Target Hospitality Corp (TH) 2024 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Target Hospitality First Quarter 2024 Earnings Call Conference Call.

早安，女士們、先生們，歡迎參加 Target Hospitality 2024 年第一季財報電話會議。

(Operator Instructions) This call is being recorded on Wednesday, May 8, 2024.

（操作員說明）此通話錄音時間為 2024 年 5 月 8 日星期三。

I would now like to turn the conference over to Mr. Mark Schuck.

現在我想把會議交給馬克舒克先生。

Please go ahead.

請繼續。

Thank you.

謝謝。

Good morning, everyone, and welcome to Target Hospitality's First Quarter 2024 Earnings Call.

大家早安，歡迎參加 Target Hospitality 2024 年第一季財報電話會議。

The press release we issued this morning outlining our first quarter results can be found in the Investors section of our website.

我們今天早上發布的概述第一季業績的新聞稿可以在我們網站的投資者部分找到。

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

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.

請注意新聞稿中有關前瞻性陳述的警告性語言。

This same language applies to statements made on today's conference call.

同樣的語言也適用於今天的電話會議上的發言。

This call will contain time-sensitive information as well as forward-looking statements, which are only accurate as of today, May 8, 2024.

本次電話會議將包含時間敏感資訊以及前瞻性陳述，這些資訊僅截至今天（2024 年 5 月 8 日）準確。

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.

Target Hospitality 明確表示不承擔更新或修改本次電話會議中包含的資訊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。

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

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.

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。

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.

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。

Finally, as previously announced on March 25, 2024, Arrow Holdings, an affiliate of TDR Capital,, proposed to acquire all outstanding shares of common stock of Target hospitality, it or affiliates do not already own.

最後，正如先前於 2024 年 3 月 25 日宣布的那樣，TDR Capital 的關聯公司 Arrow Holdings 擬收購其或關聯公司尚未擁有的 Target Hospitality 的所有已發行普通股。

The Board of Directors of Target Hospitality has established a special committee of independent directors to evaluate this proposal.

Target Hospitality 董事會已成立獨立董事特別委員會來評估該提案。

The special committee has retained their own independent outside financial and legal advisers, and collectively, they have commenced their review and evaluation of the proposal.

特別委員會已聘請了自己的獨立外部財務和法律顧問，並已共同開始對該提案進行審查和評估。

At this time, the Special Committee has made no decision with respect to the proposal.

目前，特別委員會尚未就該提案做出決定。

As a result, management will be unable to comment on the proposal or the evaluation process during today's call.

因此，管理層在今天的電話會議上將無法對提案或評估過程發表評論。

Leading the call today will be Brad Archer, President and Chief Executive Officer; followed by Jason Vlacich, Chief Financial Officer and Chief Accounting Officer.

今天的電話會議將由總裁兼執行長 Brad Archer 主持。其次是財務長兼首席會計長 Jason Vlacich。

After their prepared remarks, we will open the call for questions.

在他們準備好發言後，我們將開始提問。

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

我現在將把電話轉給我們的執行長布拉德·阿徹 (Brad Archer)。

Thanks, Mark.

謝謝，馬克。

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

大家早安，感謝您今天加入我們的電話會議。

Our impressive first quarter performance reflects the benefits of our network capabilities, which allow us to maximize operational efficiencies while simultaneously providing world-class solutions to our customers.

我們令人印象深刻的第一季業績反映了我們網路能力的優勢，這使我們能夠最大限度地提高營運效率，同時為客戶提供世界一流的解決方案。

The scale and flexibility of our efficient operating structure continues to support seamless alignment with changes in customer demand, allowing us to preserve strong operating margins through cycles.

我們高效營運結構的規模和靈活性持續支援與客戶需求變化的無縫對接，使我們能夠在整個週期中保持強勁的營運利潤。

These attributes have significantly enhanced our financial position and materially strengthened our balance sheet, supporting a highly durable and flexible operating model.

這些屬性顯著增強了我們的財務狀況，並實質地增強了我們的資產負債表，支援高度耐用和靈活的營運模式。

In the government segment, these elements have supported the longevity of our PCC community, which has entered its fourth year of operations and is the longest operating influx care facility in the United States.

在政府部門，這些因素支持了我們的 PCC 社區的長壽，該社區已進入運營第四年，是美國運營時間最長的湧入護理機構。

Since its inception in 2021, this community has served approximately 2 million [mills] to unaccompanied children cornerstone to the government's influx care facility network.

