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1. What is the Company\'s Return on Asset for 2017 and 2016 2. What is the Compa

ID: 2520570 • Letter: 1

Question

1. What is the Company's Return on Asset for 2017 and 2016

2. What is the Company's Return on Investment for 2017 and 2016

THE GEO GROUP, INC.

CONSOLIDATED BALANCE SHEETS

December 31, 2017 and December 31, 2016

  

2017

2016

  

(In thousands, except

share data)

ASSETS

Current Assets

  

Cash and cash equivalents

  

$

81,377

$

68,038

Restricted cash and investments

  

44,932

17,133

Accounts receivable, less allowance for doubtful accounts of $4,574 and $3,664, respectively

  

389,916

356,255

Contract receivable, current portion

  

18,142

224,033

Prepaid expenses and other current assets

  

45,342

32,210

  

Total current assets

  

579,709

697,669

Restricted Cash and Investments

  

27,999

20,848

Property and Equipment, Net

  

2,078,123

1,897,241

Non-Current Contract Receivable

  

404,309

219,783

Assets Held for Sale

  

3,915

—  

Deferred Income Tax Assets

  

26,277

30,039

Goodwill

  

778,951

615,433

Intangible Assets, Net

  

255,339

203,884

Other Non-Current Assets

  

72,286

64,512

  

Total Assets

  

$

4,226,908

$

3,749,409

  

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities

  

Accounts payable

  

$

92,587

$

79,637

Accrued payroll and related taxes

  

71,732

55,260

Accrued expenses and other current liabilities

  

176,324

131,096

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

  

28,920

238,065

  

Total current liabilities

  

369,563

504,058

Non-Current Deferred Income Tax Liabilities

  

8,757

—  

Other Non-Current Liabilities

  

96,702

88,656

Capital Lease Obligations

  

6,059

7,431

Long-Term Debt

  

2,181,544

1,935,465

Non-Recourse Debt

  

365,364

238,842

Commitments and Contingencies (Note 17)

  

Shareholders’ Equity

  

Preferred stock, $0.01 par value, 30,000,000 shares authorized, none issued or outstanding

  

—  

—  

Common stock, $0.01 par value, 187,500,000 shares authorized, 124,008,303 and 112,547,544 issued and outstanding, respectively

  

1,240

1,125

Additional paid-in capital

  

1,190,906

891,993

Earnings in excess of distributions

  

31,541

112,763

Accumulated other comprehensive loss

  

(24,446

)

(30,825

)

  

Total shareholders’ equity attributable to The GEO Group, Inc.

  

1,199,241

975,056

Noncontrolling interests

  

(322

)

(99

)

  

Total shareholders’ equity

  

1,198,919

974,957

  

Total Liabilities and Shareholders’ Equity

  

$

4,226,908

$

3,749,409

  

                                                               

THE GEO GROUP, INC.

CONSOLIDATED BALANCE SHEETS

December 31, 2016 and December 31, 2015

  

2016

2015

  

(In thousands, except

share data)

ASSETS

Current Assets

  

Cash and cash equivalents

  

$

68,038

$

59,638

Restricted cash and investments

  

17,133

8,489

Accounts receivable, less allowance for doubtful accounts of $3,664 and $3,088, respectively

  

356,255

314,097

Current deferred income tax assets

  

—  

27,914

Contract receivable, current portion

  

224,033

—  

Prepaid expenses and other current assets

  

32,210

28,208

  

Total current assets

  

697,669

438,346

Restricted Cash and Investments

  

20,848

20,236

Property and Equipment, Net

  

1,897,241

1,916,386

Non-Current Contract Receivable

  

219,783

174,141

Direct Finance Lease Receivable

  

—  

1,826

Non-Current Deferred Income Tax Assets

  

30,039

7,399

Goodwill

  

615,433

615,438

Intangible Assets, Net

  

203,884

224,148

Other Non-Current Assets

  

64,512

64,307

  

Total Assets

  

$

3,749,409

$

3,462,227

  

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities

  

Accounts payable

  

$

79,637

$

77,523

Accrued payroll and related taxes

  

55,260

48,477

Accrued expenses and other current liabilities

  

131,096

135,483

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

  

238,065

17,141

  

Total current liabilities

  

504,058

278,624

Non-Current Deferred Income Tax Liabilities

  

—  

11,471

Other Non-Current Liabilities

  

88,656

87,694

Capital Lease Obligations

  

7,431

8,693

Long-Term Debt

  

1,935,465

1,855,810

Non-Recourse Debt

  

238,842

213,098

Commitments and Contingencies (Note 17)

  

Shareholders’ Equity

  

Preferred stock, $0.01 par value, 30,000,000 shares authorized, none issued or outstanding

  

—  

—  

Common stock, $0.01 par value, 125,000,000 shares authorized, 75,031,696 and 74,642,859 issued and outstanding, respectively

  

750

747

Additional paid-in capital

  

892,368

879,599

Earnings in excess of distributions

  

112,763

158,796

Accumulated other comprehensive loss

  

(30,825

)

(32,404

)

  

Total shareholders’ equity attributable to The GEO Group, Inc.

  

975,056

1,006,738

Noncontrolling interests

  

(99

)

99

  

Total shareholders’ equity

  

974,957

1,006,837

  

Total Liabilities and Shareholders’ Equity

  

$

3,749,409

$

3,462,227

  

The accompanying notes are an integral part of these consolidated financial statements.

