Target Hospitality Corp (TH) 2023 Q1 法說會逐字稿

完整原文

使用警語:中文譯文來源為 Google 翻譯,僅供參考,實際內容請以英文原文為主

  • Operator

    Operator

  • Good morning, and welcome to the Target Hospitality First Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, the event is being recorded.

    早上好,歡迎來到 Target Hospitality 2023 年第一季度收益電話會議。 (操作員說明)請注意,正在記錄該事件。

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

    我現在想將會議轉交給投資者關係高級副總裁 Mark Schuck。請繼續。

  • Mark Schuck - SVP of IR & Financial Planning

    Mark Schuck - SVP of IR & Financial Planning

  • Thank you. Good morning, everyone, and welcome to Target Hospitality's First Quarter 2023 Earnings Call. The press release we issued this morning, outlining our first quarter results can be found in the Investors section of our website. In addition, a replay of this call will be archived on our website for a limited time.

    謝謝。各位早上好,歡迎來到 Target Hospitality 2023 年第一季度財報電話會議。我們今天早上發布的新聞稿概述了我們第一季度的業績,可以在我們網站的投資者部分找到。此外,此次通話的重播將在我們的網站上限時存檔。

  • Please note the cautionary language regarding forward-looking statements contained in the press release. The same language applies to statements made on today's conference call. This call will contain time-sensitive information as well as forward-looking statements, which are only accurate as of today, May 9, 2023. Target Hospitality expressly disclaims any obligation to update or amend the information contained in this conference call to reflect events or circumstances that may arise after today's date except as required by applicable law. For a complete list of risks and uncertainties that may affect future performance, please refer to Target Hospitality's periodic filings with the SEC.

    請注意新聞稿中有關前瞻性陳述的警示性語言。同樣的語言適用於今天電話會議上的發言。本次電話會議將包含時效性信息和前瞻性陳述,這些信息僅在 2023 年 5 月 9 日今天才准確。Target Hospitality 明確表示不承擔任何更新或修改本次電話會議中包含的信息以反映事件或今天日期之後可能出現的情況,適用法律要求的情況除外。有關可能影響未來業績的風險和不確定性的完整列表,請參閱 Target Hospitality 定期向美國證券交易委員會提交的文件。

  • We will discuss non-GAAP financial measures on today's call. Please refer to the tables in our earnings release posted in the Investors section of our website to find a reconciliation of non-GAAP financial measures referenced in today's call and their corresponding GAAP measures. Leading the call today will be Brad Archer, President and Chief Executive Officer; followed by Eric T. Kalamaras, Executive Vice President and Chief Financial Officer. After their prepared remarks we will open the call for questions.

    我們將在今天的電話會議上討論非 GAAP 財務措施。請參閱我們網站“投資者”部分發布的收益發布中的表格,以查找今天電話會議中引用的非 GAAP 財務指標及其相應的 GAAP 指標的對賬。總裁兼首席執行官 Brad Archer 將主持今天的電話會議;隨後是執行副總裁兼首席財務官 Eric T. Kalamaras。在他們準備好的發言後,我們將開始提問。

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

    我現在將電話轉給我們的首席執行官 Brad Archer。

  • James Bradley Archer - CEO, President & Non-Independent Director

    James Bradley Archer - CEO, President & Non-Independent Director

  • Thanks, Mark. Good morning, everyone, and thank you for joining us on the call today. Our strong first quarter performance reflects the positive business momentum we have sustained over the past year, which has supported many strategic achievements. We have meaningfully diversified the business and revenue mix with over 70% of revenue now derived from committed contracts by the United States government. These high-graded contracts have provided enhanced revenue and cash flow visibility, supporting over $339 million of discretionary cash flow over the last 12 months, representing an impressive discretionary cash flow yield to revenue of approximately 60% over that time.

    謝謝,馬克。大家早上好,感謝您今天加入我們的電話會議。我們強勁的第一季度業績反映了我們在過去一年中保持的積極業務勢頭,支持了許多戰略成就。我們對業務和收入組合進行了有意義的多元化,現在超過 70% 的收入來自美國政府承諾的合同。這些高等級合同提供了更高的收入和現金流可見性,在過去 12 個月支持了超過 3.39 億美元的可自由支配現金流,這代表了令人印象深刻的可自由支配現金流與收入的收益率在這段時間內約為 60%。

  • These accomplishments have solidified Target's balance sheet with over $350 million of cumulative debt reduction since 2020 and an 80% improvement in Target's net leverage ratio over the past year. We have significantly transformed Target's operating platform while continuing to serve our existing world-class customers and simultaneously positioning the business to quickly respond to strategic growth opportunities.

    這些成就鞏固了 Target 的資產負債表,自 2020 年以來累計債務減少超過 3.5 億美元,Target 的淨槓桿率在過去一年中提高了 80%。我們對 Target 的運營平台進行了重大改造,同時繼續為我們現有的世界級客戶提供服務,同時將業務定位為快速響應戰略增長機會。

  • In our HFS South segment, we have remained focused on providing premium full-service hospitality solutions to our world-class customers, many of whom have been customers for over a decade. As a result, Target continues to benefit from consecutive quarterly increases in customer demand, resulting in a 15% year-over-year increase in utilization with consistent customer renewal rates over 90%, which we have enjoyed for over 7 years. This continued strong demand and positive customer outlooks supported the acquisition of select community assets in the first quarter to appropriately align our network capacity with an existing customers growing labor allocation requirements.

