NASDAQ$TH

Target Hospitality Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Target Hospitality reported impressive results driven by efficient operating model and network capabilities.

Target Hospitality reported a revenue of $100.7 million and a net income of $18.4 million for the three months ended June 30, 2024. The company's strong cash generation and financial flexibility support continued evaluation of diversifying growth opportunities.

  • Revenue was $100.7 million for the three months ended June 30, 2024.
  • Net income was $18.4 million for the three months ended June 30, 2024.
  • Adjusted EBITDA was $52.2 million for the three months ended June 30, 2024.
  • The Company had approximately $154 million of cash and cash equivalents as of June 30, 2024.

Headline financials

Total Revenue

$101M

Previous: $144M-29.9%
EPS (adj)

$0.18

Previous: $0.44-59.1%
Capital Expenditures

-$261K

Previous: -$5M+94.8%
Free Cash Flow

$18.1M

Previous: $41.5M-56.3%
Net Income

$18.4M

Previous: $46.5M-60.4%
Operating Income

$29.6M

Previous: $64.8M-54.4%
Gross Profit

$46.9M

Previous: $82.4M-43.1%
Cash & Equivalents

$154M

Previous: $69.6M+121.8%
Total Assets

$697M

Previous: $666M+4.7%
Stock-Based Comp

$1.34M

Previous: $3.47M-61.5%

Revenue & EPS history

Target Hospitality · Revenue · Quarterly

$101M

Q2 2024-29.9%vs Q2 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Target Hospitality · $146M total across 3 segments · Q3 2023

  • Government
    $106M-14.4%
  • Hospitality & Facilities Services - South
    $37.5M+11.6%
  • All Other
    $2.87M+275.3%

Forward guidance

Target Hospitality is reiterating its 2024 outlook.

Tailwinds

  • Total revenue between $375 and $385 million
  • Adjusted EBITDA between $184 and $190 million
  • Total capital spending between $25 and $30 million, excluding acquisitions
  • Zero net debt by year end 2024
  • Year end 2024 total available liquidity exceeding $350 million

Headwinds

  • The U.S. government intends to terminate the South Texas Family Residential Center contract effective on or about August 9, 2024.
  • Target believes it prudent to exclude from its 2024 outlook any incremental PCC variable revenue.
  • Year over year decreases were primarily driven by non-cash, nonrecurring, infrastructure enhancement revenue amortization associated with the Company’s Pecos Children’s Center community.
  • Revenue for the three months ended June 30, 2024, was $59.9 million compared to $101.2 million for the same period in 2023.
  • Revenue for the three months ended June 30, 2024, was $38.2 million compared to $39.2 million for the same period in 2023.

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 2024

Historical avgQ2 2024

+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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