The GEO Group Reports Third Quarter 2013 Results

  The GEO Group Reports Third Quarter 2013 Results

  *3Q13 Income from Continuing Operations per Share up 80%
  *3Q13 Normalized FFO up 24.6%; 3Q13 AFFO up 32.3%
  *2013 AFFO Guidance of $204-$207 million or $2.85 to $2.88 per Diluted
    Share
  *Quarterly Dividend Increased 10% to $0.55 per Share

Business Wire

BOCA RATON, Fla. -- November 6, 2013

The GEO Group, Inc. (NYSE:GEO) (“GEO”), the world’s leading provider of
diversified correctional, detention, and community reentry services, reported
today its financial results for the third quarter 2013.

Third Quarter 2013 Highlights

  *Income from Continuing Operations of $0.45 per Diluted Share
  *Net Operating Income of $95.9 million
  *Normalized FFO of $0.59 per Diluted Share
  *AFFO of $0.72 per Diluted Share

For the third quarter 2013, GEO reported Normalized Funds From Operations
(“Normalized FFO”) of $42.1 million, or $0.59 per diluted share, an increase
of 24.6% from $33.8 million, or $0.55 per diluted share, for the third quarter
2012. GEO reported third quarter 2013 Adjusted Funds From Operations (“AFFO”)
of $51.8 million, or $0.72 per diluted share, an increase of 32.3% from $39.1
million, or $0.64 per diluted share, for the third quarter 2012.

GEO reported net operating income for the third quarter 2013 of $95.9 million
compared to $101.0 million for the third quarter of 2012. Net operating
income, or gross profit, is defined as revenues less operating expenses,
excluding depreciation and amortization expense and general and administrative
expenses.

George C. Zoley, Chairman and Chief Executive Officer of GEO, said: “We are
pleased with our third quarter results, which continue to reflect strong
operational and financial performance from our diversified business units.
During the third quarter, we achieved several important milestones including
several new contract awards totaling more than 5,700 beds which are expected
to generate approximately $98 million of annualized revenue. We have also
increased our quarterly dividend by 10% to $0.55 per share. We continue to be
optimistic regarding the growth opportunities in our industry which we expect
will continue to create value for our shareholders.”

GEO reported total revenues for the third quarter 2013 of $379.8 million
compared to total revenues of $369.1 million for the third quarter 2012. GEO
reported third quarter 2013 income from continuing operations of $0.45 per
diluted share, compared to $0.25 per diluted share for the third quarter 2012.

GEO’s third quarter 2013 earnings reflect offsetting non-ordinary charges and
benefits including a net tax benefit of $4.6 million offset by $1.5 million,
after-tax, related to the write-off of deferred financing fees in connection
with GEO’s recently completed defeasance of non-recourse bonds associated with
the South Texas Detention Complex. GEO’s operating expenses also reflect $6.2
million in accrual adjustments to GEO’s insurance reserves.

First Nine Months 2013 Highlights

  *Income from Continuing Operations of $1.25 per Diluted Share
  *Net Operating Income of $294.6 million
  *Normalized FFO of $1.76 per Diluted Share
  *AFFO of $2.15 per Diluted Share

For the first nine months of 2013, GEO reported Normalized FFO of $125.7
million, or $1.76 per diluted share, an increase of 34.4% from $93.5 million,
or $1.53 per diluted share, for the first nine months of 2012. GEO reported
AFFO of $153.7 million, or $2.15 per diluted share, for the first nine months
of 2013, an increase of 38.6% from $110.9 million, or $1.82 per diluted share,
for the first nine months of 2012.

Net operating income for the first nine months of 2013 increased to $294.6
million from $292.3 million for the first nine months of 2012. Net operating
income, or gross profit, is defined as revenues less operating expenses,
excluding depreciation and amortization expense and general and administrative
expenses.