    在我們的 HFS South 分部,我們一直專注於為我們的世界級客戶提供優質的全方位服務酒店解決方案,其中許多客戶已成為我們十多年的客戶。因此,Target 繼續受益於客戶需求的連續季度增長,導致利用率同比增長 15%,客戶續訂率持續超過 90%,我們已經享受了 7 年多。這種持續強勁的需求和積極的客戶前景支持了第一季度對精選社區資產的收購,使我們的網絡容量與現有客戶不斷增長的勞動力分配需求相適應。

  • In addition, the strategic location of these assets enhances Target's regional presence and provides opportunities to further expand our premier customer base. We are pleased with our current HFS utilization and its ability to meet our strong customer demand while benefiting from the more fully optimized network we have created over the past year. Regarding our government segment, our purpose-built portfolio of assets continue to serve the critical humanitarian aid mission that they were designed to support while exceeding the expectation of our partners in the U.S. government since our first community was established in 2014.

    此外,這些資產的戰略位置增強了 Target 的區域影響力,並為進一步擴大我們的主要客戶群提供了機會。我們對目前的 HFS 利用率及其滿足我們強大的客戶需求的能力感到滿意,同時受益於我們在過去一年中創建的更全面優化的網絡。關於我們的政府部門,自 2014 年我們的第一個社區成立以來,我們專門構建的資產組合繼續服務於它們旨在支持的關鍵人道主義援助任務,同時超出了我們在美國政府中的合作夥伴的期望。

  • Further, the U.S. government has continued to stay in its urgent need for additional humanitarian housing capacity, particularly with the impending removal of Title 42, which is anticipated to result in a substantial increase of individuals across in the U.S. Southwest border. In preparation for this meaningful increase in demand and to ensure uninterrupted access to existing humanitarian housing solutions, including Target's expanded humanitarian community, the U.S. government has indicated it intends to exercise the existing contract 6-month option. This decision will allow for seamless continuity of the service offering at the expanded humanitarian community and serve as a bridge prior to long-term contract specification being finalized.

    此外,美國政府繼續滿足其對額外人道主義住房容量的迫切需求,尤其是在即將取消 Title 42 的情況下,預計這將導緻美國西南邊境的個人大幅增加。為準備這一有意義的需求增長並確保不間斷地獲得現有的人道主義住房解決方案,包括 Target 擴大的人道主義社區,美國政府表示打算行使現有的 6 個月合同選擇權。該決定將允許在擴大的人道主義社區中無縫連續地提供服務,並在最終確定長期合同規範之前充當橋樑。

  • As previously discussed, our nonprofit partner was awarded in definite delivery and definite quantity contract related to the extension of our humanitarian community in Pecos. As a reminder, this award consisting of a base 5-year term with an additional 5-year option establishes the contracting vehicle required by the U.S. government to appropriately fund multiyear contract awards. The IDIQ award to our nonprofit partner is one of the final steps in the government's contract award process prior to working through definitive agreements. We remain highly pleased with the ongoing discussions with the U.S. government and our nonprofit partner, and we anticipate working through additional contract specifications over the coming months with likely combination in the fall of this year. We look forward to solidifying the longevity of this community and a critical humanity mission, it was purpose-built to support.

    如前所述,我們的非營利合作夥伴獲得了與我們在佩科斯的人道主義社區擴展相關的確定交付和確定數量的合同。提醒一下,這個由 5 年基本期限和額外 5 年選擇權組成的合同確立了美國政府為適當資助多年期合同合同所需的合同工具。將 IDIQ 授予我們的非營利合作夥伴是政府合同授予過程中在通過最終協議之前的最後步驟之一。我們對與美國政府和我們的非營利合作夥伴正在進行的討論仍然非常滿意,我們預計在未來幾個月內通過額外的合同規范進行工作,並可能在今年秋季合併。我們期待著鞏固這個社區的長壽和一個重要的人類使命,它是專門為支持而建立的。

  • In summary, we have achieved our strategic objectives to materially strengthen Target's financial position while simultaneously diversifying our customer base and continuing to accelerate value creation for our shareholders. I'll now turn the call over to Eric to discuss our first quarter financial results, 2023 outlook and capital allocation initiatives in more detail.

    總之,我們已經實現了我們的戰略目標,即實質性地加強 Target 的財務狀況,同時使我們的客戶群多樣化,並繼續加速為我們的股東創造價值。我現在將電話轉給埃里克,更詳細地討論我們第一季度的財務業績、2023 年展望和資本配置計劃。

  • Eric T. Kalamaras - Executive VP & CFO

    Eric T. Kalamaras - Executive VP & CFO

  • Thank you, Brad. In the first quarter, we experienced continued strong demand fundamentals and positive momentum in customer activity, which further solidified our strong financial position. First quarter 2023 total revenue was $148 million, and adjusted EBITDA was approximately $91 million. Our government segment produced quarterly revenue of approximately $110 million compared to $47 million in the same period last year. The significant increase was attributable to the expanded humanitarian community. As a reminder, Target's government segment, including the expanded humanitarian community centers around annual minimum revenue commitments.

    謝謝你,布拉德。第一季度,我們經歷了持續強勁的需求基本面和積極的客戶活動勢頭,進一步鞏固了我們穩健的財務狀況。 2023 年第一季度總收入為 1.48 億美元,調整後的 EBITDA 約為 9100 萬美元。我們的政府部門季度收入約為 1.1 億美元,而去年同期為 4700 萬美元。顯著增加歸因於擴大的人道主義社區。提醒一下,Target 的政府部門,包括擴大的人道主義社區,都以年度最低收入承諾為中心。

  • Additionally, the expanded humanitarian community includes variable services revenue that aligns with monthly changes to community population. This contract structure provides ideal flexibility for our customers as their occupancy requirements fluctuate over time, while providing meaningful minimum revenue commitments that create significant revenue and cash flow visibility for Target. We have found the structure is the optimal outcome for all parties, creating a sustainable basis for contract longevity while maximizing operational flexibility.