自 2021 年成立以來，該社區已為約 200 萬無人陪伴兒童提供服務，成為政府湧入護理設施網路的基石。

This established presence supports Target's continued engagement with the U.S. government and other strategic partners to jointly pursue the creation of a third ICF site, not currently in the government's portfolio.

這項既定的業務支持塔吉特繼續與美國政府和其他戰略合作夥伴合作，共同尋求創建第三個 ICF 站點（目前不在政府的投資範圍內）。

We remain actively engaged and are pleased with continued dialogue regarding this opportunity.

我們仍然積極參與，並對就這一機會繼續進行對話感到高興。

As we have previously stated, we anticipate additional details regarding the third ICF site in the back half of 2024.

正如我們之前所說，我們預計將於 2024 年下半年提供有關第三個 ICF 站點的更多詳細資訊。

In addition, our South Texas Family Residential Center is entering its 10th year of operations, a testament to the operational success of that community.

此外，我們的南德克薩斯家庭住宅中心即將進入運營第十個年頭，證明了該社區運營的成功。

This community has evolved through multiple contract renewals across 3 different federal administrations, exemplifying its importance as a critical humanitarian solution for the U.S. government.

該社區透過三個不同聯邦政府的多次合約續約而不斷發展，體現了其作為美國政府關鍵人道主義解決方案的重要性。

Regarding our HFS segment, we continue to benefit from strong customer demand, which has supported positive momentum over the past year.

關於我們的 HFS 部門，我們繼續受益於強勁的客戶需求，這支持了過去一年的積極勢頭。

This demand illustrates the value of our world-class customers find in the network flexibility and premium hospitality solutions we provide.

這項需求說明了我們的世界級客戶在我們提供的網路靈活性和優質飯店解決方案中發現的價值。

We have taken deliberate steps to enhance operational efficiencies across this segment, and we'll continue to evaluate opportunities to optimize margin contribution through enhanced network optimization.

我們已採取審慎措施來提高該細分市場的營運效率，並將繼續評估透過增強網路優化來優化利潤貢獻的機會。

Our ability to utilize the scale of our network to seamlessly align with changes in customer demand has consistently supported strong financial results.

我們利用網路規模無縫適應客戶需求變化的能力始終支援強勁的財務表現。

This focus has materially strengthened our financial position and established a robust balance sheet with significant liquidity.

這一重點大大增強了我們的財務狀況，並建立了具有大量流動性的穩健資產負債表。

These elements continue to support impressive operating income and industry-leading cash conversion, which establishes the ideal position to continue evaluating a pipeline of growth initiatives.

這些要素繼續支持令人印象深刻的營業收入和領先業界的現金轉換，這為繼續評估一系列成長計畫奠定了理想的地位。

We believe these naturally adjacent opportunities will complement our existing service offer, while establishing multiple avenues to expand Target's long-term growth opportunity set.

我們相信，這些自然相鄰的機會將補充我們現有的服務，同時建立多種途徑來擴大塔吉特的長期成長機會。

In addition to the third ICF, we remain engaged with multiple federal agencies on a variety of solutions they are seeking to implement pertaining to increased activity along the U.S. Southern border.

除了第三次 ICF 之外，我們還與多個聯邦機構合作，討論他們正在尋求實施的與美國南部邊境活動增加相關的各種解決方案。

Further, we continue to actively pursue a robust pipeline of nongovernment growth initiatives.

此外，我們持續積極推行一系列強而有力的非政府成長措施。

As we have previously discussed, these opportunities include large industrial projects throughout the U.S., including technology infrastructure, energy transition and the increase in domestic rare-earth development.

正如我們之前討論的，這些機會包括美國各地的大型工業項目，包括技術基礎設施、能源轉型和國內稀土開發的增加。

As a reminder, these growth opportunities tend to have longer sales cycles.

提醒一下，這些成長機會往往有更長的銷售週期。

While we are pleased with the active dialogue and progress of discussions, the timing and final outcomes are uncertain and can be difficult to predict.

雖然我們對積極的對話和討論的進展感到滿意，但時間和最終結果是不確定的，很難預測。

As we evaluate these initiatives, we remain committed to achieving defined objectives of our growth strategy.

在評估這些措施時，我們仍然致力於實現成長策略的既定目標。

Our primary objective is focused on diversifying our customer base and contract portfolio, which we believe is essential in broadening our long-term growth pipeline.

我們的主要目標是使我們的客戶群和合約組合多樣化，我們認為這對於擴大我們的長期成長管道至關重要。

By accomplishing this, we will establish a foundation to identify and consistently execute repeatable growth opportunities, while remaining focused on generating strong operating income and industry-leading cash conversion.

