Earnings call transcript Q2 2023

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Operator

Hello, and welcome to the Target Hospitality Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded.

I would like now to turn the conference over to Mark Schuck, Senior Vice President of Investor Relations & Financial Planning. Please go ahead.

Mark Schuck

you. Thank and Hospitality’s everyone earnings quarter to call. welcome morning, second Target XXXX Good we outlining of this results, press issued The release morning found the can in our Investors website. section our be quarter second

website replay a will on time. this In for addition, limited of a be call archived our

are release. on time-sensitive Please note today, May Target except to date, which may XXXX. today’s forward-looking this information Xth, This will obligation contain that to Hospitality press conference today’s call as any of contained regarding language as expressly required well applies update statements, contained reflect conference the circumstances in after forward-looking disclaims call. events accurate by or the same statements or to information as applicable amend arise cautionary this language as This only statements made call in law.

For affect may periodic uncertainties a future Target risks with performance, the list complete Hospitality’s and to SEC. filings refer that of please

refer measures of We tables our will section today’s of financial find earnings non-GAAP website Investors corresponding in non-GAAP discuss call. to on their referenced measures. a GAAP to posted the call in measures our reconciliation the release in financial Please and today’s

Brad by Leading After Vice will and today for be Officer; call remarks questions. we’ll followed prepared President their the and Executive Chief Eric call Chief Executive Kalamaras, Officer. T. Archer, President Financial open the

to over Brad Officer, Executive the Archer. Chief turn our now call I’ll

Brad Archer

us today. on Thanks, Mark. call Good and morning, the everyone, joining for you thank

strong while appropriately Our the significant demand we have and established us scale, customer continuing flexibility have to results. record business year, match setting past quarter the sustained second performance reflects to over we positive financial operational generate momentum enabling

derived last government. in expanded our from presence quarter over time. the the XX quarter flow solution revenue critical revenue of from of second has of discretionary impressive over resulted cash months, committed revenue the benefit contracts being cash revenue over by commitments. million representing focus XXX yield having discretionary government United to that intentional backed elements providing to States XX% flow supported XX% over over continue This hospitality an XX% minimum material second We to with U.S. These of

operating the customers, whom quickly our strategic remained This premium generate off And to has focused attenuating to have respond world positioning a have growth been solutions our customers while for to decade. class enhanced platform impressive efficiently of allowed operating class providing company opportunities its we customers, to serve HFS-South materially all Target many over on full-service hospitality to world segment, income.

an Target demand, quarterly a increases over from continues we rates in of which renewal customer to consecutive resulting As increase result, utilization in over for consistent seven XX%, years. enjoyed benefit in XX% with have year-over-year customer

to optimized have benefit pricing we environment, and over the These in past the we positive from have year. elements momentum fundamentals the the We network more and and anticipate forum coming strong continue fully a the demand quarters. supported created more normalized continued

partners our humanitarian by our were in the of we the the as highest expectation agencies community was to visited received the continue XXXX. they serve have on the established metrics. and purpose-built they portfolio ratings support serve the of is government specifications adjacent testament well serve, communities mission. humanitarian designed our specific agencies world consistently created a while assets all government segment, are U.S. and solutions frequently government's of first government needs to the aid critical as of the to Regarding operating our U.S. This Target’s since their to exceeding in class mission

milestones contract been to have community. our securing announced Regarding Center we as term related existing long community, previously Pecos this key for Children's achieved several

multi-year by the contract indefinite establishes awards. the appropriately Our fund contracting an contract, quantity government indefinite awarded non-profit required delivery existing partner vehicle which to was U.S.