    此外,擴大的人道主義社區包括與社區人口每月變化相一致的可變服務收入。這種合同結構為我們的客戶提供了理想的靈活性,因為他們的入住要求會隨著時間的推移而波動,同時提供有意義的最低收入承諾,從而為 Target 創造可觀的收入和現金流可見性。我們發現這種結構對所有各方來說都是最佳結果,它為合同期限創造了可持續的基礎,同時最大限度地提高了運營靈活性。

  • Our HFS segment delivered first quarter revenue of $36 million compared to $32 million in the same period last year. This increase was driven by sustained momentum in customer demand for Target's premium service offerings. Recurring corporate expenses for the quarter were approximately $9 million, and we anticipate recurring corporate expenses will remain around $9 million to $10 million per quarter for the remainder of the year.

    我們的 HFS 部門第一季度的收入為 3600 萬美元,而去年同期為 3200 萬美元。這一增長是由客戶對 Target 優質服務產品需求的持續增長推動的。本季度的經常性公司開支約為 900 萬美元,我們預計今年剩餘時間的經常性公司開支將保持在每季度 900 萬至 1000 萬美元左右。

  • Total capital spending for the quarter was approximately $32 million, with the majority related to select HFS South asset acquisitions focused on increasing capacity to appropriately match growing customer demand. We expect a more moderate pace of capital spending through the remainder of the year, excluding potential acquisitions. We ended the quarter with $42 million of cash and over $167 million of liquidity with 0 borrowings under the company's $125 million revolving credit facility and a net leverage ratio of 0.5x. As we previously announced on March 15, we partially redeemed $125 million of the 9.5% senior secured notes, which we view as a high-risk cash return.

    本季度總資本支出約為 3200 萬美元,其中大部分與精選的 HFS South 資產收購有關,重點是增加產能以適當滿足不斷增長的客戶需求。我們預計在今年剩餘時間內資本支出的步伐將更加溫和,不包括潛在的收購。本季度結束時,我們擁有 4200 萬美元的現金和超過 1.67 億美元的流動資金,在公司 1.25 億美元的循環信貸額度下借款為零,淨槓桿率為 0.5 倍。正如我們之前在 3 月 15 日宣布的那樣,我們部分贖回了 1.25 億美元的 9.5% 優先擔保票據,我們認為這是高風險的現金回報。

  • As it relates to the outstanding senior notes, we continue to evaluate a range of possible liability management initiatives focused on further strengthening our financial position, while balancing the expanding pipeline of strategic growth opportunities. This approach is centered on maximizing financial flexibility, enabling us to quickly react to the value-enhancing growth opportunities as they arise.

    由於涉及未償還的優先票據,我們將繼續評估一系列可能的負債管理舉措,重點是進一步加強我們的財務狀況,同時平衡不斷擴大的戰略增長機會。這種方法的核心是最大限度地提高財務靈活性,使我們能夠在出現增值增長機會時迅速做出反應。

  • Turning to our financial outlook and capital allocation initiatives. Target's enhanced end market portfolio and contract structure has supported increased minimum revenue commitments and provided greater visibility on long-term revenue and cash flow. We believe the government's decision to issue an IDIQ contract award to our nonprofit partner solidifies the sustainability of this purpose-built facility by establishing the necessary mechanism to fund specific multiyear contract awards. Further, the government's desire to exercise the existing contract's 6-month option supports the importance of this community as the government prepares for a significant increase in demand for humanitary housing following the lifting of Title 42. We continue to work closely with our nonprofit partner and anticipate additional contract specifics related to Target's critical hospitality solutions to be finalized later this year.

    轉向我們的財務前景和資本配置計劃。 Target 增強的終端市場產品組合和合同結構支持增加最低收入承諾,並提高了長期收入和現金流的可見性。我們相信,政府決定向我們的非營利合作夥伴授予 IDIQ 合同,通過建立必要的機制來資助特定的多年合同授予,從而鞏固了這個專門建造的設施的可持續性。此外,政府希望行使現有合同的 6 個月選擇權,支持這個社區的重要性,因為政府準備在 Title 42 取消後對人道主義住房的需求大幅增加。我們繼續與我們的非營利合作夥伴密切合作,預計與 Target 關鍵酒店解決方案相關的更多合同細節將於今年晚些時候敲定。

  • Further, in response to the government's stated urgent and compelling need for additional humanitarian housing solutions, we recently acquired a strategic humanitarian asset, which we believe will allow Target to react quickly in support of the governance demand for these humanitarian solutions. Coupled with our ongoing business development efforts that have created the strongest project pipeline the company has seen in several years the company is reiterating its preliminary 2023 financial outlook, which includes minimum revenue of $525 million, maximum revenue of $710 million and minimum adjusted EBITDA of $365 million.

    此外,為了響應政府聲明的對額外人道主義住房解決方案的迫切和迫切需求,我們最近收購了一項戰略性人道主義資產,我們相信這將使 Target 能夠迅速做出反應,支持對這些人道主義解決方案的治理需求。加上我們持續的業務發展努力創造了公司幾年來最強大的項目管道,公司重申其 2023 年初步財務展望,其中包括最低收入 5.25 億美元、最高收入 7.1 億美元和最低調整後 EBITDA 365 美元百萬。

  • Excluding acquisitions, 2023 capital spending should approach more normal levels between $20 million and $30 million per year, predominantly focused on organic growth capital. The range of preliminary 2023 revenue reflects the possible contribution of variable service revenue associated with the expanded humanitarian community, along with other potential second half weighted revenue catalysts. As it relates to Target's strategic initiatives, Target is pursuing an expanding pipeline of growth opportunities and partnerships. These opportunities are designed to jointly leverage Target's operating expertise with contracting vehicles that will create a number of solutions across various U.S. government agencies for projects that support national defense, energy transition and other humanitarian projects for the U.S. government.

