to accommodate rebid procurements that can often take between 12 and 18 months to complete. BI will continue to explore new and innovative technology solutions to support the needs of ICE as we prepare to compete for the rebid of this important contract. In addition to the monitoring technologies and supervision services provided to ICE under the ICEF contract, BI provides electronic monitoring services to criminal justice agencies at the federal, state, and local levels across the country.

Speaker Change: The current <unk> contract has a term of five years that is due to expire on July 31 2025.

Speaker Change: The federal government has the ability to extend existing contracts for six months or longer to accommodate rebid procurements that can often take between 12 and 18 months to complete.

Speaker Change: <unk> will continue to explore new and innovative technology solutions to support the needs of ice as we prepared to compete for the rebid of this important contract.

Speaker Change: In addition to the monitoring technologies and supervision services provided to ice under the ICF contract.

Speaker Change: <unk> provides electronic monitoring services to criminal justice agencies at the federal state and local levels across the country.

Wayne Calabrese: During the second quarter of 2024, BI successfully retained three important existing criminal justice contracts with the Administrative Office of the United States Courts, the State of South Carolina, and Sonoma County, California. Additionally, BI expects to continue competing for several state and local contracts involving several thousand electronic monitoring devices and related services, which are currently provided by other service providers.

Speaker Change: During the second quarter of 2024 by successfully retained three important existing criminal justice contracts with the administrative office of the United States courts, the state of South Carolina, and Sonoma County, California.

Speaker Change: Additionally, <unk> expects to continue competing for several state and local contracts involving several thousand electronic monitoring devices and related services, which are currently provided by other service providers.

George Zoley: At this time, I'll turn the call back to George for closing remarks.

Speaker Change: At this time I will turn the call back to George for closing remarks. Thank you Wayne in closing our diversified business units have continued to deliver.

George Zoley: Thank you, Wayne. In closing, our diversified business units have continued to deliver steady financial and operational performance. We are pleased to have completed the comprehensive refinancing of our debt, significantly enhancing our balance sheet, lowering our average cost of debt, and giving us greater flexibility to evaluate options to return capital to shareholders in the future.

George Brian: <unk> delivered steady financial and operational performance we.

George Brian: We are pleased to have completed the comprehensive refinancing of our debt significantly.

George Brian: Enhancing our balance sheet, lowering our average cost of debt and giving us greater flexibility to evaluate options to return capital to shareholders in the future.

George Zoley: Importantly, we are able to exchange and retire substantially all of our convertible notes, which we believe had created an overhang on our equity valuation. We believe that our company's real estate assets, which we estimate to have a replacement value in excess of $6 billion, along with our strong and predictable cash flows, represents an interactive valuation opportunity for investors. We also believe we have several opportunities to enhance our financial performance, and we have no competitive rebits of our existing contracts for the balance of the year. We are focused on marketing our 10,000 beds in idle facilities, which will provide significant upside if fully reactivated.

Importantly, we are able to exchange and retire substantially all of our convertible notes, which we believe had created an overhang on our equity valuation.

George Brian: We believe that our company's real estate assets, which we estimate to have a replacement value in excess of $6 billion.

George Brian: Along with our strong and predictable cash flows represents an attractive valuation opportunity for investors.

George Brian: We also believe we have several opportunities to enhance our financial performance and we have no competitive rebids of our existing contracts for the balance of the year we.

Speaker Change: We are focused on marketing our 10000.

Speaker Change: Beds in idle facilities, which will provide significant upside if fully reactivate it.

Operator: And we believe the strength of our diversified services platform positions GEO to pursue quality growth opportunities with new and existing government agency partners.

George Zoley: And we believe the strength of our diversified services platform positions Geodes to pursue quality growth opportunities with new and existing government agency partners.

Speaker Change: And we believe the strength of our diversified services platform positions geo to pursue quality growth opportunities with new and existing government agency partners that completes our remarks and we'd be glad to take questions.

Operator: That completes our remarks, and we'd be glad to take questions.

Operator: Who will now begin the question? Who will now begin the question-and-answer session? To ask a question, you may press star, then one on your touch-tone phone. If you're using a speaker phone, please pick up your handset before pressing the keys. If not, any time your question has been addressed and you would like to withdraw your question, please press star, then two.

Speaker Change: We will now begin the question.

Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.

Speaker Change: You're using a speakerphone please pick up your handset before pressing the keys.

Speaker Change: Anytime Youre question has been addressed and you would like to withdraw your question. Please press Star then two.

Joseph Gomes: And at this time, we'll take our first question from Joe Gomes with Noble Capital Markets.

Speaker Change: And at this time, we will take our first question from Joe Gomes with Noble capital markets. Please go ahead Sir.

Joseph Gomes: Please go ahead, sir.

