Target Hospitality Corp (TH) 2023 Q2 法說會逐字稿

Hello, and welcome to Target Hospitality's Second Quarter 2023 Earnings Call. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would like now to turn the conference over to Mark Schuck, Senior Vice President, Investor Relations and Financial Planning. Please go ahead.

您好，歡迎參加 Target Hospitality 2023 年第二季度財報電話會議。 （操作員說明）今天的演示結束後，將有機會提問。請注意此事件正在被記錄。我現在將會議交給投資者關係和財務規劃高級副總裁馬克·舒克 (Mark Schuck)。請繼續。

Thank you. Good morning, everyone, and welcome to Target Hospitality's Second Quarter 2023 Earnings Call. The press release we issued this morning, outlining our second 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。大家早上好，歡迎參加 Target Hospitality 2023 年第二季度財報電話會議。我們今天早上發布的概述第二季度業績的新聞稿可以在我們網站的投資者部分找到。此外，本次電話會議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. This 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, August 9, 2023.

請注意新聞稿中有關前瞻性陳述的警告性語言。同樣的語言也適用於今天的電話會議上的發言。本次電話會議將包含時間敏感信息以及前瞻性陳述，這些信息僅截至今天（2023 年 8 月 9 日）準確。

The 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.

Target Hospitality 明確表示不承擔更新或修改本次電話會議中包含的信息以反映今天之後可能發生的事件或情況的義務，除非適用法律要求。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 向 SEC 定期提交的文件。

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.

我們將在今天的電話會議上討論非公認會計準則財務指標。請參閱我們網站投資者部分發布的收益報告中的表格，查找今天電話會議中引用的非公認會計原則財務指標及其相應的公認會計原則指標的調節表。

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

今天的電話會議將由總裁兼首席執行官 Brad Archer 主持。其次是執行副總裁兼首席財務官 Eric T. Kalamaras。在他們準備好發言後，我們將開始提問。我現在將把電話轉給我們的首席執行官布拉德·阿徹 (Brad Archer)。

Thanks, Mark. Good morning, everyone, and thank you for joining us on the call today. Our record-setting second quarter results reflect the positive momentum we have sustained over the past year. We have established significant operational flexibility and scale, enabling us to appropriately match customer demand while continuing to generate strong financial results. We continue to benefit from our material expanded presence, providing critical hospitality solutions to the U.S. government.

謝謝，馬克。大家早上好，感謝您今天加入我們的電話會議。我們創紀錄的第二季度業績反映了我們在過去一年中保持的積極勢頭。我們已經建立了顯著的運營靈活性和規模，使我們能夠適當滿足客戶需求，同時繼續產生強勁的財務業績。我們繼續受益於我們的物質擴張，為美國政府提供關鍵的酒店解決方案。

This intentional focus has resulted in over 70% of second quarter revenue being derived from committed contracts backed by the United States government, with 78% of second quarter revenue having minimum revenue commitment. These elements supported over $368 million of discretionary cash flow over the last 12 months, representing an impressive discretionary cash flow yield to revenue of over 61% over that time. This materially enhanced operating platform has allowed Target to efficiently serve its world-class customers while positioning the company to quickly respond to strategic growth opportunities. all while continuing to generate impressive operating income. 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.

這種有意的關注導致第二季度超過 70% 的收入來自美國政府支持的承諾合同，其中 78% 的第二季度收入具有最低收入承諾。這些要素在過去 12 個月內支持了超過 3.68 億美元的可自由支配現金流，這意味著在此期間可自由支配現金流對收入的收益率超過 61%，令人印象深刻。這一顯著增強的運營平台使塔吉特能夠高效地服務於其世界一流的客戶，同時使公司能夠快速響應戰略增長機會。同時繼續創造可觀的營業收入。在我們的 HFS South 部門，我們仍然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，其中許多客戶已經是十多年來的客戶。

As a result, Target continues to benefit from consecutive quarterly increases in customer demand, resulting in an 18% year-over-year increase in utilization with consistent customer renewal rates of over 90%, which we have enjoyed for over 7 years. We continue to benefit from these strong demand fundamentals in the more fully optimized network we have created over the past year. These elements have supported a more normalized pricing environment, and we anticipate continued positive momentum in the coming quarters.

因此，Target 繼續受益於客戶需求的連續季度增長，利用率同比增長 18%，客戶續訂率持續超過 90%，我們已經享受了 7 年多的這種優勢。在我們過去一年創建的更全面優化的網絡中，我們繼續受益於這些強勁的需求基本面。這些因素支持了更加正常化的定價環境，我們預計未來幾個季度將繼續保持積極勢頭。

Regarding our government segment, our purpose-built portfolio of assets continue to serve the critical humanitarian aid mission 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. Target's communities are frequently visited by the agencies they serve as well as adjacent agencies and consistently received the highest government ratings on all of their operating specifications and metrics. This is a testament to the world-class solutions we have created to serve the specific needs of the U.S. government's humanitarian mission.

關於我們的政府部門，自2014 年我們第一個社區建立以來，我們專門構建的資產組合繼續服務於其旨在支持的關鍵人道主義援助任務，同時超出了美國政府合作夥伴的期望。塔吉特的社區經常被訪問受到他們所服務的機構以及鄰近機構的好評，並在所有運營規範和指標方面始終獲得政府的最高評級。這證明了我們為滿足美國政府人道主義使命的特定需求而創建的世界級解決方案。

Regarding our existing Pecos Children's Center community, as we previously announced, several key milestones have been achieved related to securing a long-term contract for this community. Our existing nonprofit partner was awarded an indefinite delivery, indefinite quantity contract. which establishes the contracting vehicle required by the U.S. government to appropriately fund multiyear contract awards. Importantly, the performance of work statement coinciding with the IDIQ contract materially aligns with the existing specifications and capabilities of PCC.

