NASDAQ$TH

Target Hospitality Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Target Hospitality's Q2 2021 performance was marked by strong financial results and strategic advancements.

Target Hospitality reported revenue of $75.0 million, a net loss of $0.9 million, and adjusted EBITDA of $31.9 million in Q2 2021. The company experienced increased customer demand and executed on premier customer diversification, with approximately 60% of revenue related to committed revenue contracts backed by the United States Government.

  • Revenue increased to $75.0 million, up from $53.6 million in the same period last year.
  • Net loss decreased to $0.9 million, compared to a net loss of $13.7 million in Q2 2020.
  • Adjusted EBITDA rose to $31.9 million, compared to $13.4 million in the same period last year.
  • The company had strong cash generation, with net cash provided by operating activities of $67.4 million.

Headline financials

Total Revenue

$75M

Previous: $53.6M+39.8%
EPS (adj)

-$0.01

Previous: -$0.15+93.3%
Utilization

72.0%

Previous: 38.0%+89.5%
Capital Expenditures

-$104K

Previous: -$70K-48.6%
Free Cash Flow

-$1.02M

Previous: -$14.3M+92.9%
Net Income

-$912K

Previous: -$14.2M+93.6%
Operating Income

$10.9M

Previous: -$6.45M+268.2%
Gross Profit

$27.1M

Previous: $8.19M+230.4%
Cash & Equivalents

$6.47M

Previous: $19.9M-67.5%
Total Assets

$514M

Previous: $587M-12.5%
Stock-Based Comp

$1.48M

No prior period

Revenue & EPS history

Target Hospitality · Revenue · Quarterly

$75M

Q2 2021+39.8%vs Q2 2020
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Revenue by segment

Target Hospitality · $45.1M total across 2 segments · Q2 2021

  • Government
    $44.8M+168.7%
  • All Other
    $345K-97.8%

Forward guidance

Target Hospitality is reiterating its 2021 financial outlook, expecting total revenue between $260 and $270 million and adjusted EBITDA between $97 and $107 million.

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
  • Targeting a total net leverage ratio below 3.5x by year end 2021

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 Q2 2021

Historical avgQ2 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%+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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