Geo Group (GEO) has reported a 12.21 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $49.44 million, or $0.66 a share in the quarter, compared with $44.06 million, or $0.59 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $46.45 million, or $0.62 a share compared with $44.06 million or $0.59 a share, a year ago.
Revenue during the quarter grew 13.29 percent to $566.58 million from $500.13 million in the previous year period.
Total expenses were $498.57 million for the quarter, up 15.04 percent or $65.19 million from year-ago period. Operating margin for the quarter contracted 134 basis points over the previous year period to 12 percent.
Operating income for the quarter was $68.01 million, compared with $66.74 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $101.24 million compared with $99.93 million in the prior year period. At the same time, adjusted EBITDA margin contracted 211 basis points in the quarter to 17.87 percent from 19.98 percent in the last year period.
For financial year 2017, Geo Group projects revenue to be $2,100 million. The company forecasts operating income to be in the range of $564.50 million to $573.50 million. The company expects diluted earnings per share to be in the range of $2.05 to $2.15.
For the first-quarter 2017, Geo Group forecasts revenue to be in the range of $549 million to $554 million. The company expects diluted earnings per share to be in the range of $0.48 to $0.50.
George C. Zoley, chairman and chief executive officer of GEO, said, "We are pleased with our strong fourth quarter and year-end results and our outlook for 2017. Our continued growth has been driven by robust financial and operational performance across our diversified platform of real estate, management and programmatic services. We have been able to provide cost-effective, high quality services for our government partners while delivering industry-leading, evidence-based rehabilitation programs both in-custody and in community-based settings to the men and women who have been entrusted to our care. We remain focused on expanding the delivery of these important programs and effectively allocating capital to continue to enhance value for our shareholders."
Net receivables were at $800.07 million as on Dec. 31, 2016, up 63.87 percent or $311.83 million from year-ago. Accounts payable went up marginally by 2.73 percent or $2.11 million to $79.64 million on Dec. 31, 2016.
Total assets grew 8.29 percent or $287.18 million to $3,749.41 million on Dec. 31, 2016. On the other hand, total liabilities were at $2,774.45 million as on Dec. 31, 2016, up 12.99 percent or $319.06 million from year-ago.
Return on assets moved up 20 basis points to 2.19 percent in the quarter. At the same time, return on equity moved up 69 basis points to 5.07 percent in the quarter.
Debt moves up
Total debt was at $2,419.80 million as on Dec. 31, 2016, up 15.52 percent or $325.06 million from year-ago. Shareholders equity stood at $974.96 million as on Dec. 31, 2016, down 3.17 percent or $31.88 million from year-ago. As a result, debt to equity ratio went up 40 basis points to 2.48 percent in the quarter.
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