透過實現這一目標，我們將建立一個基礎來識別並持續執行可重複的成長機會，同時繼續專注於產生強勁的營業收入和領先業界的現金轉換。

In summary, we have established an enhanced financial position centered on the strength of our balance sheet and an efficient operating structure.

總而言之，我們建立了以資產負債表實力和高效營運結構為中心的增強的財務狀況。

These elements support our ability to provide a premier service offering to our customers, while simultaneously delivering strong financial results and pursuing attractive growth opportunities.

這些要素支持我們為客戶提供優質服務的能力，同時實現強勁的財務表現並追求有吸引力的成長機會。

I'll now turn the call over to Jason to discuss our first quarter financial results in more detail.

我現在將把電話轉給傑森，更詳細地討論我們第一季的財務表現。

Thank you, Brad.

謝謝你，布拉德。

In the first quarter, our enhanced operating platform continued to support operational efficiencies across our network, allowing us to produce strong financial results driven by the strength in our core service offering.

第一季度，我們增強的營運平台持續支援整個網路的營運效率，使我們能夠在核心服務實力的推動下產生強勁的財務表現。

First quarter 2024 total revenue was approximately $107 million, and adjusted EBITDA was approximately $54 million.

2024 年第一季總營收約 1.07 億美元，調整後 EBITDA 約為 5,400 萬美元。

Our Government segment produced quarterly revenue of approximately $68 million.

我們的政府部門季度收入約為 6800 萬美元。

The decrease in revenue from the prior period was driven by the noncash, nonrecurring infrastructure enhancement revenue associated with the significant expansion that occurred at our PCC community in 2022, which was fully amortized as of November 2023.

上期收入下降的原因是與 2022 年 PCC 社區大幅擴張相關的非現金、非經常性基礎設施增強收入，該收入已於 2023 年 11 月全部攤銷。

Our HFS and all other segments delivered quarterly revenue of $39 million compared to $38 million in the same period last year.

我們的 HFS 和所有其他部門的季度收入為 3,900 萬美元，而去年同期為 3,800 萬美元。

This increase was driven by sustained momentum in customer demand for Target's premium service offerings, illustrating the value our customers find in our premier hospitality solutions.

這一成長是由客戶對 Target 優質服務產品的持續需求所推動的，這說明了客戶在我們一流的飯店解決方案中發現的價值。

Recurring corporate expenses for the quarter were approximately $10 million, and we anticipate these will remain around $9 million to $10 million per quarter for the remainder of the year.

本季的經常性公司開支約為 1,000 萬美元，我們預計今年剩餘時間內每季的經常性開支將保持在 900 萬至 1,000 萬美元左右。

Total capital spending for the quarter was approximately $10 million, with the majority focused on enhancing operational efficiencies through the purchase of previously leased equipment.

本季的總資本支出約為 1000 萬美元，其中大部分集中於透過購買先前租賃的設備來提高營運效率。

The strength in our core service offering continues to support strong cash generation and an enhanced financial profile.

我們核心服務的實力持續支持強勁的現金產生和增強的財務狀況。

We ended the quarter with $124 million in cash and $299 million of liquidity with zero borrowings under the company's $175 million revolving credit facility and a net leverage ratio of 0.2x. These impressive financial results illustrate the strength of our operating platform and the sustained momentum we have created over the last several years.

截至本季末，我們擁有 1.24 億美元現金和 2.99 億美元流動資金，公司 1.75 億美元循環信貸額度下的借款為零，淨槓桿率為 0.2 倍。這些令人印象深刻的財務表現說明了我們營運平台的實力以及我們在過去幾年中創造的持續動力。

These elements support our reiterated preliminary 2024 financial outlook, which consists of total revenue of between $410 million and $425 million and adjusted EBITDA of between $195 million and $210 million, with anticipated 2024 capital expenditures of between $25 million and $30 million.

這些要素支持我們重申的 2024 年初步財務展望，其中包括 4.1 億至 4.25 億美元的總收入和 1.95 億至 2.1 億美元的調整後 EBITDA，以及 2500 萬至 3000 萬美元的預計 2024 年資本支出。

Regarding our revenue and adjusted EBITDA ranges.

關於我們的收入和調整後的 EBITDA 範圍。

As a reminder, there is minimal PCC variable revenue contemplated at the low end of our outlook ranges, and this revenue contribution was materially achieved during the first quarter of 2024.

需要提醒的是，在我們的展望範圍的低端，預計 PCC 的可變收入極小，而這一收入貢獻是在 2024 年第一季實質實現的。

However, it's important to remember that PCC variable revenue contributions will inherently be uneven over the balance of the year.

