Target Hospitality Corp (TH) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Target Hospitality second-quarter 2024 earnings call.

早安，女士們、先生們，歡迎參加 Target Hospitality 2024 年第二季財報電話會議。

(Operator Instructions) This call is being recorded on August 7, 2024.

（操作員說明）此通話錄音時間為 2024 年 8 月 7 日。

I would now like to turn the conference over to Mr. Mark Schuck, Senior Vice President of Investor Relations.

我現在將會議交給投資者關係高級副總裁馬克舒克先生主持。

Please go ahead.

請繼續。

Thank you.

謝謝。

Good morning, everyone, and welcome to Target Hospitality's second-quarter 2024 earnings call.

大家早安，歡迎參加 Target Hospitality 的 2024 年第二季財報電話會議。

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

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。

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, August 7, 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 8 月 7 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，如先前所宣布的，2024 年 3 月 25 日，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 are continuing their review and evaluation of the proposal as well as evaluating alternative proposals and other strategic alternatives.

特別委員會保留了自己的獨立外部財務和法律顧問，他們正在共同繼續審查和評估該提案，並評估替代提案和其他策略替代方案。

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 second-quarter performance continues to illustrate the benefits of our efficient operating structure and network capabilities.

我們第二季的業績繼續說明了我們高效的營運結構和網路能力的優勢。

These elements support our ability to deliver strong financial results while remaining focused on delivering the premium hospitality solutions our customer's demand.

這些要素支持我們提供強勁財務業績的能力，同時繼續專注於提供客戶需求的優質飯店解決方案。

The scale and flexibility of our network has established a highly durable operating model that supports the consistent achievement of our financial goals and has established a materially enhanced financial position centered on the strength of our balance sheet.

我們網路的規模和靈活性建立了高度持久的營運模式，支持我們財務目標的持續實現，並以我們的資產負債表實力為中心，顯著增強了財務狀況。

We are confident these fundamentals will continue to support strong operating margin through cycles, enabling us to support our world-class customers while continuing to pursue diversifying growth opportunities.

我們相信，這些基本面將繼續在整個週期中支持強勁的營業利潤率，使我們能夠為世界一流的客戶提供支持，同時繼續尋求多元化的成長機會。

Turning to our segments.

轉向我們的細分市場。

In the government segment, our PCC community has entered its fourth year of service and is the longest-serving influx care facility in the United States.

在政府部門，我們的 PCC 社區已進入服務第四年，是美國服務時間最長的湧入護理機構。

Our operational commitment has solidified PCC as a cornerstone in supporting the government's critical, domestic, humanitarian aid mission and we anticipate a normal course renewal of this contract in November of this year.

我們的營運承諾鞏固了 PCC 作為支持政府關鍵的國內人道援助任務的基石，我們預計今年 11 月將正常續約。

Further, this established presence and consistent operational performance supports Target's continued engagement with the US government and other strategic partners to jointly pursue the creation of a third ICS site, not currently in the government's portfolio.

此外，這種既定的業務和一致的營運績效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 ICS 站點（目前不在政府的投資組合中）。

We are pleased with continued dialogue regarding this opportunity.

我們很高興能夠就這一機會繼續進行對話。

And as we have previously stated, we anticipate additional details regarding the third ICF site later in 2024.

正如我們之前所說，我們預計將於 2024 年稍後提供有關第三個 ICF 網站的更多詳細資訊。

Regarding our HFS segment, we continue to benefit from consistent customer demand as our world-class customers find added value and our network flexibility and the range of premium solutions we provide.

關於我們的 HFS 部門，我們繼續受益於持續的客戶需求，因為我們的世界級客戶發現了附加價值，我們的網路靈活性以及我們提供的一系列優質解決方案。

As an example, our unmatched capabilities support the expansion of existing customer relationships during the quarter, further illustrating the broad reach of our service offerings to meet a variety of customer needs.

例如，我們無與倫比的能力支持本季現有客戶關係的擴展，進一步說明了我們的服務產品滿足各種客戶需求的廣泛範圍。

Additionally, we continue to take steps to realize incremental operational efficiencies across this segment and evaluate opportunities to strengthen margin contribution through enhanced network optimization.

