Geo Group Inc (GEO) 2023 Q4 法說會逐字稿

Good day, and welcome to The GEO Group first quarter 2023 earnings conference call. (Operator Instructions) Please note today's event is being recorded. I would now like to turn the conference over to Pablo Paez, Executive Vice President of Corporate Relations. Please go ahead.

美好的一天，歡迎參加 GEO 集團 2023 年第一季財報電話會議。（操作員說明）請注意今天的活動正在錄製中。我現在想將會議交給企業關係執行副總裁 Pablo Paez。請繼續。

Thank you, operator. Good morning, everyone, and thank you for joining us for today's discussion of The GEO Group's fourth-quarter and full-year 2023 earnings results. With us today are George Zoley, Executive Chairman of the Board; Brian Evans, Chief Executive Officer; Wayne Calabrese, President and Chief Operating Officer; Shayn March, Acting Chief Financial Officer; and James Black, President of GEO Secure Services.

謝謝你，接線生。大家早安，感謝您加入我們今天討論 GEO 集團第四季度和 2023 年全年盈利結果。今天與我們在一起的有董事會執行主席 George Zoley；布萊恩·埃文斯，執行長；韋恩‧卡拉布雷斯，總裁兼營運長； Shayn March，代理財務長；和 GEO 安全服務總裁 James Black。

This morning, we will discuss our fourth-quarter and full-year results as well as our outlook. We will conclude the call with a question-and-answer session. This conference call is also being webcast live on our investor website at investors.geogroup.com.

今天早上，我們將討論第四季和全年業績以及展望。我們將以問答環節結束電話會議。本次電話會議也在我們的投資者網站 Investors.geogroup.com 上進行網路直播。

Today, we will discuss non-GAAP basis information. A reconciliation from non-GAAP basis information to GAAP basis results is included in the press release, and the supplemental disclosure we issued this morning. Additionally, much of the information we will discuss today, including the answers we gave in response to your questions, may include forward-looking statements regarding our beliefs and current expectations with respect to various matters.

今天，我們將討論非公認會計準則的基礎資訊。新聞稿以及我們今天早上發布的補充披露中包含了從非公認會計原則基礎資訊到公認會計原則基礎結果的調節。此外，我們今天將討論的大部分信息，包括我們針對您的問題給出的答案，可能包括有關我們對各種事項的信念和當前期望的前瞻性陳述。

These forward-looking statements are intended to fall within the Safe Harbor provisions of the securities laws. Our actual results may differ materially from those in the forward-looking statements as a result of various factors contained in our Securities and Exchange Commission filings, including the Form 10-K, 10-Q, and 8-K reports. With that, please allow me to turn this call over to our Executive Chairman, George Zoley. George.

這些前瞻性陳述旨在符合證券法的安全港條款。由於我們向美國證券交易委員會提交的文件（包括 10-K、10-Q 和 8-K 報告）中包含的各種因素，我們的實際結果可能與前瞻性陳述中的結果有重大差異。現在，請允許我將這個電話轉給我們的執行主席喬治·佐利。喬治。

Thank you, Pablo, and good morning to everyone. Thank you for joining us on our fourth quarter 2023 earnings call. I'm joined today by our newly reorganized senior management team, including our new CEO, Brian Evans; our new President and Chief Operating Officer, Wayne Calabrese; and our new Acting Chief Financial Officer, Shayn March; along with our President of GEO Secure Services, James Black. While Brian, Shayn, and Wayne are new to their positions, they have each been with the company a long time.

謝謝你，巴勃羅，祝大家早安。感謝您參加我們的 2023 年第四季財報電話會議。今天，我們新重組的高階管理團隊加入了我的行列，其中包括我們的新任執行長布萊恩·埃文斯 (Brian Evans)；我們的新任總裁兼營運長 Wayne Calabrese；以及我們新任代理財務長 Shayn March；以及我們的 GEO 安全服務總裁 James Black。雖然布萊恩、謝恩和韋恩都是新職位，但他們已經在公司工作很久了。

During today's call, we will review our fourth quarter financial results for 2023, recap the annual operational milestones for each of our business segments, provide an update of our continued efforts to reduce debt and deleverage our balance sheet, and discuss our initial financial guidance for 2024, which includes a range of assumptions primarily related to the ongoing federal budget discussions in Congress. During the fourth quarter of 2023, our diversified business units continued to deliver strong operational and financial performance. This morning, we reported fourth quarter '23 revenues of approximately $608 million and GAAP net income of approximately $32 million. We also reported fourth quarter '23 adjusted EBITDA of approximately $129 million, which represents a sequential increase of 8% from the third quarter of 2023.

在今天的電話會議上，我們將回顧2023 年第四季度的財務業績，回顧每個業務部門的年度營運里程碑，提供我們持續努力減少債務和去槓桿化資產負債表的最新信息，並討論我們的初步財務指導2024 年，其中包括主要與國會正在進行的聯邦預算討論相關的一系列假設。2023 年第四季度，我們的多元化業務部門持續取得強勁的營運和財務表現。今天早上，我們報告了 23 年第四季的收入約為 6.08 億美元，公認會計準則淨利潤約為 3,200 萬美元。我們還報告稱，2023 年第四季調整後 EBITDA 約為 1.29 億美元，比 2023 年第三季環比成長 8%。

During the fourth quarter, our security services business unit renewed two important contracts at the federal level. In Colorado, we renewed our contract with ICE for the provision of the company-owned 1,532-bed Aurora ICE Processing Center and associated secure support services for a one-year term. In California, we renewed our contract with US Marshals for the provision of secure support services at the government owned 512-bed El Centro Detention Facility for a two-year term.

第四季度，我們的安全服務業務部門在聯邦層級續約了兩份重要合約。在科羅拉多州，我們與 ICE 續簽了合同，為該公司提供擁有 1,532 個床位的 Aurora ICE 處理中心以及相關的安全支援服務，為期一年。在加州，我們與美國法警續簽了合同，為政府擁有的 512 個床位的 El Centro 拘留所提供為期兩年的安全支援服務。

At the state level, we received a two-year renewal of our lease agreement with the state of New Mexico for our company-owned, 600-bed Guadalupe County Correctional Facility, which is managed by the New Mexico Corrections Department. Additionally, our GEO Reentry Services division renewed five residential reentry center contracts at the state and federal levels during the fourth quarter of 2023.

在州一級，我們與新墨西哥州續簽了我們公司擁有的 600 個床位的瓜達盧佩縣懲教所的租賃協議，該設施由新墨西哥州懲教局管理。此外，我們的 GEO 再入服務部門在 2023 年第四季續簽了州和聯邦層級的五份住宅再入中心合約。

Looking at our key quarterly segment trends, our fourth quarter 2023 results reflect a year-over-year increase in our secure transportation revenues and in our international revenues. The increase in our secure transportation segment was primarily driven by our new contract to provide air operation support for ICE, which was activated in the third quarter of 2023.

從我們的關鍵季度細分趨勢來看，我們 2023 年第四季的業績反映出我們的安全運輸收入和國際收入年增。我們安全運輸領域的成長主要是由我們為 ICE 提供空中營運支援的新合約推動的，該合約於 2023 年第三季啟動。

Internationally, the increase in revenues was due to our new contract to deliver healthcare services across public prisons in the state of Victoria in Australia, which was also activated in the third quarter of 2023. Moving to ICE, average daily populations across our ICE processing centers increased by approximately 18% during the fourth quarter of 2023. Since the end of the year, ICE populations in our facilities have remained relatively stable at just over 13,000 beds. Currently we estimate that the census across all ICE facilities nationwide is approximately 38,500.

在國際上，收入的增長歸因於我們在澳大利亞維多利亞州的公立監獄提供醫療保健服務的新合同，該合同也於 2023 年第三季度啟動。轉向 ICE，2023 年第四季我們 ICE 處理中心的每日平均人口增加了約 18%。自今年年底以來，我們設施中的 ICE 床位數量一直保持相對穩定，僅超過 13,000 個床位。目前，我們估計全國所有 ICE 設施的人口普查人數約為 38,500 人。

With respect to the federal government's Intensive Supervision and Appearance Program, or ISAP, participant counts remained relatively stable during the fourth quarter 2023 in a range of approximately 190,000 to 195,000 individuals. The current ISAP participant count is approximately 187,000.

至於聯邦政府的強化監督和出面計畫 (ISAP)，2023 年第四季的參與者人數保持相對穩定，約 19 萬至 19.5 萬人。目前 ISAP 參與者人數約 187,000 人。

We believe that ICE continues to face budgetary pressures, and the outcome and timing of ongoing federal budget discussions in Congress remains uncertain. Since October 1, the Department of Homeland Security and ISAP funded under a short-term continuing resolution, which has been extended twice and is currently set to expire on March 8.

我們認為，ICE 繼續面臨預算壓力，國會正在進行的聯邦預算討論的結果和時間仍然不確定。自10月1日起，國土安全部和ISAP根據一項短期持續決議提供資金，該決議已兩次延​​長，目前定於3月8日到期。

Last week, a group of US senators released a proposed supplemental appropriations bill, which included additional funding for border security. However, that bill was voted down by the full Senate. The bill has provided funding for 50,000 ICE detention beds, which represents an increase of 16,000 beds from the current funding level for 34,000 beds.