關於我們現有的佩科斯兒童中心社區，正如我們之前宣布的那樣，在與該社區簽訂長期合同方面已經實現了幾個關鍵里程碑。我們現有的非營利合作夥伴獲得了一份無限期交付、無限數量的合同。它建立了美國政府要求的承包工具，為多年期合同授予提供適當的資金。重要的是，與 IDIQ 合同一致的工作聲明的績效與 PCC 的現有規範和功能實質上一致。

This is significant as our community has established a blueprint for the government's desired influx care facility sites. Further, in connection with the performance of work statement, the government outlined their desire to increase their ICF capacity to accommodate up to 10,000 individuals requiring a total of 3 influx care facility contract awards or 2 in addition to the established PCC community. As the government has continually stated, additional humanitarian housing capacity is urgently needed to manage the increasing number of unaccompanied children arriving into the U.S.

這非常重要，因為我們的社區已經為政府所需的湧入護理設施地點制定了藍圖。此外，在工作聲明的績效方面，政府概述了他們希望增加ICF 容量，以容納多達10,000 人，需要總共3 個湧入護理設施合同授予，或者除了已建立的PCC 社區之外還需要2 個合同授予。正如政府不斷表示的那樣，迫切需要額外的人道主義住房容量來管理越來越多抵達美國的無人陪伴兒童。

These ICF sites are critical to the U.S. government and paramount in their ability to adequately support surge capacity in excess of existing shelter capacity, which has remained static for many years. In response to the government's stated desire to increase their ICF capacity, we have partnered with multiple established government service providers and jointly submitted several solutions for new ICF sites. These new ICS sites are in addition to the established PCC community and our ongoing relationship with our nonprofit partner.

這些 ICF 站點對於美國政府至關重要，並且至關重要，因為它們有能力充分支持超過現有避難所容量的激增容量，而現有避難所容量多年來一直保持不變。為了響應政府增加 ICF 容量的明確願望，我們與多家成熟的政府服務提供商合作，共同提交了針對新 ICF 站點的多個解決方案。這些新的 ICS 站點是對已建立的 PCC 社區以及我們與非營利合作夥伴的持續關係的補充。

In summary, we have positioned Target to participate in a much larger influx care opportunity set than just PCC. We remain committed to our existing nonprofit partner and the exceptional community and service offering we have jointly created at the Pecos facility. We have also expanded our strategic government service partnerships and jointly submitted several bids across numerous geographic locations for the creation of new ICF solutions for the U.S. government.

總之，我們將 Target 定位為參與比 PCC 更大的湧入護理機會集。我們仍然致力於現有的非營利合作夥伴以及我們在 Pecos 設施共同創建的卓越社區和服務。我們還擴大了我們的戰略政府服務合作夥伴關係，並在多個地理位置聯合提交了多項投標，為美國政府創建新的 ICF 解決方案。

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

現在，我將把電話轉給埃里克，詳細討論我們第二季度的財務業績、擴大人道主義重點和資本分配計劃。

Thank you, Brad. In the second quarter, we continue to benefit from our established operational scale and ability to align with customers demand and consistently deliver strong financial results. Second quarter 2023 total revenue was $144 million, and adjusted EBITDA was approximately $91 million.

謝謝你，布拉德。在第二季度，我們繼續受益於我們既定的運營規模和滿足客戶需求並持續交付強勁財務業績的能力。 2023 年第二季度總收入為 1.44 億美元，調整後 EBITDA 約為 9100 萬美元。

Our Government segment produced quarterly revenue of approximately $101 million compared to $75 million in the same period last year. The significant increase was attributable to the expanded PCC community. Our HFS segments delivered quarterly revenue of $42 million compared to $35 million in the same period last year. This increase was driven by sustained momentum in customer demand for Target's premium service offerings. Current 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.

我們的政府部門季度收入約為 1.01 億美元，而去年同期為 7500 萬美元。這一顯著增長歸因於 PCC 社區的擴大。我們的 HFS 部門季度收入為 4200 萬美元，而去年同期為 3500 萬美元。這一增長是由客戶對塔吉特優質服務產品的持續需求推動的。本季度當前的企業支出約為 900 萬美元，我們預計今年剩餘時間內每季度的經常性企業支出將保持在 900 萬至 1000 萬美元左右。

Total capital spending was approximately $16 million, with the majority related to expanding our government portfolio in anticipation of the government's request to increase their ICF network capacity. We expect a more moderate pace of capital spending through the remainder of the year excluding potential acquisitions or government contract awards. We ended the quarter with $70 million of cash and $195 million of liquidity with 0 borrowings under the company's $125 million revolving credit facility and a net leverage ratio of 0.4x.

總資本支出約為 1600 萬美元，其中大部分與擴大政府投資組合有關，以應對政府增加其 ICF 網絡容量的要求。我們預計今年剩餘時間內資本支出將更加溫和，不包括潛在的收購或政府合同授予。截至本季度末，我們擁有 7000 萬美元現金和 1.95 億美元流動資金，公司 1.25 億美元循環信貸額度下的借款為零，淨槓桿率為 0.4 倍。

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

由於與未償付的高級票據相關，我們將繼續評估一系列負債管理舉措，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快速做出反應。

Before we discuss the specifics around our expanded humanitarian opportunities, I would like to touch on the influx care facility concept and the dependent purpose in serving the government's humanitarian mission. As a reminder, the government has a network of shelter capacity that consists of smaller facilities located across the United States. All these facilities are a fraction of the size that targets existing PCC ICF community.

在我們討論有關擴大人道主義機會的具體細節之前，我想談談湧入護理設施的概念以及為政府人道主義使命服務的相關目的。提醒一下，政府擁有一個由遍布美國各地的小型設施組成的收容能力網絡。所有這些設施的規模只是現有 PCC ICF 社區規模的一小部分。

The government utilizes the shelter facilities to address those managing housing solutions for the company minors prior to occupying influx care sets. Influx care facilities are intended to manage surge capacity beyond the U.S. government's existing shelter capacity. However, PCC and the government's desire influx care network capacity play a critical and necessary role in supporting this humanitarian mission.

政府利用庇護所設施來解決那些在佔用湧入護理中心之前為公司未成年人管理住房解決方案的問題。湧入護理設施旨在管理超出美國政府現有收容能力的激增容量。然而，PCC 和政府渴望的湧入護理網絡能力在支持這一人道主義使命方面發揮著關鍵和必要的作用。

Due to the small size of individual shelter sites, the government has focused on its efforts in increasing influx capacity that is urgently needed to manage the increasing and consistent numbers of unaccompanied children entering the U.S. that could strain the government's shelter network.