    不包括收購,2023 年的資本支出應接近每年 2000 萬至 3000 萬美元的更正常水平,主要集中在有機增長資本上。 2023 年初步收入的範圍反映了與擴大的人道主義社區相關的可變服務收入的可能貢獻,以及其他潛在的下半年加權收入催化劑。由於與 Target 的戰略舉措相關,Target 正在尋求不斷擴大的增長機會和合作夥伴關係。這些機會旨在共同利用 Target 的運營專長與承包工具,這些工具將為美國政府各機構的項目創建大量解決方案,以支持美國政府的國防、能源轉型和其他人道主義項目。

  • As previously stated, Target is prepared to allocate over $500 million of net growth capital to these high-return opportunities over the next several years. We are pleased with the progress of discussions for many of these projects and partnerships and have achieved tangible milestones regarding some of these large-scale projects. We look forward to providing additional updates in the coming quarters as the opportunities fully progress. With that, I will turn the call back over to Brad for his closing comments.

    如前所述,Target 準備在未來幾年內為這些高回報機會分配超過 5 億美元的淨增長資本。我們對其中許多項目和合作夥伴關係的討論取得進展感到高興,並在其中一些大型項目中取得了切實的里程碑。隨著機會的全面進展,我們期待在未來幾個季度提供更多更新。有了這個,我將把電話轉回給布拉德,聽取他的結束評論。

  • James Bradley Archer - CEO, President & Non-Independent Director

    James Bradley Archer - CEO, President & Non-Independent Director

  • Thanks, Eric. Our strong first quarter results reflect our ability to sustain momentum and continue achieving our strategic objectives. Over the past several years, we have exponentially grown the business, prudently managed our balance sheet and significantly enhanced our financial flexibility. These accomplishments have exceeded our expectations. We are excited about the operating platform we have created and are focused on pursuing an expanding pipeline of growth opportunities while continuing to accelerate value creation for our shareholders. I appreciate everyone joining us on the call today, and thank you again for your interest in Target Hospitality.

    謝謝,埃里克。我們強勁的第一季度業績反映了我們保持勢頭並繼續實現戰略目標的能力。在過去的幾年裡,我們的業務呈指數增長,審慎地管理我們的資產負債表並顯著提高了我們的財務靈活性。這些成績超出了我們的預期。我們對我們創建的運營平台感到興奮,並專注於尋求不斷擴大的增長機會渠道,同時繼續加速為我們的股東創造價值。我感謝今天加入我們的每個人,並再次感謝您對 Target Hospitality 的關注。

  • Operator

    Operator

  • We will now begin the question-and-answer session. (Operator Instructions) The first question comes from Scott Schneeberger from Oppenheimer.

    我們現在開始問答環節。 (操作員說明)第一個問題來自 Oppenheimer 的 Scott Schneeberger。

  • Daniel Erik Hultberg - Associate

    Daniel Erik Hultberg - Associate

  • It's Daniel on for Scott. Could you guys please elaborate on the May 5 update related to the work statement, please?

    丹尼爾替斯科特上場。請各位大神詳細說說5月5日更新的相關工作說明好嗎?

  • James Bradley Archer - CEO, President & Non-Independent Director

    James Bradley Archer - CEO, President & Non-Independent Director

  • Look, what we talked about there is a performance work statement. What that is, it comes out before the task order. But it's describing what's going to be in this task order. It sets out the requirements, what we will submit to the government into our partner. And reading this performance work statement it's very material aligned to what we're already providing. So we're happy to see that. So look, at some point here over the next few months, this task order will come out, we will submit to that, and then an award will be made. So this is just really the next step that we've been waiting on to get that out there and get a long-term agreement.

    看,我們談的是績效工作聲明。那是什麼,它在任務命令之前出現。但它描述了此任務順序中的內容。它規定了我們將向政府提交給我們的合作夥伴的要求。閱讀這份績效工作說明,它與我們已經提供的內容非常吻合。所以我們很高興看到這一點。所以看,在接下來幾個月的某個時候,這個任務單會出來,我們會提交給它,然後會做出獎勵。所以這真的是我們一直在等待的下一步,以實現這一目標並達成長期協議。

  • Daniel Erik Hultberg - Associate

    Daniel Erik Hultberg - Associate

  • And with Title 42 removal, has there been many conversations about removing the warm status of the Pecos facility?

    隨著 Title 42 的移除,是否有很多關於移除 Pecos 設施的溫暖狀態的對話?

  • James Bradley Archer - CEO, President & Non-Independent Director

    James Bradley Archer - CEO, President & Non-Independent Director

  • Yes. So specifically on PCC, we've been in talks with them. There's been some calls about moving back into hot status. Nothing yet has been given to us on that other than the calls and conversations coming in, asking us how quickly we could ramp that up in anticipation of Title 42 going away and the need for those beds to be filled.

    是的。因此,特別是在 PCC 上,我們一直在與他們進行談判。有人呼籲重新進入熱門狀態。除了打來的電話和談話之外,我們還沒有得到任何關於這方面的信息,詢問我們在 Title 42 消失的預期以及需要填補這些床位的情況下,我們可以多快地提高它。

  • Furthermore, just across the board, I know there's probably going to be this question on Title 42. Just the amount of conversations we're having with different agencies than or about PCC, -- they're staggering. There's been lots of them over the past few weeks, asking what we can do for them. So active conversations going on across the board through different agencies as well as for the PCC.

    此外,就整體而言,我知道標題 42 可能會有這個問題。除了 PCC 之外,我們與不同機構進行的對話數量之多令人震驚。在過去的幾周里,有很多人問我們能為他們做些什麼。因此,通過不同機構以及 PCC 進行全面的積極對話。

  • Daniel Erik Hultberg - Associate

    Daniel Erik Hultberg - Associate

  • And regarding the strategic asset purchase you made in the quarter related to the government segment. Can you please elaborate that a little bit and help us think about the financial implications and when we may get an update on that? And the second part of the question is the CapEx spend of EUR 31 million in the quarter, the HFS South segment, if you could please help us think about how we should view that going forward as well.

