Target Hospitality Announces Senior Level Promotions
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Insights
An assessment of Target Hospitality's executive management changes can be approached from a financial perspective by examining the continuity in leadership and potential impact on the company's strategic financial plans. The promotion of Jason Vlacich to Chief Financial Officer signals a commitment to internal talent development and could be seen as a positive indicator of stability within the finance department. Vlacich's extensive experience in finance, public accounting and hospitality accounting, coupled with his history of leading the company's accounting and financial reporting, suggests that the transition is likely to be smooth.
Furthermore, the reaffirmation of the financial outlook for 2023 and 2024, following the announcement of a significant contract award, may reassure investors about the company's financial health and the robustness of its revenue streams. The seamless CFO transition, with no changes to the finance and accounting teams, supports the expectation of continuity in financial strategy and reporting, which is crucial for maintaining investor confidence.
From a market perspective, the promotions within Target Hospitality are noteworthy for several reasons. Firstly, the elevation of Troy Schrenk to Senior Executive Vice President of Operations and Chief Commercial Officer indicates a strategic emphasis on operations and commercial growth. Schrenk's background in revenue growth and strategic management, particularly in the government segment, is likely to be pivotal as the company aims to capitalize on the $3.3 billion contract for the Pecos Humanitarian Community.
Secondly, the promotions may be interpreted by the market as a signal of internal stability and a commitment to leveraging existing human capital. This can be a positive sign for investors, as it often correlates with deep institutional knowledge and a potentially more cohesive corporate strategy. The market will closely observe how these leadership changes influence the company's operational efficiency and its ability to secure and manage large-scale contracts.
From a human resources standpoint, the internal promotions of Vlacich and Schrenk reflect a strategic approach to leadership succession planning. Promoting from within can enhance employee morale and loyalty, as it demonstrates a clear pathway for career advancement. Additionally, such promotions often result in less disruption to company operations than external hires, as internally promoted executives are already familiar with company culture and processes.
It is also important to consider the potential implications for talent retention and recruitment. Target Hospitality's decision to promote leaders with extensive industry experience and tenure with the company may serve as a compelling narrative for attracting top talent who value professional growth opportunities and stability within an organization.
- Promotes Jason Vlacich to Chief Financial Officer & Chief Accounting Officer
- Promotes Troy Schrenk to Senior Executive Vice President Operations & Chief Commercial Officer
- Reaffirms Full Year 2023 and Preliminary 2024 Financial Outlook
These two promotions align well with the recently awarded transformational, multi-year humanitarian contract award to Target Hospitality. Mr. Schrenk will lead the Company's business and commercial operations, construction, business development, and government relations. Mr. Vlacich will lead the finance, accounting, treasury, tax, IT business applications and investor relations functions. Mr. Vlacich succeeds Eric Kalamaras, who has departed from the Company to pursue other interests. The Company expects a seamless CFO transition given the finance and accounting teams remain intact and given the long history of Mr. Vlacich leading the accounting and financial reporting efforts for the past six years.
Brad Archer, Target Hospitality's President and Chief Executive Officer, stated, "Jason and Troy have been integral parts of our finance and operating teams, respectively. These promotions are exciting and well-earned next steps for these two leaders. Their business acumen, functional expertise, industry knowledge and extensive experience make them well suited to assume a more significant role in this premier organization. Importantly, having been with us for many years, they are each a strong cultural fit. We are confident in Jason and Troy's ability to provide strategic leadership and vision as we continue to enhance our strong financial position and scalable operating platform. We thank Eric for his service to Target Hospitality and wish him the very best."
Mr. Vlacich brings a wealth of financial experience, with over 20 years in finance, public accounting and hospitality accounting. The promotion expands on his continuing role as the Company's Chief Accounting Officer since 2018, where he has made significant contributions to the finance, accounting, tax, and other key financial functions, as well as leading the implementation of transformative key business applications. Prior to joining Target Hospitality, he served as Chief Accounting Officer at Highgate Hotels, L.P., where he led the company's domestic and European accounting expansion and centralization as well as the implementation of global accounting systems. Prior to his role at Highgate Hotels, L.P., Mr. Vlacich was a Senior Audit Manager and served in various other roles at PricewaterhouseCoopers, LLP where he provided services to public and private companies, including for initial public offerings, across multiple industries with a concentration in the hospitality industry. Mr. Vlacich also served in a variety of financial reporting, Sarbanes-Oxley compliance, and corporate accounting roles in other industries and public companies. Mr. Vlacich holds a bachelor's degree in Accountancy from Bentley University and is a Certified Public Accountant.
Since joining the Company in 2012, Mr. Schrenk has led teams that have achieved record revenue growth by forging new, diversified and durable customer relationships including the transformational expansion of the company's government segment With over 20 years of experience in specialty rentals, housing, construction and hospitality industries, Mr. Schrenk will continue to serve as the Company's Chief Commercial Officer a role he has served since 2018 and is a proven leader with a track record of success in revenue growth, operations and strategic growth management, which began with Fortune 500 Centex Homes from 2000 to 2005. He held various leadership roles at other homebuilding, specialty rental and manufacturing companies prior to joining Target Hospitality. Mr. Schrenk holds an MBA from Boise State University and a bachelor's degree from George Fox University.
The Company today also reaffirmed its full year 2023 and preliminary 2024 financial outlook, which it provided in connection with the announcement of the
Mr. Kalamaras' departure is not a result of any disagreement with the Company or its independent auditors on any matter relating to the Company's accounting, financials, strategy, management, operations, policies, regulatory matters or financial practices.
About Target Hospitality
Target Hospitality is one of
Cautionary Statement Regarding Forward Looking Statements
Certain statements made in this press release 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," "could," "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; federal government's determination to exercise option periods associated with the humanitarian contract; our ability to effectively compete in the specialty rental accommodations and hospitality services industry; effective management of our communities; natural disasters and other business distributions including outbreaks of epidemic or pandemic disease; changes in demand within a number of key industry end-markets and geographic regions; failure to retain key personnel; increases in raw material and labor costs; 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; 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; federal government budgeting and appropriations. 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.
Contacts:
Investors
Mark Schuck
(832) 702 – 8009
ir@targethospitality.com
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SOURCE Target Hospitality
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