THE WOODLANDS,
Texas, June 10, 2024
/PRNewswire/ -- Target Hospitality Corp. ("Target
Hospitality", "Target" or the "Company") (NASDAQ: TH), one of
North America's largest providers
of vertically integrated modular accommodations and value-added
hospitality services, today received notice that the U.S.
government intends to terminate the existing South Texas Family
Residential Center ("STFRC") services agreement with Target's
migrant programming partner ("STFRC Partner"), effective in 60
days, or on or about August 9, 2024
("Effective Date").
As a reminder, Target provides facility and
hospitality solutions to the STFRC Partner, through a lease and
services agreement ("STFRC Contract") utilizing Target's owned
modular assets. The STFRC Partner has provided notice to
Target of their intention to terminate the STFRC Contract
concurrent with the Effective Date.
Target will retain ownership of these assets enabling the
Company to continue utilizing these modular solutions to support
customer demand across its existing operating segments and other
potential growth opportunities.
Given the notice of termination was received today, and the
remaining operational logistics associated with the notice, Target
intends to provide operational and financial updates giving effect
to the termination prior to June 30,
2024.
About Target Hospitality
Target Hospitality is one of North America's largest providers of
vertically integrated modular accommodations and value-added
hospitality services in the United
States. Target builds, owns and operates a customized and
growing network of communities for a range of end users through a
full suite of value-added solutions including premium food service
management, concierge, laundry, logistics, security and
recreational facilities services.
Cautionary Statement Regarding Forward Looking
Statements
Certain statements made in this press release
(including the financial outlook contained herein) are "forward
looking statements" within the meaning of the "safe harbor"
provisions of the United States Private Securities Litigation
Reform Act of 1995. When used in this press release, the words
"estimates," "projected," "expects," "anticipates," "forecasts,"
"plans," "intends," "believes," "seeks," "may," "will," "should,"
"future," "propose" and variations of these words or similar
expressions (or the negative versions of such words or expressions)
are intended to identify forward-looking statements. These
forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside our control, that could cause
actual results or outcomes to differ materially from those
discussed in the forward-looking statements. Important factors,
among others, that may affect actual results or outcomes include:
operational, economic, including inflation, political and
regulatory risks; our ability to effectively compete in the
specialty rental accommodations and hospitality services industry,
including growing the HFS – South and Government segments;
effective management of our communities; natural disasters and
other business distributions including outbreaks of epidemic or
pandemic disease; the duration of any future public health crisis,
related economic repercussions and the resulting negative impact to
global economic demand; the effect of changes in state building
codes on marketing our buildings; changes in demand within a number
of key industry end-markets and geographic regions; changes in
end-market demand requirements including variable occupancy levels
associated with subcontracts in the Government segment; our
reliance on third party manufacturers and suppliers; failure to
retain key personnel; increases in raw material and labor costs;
the effect of impairment charges on our operating results; our
future operating results fluctuating, failing to match performance
or to meet expectations; our exposure to various possible claims
and the potential inadequacy of our insurance; unanticipated
changes in our tax obligations; our obligations under various laws
and regulations; the effect of litigation, judgments, orders,
regulatory or customer bankruptcy proceedings on our business; our
ability to successfully acquire and integrate new operations;
global or local economic and political movements, including any
changes in policy under the Biden administration or any future
administration; federal government budgeting and appropriations;
our ability to effectively manage our credit risk and collect on
our accounts receivable; our ability to fulfill Target
Hospitality's public company obligations; any failure of our
management information systems; our ability to refinance debt
on favorable terms and meet our debt service requirements and
obligations; and risks related to our outstanding obligations in
connection with the Senior Notes. We undertake no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
Investor Contact
Mark Schuck
(832) 702 – 8009
ir@targethospitality.com
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SOURCE Target Hospitality