此外，我們繼續採取措施提高該細分市場的營運效率，並評估透過加強網路優化來增強利潤貢獻的機會。

Our existing contract portfolio and commitment to network optimization continues to support impressive operating income and industry-leading cash conversion.

我們現有的合約組合和對網路優化的承諾繼續支持可觀的營業收入和業界領先的現金轉換。

Target's enhanced financial profile establishes the ideal position to continue evaluating a pipeline of attractive growth initiatives.

塔吉特增強的財務狀況為繼續評估一系列有吸引力的成長計畫奠定了理想的基礎。

We believe these naturally adjacent opportunities will complement our existing service offerings 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產品，同時建立多種途徑來擴大塔吉特的長期成長機會集。

Within the government end market, we remain engaged with multiple federal agencies on a variety of solutions they are seeking to implement along the US Southern border.

在政府終端市場中，我們仍然與多個聯邦機構合作，討論他們尋求在美國南部邊境實施的各種解決方案。

As Target continues to evaluate these opportunities, we are actively seeking to utilize Target's existing strategically located South Texas assets to support these solutions.

隨著塔吉特繼續評估這些機會，我們正在積極尋求利用塔吉特現有位於德克薩斯州南部的戰略資產來支持這些解決方案。

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

此外，我們繼續尋求不斷增加的非政府成長措施。

As we have previously discussed, these opportunities include large industrial projects throughout the US, including technology infrastructure, energy transition, and the increase in domestic rare 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、能源轉型以及國內稀有開發的增加。

Importantly, these opportunities remain centered on Target's full turnkey hospitality solutions as well as expanding our value chain participation through individual elements of existing core competencies.

重要的是，這些機會仍然以塔吉特的全套交鑰匙酒店解決方案為中心，並透過現有核心能力的各個要素擴大我們的價值鏈參與。

As a reminder, the size of these growth opportunities inherently leads to longer sales cycles.

提醒一下，這些成長機會的規模本質上會導致銷售週期更長。

While we are pleased with the continued dialogue on many of these opportunities, the timing and final outcomes are uncertain and can be difficult to predict.

雖然我們對就其中許多機會進行持續對話感到高興，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 remains focused on diversifying our contract portfolio and broadening our customer reach, while continuing to generate strong operating income and industry-leading cash conversion.

我們的主要目標仍然集中在使我們的合約組合多樣化並擴大我們的客戶範圍，同時繼續產生強勁的營業收入和行業領先的現金轉換。

In summary, we have established an enhanced financial position centered on the strength of our balance sheet and strong cash flow generation.

總之，我們以資產負債表的實力和強勁的現金流生成為中心，建立了增強的財務狀況。

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 second-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二季的財務表現。

Thank you, Brad.

謝謝你，布拉德。

Our second-quarter results continue to reflect the benefits of our efficient operating model and network flexibility.

我們第二季的業績持續反映了我們高效能營運模式和網路靈活性的優勢。

Second-quarter 2024 total revenue was approximately $101 million and adjusted EBITDA was approximately $52 million.

2024 年第二季總營收約 1.01 億美元，調整後 EBITDA 約 5,200 萬美元。

Our Government segment produced quarterly revenue of approximately $60 million.

我們的政府部門季度收入約為 6000 萬美元。

The decrease in revenue from the prior period was driven by non-cash non-recurring 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非現金非經常性基礎設施增強收入，該收入與 2022 年 PCC 社區的大幅擴張相關，截至 2023 年 11 月已全部攤銷。

Our HFS and Other segments delivered quarterly revenue of $41 million.

我們的 HFS 和其他部門的季度收入為 4,100 萬美元。

These segments continue to benefit from the consistent customer demand, illustrating the value our customers find in our premier hospitality solutions.

這些細分市場繼續受益於持續的客戶需求，體現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 $9 million.

本季的經常性公司開支約為 900 萬美元。

We anticipate these will remain around $9 million to $10 million per quarter for the remainder of the year.

我們預計今年剩餘時間內每季的支出將維持在 900 萬至 1,000 萬美元左右。

Total capital spending for the quarter was approximately $9 million, primarily focused on enhancing and maintaining Target's asset base across our expansive network.

本季的總資本支出約為 900 萬美元，主要用於增強和維護 Target 在我們廣泛的網路中的資產基礎。

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 $154 million in cash and $329 million of liquidity with zero borrowings under the company's $175 million revolving credit facility and a network leverage ratio of 0.1 times.

