The GEO Group, Inc. (NYSE:GEO) Q3 2019 Earnings Conference Call Transcript
Nov 05, 2019 • 11:00 am ET
Good day, and welcome to The GEO Group Third Quarter 2019 Earnings Call and Webcast. [Operator Instructions].
I would now like to turn the conference over to Mr. Pablo Paez, Executive Vice President Corporate Relations. Please go ahead.
Pablo E. Paez
Thank you, Operator. Good morning everyone and thank you for joining us for today's discussion of The Geo Group's Third Quarter 2019 Earnings Results. With us today are George Zoley, Chairman and Chief Executive Officer; Brian Evans, Chief Financial Officer; Ann Schlarb, President of GEO Care; and David Donahue, President of GEO Secure Services. This morning we will discuss our third quarter results and outlook for the balance of the year. We will conclude the call with a question-and-answer session. This conference call is also being webcast live on our investor website at Investors.GEOGroup.com. Today we will discuss non-GAAP basis information. A reconciliation from non-GAAP basis information to GAAP basis results is included in the press release and supplemental disclosure we issued this morning. Additionally, much of the information we will discuss today including the answers we give in response to your questions may include forward-looking statements regarding our beliefs and current expectations with respect to various matters. These forward-looking statements are intended to fall within the safe harbor provisions of the securities laws. Our actual results may differ materially from those in the forward-looking statements as a result of various factors contained in our Securities and Exchange Commission filings including the Form 10-K 10-Q and 8-K reports.
With that please allow me to turn this call over to our Chairman and CEO George Zoley. George.
George C. Zoley
Thank you, Pablo and good morning to everyone. We are very pleased with our strong third quarter financial results which were driven by continued positive trends across our diversified business units. While we expect continued growth we are keeping our financial guidance for the fourth quarter unchanged at this time. During the third quarter, we had a significant level of startup activity which we expect will drive future cash flow growth. Importantly these startup projects involved the reactivation of previously-idle facilities totaling 4600 beds. In September we completed the reactivation of our company-owned 1000-bed South Louisiana ICE processing center. And October 1 we activated our company-owned 1800-bed North Lake Michigan correctional facility and the county-owned 1800-bed Reeves County Texas detention complex one and two. Both of these facilities are fixed-price for the full 10-year contract term with the Federal Bureau of Prisons. Internationally we are in the process of completing negotiations and construction respectively on two expansion projects in Australia and at our Ravenhall and Junee correctional centers totaling approximately 800 combined beds. In the U.K. we are pleased to have been awarded a 10-year contract for the continued delivery of secure transportation services under our GEO Amey joint venture known as the PECS contract.
We have provided secure transportation services under the PECS contract through our Geo Amey joint venture since 2011. We are proud to have been awarded this new 10-year contract to deliver high-quality