CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)



	For the Three Months Ended September 30, 2018
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	208,607		$	479,175		$	65,028		$	(169,280	)	$	583,530
Operating expenses	171,038			379,892			53,156			(169,280		)	434,806
Depreciation and amortization	6,742			23,621			934			—			31,297
General and administrative expenses	16,878			25,568			5,201			—			47,647
Operating income	13,949			50,094			5,737			—			69,780
Interest income	3,415			1,159			8,660			(4,806		)	8,428
Interest expense	(20,765		)	(13,714		)	(8,318		)	4,806			(37,991		)
Income (loss) before income taxes and equity in earnings of affiliates	(3,401		)	37,539			6,079			—			40,217
Income tax provision	162			2,446			1,115			—			3,723
Equity in earnings of affiliates, net of income tax provision	—			—			2,735			—			2,735
Income (loss) before equity in income of consolidated subsidiaries	(3,563		)	35,093			7,699			—			39,229
Income from consolidated subsidiaries, net of income tax provision	42,792			—			—			(42,792		)	—
Net income	39,229			35,093			7,699			(42,792		)	39,229
Net loss attributable to noncontrolling interests	—			—			60			—			60
Net income attributable to The GEO Group, Inc.	$	39,229		$	35,093		$	7,759		$	(42,792	)	$	39,289

Net income	$	39,229		$	35,093		$	7,699		$	(42,792	)	$	39,229
Other comprehensive income (loss), net of tax	—			(761		)	205			—			(556		)
Total comprehensive income	$	39,229		$	34,332		$	7,904		$	(42,792	)	$	38,673
Comprehensive loss attributable to noncontrolling interests	—			—			72			—			72
Comprehensive income attributable to The GEO Group, Inc.	$	39,229		$	34,332		$	7,976		$	(42,792	)	$	38,745

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)



	For the Three Months Ended September 30, 2017
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	171,553		$	464,140		$	69,698		$	(138,632	)	$	566,759
Operating expenses	139,165			364,834			57,767			(138,632		)	423,134
Depreciation and amortization	6,104			24,623			922			—			31,649
General and administrative expenses	14,699			28,066			6,309			—			49,074
Operating income	11,585			46,617			4,700			—			62,902
Interest income	2,688			1,629			14,871			(4,540		)	14,648
Interest expense	(18,148		)	(13,093		)	(12,018		)	4,540			(38,719		)
Income before income taxes and equity in earnings of affiliates	(3,875		)	35,153			7,553			—			38,831
Income tax provision	147			811			762			—			1,720
Equity in earnings of affiliates, net of income tax provision	—			—			1,342			—			1,342
Income (loss) before equity in income of consolidated subsidiaries	(4,022		)	34,342			8,133			—			38,453
Income from consolidated subsidiaries, net of income tax provision	42,475			—			—			(42,475		)	—
Net income	38,453			34,342			8,133			(42,475		)	38,453
Net loss attributable to noncontrolling interests	—			—			36			—			36
Net income attributable to The GEO Group, Inc.	$	38,453		$	34,342		$	8,169		$	(42,475	)	$	38,489

Net income	$	38,453		$	34,342		$	8,133		$	(42,475	)	$	38,453
Other comprehensive income, net of tax	—			64			1,561			—			1,625
Total comprehensive income	$	38,453		$	34,406		$	9,694		$	(42,475	)	$	40,078
Comprehensive loss attributable to noncontrolling interests	—			—			34			—			34
Comprehensive income attributable to The GEO Group, Inc.	$	38,453		$	34,406		$	9,728		$	(42,475	)	$	40,112

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)