    關於您在本季度進行的與政府部門相關的戰略資產購買。您能否詳細說明一下並幫助我們考慮財務影響以及我們何時可以獲得更新?問題的第二部分是本季度 3100 萬歐元的資本支出支出,即 HFS South 部分,請您幫助我們思考我們應該如何看待未來的發展。

  • Eric T. Kalamaras - Executive VP & CFO

    Eric T. Kalamaras - Executive VP & CFO

  • So regarding the government asset. I think as you know, there has been a consistent need and desire for additional influx capacity in space. That's been well stated by the government, and we keep hearing that same theme. What we chose to do was acquire a strategic asset right asset that was priorly in the use for similar sort of capacity and really to try to offer the government a more immediate solution or other influx opportunities because we know that additional influx sites are something that they're trying to evaluate as part of being in the extension of the permanent portfolio.

    所以對於政府資產。我想正如你所知,一直需要和渴望增加太空的流入能力。政府已經很好地說明了這一點,我們不斷聽到同樣的主題。我們選擇做的是收購一項戰略資產權資產,該資產之前用於類似的容量,並真正試圖為政府提供更直接的解決方案或其他湧入機會,因為我們知道額外的湧入地點是他們需要的東西'試圖評估作為永久投資組合擴展的一部分。

  • So I want to give them lots of different options, lots of different geographic opportunities, et cetera. So that was the purpose of that. But at this point in time, look, that very well can be part of the IDIQ and effectively the performance work statement, right? So in addition to what we have today. So I'm not saying that will be the case, but certainly could be. That was one of the reasons why we wanted to strategically acquire that. So as it relates to a cash flow contribution, what I would say is nothing to report on that yet, although we're hopeful that at some point here in the near future, we have something specific that we can say.

    所以我想給他們很多不同的選擇,很多不同的地理機會,等等。這就是這樣做的目的。但在這個時候,你看,這很好地成為 IDIQ 的一部分,並且有效地成為績效工作陳述,對吧?所以除了我們今天所擁有的。所以我並不是說會是這樣,但肯定會是這樣。這就是我們想要戰略性收購它的原因之一。因此,由於它與現金流量貢獻有關,我想說的是目前還沒有什麼可報告的,儘管我們希望在不久的將來的某個時候,我們可以說一些具體的事情。

  • Specifically to your question regarding the Permian transaction, we have talked for some time that we felt like we were becoming a little bit net short in our capacity. So we want to take the opportunity to go ahead and increase and expand the market share that we have in the Permian Basin and did so with an asset that we've been looking at for a while. And so we feel like that was a nice addition to the portfolio. It comes to current cash flow. It's not a super large transaction, as you can see, but it's an important one and one that continues to give us additional breadth of additional customers and defend that market share.

    具體到你關於二疊紀交易的問題,我們已經討論了一段時間,我們覺得我們的能力變得有點淨空頭。因此,我們希望藉此機會繼續增加和擴大我們在二疊紀盆地的市場份額,並通過我們一直在尋找的資產來實現這一目標。所以我們覺得這是對產品組合的一個很好的補充。它涉及到當前的現金流。正如您所看到的,這不是一筆超大的交易,但它是一項重要的交易,它繼續為我們提供更多的額外客戶並捍衛該市場份額。

  • So I wouldn't -- from a modeling perspective, it's a such size that I wouldn't describe do much with them in terms of your modifications on EBITDA because we are still integrating that asset, and we have some expense from that. But look, I think it's a nice growth opportunity for us and we'll continue to create those tuck-ins as we see fit in the future.

    所以我不會 - 從建模的角度來看,它的規模如此之大,以至於我不會在您對 EBITDA 的修改方面對他們做太多的描述,因為我們仍在整合該資產,並且我們從中得到了一些費用。但是,我認為這對我們來說是一個很好的增長機會,我們將在未來繼續創造我們認為合適的收入。

  • James Bradley Archer - CEO, President & Non-Independent Director

    James Bradley Archer - CEO, President & Non-Independent Director

  • Let me just add one thing on the strategic facility acquisition Eric talked about, when we first did this, it was more to continue to expand the ICS. Kind of what's evolved out of this is a lot of other conversations with multiple agencies from CPP to others in the government. So once you acquire this, we do a design, we go out and we lay this out in front of different agencies with Table 42 up on us going away. Lots of increased awareness about this facility, multiple discussions being had throughout different agencies.

    關於 Eric 談到的戰略設施收購,我再補充一點,當我們第一次這樣做時,更多的是繼續擴大 ICS。從 CPP 到政府其他機構的多個機構之間的許多其他對話,從中演變而來。因此,一旦您獲得了它,我們就會進行設計,然後出去並將其展示在不同的機構面前,表 42 就在我們離開的時候。對該設施的認識大大提高,不同機構進行了多次討論。

  • So while we talk ICF, I wouldn't be surprised that this ends up maybe even something else at this point. So -- but to Eric's point, to have it, to have it ready for us to be able to respond quickly. That's how you need to be set and ready on these large types of projects to help the government, especially in times like this. So we think this will help us to do that.

    因此,當我們談論 ICF 時,我不會感到驚訝的是,這最終可能會在這一點上什至是其他事情。所以——但就 Eric 的觀點而言,要準備好它,讓我們能夠快速響應。這就是您需要為這些大型項目做好準備並為政府提供幫助的方式,尤其是在這樣的時期。所以我們認為這將幫助我們做到這一點。

  • Operator

    Operator

  • The next question comes from Greg Gibas from Northland Securities.