由於各個避難所的規模較小，政府將重點放在增加湧入能力上，這是迫切需要的，以管理進入美國的越來越多且持續不斷的無人陪伴兒童，這可能會給政府的避難所網絡帶來壓力。

Simply stated, the influx care network is an essential element allowing the U.S. government to appropriately manage surge capacity in the efficient, humanitarian and serious manner. As a result, the occupancy at government influx care facilities, including PCC, will fluctuate with meaningful changes in occupancy over any given period of time.

簡而言之，湧入護理網絡是美國政府以高效、人道主義和認真的方式適當管理激增能力的基本要素。因此，政府湧入護理設施（包括 PCC）的入住率將隨著入住率在任何特定時期內發生有意義的變化而波動。

Now turning to our expanded humanitarian community opportunities and ongoing organic growth initiatives. To meet the desired ICF network capacity for earned company minors the United States government has indicated their intention to award a total of 3 ICF contracts supporting the population of up to 10,000 individuals. As it relates specifically to PCC, we believe the existing community and the solidified relationship with the nonprofit partner will remain a critical solution to the government's ICF capacity.

現在轉向我們擴大的人道主義社區機會和持續的有機增長舉措。為了滿足獲得的公司未成年人所需的 ICF 網絡容量，美國政府已表示打算授予總共 3 個 ICF 合同，支持最多 10,000 人的人口。由於它與 PCC 特別相關，我們相信現有社區以及與非營利合作夥伴的牢固關係仍將是政府 ICF 能力的關鍵解決方案。

Further, the alignment of existing PCC specifications and capabilities with the desired government ICF blueprint provides additional confidence as we work through ongoing contract discussions. We remain pleased with the progress and anticipate additional contract specifications to be finalized later this year. In addition, Target has strategically partnered with another established government service provider and has jointly submitted several proposals supporting approximately $1 billion of cumulative capital deployment to create additional, highly customized and purpose-built ICP solutions for the United States government.

此外，現有 PCC 規範和功能與所需的政府 ICF 藍圖的一致性為我們正在進行的合同討論提供了額外的信心。我們對進展仍然感到滿意，並預計其他合同規格將在今年晚些時候敲定。此外，Target 還與另一家知名政府服務提供商建立了戰略合作夥伴關係，並聯合提交了多項提案，支持約10 億美元的累計資本部署，為美國政府創建額外的、高度定制的、專門構建的ICP 解決方案。

Importantly, these proposed solutions expand numerous geographic locations, providing the U.S. government with maximum flexibility as they determine their desired location for new ICF sites. As a reminder, Target recently acquired strategic humanitarian assets in anticipation of this request from the U.S. government. These assets have been proposed as a viable solution to meet the government's desired increase in ICF capacity. Further, Target's established presence, providing these critical and highly customized solutions to the U.S. government is an essential element, and we believe positions Target advantageously to pursue these additional ICF opportunities.

重要的是，這些提議的解決方案擴展了許多地理位置，為美國政府在確定新 ICF 站點的所需位置時提供了最大的靈活性。提醒一下，塔吉特最近根據美國政府的這一要求收購了戰略人道主義資產。這些資產已被提議作為可行的解決方案，以滿足政府增加 ICF 容量的期望。此外，Target 已建立的影響力，為美國政府提供這些關鍵且高度定制的解決方案是一個重要因素，我們相信 Target 在尋求這些額外的 ICF 機會方面處於有利地位。

We are excited about the opportunity to expand our critical humanitarian service offering to this government and aid in the humanitarian mission. We continue to evaluate an active pipeline of strategic growth opportunities. Company is providing 2023 financial outlook, which includes revenue between $550 million and $580 million, adjusted EBITDA between $346 million and $365 million. and excluding acquisitions, 2023 capital spending should approach more normal levels between $25 million and $35 million per year, predominantly focused on organic growth capital.

我們很高興有機會擴大我們向本屆政府提供的重要人道主義服務以及對人道主義使命的援助。我們繼續評估積極的戰略增長機會。公司提供 2023 年財務展望，其中收入在 5.5 億美元至 5.8 億美元之間，調整後 EBITDA 在 3.46 億美元至 3.65 億美元之間。如果不包括收購，2023 年的資本支出應接近每年 2500 萬美元至 3500 萬美元之間的更正常水平，主要集中在有機增長資本上。

As we discussed by their very nature, ICF facilities are designed to support a dynamic population and can experience meaningful fluctuations in occupancy over any given period of time. The range of 2023 revenue reflects the adjustment of anticipated variable service revenue associated with the PCC community only for the remainder of 2023. 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 contract vehicles that will create a number of solutions across various U.S. government agencies for projects that support national defense, energy transition and humanitarian projects.

正如我們所討論的，ICF 設施的本質是為支持動態人口而設計的，並且在任何給定時間段內入住率可能會出現有意義的波動。 2023 年收入範圍反映了僅在 2023 年剩餘時間內與 PCC 社區相關的預期可變服務收入的調整。由於它與 Target 的戰略舉措相關，Target 正在尋求擴大增長機會和合作夥伴關係。這些機會旨在聯合利用塔吉特的運營專業知識和合同工具，為美國各政府機構提供多種解決方案，支持國防、能源轉型和人道主義項目。

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 discussion for many of these large-scale projects and look forward to providing additional updates in the coming quarters as the opportunities hopefully progress.

如前所述，塔吉特准備在未來幾年內向這些高回報機會分配超過 5 億美元的淨增長資本。我們對許多大型項目的討論進展感到高興，並期待在未來幾個季度隨著機會的進展提供更多更新。

With that, I'll turn the call back over to Brad for closing comments.

這樣，我會將電話轉回布拉德以徵求結束意見。

Thanks, Eric. Our record setting second quarter results are a testament to the operational efficiencies and scale we have created, enabling us to appropriately match customer demand while simultaneously generating strong financial results. We are well positioned and excited to participate in the expanding influx care opportunity set. We are confident in the exceptional community and service offering we have jointly created with our leading national nonprofit partner, and that PCC will remain a critical solution for the U.S. government.

