THE GEO GROUP, INC. (NYSE:GEO) Files An 8-K Results of Operations and Financial Condition

Item2.02

On February22, 2017, The GEO Group, Inc. (GEO) issued a press
release (the Earnings Press Release) announcing its financial
results for the fourth quarter and year ended December31, 2016,
and issuing financial guidance for the full year and first
quarter 2017. A copy of the Earnings Press Release is furnished
hereto as Exhibit 99.1. GEO also held a conference call on
February22, 2017 to discuss these matters, a transcript of which
is furnished hereto as Exhibit 99.2.

In the Earnings Press Release, GEO provided Net Operating Income,
EBITDA, Adjusted EBITDA, Funds From Operations, Normalized Funds
From Operations, Adjusted Funds From Operations, and Adjusted Net
Income for the fourth quarter and year ended December31, 2016 and
the comparable prior-year periods that were not calculated in
accordance with Generally Accepted Accounting Principles (the
Non-GAAP
Information) and are presented as supplemental disclosures.
Generally, for purposes of Regulation G under the Securities
Exchange Act of 1934, Non-GAAP Information is any numerical
measure of a companys performance, financial position, or cash
flows that either excludes or includes amounts that are not
normally excluded or included in the most directly comparable
measure calculated and presented in accordance with GAAP. The
Earnings Press Release presents the financial measure calculated
and presented in accordance with GAAP, which is the most directly
comparable to the Non-GAAP Information, with a prominence equal
to or greater than its presentation of the Non-GAAP Information.
The Earnings Press Release also contains a reconciliation of the
Non-GAAP Information to the financial measure calculated and
presented in accordance with GAAP which is the most directly
comparable to the Non-GAAP Information.

Net Operating
Income is defined as revenues less operating expenses, excluding
depreciation and amortization expense, general and administrative
expenses, real estate related operating lease expense, and
start-up expenses, pre-tax. Net Operating Income is calculated as
net income attributable to GEO adjusted by subtracting net loss
attributable to non-controlling interests, equity in earnings of
affiliates, net of income tax provision, and by adding income tax
(benefit) provision, interest expense, net of interest income,
loss on extinguishment of debt, depreciation and amortization
expense, general and administrative expenses, real estate related
operating lease expense, and start-up expenses, pre-tax.

EBITDA is defined
as Net Operating Income adjusted by subtracting general and
administrative expenses, real estate related operating lease
expense, and start-up expenses, pre-tax, and by adding equity in
earnings of affiliates, pre-tax. Adjusted EBITDA is defined as
EBITDA adjusted for net loss/income attributable to
non-controlling interests, stock-based compensation expenses,
pre-tax, and
certain other adjustments as defined from time to time, including
for the periods presented MA related expenses, pre-tax, start-up
expenses, pre-tax and gain on sale of real estate assets,
pre-tax. Given the nature of GEOs business as a real estate owner
and operator, GEO believes that EBITDA and Adjusted EBITDA are
helpful to investors as measures of its operational performance
because they provide an indication of GEOs ability to incur and
service debt, to satisfy general operating expenses, to make
capital expenditures and to fund other cash needs or reinvest
cash into GEOs business. GEO believes that by removing the impact
of its asset base (primarily depreciation and amortization) and
excluding certain non-cash charges, amounts
spent on interest and taxes, and certain other charges that are
highly variable from year to year, EBITDA and Adjusted EBITDA
provide GEOs investors with performance measures that reflect the
impact to operations from trends in occupancy rates, per diem
rates and operating costs,