Joshua Joseph's questions to Geo Group Inc (GEO) leadership • Q4 2024
Question
Joshua Joseph inquired about the traction in discussions to activate idle facilities, the progress on asset sales like the Lawton facility, the quarterly spending cadence of the ICE investment, and the reason for the net operating income increase in the managed-only segment.
Answer
Executive Chairman George Zoley expressed confidence that all idle facilities would be contracted and activated in 2025. He confirmed the Lawton, Oklahoma facility is in a public sale process, with an appraisal expected next month. CFO Mark Suchinski affirmed the analyst's spending calculation. Zoley explained the managed-only margin pressure was due to proactive wage increases made to ensure facility security, with reimbursement requests currently pending with state clients.