EX-99.1 2 d774739dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO    NEWS RELEASE

One Park Place, Suite 700 n 621 Northwest 53rd Street n Boca Raton, Florida 33487 n www.geogroup.com

CR-14-13

THE GEO GROUP REPORTS SECOND QUARTER 2014 RESULTS

 

  •   2Q14 Net Income per Diluted Share of $0.54

 

  •   2Q14 Normalized FFO of $0.72 per Diluted Share; 2Q14 AFFO of $0.85 per Diluted Share

 

  •   Increased 2014 AFFO Guidance to $229-$234 million or $3.18 to $3.24 per Diluted Share

 

  •   Quarterly Dividend of $0.57 per Share

Boca Raton, Fla. – August 6, 2014 — The GEO Group, Inc. (NYSE: GEO) (“GEO”), the first fully integrated equity real estate investment trust specializing in the design, financing, development, and operation of correctional, detention, and community reentry facilities around the globe, reported today its financial results for the second quarter 2014.

Second Quarter 2014 Highlights

 

  •   Net Income per Diluted Share of $0.54

 

  •   Net Operating Income of $119.2 million

 

  •   Normalized FFO of $0.72 per Diluted Share

 

  •   AFFO of $0.85 per Diluted Share

For the second quarter 2014, Normalized Funds From Operations (“Normalized FFO”) increased to $51.9 million, or $0.72 per diluted share, from $43.9 million, or $0.61 per diluted share, for the second quarter 2013. Second quarter 2014 Adjusted Funds From Operations (“AFFO”) increased to $60.9 million, or $0.85 per diluted share, from $52.3 million, or $0.73 per diluted share, for the second quarter 2013. For the second quarter 2014, Net Operating Income increased to $119.2 million from $108.5 million for the second quarter 2013.

George C. Zoley, Chairman and Chief Executive Officer of GEO, said: “We are very pleased with our second quarter results and improved outlook for 2014, which continue to reflect robust operational and financial performance from our diversified business units. Our strong quarterly results have been driven by improved occupancy across our diversified real estate assets. Since the beginning of the year, our GEO Corrections & Detention division has activated new contracts or has announced contract awards totaling more than 6,000 correctional and detention beds in the U.S. and internationally. Additionally, our GEO Community Services division has continued to expand with the opening of approximately a dozen new day reporting centers and the provision of electronic monitoring services in several new markets. We continue to be optimistic regarding the growth opportunities in our industry which we expect will continue to create value for our shareholders.”

GEO reported total revenues for the second quarter 2014 of $412.8 million up from total revenues of $381.7 million for the second quarter 2013. GEO reported second quarter 2014 net income of $38.9 million, or $0.54 per diluted share, up from $34.2 million, or $0.48 per diluted share for the second quarter 2013.

 

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Contact:   Pablo E. Paez    (866) 301 4436
  Vice President, Corporate Relations   

NEWS RELEASE

 

Compared to second quarter 2013, GEO’s second quarter 2014 results reflect the activation of 1,500 company-owned beds at three facilities in California in November 2013; the assumption of management at three managed-only facilities totaling 3,854 beds in the State of Florida in February 2014; a 400-bed contract capacity expansion at the company-owned Rio Grande Detention Center in Texas during the first quarter 2014; the opening of new day reporting centers in Pennsylvania and California during the fourth quarter 2013 and first quarter 2014; and improved occupancy rates across GEO’s diversified real estate portfolio.

First Six Months 2014 Highlights

 

  •   Net Income per Diluted Share of $0.93

 

  •   Net Operating Income of $226.7 million

 

  •   Normalized FFO of $1.30 per Diluted Share

 

  •   AFFO of $1.56 per Diluted Share

For the first six months of 2014, Normalized FFO increased to $93.3 million, or $1.30 per diluted share, from $83.6 million, or $1.17 per diluted share, for the first six months of 2013. AFFO for the first six months of 2014 increased to $112.3 million, or $1.56 per diluted share, from $102.0 million, or $1.43 per diluted share, for the first six months of 2013. For the first six months of 2014, Net Operating Income increased to $226.7 million from $210.8 million for the first six months of 2013.