established of connection to of the the up two of capabilities in as for desire increase three government performance IDIQ Facility sites. PCC. community coincided statement capacity contract their requiring awards to Care is Influx total accommodate community. This statement, ICF work the Further has the government's Care PCC work their materially individuals, significant blueprint a Importantly, the to with Influx Facility our outlines existing to aligns with addition in of performance or and XX,XXX established specifications a contract with the the desired

their needed As and the support existing ICF of government capacity government These housing the U.S. which stated many capacity, has adequately children unaccompanied to surge arriving to Paramount years. number in to static manage continually increasing urgently humanitarian capacity for the and the U.S. sites has of shelter additional ability is into critical remained are excess

our to partner. In stated new our partnered ongoing ICF jointly increase are new community, capacity, with submitted providers government have for PCC and to ICF government's established non-profit multiple we with to the their solutions response ICF established addition These sites relationship the service and desire sites. in several

positioned larger to have in a at Influx we summary, community non-profit the facility. Pecos and have to remain Care Target partner, exceptional PCC. the service created our jointly and much just than set we existing In opportunity committed participate We offering

government. We U.S. for have creation and service our also several expanded new bids across the the geographic partnerships solutions of numerous strategic locations submitted jointly government for ICF

more to focus I'll initiatives capital discuss financial expanding results, our the and over humanitarian Eric call second now turn detail. in allocation to quarter

Eric Kalamaras

you, Thank Brad.

our customer The results. operational second deliver to scale financial ability consistently we quarter, strong continue demand to and with and align benefit established from

$XX the million increase million was year. attributed A community. million. Second expanded to last million and significant compared revenue $XXX government quarterly period quarter A $XX total was revenue approximately approximately PCC segment produced same XXXX adjusted was in to EBITDA of $XXX

remainder quarter the quarter offerings. Current $X expenses same million momentum of million, Target's are in last $XX of driven $XX compared the $X to the $XX million service by HFS Our period quarterly we And recurring This premium delivered was for corporate around the and corporate will million. approximately to anticipate year. for increase demand segments expenses for revenue customer year. sustained remain million per

spending to network ICF with billion, was majority capital capacity. in the expanding to the our the approximately portfolio related government increase of $XX government's anticipation of Total request

pace expect of zero more the through excluding the and million government leverage of the liquidity, ended potential the under with and We ratio revolving with times. the year, acquisitions remainder of We of $XX or $XXX $XXX moderate spending facility, quarter credit million contract a awards. borrowings capital cash company's million net X.X

notes. to it outstanding senior As relates the

financial opportunities enhancing they liability as This enabling react quickly balancing financial range us We continue growth management while flexibility, approach on strengthening on position of expanded to further pipeline maximizing the our of evaluate to arise. opportunities. strategic focused centered initiatives is growth to value a

government's discuss opportunities, Influx mission. touch would and around Care humanitarian expanding Before in specifics like the our purpose concept we to serving the Facility I intended on humanitarian its the

As a of these fraction facilities capacity of to solutions are size a the service. Target's the for humanitarian to unaccompanied prior Of government minors network a of reminder, government has consists facilities smaller PCC, shelter States. facilities The United housing address ICF shelter that Care of located the community. existing occupying the the across utilizes Influx

Care capacity. existing manage Influx shelter surge beyond government's the U.S. capacity intended to Facilities are

the to network. efforts numbers has capacity, role could the of strain desire the in However, that the shelter U.S. necessary sites, increasing to government played Care Due this individual unaccompanied Influx consistent and its critical shelter focused network that mission. on and humanitarian small supporting capacity needed Influx PCC size of children government's government's the manage a is increasing entering urgently in the and

manner. influx stated, humanitarian essential capacity surge is Simply and properly efficient seamless an government the Care to the U.S. Network in allowing element, and manage

over occupancy at the result, in time. occupancy Care including the with a As fluctuate PCC of Facilities, government given any period will meaningful changes Influx

opportunities United indicated turning our XX,XXX up a intention Now ICF supporting States ICF government the has unaccompanied to growth ongoing population their to expanded to meet void the and desired initiatives of humanitarian of the organic for minors, capacity total network individuals. three community contracts, to

and We we progress pleased the and specifications PCC additional to ongoing blueprint with finalized additional capabilities specifically PCC, Further solidified remain relationship capacity. of with desire existing the as with believe alignment existing a and the remain this to the specifications to relates confidence through it anticipate we government's community year. this ICF contract government work will ICF partner later discussions. provides non-profit be critical solution a As the contract