然而，重要的是要記住，PCC 的可變收入貢獻在今年剩餘時間本質上是不平衡的。

Any additional 2024 PCC variable revenue contribution will likely occur in the back half of the year.

任何額外的 2024 年 PCC 可變收入貢獻可能會在今年下半年發生。

This enhanced financial profile supported our ability to return approximately $21 million to our shareholders by repurchasing approximately 2.3 million shares of common stock during the 3 months ended March 31, 2024.

財務狀況的改善使我們能夠在截至 2024 年 3 月 31 日的三個月內回購約 230 萬股普通股，向股東返還約 2,100 萬美元。

In addition, the strength of our balance sheet, high degree of revenue visibility and continued strong cash conversion provides the ability to continue actively evaluating and pursuing a strong pipeline of organic growth initiatives.

此外，我們的資產負債表實力、高度的收入可見度和持續強勁的現金轉換使我們有能力繼續積極評估和追求強大的有機成長計劃。

These opportunities are designed to jointly leverage Target's operating expertise and existing core competencies to establish a robust service offering across various U.S. government agencies and commercial applications.

這些機會旨在共同利用塔吉特的營運專業知識和現有核心能力，在美國各個政府機構和商業應用程式中建立強大的服務產品。

These initiatives encompass Target's existing full turnkey hospitality solutions while also focusing on opportunities to broaden Target's customer base and service offering portfolio.

這些措施涵蓋塔吉特現有的全套交鑰匙飯店解決方案，同時也專注於擴大塔吉特客戶群和服務產品組合的機會。

We are focused on establishing a platform to continue diversifying our revenue streams while simultaneously creating repeatable growth vectors.

我們專注於建立一個平台，以繼續實現收入來源多元化，同時創造可重複的成長向量。

As previously stated, Target is seeking to allocate over $500 million of net growth capital to these opportunities over the next several years.

如前所述，塔吉特正尋求在未來幾年內為這些機會分配超過 5 億美元的淨成長資本。

Importantly, as we evaluate these initiatives, we will remain focused on maintaining the enhanced financial profile we have achieved through disciplined capital allocation and strong discretionary cash flow conversion.

重要的是，在我們評估這些舉措時，我們將繼續致力於維持透過嚴格的資本配置和強大的可自由支配現金流轉換而實現的增強的財務狀況。

With that, I will 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, Jason.

謝謝，傑森。

Our strong first quarter results continue to illustrate the benefits of our enhanced operating platform.

我們強勁的第一季業績繼續說明了我們增強的營運平台的優勢。

The network scale and flexibility we have established allow us to deliver a premium service offering to our customers, while simultaneously supporting strong financial results.

我們建立的網路規模和靈活性使我們能夠為客戶提供優質的服務，同時支援強勁的財務表現。

This consistent execution is reflected in the strength of our balance sheet and enhanced financial position.

這種一致的執行力體現在我們強大的資產負債表和增強的財務狀況。

With this foundation, we are continuing to evaluate and pursue the strongest pipeline of growth opportunities we have seen in many years and remain focused on expanding and diversifying our service offering.

在此基礎上，我們將繼續評估和追求多年來最強勁的成長機會，並繼續專注於擴大我們的服務範圍並使其多樣化。

I appreciate everyone joining us on the call today, and thank you again for your interest in Target Hospitality.

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) Your first question comes from Scott Schneeberger from Oppenheimer.

（操作員說明）您的第一個問題來自奧本海默的 Scott Schneeberger。

It's Daniel on for Scott.

丹尼爾替補斯科特。

Could you please elaborate a little bit on the new opportunities you see, the organic ones, and help us think about where you see the most opportunities and maybe some color on how ripe the pipeline could be?

您能否詳細說明您看到的新機會，即有機機會，並幫助我們思考您在哪裡看到最多的機會，以及可能對管道的成熟程度進行一些說明？

Yes.

是的。

Thanks.

謝謝。

Look, the organic opportunities, as we mentioned, kind of a couple of different buckets.

看，正如我們所提到的，有機機會有幾個不同的桶子。

But if you look at government, and we talked about this in March as well, still making progress.

但如果你看看政府，我們在三月也討論過這個問題，仍在取得進展。

And outside of the ICF here, with other government agencies.

在 ICF 之外，還有其他政府機構。

So that's kind of front and center, still hot on the radar, lots of discussions there with multiple different agencies.

因此，這是一個前沿和中心，仍然受到關注，與多個不同機構進行了大量討論。

I won't get into the agencies, but I'd just say they're -- it's not with the ICF.

