NASDAQ$TH
Target Hospitality Corp · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Target Hospitality's first quarter results were announced, revealing a mix of financial outcomes amidst a challenging macro environment.
Target Hospitality reported revenues of $71.7 million and a net income of $3.8 million for the first quarter of 2020. The company faced challenges due to the COVID-19 pandemic and commodity market deterioration but implemented cost reduction measures and contract modifications to maintain financial flexibility.
- Revenues reached $71.7 million, compared to $82.0 million in the same period of 2019.
- Net income was $3.8 million, a significant improvement from a net loss of $14.0 million in Q1 2019.
- Adjusted EBITDA stood at $32.4 million, down from $41.3 million in the first quarter of 2019.
- The company maintained a strong balance sheet with liquidity of $47.5 million and net leverage of 2.8 times.
Headline financials
Revenue & EPS history
Target Hospitality · Revenue · Quarterly
$71.7M
Revenue by segment
Target Hospitality · $18.3M total across 2 segments · Q1 2020
- Government$16.6M+0.2%90.5%
- All Other$1.75M-78.0%9.5%
Forward guidance
Target Hospitality has withdrawn its 2020 financial outlook due to market conditions. The Company has lowered is anticipated full year 2020 growth capital expenditure to a range of $5 - $10 million but is otherwise not providing an updated 2020 financial outlook at this time.
Tailwinds
- TC Energy Corporation will proceed with the construction of the TCPL Project.
- Target will provide hospitality and catering services for the duration of this project, which is anticipated to last into 2023.
- The Company is in the process of finalizing the full project scope and anticipate increased activity and revenue associated with this project over the remainder of 2020.
- The company has taken proactive steps to modify select commercial contracts to ensure long-term success in the face of a challenging near-term market.
- These modifications utilize multi-year contract extensions to maintain contract value and provide Target with greater visibility on long-term revenue and cash flow.
Headwinds
- The COVID-19 pandemic and related economic repercussions have created significant volatility and uncertainty across global financial and commodity markets.
- These events, coupled with a substantial decline in crude oil prices, have consequently negatively affected Target’s energy end-market customers.
- The Company does anticipate a meaningful reduction in utilization levels in the second and third quarter of 2020.
- The financial results for the first quarter of 2020 reflect a small portion of what is anticipated to be a pronounced reduction in customer activity and utilization levels.
- The company has withdrawn its 2020 financial outlook.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q1 2020
+2.0%
Avg return
Earnings day
+3.2%
Avg return
5 days after
+4.5%
Avg return
30 days after
65%
20 / 31 earnings
Positive
+23.7%
Q4 2021
Best reaction
-34.9%
Q4 2019
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +17.9% | +21.7% | — | |
| Q4 2025 | +13.8% | +14.0% | +81.2% | |
| Q3 2025 | -15.5% | -15.4% | +6.7% | |
| Q1 2025 | +5.1% | +3.8% | -0.3% | |
| Q4 2024 | +6.4% | +7.3% | +3.6% | |
| Q3 2024 | +6.4% | -1.5% | -6.2% | |
| Q2 2024 | +12.5% | +10.5% | +10.5% | |
| Q1 2024 | +5.0% | +4.1% | +0.5% | |
| Q4 2023 | +4.8% | +1.8% | +25.4% | |
| Q3 2023 | -3.6% | -9.1% | -13.4% | |
| Q2 2023 | +7.8% | +13.5% | +21.9% | |
| Q1 2023 | +13.9% | +25.2% | +24.5% | |
| Q4 2022 | +6.0% | +8.4% | -23.0% | |
| Q3 2022 | +17.6% | +23.2% | +38.6% | |
| Q2 2022 | -9.6% | -2.6% | -7.8% | |
| Q1 2022 | -11.0% | -13.3% | -3.2% | |
| Q4 2021 | +23.7% | +18.6% | +19.6% | |
| Q3 2021 | -2.0% | -13.1% | -31.6% | |
| Q2 2021 | -16.4% | -14.4% | -4.2% | |
| Q1 2021 | +8.3% | +32.8% | +56.6% | |
| Q4 2020 | +6.8% | -7.7% | +30.6% | |
| Q3 2020 | +3.2% | +0.4% | +30.7% | |
| Q2 2020 | +12.4% | +13.8% | -9.0% | |
| Q1 2020 | +8.2% | +5.9% | -28.6% | |
| Q4 2019 | -34.9% | -3.1% | -58.3% | |
| Q3 2019 | -11.2% | -15.0% | -15.5% | |
| Q2 2019 | -13.5% | -12.2% | -8.9% | |
| Q1 2019 | -0.7% | -1.1% | -6.7% | |
| Q3 2018 | +0.1% | +0.2% | +1.7% | |
| Q2 2018 | +0.5% | +0.5% | +0.2% | |
| Q1 2018 | -0.5% | +1.0% | -0.7% | |
| Q4 2018 | — | — | — | |
| Q3 2017 | — | — | — | |
| Q2 2017 | — | — | — | |
| Q1 2017 | — | — | — |
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