Target Hospitality Corp. announced the extension and amendment of its Pecos Children's Center (PCC) contract, effective November 16, 2024. This extension ensures the community's fifth year of continuous operations, underscoring its role in the U.S. government's humanitarian aid mission. The PCC contract is capable of serving up to 6,000 individuals.
The extended PCC Contract is expected to generate annual minimum lease revenue of approximately $168 million. This agreement provides a high degree of revenue visibility and supports strong cash generation for the company. Target Hospitality also reaffirmed its previously announced 2024 financial outlook, which excludes any incremental PCC variable revenue due to population fluctuations.
In a move to enhance its strategic capabilities, Target Hospitality engaged Carla L. Provost, former Chief of the United States Border Patrol, as a strategic advisor and government liaison. Ms. Provost's extensive experience is expected to provide valuable insight as the company actively evaluates multiple government-focused strategic growth initiatives, aiming to expand its presence in this sector.
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