	For the Nine Months Ended September 30, 2018
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	606,424		$	1,412,868		$	201,090		$	(488,426	)	$	1,731,956
Operating expenses	483,982			1,138,897			164,859			(488,426		)	1,299,312
Depreciation and amortization	19,766			71,759			3,011			—			94,536
General and administrative expenses	47,499			73,753			15,675			—			136,927
Operating income	55,177			128,459			17,545			—			201,181
Interest income	10,998			4,023			26,951			(15,778		)	26,194
Interest expense	(59,034		)	(42,133		)	(25,390		)	15,778			(110,779		)
Income before income taxes and equity in earnings of affiliates	7,141			90,349			19,106			—			116,596
Income tax provision	1,055			6,188			4,950			—			12,193
Equity in earnings of affiliates, net of income tax provision	—			—			7,071			—			7,071
Income before equity in income of consolidated subsidiaries	6,086			84,161			21,227			—			111,474
Income from consolidated subsidiaries, net of income tax provision	105,388			—			—			(105,388		)	—
Net income	111,474			84,161			21,227			(105,388		)	111,474
Net loss attributable to noncontrolling interests	—			—			223			—			223
Net income attributable to The GEO Group, Inc.	$	111,474		$	84,161		$	21,450		$	(105,388	)	$	111,697

Net income	$	111,474		$	84,161		$	21,227		$	(105,388	)	$	111,474
Other comprehensive income (loss), net of tax	—			(31		)	(1,332		)	—			(1,363		)
Total comprehensive income	$	111,474		$	84,130		$	19,895		$	(105,388	)	$	110,111
Comprehensive loss attributable to noncontrolling interests	—			—			247			—			247
Comprehensive income attributable to The GEO Group, Inc.	$	111,474		$	84,130		$	20,142		$	(105,388	)	$	110,358

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)



	For the Nine Months Ended September 30, 2017
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	520,986		$	1,342,620		$	250,618		$	(419,781	)	$	1,694,443
Operating expenses	406,576			1,076,232			213,259			(419,781		)	1,276,286
Depreciation and amortization	18,319			71,404			2,741			—			92,464
General and administrative expenses	43,939			78,479			21,448			—			143,866
Operating income	52,152			116,505			13,170			—			181,827
Interest income	12,793			2,858			39,175			(15,855		)	38,971
Interest expense	(51,391		)	(41,353		)	(32,813		)	15,855			(109,702		)
Income before income taxes and equity in earnings of affiliates	13,554			78,010			19,532			—			111,096
Income tax provision	441			3,058			2,091			—			5,590
Equity in earnings of affiliates, net of income tax provision	—			—			4,255			—			4,255
Income before equity in income of consolidated subsidiaries	13,113			74,952			21,696			—			109,761
Income from consolidated subsidiaries, net of income tax provision	96,648			—			—			(96,648		)	—
Net income	$	109,761		$	74,952		$	21,696		$	(96,648	)	$	109,761
Net loss attributable to noncontrolling interests	—			—			123			—			123
Net income attributable to The GEO Group, Inc.	$	109,761		$	74,952		$	21,819		$	(96,648	)	$	109,884

Net income	$	109,761		$	74,952		$	21,696		$	(96,648	)	$	109,761
Other comprehensive income, net of tax	—			175			4,586			—			4,761
Total comprehensive income	$	109,761		$	75,127		$	26,282		$	(96,648	)	$	114,522
Comprehensive loss attributable to noncontrolling interests	—			—			119			—			119
Comprehensive income attributable to The GEO Group, Inc.	$	109,761		$	75,127		$	26,401		$	(96,648	)	$	114,641

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

(unaudited)



	As of September 30, 2018
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated

ASSETS
Cash and cash equivalents	$	9,193	$	18,059	$	38,755		$	—		$	66,007
Restricted cash and cash equivalents	5,652		—		49,279			—			54,931
Accounts receivable, less allowance for doubtful accounts	178,579		187,231		33,695			4,105			403,610
Contract receivable, current portion	—		—		9,420			—			9,420
Prepaid expenses and other current assets	2,153		26,183		11,037			(1,786		)	37,587
Total current assets	195,577		231,473		142,186			2,319			571,555
Restricted Cash and Investments	—		23,476		5,463			—			28,939
Property and Equipment, Net	843,558		1,217,597		86,850			—			2,148,005
Non-Current Contract Receivable	—		—		384,794			—			384,794
Assets Held for Sale	705		1,929		—			—			2,634
Intercompany Receivable	980,555		126,525		24,460			(1,131,540		)	—
Non-Current Deferred Income Tax Assets	863		23,913		1,501			—			26,277
Goodwill	—		775,955		413			—			776,368
Intangible Assets, Net	—		237,345		602			—			237,947
Investment in Subsidiaries	1,516,564		458,229		2,190			(1,976,983		)	—
Other Non-Current Assets	8,711		115,759		20,245			(78,895		)	65,820
Total Assets	$	3,546,533	$	3,212,201	$	668,704		$	(3,185,099	)	$	4,242,339

LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	11,967	$	64,568	$	5,749		$	—		$	82,284
Accrued payroll and related taxes	—		33,424		20,173			—			53,597
Accrued expenses and other current liabilities	43,371		121,258		30,511			2,319			197,459
Current portion of capital lease obligations, long-term debt and non-recourse debt	8,000		1,998		330,145			—			340,143
Total current liabilities	63,338		221,248		386,578			2,319			673,483
Non-Current Deferred Income Tax Liabilities	—		—		8,757			—			8,757
Intercompany Payable	118,478		979,528		33,534			(1,131,540		)	—
Other Non-Current Liabilities	1,337		157,333		9,439			(78,895		)	89,214
Capital Lease Obligations	—		4,954		—			—			4,954
Long-Term Debt	2,282,399		—		80,919			—			2,363,318
Non-Recourse Debt	—		—		22,201			—			22,201
Commitments & Contingencies and Other
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,080,981		1,849,138		127,845			(1,976,983		)	1,080,981
Noncontrolling Interests	—		—		(569		)	—			(569		)
Total Shareholders’ Equity	1,080,981		1,849,138		127,276			(1,976,983		)	1,080,412
Total Liabilities and Shareholders' Equity	$	3,546,533	$	3,212,201	$	668,704		$	(3,185,099	)	$	4,242,339

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)



	As of December 31, 2017
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated

ASSETS
Cash and cash equivalents	$	54,666	$	—	$	26,711		$	—		$	81,377
Restricted cash and cash equivalents	—		—		44,932			—			44,932
Accounts receivable, less allowance for doubtful accounts	130,354		225,029		34,533			—			389,916
Contract receivable, current portion	—		—		18,142			—			18,142
Prepaid expenses and other current assets	2,589		24,163		18,590			—			45,342
Total current assets	187,609		249,192		142,908			—			579,709
Restricted Cash and Investments	—		25,715		2,284			—			27,999
Property and Equipment, Net	777,404		1,209,816		90,903			—			2,078,123
Assets Held for Sale	—		3,915		—			—			3,915
Non-Current Contract Receivable	—		—		404,309						404,309
Intercompany Receivable	1,130,189		88,534		28,218			(1,246,941		)	—
Non-Current Deferred Income Tax Assets	863		23,913		1,501			—			26,277
Goodwill	—		778,504		447			—			778,951
Intangible Assets, Net	—		254,531		808			—			255,339
Investment in Subsidiaries	1,336,665		456,076		2,190			(1,794,931		)	—
Other Non-Current Assets	11,141		115,330		25,210			(79,395		)	72,286
Total Assets	$	3,443,871	$	3,205,526	$	698,778		$	(3,121,267	)	$	4,226,908

LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	20,643	$	65,475	$	6,469		$	—		$	92,587
Accrued payroll and related taxes	—		51,780		19,952			—			71,732
Accrued expenses and other current liabilities	40,344		115,636		20,344			—			176,324
Current portion of capital lease obligations, long-term debt and non-recourse debt	8,000		1,870		19,050			—			28,920
Total current liabilities	68,987		234,761		65,815			—			369,563
Non-Current Deferred Income Tax Liabilities	—		—		8,757			—			8,757
Intercompany Payable	79,984		1,129,590		37,367			(1,246,941		)	—
Other Non-Current Liabilities	4,674		157,200		14,223			(79,395		)	96,702
Capital Lease Obligations	—		6,059		—			—			6,059
Long-Term Debt	2,090,985		—		90,559			—			2,181,544
Non-Recourse Debt	—		—		365,364			—			365,364
Commitments & Contingencies and Other
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,199,241		1,677,916		117,015			(1,794,931		)	1,199,241
Noncontrolling Interests	—		—		(322		)	—			(322		)
Total Shareholders’ Equity	1,199,241		1,677,916		116,693			(1,794,931		)	1,198,919
Total Liabilities and Shareholders' Equity	$	3,443,871	$	3,205,526	$	698,778		$	(3,121,267	)	$	4,226,908