For the first nine months of 2013, GEO reported total revenues of $1.14
billion compared to total revenues of $1.10 billion for the first nine months
of 2012. GEO reported income from continuing operations of $1.25 per diluted
share for the first nine months of 2013, compared to $0.82 per diluted share
for the first nine months of 2012.

GEO’s earnings for the first nine months of 2013 reflect offsetting
non-ordinary charges and benefits including net tax benefits of $13.0 million
offset by $4.7 million, after-tax, in one-time expenses associated with GEO’s
REIT conversion and by $5.8 million, after-tax, related to the write-off of
deferred financing fees. GEO’s operating expenses also reflect $6.2 million in
accrual adjustments to GEO’s insurance reserves.

Net Operating Income, Funds From Operations (“FFO”), Normalized FFO, and AFFO
are widely used non-GAAP supplemental financial measures of REIT performance.
Please see the section of this press release below entitled “Note to
Reconciliation Tables and Supplemental Disclosure - Important Information on
GEO’s Non-GAAP Financial Measures” for information on how GEO defines these
supplemental Non-GAAP financial measures.

2013 Financial Guidance

GEO confirmed and updated its financial guidance for the fourth quarter 2013
and full-year 2013 to reflect its recent refinancing transaction and the
reactivation of its Central Valley and Desert View Modified Community
Correctional Facilities in California. GEO confirmed its fourth quarter 2013
revenue guidance in a range of $378 million to $383 million. GEO confirmed its
AFFO guidance for the fourth quarter 2013 in a range of $0.70 to $0.73 per
diluted share, or $50 million to $53 million.

On a GAAP basis, GEO updated its fourth quarter 2013 income from continuing
operations guidance to reflect approximately $1.0 million, or $0.01 per
diluted share, in after-tax start-up expenses associated with the reactivation
of GEO’s Central Valley and Desert View Modified Community Correctional
Facilities in California as well as $8.0 million, after-tax, or $0.12 per
diluted share, related to the write-off of deferred financing fees in
connection with GEO’s recent $250 million, 5^7/[8]% senior notes offering and
its tender offer and redemption of $250 million in GEO’s 7^3/[4]% senior notes
due 2017. Incorporating these items, GEO expects fourth quarter 2013 GAAP
income from continuing operations to be in a range of $0.29 to $0.31 per
diluted share.

GEO expects its full year 2013 AFFO guidance to be in a range of $2.85 to
$2.88 per diluted share, or $204 million to $207 million. On a GAAP basis, GEO
expects its income from continuing operations for the full year 2013 to be in
a range of $1.54 to $1.56 per diluted share, including approximately $14.0
million, after-tax, or $0.20 per diluted share, related to the write-off of
deferred financing fees and $4.7 million, after-tax, or $0.07 per diluted
share, in one-time expenses associated with GEO’s REIT conversion offset by
net tax benefits of $13.0 million, or $0.18 per diluted share.

Dividend Update

On November 4, 2013, GEO announced that on November 1, 2013, its Board of
Directors declared a quarterly cash dividend of $0.55 per share which will be
paid on November 26, 2013 to shareholders of record as of the close of
business on November 14, 2013. GEO’s quarterly cash dividend of $0.55 per
share, or $2.20 per share annually, represents a 10% increase from GEO’s
previous regular quarterly cash dividend. The declaration of future quarterly
cash dividends is subject to approval by GEO’s Board of Directors and to
meeting the requirements of all applicable laws and regulations. GEO’s Board
of Directors retains the power to modify its dividend policy as it may deem
necessary or appropriate in the future.

Reconciliation Tables and Supplemental Disclosure

GEO has made available a Supplemental Disclosure which contains reconciliation
tables of operating income to net operating income, income from continuing
operations to EBITDA and Adjusted EBITDA, and income from continuing
operations to FFO, Normalized FFO and AFFO along with supplemental financial
and operational information on GEO’s business segments and other important
operating metrics. Please see the section of this press release below entitled
“Note to Reconciliation Tables and Supplemental Disclosure - Important
Information on GEO’s Non-GAAP Financial Measures” for information on how GEO
defines these supplemental financial measures and reconciles them to the most
directly comparable GAAP measures. GEO’s Reconciliation Tables can be found
herein and in GEO’s Supplemental Disclosure which is available on GEO’s
Investor Relations webpage at www.geogroup.com.