上週，一群美國參議員發布了一項擬議的補充撥款法案，其中包括為邊境安全提供額外資金。然而，該法案被參議院全體投票否決。該法案為 50,000 個 ICE 拘留床位提供了資金，這比目前 34,000 個床位的資助水準增加了 16,000 個床位。

Additionally, the bill would have increased the annual funding for alternatives to detention programs to approximately $1.3 billion from the current funding level of $440 million. If Congress is unable to reach an agreement on appropriations package prior to March 8, the federal government could continue to be funded under a continued resolution or face the prospect of government shutdown.

此外，該法案還將把拘留替代方案的年度資金從目前的 4.4 億美元增加到約 13 億美元。如果國會無法在 3 月 8 日之前就撥款方案達成協議，聯邦政府可能會繼續根據持續決議獲得資金，否則將面臨政府關閉的前景。

Given this uncertainty, we have provided our initial guidance for 2024 with a range of assumptions which Brian and Shayn will discuss in more detail. As we've expressed to you in the past, decisions related to federal funding levels and related policies are outside of GEO's control as a service provider to the federal government.

鑑於這種不確定性，我們提供了 2024 年的初步指導，其中包含一系列假設，Brian 和 Shayn 將更詳細地討論這些假設。正如我們過去向您表示的那樣，與聯邦資金水平和相關政策相關的決策不屬於 GEO 作為聯邦政府服務提供者的控制範圍。

While we will continue to monitor the congressional appropriations process, our focus remains on providing high-quality services on behalf of DHS, ICE, and all of our clients. We also remain focused on reducing our net debt which continues to be the strategic priority for our company.

雖然我們將繼續監督國會撥款流程，但我們的重點仍然是代表國土安全部、移民和海關執法局以及我們所有的客戶提供高品質的服務。我們也繼續致力於減少淨債務，這仍然是我們公司的策略重點。

In 2023, we reduced our net debt by approximately $197 and ended the year with less than $1.8 billion in total net debt. The debt reduction represents substantial progress toward our objective to deleverage our balance sheet and position GEO to explore options to return capital to shareholders in the future. I will now turn the call over to our new CEO, Brian Evans. Brian.

2023 年，我們將淨債務減少了約 197 美元，年底淨債務總額低於 18 億美元。債務削減代表著我們在實現資產負債表去槓桿化目標方面取得了重大進展，並使 GEO 能夠探索未來向股東返還資本的選擇。現在我將把電話轉給我們的新執行長布萊恩·埃文斯 (Brian Evans)。布萊恩.

Thank you, George. Good morning, everyone. As the prior CFO for 14 years, it is my pleasure to join George and our senior management team and the new capacity of CEO as we work together to continue to execute our company's strategic priorities.

謝謝你，喬治。大家，早安。作為前財務長 14 年，我很高興加入喬治和我們的高階管理團隊以及執行長的新職位，我們共同努力，繼續執行公司的策略重點。

Our continued and steady financial performance is underpinned by the strength of our diversified services platform. Over the past 20 years, our Board and our management team have implemented a disciplined strategy to pursue diversified opportunities that grow our company both organically and through strategic acquisitions of businesses and assets.

我們持續穩定的財務表現得益於我們多元化服務平台的實力。在過去的 20 年裡，我們的董事會和管理團隊實施了嚴格的策略，尋求多元化的機會，透過有機地和策略性收購業務和資產來發展我們的公司。

We believe this growth and investment strategy has positioned GEO as a leading diversified services provider in our country, in our industry. And the strength of this diversification has allowed us to deliver steady operational and financial results through challenging periods.

我們相信，這種成長和投資策略使 GEO 成為我國產業中領先的多元化服務提供者。這種多元化的優勢使我們能夠在充滿挑戰的時期提供穩定的營運和財務表現。

Over the course of the COVID pandemic, we were able to offset declines in our secure services and residential reentry revenues with increases in our community-based and non-residential programs. Similarly, in 2021 and 2022, we were able to offset the loss of our Bureau of Prisons contract revenues, with increases in our electronic monitoring and supervision services revenues. And in 2023, we offset declines in our electronic monitoring segment with growth from several of our diversified segments, including our secure transportation and international businesses.

在新冠疫情期間，我們透過社區和非住宅項目的增加，抵消了安全服務和住宅重新進入收入的下降。同樣，在 2021 年和 2022 年，我們能夠透過電子監控和監督服務收入的增加來抵消監獄局合約收入的損失。到 2023 年，我們將透過安全運輸和國際業務等多個多元化細分市場的成長來抵消電子監控細分市場的下滑。

As we look forward to 2024, we believe that we are taking a prudent approach to our initial financial guidance given the uncertainty surrounding the outcome and timing of the ongoing federal budget discussions in Congress. While decisions related to federal funding and related policies are outside GEO's control, as a company, we are positioned to continue to support ICE and the US Marshals with a spectrum of support services and solutions, including additional bed capacity, secure transportation, electronic monitoring technologies, and case management services.

展望 2024 年，我們認為，鑑於國會正在進行的聯邦預算討論的結果和時間存在不確定性，我們正在對初步財務指導採取謹慎的態度。雖然與聯邦資金和相關政策相關的決策不在GEO 的控制範圍內，但作為一家公司，我們有能力繼續為ICE 和美國法警提供一系列支援服務和解決方案，包括額外床位容量、安全運輸、電子監控技術和案件管理服務。

With respect to ISAP specifically, BI is the largest provider of electronic monitoring services to federal, state, and local law enforcement agencies, and the sole provider of electronic monitoring solutions to ICE. BI has provided the ISAP contract services to ICE with bipartisan support for over 20 years, successfully achieving high levels of compliance under the program.

具體就 ISAP 而言，BI 是向聯邦、州和地方執法機構提供電子監控服務的最大供應商，也是向 ICE 提供電子監控解決方案的唯一提供者。20 多年來，BI 在兩黨支持下向 ICE 提供 ISAP 合約服務，成功實現了該計劃的高水準合規性。

Over this timeframe, BI has built what we believe is an unparalleled platform of technology solutions and case management services, which we anticipate will give GEO a competitive advantage going forward. As a sole provider of electronic monitoring services under the current ISAP contract, BI has all the necessary resources to assist ICE should the agency decide to increase the utilization of ISAP.

在這段時間內，BI 建立了我們認為無與倫比的技術解決方案和案例管理服務平台，我們預計這將為 GEO 帶來未來的競爭優勢。作為目前 ISAP 合約下電子監控服務的唯一供應商，如果 ICE 決定提高 ISAP 的使用率，BI 擁有一切必要的資源來協助 ICE。

Future increases in the ISAP participant count or further increases in the utilization of our ICE detention beds could potentially generate significant upside to our guidance. Additionally, the potential reactivation of any of our remaining idle secure services facilities, which total approximately 9,000 beds, could also provide meaningful upside for our annualized revenues and cash flows if fully reactivated. We could also see additional upside from winning any new managed-only contract, similar to our new secure transportation subcontract for ICE air operations support and our new healthcare contract in Australia, which we activated last year.

未來 ISAP 參與者人數的增加或我們 ICE 拘留床位利用率的進一步增加可能會為我們的指導帶來顯著的上行空間。此外，我們剩餘的閒置安全服務設施（總共約 9,000 個床位）的潛在重新啟動，如果完全重新啟動，也可能為我們的年化收入和現金流帶來有意義的成長。我們還可以從贏得任何新的僅管理合約中看到額外的好處，類似於我們去年啟動的用於 ICE 航空營運支援的新安全運輸分包合約以及我們在澳洲啟動的新醫療保健合約。

Operationally, our daily management focus and primary objective remains on achieving operational excellence across all our service lines. We are proud of the dedication of our front-line employees and our facility, regional, and corporate leadership who help our company fulfill this objective every year.

在營運方面，我們的日常管理重點和主要目標仍然是在所有服務領域實現卓越營運。我們為第一線員工以及工廠、區域和企業領導層的奉獻精神感到自豪，他們每年都幫助我們公司實現這一目標。

From a strategic standpoint, our management team is focused on the disciplined allocation of capital to enhance long-term value for our shareholders. For the past three years, we have focused on deleveraging our balance sheet and reducing our debt, and we have made significant progress toward this objective. We have complemented these efforts with the sale of select assets that have resulted in more than $150 million in proceeds.

從策略角度來看，我們的管理團隊專注於嚴格的資本配置，以提高股東的長期價值。過去三年來，我們致力於去槓桿化資產負債表和減少債務，並在實現這一目標方面取得了重大進展。我們透過出售精選資產來補充這些努力，這些資產已帶來超過 1.5 億美元的收益。

Historically, we have focused on the sale of residential reentry assets. This rationale has been based on the fact that residential reentry centers are typically located in urban areas and can usually be repurposed for alternative uses. As a result of these factors, we often see a larger pool of potential interested buyers. Going forward, we expect to explore additional sales of reentry facilities that are either idle or underutilized and may therefore create more value for our company by being sold.