GEO reported total revenues for the first six months of 2014 of $806.0 million up from total revenues of $758.7 million for the first six months of 2013. GEO reported net income of $66.9 million, or $0.93 per diluted share, for the first six months of 2014, up from $57.6 million, or $0.81 per diluted share for the first six months of 2013.

Compared to the first six months of 2013, GEO’s results for the first six months of 2014 reflect the activation of 1,500 company-owned beds at three facilities in California in November 2013; the assumption of management at three managed-only facilities totaling 3,854 beds in the State of Florida in February 2014; a 400-bed contract capacity expansion at the company-owned Rio Grande Detention Center in Texas during the first quarter 2014; the opening of new day reporting centers in Pennsylvania and California during the fourth quarter 2013 and first quarter 2014; and improved occupancy rates across GEO’s diversified real estate portfolio.

Net Operating Income, Funds From Operations (“FFO”), Normalized FFO, and AFFO are widely used non-GAAP supplemental financial measures of REIT performance. Please see the section of this press release below entitled “Note to Reconciliation Tables and Supplemental Disclosure - Important Information on GEO’s Non-GAAP Financial Measures” for information on how GEO defines these supplemental Non-GAAP financial measures.

 

—More—

 

Contact:   Pablo E. Paez    (866) 301 4436
  Vice President, Corporate Relations   

NEWS RELEASE

 

2014 Financial Guidance

GEO increased its financial guidance for the full-year 2014 and issued guidance for the third and fourth quarters 2014. GEO increased its full-year 2014 AFFO guidance to a range of $3.18 to $3.24 per diluted share, or $229 million to $234 million. On a GAAP basis, GEO increased its net income guidance for the full year 2014 to a range of $1.93 to $1.99 per diluted share.

GEO increased full-year 2014 revenue guidance to a range of $1.626 billion to $1.636 billion. GEO increased its full-year 2014 Net Operating Income guidance to a range of $465 million to $470 million. GEO increased its full-year 2014 Adjusted EBITDA guidance to a range of $338 million to $343 million.

For the third quarter 2014, GEO expects AFFO to be in a range of $0.81 to $0.84 per diluted share. On a GAAP basis, GEO expects third quarter 2014 net income per diluted share to be in a range of $0.50 to $0.53 and third quarter 2014 revenues to be in a range of $410 million to $415 million.

For the fourth quarter 2014, GEO expects AFFO to be in a range of $0.81 to $0.84 per diluted share. On a GAAP basis, GEO expects fourth quarter 2014 net income per diluted share to be in a range of $0.50 to $0.53 and fourth quarter 2014 revenues to be in a range of $410 million to $415 million.

GEO’s guidance reflects the expected activation and related start-up expenses of the company-owned, 300-bed McFarland Female Community Reentry Facility in California during the third quarter 2014 and the company-owned, 400-bed Alexandria Transfer Center in Louisiana during the fourth quarter 2014.

Quarterly Dividend

On August 5, 2014, GEO’s Board of Directors declared a quarterly cash dividend of $0.57 per share. The quarterly cash dividend will be paid on August 29, 2014 to shareholders of record as of the close of business on August 18, 2014. The declaration of future quarterly cash dividends is subject to approval by GEO’s Board of Directors and to meeting the requirements of all applicable laws and regulations. GEO’s Board of Directors retains the power to modify its dividend policy as it may deem necessary or appropriate in the future.