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(dollars in thousands)

(unaudited)



	For the Nine Months Ended September 30, 2018
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by operating activities	$	112,599		$	70,040		$	37,584		$	220,223
Cash Flow from Investing Activities:
Insurance proceeds - damaged property	—			5,998			—			5,998
Proceeds from sale of property and equipment	—			—			2,061			2,061
Proceeds from sale of assets held for sale	—			3,797			—			3,797
Change in restricted investments	—			(2,413		)	—			(2,413		)
Capital expenditures	(95,461		)	(64,015		)	(2,014		)	(161,490		)
Net cash (used in) provided by investing activities	(95,461		)	(56,633		)	47			(152,047		)
Cash Flow from Financing Activities:
Proceeds from long-term debt	372,000			—			—			372,000
Payments on long-term debt	(183,000		)	—			(3,033		)	(186,033		)
Payments on non-recourse debt	—			—			(9,636		)	(9,636		)
Taxes paid related to net share settlements of equity awards	(4,452		)	—			—			(4,452		)
Proceeds from issuance of common stock in connection with ESPP	404			—			—			404
Payment for repurchases of common stock	(70,446		)	—			—			(70,446		)
Debt issuance costs	(990		)	—			—			(990		)
Proceeds from stock options exercised	1,781			—			—			1,781
Dividends paid	(172,256		)	—			—			(172,256		)
Net cash used in financing activities	(56,959		)	—			(12,669		)	(69,628		)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents	—			—			(5,392		)	(5,392		)
Net (Decrease) Increase in Cash. Cash Equivalents and Restricted Cash and Cash Equivalents	(39,821		)	13,407			19,570			(6,844		)
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period	54,666			4,952			73,927			133,545
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, end of period	$	14,845		$	18,359		$	93,497		$	126,701

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(dollars in thousands)

(unaudited)



	For the Nine Months Ended September 30, 2017
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by (used in) operating activities	$	15,303		$	79,088		$	(36,486	)	$	57,905
Cash Flow from Investing Activities:
Acquisition of CEC, net of cash acquired	(353,555		)	—			—			(353,555		)
Proceeds from sale of property and equipment	845			—			11			856
Insurance proceeds - damaged property	86			—			—			86
Change in restricted investments	—			(3,810		)	—			(3,810		)
Capital expenditures	(34,679		)	(61,432		)	(8,019		)	(104,130		)
Cash used in by investing activities	(387,303		)	(65,242		)	(8,008		)	(460,553		)
Net cash used in investing activities
Cash Flow from Financing Activities:
Proceeds from long-term debt	1,324,865			—			—			1,324,865
Payments on long-term debt	(1,093,088		)	—			—			(1,093,088		)
Payments on non-recourse debt	—			—			(68,887		)	(68,887		)
Proceeds from non-recourse debt	—			—			123,785			123,785
Taxes paid related to net share settlements of equity awards	(4,122		)	—			—			(4,122		)
Issuance of common stock under prospectus supplement	275,867			—			—			275,867
Proceeds from issuance of common stock in connection with ESPP	—			—			382			382
Debt issuance costs	(8,701		)	—			(769		)	(9,470		)
Proceeds from stock options exercised	6,786			—			—			6,786
Dividends paid	(169,152		)	—			—			(169,152		)
Net cash provided by financing activities	332,455			—			54,511			386,966
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents	—			—			863			863
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash and Cash Equivalents	(39,545		)	13,846			10,880			(14,819		)
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period	45,736			4,922			39,699			90,357
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, end of period	$	6,191		$	18,768		$	50,579		$	75,538