NASDAQ$TH

Target Hospitality Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported results for the first quarter of 2021 and raised full year 2021 financial outlook.

Target Hospitality reported a revenue of $45.5 million and a net loss of $13.1 million for the first quarter of 2021. The company executed a $118 million minimum revenue contract and increased the midpoint of its 2021 Adjusted EBITDA outlook range by 11% to $97 - $107 million.

  • Revenue of $45.5 million for the three months ended March 31, 2021, compared to $71.7 million for the same period in 2020.
  • Net loss of $13.1 million for the three months ended March 31, 2021, compared to net income of $5.5 million for first quarter 2020
  • Adjusted EBITDA of $16.0 million for the three months ended March 31, 2021, compared to $32.4 million for the same period in 2020
  • Executed a $118 million minimum revenue contract that provides a suite of comprehensive service offerings assisting humanitarian aid efforts in support of the United States Government

Headline financials

Total Revenue

$45.5M

Previous: $71.7M-36.5%
EPS (adj)

-$0.14

Previous: $0.05-380.0%
Average Utilized Beds

6.9K

Previous: 9.8K-30.0%
Utilization

51.0%

Previous: 76.0%-32.9%
Average Daily Rate

$70.01

Previous: $77.82-10.0%
Capital Expenditures

-$29K

Previous: -$13K-123.1%
Free Cash Flow

-$13.2M

Previous: $3.79M-447.6%
Net Income

-$13.1M

Previous: $3.8M-445.6%
Operating Income

-$4.11M

Previous: $14.1M-129.3%
Gross Profit

$11.5M

Previous: $27.1M-57.8%
Cash & Equivalents

$6.37M

Previous: $7.5M-15.1%
Total Assets

$522M

Previous: $593M-12.0%
Stock-Based Comp

$761K

No prior period

Revenue & EPS history

Target Hospitality · Revenue · Quarterly

$45.5M

Q1 2021-36.5%vs Q1 2020
Beat estimate in 6 of 11 quarters(55%)
ActualEstimate

Revenue by segment

Target Hospitality · $18.3M total across 2 segments · Q1 2021

  • Government
    $18M+8.7%
  • All Other
    $292K-83.3%

Forward guidance

The Company expects consistent improvements within its legacy markets and the addition of a fully committed $118 million minimum revenue contract increases the 2021 revenue outlook, which provides the foundation to materially enhance operational flexibility through meaningful cash flow generation.

Tailwinds

  • Total revenue between $260 and $270 million
  • Adjusted EBITDA between $97 and $107 million
  • Interest expense between $33 and $35 million
  • Discretionary Cash Flow between $65 and $70 million
  • Total capital spending between $15 and $20 million, excluding acquisitions

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 2021

Historical avgQ1 2021

+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

Earnings price reactions
QuarterReport dateReaction (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%+33.4%+57.8%
Q4 2020+6.8%-7.7%+29.7%
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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