Reconciliation Tables and Supplemental Disclosure

GEO has made available a Supplemental Disclosure which contains reconciliation tables of Net Income to Net Operating Income, EBITDA, and Adjusted EBITDA, and Net Income to FFO, Normalized FFO and AFFO along with supplemental financial and operational information on GEO’s business segments and other important operating metrics. Please see the section of this press release below titled “Note to Reconciliation Tables and Supplemental Disclosure - Important Information on GEO’s Non-GAAP Financial Measures” for information on how GEO defines these supplemental financial measures and reconciles them to the most directly comparable GAAP measures. GEO’s Reconciliation Tables can be found herein and in GEO’s Supplemental Disclosure which is available on GEO’s Investor Relations webpage at www.geogroup.com.

 

—More—

 

Contact:   Pablo E. Paez    (866) 301 4436
  Vice President, Corporate Relations   

NEWS RELEASE

 

Conference Call Information

GEO has scheduled a conference call and simultaneous webcast for today at 11:00 AM (Eastern Time) to discuss GEO’s second quarter 2014 financial results as well as its progress and outlook. The call-in number for the U.S. is 1-888-679-8033 and the international call-in number is 1-617-213-4846. The conference call participant passcode is 86120917. In addition, a live audio webcast of the conference call may be accessed on the Conference Calls/Webcasts section of GEO’s investor relations webpage at www.geogroup.com. A replay of the audio webcast will be available on the website for one year. A telephonic replay of the conference call will be available until August 13, 2014 at 1-888-286-8010 (U.S.) and 1-617-801-6888 (International). The conference call participant passcode for the telephonic replay is 98910003.

About The GEO Group

The GEO Group, Inc. (NYSE: GEO) is the first fully integrated equity real estate investment trust specializing in the design, financing, development, and operation of correctional, detention, and community reentry facilities around the globe. GEO is the world’s leading provider of diversified correctional, detention, community reentry, and electronic monitoring services to government agencies worldwide with operations in the United States, Australia, South Africa, and the United Kingdom. GEO’s worldwide operations include the ownership and/or management of 98 facilities totaling approximately 78,500 beds, including projects under development, with a growing workforce of approximately 18,000 professionals.

Note to Reconciliation Tables and Supplemental Disclosure –

Important Information on GEO’s Non-GAAP Financial Measures

Net Operating Income, EBITDA, Adjusted EBITDA, Funds from Operations, Normalized Funds from Operations and Adjusted Funds from Operations are non-GAAP financial measures that are presented as supplemental disclosures.

GEO has presented herein certain forward-looking statements about GEO’s future financial performance that include non-GAAP financial measures, including, Net Operating Income, EBITDA, Adjusted EBITDA, FFO, Normalized FFO, and AFFO. The determination of the amounts that are excluded from these non-GAAP financial measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period. While we have provided a high level reconciliation for the guidance ranges for full year 2014, we are unable to present a more detailed quantitative reconciliation of the forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because management cannot reliably predict all of the necessary components of such GAAP measures. The quantitative reconciliation of the forward-looking GAAP financial measures will be provided for completed annual and quarterly periods, as applicable, calculated in a consistent manner with the quantitative reconciliation of non-GAAP financial measures previously reported for completed annual and quarterly periods.

Net Operating Income is defined as revenues less operating expenses, excluding depreciation and amortization expense, general and administrative expenses, and real estate related operating lease expense. Net Operating Income is calculated as net income adjusted by subtracting equity in earnings of affiliates, net of tax, and by adding income tax provision, interest expense, net of interest income, depreciation and amortization expense, general and administrative expenses, and real estate related operating lease expense.

 

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Contact:   Pablo E. Paez    (866) 301 4436
  Vice President, Corporate Relations   

NEWS RELEASE

 