GEO’s 2012 financial results are presented throughout as retrospectively
revised for discontinued operations resulting from the discontinuation of
three managed-only contracts with the State of Mississippi during the third
quarter of 2012 and the divestiture of the healthcare facility business
previously held by GEO’s former wholly-owned subsidiary, GEO Care, Inc., which
was completed on December 31, 2012.

Conference Call Information

GEO has scheduled a conference call and simultaneous webcast for today at
11:00 AM (Eastern Time) to discuss GEO’s third quarter 2013 financial results
as well as its progress and outlook. The call-in number for the U.S. is
1-888-680-0865 and the international call-in number is 1-617-213-4853. The
conference call participant passcode is 72717785. In addition, a live audio
webcast of the conference call may be accessed on the Conference
Calls/Webcasts section of GEO’s investor relations webpage at
www.geogroup.com. A replay of the audio webcast will be available on the
website for one year. A telephonic replay of the conference call will be
available until December 6, 2013 at 1-888-286-8010 (U.S.) and 1-617-801-6888
(International). The conference call participant passcode for the telephonic
replay is 59839118.

About The GEO Group

The GEO Group, Inc. (NYSE: GEO) is the first fully integrated equity real
estate investment trust specializing in the design, financing, development,
and operation of correctional, detention, and community reentry facilities
around the globe. GEO is the world's leading provider of diversified
correctional, detention, and community reentry services to government agencies
worldwide with operations in the United States, Australia, South Africa, and
the United Kingdom. GEO's worldwide operations include the ownership and/or
management of 96 facilities totaling approximately 73,000 beds with a growing
workforce of approximately 18,000 professionals.

Note to Reconciliation Tables and Supplemental Disclosure –
Important Information on GEO’s Non-GAAP Financial Measures

Net Operating Income, EBITDA, Adjusted EBITDA, Funds from Operations,
Normalized Funds from Operations and Adjusted Funds from Operations are
non-GAAP financial measures that are presented as supplemental disclosures.

GEO has presented herein certain forward-looking statements about GEO's future
financial performance that include non-GAAP financial measures, including, Net
Operating Income, EBITDA, Adjusted EBITDA, FFO, Normalized FFO, and AFFO. The
determination of the amounts that are excluded from these non-GAAP financial
measures is a matter of management judgment and depends upon, among other
factors, the nature of the underlying expense or income amounts recognized in
a given period. While we have provided a high level reconciliation for the
guidance ranges for full year 2013, we are unable to present a more detailed
quantitative reconciliation of the forward-looking non-GAAP financial measures
to their most directly comparable forward-looking GAAP financial measures
because management cannot reliably predict all of the necessary components of
such GAAP measures. The quantitative reconciliation of the forward-looking
GAAP financial measures will be provided for completed annual and quarterly
periods, as applicable, calculated in a consistent manner with the
quantitative reconciliation of non-GAAP financial measures previously reported
for completed annual and quarterly periods.

Net Operating Income, or gross profit, is defined as revenues less operating
expenses, excluding depreciation and amortization expense and general and
administrative expenses.