strategically with jointly another of additional submitted established the and customized highly proposals built government billion service for Target United to approximately and has provider supporting partnered purpose has solutions $X several addition, ICF cumulative create In capital government. States deployment

numerous ICF sites. these geographic as location expand providing Importantly, maximum solutions proposed they new with for government the U.S. determine flexibility locations, desired the

essential meet strategic in government. assets These solutions to additional we As element. been humanitarian solution these the of a proposed critical Target viable desired a of Target Further capacity. the U.S. presence ICF positions U.S. providing government opportunities. an and as to recently acquired request pursue customized the government's Target’s assets this is anticipation believe advantageously highly reminder, ICF have these increase established to And in

excited about opportunity in are critical and the service humanitarian this expand mission. offering We the U.S. our humanitarian aid an government it's to to

capital providing and $XXX of $XX on acquisitions year, $XXX evaluate focused approach million, which includes and million capital. million should opportunities, normal financial organic between growth companies We $XXX predominantly growth XXXX more XXXX continue to between between active excluding an million spending million EBITDA outlook, pipeline $XXX revenue and strategic million $XX levels adjusted per and

as pipeline period to community anticipated across that it support meaningful Target’s government and nature, occupancy projects. fluctuations to with are of support are adjustment defense, relates contract solutions national population energy of by expanding with and expertise discussed to create transition, for any variable associated designed given various humanitarian number revenue range a the remainder very will and in of experience jointly partnerships. the Target’s pursuing revenue opportunities XXXX strategic XXXX of opportunities service only vehicles is U.S. an of time. for operating of agencies growth Target The initiatives, was we These As that over leverage projects their designed ICF facilities a can dynamic flat PCC

allocate next As over to stated, to these is growth several the $XXX over years. opportunities previously capital return prepared million of high Target net

the the additional to to updates many hopefully comments. With opportunities for these call discussion I'll are quarters look We progress back for with closing and for of projects that, the of Brad progress. turn as pleased coming over forward the large-scale providing

Brad Archer

simultaneously us setting the scale match strong to customer demand record efficiencies are we results Thanks, while a quarter testament Eric. second generating results. enabling appropriately operational A have financial created, to and

positioned Influx well excited are expanding We Care participate in to opportunity and set. the

PCC have created with the leading solution non-profit offering We are and exceptional government. community jointly that critical the service national U.S. partner confident we a and will remain our for

In the solutions partnership offering numerous we opportunity believe proposed create to critical new to government. our an potentially and ICF exciting service addition, expand our U.S. we have the

everyone appreciate on call joining us and pipeline continuing value growth this focused for pursuing for interest again We shareholders. positioned remain accelerate expanded while you of to thank are your I the creation And on in Hospitality. well today. our opportunities, Target

Operator

will question-and-answer begin now session. the Instructions]. [Operator We

Oppenheimer. Our first question Scott comes of Go from Schneeberger ahead.

Scott Schneeberger

I'd and much. to Morning, that does guess will low you. Good high the contemplate you be like so morning, very Thank first Pecos at What Eric The everyone. inquire this Facility? for guidance adjustment, range question. for end. I end the occupancy

Eric Kalamaras

about first specifically there, partners year. the the Hi, the Scott, for thanks good revenue, at When our variable we the outlook, for XXXX received the regression certainly were would as question. We what the So, related to have of to this morning, stand anticipating that think look than right? modify going variable we services point. and forward, we for part specifically we occupancy were

somewhat going think that. it's say to forward, But that this I it what not as point. prudent think at we've it's think any so, safe on there's I revenue surprised seen. based we I we that And And at we're services look all like variable are assuming

said having nothing how view the going certainly that, contractor durability changed But forward. has we about its

of think we about to about ahead opportunities, timing themselves. those certainly of towards think and opportunity as a where -- just cadence of have looking depending lot satisfy the on and all upside there's us, at the certainly fit that, can the think I high we opportunities end we we when the going the of