從歷史上看，我們一直專注於住宅再入資產的銷售。這一理由是基於這樣一個事實，即住宅重返中心通常位於城市地區，通常可以改作其他用途。由於這些因素，我們經常看到更多潛在感興趣的買家。展望未來，我們預計將探索額外出售閒置或未充分利用的重返大氣層設施，因此可能透過出售為我們公司創造更多價值。

With respect to our idle secure services facilities, as we have previously stated, we are focused on marketing these facilities to local, state, and federal agencies for reactivation, either under a traditional secure services contract or lease arrangement. We believe that these important assets can create more long-term value for our company if they can be reactivated.

對於我們閒置的安全服務設施，正如我們之前所說，我們專注於將這些設施推銷給地方、州和聯邦機構，以便根據傳統的安全服務合約或租賃安排重新啟動。我們相信，這些重要資產如果能夠重新激活，可以為我們公司創造更長期的價值。

However, we may also consider the sale of some of these larger assets if we believe that sale price adequately reflects their value. As we continue to execute our strategic priorities, we also expect to explore new areas of potential growth.

然而，如果我們認為出售價格充分反映了這些較大資產的價值，我們也可能會考慮出售其中一些較大資產。在我們繼續執行策略重點的同時，我們也期望探索新的潛在成長領域。

We believe that the expertise we have developed across a broad spectrum of government services could be used to provide private sector solutions to address public sector challenges, either with our existing government clients or with new government agencies. Our overarching goal is to continue to strengthen our diversified services platform, which already delivers predictable earnings and cash flows.

我們相信，我們在廣泛的政府服務領域累積的專業知識可用於為私營部門提供解決方案，以應對公共部門的挑戰，無論是與我們現有的政府客戶還是新的政府機構。我們的首要目標是繼續加強我們的多元化服務平台，該平台已經提供了可預測的收益和現金流。

We believe that as we allocate capital toward reducing debt and positioning our company to consistently and sustainably return capital to shareholders, the strong and predictable nature of our cash flows will create an attractive value proposition for investors. At this time, I will turn the call over to our Acting CFO, Shayn March, to review our financial results and guidance in more detail.

我們相信，當我們將資本分配給減少債務並將公司定位為持續、可持續地向股東返還資本時，我們強勁且可預測的現金流將為投資者創造有吸引力的價值主張。此時，我將把電話轉給我們的代理財務長 Shayn March，以更詳細地審查我們的財務表現和指導。

Thank you, Brian. Good morning, everyone. Today, we reported fourth quarter 2023 gap net income. of approximately $32 million and quarterly revenues of approximately $608 million. We also reported fourth quarter 2023 adjusted EBITDA of approximately $129 million.

謝謝你，布萊恩。大家，早安。今天，我們報告了 2023 年第四季淨利潤缺口。約 3,200 萬美元，季度營收約 6.08 億美元。我們也報告 2023 年第四季調整後 EBITDA 約為 1.29 億美元。

Looking at each of our segments, managed-only revenues for the fourth quarter of 2023 increased by approximately 18% from one year ago. This increase was driven by higher revenues in our secure transportation in international segments related to our new subcontract, provide air support services for ICE and our new healthcare contract in Victoria, Australia, respectively.

從我們的每個細分市場來看，2023 年第四季的純託管收入比一年前成長了約 18%。這一增長是由於我們在國際領域的安全運輸收入增加所推動的，這些收入分別與我們的新分包合約、為 ICE 提供空中支援服務以及我們在澳洲維多利亞州的新醫療保健合約相關。

Fourth quarter of 2003 (sic - 2023) revenues for our owned and leased secure services facilities increased by approximately 4% from one year ago, which was primarily driven by increased populations at our ICE processing sites. Further, quarter revenues in our GEO reentry segment also increased year over year with fourth quarter 2023 revenues from our residential reentry centers and our non-residential reentry programs experiencing an 11% increase and a 32% increase, respectively.

2003 年第四季（原文如此 - 2023 年）我們自有和租賃的安全服務設施的收入比一年前增長了約 4%，這主要是由於我們 ICE 處理站點的人口增加所致。此外，我們的 GEO 再入境部門的季度收入也較去年同期成長，2023 年第四季我們的住宅再入境中心和非住宅再入境專案的收入分別成長了 11% 和 32%。

These revenue increases were offset by lower revenue from our electronic monitoring and supervision services segment during the fourth quarter of 2023 as a result of lower participation under the ISAP contract compared to the fourth quarter of 2022. Our fourth quarter of 2023 results also reflect a year-over-year decrease in net interest expense due to the repayment of debt throughout the year, as well as due to higher interest income compared to fourth quarter of 2022. Our effective tax rate for the fourth quarter of 2023 was approximately 20%.

這些收入成長被 2023 年第四季電子監控和監督服務部門收入下降所抵消，原因是與 2022 年第四季相比，ISAP 合約的參與度較低。我們 2023 年第四季的業績也反映出，由於全年償還債務，利息收入較 2022 年第四季增加，淨利息支出較去年同期下降。我們 2023 年第四季的有效稅率約為 20%。

Moving to our guidance for 2024, as George and Brian discussed, we believe that ICE continues to face budgetary pressures, and the outcome and timing of ongoing federal budget discussions in Congress remains uncertain. Recent news articles have reported that ICE is facing a $700 million debt budget deficit and will be forced to scale back operations if it does not receive additional funding.

正如 George 和 Brian 所討論的那樣，轉向我們對 2024 年的指導，我們認為 ICE 繼續面臨預算壓力，國會正在進行的聯邦預算討論的結果和時間仍然不確定。最近的新聞報導稱，ICE 面臨 7 億美元的債務預算赤字，如果得不到額外資金，將被迫縮減業務規模。

The reported budget deficit could result in a reduction of immigration detention beds under contract, and a reduction in the number of non-citizens being monitored under the agency's alternative-to-detention programs, which includes ISAP. Although we have no way to predict whether the reported budget deficit will be addressed by Congress, we remain hopeful that a long-term funding shortfall will be avoided in order to address the agency's needs to deal with its border obligations.

報告的預算赤字可能會導致合約規定的移民拘留床位減少，並減少根據該機構的拘留替代方案（其中包括 ISAP）接受監測的非公民人數。儘管我們無法預測國會是否會解決所報告的預算赤字，但我們仍然希望避免長期資金短缺，以滿足該機構處理其邊境義務的需求。

As a result, our financial guidance for 2024 incorporates a range of assumptions. For the full year of 2024, we expect GAAP net income to be in the range of $110 million to $125 million on annual revenues of approximately $2.4 billion and an effective tax rate of approximately 28% exclusive of any discrete items. We expect our full-year 2024 adjusted EBITDA to be between $485 million and $515 million.

因此，我們的 2024 年財務指引包含了一系列假設。對於 2024 年全年，我們預計 GAAP 淨利潤將在 1.1 億至 1.25 億美元之間，年收入約為 24 億美元，有效稅率約為 28%（不包括任何離散項目）。我們預計 2024 年全年調整後 EBITDA 將在 4.85 億美元至 5.15 億美元之間。

With respect to our assumptions, the midpoint of our guidance assumes stable populations across our ICE processing centers and stable participant accounts under the ISAP contract. On the low end of the range, our guidance assumes that budget discussions continue to be delayed throughout the year and the ongoing budgetary pressures result in some moderate decreased utilization of both ICE processing center beds and electronic monitoring services under the ISAP contract. On the high end of the range, our guidance assumes only some moderate increase in the utilization of ICE processing center beds and electronic monitoring services under the ISAP contract should additional funding be appropriated for ICE during this fiscal year.

就我們的假設而言，我們指導的中點假設我們的 ICE 處理中心人口穩定，並且 ISAP 合約下的參與者帳戶穩定。在該範圍的低端，我們的指導假設全年預算討論繼續推遲，持續的預算壓力導致 ICE 處理中心床位和 ISAP 合約下的電子監控服務的利用率略有下降。在該範圍的高端，我們的指導假設，如果本財年為 ICE 撥出額外資金，那麼 ISAP 合約下的 ICE 處理中心床位和電子監控服務的使用率只會略有增加。

For the first quarter 2024, we expect GAAP net income to be in a range of $22 million to $24 million and quarterly revenues in a range of $600 million to $610 million. We expect first quarter of 2024 adjusted EBITDA to be in the range of $117 million to $122 million.

對於 2024 年第一季度，我們預計 GAAP 淨利潤將在 2,200 萬美元至 2,400 萬美元之間，季度營收將在 6 億美元至 6.1 億美元之間。我們預計 2024 年第一季調整後 EBITDA 將在 1.17 億美元至 1.22 億美元之間。

Compared to fourth quarter of 2023, our first quarter of 2024 guidance reflects the impact of having one fewer day in the quarter. Additionally, as we have previously addressed, our first quarter of the year is impacted by higher costs related to payroll taxes, which are front-loaded in the beginning of each year.

與 2023 年第四季相比，我們的 2024 年第一季指引反映了該季度天數減少的影響。此外，正如我們之前提到的，我們今年第一季受到與工資稅相關的較高成本的影響，這些成本在每年年初就提前支付。

Moving to our capital structure, during 2023, we reduced our total net debt by approximately $197 million. We ended the year with total net debt of less than $1.8 billion, which represents substantial progress toward our stated goal of reducing net debt and deleveraging our balance sheet.

