NASDAQ$TH

Target Hospitality Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported exceptional third quarter results driven by significant cash flows and strengthening customer demand led by government contracts.

Target Hospitality reported an 85% increase in revenue to $89.2 million and a net income increase to $6.7 million for the third quarter of 2021. The company also raised its full year 2021 financial outlook by 7% for revenue and 9% for Adjusted EBITDA.

  • Revenue increased to $89.2 million, an increase of 85% year-over-year.
  • Net income increased to $6.7 million, an increase of $14.3 million year-over-year.
  • Adjusted EBITDA of $37.5 million, up 121% year-over-year.
  • Approximately 52% of third quarter 2021 revenue related to committed revenue contracts backed by the United States Government.

Headline financials

Total Revenue

$89.2M

Previous: $48.3M+84.8%
EPS (adj)

$0.07

Previous: -$0.08+187.5%
Average Utilized Beds

11.1K

Previous: 4.8K+129.9%
Utilization

75.0%

Previous: 36.0%+108.3%
Average Daily Rate

$76.78

Previous: $81.28-5.5%
Capital Expenditures

-$301K

Previous: -$182K-65.4%
Free Cash Flow

$6.37M

Previous: -$8.05M+179.2%
Net Income

$6.68M

Previous: -$7.87M+184.8%
Operating Income

$16.7M

Previous: -$948K+1859.7%
Gross Profit

$33.6M

Previous: $11.7M+186.8%
Cash & Equivalents

$30.6M

Previous: $9.1M+236.6%
Total Assets

$530M

Previous: $551M-3.9%
Stock-Based Comp

$1.36M

No prior period

Revenue & EPS history

Target Hospitality · Revenue · Quarterly

$89.2M

Q3 2021+84.8%vs Q3 2020
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Revenue by segment

Target Hospitality · $78M total across 3 segments · Q3 2021

  • Government
    $46.4M+185.5%
  • Hospitality & Facilities Services - South
    $31.1M
  • All Other
    $529K-95.5%

Forward guidance

Target Hospitality raised 2021 financial outlook to total revenue between $280 and $285 million and Adjusted EBITDA between $110 and $113 million.

Tailwinds

  • Total revenue between $280 and $285 million
  • Adjusted EBITDA between $110 and $113 million
  • Interest expense between $33 and $35 million
  • Discretionary Cash Flow between $75 and $80 million
  • Targeting a total net leverage ratio below 3.0x 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 Q3 2021

Historical avgQ3 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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