謝謝，埃里克。我們創紀錄的第二季度業績證明了我們所創造的運營效率和規模，使我們能夠適當滿足客戶需求，同時產生強勁的財務業績。我們處於有利地位，並很高興參與不斷擴大的湧入護理機會集。我們對與領先的國家非營利合作夥伴共同創建的卓越社區和服務充滿信心，並且 PCC 將仍然是美國政府的關鍵解決方案。

In addition, we believe our new partnership and the numerous ICF solutions we have proposed create an exciting opportunity to potentially expand our critical service offering to the U.S. government. We are well positioned and remain focused on pursuing this expanded 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.

此外，我們相信我們的新合作夥伴關係和我們提出的眾多 ICF 解決方案創造了一個令人興奮的機會，有可能擴大我們向美國政府提供的關鍵服務。我們處於有利位置，並將繼續專注於尋求擴大的增長機會，同時繼續加速為股東創造價值。我感謝大家今天加入我們的電話會議，並再次感謝您對 Target Hospitality 的興趣。

(Operator Instructions) Our first question comes from Scott Schneeberger of Oppenheimer.

（操作員說明）我們的第一個問題來自 Oppenheimer 的 Scott Schneeberger。

For my first question, I'd like to inquire -- I guess, Eric, this would be for you. The guidance range adjustment low end and high end. What does that contemplate for occupancy at the Pecos facility?

對於我的第一個問題，我想詢問一下 - 我想，埃里克，這適合你。指導範圍調整低端和高端。佩科斯工廠的入住有何考慮？

When we look to modify the outlook, the regression that we stand were specifically related to the variable services revenue, right? So as we think about going forward, specifically for 2020 at this point. We and our partners certainly were anticipating variable occupancy there. than what we would have received for the first part of the year. And so I think as we look at it going forward, we're not assuming that there's any variable services revenue at this point. But I think it's prudent based on what we've seen. And I think it's safe to say that we are all somewhat surprised like that.

當我們尋求修改前景時，我們所面臨的回歸與可變服務收入特別相關，對吧？因此，當我們考慮未來時，特別是 2020 年。我們和我們的合作夥伴當然預計那裡的入住率會有所變化。比我們今年上半年收到的要多。因此，我認為，當我們展望未來時，我們不會假設目前存在任何可變的服務收入。但根據我們所看到的情況，我認為這是謹慎的。我認為可以肯定地說，我們都對此感到有些驚訝。

But having said that, nothing has changed about we know how we view the contractor certainly durability going forward. I think as we think about going and looking at all the opportunities we have ahead of us, we think about the upside of the -- there's certainly a lot of opportunity where we can certainly fit towards the high end of that, just depending on the cadence and timing of the (inaudible) those opportunities satisfy themselves.

但話雖如此，我們對承包商未來耐久性的看法並沒有改變。我認為，當我們思考並審視擺在我們面前的所有機會時，我們會考慮其好處——當然有很多機會，我們當然可以適應其中的高端，這取決於這些機會（聽不清）的節奏和時機讓他們自己滿意。

And obviously, yes, not activity at Pecos at the moment. Could you just -- given what we've seen with flows, this summer and maybe compare and contrast that to recent years past. Just give us an update on seasonality considerations and are -- is there -- it doesn't sound like it's baked into your guidance, but what you've seen with flows and your conversations with the government, do you anticipate a chance of utilization prior to year-end?

顯然，是的，目前 Pecos 沒有活動。鑑於今年夏天我們所看到的流動情況，您能否將其與近年來的情況進行比較和對比。請向我們提供有關季節性考慮因素的最新信息，並且聽起來並沒有將其納入您的指導中，但是根據您所看到的流量以及與政府的對話，您是否預計有利用機會年底之前？

Sure. So -- and I think it's too early to say -- let me say this, now we're going to say that we're not going get increased RMC there, right? I mean, I think that's always the optionality. If you recall, we can get just a week's notice as to what the government plans to do there to raise that. In fact, I would say even going back in the early summer you were having, daily calls in and around time about putting -- potentially putting material occupants that site. So that's always a possibility at any given point in time. I think it's really a function of what's happening.

當然。所以 - 我認為現在說還為時過早 - 讓我這麼說，現在我們要說我們不會在那裡增加 RMC，對吧？我的意思是，我認為這始終是可選的。如果您還記得的話，我們只需一周即可收到政府計劃採取哪些措施來提高這一水平的通知。事實上，我想說，即使回到初夏，你也會每天都會在某個時間打電話來討論放置——可能會將物質佔用者放置在該網站上。所以在任何給定的時間點這總是有可能的。我認為這確實是正在發生的事情的函數。

So let me give an example, right? So when we were looking at Title 42, there was a tremendous amount of demand, really across a number of entry points. And so I think what's happened is perhaps that's appended the timing a little bit, right? And so we'll just have to wait and see how that helps and flows over time. It's really hard to really to production.

那麼讓我舉個例子吧？因此，當我們研究 Title 42 時，發現需求量巨大，而且涉及多個切入點。所以我認為發生的事情可能是稍微增加了時間，對吧？因此，我們只能等待，看看隨著時間的推移，這會帶來什麼幫助和效果。真正投入生產確實很難。

I think maybe just to clear the air on the variable piece and utilization as it sits today. I think it's really important to kind of bifurcate those 2. Because if you look at utilization where we sit today, in Pecos, there is no correlation between utilization and the ultimate need for 10,000 ICF beds. The need is there for insurance for the government. -- looked at this 3 years ago. They did Pecos, they're moving in now to adding additional facilities as we've said in our release. But there's no correlation when you look at how many kids, if you will, are sitting in there today and the need and the change in how they're envisioning this. There's a difference on .

