Target Hospitality Reports ICF Contract Details; Cuts FY23 Revenue Outlook

(RTTNews) - Target Hospitality Corp. (TH) on Wednesday reported certain contract details related to the humanitarian contract award for the Influx Care Facility (ICF) located at Target's Pecos Children's Center community. The $75 billion Indefinite Delivery, Indefinite Quantity (IDIQ) contract has five years of performance, with the ability to extend for an additional five years.

The ICF Contract allows for up to $3.3 billion of potential funding through 2028, with the opportunity of additional funding access through 2033, if the IDIQ 5-year option is exercised.

In conjunction with the ICF Contract, Target and its non-profit partner have entered into a new PCC contract (New PCC Contract) which is expected to provide for approximately $178 million of minimum annual lease revenue commitments, with the potential for a cumulative revenue of over $1.7 billion through 2028, assuming the U.S. government exercises all option periods.

As a result of the effective date of the New PCC Contract, the Company is cutting full-year 2023 Revenue Guidance From $550 million - $580 million To $550 million - $560 million and sees full-year 2024 Revenue between $410 million - $425 million.