    下一個問題來自 Northland Securities 的 Greg Gibas。

  • Gregory Thomas Gibas - VP & Senior Research Analyst

    Gregory Thomas Gibas - VP & Senior Research Analyst

  • Congrats on the strong results in Q1. I wanted to just ask your -- do you -- I guess maybe the breakout between variable and fixed revenue on the humanitarian side in the quarter? And I guess just wondering if anything has changed with respect to your variable revenue expectations for the full year. I think it was previously $50 million is kind of a baseline assumption. Just trying to get a sense of whether anything has changed.

    祝賀第一季度的強勁業績。我只想問你 - 你 - 我想也許是本季度人道主義方面的可變收入和固定收入之間的突破?我想只是想知道您對全年的可變收入預期是否有任何變化。我認為之前 5000 萬美元是一種基線假設。只是想了解是否有任何變化。

  • Eric T. Kalamaras - Executive VP & CFO

    Eric T. Kalamaras - Executive VP & CFO

  • Yes, sure. So there was not a -- it's not a large variable component for the quarter. Certainly, we would always -- we would like to see that higher, right? It was what we would see to be at the minimum levels on that. But I want to refrain from giving specific numbers on that, Greg. I think the important point is that we expected a -- this is kind of the seasonal slowdown, right? We got that that was actually very much in line. I think the thing that we have to wait for now is with Title 42, so many people are being held at the border that I think it's the question as to how quickly we move into hot status and then to what extent.

    是的,當然。所以沒有 - 它不是本季度的一個大的可變部分。當然,我們總是——我們希望看到更高,對吧?這是我們將看到的最低水平。但我不想給出具體數字,格雷格。我認為重要的一點是我們預計 - 這是一種季節性放緩,對吧?我們知道這實際上非常符合。我認為我們現在必須等待的是 Title 42,這麼多人被關押在邊境,我認為問題是我們要多快進入熱點狀態,然後到什麼程度。

  • So because of that and because we allocated approximately $50 million of variable revenue through the year, -- and because of the surge that we see during the warm summer months and into the early fall time period. And we just don't know what the extent of that is going to be. And for that reason, we've chosen not to change anything as it relates to our revenue outlook. Now frankly, I just think it's too early. We were expecting somewhere in the neighborhood of only 10% of the variable revenue contribution to be the first -- roughly in the first, call it, quarter and a half anyway. And so we -- my point is we've eaten very little into that, and there's a lot of upside opportunities still left through year. Hasn't changed one bit.

    因此,正因為如此,因為我們全年分配了大約 5000 萬美元的可變收入,而且因為我們在溫暖的夏季和初秋期間看到的激增。我們只是不知道它的範圍是什麼。出於這個原因,我們選擇不改變任何與我們的收入前景相關的東西。坦率地說,我只是認為現在還為時過早。我們預計只有 10% 左右的可變收入貢獻是第一個——大致是第一個,無論如何,稱之為四分之一半。所以我們——我的意思是我們對此吃得很少,而且今年還有很多上行機會。一點都沒變。

  • No. And look, in the concept between -- when we set the contract jointly with our nonprofit partner and at the request of the government, was for this minimum revenue component to keep the facility ready and waiting for when the surge happens. And those are -- look, that's the definition of the influx capacity. And so we are ready and waiting for that. And when that revenue comes ahead, it can be meaningful. So for that reason, has the timing shifted perhaps to a little more back half weighted, sure. Would have expected maybe a little bit more by now, but frankly, not alarmed by that at all.

    不,看,在概念之間 - 當我們與我們的非營利合作夥伴共同製定合同並應政府的要求時,這個最低收入部分是為了讓設施準備就緒並等待激增發生。那些是 - 看,這就是流入能力的定義。所以我們已經準備好並等待它。當收入提前到來時,它可能是有意義的。因此,出於這個原因,可以肯定的是,時間可能會轉移到稍微偏後一點。本來預計現在可能會多一點,但坦率地說,對此一點也不擔心。

  • Gregory Thomas Gibas - VP & Senior Research Analyst

    Gregory Thomas Gibas - VP & Senior Research Analyst

  • Great. Really appreciate the color helps a lot and kind of how you're thinking about it. And yes, I do realize that, that variable is a small component compared to the fixed. I was going to ask on kind of getting back to that hot status from warm to thaw, but I think you kind of already addressed that in discussions there. Regarding, I guess, the -- another step forward towards finalizing that multiyear contract, you mentioned being one of the final steps before completion. Can you maybe discuss what the remaining steps we need to see are before we get that multi-contract extension finalized?

    偉大的。真正欣賞這種顏色對你如何看待它有很大幫助。是的,我確實意識到,與固定變量相比,該變量是一個很小的組成部分。我本來想問一下如何從暖和到解凍回到那種熱狀態,但我認為你已經在討論中解決了這個問題。關於,我想,向最終確定多年合同邁出的又一步,你提到這是完成前的最後步驟之一。在我們最終確定多合約擴展之前,您能否討論一下我們需要看到的剩餘步驟是什麼?

  • James Bradley Archer - CEO, President & Non-Independent Director

    James Bradley Archer - CEO, President & Non-Independent Director

  • Yes. Look, it goes from the PWS to the performance work statement to actually putting in our numbers on an initial task order, right? The government will issue this task order. We will put our RFQ in for that, if you will, our bid. And then an award, what we would think towards the latter part of the third quarter.

    是的。看,它從 PWS 到績效工作聲明,再到實際將我們的數字放在初始任務訂單上,對嗎?政府將發布此任務令。如果您願意,我們會將我們的 RFQ 放入我們的投標中。然後是一個獎項,我們對第三季度後半部分的看法。

  • Eric T. Kalamaras - Executive VP & CFO

    Eric T. Kalamaras - Executive VP & CFO

  • Yes. I think the one thing, Greg, that I would add in addition to Brad's comments is we -- when you take a step back, if you think about the performance of work statement, what that is, is further defining any scope modifications, right, to which, and this is important, to which there weren't any. And so -- and that's an important point, right, because I think that allows -- that fit that dovetails really nicely with the facility today. As we see it, something that these incremental needs to be done today, which I think helps feed this process along.

