Every investment and trading move involves risk – this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision. Discounted offers are only available to new members. I would like to turn the conference hvconline back over to George Zoley, executive chairman for the GEO Group for closing remarks. The next question comes from Kirk Ludtke with Imperial Capital. I think just some maybe lower labor costs compared to year-over-year professional fees, especially in the legal department, legal fees.
In this case, the funding rate is adjusted to incentivise selling or closing long positions. Traders holding long positions on perpetual contracts have to pay a funding fee to traders holding short positions. The funding fee is generally a small percentage of the position size, calculated at regular intervals, such as every eight hours.
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Finally, with respect to our international markets, we have begun delivering primary health services across 13 public prisons in Australia under our new healthcare contract with the state of Victoria. This new contract commenced on July 1 and is expected to generate approximately $33 million in annualized revenues. At this time, I will turn the call over to Wayne Calabrese for a review of GEO Care. We are continuing to monitor the congressional appropriations process and remain focused on providing high-quality services on behalf of DHS and ICE. We are also continuing our efforts to market our current idle facilities to federal and state government agencies.
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Our ICE processing centers also offer access to quality recreational activities. As we execute this strategy, we hope to reduce our interest expense and gain more flexibility under our credit agreement to explore options to return capital to our shareholders in the future. At this time, I will turn the call over to James Black for a review of our GEO Secure Services segment.
- We have made significant investments to provide enhanced amenities at our centers, including artificial turf soccer fields, covered pavilions, exercise equipment, and multipurpose rooms.
- We provide data, software, services, and research to government agencies, exchanges, financial institutions, and insurance and cybersecurity companies in over 60 countries.
- Is there any sort of incremental investments needed?
- Our goal continues to be to reduce our overall quantum of debt, decrease our net leverage as quickly as possible, and refinance portions of our debt potentially in the next 12 to 18 months.
- Our guidance assumes steady performance from our other segments without any meaningful change in occupancy rates at our ICE processing centers which currently remain below historical levels.
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What Are Funding Rates?
Just curious what kind of opportunity that could be. So next quarter, as I mentioned in my remarks, we expect a significant reduction in net debt, about $75 million or so. Many of our facilities do have a minimum guarantee, and — but there’s a few select ones that we are below that minimum guarantee, and the continued increase in occupants will materially enhance our financial results. Some facilities, particularly along the southern border, are full. Other facilities located in the coastal or northern states are not as full.
Our goal continues to be to reduce our overall quantum of debt, decrease our net leverage as quickly as possible, and refinance portions of our debt potentially in the next 12 to 18 months. Conversely, if the price of perpetual contracts needs to be adjusted downwards, the funding rate incentivises buying or closing short positions, where short position holders have to pay a funding fee to long position holders. By implementing funding rates in this manner, exchanges aim to narrow the gap between the price of perpetual contracts and the spot price of the asset. We believe our award-winning program provides a proven model on how the 2 million-plus people in the United States criminal justice system can be better served in changing their lives.
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Others away from the border are — still have vacant beds. And then one last one for me, and I’d get back in queue. I’m not quite sure if I heard you mention the net debt level this quarter.
Additionally, GeoCrypto will also act as a cash-to-Monero exchange service. This is somewhat similar to how LocalMonero operates, but it will serve as a nice integration regardless. All of the features provided by GeoCrypto will be made possible by using Vespco marketplace software, ShapeShift integration through the Shifty button, and some additional to-be developed features. All things considered, this is a pretty interesting project which will bring a lot of positive attention to Monero. This marketplace platform will allow for the sales of goods and services all over the world. It is expected there will be some minor restrictions in achieving this, although only time will tell whether or not those restrictions will be put in place in the end.
In addition, the Crypto.com Exchange and the products described herein are distinct from the Crypto.com Main App, and the availability of products and services on the Crypto.com Exchange is subject to jurisdictional limits. Before accessing the Crypto.com Exchange, please refer to the following links and ensure that you are not in any geo-restricted jurisdictions for Spot Trading and Margin Trading. I think it’s fair to say we have several conversations going on regarding different facilities, and it usually comes down to a matter of funding and their budgets. So they have to wait at the federal level, the new federal budget, which starts October 1, at the state level, funding that will probably be approved sometime in spring of next year.
In closing, our diversified business units delivered strong financial and operational performance during the second quarter and the first half of 2023. We remain focused on reducing our overall net debt and are positioning our company to refinance portions of our debt in order to reduce our interest costs and gain the flexibility to potentially return capital to shareholders in the future. For the fourth quarter of 2023, we expect GAAP net income to be between $19 million and $27 million on quarterly revenues of $595 million to $610 million. We expect our fourth quarter 2023 adjusted EBITDA to be in a range of $115 million to $130 million. Our guidance assumes steady performance from our other segments without any meaningful change in occupancy rates at our ICE processing centers which currently remain below historical levels. Our guidance also does not include the potential reactivation of any of our remaining idle secure services facilities, which total approximately 9,000 beds.
Funding payment is a mechanism used in perpetual futures contracts to encourage the perpetual contract’s mark price to align with the underlying index’s price. Well, I’m aware that every department like DHS has the ability to shift funds around within the department to different agencies of that department. And I think — I’m aware through publications of these stories that the — that ICE has asked for more funding for various reasons, including the alternatives to detention programs, which includes primarily the ICE program. We expect our full-year 2023 adjusted EBITDA to be between $490 million and $520 million. We expect our effective tax rate for the full-year 2023 to be approximately 29%, exclusive of any discrete items. For the third quarter of 2023, we expect GAAP net income to be between $19 million and $26 million on quarterly revenues of $588 million to $603 million.
- The ads will be displayed inside the app and received by our community.
- We believe these are very valuable, modern, and well-located access — assets which we are continuing to actively market to government agencies at the state and federal level.
- Any descriptions of Crypto.com products or features are merely for illustrative purposes and do not constitute an endorsement, invitation, or solicitation.
- Understanding funding rates provides valuable insight into trader sentiment and market dynamics.
So by comparison, our facilities are attractive in the correctional physical plant marketplace and will be — now and continue into the future because the Sunbelt states, in particular, have been adding population. Of the 31,000 people that are reportedly detained in facilities at this time, we have almost 11,000 of those individuals in GEO facilities. So we have over one-third of the individuals that are presently being detained are housed in GEO facilities. And presently, the private sector provides approximately 90% of the detention capacity in the country with only approximately 10% share going to cities or counties that have contracts with DHS for the housing of detained individuals. Because of a combination of different policies that — I really don’t want to go into detail then because we’re really not authorized to discuss DHS policies. But we are aware of these policies, and they, in effect, provide for a wider use of the alternatives to detention programs, as well as a shifting of where participants are in that program and what monitoring devices they may be using.