The GEO Group, Inc. Q4 2008 Earnings Call Transcript

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2009-02-12 13:14:04.0

Tags: Revenue, Call Transcript, Earnings, Pricing Strategy, Geo Group Inc., Pricing, Marketing Research, Operational Accounting, Marketing, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions). And your first question comes from the line of Todd Van Fleet of First Analysis. Please proceed.

Todd Van FleetFirst Analysis

Good morning, guys. Nice quarter. I wanted to I guess ask kind of a fairly involved to the questions on the revenue guidance for 2009 and to kind of couple that with your thoughts on the pricing environment. I mean if we look at your guidance for Q1, excuse me, revenue guidance, I believe is what $240 million to $245 million. And we consider, I guess the, I’m sorry, 243 to 248, but we consider the additions I guess throughout the course of the year, which at this point I think is the expansion at Georgia, right? And then you have the other expansion at Graceville, Florida, is that right?

George Zoley

Yes.

Todd Van FleetFirst Analysis

And those two expansions I guess combined on an annualized basis are maybe you know what, 10 million I guess in revenue? I’m just wondering given the pricing environment that’s out there, given that those are the only two additional pieces of business adding revenue kind of to the pie in 2009; if you take Q1, it’s a 245 million, you annualized that you get 980 million for the full year, may be you throw in you get some perhaps partial quarter benefit from the expansion in Georgia so may be you add another may be I don’t know 7 million to 8 million on to that probably less on that actually to account for the two expanded facilities coming on in 2009. So may be you are at 985 million but your guidance is to 1.01 billion to 1.03 billion, so you've got an additional anywhere from $25 million to $45 million of revenue included in the guidance so correct me if I am incorrect at any point along the way here but that’s kind of the way I see your outlook for the year at this point.

Now you couple that with what has what we see you play in the landscape now regarding pricing you've talked a little bit about the states you said that you expect may be some pricing improvement from three customers may be another 7 it could be, it sounded like you think that pricing at the state level is going to hold flat by and large is that right?

 

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