Slide 1: Investor Presentation 3Q22
- Confidential - Investor Presentation 3Q22 Exhibit 99.1
Slide 2: Highlights - Attractive Investment Characteristics
Strong Financial Performance 3Q22 Adjusted EBITDA increased 17 percent year-over-year to more than $136 million, the highest quarterly run rate in company history. Adjusted EBITDA for trailing 12 months exceeded $500 million for the first time ever. Increased FY22 Adjusted EBITDA guidance: $527 mill
Slide 3: Company Overview
Company Overview
Slide 4: Company History
Founded in 1984 Initial Public Offering (IPO) in 1994 Listed on NYSE in 1996 Included in Major Indexes: S&P 600 Russell 2000 18,000 Employees Company History
Slide 5: Diversified Government Service Provider
Secure Residential Care ICE Processing Centers USMS Detention Facilities State Correctional and Rehabilitation Facilities Non-Secure Residential Care Residential Reentry Centers/Halfway Houses Non-Residential Services Day Reporting Centers Electronic Monitoring Services provided in US, Australia, UK
Slide 6: GEO Corporate Structure
GEO Corporate Structure GCG. Corporate Structure Ge@oamey tation Services “K. + 1,424Beds + 7Fa
Slide 7: Diversified U.S. Facility Footprint
Diversified U.S. Facility Footprint 51 GEO Secure Services Facilities 41 GEO Care Residential Facilities
Slide 8: International Services
International Services 4 International Facilities
Slide 9: GEO is a Leading Diversified Services Provider
GEO is a Leading Diversified Services Provider 82,000 40% 27,000 14% 17,000 8% GEO is a leading provider of diversified secure and community reentry services with a 40% share of the market 70,200 57,500 1,000 * Based on total beds including idle and under development for U.S. headquartered companies
Slide 10: Difficult to Replace Real Estate
17.6 Million Sq. Ft. owned and/or managed 57,500 Owned/Leased Beds Economic Useful Life: 75+ Years Newer Facility Assets = 19-Year Avg. Age Difficult to Replace = High Barriers to Entry Difficult permitting and zoning Long development lead times High Capital Intensity $2 billion in book long-term as
Slide 11: Segment Trends
Segment Trends
Slide 12: Segment Trends: Demand for Diversified Government Services
Available capacity at existing residential reentry centers Growth in Non-Residential Programs Demand for Diversified Government Services Segment Trends ICE USMS U.S. Southwest Border Crossings Increased use of Alternatives To Detention Program Continued Capacity Needs Lack of alternatives Aging Stat
Slide 13: U.S. Immigration and Customs Enforcement
U.S. Immigration and Customs Enforcement FEDERAL SEGMENT Reentry Services Increased use of Alternatives To Detention Program U.S. Southwest Border Crossings Source: U.S. Customs and Border Protection FY Southwest Land Border Encounters by Month (https://www.cbp.gov/newsroom/stats/southwest-land-bord
Slide 14: U.S. Marshals Service (USMS)
U.S. Marshals Service (USMS) Stable USMS Detention Populations (2014 – YTD2022) Source: 2014-2021 figures are taken from the USMS FY 2023 Performance Budget (https://www.justice.gov/file/1493071/download#:~:text=The%20USMS%20requests%20a%20total,for%20FPD%20in%20FY%202023.) Source: YTD2022 Figures a
Slide 15: Aging Public Prisons
Aging Public Prisons Source: Bureau of Justice Statistics; State DOC Websites Aging Public Prison Facilities are Costly and Less Safe More than 200,000 Public Prison Beds are Older than Economic Useful Life of 75 years Close to 100,000 Public Prison Beds are 100+ Years Old GEO Prison Portfolio is Si
Slide 16: Available Beds in Inventory
Available Beds in Inventory Secure Services Facilities Location Ownership Bed Count Great Plains Correctional Facility OK Owned 1,940 D. Ray James Correctional Facility GA Owned 1,900 Flightline Correctional Facility TX Owned 1,800 North Lake Correctional Facility MI Owned 1,800 Big Spring Correctio
Slide 17: Financial Overview
Financial Overview
Slide 18: Financial Highlights
Financial Highlights * Reconciliation of Non-GAAP measures included in GEO’s 3Q22 Earnings Release & Supplemental Q3 2022 Q3 2021 YTD 2022 YTD 2021 Revenue $616,683 $557,277 $1,756,045 $1,699,073 Net Income Attributable to GEO $38,337 $34,710 $130,283 $127,214 Adjusted EBITDA $136,199 $116,032 $393,
Slide 19: Revenues by Segment
Revenues by Segment 61% 31% 8% * Based on YTD 2022 results
Slide 20: Diversified Long-Term, High-Quality Customer Relationships
Federal Government 48% Revenues By Customer (YTD2022) Long-term relationships with top customers – 30+ Years with Federal Gov’t *Non-Residential includes ICE Alternatives to Detention and other federal, state and local contracts Diversified Long-Term, High-Quality Customer Relationships
Slide 21: FY2022 Guidance
FY2022 Guidance Net Income Attributable to GEO $160 Million - $162 Million + Depreciation and Amortization $136 Million - $136.5 Million - (Gain)/Loss on Asset Divestitures, pre-tax ($32.5 Million) - Facility Maintenance Capex ($20 Million) + Transaction Related Expenses, pre-tax $1.3 Million + Non-
Slide 22: Debt Reduction
Debt Reduction Since the beginning of 2020, GEO reduced net recourse debt by ~$400 million (as of 3Q22). Over the next two years, GEO expects to reduce net recourse debt by at least $200 million annually. Based on this level of debt reduction, GEO’s goal would be to decrease net leverage to below 3.