Scott Schneeberger

moment. given maybe and the obviously, compare past. what Thanks. this activity summer just we've to recent at years not at contrast seen flows, And that you Could with -- and Pecos yes,

do it's to give prior seen seasonality an guidance, update with the there, but utilization government, what of into you a you've Just baked anticipate considerations. like your Thanks. your conversations chance us on doesn't flows year-end? sound and with Is it

Eric Kalamaras

Sure.

now this, and say think to that's I I optionality. -- it's we're say increased - going early not too RMC right? say So there, get always I that to going mean, always I we're the think

to raise what to can plans you do to as notice get a that. If week's recall, the we just there government

fact, In around potentially would site. that phrasing and about in calls at you putting material I daily were say time even the early occupants -- summer back in going having,

a always given So, in point that's any possibility time. at

function I a think happening. it's what's really of

example, were demand, right? amount really when So, XX, let tremendous across an of a Title of we So, number was a me give looking there entry at points.

And bit, right? that's flows so perhaps happened see the wait to to And just hard have time. so helps a really appended really It's we'll and has is think what I little that timing predict. how and over

Brad Archer

the I think maybe piece air sits as today. and just to the it clear on utilization variable

-- moving as adding in and many I said at important in at need to change how this will, two. correlation today, those Pecos, release. and The ultimate But for at the utilization you the they're three you now sit need think bifurcate between in we've XX,XXX correlation we if utilization today beds. is to look there and ICF look Pecos, they're years in for if there when the it's how our envisioning is are They government. need sitting the there's really facilities kind this. of insurance ago. looked additional where there kids you Because did no for no in

once see there it going difference going absolutely look many, there, they're on, is be -- all will can and okay, is influx some many for variable for at capacity. and flows say, this There's we but they're variable. a to be has years, There order to, that

Scott Schneeberger

appreciate that. thanks Okay, Brad. I

a get it's put Pecos, like from with discussion makes you looking may do but all not because it couple answer more there? feel and does It not don't on to the that you'll kind in And And what’s decision three isolation, government call together? at or you’re Going them? customer sense about -- That discussions the locations. government But other them -- just this will you up do. guess, a a these be your able I the ultimately with final some all it are level, certainty know this not of government

Brad Archer

I don't if --. know

Scott Schneeberger

Thanks. Brad. it, That's

Brad Archer

know all be you think question. if the end -- it's XX,XXX this were you probably Or don't isolation. breaking but think I'm not we didn't is our but I were I -- caught would beds up, in XX%. asking whole you on do But awarded? or year-end, I what hear basically

the an we me what you you can okay? kind you me just IDIQ here hear let Can process. if So, us, give on good, of update think about

Scott Schneeberger

or everything heard hear if I can Thanks. you together question, and you be award? being as it do grouped Yeah, will And me. awarded said in the its you three the got extension considers for you think Pecos all isolation government

Brad Archer

work not at just Yeah. it. we call, where an right literally, through me go in let And the received we before call, everybody kind on Last our time a of process. to update we're just of And had give performance did statement. IDIQ have

that for worked phase a conversation on months. our several ago. Now, they need with separate they're partners three and our the them XX,XXX in months submitted We with past our proposals beds, you bids release, one technical total asking see facilities few for we

bid Phase partnerships, two They call at of Take they and goes going into government it the forward selected actually move if pricing. phase phase get is you're this grade the proposals. how in, done, bids before two take all last they award. look with right? your to on were of what the We our to job your an

two. that of important selected phase there's, one So, move phase a limited out there's of number note, to to companies into were

into pushed our of phase pricing on submitted for bids our All our were two. two. phase XXth, We bids July

on a gets when it's this awarded. waiting game now So,

staggered, could large, big these These be very be being would told, very be. the fourth absolutely could are bids. award. And We're they look, quarter

definitely of just be number large some of some absolutely quarter. But see. with we they how three award little even fourth think a further So, go on those staggering How I fourth there's are. award in there could could. happening definitely, on bit quarter. will an It the the many, But based than look,

Scott Schneeberger

color Thanks it I that Brad. great. I’ll Okay, on. appreciate pass

Operator

question of Gengaro Go comes next Stifel. Our from ahead. Stephen

Stephen Gengaro

things everybody. that is for minors' portion? just I unaccompanied -- and think they from Thanks. A the it The beds, that is just are first, me. just one children And designed just Or clarification. is Good -- of XX,XXX couple morning, staff?