EBITDA is defined as Net Operating Income adjusted by subtracting general and administrative expenses, real estate related operating lease expense, and loss on extinguishment of debt, pre-tax, and by adding equity in earnings of affiliates, pre-tax. Adjusted EBITDA is defined as EBITDA adjusted for net income/loss attributable to non-controlling interests, non-cash stock-based compensation expenses, pre-tax, and certain other adjustments as defined from time to time, including for the periods presented REIT conversion related expenses, pre-tax, and loss on extinguishment of debt, pre-tax. Given the nature of our business as a real estate owner and operator, we believe that EBITDA and Adjusted EBITDA are helpful to investors as measures of our operational performance because they provide an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We believe that by removing the impact of our asset base (primarily depreciation and amortization) and excluding certain non-cash charges, amounts spent on interest and taxes, and certain other charges that are highly variable from year to year, EBITDA and Adjusted EBITDA provide our investors with performance measures that reflect the impact to operations from trends in occupancy rates, per diem rates and operating costs, providing a perspective not immediately apparent from income from continuing operations. The adjustments we make to derive the non-GAAP measures of EBITDA and Adjusted EBITDA exclude items which may cause short-term fluctuations in income from continuing operations and which we do not consider to be the fundamental attributes or primary drivers of our business plan and they do not affect our overall long-term operating performance. EBITDA and Adjusted EBITDA provide disclosure on the same basis as that used by our management and provide consistency in our financial reporting, facilitate internal and external comparisons of our historical operating performance and our business units and provide continuity to investors for comparability purposes.

Funds from Operations, or FFO, is defined in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income/loss attributable to common shareholders (computed in accordance with United States Generally Accepted Accounting Principles), excluding real estate related depreciation and amortization, excluding gains and losses from the cumulative effects of accounting changes, extraordinary items and sales of properties, and including adjustments for unconsolidated partnerships and joint ventures. Normalized Funds from Operations, or Normalized FFO, is defined as FFO adjusted for certain items which by their nature are not comparable from period to period or that tend to obscure GEO’s actual operating performance, including for the periods presented REIT conversion related expenses, net of tax, tax benefit related to IRS settlement and REIT conversion, and loss on extinguishment of debt, net of tax.

Adjusted Funds from Operations, or AFFO, is defined as Normalized FFO adjusted by adding non-cash expenses such as non-real estate related depreciation and amortization, stock based compensation and the amortization of debt costs and other non-cash interest and by subtracting recurring consolidated maintenance capital expenditures.

Because of the unique design, structure and use of our correctional facilities, we believe that assessing the performance of our correctional facilities without the impact of depreciation or amortization is useful and meaningful to investors. Although NAREIT has published its definition of FFO, companies often modify this definition as they seek to provide financial measures that meaningfully reflect their distinctive operations. We have modified FFO to derive Normalized FFO and AFFO that meaningfully reflect our operations. Our assessment of our operations is focused on long-term sustainability. The adjustments we make to derive the non-GAAP measures of Normalized FFO and AFFO exclude items which may cause short-term fluctuations in income from continuing operations but have no impact on our cash flows, or we do not consider them to be fundamental attributes or the primary drivers of our business plan and they do not affect our overall long-term operating performance.

 

—More—

 

Contact:   Pablo E. Paez    (866) 301 4436
  Vice President, Corporate Relations   

NEWS RELEASE

 

We may make adjustments to FFO from time to time for certain other income and expenses that do not reflect a necessary component of our operational performance on the basis discussed above, even though such items may require cash settlement. Because FFO, Normalized FFO and AFFO exclude depreciation and amortization unique to real estate as well as non-operational items and certain other charges that are highly variable from year to year, they provide our investors with performance measures that reflect the impact to operations from trends in occupancy rates, per diem rates, operating costs and interest costs, providing a perspective not immediately apparent from income from continuing operations. We believe the presentation of FFO, Normalized FFO and AFFO provide useful information to investors as they provide an indication of our ability to fund capital expenditures and expand our business. FFO, Normalized FFO and AFFO provide disclosure on the same basis as that used by our management and provide consistency in our financial reporting, facilitate internal and external comparisons of our historical operating performance and our business units and provide continuity to investors for comparability purposes. Additionally, FFO, Normalized FFO and AFFO are widely recognized measures in our industry as a real estate investment trust.