Josh Billinen: And good morning, this is Josh Billinen on behalf of Joe.

Joshua Joseph: Good morning.

Speaker Change: Hey, Good morning, this is Josh filling in for Joe.

Joshua Joseph: This is Josh Philan and Pajel. My first question is, you guys kind of touched on that a little bit earlier, but just regarding the ISEP program, you guys talked about wanting to rebate for that, but you guys have seen any developments where the renewal of the contract to know it's kind of 12 months out, but so more color on that. You know, I think we're aware that there's been some discussions on crafting the new RFP, but I'm sure it's a point of concern that there is likely to be a new administration in place, and that administration may have its own viewpoints as to the nature and methodology they want in place in the ISEP contract, so I think they may await to see what administration is in place at that time.

Speaker Change: Good morning.

Josh: My first question is you guys kind of touched on it a little bit earlier, but this.

Regarding the ICF program, you guys talked about.

Josh: Wanting to rebid for that but you guys have you seen any developments toward the renewal of the contract to note kind of.

Josh: 12 months out but.

Speaker Change: We'll have more color on that.

Operator: You know, I think we're aware that there have been some discussions on crafting the new RFP.

Speaker Change: I think we are aware that there has been some discussions on crafting the new RFP.

Speaker Change: But I'm sure it's a point of concern that there.

Speaker Change: There is likely to be a new administration in place and that administration may have its own viewpoint SaaS too.

Speaker Change: The the nature and methodology they want in place in the ISF contract. So.

Speaker Change: I think they may await to see.

Speaker Change: What administration is in place at that time.

Joshua Joseph: Okay, yeah, that's helpful.

Speaker Change: Okay. That's helpful.

Joshua Joseph: Yeah, you guys kind of touched on more color on the air operations. I know ISEP was expected to kind of have additional flights at that June announced, you know, at any chance that maybe expand on the current contract with that or... We don't know if we haven't heard anything from CSI. No, we don't have any further information, but our capabilities are there for us to scale up the operations if the new administration comes in place and wants more activity using air support, in which we provide security for those air operations. We are certainly capable of doing that.

Speaker Change: Yes, you guys kind of touched on again in the call already but.

Can you just provide a little bit more color on the air operations I know ice was expected that kind of have additional slides.

Speaker Change: And that in June we announced.

Speaker Change: Is there any chance that maybe expand on the current contract with that or.

Speaker Change: We don't know we havent.

Speaker Change: Earn anything from CSI now we.

Speaker Change: We don't have any further information but.

Operator: Our capabilities are there for us to scale up the operations. If a new administration comes in place and wants more activity using air support in which we provide security for those air operations, we are certainly capable of doing that.

Speaker Change: Our capabilities are are there for us to scale up the operations.

Speaker Change: We have a new administration comes in place and once more activity using air support and which we provide security for those air operations. We are certainly capable of doing that.

Joshua Joseph: Okay, that's helpful.

Speaker Change: Okay. That's helpful and then.

Joshua Joseph: And then, you know, lastly, and last order, you guys talked about seeing kind of smaller scale opportunities when the state and local level has this kind of changed in the second quarter, as they kind of remain the same. I think we've seen interest among our state partners that have growth in their correctional systems as to the need for additional capacity, and you know, we've been contacted regarding some of our idle facilities that are of interest to them, and possibly on a lease or purchase basis. Okay, that's helpful, but that's all I have. Thank you, guys.

Speaker Change: Lastly, and last quarter, you guys talked about seeing kind of a smaller scale opportunities when the state and local level. How does this kind of changed in the second quarter as it kind of remains the same.

Speaker Change: I think we've seen interest among our state partners that have outgrowth in their correctional systems as to the need for additional capacity.

Speaker Change: We have been contacted regarding some of our idle facilities that are of interest to them on a possibly.

Speaker Change: On a lease or purchase basis.

Speaker Change: Okay. That's helpful. But that's all I had thank you guys.

Operator: Okay, that's helpful. But that's all I have. Thank you, guys. Thank you.

Operator: Thank you.

Speaker Change: Thank you.

Brian Violino: The next question will come from Brian, Violino with Wedbush.

Brian <unk>: The next question will come from Brian <unk> with Wedbush. Please go ahead.

Operator: The next question will come from Brian Violino with Wedbush. Please go ahead.

Brian Violino: Please go ahead.

Thanks, Good morning.

Brian Violino: Thanks, good morning. Just wanted to ask a couple of clarify questions on the new guide. Sounds like you're assuming a modest uptick in both monitoring and ice detention in the fourth quarter. Is it fair to say that that's purely being driven by the budget sort of rolling over versus any assumed increased natural water activity? Well, as I think I commented in my presentation, during the second quarter, and probably continuing in the third quarter, there have been financial constraints by virtue of some additional spending and use of detention beds and ICE participation earlier in the federal fiscal year, which begins October 1 and began October 1 of last year.