轉向我們的資本結構，2023 年期間，我們的淨債務總額減少了約 1.97 億美元。截至年底，我們的淨債務總額低於 18 億美元，這表明我們在減少淨債務和去槓桿化資產負債表的既定目標方面取得了重大進展。

Going forward, our objective is to continue reducing our debt by approximately $175 million to $200 million per year, which would bring our total net debt to approximately $1.6 billion by the end of 2024. Over the next 12 months, we expect interest rates to stabilize, potentially decrease, which would further enhance our ability to reduce our net debt. Approximately one-half of our debt is based on floating interest rates, and decreases in interest rates would bolster our annual free cash flow that could be used to further reduce our overall levels of debt.

展望未來，我們的目標是繼續每年減少約 1.75 億至 2 億美元的債務，這將使我們的淨債務總額在 2024 年底達到約 16 億美元。在未來 12 個月中，我們預計利率將穩定並可能下降，這將進一步增強我們減少淨債務的能力。我們大約一半的債務是基於浮動利率，利率下降將增加我們的年度自由現金流，從而進一步降低我們的整體債務水準。

Finally, in 2024, we expect to take some additional steps to refinance portions of our debt. As a first step, this past December, we refinanced the two tranches of our revolving credit facility, which had different maturity dates, into a combined $265-million revolver, which is now mature in March of 2027. The successful refinancing of our revolver is indicative of our strong relationships with our banking partners and the significant interest we received from new banks.

最後，到 2024 年，我們預計將採取一些額外措施為部分債務進行再融資。作為第一步，去年 12 月，我們將兩部分循環信貸額度（到期日不同）再融資為總額 2.65 億美元的循環信貸，現已於 2027 年 3 月到期。我們的左輪手槍再融資的成功表明我們與銀行合作夥伴的牢固關係以及我們從新銀行獲得的巨大利益。

Earlier this week, we also announced the redemption of the remaining $23 million of senior notes that were due in October 2024, clearing the deck of any remaining debt maturities prior to 2026. Our focus will now shift to refinancing our two 2027 first lien term loans, which remain our most expensive debt, as well as potentially addressing our 2026 convertible notes.

本週早些時候，我們還宣布贖回將於 2024 年 10 月到期的剩餘 2,300 萬美元優先票據，清除 2026 年之前到期的任何剩餘債務。我們現在的重點將轉向為我們的兩筆 2027 年第一留置權定期貸款（這仍然是我們最昂貴的債務）進行再融資，並可能解決我們的 2026 年可轉換票據問題。

We hope that these efforts will allow us to reduce our overall cost of capital, achieve annual interest cost savings, and gain more flexibility within the covenants under our debt agreements to explore options to return capital to our shareholders in the future. We believe that our focus on reducing debt, delevering the balance sheet, and freeing up free cash flow for the potential return of capital will enhance value for our shareholders over time. At this time, I will turn the call over to James Black for a review of our GEO Secure Services segment.

我們希望這些努力將使我們能夠降低整體資本成本，實現年度利息成本節省，並在債務協議項下的契約範圍內獲得更大的靈活性，以探索未來向股東返還資本的選擇。我們相信，隨著時間的推移，我們對減少債務、去槓桿化資產負債表以及釋放自由現金流以獲得潛在資本回報的關注將提高我們股東的價值。此時，我將把電話轉給 James Black，以審查我們的 GEO 安全服務部門。

Thank you, Shayn. Good morning, everyone. It is my pleasure to review the annual milestones for GEO Secure Services. During 2023, we renewed 15 secure services contracts, including 10 contracts at the federal level with ICE and the US Marshals. During the year, our secure services facilities also successfully underwent a total of 209 audits, including internal audits, government reviews, third-party accreditations, and Prison Rape Elimination Act, or PREA certifications.

謝謝你，謝恩。大家，早安。我很高興回顧 GEO 安全服務的年度里程碑。2023 年，我們續簽了 15 份安全服務合同，其中包括與 ICE 和美國法警簽訂的 10 份聯邦級合約。年內，我們的安全服務設施也成功通過了總計 209 項審計，包括內部審計、政府審查、第三方認證和《監獄強姦消除法案》（PREA 認證）。

Twelve of our secure services facilities received accreditation from the American Correctional Association with an average score of 99.3%, and another 14 facilities received PREA certification. Our GTI transportation division and our GEOAmey UK joint venture completed approximately 18 million miles driven in the United States and the UK during the year.

我們的 12 個安全服務設施獲得了美國懲教協會的認證，平均得分為 99.3%，另有 14 個設施獲得了 PREA 認證。年內，我們的 GTI 運輸部門和 GEOAmey UK 合資企業在美國和英國完成了約 1800 萬英里的行駛里程。

Moving to current trends for our government agency partners, at the federal level, populations at our US Marshals detention facilities remain stable throughout 2023. Our US Marshals facilities around the country support the agency as it carries out its mission of providing custodial services for pre-trial detainees facing federal criminal proceedings.

從我們政府機構合作夥伴的當前趨勢來看，在聯邦層面，美國法警拘留設施中的人口在 2023 年保持穩定。我們遍布全國的美國法警設施支持該機構履行為面臨聯邦刑事訴訟的審前被拘留者提供監護服務的使命。

We believe that our US Marshal facilities provide needed bed space near federal courthouses where there is generally a lack of suitable alternative detention capacity. In the fourth quarter, we renewed our contract with the US Marshals to provide secure residential support services for the government-owned 512-bed El Centro Detention Facility for a two-year term.

我們相信，我們的美國法警設施在聯邦法院附近提供了所需的床位，而聯邦法院通常缺乏合適的替代拘留能力。第四季度，我們與美國法警續簽了合同，為政府擁有的 512 個床位的 El Centro 拘留所提供為期兩年的安全住宿支援服務。

Moving to our ICE processing centers, we experienced a steady increase in ICE populations throughout 2023, and most recently, we saw an 18% increase during the fourth quarter of 2023. During the fourth quarter, we also renewed our contract with ICE for the provision of the 1,532-bed Aurora ICE Processing Center and related secure residential support services in Colorado. Additionally, as we previously disclosed, in December 2023, we received a task order from ICE funding our Adelanto ICE Processing Center contract only through February 19, 2024, as ICE launched a review of the effect of COVID-related court injunction orders that prevent full use of the facility.

轉向我們的 ICE 處理中心，我們的 ICE 數量在 2023 年全年穩步增長，最近在 2023 年第四季度增長了 18%。第四季度，我們還與 ICE 續簽了合同，在科羅拉多州提供擁有 1,532 個床位的 Aurora ICE 處理中心和相關安全住宅支援服務。此外，正如我們之前披露的那樣，2023 年12 月，我們收到了ICE 的任務指令，為我們的阿德蘭托ICE 處理中心合約提供資金，期限僅到2024 年2 月19 日，因為ICE 啟動了對與新冠病毒相關的法院禁令的影響的審查，這些禁令阻止了全面的審查。使用該設施。

In January 2024, GEO and three unions representing over 350 employees at the facility filed motions in this litigation to intervene and to vacate these outdated, COVID-related injunction orders. Subsequent to the filing of these motions, ICE extended the task order funding the Adelanto contract through June 19, 2024, allowing additional time for what we hope will be a positive outcome that includes the resumption of intake at this facility.

2024 年 1 月，GEO 和代表該工廠 350 多名員工的三個工會在此訴訟中提出動議，要求幹預並撤銷這些過時的、與新冠病毒相關的禁令。在提交這些動議後，ICE 將為阿德蘭托合約提供資金的任務令延長至 2024 年 6 月 19 日，為我們希望取得積極成果（包括恢復該設施的接收）留出更多時間。

Moving to the federal appropriations process, ICE is currently funded under a short-term continuing resolution that runs through March 8. The current funding levels for ICE provide 34,000 ICE detention beds, and we estimate the present census of active ICE detention beds to be at approximately 38,500. As previously noted, if no agreement is reached on an appropriations package in Congress prior to March 8, the federal government could again be funded under a continuing resolution or face the prospect of a government shutdown.

轉向聯邦撥款流程，ICE 目前根據一項持續至 3 月 8 日的短期持續決議提供資金。ICE 目前的資金水準可提供 34,000 個 ICE 拘留床位，我們估計目前 ICE 有效拘留床位的普查約為 38,500 個。如前所述，如果國會在 3 月 8 日之前未能就撥款方案達成一致，聯邦政府可能會再次根據持續決議獲得資金，否則將面臨政府關閉的前景。

As a long-standing service provider to the federal government, we play no role in and have no control over congressional appropriations decisions, the timing of those decisions, or the establishment or implementation of federal immigration policies. Our focus remains on providing the highest-quality services, and we stand ready to support ICE with any additional needs.

作為聯邦政府的長期服務提供者，我們在國會撥款決定、這些決定的時間表或聯邦移民政策的製定或實施中不發揮任何作用，也無法控制。我們的重點仍然是提供最優質的服務，我們隨時準備好支援 ICE 的任何其他需求。

We have a total of 9,000 additional beds at a number of facilities that we believe are well suited to support ICE's mission. And we have the expertise and resources to provide the needed ancillary services to meet the agency's needs.