Slide 23: Debt Maturity Overview
Note: Borrowing under Revolving Credit Facility excluded to the extent cash on hand exceeds balance Note: Excludes finance leases and scheduled amortization Debt Maturity Overview Debt Maturity Schedule (Pre - Transaction) Remaining Unsecured Notes 2L Facility Unsecured Notes Revolver Term Loan Debt
Slide 24: Environmental, Social & Governance (ESG) Overview
Environmental, Social & Governance (ESG) Overview
Slide 25: High Quality Government Contracts
All Investment Grade Customers Required by Law to Pay on Time: 45-60 days No Receivables Problems Payment Schedule: Monthly Billing Majority of Contracts Include Fixed Monthly Payments Company-Wide Occupancy Averages in the mid-90s Contract Terms: Average Length of 7-10 Years Customer Retention: In
Slide 26: Highly Regulated / Professional Services
Lengthy Written Contracts Specifying all Service Requirements On-Site, Full-Time Customer Contract Monitors at Facilities in the U.S. Full-time GEO Compliance Monitors at Facilities in the U.S. American Correctional Association Accreditation with Scores in Excess of 99% National Commission on Correc
Slide 27: Fourth Annual Human Rights and ESG Report
In Early October, GEO published our Fourth Annual Human Rights and ESG Report. The report includes enhanced disclosures related to our Board oversight of human rights and ESG matters, employee diversity and training programs, corporate governance, and environmental sustainability, with updated ESG m
Slide 28: GEO's ESG Objectives
To implement best practices that follow recognized global Human Rights standards and respect the basic human rights of all individuals in our care. To be a leading provider of enhanced in-custody rehabilitation programs and post-release support services through our award-winning GEO Continuum of Car
Slide 29: Board Oversight
Periodic review of GEO’s bylaws, Code of Business Conduct and Ethics, and corporate governance guidelines Annual review of GEO’s Political Activities and Contributions Policy and Report Annual review of GEO’s political contributions and lobbying expenditures Board Oversight Criminal Justice Rehabili
Slide 30: Human Rights Due Diligence Process
With the assistance of a third-party ESG firm, GEO conducted a human rights due diligence process, focusing on identifying salient human rights based on the nature of GEO’s services. GEO’s human rights risk assessment involved a four-step process that included active engagement with all critical sta
Slide 31: Stakeholder Interviews
Stakeholder Interviews GEO conducted 26 interviews with internal and external stakeholders to gain a wide view on potentially salient human rights. Internal stakeholders included members of GEO’s Board of Directors, executive leadership and division heads, subject matter experts, and frontline emplo
Slide 32: Diversified Employer
Diversity We are proud to be a diversified employer. Women comprise an equal portion of our domestic workforce and play a significant role in our leadership and management. Across GEO, under-represented minorities account for 66% of our U.S. workforce. Employee Training We have a robust training pro
Slide 33: Environmentally Responsible
GEO’s Environmental Sustainability Policy Statement is disclosed in Annual ESG Report. GEO also provides disclosures on energy consumption statistics, water usage metrics, and Greenhouse Gas (GHG) Scope 1 and Scope 2 Emissions and Intensity Ratios. GEO’s commitment to sustainable building practices
Slide 34: World Class Health Care
Disclosures in our Human Rights and ESG Report demonstrate the high quality of medical services provided across GEO’s Secure Services facilities in the U.S. In 2021, our Secure Services Health Care Division oversaw nearly 800,000 medical encounters, including intake health screenings, physical exams
Slide 35: GEO Continuum of Care: Rehabilitator of Lives
GEO Continuum of Care® focuses on integrating in-custody evidence-based rehabilitation with post-release services aimed at reducing recidivism. GEO Continuum of Care®: Rehabilitator of Lives GEO Continuum of Care 2021 Milestones: Completed approximately 2.8 million hours of rehabilitation programmin
Slide 36: COVID-19 Mitigation Initiatives
As the COVID-19 pandemic has impacted communities across the United States, ensuring the health and safety of our employees and all those in our care has always been our number one priority. GEO’s COVID-19 mitigation initiatives have included: Testing We invested $2M to acquire 45 Abbott Rapid COVID
Slide 37: Appendix
Appendix
Slide 38: Income Statement
Income Statement =o wo yo EE s 16683 Ss 987.277 S 1,756.045 $1,699,073 Operating expe: 436,210 399,900 1,233,162 1,233,060 Depreciation and amortizatios 92,330 32,883 100,284 100,306 eral and administrative expen: 50,022 50,475 147,878 193,642 Operating income 98,121 74,019 274,721 212,065 Interest
Slide 39: Balance Sheet
Balance Sheet As of, As of ‘September 30, 2022 Decomber 31, 2021 (noudtec (unauie) ASSETS: cash and cath eat : oss sooaos oceanic seas ° oe aan Seam anne ro pee ‘Total current assets s $ peated ant ozo rease posiennleieaaing aon aeunaes ae ° orn Operating Lease Right-of-Use Assets, Net 95,119 112,18
Slide 40: Debt Maturity Schedule
Debt Maturity Schedule Vee | ee ee ee es | [ee ee | Fating| evar Borongs du 2028 s -s s - 8 os os - os - 3 oa - 3 : ever Borowings due 2027 - 19.000 7 . 7 : “anehe 1 Term Loan dve 2027 vans 22850 12800 22850 2850 675008 - - - - “Tanebe 2 Term Loan due 2027 2 28700 : : : : ‘Tosa bt 3 tors $ ase $ aoe