Target Hospitality Corp. has announced the extension and amendment of its Pecos Children's Center (PCC) contract, as well as the reaffirmation of its 2024 financial outlook and the enhancement of its strategic capabilities.
The PCC contract extension, effective November 16, 2024, will bring in annual minimum lease revenue of approximately $168 million and support a community capable of serving up to 6,000 individuals. Additionally, the contract provides for additional occupancy-based variable services revenue, although this variable revenue is excluded from the company's 2024 financial outlook due to dynamic fluctuations in community population.
The company's contract portfolio, including the PCC contract, provides a high degree of revenue visibility, strong cash generation, and an optimized balance sheet, supporting the reaffirmed 2024 financial outlook.
In a move to enhance its strategic capabilities, the company has engaged Carla L. Provost, a former chief of the United States Border Patrol, to serve as a strategic advisor and government liaison. With over 25 years of service in the U.S. Border Patrol, the company believes Ms. Provost's knowledge and experience will provide valuable insight as Target Hospitality actively evaluates multiple government-focused strategic growth initiatives.
Target Hospitality Corp. is one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services in the United States, offering a range of end-user solutions including premium food service management, concierge, laundry, logistics, security, and recreational facilities services. Today the company's shares have moved 0.2% to a price of $9.09. If you want to know more, read the company's complete 8-K report here.
