Jose Gordo: No, it wouldn’t, would not require an RFP process.
Jordan Sherman: Any idea on timing for any of them or is that all uncertain at the moment?
Jose Gordo: It’s all uncertain at this time.
Jordan Sherman: All right. Great. Thank you very much.
Jose Gordo: Good try.
Operator: Our next question will come from Josh Joseph with Black Diamond. You may now go ahead.
Josh Joseph: Hi, my questions have been answered related to the ISAP participants. Thanks.
Jose Gordo: Thank you.
Operator: Our next question will come from Jordan Hymowitz with Philadelphia Financial. You may now go ahead.
Jordan Hymowitz: Hey, guys. Thanks for taking my questions. If you guys could turn to Page 4 of the presentation. You got electronic monitoring and supervision for NOI going from 45 million €“ 85 million year-over-year from 25% to 45%. Can you say what those percentages are for dollars or EBITDA versus net operating income?
Jose Gordo: Brian?
Brian Evans: No, I mean, we disclose what I think, you know, ties into our segment reporting in our 10K. But we’re not getting into specific EBITDA by division or margins by division.
Jordan Hymowitz: Are the trends similar? Is it roughly half of EBITDA, or wouldn’t it be more because the CapEx or the interest expense and EBITDA would probably be less. Yes, no, maybe.
Brian Evans: The interest expense isn’t tied to any particular division.
Jordan Hymowitz: Okay, but you wouldn’t need to borrow money for the electronic monitoring division because it’s not a capital intensive business.
Brian Evans: Right, were not borrowing money for either the electronic monitoring division or the Secure Services divisions at this time. There’s €“ we’re €“ both divisions are significantly cash flow positive from an operating cash flow perspective. And there’s no significant growth CapEx required by the Secure Services division at this time. So, in our earnings released, we put out our guidance for CapEx for next year, I think between $77 million and $88 million with about $45 million or so related to maintenance CapEx and discretionary CapEx associated with our facilities, and then the other $32 million to $40 million or so related to our ISAP or — sorry, our Electronic Monitoring division.
Jordan Hymowitz: Let me try to point on page three, you’ve got EBITDA guidance of $500 million to $540 million. Could you say roughly how much is related to each division? Is it half and half roughly, or — obviously Electronic Monitoring has been growing much faster?
Brian Evans: No, we haven’t done that. I think part of the issue there is that after overheads and stuff, and we’re not allocating and going through that scenario. So, each division, if you just took their NOI as a percentage, that total would be significant. So, we don’t do that. We provide the NOI or the operating income as required in our 10-K for our segments.
Jordan Hymowitz: Okay. And last thing, I mean, the surges of whatever happened, there’s people — the Title 42 would go away, and then it did. And now all of a sudden, your guidance assumes it’s not going away. But the Biden has said there’s infinite wisdom, that pandemic ends on May 11th. How can we justify a policy based on a pandemic that no longer exists? Would there have to be a surge of some sorts of magnitude we could debate? And by not assuming any surge at all, aren’t the numbers pretty ridiculously conservative?
George Zoley: No, we think they’re conservative, but not ridiculously so.
Brian Evans: Yes, I think we gave the reasons that George discuss both recent policy direction, budget pressures, and so forth to give a reasonable lower end of the range. As I said, we’ve had a 10% increase in our occupancy in our ICE facilities over the last several weeks now. Do we make that policy decision? No, we just receive the individuals and tend to their care. So, we are not in the loop as to policy decisions regarding ICE detention or the ICE alternatives to detention program called ISAP.
Jordan Hymowitz: Okay. Thank you.
Operator: Our next question will come from Judd Arnold with Lake Cornelia. You may now go ahead.
Judd Arnold: Hey, guys. Thanks for the — thanks for taking the time. Just from 290, I wanted to clarify what’s in that 290? Are you referencing the 128 BI report that ICE reports and are you just using the GPS plus the SmartLINK? Are you doing a different number?
Brian Evans: The 290 includes all the participants in the program that are either using some form of technology, or in the active case management part of the program. So, the 128 number I’m not sure if that’s the current number, but that’s some of the participants that are using the SmartLINK, or the BI provided phone device that includes the SmartLINK application on it. So it’s a subject of the 290, if you will.
Judd Arnold: Got it. So like when I looked at the 128 number, it was three in that ICE disclose, there’s 324,500, split between about 6,000 in GPS, 280,000 SmartLINK, 15,000 phone and 24,000 no-tech, I should exclude the no-tech for an apples-to-apples on your number?
Brian Evans: Yeah. We don’t include the no-tech because there’s not really any revenue associated with the no-tech participants. They just kind of come into it and they’re out. We’re not providing any sort of €“ associate with them, case management or €“
Judd Arnold: Got it. Got it. Okay. And then are you referencing it today number or 128 number?
