The GEO Group, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a mixed performance compared to the previous fiscal period. For the three months ended September 30, 2024, the company generated revenues of $603.1 million, a slight increase from $602.8 million in the same period of 2023. Operating income decreased to $82.4 million from $83.6 million year-over-year. However, net income rose to $26.3 million, compared to $24.5 million in the prior year, resulting in a basic and diluted earnings per share of $0.19, up from $0.17 and $0.16, respectively.
In contrast, the nine-month results showed a significant decline in profitability. Net income for the nine months ended September 30, 2024, was $16.4 million, a sharp drop from $82.0 million in the same period of 2023. This decline was reflected in the earnings per share, which fell to $0.12 from $0.56. The company attributed this decrease to various factors, including increased operating expenses and a substantial loss on extinguishment of debt amounting to approximately $85.3 million, primarily due to refinancing activities.
The GEO Group's total revenues for the nine months reached $1.82 billion, a modest increase from $1.80 billion in the previous year. The U.S. Secure Services segment saw a revenue increase of 7.2%, driven by higher occupancy rates and per diem amounts, despite a decrease in revenues from Electronic Monitoring and Supervision Services, which fell by 24.9% due to lower participant counts.
Strategically, the company made notable moves, including the acquisition of a healthcare services entity in Australia for approximately $3.9 million. Additionally, GEO transitioned its operations at the state-owned Lawrenceville Correctional Center to the Virginia Department of Corrections in July 2024. The company also retired $229.7 million of its 6.50% Exchangeable Senior Notes during the second and third quarters of 2024.
As of September 30, 2024, GEO reported total assets of $3.63 billion, down from $3.70 billion at the end of 2023. Cash and cash equivalents decreased to $70.6 million from $93.9 million. The company’s long-term debt was reduced to $1.64 billion from $1.73 billion, reflecting its ongoing efforts to manage its capital structure effectively.
Overall, while GEO Group experienced revenue growth in the third quarter, the significant decline in net income for the nine-month period highlights challenges in profitability and operational efficiency.