                                                                     THE GEO GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Years Ended December 31, 2017, 2016 and 2015

  

2017

2016

2015

  

(In thousands, except per share data)

Revenues

  

$

2,263,420

$

2,179,490

$

1,843,307

Operating Expenses (excluding depreciation and amortization)

  

1,700,495

1,650,281

1,363,782

Depreciation and Amortization

  

124,297

114,916

106,756

General and Administrative Expenses

  

190,343

148,709

137,040

  

Operating Income

  

248,285

265,584

235,729

Interest Income

  

51,676

28,496

11,578

Interest Expense

  

(148,024

)

(128,718

)

(106,136

)

Loss on Extinguishment of Debt

  

—  

(15,885

)

—  

  

Income Before Income Taxes and Equity in Earnings of Affiliates

  

151,937

149,477

141,171

Provision for Income Taxes

  

17,958

7,904

7,389

Equity in Earnings of Affiliates, net of income tax (benefit) provision of $(3,699), $2,341 and $2,038

  

12,045

6,925

5,533

  

Net Income

  

146,024

148,498

139,315

Loss Attributable to Noncontrolling Interests

  

217

217

123

  

Net Income Attributable to The GEO Group, Inc.

  

$

146,241

$

148,715

$

139,438

  

Weighted Average Common Shares Outstanding:

  

Basic

  

120,095

111,065

110,544

  

Diluted

  

120,814

111,485

110,993

  

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

  

Basic:

  

Net income per share — basic

  

$

1.22

$

1.34

$

1.26

  

Diluted:

  

Net income per share — diluted

  

$

1.21

$

1.33

$

1.25

  

Dividends declared per share

  

$

1.88

$

1.73

$

1.67

  

THE GEO GROUP, INC.

CONSOLIDATED STATEMENTS OF COMPRENSIVE INCOME (LOSS)

Years Ended December 31, 2017, 2016 and 2015

  

2017

2016

2015

  

(In thousands)

Net Income

  

$

146,024

$

148,498

$

139,315

Foreign currency translation adjustments

  

3,808

482

(4,936

)

Pension liability adjustment, net of income tax (provision) benefit of $764, $114 and $(867), respectively

  

(1,420

)

(704

)

1,276

Change in fair value of derivative instrument classified as cash flow hedge, net of income tax (provision) benefit of $(703), $(337) and $213, respectively

  

3,985

1,820

(1,375

)

  

Total other comprehensive income (loss), net of tax

  

6,373

1,598

(5,035

)

  

Total comprehensive income

  

152,397

150,096

134,280

Comprehensive loss attributable to noncontrolling interests

  

211

198

215

  

Comprehensive income attributable to The GEO Group, Inc.

  

$

152,608

$

150,294

$

134,495

  

  

2017

2016

  

(In thousands, except

share data)

ASSETS

Current Assets

  

Cash and cash equivalents

  

$

81,377

$

68,038

Restricted cash and investments

  

44,932

17,133

Accounts receivable, less allowance for doubtful accounts of $4,574 and $3,664, respectively

  

389,916

356,255

Contract receivable, current portion

  

18,142

224,033

Prepaid expenses and other current assets

  

45,342

32,210

  

Total current assets

  

579,709

697,669

Restricted Cash and Investments

  

27,999

20,848

Property and Equipment, Net

  

2,078,123

1,897,241

Non-Current Contract Receivable

  

404,309

219,783

Assets Held for Sale

  

3,915

—  

Deferred Income Tax Assets

  

26,277

30,039

Goodwill

  

778,951

615,433

Intangible Assets, Net

  

255,339

203,884

Other Non-Current Assets

  

72,286

64,512

  

Total Assets

  

$

4,226,908

$

3,749,409

  

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities

  

Accounts payable

  

$

92,587

$

79,637

Accrued payroll and related taxes

  

71,732

55,260

Accrued expenses and other current liabilities

  

176,324

131,096

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

  

28,920

238,065

  

Total current liabilities

  

369,563

504,058

Non-Current Deferred Income Tax Liabilities

  

8,757

—  

Other Non-Current Liabilities

  

96,702

88,656

Capital Lease Obligations

  

6,059

7,431

Long-Term Debt

  

2,181,544

1,935,465

Non-Recourse Debt

  

365,364

238,842

Commitments and Contingencies (Note 17)

  

Shareholders’ Equity

  

Preferred stock, $0.01 par value, 30,000,000 shares authorized, none issued or outstanding

  

—  

—  

Common stock, $0.01 par value, 187,500,000 shares authorized, 124,008,303 and 112,547,544 issued and outstanding, respectively

  

1,240

1,125

Additional paid-in capital

  

1,190,906

891,993

Earnings in excess of distributions

  

31,541

112,763

Accumulated other comprehensive loss

  

(24,446

)

(30,825

)

  

Total shareholders’ equity attributable to The GEO Group, Inc.

  

1,199,241

975,056

Noncontrolling interests

  

(322

)

(99

)

  

Total shareholders’ equity

  

1,198,919

974,957

  

Total Liabilities and Shareholders’ Equity

  

$

4,226,908

$

3,749,409

  

Explanation / Answer

RETURN ON INVESTMENTS

FORMULA

PROFIT ATTIBUTABLE TO HOLDING COMPANY/

INVESTMENT S

(EQUITY)

2017

2016

$

PROFIT

146241 X100

12.19%

148715 X 100

15.25%

EQUITY

1198919

974957

RETURN ON ASSETS

FORMULA

PROFIT ATTIBUTABLE TO HOLDING COMPANY/

ASSETS

2017

2016

$

PROFIT

146241 X100

3.9%

148715 X 100

4.29%

ASSETS

3749409

3462227

RETURN ON INVESTMENTS

FORMULA

PROFIT ATTIBUTABLE TO HOLDING COMPANY/

INVESTMENT S

(EQUITY)

2017

2016

$

PROFIT

146241 X100

12.19%

148715 X 100

15.25%

EQUITY

1198919

974957