Brian <unk>: Just wanted to ask a couple of clarifying questions on the New guide.

Brian <unk>: It sounds like Youre, assuming a modest uptick in both monitoring and retention in the fourth quarter is it fair to say that thats purely being driven by the budget sort of rolling over versus any assumed increased natural border activity.

Speaker Change: Well as I think I commented in my presentation.

Operator: Well, as I think I commented in my presentation, that And that's what I think they've been doing.

Speaker Change: During the second quarter, and probably continued into the third quarter, there have been financial constraints.

Speaker Change: By virtue of some.

Speaker Change: Additional spending in.

Speaker Change: Use of detention beds, an ice participation earlier in the.

Speaker Change: Federal fiscal year, which begins October one and began October one of last year.

Brian Violino: And what we've seen in this administration is not to use additional budgetary authority to replenish funds for ICE in particular, but to stay within their budget, so to speak. And that's what I think they've been doing, and that's been reflected in the number of beds they use and the number of ice that participants. But come October 1 of this fall, they will replenish, so to speak, their budgets and be capable of achieving higher levels of use of detention beds as well as ICE that participation. Got it, and just to clarify, say there was some reason, you know, if that didn't come to fruition that up thick, would that move us towards the lower end of the full year guidance, or is there a potential that, you know, if that doesn't happen, we could go potentially below the low end of the current guidance.

Speaker Change: And what we've seen in this administration is.

Speaker Change: Not to us.

Speaker Change: Additional budgetary authority too.

Speaker Change: To replenish funds for ice in particular, but to stay within their budget, so to speak and Thats, what I think they have been doing.

Speaker Change: And thats been reflected in the number of beds, they use and the number of <unk>.

Speaker Change: <unk> participants, but come October one.

Speaker Change: Okay.

This fall they will replenish so to speak their budgets.

Speaker Change: And be capable of achieving higher levels of use of detention beds as well as ice.

Speaker Change: <unk> participation.

Speaker Change: Got it and just to clarify say there was some reason.

Operator: Got it. And just to clarify, say there was some reason, if that didn't come to fruition, that uptick, would that move us towards the lower end of the full year guidance? Or is there a potential that, you know, if that didn't happen, we could go potentially below the low end of the current guidance?

Speaker Change: That didn't come to fruition that uptick would that move us towards the lower end of the full year guidance or is there a potential that that doesn't happen. We could go potentially below the low end of the current guidance.

Brian Evans: Brian It's Brian Evans.

Brian Violino: Brian, it's Brian Evans. We think that if the numbers hold where they are, trend down a little bit, that will be closer to the lower end of the range, as we said before. And that's why we moved the range a little bit and tightened it up. Got it.

Brian Evans: We think that if the numbers hold where they are trend down a little bit that will be closer to the lower end of the range as we said before and that's why we moved the range a little bit and tightened it up.

Got it and last one for me I just wanted to touch on Capex noticed at the Capex outlook has been moving higher over the past couple of quarters. Just wondering if you could provide some commentary on whatsapp.

Brian Violino: And last one for me, I just want to clutch on cat backs. Notice that the cat backs outlook has been moving higher over the past couple of quarters. Just wanted to provide some commentary on what's going on.

Brian Evans: Okay.

Brian Violino: Well, we have done some significant improvements, and I think in two particular facilities, one in Oklahoma and one in New Jersey.

Speaker Change: Well, we have done some significant improvements and I think in two particular facilities.

Speaker Change: One in Oklahoma and one in New Jersey.

Speaker Change: Alright.

Operator: That's right; that's right.

Speaker Change: Okay.

Operator: The next question will come from Brendan McCarthy with Sedoti. Please go ahead. Hey, good morning, everybody. Thanks for taking my questions. I just wanted to ask a follow-up on the past question with the expectation for the replenishment of funds come October 1st. Is that a soon, or are you assuming that that's during another continuing resolution or a CR to start fiscal 25? Yes, that assumes a CR, which pegs at the 41,500 level for detention beds and 470 million for ISAP. It's not the enhanced level of funding as proposed in the House bill, which would take the bed count to 50,000.

Speaker Change: The next question will come from Brendan Mccarthy with Sidoti. Please go ahead.

Brendan Mccarthy: Hey, good morning, everybody. Thanks for taking my questions just wanted to ask a follow up on the past question.

Operator: With the expectation for the replenishment of funds come October 1st, is that assumed, or are you assuming that it's through another continuing resolution or a CR to start fiscal 25?

Brendan Mccarthy: With the expectation for the replenishment of funds come October one.

Speaker Change: Does that assume or are you assuming that thats, another continuing resolution or CR to start fiscal 'twenty five.

