GEO shareholders who made valid elections to receive cash and who were not selected in the lottery as well as GEO shareholders who did not make a valid election will receive approximately 24% of the special dividend in cash, or approximately $1.
Following the special dividend, GEO will have approximately 71.
The total number of shares of common stock to be distributed pursuant to the special dividend will be determined based on shareholder elections and the average opening price per share of GEO common stock on the New York Stock Exchange on the two trading days following December 24, 2012, the date that election forms will be due.
As a REIT, GEO would expect to generate $320 million to $330 million in 2013 Adjusted EBITDA, $215 million to $225 million in 2013 Funds from Operations, $200 million to $210 million in 2013 Adjusted Funds from Operations and $130 million to $140 million in 2013 pre-tax income.
GEO expects to incur an additional $3 million to $5 million in annual compliance expenses going forward.
In order to position itself for REIT eligibility, GEO will reorganize its operations into separate legal wholly-owned operating business units through a taxable REIT subsidiary ("TRS").
GEO expects to take the necessary steps as approved by the Board to be able to operate in compliance with the REIT rules as of January 1, 2013 and does not need to receive a final private letter ruling from the IRS before January 1, 2013 in order to do so.
As a result, in order to achieve and preserve REIT status effective January 1, 2013, GEO is required to divest all health care facility management contracts prior to December 31, 2012.
This press release contains forward-looking statements regarding future events and future performance of GEO
that involve risks and uncertainties that could materially affect actual results, including statements regarding estimated earnings, revenues and costs and our ability to maintain growth and strengthen contract relationships.