Safe-Harbor Statement

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 financial guidance for the third quarter and fourth quarter 2014 and full year 2014, growth opportunities, and the expected activation of certain facilities in the second half of 2014. 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 meet its financial guidance for 2014 given the various risks to which its business is exposed; (2) GEO’s ability to declare future quarterly cash dividends and the timing and amount of such future cash dividends; (3) GEO’s ability to successfully pursue further growth and continue to create shareholder value; (4) risks associated with GEO’s ability to control operating costs associated with contract start-ups; (5) 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; (6) GEO’s ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (7) GEO’s ability to obtain future financing on acceptable terms; (8) GEO’s ability to sustain company-wide occupancy rates at its facilities; (9) GEO’s ability to access the capital markets in the future on satisfactory terms or at all; (10) GEO’s ability to remain qualified as a REIT; (11) the incurrence of REIT related expenses; and (12) other factors contained in GEO’s Securities and Exchange Commission periodic filings, including its Form 10-K, 10-Q and 8-K reports.

 

 

Contact:   Pablo E. Paez    (866) 301 4436
  Vice President, Corporate Relations   

NEWS RELEASE

 

Second quarter and first six months 2014 financial tables to follow:

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

     Q2 2014     Q2 2013     YTD 2014     YTD 2013  

Revenues

    $ 412,843      $ 381,653      $ 805,980      $ 758,684   

Operating expenses

      300,058        279,246        591,981        560,043   

Depreciation and amortization

      23,748        23,657        47,890        46,592   

General and administrative expenses

      28,148        27,363        56,650        59,403   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      60,889        51,387        109,459        92,646   

Interest income and other

      824        1,165        1,556        2,349   

Interest expense

      (20,602 )      (21,103 )      (41,254 )      (40,444 ) 

Loss on extinguishment of debt

      —          (5,527 )      —          (5,527 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes and equity in earnings of affiliates

      41,111        25,922        69,761        49,024   

Provision for (benefit from) income taxes

      3,387        (7,268 )      5,525        (6,387 ) 

Equity in earnings of affiliates, net of income tax provision

      1,174        1,029        2,658        2,246   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      38,898        34,219        66,894        57,657   

Less: Net income attributable to noncontrolling interests

      —          (12 )      (6 )      (30 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to The GEO Group, Inc.

    $ 38,898      $ 34,207      $ 66,888      $ 57,627   
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted Average Common Shares Outstanding:

           

Basic

      71,749        71,083        71,599        70,967   

Diluted

      71,994        71,607        71,875        71,510   
 

Income per Common Share Attributable to The GEO Group, Inc. :

           
 

Net income per share — basic

    $ 0.54      $ 0.48      $ 0.93      $ 0.81   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income per share — diluted

    $ 0.54      $ 0.48      $ 0.93      $ 0.81   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

— More —

 

Contact:   Pablo E. Paez    (866) 301 4436
  Vice President, Corporate Relations   

NEWS RELEASE

 

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

     As of  
     June 30, 2014      December 31, 2013  
     (Unaudited)         
ASSETS      

Current Assets

      

Cash and cash equivalents

    $ 37,360       $ 52,125   

Restricted cash and investments

      14,448         11,518   

Accounts receivable, less allowance for doubtful accounts

      270,965         250,530   

Current deferred income tax assets

      20,936         20,936   

Prepaid expenses and other current assets

      39,998         49,236   
  

 

 

     

 

 

  

Total current assets

      383,707         384,345   
  

 

 

     

 

 

  

Restricted Cash and Investments

      24,780         18,349   

Property and Equipment, Net

      1,737,357         1,727,798   

Direct Finance Lease Receivable

      14,361         16,944   

Non-Current Deferred Income Tax Assets

      4,821         4,821   

Intangible Assets, Net (including goodwill)

      657,086         653,596   

Other Non-Current Assets

      83,271         83,511   
  

 

 

     

 

 

  

Total Assets

    $ 2,905,383       $ 2,889,364   
  

 

 

     

 

 

  
LIABILITIES AND SHAREHOLDERS’ EQUITY      

Current Liabilities

      