Speaker Change: Yes.

Speaker Change: That assumes a CR.

Speaker Change: Which is which pegs at the 41500 level for detention beds and $470 million for ICF.

Speaker Change: It's not the enhanced.

Speaker Change: The level of funding as proposed in.

Speaker Change: The house, Bill, which would take the bed count to 50000.

Speaker Change: Okay.

Operator: Okay, okay, and then just looking at through the rest of this federal fiscal year, it sounds like there's pretty low, there's a pretty low chance that the HS may reprogram funds towards ICE, is that fair to say?

Speaker Change: Okay. Okay, and then just looking at through the rescue.

Speaker Change: Through the rest of this federal fiscal year. It sounds like there is pretty low and there is a pretty low chance that that EHS may re program funds towards <unk> is that fair to say.

Operator: I think it is evidently avoided doing that for, I think at least the last year. Okay, okay, that makes sense. And then want to look at the Coleman Hall purchase and sale agreement, wondering if you can provide color on how that transaction develops and maybe potential use of proceeds there. So you're talking about Coleman, Hoffman Hall that is, as we've said, is that I said I think Mark mentioned the we have reentry facilities that some of those are idle and they're well placed for sale, and we entered into a purchase and sale agreement with that.

Speaker Change: I think it is I think David.

David: Evidently avoided doing that for.

David: I think at least the last year.

Speaker Change: Okay. Okay that makes sense and then I wanted to look at the Coleman Hall purchase and sale agreement I'm wondering if you can provide color on how that transaction developed and maybe potential use of proceeds there.

Neil: Hi, Neil.

Speaker Change: So youre talking about Coleman Hoffman Hall that is as we've said is that I said I think Mark mentioned.

We have reentry facilities at some of those are.

Speaker Change: Idle and they are well placed for.

Speaker Change: For sale and we entered into a purchase and sale agreement with that it was slightly below our book values and we recognize that difference in the quarter. We would expect the transaction if it closes there are obviously some outs in there.

Operator: For sale, and we entered into a purchase and sale agreement with that. It was slightly below our book values, and we recognize that difference in the quarter. We would expect the transaction, if it closes, there are obviously some outs in there, to close by the end of the year or very early next year.

Operator: But it was slightly below our book values, and we recognize that difference in the quarter we would expect the transaction if it closes. There are obviously some outs in there for it to close by the end of the year or very early next year.

Speaker Change: To close by the end of the year or very early next year.

Brian: Got it. Okay. Thanks, Brian. And one more for me.

Wayne Calabrese: Okay, thanks, Brian, and one more for me looking at Be Honest, a suite of products. I think I noticed there's been a little bit more traction with the bear watch product. Can you just talk about what you're seeing there and how that product is, you know, resonating among customers. This Wayne Calibre is the primary interest for the bear watch has been with the ISAP participants, the ISAP contract, and a little bit of trials in the criminal justice strictly at some of the local levels, and it is functioning well and being well received. It is lighter and perhaps a little less cumbersome.

Speaker Change: Got it okay, Thanks, Brian and one more for me.

Speaker Change: Looking at.

Speaker Change: Our suite of products.

Speaker Change: I think I've noticed there's been a little bit more traction with the <unk> product can you just talk about what youre seeing there and how that product is resonating among customers.

Speaker Change: This is <unk>.

Speaker Change: The primary interest of the <unk> has been with the ice App participants the ICF contract, it's been a little bit of.

Speaker Change: Our trials in the criminal justice, particularly at some of the local levels.

Speaker Change: And it is functioning well and being well received it is lighter and perhaps a little less cumbersome.

Wayne Calabrese: But it's still early days for the product, and we have good expectations for it. This time, we'll see how the market adapts. Yeah, I think there was always an interest with ice in particular for a risk worn device monitoring device that it's less of intrusive individuals as compared to the ankle monitor. And this bear watch device that we have is more has the look of a contemporary watch; you wouldn't know that a person is wearing a monitoring device by looking at this watch, and that's one of the main attributes of it.

Speaker Change: But it's still early days for the products we have.

Speaker Change: Good expectations for it at this time, we will see how the market adapts.

Speaker Change: Yes, I think there is always an interest.

Speaker Change: With ice in particular for our wrist worn.

Speaker Change: Device monitoring device that it's less obtrusive to individuals as compared to the ankle monitor and this <unk>.

Speaker Change: <unk> watch device that we have is more has the look of the contemporary watch you would know that a person is wearing a monitoring device by looking at this clock.

Speaker Change: And Thats.

Speaker Change: One of the main attributes of it.

