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
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