Jordan Neil Hymowitz
Analyst, Philadelphia Financial Management of San Francisco LLC
Okay. And on to the several cases [indiscernible] (52:16) therere several cases in Florida before the appellate judge that would indicate that if
it would be if the judge would rule in line with the preliminary circle rule, that would be more people being monitored and processed. Do you know what the timing of any of those cases are?
George Christopher Zoley
Executive Chairman, The GEO
Group, Inc.
No, I really dont, because I presume all of them are subject to appeal and that can be a very lengthy process.
Jordan Neil Hymowitz
Analyst, Philadelphia Financial
Management of San Francisco LLC
Okay. And final question is whether we go from 34 to 40 or somewhere between, at one point, that number was 50. And as we
head towards the Presidential election, the Republicans are going to obviously start talking about numbers like 50 again [ph] what they were (53:12) before.
And I guess my question is two-fold. One is, once you hit those minimums, anything above 30 to 33, the incremental
profit has to be double, because its not substitute to minimum, is that true? And B, if we would go from a number like 30 to 50, would there be a profitability that would be more than double on the prison side of the business, because the
incremental margins are that much more profitable?
Brian Robert Evans
Chief Financial Officer & Senior Vice President, The GEO Group, Inc.
Well, it certainly will be more profitable. Its difficult to calculate because it differs from facility to facility. We havent done a cumulative
aggregate calculation of that number, but its significant, because we have thousands of additional available beds. And each of those beds is worth between its a double-digit number.
Jordan Neil Hymowitz
Analyst, Philadelphia Financial
Management of San Francisco LLC
So the peer number of B has said the incremental profitability could be close to double, would yours be anything different
from that once you get above the minimums?
Brian Robert Evans
Chief Financial Officer & Senior Vice President, The GEO Group, Inc.
No, I dont think our if Im understanding your question correctly, youre saying that as the occupancy increases to something above our
minimum guarantees that the profitability of the company in the ICE business would double or not. Thats not accurate. Thats our contract [indiscernible] (54:54) guarantees to absorb a significant amount of the cost, as well as the return
and there is, as George mentioned, incremental revenue. It is material, and it would benefit the bottom line, but its not going to double our profitability.
Jordan Neil Hymowitz
Analyst, Philadelphia Financial
Management of San Francisco LLC
No, no, no. The incremental 1,000 people above the minimum in other words, if you go from 9,000 to 10,000 versus,
say, 13,000 to 14,000, once you get above those minimums, the incremental profit is dramatically greater.
Brian Robert Evans
Chief Financial Officer & Senior Vice President, The GEO Group, Inc.
Yeah. And like George said, not necessarily depends on how the contract is priced and what those incremental per-diems
are, but it is meaningful.
Jordan Neil Hymowitz
Analyst, Philadelphia Financial Management of San Francisco LLC
Okay. Thank you. And when can you stop buying back the debt, would you say?
Brian Robert Evans
Chief Financial Officer &
Senior Vice President, The GEO Group, Inc.
Well, were going to make additional paydowns on debt in the third quarter.