Eric Kalamaras

right? is Yes. to would we There's for doesn't our what own to more This and for definitely for account go supply This housing. just here, children. for workforce have our partners

So, there also of top Pecos at facilities, a be number the day beds the these like end at just each on this of for staffing. of of would

where competitive you actually if and did, be some what locations substantial would where not have And but Look, they depends to can of number located a a something might I'm you what are depending city I'm would tell add you on different, rooms, will, closer number to reasons, there. get of pick, -- But us. to some there for these extra are going fairly not will this contract confirmed we some on bigger. and be for the them

Stephen Gengaro

does Okay, and make And things. then sense, yes. two Thanks, that other thanks. then

this addressed curious. just you but extent, First, I'm to an

extent Care what you So, country. utilization zero that approach. had to trying the When unaccompanied noted Facility be Influx enters a fact months. can, the other of long-term sheets utilizing the system? minor. the helpful different these And be has the parts are for we for to versus you would demand, been then Maybe minor that was unaccompanied flawed would when what it sort into us point at earlier the which this an paths and are call any at on tells you we're for triangulate of looking And several

Brad Archer

approach it's that say, eventually let become at saying not but the how probably on let And it's -- to me much -- flawed me I'm the right? happens so I'll approach it's jump look for crossings flawed need. influx, a you Yeah. this, in let border Eric

If what's if at these are for will, across that you're They've needs deeper of at, many, much for coming just today. than this the looking These known looking need issue had facilities. you many just years. they've

is many, on your finger is if million-dollar question, the you come, years will. when going the of solution put This because for more happens many to trying to influx their is that kind

saying So, you those -- can't those correlate my of kind that, that's two.

-- that hopefully, So,

Eric Kalamaras

Even to expand that. Steve, further to on

shelter you we strain, really movement as into -- it's really of likely -- on will, right? discussed the think from the function if before, a influx is I a function the capacity,

they're shelter system. within probably the beds So, X,XXX

now be small certain are number a And level. across And tended so to at states. those a of

so potentially at to into time, for too And it once capacity, start to they'll maneuvering the given any threshold do. be certain that site. easy moving beyond those can have gets occupants times many logistical obviously there's strained. get And right? point At will it that the government level, in influx, a some shelter But in

some So, right occupied start within then say, now, above XX%, level we're -- about XX% the that, shifting shelter At into influx. let's system. they looking and we're

but say that So, I not still would has it's that happened far yet. it away,

Brad's think time in any the this like occupancy, that, insurance point, given is what immediately. regardless to point shelter policy at to because offset an influx I does need you exceed the of absolutely capacity looks it extent to regardless it the

and can the whole something is So, the purpose which where it's IDIQ not the wait, government this discussion. around

you bit of hopefully, So, process gives little as additional context to how a that works. that

Stephen Gengaro

revenue the low some also the Or this quarter, of are there But specifically. that small, the we facility. we thinking the quarter? at wrong? was Great. for empty not still is numbers knowns which on the what we contribution and second not have, the an that in I that to final. in is I just And based revenue ICF was want may one mean that the know we utilization get probably was But thought some revenue? quarter you the perfect, when Yes. and Am some, comment then despite -- XXs first government also I the in there about And look variable was I

Eric Kalamaras

about we that dig don't any, there specifically talk can a Yeah. talked contribution think of variable can think, further. the wasn't much. I and But I things. We quarter. talk it we One, into were couple per about -- about went, it if

Stephen Gengaro

good. All Thanks you. the very all right, color. for Thank

Operator

Our Instructions] Security. Northland Gibas [Operator go next ahead. comes question Please of from Greg