EBITDA is defined as income from continuing operations before net interest
expense, income tax provision/benefit, depreciation and amortization, and tax
provision on equity in earnings of affiliates. Adjusted EBITDA is defined as
EBITDA adjusted for net income/loss attributable to non-controlling interests,
non-cash stock-based compensation expenses, and certain other adjustments as
defined from time to time. Given the nature of our business as a real estate
owner and operator, we believe that EBITDA and Adjusted EBITDA are helpful to
investors as measures of our operational performance because they provide an
indication of our ability to incur and service debt, to satisfy general
operating expenses, to make capital expenditures and to fund other cash needs
or reinvest cash into our business. We believe that by removing the impact of
our asset base (primarily depreciation and amortization) and excluding certain
non-cash charges, amounts spent on interest and taxes, and certain other
charges that are highly variable from year to year, EBITDA and Adjusted EBITDA
provide our investors with performance measures that reflect the impact to
operations from trends in occupancy rates, per diem rates and operating costs,
providing a perspective not immediately apparent from income from continuing
operations. The adjustments we make to derive the non-GAAP measures of EBITDA
and Adjusted EBITDA exclude items which may cause short-term fluctuations in
income from continuing operations and which we do not consider to be the
fundamental attributes or primary drivers of our business plan and they do not
affect our overall long-term operating performance. EBITDA and Adjusted EBITDA
provide disclosure on the same basis as that used by our management and
provide consistency in our financial reporting, facilitate internal and
external comparisons of our historical operating performance and our business
units and provide continuity to investors for comparability purposes.

Funds from Operations, or FFO, is defined in accordance with standards
established by the National Association of Real Estate Investment Trusts, or
NAREIT, which defines FFO as net income/loss attributable to common
shareholders (computed in accordance with United States Generally Accepted
Accounting Principles), excluding real estate related depreciation and
amortization, excluding gains and losses from the cumulative effects of
accounting changes, extraordinary items and sales of properties, and including
adjustments for unconsolidated partnerships and joint ventures. Normalized
Funds from Operations, or Normalized FFO, is defined as FFO adjusted for
certain items which by their nature are not comparable from period to period
or that tend to obscure GEO’s actual operating performance.

Adjusted Funds from Operations, or AFFO, is defined as Normalized FFO adjusted
by adding non-cash expenses such as non-real estate related depreciation and
amortization, stock based compensation and the amortization of debt costs and
other non-cash interest and by subtracting recurring real estate expenditures
that are capitalized and then amortized, but which are required to maintain
REIT properties and their revenue stream.

Because of the unique design, structure and use of our correctional
facilities, we believe that assessing performance of our correctional
facilities without the impact of depreciation or amortization is useful and
meaningful to investors. Although NAREIT has published its definition of FFO,
companies often modify this definition as they seek to provide financial
measures that meaningfully reflect their distinctive operations. We have
modified FFO to derive Normalized FFO and AFFO that meaningfully reflect our
operations. Our assessment of our operations is focused on long-term
sustainability. The adjustments we make to derive the non-GAAP measures of
Normalized FFO and AFFO exclude items which may cause short-term fluctuations
in income from continuing operations but have no impact on our cash flows, or
we do not consider them to be fundamental attributes or the primary drivers of
our business plan and they do not affect our overall long-term operating
performance.

We may make adjustments to FFO from time to time for certain other income and
expenses that do not reflect a necessary component of our operational
performance on the basis discussed above, even though such items may require
cash settlement. Because FFO, Normalized FFO and AFFO exclude depreciation and
amortization unique to real estate as well as non-operational items and
certain other charges that are highly variable from year to year, they provide
our investors with performance measures that reflect the impact to operations
from trends in occupancy rates, per diem rates, operating costs and interest
costs, providing a perspective not immediately apparent from income from
continuing operations. We believe the presentation of FFO, Normalized FFO and
AFFO provide useful information to investors as they provide an indication of
our ability to fund capital expenditures and expand our business. FFO,
Normalized FFO and AFFO provide disclosure on the same basis as that used by
our management and provide consistency in our financial reporting, facilitate
internal and external comparisons of our historical operating performance and
our business units and provide continuity to investors for comparability
purposes. Additionally, FFO, Normalized FFO and AFFO are widely recognized
measures in our industry as a real estate investment trust.

