BOCA RATON, Fla.--(BUSINESS WIRE)-- The GEO Group (NYSE: GEO) (“GEO”) announced today that its wholly-owned subsidiary, GEO Care has signed a contract with Montgomery County, Texas (the “County”) for the management of the county-owned, 100-bed Montgomery County Mental Health Treatment Facility (the “Facility”) to be located in Conroe, Texas. The management contract between GEO Care and the County will have an initial term effective through August 31, 2011 with unlimited two-year renewal option periods. The County in turn has signed an Intergovernmental Agreement with the State of Texas for the housing of a mental health forensic population at the Facility. GEO expects the Facility to open in March 2011 and to generate approximately $12.4 million in annualized revenues for GEO.
George C. Zoley, Chairman and Chief Executive Officer of GEO, said, “We appreciate the confidence placed in our company by Montgomery County. The opening of this new Mental Health Treatment Facility in Texas marks an important milestone for GEO Care. We look forward to the successful activation of the Facility and to building a strong public-private partnership with Montgomery County and the State of Texas.”
GEO Care is premier provider of mental health management and treatment services for civil, forensic, and special needs psychiatric patient populations. GEO Care is a wholly-owned subsidiary of The GEO Group, a world leader in the delivery of correctional, detention, and residential treatment services to federal, state, and local government agencies around the globe. GEO’s worldwide operations include the management and/or ownership of approximately 80,000 beds at 117 facilities, including projects under development.
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 estimated earnings, revenues and costs and our ability to maintain growth and strengthen contract relationships. 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 successfully pursue further growth and continue to enhance shareholder value; (2) GEO’s ability to access the capital markets in the future on satisfactory terms or at all; (3) risks associated with GEO’s ability to control operating costs associated with contract start-ups; (4) 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; (5) GEO’s ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (6) GEO’s ability to obtain future financing on acceptable terms; (7) GEO’s ability to sustain company-wide occupancy rates at its facilities; and (8) other factors contained in GEO’s Securities and Exchange Commission filings, including the forms 10-K, 10-Q and 8-K reports.
The GEO Group, Inc.
Pablo E. Paez, Vice President, Corporate Relations, 1-866-301-4436
KEYWORDS: United States North America Florida Texas
INDUSTRY KEYWORDS: Health Hospitals Mental Health Construction & Property Commercial Building & Real Estate