截至本季末，我們擁有 1.54 億美元現金和 3.29 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，網路槓桿率為 0.1 倍。

These impressive financial results, coupled with a high degree of revenue visibility and strong cash conversion support our 2024 financial outlook which consists of total revenue of between $375 million and $385 million, and adjusted EBITDA between $184 million and $190 million with anticipated 2024 capital expenditures of between $25 million and $30 million.

這些令人印象深刻的財務業績，加上高度的收入可見性和強勁的現金轉換支持我們2024 年的財務前景，其中總收入在3.75 億美元至3.85 億美元之間，調整後的EBITDA 在1.84 億美元至1.9 億美元之間，預計2024 年資本支出為2,500萬至3,000萬美元之間。

We continue to progress towards achieving zero net debt and anticipate ending the year with over $350 million in total liquidity.

我們繼續朝著實現零淨債務的目標邁進，預計到年底流動性總額將超過 3.5 億美元。

As a reminder, given the dynamic fluctuations in the PCC community population, we believe it is prudent to exclude any incremental PCC occupancy-based variable revenue from our 2024 financial outlook.

提醒一下，考慮到 PCC 社群人口的動態波動，我們認為，謹慎的做法是從我們的 2024 年財務展望中排除任何基於 PCC 佔用率的增量可變收入。

Regarding our outstanding 2025 senior notes, we continue to evaluate a range of possible liability management initiatives focused on further strengthening our financial position, while balancing and expanding pipeline of strategic growth opportunities.

關於我們未償付的 2025 年優先票據，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，同時平衡和擴大戰略成長機會的管道。

This approach is centered on maximizing financial flexibility, enabling us to quickly react to value-enhancing growth opportunities as they arise.

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成長機會時快速做出反應。

The strength of our balance sheet, high degree of revenue visibility and continued strong cash conversion provides the ability to continue to actively evaluate and pursue a strong pipeline of growth initiatives.

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成長計劃。

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

這些機會旨在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。

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 second-quarter performance reflects the flexibility of our operating model and our ability to consistently deliver strong financial results.

我們第二季的業績反映了我們營運模式的靈活性以及我們持續交付強勁財務業績的能力。

This execution is reflected in the strength of our balance sheet, strong liquidity profile and enhanced financial position.

這種執行力體現在我們的資產負債表實力、強勁的流動性狀況和增強的財務狀況。

These fundamentals provide tremendous confidence in our ability to continue delivering impressive financial results while simultaneously pursuing a growth pipeline focused on expanding and diversifying our contract portfolio and customer reach.

這些基本面為我們繼續提供令人印象深刻的財務業績的能力提供了巨大的信心，同時追求專注於擴大和多樣化我們的合約組合和客戶範圍的成長管道。

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) Stephen Gengaro, Stifel.

（操作員說明）Stephen Gengaro，Stifel。

So two things for me.

對我來說有兩件事。

The first, trying to figure out exactly how to ask it, but when we think about the HFS-South business and you think about the capacity that you have that's dedicated to sort of the traditional core oilfield businesses, how is that capacity versus sort of demand and contract commitments.

首先，試圖弄清楚如何提出這個問題，但是當我們考慮 HFS-South 業務時，您會考慮您擁有的專門用於傳統核心油田業務的產能，該產能與傳統核心油田業務相比如何？承諾。

And I think what I'm trying to get to is, a, how do we think about that business in general going forward, and I know that there's been kind of a drop-off in activity here near term; and b, are you at kind of a critical mass where you can't reallocate any of those assets if something was to pop up?

我認為我想要解決的是，a，我們如何看待該業務的整體發展，我知道近期這裡的活動有所下降； b，您是否處於臨界狀態，如果發生某些情況，您將無法重新分配任何資產？

Or -- just trying to kind of gauge the capacity versus utilization and demand in the oil patch.

或者——只是試圖衡量石油區塊的產能與利用率和需求。

Yes.

是的。

Look, I think we're pretty appropriately optimized throughout the network.

看，我認為我們在整個網路上進行了相當適當的優化。

I would tell you there's shifts in our customer spend.