我不會談論這些機構，但我只想說它們不是 ICF 的。

With the ICF, we're still going after the third ICF, still pursuing that, expect that to award sometime in the back half of 2024.

對於 ICF，我們仍在追求第三屆 ICF，仍在追求這一目標，預計將在 2024 年下半年的某個時候頒發。

So nothing's changed from our last call there.

因此，與我們上次通話相比，一切都沒有改變。

And then, again, as mentioned in our remarks earlier, if you look at some of the rare earth, some of the technologies, some very large bids.

然後，正如我們之前的評論中提到的，如果你看看一些稀土、一些技術、一些非常大的出價。

So very hard to predict kind of timing on when they award.

因此很難預測他們授予獎項的時間。

But I would tell you, we feel really good about some of these.

但我想告訴你，我們對其中一些感覺非常好。

We've had dialogues from -- some of these have been going on for well over a year.

我們已經進行了對話——其中一些對話已經持續了一年多。

So we think at some point, they come to a conclusion, and we looked -- we think we should be positive on some of these.

所以我們認為在某個時候，他們得出了一個結論，我們認為我們應該對其中一些人持積極態度。

And if you just look over the history of Target, when you talk organic growth, that's how we built the company.

如果你回顧一下塔吉特的歷史，當你談論有機成長時，這就是我們建立公司的方式。

We'll continue to build the company off the backs of the organic growth.

我們將繼續在有機成長的基礎上發展公司。

It's hard to predict timing, but it's not hard to say that we've always been successful on some of these large projects, and we'll continue to do that.

很難預測時間，但不難說我們在其中一些大型專案上一直取得成功，我們將繼續這樣做。

Got it.

知道了。

I saw in the release it was mentioned you focused on operational efficiency.

我在新聞稿中看到提到您專注於營運效率。

I think you mentioned that in the prepared remarks as well.

我想你在準備好的發言中也提到了這一點。

Could you speak to that, please, is there any incremental initiatives you're pursuing that could be margin accretive as we look at?

您能否談談您正在採取的任何增量舉措，正如我們所看到的那樣，這些舉措可能會增加利潤？

Yes, sure.

是的，當然。

We're always continuing to evaluate those operational efficiency opportunities.

我們一直在持續評估這些營運效率機會。

We believe there are still operational efficiencies to be gained as we move through the year.

我們相信，隨著這一年的發展，營運效率仍有待提高。

We executed on some of those in Q1, as you saw with the operating performance that we've released in the release earlier today.

我們在第一季執行了其中的一些操作，正如您在我們今天早些時候發布的版本中所發布的營運績效中所看到的那樣。

So we do feel there are additional opportunities.

所以我們確實覺得還有更多的機會。

That being said, we are running a highly efficient platform currently.

話雖這麼說，我們目前正在運行一個高效的平台。

So it becomes a little bit challenging to identify additional opportunities, but there are some, and we will continue to execute on those, [all but] marginal.

因此，識別更多機會變得有點具有挑戰性，但還是有一些機會，我們將繼續執行這些機會，[幾乎]都是邊緣的。

Your next question comes from Stephen Gengaro from Stifel.

您的下一個問題來自 Stifel 的 Stephen Gengaro。

I guess two things for me.

我想對我來說有兩件事。

But the first is, can you give us some help and color around the government gross margins?

但首先是，您能給我們一些有關政府毛利率的協助和說明嗎？

I mean they were, I think, pretty flat sequentially from the fourth quarter, actually probably up a little bit.

我的意思是，我認為，從第四季度開始，它們的表現相當平穩，實際上可能有所上升。

We had assumed that the mix shift in the new contract would affect that.

我們曾假設新合約中的混合變化會影響這一點。

But how should we think about those government gross margins assuming relatively low utilization at Pecos?

但是，假設 Pecos 的利用率相對較低，我們該如何看待政府的毛利率呢？

Yes.

是的。

So good question.

好問題。

Over the years and working with this contract, we've gotten, obviously, really good at controlling our costs in response to occupancy level fluctuations.

多年來，透過簽訂這份合同，我們顯然非常擅長控製成本以應對入住率波動。

So that's essentially what you're seeing there as we move from Q4 into Q1 is executing on that operational efficiency strategy that we've had in place since the contract has been in place, including the old contract.

因此，當我們從第四季度進入第一季時，您所看到的基本上就是我們自合約生效以來一直實施的營運效率策略（包括舊合約）。

So our margins, we expect to continue to be healthy as we move through the year.

因此，我們預計今年的利潤率將繼續保持健康。

And obviously, there's a bit of margin expansion associated with lower occupancy levels as we control our costs.

