Target Hospitality Issues Business Update, Announces Pecos Children’s Center Contract Extension

Target Hospitality Corp. (NASDAQ: TH) has recently disclosed a business update in an 8-K filing on November 18, 2024. The company, known as one of North America’s significant providers of vertically integrated modular accommodations and value-added hospitality services, confirmed the extension and amendment of its Pecos Children’s Center (“PCC”) contract. Target Hospitality has overwhelmingly reaffirmed its previously announced 2024 financial outlook while showcasing enhanced strategic capabilities.

The PCC contract, which has been a pivotal component of the U.S. government’s essential domestic humanitarian aid program since 2021, has been extended seamlessly. This marks the fifth consecutive year of operations, underlining the crucial role this community plays in supporting humanitarian efforts.

Effective as of November 16, 2024, the extended and amended PCC Contract supports a community able to accommodate up to 6,000 individuals and is anticipated to bring in an annual minimum lease revenue of around $168 million. While the contract allows for additional revenue based on community population fluctuations, Target Hospitality has chosen to exclude any incremental variable revenue from its 2024 financial outlook due to the dynamic nature of the population changes within the community.

The company’s contract portfolio, including the PCC Contract, provides a high level of revenue predictability, strong cash flow, and a well-structured balance sheet. These factors contribute to the reaffirmation of Target Hospitality’s 2024 financial outlook.

Moreover, in a strategic move to expand its government services growth opportunities, Target Hospitality has engaged Carla L. Provost, the former Chief of the United States Border Patrol under the previous administration, to serve as a strategic advisor and government liaison. With over 25 years of service in the U.S. Border Patrol, Ms. Provost is expected to offer valuable insights as the company explores multiple strategic growth initiatives focusing on government services.

Target Hospitality, renowned for its vertically integrated modular accommodations and range of hospitality solutions, continues to emphasize customization, quality service offerings, and strategic partnerships within the industry. The company remains committed to delivering value-added solutions, including food services, logistics, security, and recreational facilities services.

Cautionary Statement Regarding Forward-Looking Statements: The company has advised caution with respect to forward-looking statements included in the press release, emphasizing that actual results could vary due to multiple known and unknown risks, uncertainties, and factors beyond the company’s control.

Investor Contact:
Mark Schuck
(832) 702-8009
ir@targethospitality.com

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Target Hospitality’s 8K filing here.

Target Hospitality Company Profile

Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through two segments, Hospitality & Facilities Services – South and Government. It owns a network of specialty rental accommodation units. In addition, the company provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation facilities, workforce community management, concierge, and laundry services.