It's official GEO have Harmondsworth
The GEO Group, Inc. (NYSE: GEO) ("GEO") announced today that its
wholly owned U.K. subsidiary, GEO UK Ltd., has been selected by the
United Kingdom Border Agency as the preferred bidder for the
management and operation of the Harmondsworth Immigration Removal
Centre (the "Centre") located in London, England.
The contract for the management and operation of the Centre would
have a term of three years and is expected to generate approximately
$14.0 million in annual revenues for GEO. Under the terms of the
contract, GEO would take over management of the existing Centre,
which has a current capacity of 260 beds on June 29, 2009.
Additionally, the Centre will be expanded by 360 beds bringing its
capacity to 620 beds when the expansion is completed in June 2010.
Upon completion of the expansion, GEO's management contract is
expected to generate approximately $19.5 million in annual revenues.
George C. Zoley, Chairman and Chief Executive Officer of GEO, stated:
"We feel honored to have been given this opportunity to strengthen
our public-private partnership with the Home Office in the United
Kingdom, where we have managed the Campsfield House Immigration
Removal Centre since 2006. We look forward to the assumption of
operations at the Harmondsworth Immigration Removal Centre."
The GEO Group, Inc. ("GEO") is a world leader in the delivery of
correctional, detention, and residential treatment services to
federal, state, and local government agencies around the globe. GEO
offers a turnkey approach that includes design, construction,
financing, and operations. GEO represents government clients in the
United States, Australia, South Africa, and the United Kingdom. GEO's
worldwide operations include the management and/or ownership of 66
correctional and residential treatment facilities with a total design
capacity of approximately 64,000 beds, including projects under
development.
This press release contains forward-looking statements regarding
future events and future performance of GEO that involve risks and
uncertainties that could materially affect actual results, including
statements regarding estimated earnings, revenues and costs and our
ability to maintain growth and strengthen contract relationships.
Factors that could cause actual results to vary from current
expectations and forward-looking statements contained in this press
release include, but are not limited to: (1) GEO's ability to
successfully pursue further growth and continue to enhance
shareholder value; (2) GEO's ability to access the capital markets in
the future on satisfactory terms or at all; (3) risks associated with
GEO's ability to control operating costs associated with contract
start-ups; (4) GEO's ability to timely open facilities as planned,
profitably manage such facilities and successfully integrate such
facilities into GEO's operations without substantial costs; (5) GEO's
ability to win management contracts for which it has submitted
proposals and to retain existing management contracts; (6) GEO's
ability to obtain future financing on acceptable terms; (7) GEO's
ability to sustain company- wide occupancy rates at its facilities;
and (
other factors contained in GEO's Securities and Exchange
Commission filings, including the forms 10-K, 10-Q and 8-K reports.