我們在許多設施中總共增加了 9,000 個床位，我們認為這些設施非常適合支持 ICE 的使命。我們擁有專業知識和資源來提供所需的輔助服務，以滿足該機構的需求。

GEO has a long-standing track record delivering professional support services on behalf of ICE at GEO-contracted ICE processing centers. GEO-contracted ICE processing centers offer around-the-clock access to quality healthcare services.

GEO 擁有代表 ICE 在 GEO 簽約的 ICE 處理中心提供專業支援服務的長期記錄。GEO 簽約的 ICE 處理中心提供全天候優質醫療保健服務。

Our healthcare staffing at ICE processing centers, where we provide resident healthcare, is generally more than double the number of healthcare staff in a typical state correctional facility. GEO-contracted ICE processing centers offer full access to legal counsel and legal libraries and resources, and we have dedicated space at each ICE center to accommodate meetings with legal counsel.

我們在 ICE 處理中心提供居民醫療保健服務，其醫療保健人員數量通常是典型州懲教機構的醫療保健人員數量的兩倍多。GEO 簽約的 ICE 處理中心提供全面的法律顧問、法律圖書館和資源服務，並且我們在每個 ICE 中心都有專門的空間來容納與法律顧問的會議。

GEO-contracted ICE processing centers provide three daily meals to residents that are culturally sensitive, special diet-appropriate, and approved by registered dietitians. We also provide access to faith-based and religious opportunities at each GEO-contracted ICE processing center, and we partner with community volunteers as needed to ensure fair representation of various faiths and denominations.

GEO 簽約的 ICE 處理中心為居民提供一日三餐，這些餐點具有文化敏感性、適合特殊飲食並經註冊營養師批准。我們還在每個 GEO 簽約的 ICE 處理中心提供基於信仰和宗教的機會，並根據需要與社區志工合作，以確保不同信仰和教派的公平代表。

GEO-contracted ICE processing centers also offer access to quality recreational activities. We have made a significant investment in the enhanced amenities at these centers, including artificial turf soccer fields, covered pavilions, exercise equipment, and multipurpose rooms.

GEO 簽約的 ICE 處理中心也提供優質的娛樂活動。我們對這些中心的設施進行了大量投資，包括人造草坪足球場、有頂棚的涼亭、健身器材和多功能室。

We have also historically provided secure transportation services for ICE, primarily at 12 of the GEO-contracted ICE processing centers. And in 2023, our GTI transportation division began providing secure air operation support for ICE as well.

我們歷來也為 ICE 提供安全運輸服務，主要是在 GEO 簽約的 12 個 ICE 處理中心。2023 年，我們的 GTI 運輸部門也開始為 ICE 提供安全的空中運作支援。

Moving to our state government agency partners, during the fourth quarter, we received a two-year renewal for our lease agreement with the state of New Mexico for our company-owned 600-bed Guadalupe County Correctional Facility, which is managed and operated by the New Mexico Correctional Department. In December, we were notified by the Commonwealth of Virginia that the management of the state-owned 1,536-bed Lawrenceville Correctional Center will transition to the Virginia Department of Corrections in August of 2024. We have had a successful partnership with the Virginia Department of Corrections, and we are committed to working closely with the agency to ensure a smooth transition.

轉向我們的州政府機構合作夥伴，在第四季度，我們與新墨西哥州就我們公司擁有的600 個床位的瓜達盧佩縣懲教所簽訂了為期兩年的租賃協議，該設施由新墨西哥州管理和營運。新墨西哥州懲教署。去年 12 月，我們接到維吉尼亞州通知，擁有 1,536 個床位的國有勞倫斯維爾懲教中心的管理權將於 2024 年 8 月移交給維吉尼亞懲教部。我們與維吉尼亞懲教局建立了成功的合作夥伴關係，我們致力於與該機構密切合作，以確保順利過渡。

Finally, with respect to our international markets, as previously noted, we activated a new healthcare contract in July of 2023 with the state of Victoria and Australia to deliver secure residential healthcare services across 13 public prisons. We have a long-standing presence in Australia, and we expect to continue to pursue future growth opportunities in this important market. At this time, I will turn the call over to Wayne Calabrese for a review of GEO Care division.

最後，就我們的國際市場而言，如前所述，我們於 2023 年 7 月與維多利亞州和澳大利亞啟動了一項新的醫療保健合同，以便在 13 個公立監獄提供安全的住宅醫療保健服務。我們在澳洲有著長期的業務，我們希望繼續在這個重要市場尋求未來的成長機會。此時，我會將電話轉給 Wayne Calabrese，以審查 GEO Care 部門。

Thank you, James. I'm pleased to provide an overview of the annual operational milestones for our GEO Care business unit. In 2023, we renewed 32 residential reentry center contracts, including 16 contracts with the Federal Bureau of Prisons. Additionally, we renewed 52 non-residential day reporting center contracts.

謝謝你，詹姆斯。我很高興向您概述 GEO Care 業務部門的年度營運里程碑。2023 年，我們續簽了 32 份住宅重返中心合同，其中包括與聯邦監獄局的 16 份合約。此外，我們還續簽了 52 份非住宿日報中心合約。

During the year, our residential reentry centers, non-residential day reporting centers, and ISAP offices successfully underwent a combined total of 338 audits, including internal audits, government reviews, third-party accreditation, and PREA certifications. 11 of our residential reentry centers received accreditation from the American Correctional Association in 2023 with an average accreditation score of 99.9%, and 8 of our residential reentry centers received PREA certifications.

年內，我們的住宿重返中心、非住宿日報中心和 ISAP 辦事處總共成功接受了 338 次審核，包括內部審核、政府審查、第三方認證和 PREA 認證。 2023 年，我們的 11 個寄宿重返中心獲得了美國懲教協會的認證，平均認證分數為 99.9%，8 個寄宿重返中心獲得了 PREA 認證。

Our 35 residential reentry centers provide transitional housing and rehabilitation programs for individuals reentering their communities across 14 states. Our non-residential and day reporting centers provide high-quality community-based services, including cognitive behavioral treatment, for up to approximately 9,100 parolees and probationers at approximately 90 locations across 10 different states. All key outcome metrics in our reentry programs showed improvement throughout the year, attesting to our evidence-based practices and a track record for lowering the rate of recidivism.

我們的 35 個居住重新進入中心為 14 個州重新進入社區的個人提供過渡性住房和康復計劃。我們的非住宿和日間報告中心為 10 個不同州約 90 個地點的多達約 9,100 名假釋者和緩刑犯提供高品質的社區服務，包括認知行為治療。我們的重返計畫中的所有關鍵成果指標全年都有所改善，證明了我們循證實踐和降低再犯率的記錄。

Moving to our GEO in-prison programs and continuum of care division, in 2023, we delivered enhanced in-custody rehabilitation to an average daily population of approximately 2,600 individuals at 30 in-prison program sites in seven states and post-release services to approximately 21,000 individuals at 13 continuum of care sites in eight states. During the year, we renewed five in-prison treatment contracts across the country. Our in-custody rehabilitation services include academic programs focused on helping those in our care attain high school equivalency diplomas.

轉向我們的GEO 監獄內計劃和連續護理部門，到2023 年，我們在7 個州的30 個監獄計劃地點為平均每天約2,600 人提供了強化的在押康復服務，並為大約2,600 人提供了釋放後服務八個州的 13 個連續護理點為 21,000 人提供服務。年內，我們在全國範圍內續簽了五份監獄治療合約。我們的羈押復健服務包括專注於幫助我們照顧的人獲得高中同等文憑的學術課程。

We've made a significant investment to equip all of our classrooms with smart boards to aid in the delivery of academic instruction at all our facilities. We have also focused on developing vocational programs that not only lead to certification when completed but are also based on market job placement needs.

我們投入了大量資金，為所有教室配備了智慧板，以幫助在我們所有設施中提供學術教學。我們還專注於開發職業計劃，這些計劃不僅在完成後獲得認證，而且還基於市場就業安置需求。

Our substance abuse treatment programs are an important piece of our rehabilitation services because many of the individuals in our care suffer from addiction. Our facilities also provide extensive faith-based and character-based programs and we have designated faith-based and character-based housing units or dorms across our facilities to enhance the delivery of these programs.

我們的藥物濫用治療計劃是我們康復服務的重要組成部分，因為我們照顧的許多人都患有毒癮。我們的設施還提供廣泛的基於信仰和品格的計劃，並且我們在我們的設施中指定了基於信仰和品格的住房單元或宿舍，以加強這些計劃的實施。

During 2023, we completed approximately 4.6 million hours of enhanced, in-custody rehabilitation programming. Our academic programs awarded more than 3,100 high school equivalency diplomas and our vocational courses awarded close to 9,200 vocational training certifications.

2023 年期間，我們完成了約 460 萬小時的密集羈押復健計畫。我們的學術課程授予了 3,100 多個高中同等文憑，我們的職業課程授予了近 9,200 個職業培訓認證。

Our substance abuse treatment programs awarded approximately 8,100 program completions. We achieved over 46,000 behavioral treatment program completions and more than 36,000 individual cognitive behavioral treatment sessions.