我想也許只是為了澄清可變件和今天的利用率。我認為將這兩者分開非常重要。因為如果你看看我們今天在 Pecos 的利用率，就會發現利用率和 10,000 個 ICF 床位的最終需求之間沒有相關性。政府需要保險。 ——三年前看過這個。他們做了 Pecos，他們現在正在增加額外的設施，正如我們在新聞稿中所說的那樣。但是，當你看看今天有多少孩子（如果你願意的話）坐在那兒，以及他們對此的需求和設想的變化時，就沒有任何相關性了。上有區別。

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

一旦它們到達那裡，我們都可以查看訂單流並看到它，然後說，好吧，它們將會 - 將是可變的 - 絕對會有一些變量。已經有很多很多年了，但這是為了湧入能力。

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

我很感激。更上一層樓，這次電話會議的一些討論涉及政府不僅關注佩科斯，還關注其他幾個地點。我想，你不能肯定地回答這個問題，因為你不知道你的政府客戶最終會做什麼。但是，您是否從與他們的單獨討論（聽不清）中獲得了某種感覺？或者所有這些（聽不清）都在那裡嗎？是不是感覺更像政府可能會將它們全部放在一起（聽不清），從而做出最終決定。並且（聽不清）

I don't know if it's on our end or year-end, but you were breaking up, but we caught probably 30%. But I think what you were asking -- do you think all 10,000 beds basically would be awarded? Or is this in isolation. I'm not -- I didn't hear the whole question. So if you can hear me good, let me just give you kind of an update on what we think about the IDIQ process. in here, okay?

我不知道是在我們年底還是年底，但你們分手了，但我們大概抓住了30%。但我想你問的是——你認為所有 10,000 個床位基本上都會被授予嗎？或者這是孤立的。我沒有——我沒有聽到整個問題。因此，如果您能聽清楚我的講話，請讓我向您介紹我們對 IDIQ 流程的最新看法。在這裡，好嗎？

Yes, I heard everything you said if you can hear me. And you got the question, do you think Pecos will be awarded in isolation and extension or all 3 being grouped together as the government considers it force award?

是的，如果你能聽到我的話，我聽到了你所說的一切。你有這樣的問題，你認為 Pecos 會單獨授予還是延期授予，還是將所有 3 個授予一起，因為政府認為這是強制授予？

Yes. And let me give you to everybody just kind of an update on where we're at in the IDIQ process. Last call, we had just received a performance of work statement. And literally, right before our call, we did not have time to go through it. Now in our release, you see they're asking for 10,000 total beds, 3 separate facilities and they need that conversation with them we worked on our bids with our partners for the past several months.

是的。讓我向大家介紹一下 IDIQ 流程的最新進展。上次通話時，我們剛剛收到工作績效聲明。從字面上看，就在我們打電話之前，我們沒有時間去經歷它。現在，在我們的新聞稿中，您會看到他們要求總共 10,000 個床位、3 個獨立的設施，他們需要與他們進行對話，我們在過去幾個月與合作夥伴一起進行了投標。

We submitted Phase 1 technical proposals a few months ago. take the government goes in, they grade your proposals. They look at your partnerships, how you're going to actually take on the job and get it done, right? We were selected to move forward with all of our bids into what they call Phase 2 pricing. Phase 2 is the last phase of this bid before an award. So there's important to note, there's a limited number of companies that were selected out of Phase I to move into Phase II. All of our bids were pushed into Phase II. -- we submitted our bids on July 26, our pricing for Phase 2. So now it's a waiting game on when this gets awarded. We're being told, fourth quarter would be the award. And look, could these be staggered, they absolutely could be. These are very large, very big bids. So even with some of those number 3 go on a little bit further than the fourth quarter. It absolutely could. But look, I definitely think there's an award happening in fourth quarter, have many, we will see. But definitely, there could be some staggering of the work just based on how large they are.

幾個月前我們提交了第一階段的技術提案。讓政府介入，他們會對你的建議進行評分。他們會關注你的合作夥伴關係，你將如何實際承擔這項工作並完成它，對吧？我們被選中將所有投標推進到他們所謂的第二階段定價中。第二階段是本次投標授標前的最後一個階段。因此，值得注意的是，從第一階段進入第二階段的公司數量有限。我們所有的投標都被推入第二階段。 -- 我們於 7 月 26 日提交了投標書，即我們對第二階段的定價。所以現在正在等待何時中標。我們被告知，第四季度將是獎項。看，這些可以交錯嗎，它們絕對可以。這些出價非常非常大。因此，即使其中一些第三季度的表現比第四季度還要進一步。絕對可以。但是看，我絕對認為第四季度會有一個獎項，有很多，我們拭目以待。但毫無疑問，僅根據它們的規模，工作量可能會有些驚人。

Our next question comes from Stephen Gengaro of Stifel.

我們的下一個問題來自 Stifel 的 Stephen Gengaro。

Thanks. Good morning, everybody. A couple of things from me. And I just think just first, 1 clarification. The 10,000 beds, is that -- are they designed for children and staff? Or is it just -- is that just the unaccompanied minors portion?

謝謝。大家早上好。我有幾件事。我只想首先澄清一下。 10,000 張床位是為兒童和工作人員設計的嗎？或者只是——這只是無人陪伴的未成年人部分？

Yes. There's definitely more to go here, right? This is just for children. This doesn't account for what we would have to supply for our partners and our own workforce for housing. So at the end of the day at each of these facilities, just like Pecos there would be a number of beds also on top of this for staffing. look, some of them are different, depends on -- I'm not confirmed for competitive reasons, I'm not going to tell you where these are located and what we did, but some might be closer to a city where you can actually have something there. But there will be a number of extra rooms, if you will, and some fairly substantial depending on what locations they pick would add to this number for us, and the contract would get bigger.

是的。這里肯定還有更多值得去的地方，對吧？這僅適用於兒童。這並沒有考慮到我們必須為我們的合作夥伴和我們自己的勞動力提供住房。因此，歸根結底，這些設施就像 Pecos 一樣，除此之外還會有許多床位以供人員配備。聽著，其中一些是不同的，取決於——出於競爭原因，我沒有得到確認，我不會告訴你這些位於哪里以及我們做了什麼，但有些可能更接近一個城市，你實際上可以那裡有東西。但是，如果您願意的話，將會有許多額外的房間，並且根據他們選擇的位置，一些相當大的房間將為我們增加這個數字，並且合同會變得更大。

Okay. And then that does make sense, yes. And then 2 other things. First, you addressed this to an extent, but I'm just curious. So when we're looking at and these fact sheets that tells utilization has been 0 for several months. And then -- we -- and then we sort of are trying to triangulate that into long-term demand, which you had noted on the call earlier was a flawed approach. When an unaccompanied minor enters the country. Maybe it would be helpful for us to the extent you can, what are the different paths for this unaccompanied minor. And at what point would he be utilizing any influx care facility versus the other parts of the system?