我想告訴你，我們的客戶支出改變了。

And just recently, we relocated some assets from one location to another.

就在最近，我們將一些資產從一個地點遷移到另一個地點。

So we still have the ability to do that, Steve, and we'll continue to look at that.

所以我們仍然有能力做到這一點，史蒂夫，我們將繼續關注這一點。

The business has been good there.

那裡的生意一直很好。

It's been steady.

一直很穩定。

We look for that to continue.

我們期待這種情況繼續下去。

As we said, we're optimizing just some of the efficiencies.

正如我們所說，我們只是優化了一些效率。

But overall, the business has been good and strong for us there.

但總體而言，我們在那裡的業務一直良好且強勁。

Optimization, I think, is probably the best we've seen it in a long time.

我認為，優化可能是我們很長一段時間以來見過的最好的優化。

It's kind of been that way for about a year.

這樣的情況已經持續了大約一年。

And we're starting to see a few customers ask for more.

我們開始看到一些客戶要求更多。

So that's nice.

所以這很好。

I'm not going to guarantee that comes, but it's nice to see some of these larger folks that have now entered the Permian over the past few years looking at doing more on their own.

我不能保證這種情況會發生，但很高興看到一些在過去幾年中進入二疊紀的較大的人正在尋求自己做更多的事情。

They're kind of getting into some more remote areas and talking to us about doing some things.

他們正在進入一些更偏遠的地區並與我們討論做一些事情。

So we look that business to continue.

因此，我們希望這項業務能夠繼續下去。

And we did add capacity last year.

去年我們確實增加了產能。

We purchased some assets in Q1 of last year, and then we also redeployed some assets from the government segment as well.

我們去年第一季購買了一些資產，然後我們也從政府部門重新部署了一些資產。

So we feel like the capacity is in a pretty good spot, but we still have the ability to move things around if we need to.

因此，我們覺得容量處於一個非常好的位置，但如果需要的話，我們仍然有能力移動東西。

And then just as a follow-up to that, is the -- and Brad, you mentioned kind of the larger customer base.

接下來，布拉德，你提到了更大的客戶群。

Does the M&A activity and there being kind of fewer larger players and the bigger players getting bigger, does that help in sort of negotiations, maybe not on price but on sort of contract duration and kind of visible demand from your customers.

併購活動以及較大參與者的減少和較大參與者變得越來越大，這是否有助於某種談判，也許不是在價格上，而是在合約期限和客戶的可見需求上。

As you know, you've been in this a long time as well as me on some of the energy side, when you get a more mature company in there, the Exxons, the Chevrons, the Occis that are spending, they look longer term.

如你所知，你和我在能源方面已經從事了很長時間，當你在那裡找到一家更成熟的公司時，埃克森公司、雪佛龍公司、奧西斯公司正在支出，他們看起來更長遠。

So our ability to do that has helped as well.

因此，我們這樣做的能力也有幫助。

So we like that.

所以我們喜歡這樣。

We think that's a positive.

我們認為這是積極的。

They also look at the HR side a little differently than some of your smaller firms.

他們對人力資源的看法也與一些小公司有所不同。

They want to take care of -- it's not that the others don't.

他們想要照顧──但其他人並不是不想照顧。

But they put a priority on making sure their workforce is taken care of.

但他們優先考慮的是確保員工得到照顧。

So as they ramp up, we think that helps us in that.

因此，隨著他們的增加，我們認為這對我們有所幫助。

Great.

偉大的。

And then just one final follow-up to that.

然後是最後的後續行動。

And just kind of given what Exxon's is doing and their sort of expectations on the DLE and the lithium side, does your relationship historically with companies like, Exxon is the one that comes to mind, in the oil patch, give you a leg up when you start talking about potential contractual agreements around alternative place?

考慮到埃克森美孚正在做的事情以及他們對 DLE 和鋰的期望，您歷史上與埃克森美孚這樣的公司的關係是否會在石油領域為您提供幫助？潛在合約協議嗎？

Yes.

是的。

I would just say, in general, if you're doing business with one of the larger companies, the door is open.

我只想說，一般來說，如果您與一家較大的公司開展業務，那麼大門是敞開的。

You don't have to beat on it a lot to get in and talk to them about an Arkansas or wherever they might be looking at doing some different work that's not so much oil and gas.