我們的藥物濫用治療計劃授予約 8,100 名計劃完成者。我們完成了超過 46,000 次行為治療計畫和超過 36,000 次個人認知行為治療療程。

During the year, we also allocated approximately $1.6 million toward post-release services. This funding supported more than 3,100 individuals released from GEO facilities as they returned to their communities.

這一年，我們還撥款約 160 萬美元用於發布後服務。這筆資金支持了 3,100 多名從 GEO 設施釋放的人員返回社區。

Our GEO continuum of care integrates enhanced in-custody rehabilitation, including cognitive with post-release support services that address critical community needs of released individuals. We believe our award-winning program provides a proven model on how the two-plus million people in the United States criminal justice system can be better served in changing their lives.

我們的 GEO 連續照護整合了加強的羈押康復，包括認知和釋放後支援服務，以滿足釋放人員的關鍵社區需求。我們相信，我們的獲獎計畫提供了一個經過驗證的模型，說明如何更好地為美國刑事司法系統中的兩百萬人提供服務，改變他們的生活。

Finally, turning to our electronic monitoring and supervision services segment. Our BI subsidiary provides a full suite of monitoring and supervision solutions, products, and technologies on behalf of federal, state, and local agencies across the country.

最後，轉向我們的電子監控和監督服務部門。我們的 BI 子公司代表全國聯邦、州和地方機構提供全套監控解決方案、產品和技術。

During 2023, we experienced a decrease in electronic monitoring revenues due to a decline in the number of participants required to be monitored under the federal government's intensive supervision appearance program, or ISAP, compared to 2022. After steadily declining during the first three quarters of 2023, the number of participants under the ISAP contract remained relatively stable during the fourth quarter of 2023 in a range of approximately 190,000 to 195,000 participants.

與 2022 年相比，2023 年我們的電子監控收入有所下降，原因是聯邦政府強化監管亮相計劃 (ISAP) 下需要監控的參與者數量減少。在 2023 年前三個季度穩步下降後，ISAP 合約的參與者數量在 2023 年第四季度保持相對穩定，約為 190,000 至 195,000 名參與者。

BI has provided technology solutions, holistic case management, supervision, monitoring, and compliance services under ISAP for almost 20 years. Under BI's tenure, ISAP has achieved high levels of compliance using a variety of new technologies and case management services over that time. We expect BI to continue to explore new and innovative technology solutions to support the needs of ICE and all our current government agency partners and to add new partners as we pursue future quality growth opportunities. At this time, I'd like to turn the call back to George for closing remarks.

近 20 年來，BI 一直在 ISAP 下提供技術解決方案、整體案例管理、監督、監控和合規服務。在 BI 任職期間，ISAP 使用各種新技術和個案管理服務實現了高水準的合規性。我們預計 BI 將繼續探索新的創新技術解決方案，以支持 ICE 和我們目前所有政府機構合作夥伴的需求，並在我們追求未來高品質成長機會的過程中增加新的合作夥伴。此時，我想將電話轉回給喬治，讓其結束語。

Thanks, Wayne. In closing, our diversified business units delivered strong financial and operational performance throughout 2023. We've taken what we believe is a prudent approach to our initial financial guidance for 2024, given the uncertainty surrounding current federal budget discussions in Congress.

謝謝，韋恩。最後，我們的多元化業務部門在 2023 年取得了強勁的財務和營運表現。鑑於國會當前聯邦預算討論的不確定性，我們對 2024 年初步財務指導採取了我們認為審慎的方法。

However, as we said today, we believe we have several opportunities for potential upside. We are actively marketing our current idle facilities and our diversified services as we pursue quality growth opportunities for our company. We also remain focused on reducing our overall net debt and refinancing portions of our debt. These efforts are aimed at reducing our annual interest costs and gaining the flexibility of potential return of capital to shareholders in the future.

然而，正如我們今天所說，我們相信我們有一些潛在的上漲機會。在為公司尋求優質成長機會的同時，我們正在積極行銷現有的閒置設施和多元化服務。我們也持續致力於減少整體淨債務和部分債務再融資。這些努力旨在降低我們的年度利息成本，並為未來股東獲得潛在資本回報的靈活性。

Operational, we remain steadfast in our commitment to achieving operational excellence in the daily delivery of our services on behalf of our government agency partners. We are grateful for our 18,000 employees worldwide whose dedication and professionalism has allowed GEO to accomplish the milestones we have highlighted for you today. That completes our remarks, and we'd be glad to take some questions. Operator.

在營運方面，我們始終堅定地致力於代表政府機構合作夥伴在日常服務交付中實現卓越營運。我們感謝全球 18,000 名員工的奉獻精神和專業精神，使 GEO 能夠實現我們今天向您強調的里程碑。我們的發言到此結束，我們很樂意回答一些問題。操作員。

(Operator Instructions) Joe Gomes, Noble Capital.

（操作員指示）Joe Gomes，Noble Capital。

Good morning, nice quarter.

早上好，美好的季度。

Thank you.

謝謝。

So you mentioned, George, in your remarks about the underfunding of ICE, and I'm sure you guys have seen the reports that came out yesterday, another article today, about speculation, we'll call it, that they're going to release people from ICE down to 22,000 beds from the current, as you said, 38,500. And I was just trying to get your thoughts on that happening. I understand you don't know about the funding yet. I'm just kind of -- more general, your thoughts. Has something like this ever occurred previously in ICE where they just had a mass release, excluding the COVID timeframe?

喬治，你在關於 ICE 資金不足的評論中提到，我相信你們已經看到了昨天發布的報告，今天的另一篇文章，關於猜測，我們稱之為，他們將ICE 的床位數量從目前的38,500個減少到22,000 個。我只是想了解你對這件事的看法。我知道您還不知道融資的事。我只是——更籠統地說，你的想法。ICE 之前是否曾發生過類似的事情，他們剛剛進行了大規模發布，不包括新冠疫情的時間範圍？

I don't think there's been anything of comparable scope and nature as being discussed in the, I guess, press release that came from the White House regarding ICE populations. But I'm encouraged by reading one of the news articles today that the House Republicans are planning to unveil Ukraine, Israel, Taiwan and border bill as an alternative to the border-free package that was passed by the Senate, Tuesday. And the lawmakers are expected to release this bill any day now. So our hope is one of optimism that funding for foreign aid can be tied to funding for border security in a comprehensive and compromised basis that will take care of the critical elements in both issues.

我認為白宮關於 ICE 人口的新聞稿中沒有討論過任何具有可比較範圍和性質的內容。但今天讀到的一篇新聞文章令我深受鼓舞，報道稱眾議院共和黨人計劃公佈烏克蘭、以色列、台灣和邊境法案，作為週二參議院通過的無邊界一攬子計劃的替代方案。預計立法者隨時都會發布這項法案。因此，我們樂觀地希望，對外援助資金可以在全面和妥協的基礎上與邊境安全資金掛鉤，從而照顧到這兩個問題的關鍵要素。

Okay, thanks for that. And as we all know, you have a number of contracts at your facilities that have guaranteed levels. I was just wondering, are all those facilities now at or above those levels, or do you still have a couple that are below those guaranteed levels?

好的，謝謝。眾所周知，您的工廠簽訂了許多有保證水平的合約。我只是想知道，所有這些設施現在是否都達到或高於這些水平，或者還有一些設施低於這些保證水平嗎？

I think most are above those levels, and most of our facilities do have those guarantees where you referenced. The higher levels are most likely along the southern border locations where the activity is most prevalent. We do have capacity, as was mentioned previously, between 7,000 and 9,000. We call them incremental beds at existing facilities that could be provided to ICE depending result of additional funding for the agency.

我認為大多數都高於這些水平，而且我們的大多數設施確實有您提到的那些保證。較高水準最有可能出現在活動最頻繁的南部邊境地區。如同前面所提到的，我們的容量確實在 7,000 到 9,000 之間。我們稱之為現有設施的增量床位，可以根據該機構額外資金的結果向 ICE 提供這些床位。

Okay, and just to shift the gears here for a second, we talked in the past, there was a request for information about monitoring, and I was just wondering if there's been any update on that, or any movement on that potential change in the monitoring.

好的，先換個話題，我們過去談過，有人要求提供有關監控的信息，我只是想知道是否有任何更新，或者關於潛在變化的任何進展監控。

I think that was for RFI, request for information. And we submitted our response to that request, but we haven't heard anything more about that. We are aware of certain ideas about extending the ISAP program and the use of ankle monitors to heads of households, and that is possibly predicated on additional funding as well.

我認為這是為了 RFI，索取資訊。我們提交了對該請求的答复，但我們還沒有聽到更多相關消息。我們知道有關擴展 ISAP 計劃以及向戶主使用腳踝監視器的某些想法，這也可能需要額外的資金。

Okay. And anything new that you can point to on the state and local level for new business?

好的。對於州和地方層級的新業務，您有什麼新的建議嗎？

I think there are states that are facing problems because of aging facilities. In particular, I think most states are facing those kind of problems. And that means a combination of either consolidation of populations within larger facilities, or actually building new facilities, or leasing facilities for that purpose as we have done with clients in Oklahoma and New Mexico. So, as time progresses, I think there will be more opportunities for us to market our idle facilities within those states that are facing those kinds of problems.