好的。那麼這確實有道理，是的。然後還有另外兩件事。首先，你在一定程度上解決了這個問題，但我只是很好奇。因此，當我們查看這些情況說明書時，發現利用率已經連續幾個月為 0。然後 - 我們 - 然後我們正在嘗試將其轉化為長期需求，您之前在電話會議上指出這是一種有缺陷的方法。當無人陪伴的未成年人入境時。也許這會對我們有所幫助，對於這個無人陪伴的未成年人來說，有哪些不同的路徑。與系統的其他部分相比，他在什麼時候會使用任何湧入護理設施？

Yes. And let me -- I'll jump on this, but let me say, it's not so much a flawed approach in how you look at border crossings that eventually happens to become influx, right? I'm saying it's probably -- it's the flawed approach for the need. If you're looking at just that for the need of these facilities. These needs are much deeper than just looking at, if you will, what's coming across today. They've known they've had this issue for many, many years. This is their solution for many, many more years because influx is going to come, trying to put your finger on when that happens is the kind of the million-dollar question, if you will.

是的。讓我——我會跳到這一點，但讓我說，這並不是一個有缺陷的方法，在你如何看待最終碰巧湧入的邊境口岸方面，對吧？我的意思是，這可能是滿足需求的有缺陷的方法。如果您只是考慮這些設施的需要。如果你願意的話，這些需求比僅僅看看今天發生的事情要深刻得多。他們知道這個問題已經存在很多年了。這是他們很多很多年的解決方案，因為人口湧入將會到來，如果你願意的話，試圖弄清楚何時發生這種情況是一個價值百萬美元的問題。

(inaudible) So that's kind of my saying that you can't correlate those 2. So hopefully, that -- that makes sense.

（聽不清）這就是我所說的，你不能將這兩者聯繫起來。所以希望這是有道理的。

Stephen, to further expand on that. I think as we likely discussed before, it's really a function -- the movement from -- into influx is really a function of the strain, if you will, on the shelter capacity, right? So they're probably 9,000 beds within the shelter system. And so at a certain level. And now those are tended to be small across a number of states. And so it can be easy at times for those to potentially get strange and have too many occupants in any given site. At that point in time, there's obviously some logistical maneuvering that the government will do.

斯蒂芬，進一步擴展這一點。我認為正如我們之前可能討論過的那樣，這實際上是一個函數——從流入到流入的流動實際上是一個函數，如果你願意的話，是對避難所容量的壓力的函數，對嗎？所以收容所繫統內可能有 9,000 個床位。在一定程度上也是如此。現在，在許多州，這些金額往往很小。因此，對於那些人來說，有時很容易感到奇怪，並且在任何給定地點都有太多的佔用者。到那時，政府顯然會採取一些後勤措施。

But beyond the shelter capacity, once it gets to a certain threshold level, they'll start moving into influx right? So right now, we're -- let's say, we're about 70%, 75% occupied with the shelter system. at some level above that, then they start looking and shifting into influx. So I would say that it's not that far away, but it still has happened yet. I think regardless to Brad's point, this is an insurance policy regardless of what the shelter capacity occupancy, it looks like at any given point in time because to the extent it does exceed that, you absolutely need the influx to offset immediately. So it's not something where the government can wait, which is the whole purpose around the IDIQ and this discussion. So hopefully, that gives you a little bit of additional context as to how that process works.

但超出了庇護所的容量，一旦達到一定的閾值水平，他們就會開始湧入，對嗎？所以現在，我們——比方說，我們大約 70%、75% 被收容所繫統佔用。在高於這個水平的某個水平上，他們開始尋找並轉向湧入。所以我想說，這並不遙遠，但它仍然發生了。我認為無論布拉德的觀點如何，這都是一份保險單，無論庇護所的容納人數如何，在任何給定的時間點看起來都是這樣，因為如果超過了這個限度，你絕對需要立即湧入來抵消。因此，這不是政府可以等待的事情，這就是 IDIQ 和本次討論的全部目的。希望這能為您提供一些關於該流程如何運作的額外背景信息。

Yes. Great. And then just one final. And I know this is small, and you may not want to comment specifically. But when we look at the government revenue for the quarter, the numbers that we get based on the knowns that we have, which are probably not perfect, was that the utilization of the ICF was in the low 30s in the first quarter? But we also -- there also was some revenue contribution in the second quarter despite what I thought was an empty facility. Am I thinking about that wrong? Or is there still some -- and I mean some variable revenue?

是的。偉大的。然後只有一場決賽。我知道這很小，你可能不想具體發表評論。但是，當我們查看本季度的政府收入時，我們根據已知信息得出的數據可能並不完美，第一季度 ICF 的利用率是否在 30 左右？但我們也 - 儘管我認為設施是空的，但第二季度也做出了一些收入貢獻。我這樣想是不是錯了？或者還有一些——我的意思是一些可變收入？

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

是的。我不認為——有幾件事。第一，我們專門討論了每季度的可變貢獻。但我認為，即使有，也不會那麼多。我們可以談論——我們可以談論（聽不清）並進一步深入研究。

(Operator Instructions) Our next question comes from Greg Gibas of Northland Security.

（操作員說明）我們的下一個問題來自北國安全部的 Greg Gibas。

Congrats on the quarter. When we think about that 10,000 bed number that the government is demanding, how many incremental beds is that? Should we think about that 6 400 burn capacity at Pecos and then like I think 2,200 that you have in another contract with the government. I mean, how should we think about incremental beds and I guess as kind of the follow-up there is the assets that you've acquired that aren't currently contracted with the government, would you say those basically meet the government's needs requirements, I guess, right now? And maybe, I guess, as they stand today? Or would additional capacity or anything requiring capital you'd be required?