顯然，隨著我們控製成本，入住率下降會帶來一定的利潤成長。

Okay.

好的。

So the quarter, there was nothing in that 77.6% in the first quarter, that was an anomaly.

所以這個季度，第一季的 77.6% 沒有任何變化，這是一個異常現象。

That was just mix and efficiency.

這只是混合和效率。

Correct.

正確的。

Yes.

是的。

Okay.

好的。

Great.

偉大的。

And then the second one is just around HFS-South.

第二個就在 HFS-South 附近。

I mean we sort of see what's going on in the Permian.

我的意思是我們可以看到二疊紀發生了什麼事。

I mean, it feels like activity levels are kind of flat from these levels for the next couple of quarters.

我的意思是，感覺未來幾個季度的活動水平與這些水平持平。

I'm not sure if you agree with that or not.

我不確定你是否同意這一點。

But in that environment of if we assume flattish, is that how those revenues should act?

但在我們假設持平的環境下，這些收入該如何表現？

Or are there any contracts or obligations or take or pay?

或是否有任何合約或義務或照付不議？

Is there anything in there that would affect HFS-South not sort of acting like the drilling and completion activity does in the Permian?

是否有任何因素會影響 HFS-South，而不是像二疊紀的鑽井和完井活動？

Yes.

是的。

So we've seen obviously moderate levels of improved utilization.

因此，我們明顯看到了利用率的適度提高。

We expect that to remain the case for the rest of the year.

我們預計今年餘下時間這種情況仍將持續。

So I mean, overall, utilization will trend somewhat similar to last year, and that's what we expect to continue.

所以我的意思是，總體而言，利用率趨勢將與去年有些相似，我們預計這種情況將持續下去。

There's no additional material changes that would cause us to believe otherwise, as we move through the year with respect to utilization trends.

隨著我們在這一年的利用率趨勢方面的變化，沒有其他重大變化會讓我們產生不同的看法。

Okay.

好的。

Great.

偉大的。

And then just one final one for me.

然後是我的最後一件事。

The third ICF contract that is out there that you talked about, is that something to your knowledge that the government will award that they're considering awarding?

您談到的第三份 ICF 合同，據您所知，政府將授予他們正在考慮授予的合約嗎？

Is that part of the mix with certainty and it's just a real question of whether or not you're successful?

這是確定性的組合的一部分嗎？

Or is it might not yet get awarded?

或者可能還沒獲獎？

So based on all of our discussions, they definitely want and need and plan to award the third ICF.

因此，根據我們所有的討論，他們肯定希望、需要併計劃授予第三屆 ICF。

For us, we're bidding on it, right?

對我們來說，我們正在競標，對嗎？

So we can't say we're going to get it.

所以我們不能說我們會得到它。

But we have one.

但我們有一個。

We're going after this one aggressively, and we expect it to be awarded sometime in the back half of 2024.

我們正在積極爭取這項獎項，預計將在 2024 年下半年的某個時候授予。

(Operator Instructions) Your next question comes from Greg Gibas from Northland Securities.

（操作員指示）您的下一個問題來自 Northland Securities 的 Greg Gibas。

Brad and Jason, nice quarter.

布拉德和傑森，美好的季度。

Just a follow-up on that third ICF site opportunity.

只是第三個 ICF 站點機會的後續行動。

You've been pretty clear on it being in the back half is when we're going to hear additional details.

您已經非常清楚地表明，我們將在後半部分聽到更多細節。

Is it kind of a safe assumption that we should assume that contract will likely look similar to the first 2 awards?

我們應該假設合約可能與前兩個合約相似，這是一個安全的假設嗎？

And are you kind of seeing the same players bid for it?

你是否看到同樣的玩家競標？

Yes.

是的。

So look, I think it will be similar, if you will, in design and structure.

所以看，如果你願意的話，我認為它在設計和結構上會很相似。

Too early to say yet if it will be exact in size and those types of things.

現在說它的尺寸和類型是否準確還為時過早。

So we'll -- let's get further into this.

所以我們——讓我們進一步討論這個問題。

And maybe in August, we'll have some more info.

也許在八月，我們會得到更多資訊。

But right now, it's a little too early.

但現在看來，還為時過早。

But look, I would say very similar in nature, especially how we're going to take a look at it where we sit in the value chain as well.

但是，我想說，本質上非常相似，尤其是我們將如何看待它在價值鏈中的位置。

Yes, mechanically, in terms of the revenue streams, it'll be very similar.

是的，從機制上來說，就收入流而言，它會非常相似。

Yes.

是的。

Got it.

知道了。

Fair enough.