你不需要花很多力氣就可以進入並與他們談論阿肯色州或他們可能正在考慮做一些與石油和天然氣無關的不同工作的任何地方。

So yes, it definitely helps.

所以是的，這絕對有幫助。

Scott Schneeberger, Oppenheimer.

史考特‧施內伯格，奧本海默。

I want to start out in discussing Pecos.

我想先討論 Pecos。

That's on a one-year review of extension and we won't -- it will be around the time of the third-quarter call, where that's around renewal time, that's around election time.

這是對延期的一年審查，我們不會——這將在第三季電話會議的時間，也就是續約時間、選舉時間左右。

I'm just curious, I know you probably can't say too much, Brad, right now, but what type of conversations are you having with the government?

我只是很好奇，我知道布拉德，你現在可能不能說太多，但你正在與政府進行什麼類型的對話？

Do you have a sense of if that will be renewed or not?

您是否知道是否會續訂？

Or does that start much closer to that time?

還是從更接近那個時間開始的？

Yes.

是的。

I knew somebody would ask that question.

我知道有人會問這個問題。

But yes, so look, we anticipate an uninterrupted service offering through the November election and a normal course PCC renewal.

但是，是的，所以看，我們預計在 11 月的選舉和正常的 PCC 續約期間將提供不間斷的服務。

There has been some discussions already about that.

已經對此進行了一些討論。

And that's what kind of frames my statement to you, Scott, on the normal course PCC renewal.

這就是我向 Scott 就 PCC 續約正常進程發表的聲明的框架。

I won't get into too much detail.

我不會講太多細節。

We do expect that.

我們確實希望如此。

In November, right up at the time, they're not going to do it early, just kind of how these IDIQs work. but there's nothing that has been discussed that would tell us any differently.

11 月份，就在那時，他們不會提前這樣做，就像這些 IDIQ 的工作方式一樣。但沒有任何討論可以告訴我們任何不同的訊息。

And in fact, it's quite the opposite.

事實上，情況恰恰相反。

So we feel good about that going into November.

因此，我們對進入 11 月的情況感到滿意。

Appreciate that.

很欣賞這一點。

And then this third potential contract for ICF, I think I heard you say anticipating something to happen before the end of the year.

然後是 ICF 的第三份潛在合同，我想我聽到你說預計在今年年底之前會發生一些事情。

So this is a similar question, what type of timeline is that on?

這是一個類似的問題，它屬於什麼類型的時間軸？

And what's the level of certainty you're feeling?

您感覺的確定性程度如何？

Obviously, there is a change at Delhi.

顯然，德里發生了變化。

So the government is considering things in a lot of different ways these days.

因此，政府現在正在以許多不同的方式考慮事情。

Just curious your feel there.

只是好奇你在那裡的感覺。

Yes, I think the difference for everybody, and we've talked about this a lot is, when you look at the laws that protect the children, the unaccompanied minors, it's different than what was going on in Delhi.

是的，我認為每個人的區別是，我們已經討論過很多次了，當你看看保護兒童、無人陪伴的未成年人的法律時，你會發現它與德里發生的情況不同。

So they had some flexibility and some reasons they did that.

所以他們有一定的彈性，也有他們這樣做的一些原因。

But on the ICF, they still need this emergency influx capacity.

但在ICF上，他們仍然需要這種緊急湧入的能力。

Look, as of recent of last week, we were told this is moving forward.

看，截至上週，我們被告知這一切正在向前推進。

We have actually submitted our design as did some other competitors that they requested.

我們實際上已經提交了我們的設計，正如其他一些競爭對手所要求的那樣。

We expect this to become more formalized, if you will, in the fourth quarter towards the end of the year.

如果你願意的話，我們預計這將在今年第四季變得更加正式。

But today, we fully expect this to move forward and them to award that project, and we're in the middle of that.

但今天，我們完全期望這一切能夠向前發展，並且他們會授予該項目，而我們正處於其中。

And just one more for me on the topic of Delhi.

我還有一個關於德里的話題。

It feels like that's an interesting asset that could be certainly repurposed.

感覺這是一項有趣的資產，絕對可以重新利用。

And there's a lot that's going to happen over the coming few months with election and other things and in particularly kind of in the context of how you're entering the prior two questions.