Wayne Calabrese: Got it, got it, and just out of curiosity, how long do those trials typically last, and what's the, you know, success rate, I guess, with, you know, transitioning those trials into a contract. No, we're not in trial mode at this time; only in a couple of local government criminal justice contracts, and they're very small. There might be 10, 15 units being trialed by, say, a sheriff's office or a parole probation kind of an office. They can continue for a couple of months; they're just trying to get a sense of how this works out for them. Most of the law enforcement agencies around the country still prefer the ankle monitor GPS type.

Speaker Change: Got it got it and then just out of curiosity, how long do those trials typically last and what's the success.

Speaker Change: <unk> success rate I guess with <unk>.

Speaker Change: Transitioning those trials into a contract.

Speaker Change: No we're not in trial mode. At this time only only in a couple of local government criminal justice contracts and they are very small and there might be 10 to 15 units being trialed by say, a sheriff's office or a parole and probation economy on office. They can continue for a couple of months there just trying to get a sense of how this works out for.

Speaker Change: Them most of the law enforcement.

Speaker Change: <unk> around the country still prefer the ankle monitor GPS type.

Speaker Change: Appliances, but we've seen steady growth.

Wayne Calabrese: Appliances, but we've seen steady growth in the ISAP participation market where numbers in excess of 5,000 at this point using the Geo Verilotch. And I think just to add to what Wayne said when he said piloting or testing the device is fully functioning and operationally and use it's more just putting it out there for certain clients to see how they like it and what they might use it for.

Speaker Change: The ice ice staff participation.

Speaker Change: Market.

Speaker Change: Of.

Numbers in excess of 5000 at this point using.

G Ofarrell: The G Ofarrell watch and I think just to add to what Wayne said when he said piloting our testing that the device is fully functioning and operationally in use it's more just.

Speaker Change: Putting it out there for certain clients to see how they like it and what they might use it for alright.

Operator: Got a guy. Thanks for the insight, everybody. That's all from me.

Speaker Change: Got it got it thanks for any insight everybody that's all from me.

Gregory Gibas: The next question will come from Greg Gibas with Northland Securities. Please go ahead.

Greg <unk>: The next question will come from Greg <unk> with Northland Securities. Please go ahead.

Greg <unk>: Okay.

Gregory Gibas: Thank you. More on the guy, thanks for taking the questions. If I could follow up just on kind of guidance assumptions in your commentary there, you know, would we expect Q3 then to be relatively flat in terms of kind of where things are currently trending from an ISAP perspective and then detention 2, and then once those replenishment of funds hit Q4, kind of seeing a nice step up.

Greg <unk>: Hey, good morning, guys. Thanks for taking the questions.

Greg <unk>: If I could follow up just on kind of guidance assumptions in your commentary there.

Speaker Change #101: We expect Q3, then to be relatively flat.

Speaker Change #102: In terms of kind of where things are currently trending from an <unk> perspective, and then detention two and then once those replenishment of funds hit.

Speaker Change #102: Q4 kind of seeing a nice step up.

Gregory Gibas: Yeah, I think Q3 is a continuation of Q2, with the exception of the expenses that occurred during the re-financing.

Speaker Change #103: Yes, I think Q3 is a continuation of Q2 with the exception of the expenses that occurred during the refinancing.

Speaker Change #104: Okay fair enough.

Gregory Gibas: And you know what do you kind of believe will be the likely outcome at the Edeland facility? Well, we're hopeful there's a legal settlement because the original prohibition was for continued intake was based on the concerns about COVID, which has gone away a couple of years ago. And there's no medical reasons, no healthcare reasons for this facility to have an intake restriction, and it's the only such facility that has an intake restriction in the entire country. So, we're hoping that DOJ will be successful in their discussions with the plaintiffs to reach an admirable resolution to resume intake at that facility.

Speaker Change #105: And what are you what are you kind of believe will be the likely outcome at the adelanto facility.

Speaker Change #105: Well, we're hopeful there is a legal settlement because.

Speaker Change #105: The original prohibition was.

Speaker Change #105: Four continued intake was based on the concerns about Covid, which has.

Speaker Change #105: Gone away a couple of years ago.

Speaker Change #105: And.

Speaker Change #105: There is no there is no medical reason no health care reasons for this.

Speaker Change #105: Facility too.

Speaker Change #106: <unk> have an intake restriction and it's the only such facility that has an intake restriction in the entire country.

Speaker Change #106: So we're hoping.

Speaker Change #106: The Doj will be successful in their discussions with the plaintiffs to reach an amicable resolution to resume intake at that facility.

Gregory Gibas: Okay, that makes sense.

Speaker Change #106: Okay. It makes sense.

Gregory Gibas: And you know, I guess lastly, considering the refinancing of debt kind of behind you, you talked about evaluating recurring capital to shareholders. It wanted to get a better sense since it's kind of a likelihood of that and you know, so we think about 2025 being more likely, just curious how you're thinking about that. I think that would be the case, you know, when we would have greater visibility as to the new administration and their objectives and how we fit into those objectives. Yeah, I think that's a good target date. Got it, thanks, guys.