Safe-Harbor Statement

This press release contains forward-looking statements regarding future events
and future performance of GEO that involve risks and uncertainties that could
materially affect actual results, including statements regarding financial
guidance for the fourth quarter 2013 and full year 2013 and estimates of
annualized revenue from new contract awards. Factors that could cause actual
results to vary from current expectations and forward-looking statements
contained in this press release include, but are not limited to: (1) GEO’s
ability to meet its financial guidance for 2013 given the various risks to
which its business is exposed; (2) GEO’s ability to declare future quarterly
cash dividends and the timing and amount of such future cash dividends; (3)
GEO’s ability to successfully pursue further growth and continue to create
shareholder value; (4) risks associated with GEO’s ability to control
operating costs associated with contract start-ups; (5) GEO’s ability to
timely open facilities as planned, profitably manage such facilities and
successfully integrate such facilities into GEO’s operations without
substantial costs; (6) GEO’s ability to win management contracts for which it
has submitted proposals and to retain existing management contracts; (7) GEO’s
ability to obtain future financing on acceptable terms; (8) GEO’s ability to
sustain company-wide occupancy rates at its facilities; (9) GEO’s ability to
access the capital markets in the future on satisfactory terms or at all; (10)
GEO’s ability to remain qualified as a REIT; (11) the incurrence of REIT
related expenses; and (12) other factors contained in GEO’s Securities and
Exchange Commission periodic filings, including its form 10-K, 10-Q and 8-K
reports.

Third quarter and first nine months 2013 financial tables to follow:

                                                                                              
Condensed Consolidated Statements of Income
                                                                      
(In thousands
except per
share data)
(Unaudited)                 Three           Three           Nine Months         Nine Months
                            Months          Months
                            Ended           Ended           Ended               Ended
                            30-Sep-13       30-Sep-12       30-Sep-13           30-Sep-12
Revenues                    $ 379,842       $ 369,116       $ 1,138,526         $ 1,100,331
Operating                     283,903         268,142         843,946             808,003
expenses
Depreciation
and                           23,888          22,944          70,480              68,145
amortization
General and
administrative               27,222        26,428        86,625            79,143    
expenses
Operating                     44,829          51,602          137,475             145,040
income
Interest income               1,084           1,651           3,433               5,219
Interest                      (21,569 )       (20,605 )       (62,013   )         (62,029   )
expense
Loss on
extinguishment               (1,451  )      (8,462  )      (6,978    )        (8,462    )
of debt
Income before
income taxes,
equity in
earnings of                   22,893          24,186          71,917              79,768
affiliates and
discontinued
operations
Income tax
(benefit)                     (7,755  )       10,125          (14,142   )         32,275
provision
Equity in
earnings of
affiliates, net              1,526         474           3,772             1,652     
of income tax
provision
Income from
continuing                    32,174          14,535          89,831              49,145
operations
Income (loss)
from
discontinued                 (2,265  )      192           (2,265    )        3,117     
operations, net
of income tax
provision
Net income                    29,909          14,727          87,566              52,262
Net (income)
loss
attributable to              (12     )      890           (42       )        881       
non-controlling
interests
Net income
attributable to             $ 29,897       $ 15,617       $ 87,524           $ 53,143    
The GEO Group,
Inc.
                                                                                              
Weighted
average shares
outstanding
                Basic         71,201          60,906          71,046              60,838
                Diluted       71,655          61,302          71,557              61,083
                                                                                              
Income per
share from
continuing
operations
attributable to
The GEO Group,
Inc.
                Basic       $ 0.45          $ 0.25          $ 1.26              $ 0.82
                Diluted     $ 0.45          $ 0.25          $ 1.25              $ 0.82
                                                                                              
                                                                                              
Income per
share
attributable to
The GEO Group,
Inc.
                Basic       $ 0.42          $ 0.26          $ 1.23              $ 0.87
                Diluted     $ 0.42          $ 0.25          $ 1.22              $ 0.87

                                                            
Condensed Consolidated Balance Sheets                       

(In thousands)
                                               (Unaudited)
                                                                             
