Target Hospitality Announces Pecos Children's Center Contract Extension, Reaffirms 2024 Financial Outlook and Enhances Strategic Capabilities
Target Hospitality (NASDAQ: TH) announced the extension of its Pecos Children's Center (PCC) contract, which has been serving the U.S. government's humanitarian aid mission since 2021. The extended contract, effective November 16, 2024, will support a community of up to 6,000 individuals and generate minimum annual lease revenue of approximately $168 million. The company reaffirmed its 2024 financial outlook, excluding potential variable revenue from PCC occupancy. Additionally, Target has engaged Carla L. Provost, former Chief of the U.S. Border Patrol, as a strategic advisor to support government-focused growth initiatives.
Target Hospitality (NASDAQ: TH) ha annunciato l'estensione del suo contratto con il Pecos Children's Center (PCC), che dal 2021 supporta la missione di aiuto umanitario del governo degli Stati Uniti. Il contratto esteso, in vigore dal 16 novembre 2024, sosterrà una comunità di fino a 6.000 persone e genererà un'entrata annuale minima da locazione di circa $168 milioni. L'azienda ha confermato le sue prospettive finanziarie per il 2024, escludendo potenziali ricavi variabili derivanti dall'occupazione del PCC. Inoltre, Target ha ingaggiato Carla L. Provost, ex capo della pattuglia di confine degli Stati Uniti, come consulente strategico per supportare le iniziative di crescita focalizzate sul governo.
Target Hospitality (NASDAQ: TH) anunció la extensión de su contrato con el Pecos Children's Center (PCC), que ha estado sirviendo a la misión de ayuda humanitaria del gobierno de EE. UU. desde 2021. El contrato extendido, que entrará en vigor el 16 de noviembre de 2024, apoyará a una comunidad de hasta 6,000 personas y generará ingresos mínimos anuales por arrendamiento de aproximadamente $168 millones. La compañía reafirmó su perspectiva financiera para 2024, excluyendo posibles ingresos variables por ocupación del PCC. Además, Target ha contratado a Carla L. Provost, ex jefa de la Patrulla Fronteriza de EE. UU., como asesora estratégica para apoyar iniciativas de crecimiento centradas en el gobierno.
타겟 호스피탤리티 (NASDAQ: TH)는 페코스 아동 센터 (PCC) 계약의 연장을 발표했습니다. PCC는 2021년부터 미국 정부의 인도적 지원 임무를 수행해왔습니다. 연장된 계약은 2024년 11월 16일부터 발효되며, 최대 6,000명의 커뮤니티를 지원하고 연간 최소 약 $168백만의 임대 수익을 창출할 것입니다. 이 회사는 PCC 점유율로 인한 변동 수익을 제외하고 2024년 재정 전망을 재확인했습니다. 또한, 타겟은 미국 국경순찰대 전 책임자인 카를라 L. 프로보스트를 정부 중심 성장 전략 자문으로 영입했습니다.
Target Hospitality (NASDAQ: TH) a annoncé l'extension de son contrat avec le Pecos Children's Center (PCC), qui soutient depuis 2021 la mission d'aide humanitaire du gouvernement américain. Le contrat prolongé, qui entrera en vigueur le 16 novembre 2024, soutiendra une communauté allant jusqu'à 6 000 personnes et générera des revenus locatifs annuels minimum d'environ 168 millions de dollars. L'entreprise a réaffirmé ses prévisions financières pour 2024, excluant les revenus variables potentiels liés au taux d'occupation du PCC. De plus, Target a engagé Carla L. Provost, ancienne responsable des frontières des États-Unis, en tant que conseillère stratégique pour soutenir les initiatives de croissance axées sur le gouvernement.