Accounts payable

    $ 56,467       $ 47,286   

Accrued payroll and related taxes

      39,807         38,726   

Accrued expenses

      127,839         114,950   

Current portion of capital lease obligations, long-term debt, and non-recourse debt

      22,837         22,163   
  

 

 

     

 

 

  

Total current liabilities

      246,950         223,125   
  

 

 

     

 

 

  

Non-Current Deferred Income Tax Liabilities

      14,689         14,689   

Other Non-Current Liabilities

      70,342         64,961   

Capital Lease Obligations

      10,401         10,924   

Long-Term Debt

      1,479,027         1,485,536   

Non-Recourse Debt

      63,894         66,153   

Shareholders’ Equity

      1,020,080         1,023,976   
  

 

 

     

 

 

  

Total Liabilities and Shareholders’ Equity

    $ 2,905,383       $ 2,889,364   
  

 

 

     

 

 

  

 

— More —

 

Contact:   Pablo E. Paez    (866) 301 4436
  Vice President, Corporate Relations   

NEWS RELEASE

 

Reconciliation of Net Income to FFO, Normalized FFO, and AFFO

(In thousands, except per share data)

(Unaudited)

 

     Q2 2014     Q2 2013     YTD 2014     YTD 2013  

Net Income attributable to GEO

    $ 38,898      $ 34,207      $ 66,888      $ 57,627   
 

Add:

           

Real Estate Related Depreciation and Amortization

      12,985        12,727        26,366        25,251   
  

 

 

    

 

 

    

 

 

    

 

 

  

Equals: NAREIT defined FFO

    $ 51,883      $ 46,934      $ 93,254      $ 82,878   
  

 

 

    

 

 

    

 

 

    

 

 

  

Add:

           

REIT conversion related expenses, net of tax

      —          1,030        —          4,697   

Tax benefit related to IRS settlement & REIT conversion

      —          (8,416 )      —          (8,416 ) 

Loss on extinguishment of debt, net of tax

      —          4,396        —          4,396   
  

 

 

    

 

 

    

 

 

    

 

 

  

Equals: FFO, normalized

    $ 51,883      $ 43,944      $ 93,254      $ 83,555   
  

 

 

    

 

 

    

 

 

    

 

 

  

Add:

           

Non-Real Estate Related Depreciation & Amortization

      10,763        10,930        21,524        21,341   

Consolidated Maintenance Capital Expenditures

      (4,961 )      (5,679 )      (9,381 )      (9,296 ) 

Stock Based Compensation Expenses

      2,067        1,660        4,533        3,345   

Amortization of Debt Costs and Other Non-Cash Interest

      1,175        1,478        2,399        3,015   
  

 

 

    

 

 

    

 

 

    

 

 

  

Equals: AFFO

    $ 60,927      $ 52,333      $ 112,329      $ 101,960   
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average common shares outstanding - Diluted

      71,994        71,607        71,875        71,510   
 

FFO/AFFO per Share - Diluted

           

Normalized FFO Per Diluted Share

    $ 0.72      $ 0.61      $ 1.30      $ 1.17   
  

 

 

    

 

 

    

 

 

    

 

 

  

AFFO Per Diluted Share

    $ 0.85      $ 0.73      $ 1.56      $ 1.43   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

— More —

 

Contact:   Pablo E. Paez    (866) 301 4436
  Vice President, Corporate Relations   

NEWS RELEASE

 

Reconciliation of Net Income to Net Operating Income and Adjusted EBITDA

(In thousands)

(Unaudited)

 

     Q2 2014     Q2 2013     YTD 2014     YTD 2013  

Net income attributable to GEO

    $ 38,898      $ 34,207      $ 66,888      $ 57,627   

Less

           

Net (income)/loss attributable to noncontrolling interests

      —          (12 )      (6 )      (30 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Income

    $ 38,898      $ 34,219      $ 66,894      $ 57,657   

Add

           