很公平。

And curious if you could just discuss, it sounds like there's just more of an emphasis now that the renewal of Pecos is no longer a priority or utilizing resources.

很好奇，如果您可以討論一下，聽起來現在更加強調 Pecos 的更新不再是優先事項或利用資源。

Could you maybe discuss how you're shifting your resources towards targeting those nongovernment opportunities?

您能否討論一下您如何將資源轉向瞄準這些非政府機會？

I guess from a commentary perspective, it just sounds like you're putting a little more emphasis on it.

我想從評論的角度來看，這聽起來像是你更加強調了這一點。

And for that reason, like I know you said they're kind of typically longer sales cycles, but do you think about these potentially being contributors this year or more longer-term opportunity?

出於這個原因，就像我知道你說的那樣，它們通常是更長的銷售週期，但你是否認為這些可能是今年的貢獻者或更長期的機會？

Well, I would tell you that emphasis has always been there.

好吧，我會告訴你，重點一直都在那裡。

And if that came across that way, that's not the case.

如果是這樣的話，情況就不是這樣了。

We have a team that's dedicated to everything outside of government.

我們有一支致力於政府以外一切事務的團隊。

In fact, it's a larger team that's been -- that's dedicated to government.

事實上，這是一個更大的團隊，專門為政府服務。

So that pipeline is actually really large.

所以這條管道其實非常大。

It has been.

它一直。

It's just getting more active, meaning they're getting closer.

它只是變得更加活躍，這意味著他們越來越接近。

I would tell you the final investment decisions and those types of things.

我會告訴你最終的投資決策和諸如此類的事情。

Timing, still uncertain, right?

時間，還是不確定，對嗎？

They are large, they're very impactful if we get them.

它們很大，如果我們得到它們，它們的影響力會非常大。

So I'm not going to really comment on the timing.

所以我不會對時間做出真正的評論。

But emphasis-wise, I wouldn't tell you that governments or -- rare earth or technology side is really being sought after than the other.

但就重點而言，我不會告訴你政府或稀土或技術方面確實比其他方面受到追捧。

They're very high priority.

它們的優先順序非常高。

And it just depends, right?

這只是取決於，對吧？

What's kind of moving forward, where do we put our -- kind of our folks in where we go after, where do we see the hotspots?

什麼樣的前進，我們把我們的人放在哪裡，我們去哪裡，我們在哪裡看到熱點？

So that's kind of where we shift.

這就是我們轉變的地方。

But today, I would tell you, they're pretty balanced.

但今天，我要告訴你，它們非常平衡。

Lots of effort going into the government as there's some front-and-center things that we're working on as well as everything outside of government.

政府投入了大量精力，因為我們正在處理一些前沿和中心的事情以及政府以外的所有事情。

Okay.

好的。

That's fair and helpful.

這是公平且有幫助的。

So I guess if I could follow up on your commentary around multiple agencies within the government.

所以我想我是否可以跟進您對政府內多個機構的評論。

I think you said them being kind of also near the border.

我想你說過他們也靠近邊境。

I understand that you don't want to comment until these are maybe closer to the finish line, but any sense of -- or can you provide any color in terms of like what agencies you're in discussions with or see opportunities with?

我理解，在這些可能接近終點線之前，您不想發表評論，但是您是否可以提供任何信息，例如您正在與哪些機構進行討論或看到機會？

Yes.

是的。

Look, I'd rather not talk about the agency-specific.

聽著，我不想談論特定於機構的事情。

I would tell you, it is definitely not unaccompanied children on a lot of those.

我告訴你，其中很多絕對不是無人陪伴的孩子。

It's outside the ICF network, if you will.

如果你願意的話，它位於 ICF 網路之外。

Okay.

好的。

Got it.

知道了。

I guess just last one for me then as it relates to nice to see the continued share repurchases.

我想這對我來說只是最後一個，因為它與很高興看到持續的股票回購有關。

Wondering if you could just give us an update on continued -- or I guess what are your capital priorities, right?

想知道您是否可以向我們提供有關繼續的最新資訊 - 或者我猜您的資本優先事項是什麼，對嗎？

So we expect continued share repurchases and then could you remind us on the current authorization?

因此，我們預計將繼續進行股票回購，那麼您能否提醒我們目前的授權情況？

Yes.

是的。

So we continue to have the authorized program in place, which was initiated at a $100 million level, right, of which we've purchased $21 million of that.

因此，我們繼續實施授權計劃，該計劃的啟動金額為 1 億美元，對吧，我們已經購買了其中的 2,100 萬美元。

So roughly $78 million, $79 million left in that program.