恭喜本季度。想想政府要求的1萬個床位，那增量是多少床位呢？我們是否應該考慮一下 Pecos 的 6,400 燃燒能力，然後像我認為的那樣，在與政府的另一份合同中擁有 2,200 燃燒能力。我的意思是，我們應該如何考慮增加床位，我想作為一種後續行動，你已經獲得了目前沒有與政府簽訂合同的資產，你會說這些基本上滿足了政府的需求要求嗎？我想，現在呢？我猜，也許就像他們今天的立場一樣？或者是否需要額外的容量或任何需要資金的東西？

Yes. The facility we acquired, I will tell you, was definitely used in our bid process. So we definitely think it meets some of the needs for this bid. As I mentioned earlier, there will definitely be customer beds, employee beds, if you will, on top of on each facility on top of the 3,000 per facility, right? I'm not -- again, for competitive reasons, this is an open bid. I'm not going to get into how many that is or how large that is. Just again, would be inappropriate at this time to do that.

是的。我會告訴你，我們獲得的設施肯定在我們的投標過程中使用過。所以我們絕對認為它滿足了本次投標的一些需求。正如我之前提到的，除了每個設施 3,000 個設施之外，如果你願意的話，肯定還會有顧客床位、員工床位，對吧？我不是——再說一次，出於競爭的原因，這是一次公開投標。我不會透露有多少或有多大。再說一遍，此時這樣做是不合適的。

Hopefully, we're awarding them, and then we can talk more about kind of how it's built. What's out there is definitely the 3,000 beds for the government. And what we haven't put out is how many other beds we would need to put out for the customer side, for the employee side.

希望我們能夠獎勵他們，然後我們可以更多地討論它的構建方式。那里肯定是政府的3000張床位。我們還沒有提供的是我們需要為客戶方、員工方提供多少張其他床位。

And Greg, to address the incrementalization of your question, as it relates specifically to Dilly, right, that's not included here, right? So everything we're talking about is obviously over and above that. But PCC is effectively embedded with the net 10,000 number, right? So effectively, if you think about PCC itself, you're thinking about an additional 6,000 not (inaudible)

格雷格，為了解決你的問題的增量問題，因為它特別與迪莉相關，對吧，這不包括在這裡，對嗎？所以我們所談論的一切顯然都超出了這個範圍。但PCC有效地嵌入了網10,000號，對吧？因此，如果您考慮 PCC 本身，您就會考慮另外 6,000 個非（聽不清）

But not 3,000 not to...

但不是3000不...

That's right. That's I'm talking just only the rec. Just 3,000.

這是正確的。我只是在談論rec。只要3,000。

So it would be the additional 6,000 for children that incremental. So hopefully, that gives a little bit more clarification.

因此，增量為兒童的額外 6,000 美元。希望這能提供更多的澄清。

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

確實如此。我很欣賞那裡的顏色。我想這只是之前關於可變收入的問題的後續。我猜想，今年 EBITDA 可能略有下降的原因是什麼，或者您預計今年的可變貢獻較小？我想，總的來說，只是想知道今年您對可變收入的最新假設是什麼。

Well, typically, we see a stronger seasonality in and around the late spring through the start. I think a lot of that was pulled forward because of the Title 42. And so -- which, again, it's not an expectation that we would have had on each of those. So I think as we look at that and we see that shift earlier in the year than was we would expect to specifically make a Title 42, then I think it's caused us to look at it and we try to be -- we're trying to be thoughtful and conservative as to how we provide outlets, right?

嗯，通常情況下，我們會在春末及春初期間看到更強的季節性。我認為其中很多內容都是因為第 42 條而被提前的。因此，這又不是我們對其中每一項都抱有的期望。所以我認為，當我們看到這一點時，我們看到這一轉變比我們預期專門製定第 42 條要早，然後我認為這導致我們開始關注它，我們正在努力 - 我們正在嘗試對於我們如何提供銷售渠道要深思熟慮和保守，對嗎？

So it's a function of that just feel it's prudent and appropriate adjustment to maintenance as we look at the balance of the year. That being said, there's nothing -- there's nothing that sense that, that can tie I can't elaborate. As I mentioned a moment ago, I mean, so capacity is 70%, 75% at some level over and above that, you certainly would look at influx care.

因此，當我們考慮今年的餘額時，我們會覺得這是對維護的謹慎和適當的調整。話雖這麼說，沒有什麼——沒有任何感覺可以聯繫起來，我無法詳細說明。正如我剛才提到的，我的意思是，容量是 70%，在某種程度上超過 75%，你當然會考慮湧入護理。

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

偉大的。很有幫助。我想最後，您可以分享關於您的新政府服務提供商合作夥伴的任何信息，以及與您現有的非營利合作夥伴相比，他們如何提供新的市場機會？

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

聽著，我不會再透露姓名，公開投標，對，仍然在那裡告訴我們，我們對與大型政府服務公司的合作夥伴感到非常興奮。這次出價真的很有意義——它比我們今天所做的要大得多，對吧？我們將追尋所有的出價。我們一直在關閉設施。從地理角度來看，它比我們所處的位置延伸得更遠，仍然與這樣的公司合作，這確實很有意義。

I will tell you, very happy with the existing partner that we have in PCC. As you know, we're aligned there. So we have an 11-year agreement with them on that facility, and we provided everything they asked for and what they wanted to submit to the government for this bid. But we wanted to go after all of it and go try to grow our government business. We think we have the ability to do that with this new partner.

我會告訴你，我們對 PCC 現有的合作夥伴非常滿意。如你所知，我們在這方面是一致的。因此，我們與他們就該設施達成了為期 11 年的協議，我們提供了他們要求的一切以及他們希望向政府提交的此次投標的內容。但我們想要追求這一切，並嘗試發展我們的政府業務。我們認為我們有能力與這個新合作夥伴一起做到這一點。

Our next question comes from Stephen Gengaro of Stifel.