Greg Gibas

and taking government beds we capacity you that Good Congrats I is for then morning. think the quarter. Eric. we like that Pecos is the that beds? with Thanks good incremental morning, XX,XXX-bed we demanding, have on in Brad about government. another should -- the number XXXX-burn at incremental think When Hey, the about think mean, how I that that questions. think contract should and about many X,XXX how

follow-up that requirements, meet acquired they of guess is you there the And will capacity needs say as assets requiring would anything currently I capital would the additional I kind guess, that guess, stand aren't be basically government's right or the those And contracted as the with today? required? you've Or government, or now? maybe, I

Brad Archer

tell The you, we Yes. facility definitely used in was acquired, will I process. our bid

So, it think this needs bid. meets we of definitely the some for

mentioned is. facility be large is top will that earlier, competitive into each right? that again, there or -- on for I'm is I'm not per beds, to going of definitely I reasons, get not customer of facility, the X,XXX how bid. many this As will, if top an you employee how on open beds, on

other out is to we the government. need that. kind of definitely And would do the and this beds side. time customer we put how how employee many beds is the would side, out What's for the we Just for inappropriate then them, put Hopefully, out it's to more what for awarding can X,XXX we're built. be at about again, talk there haven't

Eric Kalamaras

embedded you and above Greg, right, XXXX, not, everything PCC about And relates effectively, as you're if is think to So, show right? XX,XXX net only obviously incrementalization specifically address an your it that. additional that's the talking right? question, here, Dilley, - to but not we're PCC itself, the about included not over is number, X,XXX about But with effectively thinking So, of

That's -- X,XXX. just I'm just right. talking the That's only

additional the incremental. that So, for children if this be would X,XXX

more bit clarification. little a gives that hopefully, So,

Greg Gibas

guess just down Thanks variable variable I EBITDA year? does. this you're regarding a the the That relation expecting or year? guess just updated question for assumptions I that. the your of I there. appreciate this I overall, on a revenue. And the follow-up contributions color guess, slight in clarifying maybe variable I revenue previous And guess, reason wondering what guide for just less are for

Eric Kalamaras

a spring around we in the the stronger see seasonality late through and typically, Well, start.

think that pulled a the I lot of was of XX. Title forward because

which, And again, not expectation have we had so an each that of -- it's would those. on

we to So, thoughtful we think that think And that to it's look conservative be shift earlier specifically see to at to as we're right? caused to and the - expect at we I in as I make provide look outlets, and year XX, than then trying would we and Title how it. us we a be try

So, elaborate. to and prudent look can't maintenance being sense it's said, can I of that, the adjustment just there's that balance appropriate of we it's the function that that, year. -- feel That as tie there's at a nothing nothing

over above so moments As is influx mean, a you I look care. certainly and some I at level ago, XX%, mentioned that, capacity at XX% would

Greg Gibas

on very existing I lastly, partner? you anything market your non-profit opportunities provider new maybe partner how share service just offer helpful. versus your Great, government can guess they new and

Brad Archer

still Geography-wise, that, happy and doing at, PCC. I much today, the right? have government the firm into stretches A partner we're there to bid partnering about right, Look, we're of going go We're with. where we what will in going sense. made on all we're really firm, it's names, larger it than further than I'm large We've bid. you, existing very all telling -- like partner in again, still not this very after with really takes bid, open going been excited out services we that much who that with very tell facilities. a

As we're aligned there.

we an submit to they we with to grow and for wanted wanted it do agreement for think our after ability go have try on that and we bid. to of the asked new business. We provided and the them to what with XX-year this all government So, facility, But government to they partner. this have that we everything

Greg Gibas

Great, appreciate you guys.

Brad Archer

you. Thank

Operator

next question go Gengaro of comes Please Our Stifel. from Stephen ahead.