我認為有些州因設施老化而面臨問題。特別是，我認為大多數州都面臨著此類問題。這意味著要么將人口整合到更大的設施中，要么實際建造新設施，要么為此目的租賃設施，就像我們與俄克拉荷馬州和新墨西哥州的客戶所做的那樣。因此，隨著時間的推移，我認為我們將有更多機會在面臨此類問題的州內推銷我們的閒置設施。

Okay. And one more for me, and I'll get back in queue. G&A was a little bit higher than we had expected in the quarter. Was there anything unusual in that or is that just seasonality?

好的。再給我一份，我會重新排隊。本季的一般行政費用略高於我們的預期。這其中有什麼不尋常的地方還是只是季節性的？

Yeah, Joe. It's Brian. That was just year-end true-ups, and professional fees, and other things going on, nothing specific. We don't expect in our guidance that that run rate that occurred in the fourth quarter, so we assume a little bit lower run rate going forward.

是的，喬。是布萊恩。這只是年終調整、專業費用和其他事情，沒有什麼具體的。在我們的指導中，我們預計第四季度的運行率不會出現，因此我們假設未來的運行率會稍低一些。

Great, thanks for taking the questions. I'll get back in queue.

太好了，感謝您提出問題。我會回到隊列中。

Brian Violino, Wedbush Securities.

布萊恩‧維奧利諾，韋德布希證券公司。

Great, thanks. Good morning, nice quarter. Thanks for taking my questions. Just wanted to clarify some of the assumptions in the guidance. In the high end, you're assuming -- sounds like incremental funding increases. I'm just curious, could you talk to the volume of funding increase you're baking into that high-end assumption. I'm assuming it's nowhere near the numbers that the center was throwing out just given the numbers. And then, does your midpoint guidance assume any incremental funding as well? I know that the low end doesn't but I'm curious about the midpoint.

萬分感謝。早上好，美好的季度。感謝您回答我的問題。只是想澄清指南中的一些假設。在高端，你假設──聽起來增加了增量資金。我只是很好奇，您能談談您在高端假設中所增加的資金量嗎？我猜想這與中心給的數字相差甚遠。然後，您的中點指導是否也假設有任何增量資金？我知道低端沒有，但我對中點很好奇。

So -- this is Brian. The high end, as we said, is really only moderate. I don't think it assumes significant additional funding. It assumes maybe there might be some reprogramming and ICE uses a few incremental more beds or slightly increases the participant count in ISAP.

所以——這是布萊恩。正如我們所說，高端實際上只是中等。我不認為它需要大量的額外資金。它假設可能會進行一些重新編程，並且 ICE 使用一些增量床位或稍微增加 ISAP 中的參與者數量。

Remember we said in the fourth quarter, we were in the 190,000 to 195,000 participant level. It's down slightly from that currently. And then, the low end is the same. It just assumes maybe some slight continued reduction in the ISAP participant counts and then maybe some modest reduction if -- right now ICE is currently at 38,000 plus. They're funded for 34,000, supposedly, so maybe they'd go back down closer to the 34,000 or something like that. But nothing about like what George was talking about previously, either on the upside or the downside.

請記住我們在第四季度說過，我們的參與者水平為 190,000 至 195,000 人。與目前相比略有下降。然後，低端也是一樣。它只是假設 ISAP 參與者數量可能會持續略有減少，然後可能會略有減少，如果 - 目前 ICE 目前的人數超過 38,000 人。據推測，他們的資助金額為 34,000 美元，所以也許他們會回落到接近 34,000 美元或類似的水平。但無論是好的方面還是壞的方面，都不像喬治之前所說的。

Got it, okay. And then in terms of these articles coming out recently about the reduction in detainees, do you think there's any possibility, and it's probably hard to tell, that there could be an opportunity to move those detainees into the ATD program if there's some sort of incremental savings from the budget perspective?

明白了，好吧。然後，就最近發表的有關減少被拘留者人數的文章而言，您認為是否有可能（可能很難說），如果有某種增量措施，可能有機會將這些被拘留者轉移到 ATD 計劃中？從預算的角度來看節省？

That is a possibility. We are staffed up and scaled up for that kind of policy change if that's so desired. The ISAP program has been talked about with respect to expanding it to other groups of individuals. And certainly, if there's a desire to reduce detention beds and place those people under the ISAP monitoring program, we're ready to assist in that policy change.

這是有可能的。如果需要的話，我們會增加人員並擴大規模來應對這種政策變化。人們一直在談論 ISAP 計劃將其擴展到其他個人群體的問題。當然，如果希望減少拘留床位並將這些人置於 ISAP 監控計畫之下，我們已準備好協助這項政策改變。

Great, thanks, and last one from me. You saw a pretty nice uptick in your NOI margins across almost all your segments. Just wanted to get your view on the sustainability of those margins of the 2024, is there anything sort of seasonal or one-time on the operating expense line that we should be aware of that was benefiting you this quarter?

太好了，謝謝，這是我的最後一篇。您發現幾乎所有細分市場的 NOI 利潤率都有相當不錯的上升。只是想了解您對 2024 年這些利潤的可持續性的看法，營運費用線上是否有任何我們應該意識到的季節性或一次性因素使您本季受益？

No, I think as the populations in our facilities, as we talked about, has rebounded nicely, especially in our ICE facilities, but also to some degree in our Marshals facilities and I think to the degree that that holds going next year, we should be able to sustain that. Except the first quarter is a little bit lower for the reasons that Shayn mentioned previously. There's some seasonality as well as the impact of payroll-related taxes in the first quarter so that'll put a little bit of downward pressure.

不，我認為正如我們所說，我們設施中的人口已經很好地反彈，特別是在我們的ICE 設施中，而且在某種程度上在我們的法警設施中也是如此，我認為明年這種情況持續下去，我們應該能夠維持下去。但由於 Shayn 先前提到的原因，第一季的業績略有下降。第一季存在一些季節性因素以及工資相關稅收的影響，因此會帶來一些下行壓力。

OK, great, thank you.

好的，太好了，謝謝。

Brendan McCarthy, Sidoti.

布倫丹·麥卡錫，西多蒂。

Hey, good morning. Thanks for taking my questions. Just to follow up on the potential release of the thousands of ICE detainees, I believe I saw there was a bed count number thrown out there, potentially bringing the number of beds funded down to around 22,000. I'm just curious, is that number captured in the low end of the guidance range?

嗨，早安。感謝您回答我的問題。為了跟進可能釋放數千名 ICE 被拘留者的情況，我相信我看到了在那裡公佈的床位數量，這可能會使資助的床位數量減少到 22,000 個左右。我只是好奇，這個數字是否在指導範圍的低端？

No. And just as a reminder, our facilities, as George was mentioning earlier, have, for the most part -- all of our contracts except for one have fixed payment structure, which represents a significant component of the revenue. And when the ICE populations were lower historically during the COVID pandemic, that protected significantly and enhanced or supported the predictability of our cash flow. So, while there would be some impact if they went that low, it would not be as significant as it might seem on a per-bed basis. As George said, it may impact a few facilities where we're already above those guarantees, but at some of those facilities, those incremental per diems above the guarantees are lower, so it would not be dollar-for-dollar impact, if you will.

不。提醒一下，正如喬治之前提到的，我們的設施在大多數情況下——除了一份合約之外的所有合約都有固定的付款結構，這代表了收入的重要組成部分。在新冠病毒大流行期間，當 ICE 人口處於歷史較低水平時，這可以顯著保護並增強或支持我們現金流的可預測性。因此，雖然如果降到如此低的水平會產生一些影響，但就每張床位而言，影響不會像看起來那麼大。正如喬治所說，這可能會影響一些我們已經高於這些保證的設施，但在其中一些設施中，高於保證的增量每日津貼較低，所以這不會是美元對美元的影響，如果你將要。

Got it. And is it safe to assume the only instance that may happen is if the government were to shut down come March 8 or -- is that fair to assume?

知道了。可以安全地假設唯一可能發生的情況是政府在 3 月 8 日關閉，或者——這樣的假設公平嗎？

No, I don't think it would happen during that time. I don't sense that there's an immediate desire to do that. I think all likelihood is that people will await the results of the final budget decisions that will take place by the end of the first week of March.

不，我認為那段時間不會發生。我不認為人們有立即這樣做的願望。我認為人們很可能會等待三月第一週結束時最終預算決定的結果。

Got it. And then I noticed in the quarter, in the fourth quarter, there was a nice jump in interest income. What drove that specifically?

知道了。然後我注意到在第四季度，利息收入出現了大幅成長。具體是什麼推動了這一點？

That's going to be predominantly higher interest rates by the end of the year, plus some cash balances we have internationally.

到年底，利率將主要上升，加上我們在國際上擁有的一些現金餘額。

Got it, okay. Then, one last question for me, I've been reading into this speculated release in reporting management program. It sounds like something that ICE may try and rebrand the ATD program into, from my research. But just wondering if you can provide some insight on the potential development of that program and whether you think ATD will somehow evolve into that?