我們的下一個問題來自 Stifel 的 Stephen Gengaro。

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

就在石油領域，當我們觀察那裡的活動水平時，我的意思是，很明顯，鑽機數量下降了，完井活動可能會在今年下半年下降，但看起來我們確實正在穩定並正在考慮明年可能會復蘇。您是否看到該業務發生了很大變化？從你的指導來看似乎並非如此，但我只是想檢查一下。

Look, the -- we have said -- we started saying earlier in the year that we were expecting some margin expansion as we spend into the back half of this year. We start seeing that really starting in the second quarter. as we saw some additional inflation pressures come down and cost containment create some operating efficiencies. So to that extent, things are getting better.

看，我們已經說過，我們在今年早些時候開始表示，隨著我們在今年下半年的支出，我們預計利潤率會有所擴大。我們從第二季度開始真正看到這一點。因為我們看到一些額外的通脹壓力下降，成本控制創造了一些運營效率。所以從這個意義上來說，事情正在變得更好。

I think as we -- I think it's really your question is the heart of what does the dilation look like going forward, right? And there's going to be a real change there. I wouldn't tell you that we have -- we are expecting anything significantly different from that high 70% area utilization that right now. I would expect that to continue. hopefully, the playback continues to get better. There is some potential for some consolidation, which is starting to take a little bit. So that could be helpful to us over time. But look, I wouldn't -- I would think that there's still some steady, slight growth there, but I wouldn't expect anything material at this point.

我認為，我認為您的問題實際上是未來擴張的核心，對吧？那裡將會發生真正的變化。我不會告訴你，我們期望與現在 70% 的高面積利用率有任何顯著不同。我希望這種情況能夠繼續下去。希望播放能繼續變得更好。存在一些整合的潛力，但這需要一點時間。隨著時間的推移，這可能會對我們有所幫助。但是看，我不會——我認為那裡仍然有一些穩定的、輕微的增長，但我不期望在這一點上有任何實質性的增長。

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

好的。然後是另一篇關於政府的快速文章。當你——我們是否應該考慮類似於 Pecos 的潛在合約結構，其中有某種固定的部分來保護你並保留你的資產？您將資產供長期使用，外加一些可變部分。這是我們應該期望的標準結構嗎？

So I think the way you think about these contracts going forward is the structure we have with PCC, specifically related to how that was structured from revenue piece variable piece as well as to the capital and the payback portions. I think you should think about those generally being roughly very similar from in concept instruction.

因此，我認為您未來考慮這些合同的方式是我們與 PCC 的結構，特別是與收入部分、可變部分以及資本和投資回收部分的結構有關。我認為你應該考慮那些在概念教學中通常大致非常相似的內容。

SP1 Our next question comes from Scott Schneeberger of Oppenheimer.

SP1 我們的下一個問題來自 Oppenheimer 的 Scott Schneeberger。

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

我只是想談一談——在這次電話會議上並沒有太多提及，因為 ICF 的很多討論都很突出。但您之前曾領導過其他政府機構的機會，我只是想知道您是否可以介紹一下您正在尋求的一些非 ICF 機會的最新情況，是否也有任何更新？

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

因此，可以肯定的是，目前正在取得一些有機進展——不提供具體細節，但我們一直在自然資源方面談論的一些相同的事情，以及除 ICF 之外的其他政府服務。我們不斷努力擴大我們的政府業務。甚至在 HFS 方面也可能發生一些情況。但那裡有非常強大的管道。我們繼續說比過去許多年更強大。再次，項目非常龐大。這些工作需要時間才能完成，但我們正在一些工作上取得進展。

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

是的。我認為到目前為止，我們在過去幾個季度已經說過，我們正在不斷尋求在更多地區擴大政府規模，對嗎？我認為數字合作夥伴擁有多個站點，我們顯然正在執行這一點。這些都是很大的，我認為我們希望公平地對待我們在這裡看到的事情。我們不會把目光從一切上移開，並繼續在整個鐵路政府中真正發展業務。正如布拉德提到的，除了這些之外，我們還正在與政府、當然還有其他企業和行業合作開展其他工作。所以看，管道很強大，我們期待著嘗試在它上執行。

Great. And then last 1 for me. I heard in prepared remarks, CapEx moderating through the end of the year, but the guidance did increase for the year. Was that all what you were doing in the second quarter working with that newly acquired strategic asset. Am I pointing on there? Or is there a little bit more to it. And what might (inaudible) As I said, and '24 considerations on CapEx after that one.

偉大的。然後是我的最後 1 個。我在準備好的發言中聽說，資本支出在年底前有所放緩，但今年的指導確實有所增加。這就是您在第二季度使用新收購的戰略資產所做的全部工作嗎？我指著那裡嗎？或者還有更多的內容嗎？正如我所說，以及在那之後的 24 年資本支出考慮因素。

Sure. No, you're right. We had most of that spending was in the first was really in the first half, particularly in the first quarter. So that was the nature of the comment around moderating total towards the back half of the year. As you think about going into 2024 full Look, I would say at a base level, I would kind of stick with something that looks similar to what we've got for 2023 as well.

當然。不，你是對的。我們的大部分支出實際上是在上半年，特別是在第一季度。這就是關於今年下半年總量放緩的評論的本質。當你考慮進入 2024 年的完整外觀時，我會說，在基本層面上，我會堅持使用與 2023 年的外觀相似的東西。

Then look, the nature of what we're talking about here on capital spending, look, it could be significant at gross level -- but if the structure is what we believe it to be from a kind of a spending level with the contracts on a net capital level emulator similar as we had this year. So a very big nameplate number but not a big number on a net basis.

然後看，我們在這裡談論的資本支出的本質，看，它在總體水平上可能很重要 - 但如果結構是我們認為的那樣，來自合同上的支出水平與我們今年類似的淨資本水平模擬器。因此，銘牌數字非常大，但淨值並不大。

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

我們的問答環節到此結束。我現在想將會議轉回布拉德·阿徹 (Brad Archer) 發表閉幕詞。

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

感謝您參加今天的電話會議，並再次感謝您對 Target Hospitality 的興趣。我們期待在 11 月份的第三季度電話會議上再次發言。祝你有美好的一天。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。