    是的。 Greg,我認為除了 Brad 的評論之外我要補充的一件事是我們 - 當你退後一步,如果你考慮工作陳述的表現,那就是進一步定義任何範圍修改,對吧,這很重要,沒有任何。所以——這是一個重要的觀點,對吧,因為我認為這允許——這與今天的設施非常吻合。正如我們所看到的,這些增量需要在今天完成,我認為這有助於推動這一進程。

  • James Bradley Archer - CEO, President & Non-Independent Director

    James Bradley Archer - CEO, President & Non-Independent Director

  • Design the same warm hot status, the number of.

    設計相同的暖熱狀態,數量。

  • Eric T. Kalamaras - Executive VP & CFO

    Eric T. Kalamaras - Executive VP & CFO

  • Everything is exactly that... So it's really a function of getting -- working through the task order process. And look, I think -- so one could logically say, okay, well, why does it need to be a few months or months down the road? And part of the reason is because, as I mentioned earlier, the government wants to continue to look at their influx sites. And so expanding those sites, it's not bad then.

    一切都是這樣......所以它真的是一個功能 - 完成任務訂單流程。看,我想——所以人們可以合乎邏輯地說,好吧,為什麼需要幾個月或幾個月的時間?部分原因是因為,正如我之前提到的,政府希望繼續關注他們的湧入地點。所以擴大這些網站,那還不錯。

  • James Bradley Archer - CEO, President & Non-Independent Director

    James Bradley Archer - CEO, President & Non-Independent Director

  • They could come back a lot more of this, not just one.

    他們可以回來更多,而不僅僅是一個。

  • Eric T. Kalamaras - Executive VP & CFO

    Eric T. Kalamaras - Executive VP & CFO

  • Yes. And I think that's the important point. This isn't just about PCC. This is about the overall influx site demand, okay, over and above PCC. And so there's more -- there's more going on than just how our specific asset today. And to Brad's point, they very well could come back and say, it's not one, it's 2 or 3.

    是的。我認為這很重要。這不僅僅是關於 PCC。這是關於整體湧入網站的需求,好吧,超過 PCC。所以還有更多 - 除了我們今天的特定資產之外,還有更多的事情要做。就 Brad 而言,他們很可能會回來說,這不是一個,而是 2 個或 3 個。

  • Gregory Thomas Gibas - VP & Senior Research Analyst

    Gregory Thomas Gibas - VP & Senior Research Analyst

  • If I could follow up, too, on that -- your comments relating to that recent strategic asset acquisition. It seems to make a lot of sense just given what you're hearing from the government still being that short capacity, and there being a lot of demand there. But you kind of said don't expect anything in terms of contributions to financials this year. Kind of guessing that are you in discussions right now with the government in terms of how to use that? And just trying to think about if we're not expecting to see something near term when you would think about timing of that facility beginning to be used?

    如果我也可以跟進 - 你對最近的戰略資產收購的評論。考慮到你從政府那裡聽到的仍然是產能不足,而且那裡有很多需求,這似乎很有意義。但你有點說不要指望今年對財務的貢獻。有點猜測你現在正在與政府討論如何使用它嗎?只是想想想,如果我們不希望在短期內看到一些東西,你會考慮開始使用該設施的時間嗎?

  • James Bradley Archer - CEO, President & Non-Independent Director

    James Bradley Archer - CEO, President & Non-Independent Director

  • Yes, I'll touch on just conversations. Yes, I mentioned this earlier, we are having multiple discussions with different agencies on this facility. Lots of activity there and a high level of interest is kind of where I'll leave it. And that interest has just kind of picked up even more so with May 11, right around the corner and Title 42 going away. So while we don't have anything in the numbers though, at some point, this is just not a real estate acquisition. It actually becomes accretive to us at some point. That's the goal, right?

    是的,我只談談話。是的,我之前提到過這一點,我們正在與不同機構就此設施進行多次討論。那裡有很多活動和高度的興趣是我要離開的地方。隨著 5 月 11 日的臨近和 Title 42 的消失,這種興趣更加濃厚。因此,雖然我們沒有任何數字,但在某些時候,這並不是一次房地產收購。它實際上在某些時候對我們來說是增值的。這就是目標,對吧?

  • Eric T. Kalamaras - Executive VP & CFO

    Eric T. Kalamaras - Executive VP & CFO

  • Yes. And Greg, I would say -- if I misspoke and said don’t expect anything this year, that wasn't necessarily my intention. We may or may not. I think the point is we -- look, we have the asset running available. So what I'm saying is don’t put anything now, right? But that doesn't mean, to Brad's point, it doesn't mean something can't happen as we work through this performance on work process, it doesn't mean something can't happen with that asset as part of that process.

    是的。格雷格,我想說——如果我說錯了,說今年不要期待任何事情,那不一定是我的本意。我們可能會也可能不會。我認為關鍵是我們 - 看,我們有可用的資產。所以我的意思是現在不要放任何東西,對嗎?但這並不意味著,在 Brad 看來,這並不意味著當我們在工作流程中完成這一績效時,某些事情不會發生,這並不意味著作為該流程的一部分,該資產不會發生某些事情。

  • Operator

    Operator

  • The next question comes from (inaudible) 27:49 from Stifel.

    下一個問題來自 Stifel 的(聽不清)27:49。

  • Unidentified Analyst

    Unidentified Analyst

  • So just to get a start here, just based on earnings and (inaudible) 28:02 that we've been hearing, it appears activity in the Permian is likely about flat at current levels for the balance of '23. Would you say that's in line with your view? And can you talk about demand in the Permian and expectations for activity over the next few quarters?