                           ASSETS              30-Sep-13         31-Dec-12
Current Assets
      Cash and cash                            $ 53,161          $ 31,755
      equivalents
      Restricted cash and investments            9,337             15,654
      Accounts receivable, less allowance        244,558           246,635
      for doubtful accounts
      Current deferred income tax assets         18,290            18,290
      Prepaid expenses and other current        48,481           24,849
      assets
                       Total current assets     373,827          337,183
Restricted Cash and                              24,303            32,756
Investments
Property and Equipment,                          1,729,407         1,687,159
Net
Assets Held for Sale                             1,200             3,243
Direct Finance Lease                             19,310            26,757
Receivable
Non-Current Deferred Income Tax Assets           2,532             2,532
Goodwill                                         490,230           490,308
Intangible Assets, Net                           167,085           178,318
Other Non-Current Assets                        87,511           80,938
      Total Assets                             $ 2,895,405       $ 2,839,194
                           LIABILITIES AND
                           SHAREHOLDERS'
                           EQUITY
Current Liabilities
      Accounts payable                           46,057            50,110
      Accrued payroll and related taxes          46,437            39,322
      Accrued expenses                           119,268           116,557
      Current portion of capital lease
      obligations, long-term debt, and           17,120            53,882
      non-recourse debt
      Current liabilities of discontinued       2,265            -
      operations
                       Total current            231,147          259,871
                       liabilities
                                                                             
Non-Current Deferred Income Tax Liabilities      15,703            15,703
Other Non-Current                                74,224            82,025
Liabilities
Capital Lease Obligations                        11,177            11,926
Long-Term Debt                                   1,448,233         1,317,529
Non-Recourse Debt                                80,548            104,836
Total Shareholders' Equity                      1,034,373        1,047,304
      Total Liabilities and Shareholders'      $ 2,895,405       $ 2,839,194
      Equity

                                                                        
Reconciliation of Income from Continuing Operations to Funds from                   
Operations, Normalized FFO, and Adjusted Funds from Operations
                                                 
(In thousands)
(Unaudited)             Three            Three            Nine Months       Nine Months
                        Months           Months
                        Ended            Ended            Ended             Ended
                        30-Sep-13        30-Sep-12        30-Sep-13         30-Sep-12
Income from
Continuing              $ 32,174         $ 14,535         $ 89,831          $ 49,145
Operations
Net (Income) Loss
Attributable to           (12    )         890              (42     )         881
Non-controlling
Interests
Real Estate Related
Depreciation and         13,123         12,796         38,374          37,915  
Amortization
Funds from              $ 45,285        $ 28,221        $ 128,163        $ 87,941  
Operations
                                                                                        
Funds from              $ 45,285         $ 28,221         $ 128,163         $ 87,941
Operations
REIT Conversion
Related Expenses,         -                605              4,697             605
net of tax
Tax Benefit Related
to IRS Settlement &       (4,622 )         -                (13,038 )         -
REIT Conversion
Loss on
Extinguishment of        1,451          4,977          5,847           4,977   
Debt, net of tax
Normalized Funds        $ 42,114        $ 33,803        $ 125,669        $ 93,523  
from Operations
                                                                                        
Normalized Funds        $ 42,114         $ 33,803         $ 125,669         $ 93,523
from Operations
Non-Real Estate
Related                   10,765           10,148           32,106            30,230
Depreciation &
Amortization
Consolidated
Maintenance Capital       (5,140 )         (7,388 )         (14,436 )         (20,188 )
Expenditures
Stock Based
Compensation              2,423            1,579            5,768             5,012
Expenses
Amortization of
Debt Costs and           1,594          972            4,609           2,341   
Other Non-Cash
Interest
Adjusted Funds from     $ 51,756        $ 39,114        $ 153,716        $ 110,918 
Operations (AFFO)
                                                                         
Normalized FFO Per      $ 0.59          $ 0.55          $ 1.76           $ 1.53    
Diluted Share
                                                                         
AFFO Per Diluted        $ 0.72          $ 0.64          $ 2.15           $ 1.82    
Share
                                                                                        
