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Shareholders' Equity
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
Shareholders' Equity

6. SHAREHOLDERS’ EQUITY

The following tables present the changes in shareholders’ equity that are attributable to the Company’s shareholders and to noncontrolling interests for the three and nine months ended September 30, 2024 and 2023 (in thousands):

 

 

 

Common shares

 

 

Additional
Paid-In

 

 

Retained Earnings

 

 

Accumulated
Other
Comprehensive

 

 

Treasury shares

 

 

Noncontrolling

 

 

Total
Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

(Accumulated Deficit)

 

 

Loss

 

 

Shares

 

 

Amount

 

 

Interests

 

 

Equity

 

For the Three Months Ended
   September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, July 1, 2024

 

 

139,551

 

 

$

1,396

 

 

$

1,299,558

 

 

$

(1,931

)

 

$

(16,970

)

 

 

—

 

 

$

—

 

 

$

(1,516

)

 

$

1,280,537

 

Proceeds from exercise
   of stock options

 

 

16

 

 

 

—

 

 

 

118

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

118

 

Stock-based compensation
   expense

 

 

—

 

 

 

—

 

 

 

3,534

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,534

 

Restricted stock granted

 

 

158

 

 

 

1

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Restricted stock canceled

 

 

(21

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Issuance of common shares [3]

 

 

16

 

 

 

1

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Shares withheld for net
   settlements of share-
   based awards [1]

 

 

(1

)

 

 

(1

)

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

Issuance of common
   stock - ESPP

 

 

3

 

 

 

—

 

 

 

36

 

 

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

36

 

Net income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,320

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(31

)

 

 

26,289

 

Other comprehensive income (loss)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,054

 

 

 

—

 

 

 

—

 

 

 

(28

)

 

 

4,026

 

Balance, September 30, 2024

 

 

139,722

 

 

$

1,397

 

 

$

1,303,243

 

 

$

24,389

 

 

$

(12,916

)

 

 

—

 

 

$

—

 

 

$

(1,575

)

 

$

1,314,538

 

 

 

 

Common shares

 

 

Additional
Paid-In

 

 

 

 

 

Accumulated
Other
Comprehensive

 

 

Treasury shares

 

 

Noncontrolling

 

 

Total
Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Retained Earnings

 

 

Loss

 

 

Shares

 

 

Amount

 

 

Interests

 

 

Equity

 

For the Three Months Ended
   September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, July 1, 2023

 

 

126,075

 

 

$

1,303

 

 

$

1,292,826

 

 

$

53,338

 

 

$

(18,582

)

 

 

4,210

 

 

$

(95,175

)

 

$

(1,339

)

 

$

1,232,371

 

Proceeds from exercise of
   stock options

 

 

1

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

Stock-based compensation
   expense

 

 

—

 

 

 

—

 

 

 

3,116

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,116

 

Restricted stock granted

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

-

 

Restricted stock canceled

 

 

(10

)

 

 

—

 

 

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

-

 

Issuance of common
   stock - ESPP

 

 

5

 

 

 

—

 

 

 

37

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

37

 

Net income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

24,519

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(16

)

 

 

24,503

 

Other comprehensive income (loss)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,483

)

 

 

—

 

 

 

—

 

 

 

1

 

 

 

(1,482

)

Balance, September 30, 2023

 

 

126,071

 

 

$

1,303

 

 

$

1,295,983

 

 

$

77,857

 

 

$

(20,065

)

 

 

4,210

 

 

$

(95,175

)

 

$

(1,354

)

 

$

1,258,549

 

 

 

 

 

 

 

 

Common shares

 

 

Additional
Paid-In

 

 

Retained Earnings

 

 

Accumulated
Other
Comprehensive

 

 

Treasury shares

 

 

Noncontrolling

 

 

Total
Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

(Accumulated Deficit)

 

 

Loss

 

 

Shares

 

 

Amount

 

 

Interests

 

 

Equity

 

For the Nine Months Ended
   September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance January 1, 2024

 

 

126,087

 

 

$

1,303

 

 

$

1,299,193

 

 

$

103,089

 

 

$

(16,642

)

 

 

4,210

 

 

$

(95,175

)

 

$

(1,454

)

 

$

1,290,314

 

Proceeds from exercise of
   stock options

 

 

163

 

 

 

2

 

 

 

783

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

785

 

Stock-based compensation
   expense

 

 

—

 

 

 

—

 

 

 

12,322

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12,322

 

Restricted stock granted

 

 

1,712

 

 

 

17

 

 

 

(17

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Restricted stock canceled

 

 

(61

)

 

 

(1

)

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Reissuance of treasury shares [3]

 

 

4,210

 

 

 

—

 

 

 

—

 

 

 

(95,175

)

 

 

—

 

 

 

(4,210

)

 

 

95,175

 

 

 

—

 

 

 

—

 

Issuance of common shares [3]

 

 

8,220

 

 

 

82

 

 

 

(1,696

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,614

)

Shares withheld for net
   settlements of share-
   based awards [1]

 

 

(618

)

 

 

(6

)

 

 

(7,458

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7,464

)

Issuance of common
   stock - ESPP

 

 

9

 

 

 

—

 

 

 

115

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

115

 

Net income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

16,475

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(90

)

 

 

16,385

 

Other comprehensive income (loss)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,726

 

 

 

—

 

 

 

—

 

 

 

(31

)

 

 

3,695

 

Balance, September 30, 2024

 

 

139,722

 

 

$

1,397

 

 

$

1,303,243

 

 

$

24,389

 

 

$

(12,916

)

 

 

—

 

 

$

-

 

 

$

(1,575

)

 

$

1,314,538

 

 

 

 

Common shares

 

 

Additional
Paid-In

 

 

 

 

 

Accumulated
Other
Comprehensive

 