Speaker Change #106: And I guess lastly, just.

Speaker Change #107: Considering the refinancing of debt is kind of behind you.

Speaker Change #107: You talked about evaluating returning capital to shareholders wanted to get a better sense.

Speaker Change #108: Kind of the likelihood of that and should we think about 2025 being more likely just curious how youre thinking about that.

Speaker Change #109: I think that would be the case and when we would.

Speaker Change #110: Have greater visibility as to the new administration and their objectives and how we fit in to those objectives <unk> I think that's a good target date.

Speaker Change #111: Got it thanks guys.

Jason Weaver: The next question will come from Jason Weaver with Jones Trading. Please go ahead.

Speaker Change #111: The next question will come from Jason Weaver with Jones trading. Please go ahead.

Operator: Looking at BI's suite of products,

Jason Weaver: Hey, good morning. Thanks for taking my question.

Jason Weaver: Hey, good morning, Thanks for taking my question.

Jason Weaver: Now, I may be misconstruing this, but in your prepared remarks, you mentioned the possible expansion of the ISAP program under the current health appropriations bill. It seems to me that growing from 175,000 to the total number of the non-detained docket, it's kind of a high bar, even if most of that's just within an app. Can you give any sense to how that might be rolled out and your capacity to service it? The rollout of up to, let's just pick a number six million participants would obviously be a very complicated and resource-intensive operation, but having said that we have field offices throughout the United States that are ready.

Jason Weaver: No maybe misconstruing this but in your prepared remarks, you mentioned the possible expansion of the ISR program under the current house Appropriations Bill it.

Jason Weaver: It seems to me that growing from 175000 to the total number of the non detained docket, it's kind of a high bar even if most of that is just within an app can you give any sense to how that might be rolled out and your capacity to service it.

Jason Weaver: Sure.

Jason Weaver: Okay.

Jason Weaver: The roll out of up to let's just pick a number 6 million participants would obviously be a very complicated and.

Speaker Change #113: Resource intensive operation, but having said that we have field offices throughout the United States that are ready are.

Jason Weaver: We're ready to expand. We have the technology, everything from GPS technology to apps on a phone, all of which can be used, as well as the person-centric services such as case management, so we would be able to accommodate whatever growth ICE and a new administration might want to put us to service. We can do it if requested and will be prepared to be a good partner to government once they establish their policy.

Speaker Change #114: We are ready to expand we have the technology everything from GPS technology to apps on the phone all of which can be used as well as the person centric circus services, such as case management. So we would be able to accommodate whatever growth.

Speaker Change #115: Ice and a new administration might want to put.

Speaker Change #116: Put us too.

Speaker Change #116: Service, we can do it if requested and we will be prepared to be a good partner to government once they establish their policy.

Jason Weaver: Got it, thank you.

Speaker Change #117: Got it thank you.

Jason Weaver: Then, along the lines, the same question that was asked just a moment ago, post the debt restructuring. Any sort of change in your, the trade off between returning capital shareholders versus further reduction, how do you think about that today? Well, again, it's a timing issue, and it needs to be based on knowledge of the objectives of the new administration and how we fit into those objectives. We'll have to balance our own decisions on that information as it comes forward. Jason, it's Mark. I just had, again, the first focus is delivering, so we've got some internal targets we want to get to from a debt standpoint, and once we get close to that, then we're going to have this opportunity to explore what George just talked about in conjunction with the business opportunities as we roll into 2025.

Speaker Change #118: And then along the lines of the same question that was asked just a moment ago.

Speaker Change #119: Post the debt restructuring.

Speaker Change #120: Sort of change in your the tradeoff between returning capital to shareholders versus.

Speaker Change #121: Further debt reduction how do you think about that today.

Speaker Change #121: Yes.

Speaker Change #122: Well again, its a timing issue.

Speaker Change #122: It needs to be based on.

Speaker Change #122: Knowledge of.

Speaker Change #122: Of the objectives of the new administration, and how we fit into those objectives and we will.

We'll have to balance.

Speaker Change #122: Our.

Speaker Change #122: Our own decisions.

Speaker Change #122: That information as it comes forward, yes, Jason its mark I'd just add.

Speaker Change #122: Ken.

Speaker Change #123: The first focus is delevering. So we've got some internal targets, we want to get to from us.

Speaker Change #123: From a debt standpoint, and once we get close to that then we're going to have this opportunity to explore what George just talked about.

Speaker Change #123: In conjunction with the business opportunities as we roll into 2025.