明白了，好吧。然後，我的最後一個問題是，我一直在閱讀報告管理計劃中推測的版本。根據我的研究，這聽起來像是 ICE 可能會嘗試將 ATD 專案重新命名為的專案。但只是想知道您是否可以對該計劃的潛在發展提供一些見解，以及您是否認為 ATD 會以某種方式發展成這樣？

I think there was discussion about doing that, but we haven't heard anything more as to whether those ideas have progressed.

我認為有人對此進行過討論，但我們還沒有聽到更多關於這些想法是否取得進展的消息。

Understood. That's all for me. Thank you.

明白了。這就是我的全部。謝謝。

(Operator Instructions) Kirk Ludtke, Imperial Capital.

（操作員指示）柯克·路特克，帝國首都。

Hello, everyone. Congratulations on the quarter. Thanks for the call.

大家好。恭喜本季。感謝您的來電。

Thank you.

謝謝。

Just a couple follow-ups, you mentioned in your remarks that the Senate bill included $1.3 billion of funding for alternatives to detention. I was curious, did it break that down into how much of that would be allocated to ISAP?

就幾個後續行動而言，您在發言中提到參議院法案包括 13 億美元的資金用於替代拘留的方案。我很好奇，它是否將其分解為分配給 ISAP 的金額？

No, it did not, and that was the original Senate bill. It's not the one that passed, which was just the foreign aid funding.

不，沒有，那是最初的參議院法案。不是通過的，只是對外援助資金而已。

Correct, yes. I'm just curious because it's, who knows, it might -- that type -- some of that might show up in future proposals. So, I was curious. Changing topics for a second here, on electronic monitoring, revenues were down year over year, but margins were remarkably stable. Can you talk about the cost structure in that business or how you were able to maintain margins with such a meaningful year-over-year decline in revenues?

正確，是的。我只是很好奇，因為誰知道呢，它可能——那種類型——其中一些可能會出現在未來的提案中。所以，我很好奇。這裡換個話題，在電子監控方面，營收年減，但利潤率卻非常穩定。您能否談談該業務的成本結構，或者您如何在收入同比大幅下降的情況下保持利潤率？

Sure. I mean, I think a lot of it is just product mix and the products that we're using. Some of those products we own outright and they're already mostly paid for and depreciated.

當然。我的意思是，我認為很多只是產品組合和我們正在使用的產品。其中一些產品是我們完全擁有的，它們大部分已經付款並折舊。

And we found some cost efficiency.

我們發現了一些成本效率。

Yeah, and during the year, last year, we benefited from the full impact of those that were somewhat negotiated at the end of '22 and early '23, and that helped as well.

是的，去年，我們從 22 年底和 23 年初進行的一些談判的全面影響中受益，這也有所幫助。

Got it, thank you. That's helpful. And then with respect to the -- you mentioned that the technology in ISAP is evolving. Can you talk about what you expect to happen with respect to the technology in that program and how it might impact margins and CapEx?

收到了。謝謝。這很有幫助。然後關於——您提到 ISAP 中的技術正在不斷發展。您能否談談您期望該計劃中的技術會發生什麼以及它可能如何影響利潤率和資本支出？

Well, all technologies I think are obligated to continue to develop and evolve as our products, which presently include ankle monitors, phones, and the new watches that we've developed. It's called the VeriWatch. And we continue to think through replacements for those items in the future, replacements or improvement of those monitoring mechanisms.

嗯，我認為所有技術都有義務隨著我們的產品而繼續發展和發展，目前包括腳踝監視器、電話和我們開發的新手錶。它被稱為 VeriWatch。我們將繼續考慮未來對這些項目的替換，對這些監控機制的替換或改進。

OK, thank you. The last call, you mentioned that the county jails in northern states were moving away from DHS and ICE and that might be an opportunity down the road. Do you -- I guess, is there any way to put a range on that? How many beds you think might be in play this year?

好的謝謝。上次電話中，您提到北部各州的縣監獄正在脫離國土安全部和 ICE，這可能是未來的機會。我想，你有沒有辦法對此設定一個範圍？您認為今年可能會使用多少床位？

You know, it's obviously going to depend on getting additional funding for ICE as we move through the fiscal year, and those opportunities are probably going to pop up in the second half of the year, assuming additional funding.

你知道，這顯然將取決於我們在本財年中為 ICE 獲得額外的資金，並且假設有額外的資金，這些機會可能會在今年下半年出現。

Got it, that's helpful. Thank you, I appreciate it.

明白了，很有幫助。謝謝你，我很感激。

Greg Gibas, Northland Securities.

吉巴斯 (Greg Gibas)，北國證券。

Hey, thanks guys. Congrats on the quarter. Thanks for taking the questions. Wanted to get a sense because I know -- we expected a little bit of a rebound in the second half of 2023 in ISAP participants that didn't necessarily happen. And just wanted to see if you had visibility on how those populations are expected to change, or is really stable or flat the best assumption right now as we await more visibility from whether there's going to be government funding?

嘿，謝謝大家。恭喜本季。感謝您提出問題。我想了解一下，因為我知道——我們預計 2023 年下半年 ISAP 參與者會出現一點反彈，但這不一定會發生。只是想看看您是否了解這些人口預計將如何變化，或者在我們等待政府是否會提供資金的更多可見性時，是否真的穩定或持平是目前最好的假設？

We really won't know anything until the end of the first week of March. That's the deadline for the existing continuing resolutions. And the funding for -- the balance of the fiscal year will be determined by, I believe, March 8, unless there's the government shutdown of some sort, which we hope there is not.

直到三月第一週結束前我們真的不會知道任何事。這是現有持續決議的最後期限。我相信，財政年度餘額的資金將在 3 月 8 日之前確定，除非出現某種形式的政府關門，我們希望不會發生這種情況。

OK, that's fair, just wanted to see if you had any insight on whether that would change otherwise. Wanted to also ask, just with respect to your cost structure in 2024, any notable changes or variations on expenses relative to 2023 that are worth calling out or is the cost structure going to be pretty steady comparatively?

好吧，這是公平的，只是想看看您是否對這種情況是否會改變有任何見解。也想問，就 2024 年的成本結構而言，相對於 2023 年，費用有任何顯著變化或變化值得指出，還是成本結構相對而言會相當穩定？

I would say it's going to be pretty steady comparatively. The biggest, maybe. line item change will be as we continue to reduce our debt, the interest expense year over year should be lower, I think, what, about 20 million, 25 million?

我想說，相對而言，它會相當穩定。也許是最大的。行項目的變化將會是隨著我們繼續減少我們的債務，利息支出同比應該會更低，我想，什麼，大約2000萬、2500萬？

Correct.

正確的。

And that doesn't -- our guidance does not assume any benefit from any refinancing that may take place during the year. As we discussed, we're looking at, in the second half of the year at the latest in trying to redo or reprice or refinance the term loan. So that could provide some additional benefit or upside.

但事實並非如此——我們的指導意見並不假設年內可能發生的任何再融資會帶來任何好處。正如我們所討論的，我們正在考慮最遲在今年下半年嘗試對定期貸款進行重做、重新定價或再融資。因此這可以提供一些額外的好處或好處。

Got it. I guess just last one, and I apologize if I missed this, but regarding the potential sale of larger assets, has anything changed there in terms of interest levels or what you might be able -- the range of values that you could receive? Just curious if -- I know that's been something you've looked at last several quarters, so if there's anything different in terms of the potential sale of those larger assets.

知道了。我想只是最後一個，如果我錯過了這一點，我很抱歉，但是關於潛在的較大資產出售，在利息水平或你可能能夠獲得的價值範圍方面有什麼變化嗎？我只是好奇——我知道這是你們過去幾季關注的事情，所以在這些較大資產的潛在出售方面是否有什麼不同。

No, our larger assets, what we've done is redeploy them through leases, most recently in Oklahoma and then a year or two before that was New Mexico. Partly, it's driven from a state level by their funding issues and their budget issues and their ability to be able to make a large acquisition like that. So, I think it's probably likely that it's more preferable from their perspective to lease than to buy, but we'll continue to look at both if it makes sense.

不，我們更大的資產，我們所做的是透過租賃重新部署它們，最近在俄克拉荷馬州，然後一兩年前在新墨西哥州。部分原因是州一級的資金問題和預算問題以及他們進行此類大規模收購的能力。因此，我認為從他們的角度來看，租賃可能比購買更可取，但如果有意義的話，我們將繼續考慮這兩種情況。

Okay, thanks, guys.

好的，謝謝大家。

Thank you. And, ladies and gentlemen, this concludes our question-and-answer session. I'd like to turn the conference back over to George Zoley for any closing remarks.

謝謝。女士們先生們，我們的問答環節到此結束。我想將會議轉回喬治·佐利（George Zoley）發表閉幕詞。

Thank you for joining us on this call. We look forward to addressing you on the next call.

感謝您參加本次電話會議。我們期待在下次通話中與您聯繫。

Thank you, sir. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

謝謝你，先生。今天的電話會議到此結束。我們感謝大家參加今天的演講。您現在可以斷開線路並度過美好的一天。