 

Treasury shares

 

 

Noncontrolling

 

 

Total
Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Retained Earnings

 

 

Loss

 

 

Shares

 

 

Amount

 

 

Interests

 

 

Equity

 

For the Nine Months Ended
   September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2023

 

 

124,061

 

 

$

1,289

 

 

$

1,291,363

 

 

$

(4,236

)

 

$

(16,919

)

 

 

4,852

 

 

$

(105,099

)

 

$

(1,310

)

 

$

1,165,088

 

Proceeds from exercise
   of stock options

 

 

13

 

 

 

—

 

 

 

85

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

85

 

Stock-based compensation
   expense

 

 

—

 

 

 

—

 

 

 

12,052

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12,052

 

Restricted stock granted

 

 

1,758

 

 

 

17

 

 

 

(17

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

-

 

Restricted stock canceled

 

 

(36

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

-

 

Shares withheld for net
   settlements of share-
   based awards [1]

 

 

(383

)

 

 

(4

)

 

 

(3,442

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,446

)

Issuance of common
   stock - ESPP

 

 

16

 

 

 

1

 

 

 

116

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

117

 

Sale of treasury shares [2]

 

 

642

 

 

 

—

 

 

 

(4,174

)

 

 

—

 

 

 

—

 

 

 

(642

)

 

 

9,924

 

 

 

—

 

 

 

5,750

 

Net income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

82,093

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(71

)

 

 

82,022

 

Other comprehensive
   income (loss)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3,146

)

 

 

—

 

 

 

—

 

 

 

27

 

 

 

(3,119

)

Balance, September 30, 2023

 

 

126,071

 

 

$

1,303

 

 

$

1,295,983

 

 

$

77,857

 

 

$

(20,065

)

 

 

4,210

 

 

$

(95,175

)

 

$

(1,354

)

 

$

1,258,549

 

 

[1] The Company withheld shares through net settlements to satisfy statutory tax withholding requirements upon the vesting of shares

of restricted stock held by employees.

 

[2] The Company sold treasury shares to partially fund its obligation under its Amended and Restated Executive Retirement

Agreement with its Executive Chairman. Refer to Note 13 - Benefit Plans for further information.

 

[3] During the second and third quarters of 2024, the Company retired $229.7 million in aggregate principal amount of its outstanding

6.50% Exchangeable Senior Notes in private exchange transactions for an exchange value of approximately $410 million. The

consideration consisted of cash of $229.7 million and 12,430,285 shares of GEO common stock. Of the total amount of shares issued,

the Company issued 4,209,847 shares that were previously held in treasury. Refer to Note 10 - Debt for further information.

 

 

Automatic Shelf Registration on Form S-3

On October 30, 2023, the Company filed an automatic shelf registration statement on Form S-3 with the Securities and Exchange Commission (the “SEC”) that enables the Company to offer for sale, from time to time and as the capital markets permit, an unspecified amount of common stock, preferred stock, debt securities, guarantees of debt securities, warrants and units. The shelf registration statement became automatically effective upon filing and is valid for three years.

 

Prospectus Supplement

On December 28, 2023, in connection with the shelf registration, the Company filed with the SEC a prospectus supplement related to the offer and sale from time to time of our common stock at an aggregate offering price of up to $300 million through sales agents. Sales of shares of GEO's common stock under the prospectus supplement and equity distribution agreements entered into with the sales agents, if any, will be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined

in Rule 415 under the Securities Act of 1933. There were no shares of common stock sold under this prospectus supplement during the nine months ended September 30, 2024.

 

Comprehensive Income (Loss)

Comprehensive income (loss) represents the change in shareholders' equity from transactions and other events and circumstances arising from non-shareholder sources. The Company's total comprehensive income (loss) is comprised of net income (loss) attributable to GEO, net loss attributable to noncontrolling interests, foreign currency translation adjustments that arise from consolidating foreign operations that do not impact cash flows, net unrealized gains and/or losses on derivative instruments, marketable securities and pension liability adjustments within shareholders' equity and comprehensive income (loss).

The components of accumulated other comprehensive loss attributable to GEO within shareholders' equity are as follows:

 

 

 

Nine Months Ended September 30, 2024

 

 

 

(In thousands)

 

 

 

Foreign currency
translation
adjustments,
net of tax (1)

 

 

Change
in fair
value of
derivatives,
net of tax

 

 

Change in marketable securities, net of tax

 

 

Pension
adjustments,
net of tax

 

 

Total

 

Balance, January 1, 2024

 

$

(19,755

)

 

$

3,041

 

 

$

—

 

 

$

72

 

 

$

(16,642

)

Current-period other comprehensive income (loss)

 

 

3,784

 

 

 

(589

)

 

 

495

 

 

 

36

 

 

 

3,726

 

Balance, September 30, 2024

 

$

(15,971

)

 

$

2,452

 

 

$

495

 

 

$

108

 

 

$

(12,916

)

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

(In thousands)

 

 

 

Foreign currency
translation
adjustments,
net of tax (1)

 

 

Change
in fair
value of
derivatives,
net of tax

 

 

Change in marketable securities, net of tax

 

 

Pension
adjustments,
net of tax

 

 

Total

 

Balance, January 1, 2023

 

$

(20,015

)

 

$

3,645

 

 

$

(953

)

 

$

404

 

 

$

(16,919

)

Current-period other comprehensive income (loss)

 

 

(5,269

)

 

 

1,170

 

 

 

953

 

 

 

—

 

 

 

(3,146

)

Balance, September 30, 2023

 

$

(25,284

)

 

$

4,815

 

 

$

—

 

 

$

404

 

 

$

(20,065

)

 

(1)
The foreign currency translation related to noncontrolling interests was not significant at September 30, 2024 or 2023.