Jason Weaver: And I think also, as we've said before, we will continue, once we get to that point where we can allocate capital to shareholders, we're going to continue to focus on debt reduction, but we'll find the proper balance between those two based on, as George discussed, the different opportunities that arise at that time and what the cash flows look like. All right, very helpful. Thank you for that. That is a good timing for middle and middle to late next year. Got it.

Speaker Change #124: And I think also as we've said before we will continue once we get to that point, where we can allocate capital to shareholders. We're going to continue to focus on debt reduction, but we will find the proper balance between those two based on as George discussed the different.

George Brian: Opportunities that arise at that time and what the cash flows look like.

Speaker Change #125: Alright very helpful. Thank you for that that is at a good timing for Midland Middle to late next year.

Speaker Change #125: Yeah.

Speaker Change #126: Got it alright very helpful. Thank you for the color.

Jason Weaver: All right, very helpful. Thank you for the color.

Jordan Hymowitz: The next question will come from Jordan Himowitz, with Philadelphia Financial.

Speaker Change #127: The next question will come from Jordan Hymowitz with Philadelphia Financial. Please go ahead.

Jordan Hymowitz: Please go ahead. Thanks, guys.

Jordan Hymowitz: Alright, Thanks, guys most of my question's been answered thanks.

Jordan Hymowitz: Most of my questions, but I answered two things. The smart watches, I mean, there's opposition from some democratic or progressive circles for the anger monitoring business. The smart watches have less of a political opposition because they're less invasive. They seem more exclusionary, or whatever the word you want to use, this. I suppose that I can't speak for those who are in opposition or might be progressive politically, but I suppose that the watch is attractive in the sense that it is less cumbersome. It is less weight. It is certainly...

Speaker Change #129: More watches I mean, there is opposition from the from some democratic or progressive circles.

Speaker Change #130: Hi here monitoring business.

Speaker Change #131: <unk> just have less of a political opposition because they are less invasive they seem more exclusionary or whatever word you want to use this.

Speaker Change #132: I suppose.

Speaker Change #133: That I can't speak for those who are in opposition or might be progressive politically, but I suppose that the watch is attractive in the sense that it is less cumbersome it has less weight.

Speaker Change #133: Certainly.

Jordan Hymowitz: Less of an obstacle to moving around and saying ankle monitor, it achieves most of the, if not all of the requirements that the government has for monitoring and, most importantly, ensuring compliance for folks who have hearings to attend. But all of that is supplemented by the people who do the work in our field offices and who work throughout the day to make sure that people who are on monitoring, whatever kind it may be, have the opportunity to connect with program resources in their communities and to understand the requirements of appearing for the required hearings they have.

Speaker Change #133: Less of an obstacle to moving around and say an ankle monitor it achieved most of the if not all of the requirements that the government has for monitoring and most importantly, ensuring compliance.

Speaker Change #133: For folks who have hearings to attend but all of that is.

Speaker Change #134: Supplemented by the people who do the work in our field offices and who work throughout the day to make sure that people that people who are on monitoring whatever kind it may be have the opportunity to connect with.

Speaker Change #134: Program resources in their communities and to understand the requirements of the of appearing.

Speaker Change #134: For the required hearings they have.

Jordan Hymowitz: Let me push that a little different way. Have you gotten any interest from any municipalities or districts or regions for the smartwatch that you have not gotten from the ankle monitoring that may be a little more progressive in some ways? Yeah, again, it's still early days for the agencies outside of ISAP contract. Some of them have expressed real interest recently. One of the agencies that was visited in one of the southeastern states, I believe, said they would like to entertain the use of the verawatts. They were very interested in seeing it in action and to see how it fit with their policy goals.

Speaker Change #135: Let me just add a little different way have you gotten any interest from any municipalities or district or region as part of the smartwatch that you have not guided from the ankle monitoring.

Speaker Change #136: And maybe a little more progressive in some ways.

Speaker Change #136: Again, it's still early days for the.

Speaker Change #137: The agencies outside of SaaS contracts some of them have expressed interest recently one of the agencies that was visited and one of the southeastern States I believe said they would like to entertain the use of the <unk>. They were very interested in seeing it.

Speaker Change #138: Inaction and to see how it fit with their their policy goals and I think also we've seen as Wayne just mentioned, that's a perspective, but we also have some.

Jordan Hymowitz: I think also we've seen, as Wayne just mentioned, that's a prospective bid, but we also have some current contracts that just rebid, and it was included within those bids as a technology offer that they wanted to make sure was available. Now, how much the user remains to be seen as we said earlier, but we're starting to see some of that develop in the contract as Wayne said, and we've seen it in some existing contracts that were just renewed recently.

Speaker Change #139: <unk> contracted just rebid and it was included within those bids as a technology offer that they wanted to make sure was available now.

Wayne calories: How much they'll use it remains to be seen as we said earlier, but we're starting to see some of that develop in the contract as Wayne said and we've seen it in some existing contracts that were just renewed recently.