未來幾個月，選舉和其他事情將會發生很多事情，特別是在你如何輸入前兩個問題的背景下。

But just Brad, what's -- HFS could be repurposed for an option there, probably still government considerations.

但布拉德，HFS 可以重新用於那裡的一個選項，可能仍然是政府的考慮。

Just what's the future of Delhi hold do you think?

您認為德里舉行的未來會是如何？

Absolutely.

絕對地。

And good question.

好問題。

For one, let me just high level, the assets are in great shape.

其一，我想說的是高水平，資產狀況良好。

They've been used for 10 years. but they've been kept up just like all of our facilities.

它們已經使用了 10 年。但它們就像我們所有的設施一樣一直得到維護。

So great shape to go to use again immediately.

形狀非常好，可以立即再次使用。

The location of this facility being close to the southern border is a major positive where it's set, as it sits.

該設施的位置靠近南部邊境，這是它所在位置的一個主要優點。

We feel strongly the use case for this facility is very high as well.

我們強烈感覺到該設施的用例也非常高。

And I'll just leave you with this.

我就把這個留給你了。

We've already started remarketing this facility as soon as we found out about this to government agencies as well as multiple prime contractors that do business with the government as well as in HFS.

當我們發現這一情況後，我們已經開始向政府機構以及與政府以及 HFS 開展業務的多個主要承包商重新行銷該設施。

But we think this facility, where it sits, how it's designed, really has a lot of capabilities to be put back to us and not be moved.

但我們認為這個設施，無論它坐落在哪裡，它是如何設計的，確實有很多功能可以放回給我們，而不是被移動。

I would tell you, we're already in the early innings.

我會告訴你，我們已經處於早期階段。

We've had a formal request come through for a proposal.

我們已收到正式的提案請求。

And so we'll get that in here over the next few weeks.

因此，我們將在接下來的幾週內將其發佈到這裡。

We'll see where it goes.

我們會看看它會去哪裡。

But the marketing and just the availability of this is already peaking folks' interest within the government prime contractors that lease to the government as well and provide services there.

但行銷和可用性已經使人們對政府主要承包商的興趣達到頂峰，這些承包商也向政府租賃並在那裡提供服務。

And look, it's an election year.

看，今年是選舉年。

I don't care which side of the aisle gets in and on that.

我不在乎走道的哪一邊進入和進入。

I think this has a lot of legs.

我覺得這個有很多腿。

And I feel good about remarketing where it sits.

我對就地進行再行銷感覺良好。

If we don't, we've shown over the past through North Dakota and in Texas, we are very good at reutilizing our assets.

如果我們不這樣做，我們過去在北達科他州和德克薩斯州的表現表明，我們非常善於重新利用我們的資產。

So I have no doubt we'll get this back out on lease.

所以我毫不懷疑我們會拿回它的租約。

Timing, I'm not going to give you, but I like what's happening kind of in the early innings today in the ballgame.

時間，我不會告訴你，但我喜歡今天球賽前幾局發生的事情。

(Operator Instructions) Greg Gibas, Northland Securities.

（操作員指示）Greg Gibas，北國證券。

Nice to hear anticipating normal course renewal with the Pecos facility.

很高興聽到佩科斯設施有望恢復正常球場。

Curious if you just have any visibility or hearing anything on kind of utilization trends going forward?

好奇您是否對未來的使用趨勢有任何了解或聽到任何資訊？

And when you would expect maybe that to pick up?

您預計什麼時候會出現這種情況？

And what maybe you think needs to happen for increased usage of that facility?

您認為需要做什麼才能增加該設施的使用？

You mean with respect to the PCC's facility, right?

您的意思是關於 PCC 的設施，對吧？

Correct?

正確的？

Utilization?

利用率？

Yes.

是的。

So as a reminder, we did have some utilization in Q1, some variable services revenue generated by that.

提醒一下，我們在第一季確實有一些利用率，由此產生了一些可變服務收入。

It is possible that the utilization trends the way it did last year, where it picked up in September, Q4 time frame.

利用率趨勢可能與去年一樣，即第四季 9 月有所回升。

And so that's a possibility.

所以這是有可能的。

Right now, obviously, there's little to no utilization in it.