Target Hospitality (NASDAQ: TH) gab die Verlängerung seines Vertrags mit dem Pecos Children's Center (PCC) bekannt, das seit 2021 die humanitäre Hilfsmission der US-Regierung unterstützt. Der verlängerte Vertrag, der am 16. November 2024 in Kraft tritt, wird eine Gemeinschaft von bis zu 6.000 Personen unterstützen und ein minimales jährliches Mietzahlein von etwa $168 Millionen generieren. Das Unternehmen bestätigte seine finanziellen Aussichten für 2024, ohne potenzielle variable Einnahmen aus der Belegung des PCC. Darüber hinaus hat Target Carla L. Provost, die ehemalige Chefin der US-Grenzschutzbehörde, als strategische Beraterin engagiert, um wachstumsorientierte Initiativen zu unterstützen, die sich auf die Regierung konzentrieren.
- Contract extension secured for Pecos Children's Center with $168 million minimum annual lease revenue
- Potential for additional revenue through occupancy-based variable services
- Strong cash generation and optimized balance sheet maintained
- Strategic enhancement through engagement of former Border Patrol Chief as advisor
- Variable revenue from PCC occupancy excluded from 2024 outlook due to population fluctuations
Insights
The contract extension for the Pecos Children's Center represents significant revenue stability with a
The contract's expansion to accommodate up to 6,000 individuals indicates potential upside through variable services revenue, though not included in guidance. Target's strategic enhancement through the addition of former Border Patrol Chief Provost suggests positioning for additional government contract opportunities, which could diversify and expand their revenue streams.
The extension of the PCC contract into its fifth year demonstrates the critical nature of Target Hospitality's services in supporting domestic humanitarian missions. The facility's expanded capacity and the engagement of former Border Patrol Chief Provost signals a strategic pivot to capture more government contracts.
The company's infrastructure and operational expertise in managing large-scale humanitarian facilities, combined with Provost's extensive border security experience, positions them favorably for upcoming government contract opportunities. This strategic advisor addition could accelerate their penetration into new government service segments beyond current operations.
Since 2021, PCC has served as a cornerstone to the
The PCC contract extension and amendment ("PCC Contract"), effective November 16, 2024, supports a community capable of serving up to 6,000 individuals and will represent annual minimum lease revenue of approximately
Target's contract portfolio, including the PCC Contract, supports a high degree of revenue visibility, strong cash generation and an optimized balance sheet. These strong business fundamentals support the Company's reaffirmed 2024 financial outlook.
In addition, the Company has taken intentional steps to enhance its strategic capabilities as it pursues an expanding pipeline of government services growth opportunities. Specifically, the Company has engaged Carla L. Provost, a former Chief of the United States Border Patrol under the previous Trump administration, to serve as a strategic advisor and government liaison. With over 25 years of service in the
About Target Hospitality
Target Hospitality is one of
Cautionary Statement Regarding Forward Looking Statements
Certain statements made in this press release (including the financial outlook contained herein) are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside our control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: operational, economic, including inflation, political and regulatory risks; our ability to effectively compete in the specialty rental accommodations and hospitality services industry, including growing the HFS – South and Government segments; effective management of our communities; natural disasters and other business distributions including outbreaks of epidemic or pandemic disease; the duration of any future public health crisis, related economic repercussions and the resulting negative impact to global economic demand; the effect of changes in state building codes on marketing our buildings; changes in demand within a number of key industry end-markets and geographic regions; changes in end-market demand requirements including variable occupancy levels associated with subcontracts in the Government segment; our reliance on third party manufacturers and suppliers; failure to retain key personnel; increases in raw material and labor costs; the effect of impairment charges on our operating results; our future operating results fluctuating, failing to match performance or to meet expectations; our exposure to various possible claims and the potential inadequacy of our insurance; unanticipated changes in our tax obligations; our obligations under various laws and regulations; the effect of litigation, judgments, orders, regulatory or customer bankruptcy proceedings on our business; our ability to successfully acquire and integrate new operations; global or local economic and political movements, including any changes in policy under the Trump administration or any future administration; federal government budgeting and appropriations; our ability to effectively manage our credit risk and collect on our accounts receivable; our ability to fulfill Target Hospitality's public company obligations; any failure of our management information systems; our ability to refinance debt on favorable terms and meet our debt service requirements and obligations; and risks related to our outstanding obligations in connection with the Senior Notes. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Contact
Mark Schuck
(832) 702 – 8009
ir@targethospitality.com
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SOURCE Target Hospitality
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