    因此,從這裡開始,僅根據我們聽到的收益和(聽不清)28:02,看來二疊紀的活動在 23 年的剩餘時間裡可能與當前水平基本持平。你說這符合你的看法嗎?你能談談二疊紀的需求和對未來幾個季度活動的預期嗎?

  • Eric T. Kalamaras - Executive VP & CFO

    Eric T. Kalamaras - Executive VP & CFO

  • Sure, sure. Sure. So look, as we've said probably for the past few quarters, we came off some pretty good growth. And we've seen that start to level up. I do think from a -- from a gross profit perspective, I would say that it's probably steady as she goes. I think we probably continue to see some very slight improvement that continues to matriculate. This past quarter, as I mentioned, we did have some integration expenses from the asset purchase. So that did have an impact to bring that margin a little bit and increasing costs. But beyond that, look, I think that business is a fantastic business. It continues to generate a significant amount of cash for us. As in the marketplace, they're -- as there's additional consolidation as they continue to the producers and integrated companies continue to maintain their capital spending.

    一定一定。當然。所以看,正如我們可能在過去幾個季度所說的那樣,我們取得了相當不錯的增長。我們已經看到它開始升級。我確實認為 - 從毛利的角度來看,我會說它可能會隨著她的發展而穩定。我認為我們可能會繼續看到一些非常輕微的改進,這些改進會繼續被錄取。正如我所提到的,在上個季度,我們確實有一些來自資產購買的整合費用。因此,這確實對帶來一點利潤和增加成本產生了影響。但除此之外,看,我認為這個行業是一項了不起的行業。它繼續為我們產生大量現金。就像在市場上一樣,它們是——隨著它們繼續向生產商和綜合公司繼續維持其資本支出,還有更多的整合。

  • They, too, are expecting fairly low to single mid-digit growth as well. So I think it tends to follow along with that. But I think that's just fine for that business. It actually works out really, really well for us. I think in many ways, we prefer that type of environment right now, we'll continue to allocate capital on the government side as well. And then we can really do both at the same time here.

    他們也預計同樣會出現相當低至個位數的增長。所以我認為它往往會隨之而來。但我認為這對那家公司來說很好。它實際上對我們來說真的非常好。我認為在很多方面,我們現在更喜歡那種環境,我們也會繼續在政府方面分配資金。然後我們真的可以在這裡同時做這兩件事。

  • James Bradley Archer - CEO, President & Non-Independent Director

    James Bradley Archer - CEO, President & Non-Independent Director

  • We're excited in that business as always -- it's something that we've operated for a long time. It's a great customer base. It's something that just keeps on giving. And it's a great area to be in. And unlike what you say, it's not going to be hockey-stick growth out there, but I think it will be consistent. I think the rates will come up over time and as inflation subside but it takes a while if we have these long-term contracts to continue to drive those rates up.

    我們一如既往地對這項業務感到興奮——這是我們經營了很長時間的事情。這是一個很大的客戶群。這是不斷給予的東西。這是一個很好的領域。與你所說的不同,它不會像曲棍球棒一樣增長,但我認為它會是一致的。我認為利率會隨著時間的推移和通貨膨脹的消退而上升,但如果我們有這些長期合同來繼續推動這些利率上升需要一段時間。

  • To Eric's one point, you mentioned some costs there that won't be ongoing. It was a onetime hit. So that's definitely downplayed on the overall profits there. But I think this continues to tick up at a decent rate.

    對於埃里克的一點,你提到了一些不會持續的成本。這是一次性的成功。所以這肯定被低估了那裡的整體利潤。但我認為這會繼續以不錯的速度上升。

  • Eric T. Kalamaras - Executive VP & CFO

    Eric T. Kalamaras - Executive VP & CFO

  • The one thing I would say that we haven't touched on the call this morning is we do look to continue to expand the HFS business though, in other areas, right? And we've talked before about some of our commercial diversification efforts, and that's really starting to take hold. And so -- and my point in that is all is not lost in so far as growth in that business. What we're saying in HFS South is that we expect it to be pretty steady and that term is true. But however, there are some other things we're looking at that are very nice growth drivers there. So hopefully, more to come on those over time. But there's a lot to continue to do in the HFS segment.

    我要說的一件事是我們今天早上沒有觸及電話會議,我們確實希望在其他領域繼續擴大 HFS 業務,對吧?我們之前已經談過我們的一些商業多元化努力,這真的開始站穩腳跟了。因此——我的觀點是,就該業務的增長而言,一切都沒有丟失。我們在 HFS South 中所說的是我們希望它非常穩定並且這個詞是正確的。但是,我們正在尋找的其他一些東西是非常好的增長動力。所以希望,隨著時間的推移,會有更多的人出現。但在 HFS 領域還有很多工作要做。

  • James Bradley Archer - CEO, President & Non-Independent Director

    James Bradley Archer - CEO, President & Non-Independent Director

  • Lost on the fact of when we added more government, we took up some of the HFS rooms, right. So when you look at the company as a whole, totally different, much more profitable than it was in the past few years. So we like the direction and the mix at this point where it's at.

    忘記了當我們增加更多政府時,我們佔用了一些 HFS 房間,對吧。所以當你把公司看成一個整體時,完全不同,比過去幾年更有利可圖。所以我們喜歡現在的方向和混合。

  • Operator

    Operator

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

    我們的問答環節到此結束。我想將會議轉回 Brad Archer 的閉幕詞。

  • James Bradley Archer - CEO, President & Non-Independent Director

    James Bradley Archer - CEO, President & Non-Independent Director

  • Thanks again for joining us on our call today, and we look forward to speaking again in August. Thank you.

    再次感謝您今天加入我們的電話會議,我們期待在 8 月再次發言。謝謝。