Earnings Per Share

9 Months Ended

Oct. 02, 2011

Earnings Per Share [Abstract]

EARNINGS PER SHARE

5. EARNINGS PER SHARE

Stock repurchase program

On July 14, 2011, the Company announced that its Board of Directors approved a stock repurchase program of up to $100.0 million of our common stock effective through December 31, 2012. The stock repurchase program will be funded primarily with cash on hand, free cash flow, and borrowings under the Company’s Revolving Credit Facility. The stock repurchase program is intended to be implemented through purchases made from time to time in the open market or in privately negotiated transactions, in accordance with applicable securities and stock exchange requirements. The program may also include repurchases from time to time from executive officers or directors of vested restricted stock and/or vested stock options. The stock repurchase program does not obligate the Company to purchase any specific amount of its common stock and may be suspended or extended at any time at the Company’s discretion. During the thirteen weeks ended October 2, 2011, the Company purchased 2.5 million shares of its common stock at a cost of $50.0 million primarily purchased with proceeds from the Company’s Revolving Credit Facility. The Company believes it has the ability to continue to fund the stock repurchase program, its working capital, its debt service requirements, and its maintenance and growth capital expenditure requirements, while maintaining sufficient liquidity for other corporate purposes.

Earnings per share

Basic earnings per share is computed by dividing the net income attributable to The GEO Group, Inc. shareholders by the weighted average number of outstanding shares of common stock. The calculation of diluted earnings per share is similar to that of basic earnings per share, except that the denominator includes dilutive common stock equivalents such as stock options and shares of restricted stock. Basic and diluted earnings per share (“EPS”) were calculated for the thirteen and thirty-nine weeks ended October 2, 2011 and October 3, 2010 as follows (in thousands, except per share data):

	Thirteen Weeks Ended				Thirty-nine Weeks Ended
	October 2, 2011		October 3, 2010		October 2, 2011		October 3, 2010
Net income	$	21,293	$	5,010	$	58,836	$	39,743
Net loss attributable to noncontrolling interests		225		271		1,050		227
Income attributable to The GEO Group, Inc.	$	21,518	$	5,281	$	59,886	$	39,970
Basic earnings per share attributable to The GEO Group, Inc.:
Weighted average shares outstanding		63,340		57,799		64,028		52,428
Per share amount	$	0.34	$	0.09	$	0.94	$	0.76
Diluted earnings per share attributable to The GEO Group, Inc.:
Weighted average shares outstanding		63,340		57,799		64,028		52,428
Effect of dilutive securities: Stock options and restricted stock		215		399		360		616
Weighted average shares assuming dilution		63,555		58,198		64,388		53,044
Per share amount	$	0.34	$	0.09	$	0.93	$	0.75

Thirteen Weeks

For the thirteen weeks ended October 2, 2011, 123,738 weighted average shares of stock underlying options were excluded from the computation of diluted EPS because the effect would be anti-dilutive. 106 shares of restricted stock were anti-dilutive.

For the thirteen weeks ended October 3, 2010, 23,807 weighted average shares of stock underlying options were excluded from the computation of diluted EPS because the effect would be anti-dilutive. No shares of restricted stock were anti-dilutive.

Thirty-nine Weeks

For the thirty-nine weeks ended October 2, 2011, 79,466 weighted average shares of stock underlying options were excluded from the computation of diluted EPS because the effect would be anti-dilutive. No shares of restricted stock were anti-dilutive.

For the thirty-nine weeks ended October 3, 2010, 21,655 weighted average shares of stock underlying options were excluded from the computation of diluted EPS because the effect would be anti-dilutive. No shares of restricted stock were anti-dilutive.