Jordan Hymowitz: Got a separate question. As you mentioned, that most of the conCR resolutions are done at the existing level of the 41,000. Do you have any quantitative data that's something like 90% of CRs are done at the level where it's before, as opposed to an increase or a decrease? In other words, is there any data behind it, if not for this necessary product, but what the history has been on CRs changing the ratio of what was done before? Or is that, by the definition of a CR, that it keeps me just in love? A CR by definition is a completely resolution of existing funding levels every time.

Speaker Change #140: Got it separate question is you mentioned that most of the CR resolutions are done at the existing level of 41000.

Speaker Change #141: Do you have any quantitative data that something like 90% of <unk> well done.

Speaker Change #142: At the level, where it's before as opposed to an increase or a decrease in other words is there any data behind it if not for this necessary product, but what the history has been on Crs changing the ratio of what we started before or is that by the definition of a CR, but it keeps no just kidding.

Speaker Change #143: Dr by definition is a.

Speaker Change #144: Resolution of existing funding levels every time not higher not lower stays the same right.

Jordan Hymowitz: Not higher, not lower. It stays the same. Right. Got it. Thank you.

Speaker Change #144: Got it thank you.

Speaker Change #144: Okay.

Operator: This concludes our question-and-answer session.

Speaker Change #146: This concludes our question and answer session I would like to turn the conference back over to Mr. George solely executive Chairman of the Geo group for any closing remarks. Please go ahead Sir.

George Zoley: I would like to turn the conference back over to Mr. George Zoli, Executive Chairman of the Geo Group for an enclosure remark. Please go ahead, sir. Thank you for joining us this quarter, and we look forward to addressing you in the next quarter.

Operator: I have high expectations for it at this time. We'll see how the market adapts.

George Soley: Thank you for joining us this quarter and we look forward to addressing you in the next quarter.

Operator: with ice, in particular for a wrist worn.

Operator: Well, we're hopeful there's a legal settlement because continued intake was based on.

Jason Weaver: Your next question will come from Jason Weaver with Jones Trading. Please go ahead. Hey, good morning. Thanks for taking my question.

Operator: resource-intensive operation. But having said that, we have field offices throughout the United States that are ready to go, ready to expand. We have the technology, everything from GPS technology to apps on a phone, all of which can be used, as well as person-centric services such as case management. So we would be able to accommodate whatever growth ICE and a new administration might want to put us in service. We can do it if requested, and we'll be prepared to be a good partner to the government once they establish their policy. Got it.

Operator: of further debt reduction. What how do you think about that?

Operator: And I think also, as we've said before, once we get to that point where we can allocate capital to shareholders, we will continue to focus on debt reduction, but we'll find a proper balance between those two based on, as George discussed, the different opportunities that arise at that time and what the cash flow is.

Jordan Hymowitz: The next question will come from Jordan Hymowitz with Philadelphia Financial. Please go ahead. Thanks.

Operator: Exclusionary or whatever the word you want to use is.

Operator: The conference has now concluded.

Operator: for folks who have hearings to attend. But all of that is.

Speaker Change #147: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: Yeah, again, it's still early days for the agencies outside of ISAP contracts. Some of them have expressed real interest. Recently, one of the agencies that were visited in one of the southeastern states, I believe, said they would like to entertain the use of VeriWatch. They were very interested in seeing it in action and to see how it fit with their policy goals.

Operator: A CR, by definition, is a continuing resolution on existing funding levels every time.

Operator: Thank you for attending today's presentation.

Operator: Thank you for joining us this quarter, and we look forward to addressing you in the next quarter. The conference has now concluded. Thank you for attending today's presentation.

Operator: You may now disconnect.

Speaker Change #147: Okay.

Speaker Change #147: [music].

Speaker Change #147: [music].

Speaker Change #147: Yes.

Speaker Change #147: Okay.

Speaker Change #147: [music].

Yes.

Speaker Change #147: [music].

Speaker Change #147: Okay.

Speaker Change #147: [music].

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Speaker Change #147: Yes.

Speaker Change #147: Yes.

Speaker Change #147: Sure.

Speaker Change #147: Okay.

Speaker Change #147: Yes.

Speaker Change #147: [music].

Speaker Change #147: Sure.

Speaker Change #147: Okay.

Speaker Change #147: [music].

Sure.

Speaker Change #147: Yes.

Speaker Change #147: [music].

Speaker Change #147: Yes.

Speaker Change #147: Yeah.

Speaker Change #147: Yes.

Speaker Change #147: [music].

Speaker Change #147: Yes.

Speaker Change #147: Yes.

Speaker Change #147: [music].

Speaker Change #147: Okay.

Operator: [music]

Speaker Change #147: Okay.