Stephen Gengaro

follow-up. the Thanks for taking

Just looking is counts just year. like guidance, levels piece mean, when wanted we're likely next does Are it the that activity year, the seeing to change seem down in activity check and rig I the It patch, from your likely we appear look recovery of clearly, of in down, the just you at at I half there, but so second in completion oil stabilizing that? a doesn't but business? much are

Eric Kalamaras

Look, we have said in earlier half we that seeing that this started some -- into spend of the expecting year. year back saying were the quarter. really expansion the we start We in starting as margin we second

As we cost saw come efficiencies. create some additional inflation operating containment some pressures down and

that are to getting things extent, So, better.

be of -- look I there. really your heart the I going think does as question forward, real change the we it's to is what a think inflation like going right? there's And

some from -- I some have significantly get high take playback I a that There we starting wouldn't is little consolidation, Hopefully, bit. that expecting continue. different area expect would we that better. to now. that the anything utilization XX% are is you right for which continues to tell to potential

us to still be this time. wouldn't I point. I wouldn't But could I would think steady, -- some growth over that anything that expect there's but there, look, helpful So, material at slight

Stephen Gengaro

Is Okay, thanks. the of this potential Pecos, standard structure time, to structure protect for about And utilization other where then quick the on we similar think one just Should be sort there's contracts piece to fixed government. of one the portion. for variable of period You're assets we that long kind keep your some you your a plus expect? to giving should assets? and of

Eric Kalamaras

piece was contracts the structure that we forward So, to how well have and going capital structured payback about think I piece is specifically the as way you with variable related to a think to portions. as these the the from PCC, revenue

in instruction. should from you generally think concept think those similar roughly I very about being

Stephen Gengaro

great. Okay, all Thank the for details. you

Eric Kalamaras

Steve. Thanks,

Operator

from Schneeberger comes Scott of ahead. question next Oppenheimer. Our Go

Scott Schneeberger

government you. for lot to follow-up. there, there pursuing, and call you previously was other of a wondering give you're didn't the taking it ICF much across But are the on some Thanks the I wanted update Thank opportunities -- discussion an this up come any non-ICF led updates prominent. agencies, you? I on opportunities of was because on just the touch base if if just you could thank

Brad Archer

Sure.

could ICF And business. being to of not we've so we happen in We even the but as as But definitely, large. there's get making other there. many getting we've some than project’s services headway done into than organic talked organically we're I’m kind past. the some what of time government on also about to some specifics, government continue out out And take HFS always the that to made say trying had continually some. piece side far progress There's things - are of pipeline Again, from the natural but very same our well. in expand stronger resources, They years strong as piece. very

Eric Kalamaras

Yeah.

have Brad on of other the government. of looking eye things as and continually I that really business on our right? that big, to business with industry. we're digital other at quarters these point, in I all are to think that government, we around having we looking in to the throughout and working several be over we're and These clearly think said the as There what addition of want we're taking fair I executing and expand the the here. off sites, we're to that. think multiple further the and regions well, past grow partner, to having are with We're not continuing government course, mentioned,

So, on we forward to look look, robust to it. trying is and execute the pipeline

Scott Schneeberger

the heard in that of the And with in you there? remarks, it. little did second working considerations then one for for the Am on newly year, Or is that last Was there that to all CapEx guidance Great, said, And -- after what prepared the bit were me. strategic doing one. I quarter moderating pointing a on through thanks. I but more year. acquired end the asset? I what and might As increase CapEx Thanks. 'XX

Eric Kalamaras

in spending first of the in first, Sure. right. quarter. No, the the half, We first was you're really most had that in particularly was

the around towards back total So, year. of that half comment the was the moderating nature of the

say talking we we're if would with structure be kind inventory the we got into as but level similar at contracts about it it XXXX going similar we've level, have a is look a a level, what you to had of capital base for - spending we spending. believe if gross As on here significant as did XXXX kind that what I the year. to for looks at I Then you net capital of think a would Look, know, this nature -- from the of something on with about well. what to stick be could level

number big nameplate on net a big So, you hear number a but not basis. very

Scott Schneeberger

Okay. much. Thanks very

Operator

now concludes our to question-and-answer session. Brad I for to like This the closing any turn remarks. would over conference back Archer

Brad Archer

for Target thanks Thanks today. on our on speaking your in call. forward And good again interest November in again We to third for quarter our us a joining day. call Hospitality. look Have

Operator

has conference The today's attending now Thank concluded. presentation. you for

disconnect. now may You

Target Hospitality (TH) 9 Aug 232023 Q2 Earnings call transcript