Target Hospitality Corp

NASDAQ:THUnited States

Nov 12, 2024

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• -- Earnings Flash (TH) TARGET HOSPITALITY Posts Q3 Revenue $95.2M, from 6:46AM ET on Tuesday Nov 12, 2024 by MT Newswires

  6:46AM ET on Tuesday Nov 12, 2024 by MT Newswires
  Companies Mentioned: TH
  06:46 AM EST, 11/12/2024 (MT Newswires) -- ...

• Target Hospitality Reports Impressive Third Quarter 2024 Results Supported by Strong Business Fundamentals, from 6:45AM ET on Tuesday Nov 12, 2024 by PR Newswire

  6:45AM ET on Tuesday Nov 12, 2024 by PR Newswire
  Companies Mentioned: TH

  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 reported results for the three months ended September 30, 2024.

• Target Hospitality Reports Impressive Third Quarter 2024 Results Supported by Strong Business Fundamentals, from 6:45AM ET on Tuesday Nov 12, 2024 by Dow Jones

  6:45AM ET on Tuesday Nov 12, 2024 by Dow Jones
  Companies Mentioned: TH
  Total current liabilities 229,293 70,330 Long-term debt, net -- 178,093 Other non-current liabilities 62,857 68,623 ----------- ---------- Total liabilities 292,150 317,046 ----------- ---------- Stockholders' equity Common stock and other stockholders' equity 97,722 116,192 Accumulated earnings 319,878 261,115 ----------- ---------- Total stockholders' equity attributable to Target Hospitality Corp. stockholders 417,600 377,307 Noncontrolling interest in consolidated subsidiaries 35 -- ----------- ---------- Total stockholders' equity 417,635 377,307 ----------- ---------- Total liabilities and stockholders' equity $ 709,785 $ 694,353 =========== ========== Exhibit 3 Target Hospitality Corp. Condensed Consolidated Cash Flow Data ($ in thousands) (unaudited) For the Nine Months Ended September 30, ----------------------------- 2024 2023 --------------- ------------ Cash and cash equivalents - beginning of period $ 103,929 $ 181,673 Cash flows from operating activities Net income 58,863 135,857 Adjustments: Depreciation 45,235 54,648 Amortization of intangible assets 10,103 10,076 Other non-cash items 15,257 64,612 Changes in operating assets and liabilities (8,335) (146,681) ----------- ----------- Net cash provided by operating activities $ 121,123 $ 118,512 Cash flows from investing activities Purchases of specialty rental assets (23,638) (53,662) Other investing activities 217 (7,247) ----------- ----------- Net cash used in investing activities $ (23,421) $ (60,909) Cash flows from financing activities Other financing activities (23,879) (134,177) ----------- ----------- Net cash used in financing activities $ (23,879) $ (134,177) Effect of exchange rate changes on cash and cash equivalents (5) 5 Change in cash and cash equivalents 73,818 (76,569) Cash and cash equivalents - end of period $ 177,747 $ 105,104 ----------- ----------- Exhibit 4 Target Hospitality Corp. Reconciliation of Gross profit to Adjusted gross profit ($ in thousands) (unaudited) For the Three Months Ended For the Nine Months Ended September 30, September 30, ------------------------- ---------------------------- 2024 2023 2024 2023 ------------- ---------- ------------- ------------- Gross Profit $ 45,210 $ 86,756 $ 141,148 $ 251,085 Adjustments: Depreciation of specialty rental assets 14,057 17,653 43,643 53,242 --------- --------- --------- --------- Adjusted gross profit $ 59,267 $ 104,409 $ 184,791 $ 304,327 ========= ========= ========= ========= Exhibit 5 Target Hospitality Corp. Reconciliation of Net income to EBITDA and Adjusted EBITDA ($ in thousands) (unaudited) For the Three Months Ended For the Nine Months Ended September 30, September 30, ----------------------- ---------------------------- 2024 2023 2024 2023 ------------ --------- ------------- ------------- Net income $ 20,094 $ 45,579 $ 58,863 $ 135,857 Income tax expense 4,084 14,608 17,118 40,528 Interest expense, net 3,813 4,953 12,673 17,726 Loss on extinguishment of debt -- -- -- 2,128 Other depreciation and amortization 3,902 3,838 11,695 11,482 Depreciation of specialty rental assets 14,057 17,653 43,643 53,242 -------- -------- --------- --------- EBITDA $ 45,950 $ 86,631 $ 143,992 $ 260,963 Adjustments Other expense (income), net (2) (71) (158) 1,244 Transaction expenses 1,958 504 4,119 593 Stock-based compensation 1,600 4,835 5,683 13,948 Change in fair value of warrant liabilities -- 2,576 (675) (1,809) Other adjustments 199 569 2,609 1,619 -------- -------- --------- --------- Adjusted EBITDA $ 49,705 $ 95,044 $ 155,570 $ 276,558 ======== ======== ========= ========= Exhibit 6 Target Hospitality Corp. Reconciliation of Net cash provided by operating activities to Discretionary cash flows ($ in thousands) (unaudited) For the Three Months For the Nine Months Ended Ended September 30, September 30, ----------------------- ------------------------ 2024 2023 2024 2023 ------------ --------- ------------ ---------- Net cash provided by operating activities $ 31,427 $ 48,237 $ 121,123 $ 118,512 Less: Maintenance capital expenditures for specialty rental assets (8,595) (6,222) (17,982) (10,725) -------- -------- -------- --------- Discretionary cash flows $ 22,832 $ 42,015 $ 103,141 $ 107,787 -------- -------- -------- --------- Purchase of specialty rental assets (7,720) (10,746) (23,638) (53,662) Purchase of property, plant and equipment (63) (1,448) (324) (2,941) Acquired intangible assets -- -- -- (4,547) Proceeds from sale of specialty rental assets and other property, plant and equipment 499 76 541 241 -------- -------- -------- --------- Net cash used in investing activities $ (7,284) $(12,118) $ (23,421) $ (60,909) -------- -------- -------- --------- Principal payments on finance and finance lease obligations (399) (336) (1,223) (1,037) Repayment of Senior Notes -- -- -- (125,000) Repurchase of Common Stock (757) -- (21,894) -- Payment of issuance costs from warrant exchange -- -- -- (1,504) Proceeds from issuance of Common Stock from exercise of warrants -- -- 3 209 Proceeds from issuance of Common Stock from exercise of stock options 464 144 1,850 1,396 Payment of deferred financing costs -- -- -- (1,423) Taxes paid related to net share settlement of equity awards -- (400) (2,615) (6,818) -------- -------- -------- --------- Net cash used in financing activities $ (692) $ (592) $ (23,879) $(134,177) -------- -------- -------- ---------