Equity in earnings of affiliates, net of income tax provision

      (1,174 )      (1,029 )      (2,658 )      (2,246 ) 

Income tax (benefit)/provision

      3,387        (7,268 )      5,525        (6,387 ) 

Interest expense, net of interest income

      19,778        19,938        39,698        38,095   

Loss on extinguishment of debt

      —          5,527        —          5,527   

Depreciation and amortization

      23,748        23,657        47,890        46,592   

General and administrative expenses

      28,148        27,363        56,650        59,403   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Operating Income, net of operating lease obligations

    $ 112,785      $ 102,407      $ 213,999      $ 198,641   
  

 

 

    

 

 

    

 

 

    

 

 

  

Add: Operating lease expense, real estate

      6,406        6,124        12,701        12,197   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Operating Income (NOI)

    $ 119,191      $ 108,531      $ 226,700      $ 210,838   
  

 

 

    

 

 

    

 

 

    

 

 

  

Less:

           

General and administrative expenses

      28,148        27,363        56,650        59,403   

Operating lease expense, real estate

      6,406        6,124        12,701        12,197   

Loss on extinguishment of debt, pre-tax

      —          5,527        —          5,527   

Equity in earnings of affiliates, pre-tax

      (1,828 )      (1,446 )      (3,861 )      (3,140 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

EBITDA

    $ 86,466      $ 70,963      $ 161,210      $ 136,851   
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjustments

           

Net income attributable to non-controlling interests

      —          (12 )      (6 )      (30 ) 

Stock based compensation expenses, pre-tax

      2,067        1,660        4,533        3,345   

REIT conversion related expenses, pre-tax

      —          1,466        —          7,438   

Loss on extinguishment of debt, pre-tax

      —          5,527        —          5,527   
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

    $ 88,533      $ 79,604      $ 165,737      $ 153,131   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

— More —

 

Contact:   Pablo E. Paez    (866) 301 4436
  Vice President, Corporate Relations   

NEWS RELEASE

 

2014 Outlook/Reconciliation

(In thousands, except per share data)

(Unaudited)

 

     Full Year 2014 Guidance  

Net Income

    $ 139,000        to       $ 144,000   

Real Estate Related Depreciation and Amortization

      53,000           53,000   
  

 

 

       

 

 

  

Funds from Operations (FFO)

    $ 192,000        to       $ 197,000   
  

 

 

       

 

 

  

Adjustments

      —             —     
  

 

 

       

 

 

  

Normalized Funds from Operations

    $ 192,000        to       $ 197,000   
  

 

 

       

 

 

  

Non-Real Estate Related Depreciation and Amortization

      44,000           44,000   

Consolidated Maintenance Capex

      (21,000 )         (21,000 ) 

Non-Cash Stock Based Compensation and Non-Cash Interest Expense

      14,000           14,000   
  

 

 

       

 

 

  

Adjusted Funds From Operations (AFFO)

    $ 229,000        to       $ 234,000   
  

 

 

       

 

 

  

Net Cash Interest Expense

      74,000           74,000   

Consolidated Maintenance Capex

      21,000           21,000   

Income Taxes

      14,000           14,000   
  

 

 

       

 

 

  

Adjusted EBITDA

    $ 338,000        to       $ 343,000   
  

 

 

       

 

 

  

G&A Expenses

      111,000           111,000   

Non-Cash Stock Based Compensation

      (9,000 )         (9,000 ) 

Real Estate Related Operating Lease Expense

      25,000           25,000   
  

 

 

       

 

 

  

Net Operating Income

    $ 465,000        to       $ 470,000   
  

 

 

       

 

 

  

FFO Per Share (Normalized)

    $ 2.67        to       $ 2.73   

AFFO Per Share

    $ 3.18        to       $ 3.24   

Weighted Average Common Shares Outstanding-Diluted

      72,000        to         72,250   

 

- End -

 

Contact:   Pablo E. Paez    (866) 301 4436
  Vice President, Corporate Relations