顯然，現在它幾乎沒有任何用途。

But it's trending exactly as it trended last year.

但它的趨勢與去年完全相同。

So that's certainly within our expectations based on what we experienced last year in terms of utilization trends.

因此，根據我們去年在利用率趨勢方面的經歷，這肯定在我們的預期之內。

If the trend repeated itself, you'd actually see some towards the end of the year.

如果這種趨勢重演，你實際上會在年底看到一些。

Not saying that's happening, but there's definitely the possibility.

雖然不是說這種情況正在發生，但絕對有這種可能性。

We just thought it was prudent to note.

我們只是認為注意到這一點是謹慎的。

There's none in our

我們的裡面沒有

--

--

Yes, it was in our revised guidance for the rest of the year, just given the dynamic nature of that occupancy trends and utilization trends.

是的，考慮到入住率趨勢和利用率趨勢的動態性質，我們對今年剩餘時間的修訂指南中就包含了這一點。

That said, I mean, again, the occupancy is trending exactly in line as it did last year, Q2 to Q2 year over year, the trend is exactly the same.

也就是說，我的意思是，入住率趨勢與去年完全一致，從第二季到第二季度，年比趨勢完全相同。

And so that being said, last year, we did experience utilization picked up in early September through the rest of the year.

話雖這麼說，去年，我們確實在 9 月初到今年餘下的時間裡經歷了利用率的上升。

Great.

偉大的。

And it makes sense from a forecasting perspective, but I appreciate the color there.

從預測的角度來看這是有道理的，但我很欣賞那裡的顏色。

In terms of, I guess, how like -- sorry, outlook on HFS-South, what is your guidance maybe assume there from either kind of an occupancy perspective?

我想，抱歉，HFS-South 的前景如何，從兩個佔用角度來看，您的指導意見可能是什麼？

We expect the utilization trends to be somewhat comparable to the way they've trended in the first half of this year with some moderate seasonality in Q4 consistent with prior year trends.

我們預期利用率趨勢將與今年上半年的趨勢相當，第四季的季節性因素與去年的趨勢一致。

So pretty stable in terms of the utilization trending in HFS-South for the rest of the year.

就今年剩餘時間內 HFS-South 的使用率趨勢而言，相當穩定。

Okay.

好的。

Great.

偉大的。

And I guess last one, just more broad about your kind of pipeline of opportunities.

我想最後一個，只是更廣泛地介紹了您的機會管道。

Just regarding your evaluation of those organic growth opportunities that you've discussed, any change, I guess, in your pipeline or the outlook or the timing of those potential opportunities?

就您對所討論的有機成長機會的評估而言，我想您的管道或前景或這些潛在機會的時機有什麼變化嗎？

And -- or would you just say we're kind of in a similar position as last quarter as you evaluate those opportunities?

或者您會說，當您評估這些機會時，我們的處境與上季類似？

Greg, I would tell you we're still in the same position.

格雷格，我會告訴你我們仍然處於同樣的位置。

I would tell you, our pipeline of project continues to build.

我想告訴你，我們的專案管道正在繼續建造。

So we've added some quality prospects there.

所以我們在那裡增加了一些優質的潛在客戶。

As we've described in the past, the reality is most, if not all of these are really large projects.

正如我們過去所描述的，現實是大多數（如果不是全部）這些項目都是非常大的項目。

So the sales cycle is really long.

所以銷售週期確實很長。

So for all of us, the timing is difficult to predict.

因此，對於我們所有人來說，時間都很難預測。

But our focus continues to be the diversification of our contract portfolio and expanding our customer reach.

但我們的重點仍然是合約組合的多元化和擴大客戶範圍。

And look, we have a good track record over the years of closing large projects.

看，多年來我們在完成大型專案方面有著良好的記錄。

We're going to do that.

我們將這樣做。

We're going to -- we will get some of these closed.

我們將關閉其中一些。

We have a lot of paths to value creation ahead of us, and we'll execute on some of these over time.

我們面前有很多創造價值的途徑，隨著時間的推移，我們將執行其中一些途徑。

Ladies and gentlemen, this concludes your conference call for today.

女士們、先生們，今天的電話會議到此結束。

We thank you for participating and ask that you please disconnect your lines.

我們感謝您的參與，並請您斷開線路。