該計劃還剩下約 7,800 萬美元、7,900 萬美元。

We're not going to comment on prospective activity, but that program continues to be authorized and will remain in place, and it will continue to be a long-term sort of capital allocation strategy for us as we move through time where we see opportunities to execute on it.

我們不會對預期活動發表評論，但該計劃將繼續獲得授權並將繼續存在，隨著我們看到機會，它將繼續成為我們的一種長期資本配置策略執行它。

And as a reminder, we executed on it in Q1 because we saw opportunities there with respect to repurchasing shares at the tune of $21 million.

提醒一下，我們在第一季執行了該計劃，因為我們看到了以 2,100 萬美元回購股票的機會。

You have a follow-up question from Stephen Gengaro from Stifel.

來自 Stifel 的 Stephen Gengaro 向您提出了後續問題。

I'm not exactly sure how to ask you this.

我不太確定如何問你這個問題。

But when we think about the government business versus the HFS-South business, they're clearly different.

但當我們考慮政府業務與 HFS-South 業務時，它們顯然是不同的。

And you guys did a magnificent job in Texas with sort of the network of facilities.

你們在德克薩斯州的設施網絡方面做得非常出色。

How do these other commercial opportunities, where do they fit?

它們其他商業機會如何？

What are they more similar to?

他們更相似的是什麼呢？

Is it like one structure with 50 or 500 rooms?

它就像一棟擁有 50 個或 500 個房間的建築嗎？

Or is it a family of facilities around a certain area?

還是圍繞某個區域的一系列設施？

How do they kind of compare to the 2 other pieces of your business?

與您的其他兩個業務相比，它們如何？

Yes.

是的。

I would tell you they're more similar to the HFS model, if you will, if you're talking structural -- physical type structures and the way they're set up and operated.

我會告訴你，如果你願意的話，如果你談論的是結構——物理類型結構以及它們的設定和操作方式，它們更類似於 HFS 模型。

And would they come along with some type of term contract to support either construction or mobilization of assets?

他們會附帶某種類型的定期合約來支持資產的建設或動員嗎？

Yes, absolutely.

是的，一點沒錯。

They would definitely support all of that comes along with the term contract to certainly support construction expansion, certainly would be part of our $500 million goal, right?

他們肯定會支持與定期合約一起提供的所有這些，以肯定支持建設擴建，當然這將是我們 5 億美元目標的一部分，對嗎？

So...

所以...

And our return models.

還有我們的退貨模型。

And our return models.

還有我們的退貨模型。

It would consistently support our strong cash flow profile that we currently have overall in the business.

它將持續支持我們目前在整個業務中擁有的強勁現金流狀況。

So that's what these kind of look like. long-term guaranteed contracts is what we're talking.

這就是這些的樣子。我們正在談論的是長期保證合約。

Okay.

好的。

Great.

偉大的。

And then just one quick one.

然後只是一個快速的。

You repurchased $21 million of stock in the quarter.

您在本季回購了 2,100 萬美元的股票。

Does the pending bid impact your ability to return capital while it's being considered?

在考慮期間，待定出價是否會影響您返還資本的能力？

We're certainly not going to comment on any impact that, that offer has on our decision-making or potential future activity other than what we've disclosed in the release.

除了我們在新聞稿中揭露的內容之外，我們當然不會評論該要約對我們的決策或未來潛在活動的任何影響。

But it doesn't sort of -- there's no regulation or is there a legal ruling here versus a decision?

但這不是──沒有監管，或是這裡有法律裁決與決定嗎？

Are you allowed to, I guess, is what I'm asking?

我想，這就是我所要求的，你可以這樣做嗎？

Look, I just don't think we're going to comment on what -- just the possibility if we're going to be in the market or not on the stock buyback right now.

聽著，我只是認為我們不會評論什麼——只是評論我們現在是否要進入市場或不進行股票回購的可能性。

The plans in place we bought in the first quarter -- we'll continue to be opportunistic.

我們在第一季購買的計劃 - 我們將繼續機會主義。

There are no further questions at this time.

目前沒有其他問題。

I would now like to turn the call over back to Brad Archer.

我現在想把電話轉回布拉德·阿徹。

Please continue.

請繼續。

Thank you all for joining us on our call today.

感謝大家今天參加我們的電話會議。

We look forward to speaking to you again in August for our second quarter earnings report.

我們期待在八月再次與您討論我們的第二季財報。

Operator, that will conclude the call for today.

接線員，今天的電話會議到此結束。

Sure.

當然。

That concludes today's conference call.

今天的電話會議到此結束。

Thank you for your participation.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。