Weighted Average
Common Shares             71,655           61,302           71,557            61,083
Outstanding-Diluted

                                                                    
Reconciliation
of Operating
Income to Net                                         
Operating
Income
                                                                                  
(In thousands)
(Unaudited)         Three           Three           Nine            Nine
                    Months          Months          Months          Months
                    Ended           Ended           Ended           Ended
                    30-Sep-13       30-Sep-12       30-Sep-13       30-Sep-12
Operating           $  44,829       $ 51,602        $ 137,475       $ 145,040
Income
Depreciation
and                    23,888         22,944          70,480          68,145
amortization
General and
administrative        27,222        26,428         86,625         79,143
expenses
Net Operating       $  95,939       $ 100,974       $ 294,580       $ 292,328
Income

Reconciliation
of Income from
Continuing                                                         
Operations to
Adjusted EBITDA
                                                                      
(In
thousands)
(Unaudited)         Three            Three           Nine Months       Nine
                    Months           Months                            Months
                    Ended            Ended           Ended             Ended
                    30-Sep-13        30-Sep-12       30-Sep-13         30-Sep-12
Income from
continuing          $ 32,174         $  14,535       $ 89,831          $ 49,145
operations
Interest              20,485            18,954         58,580            56,810
expense, net
Income tax
(benefit)             (7,755 )          10,125         (14,142 )         32,275
provision
Depreciation
and                   23,888            22,944         70,480            68,145
amortization
Tax provision
on equity in         578             234           1,472           858
earnings of
affiliates
EBITDA              $ 69,370         $  66,792       $ 206,221         $ 207,233
                                                                                     
Adjustments
Net (income)
loss
attributable to       (12    )          890            (42     )         881
non-controlling
interests
Stock based
compensation          2,423             1,579          5,768             5,012
expenses,
pre-tax
REIT conversion
related               -                 1,000          7,438             1,000
expenses,
pre-tax
Loss on
extinguishment       1,451           8,462         6,978           8,462
of debt,
pre-tax
Adjusted            $ 73,232        $  78,723       $ 226,363        $ 222,588
EBITDA

                                                             
2013 Outlook/Reconciliation                                 
                                                                             
(Unaudited)
(In thousands except per share data)
                                                                             
                                              Full Year 2013
                                                                             
Net Income                                    $ 110,000     to   $ 112,000
Real Estate Related Depreciation and           52,000           52,000  
Amortization
Funds from Operations (FFO)                   $ 162,000    to   $ 164,000 
                                                                             
REIT Conversion Related Expenses &              19,000             19,000
Write-Off of Deferred Financing Fees
Tax Benefit                                    (13,000 )         (13,000 )
Normalized Funds from Operations              $ 168,000    to   $ 170,000 
                                                                             
Non-Real Estate Related Depreciation and        43,000             43,000
Amortization
Consolidated Maintenance Capex                  (21,000 )          (23,000 )
Non-Cash Stock Based Compensation and          14,000           17,000  
Non-Cash Interest Expense
Adjusted Funds From Operations (AFFO)         $ 204,000    to   $ 207,000 
                                                                             
Net Cash Interest Expense                       80,000             80,000
Consolidated Maintenance Capex                  21,000             23,000
Income Taxes                                   -                5,000   
Adjusted EBITDA                               $ 305,000    to   $ 315,000 
                                                                             
G&A Expenses                                    105,000            106,000
Non-Cash Stock Based Compensation              (7,000  )         (8,000  )
Net Operating Income                          $ 403,000    to   $ 413,000 
                                                                             
FFO Per Share                                 $ 2.26        to   $ 2.28
AFFO Per Share                                $ 2.85        to   $ 2.88
Weighted Average Common Shares                  71,700             71,800
Outstanding-Diluted

Contact:

The GEO Group, Inc.
Pablo E. Paez, 866-301-4436
Vice President, Corporate Relations
 
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