NASDAQ$TH

Target Hospitality Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Target Hospitality's Q3 2023 performance was marked by strong financial results and strategic advancements.

Target Hospitality reported Q3 2023 revenue of $145.9 million and net income of $45.6 million, with adjusted EBITDA reaching $95.0 million. The company also announced a contract award for the Influx Care Facility at its Pecos Children’s Center and is optimizing its financial position, anticipating available liquidity to exceed $315 million by year-end 2023.

  • Revenue reached $145.9 million, compared to $159.6 million for the same period in 2022.
  • Net income increased to $45.6 million, up from $19.0 million in the same period last year.
  • Adjusted EBITDA rose by 13% to $95.0 million.
  • The company anticipates available liquidity exceeding $315 million by year-end 2023.

Headline financials

Total Revenue

$146M

Previous: $160M-8.5%
EPS (adj)

$0.43

Previous: $0.20+115.0%
Average Utilized Beds

14.5K

Previous: 13.2K+10.1%
Utilization

89.0%

Previous: 88.0%+1.1%
Capital Expenditures

-$5M

Previous: -$22.3M+77.6%
Free Cash Flow

$40.6M

Previous: -$3.28M+1337.9%
Net Income

$45.6M

Previous: $19M+139.6%
Operating Income

$67.7M

Previous: $59.9M+13.0%
Gross Profit

$86.8M

Previous: $82.8M+4.8%
Cash & Equivalents

$105M

Previous: $177M-40.6%
Total Assets

$697M

Previous: $730M-4.5%
Stock-Based Comp

$4.84M

Previous: $8.44M-42.7%

Revenue & EPS history

Target Hospitality · Revenue · Quarterly

$146M

Q3 2023-8.5%vs Q3 2022
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 2023 outlook, excluding acquisitions, with total revenue expected to be between $550 and $580 million and adjusted EBITDA between $346 and $365 million.

Tailwinds

  • Total revenue between $550 and $580 million
  • Adjusted EBITDA between $346 and $365 million
  • Total capital spending between $30 and $35 million, excluding acquisitions
  • Zero net debt by year end 2023
  • Includes non-cash infrastructure revenue amortization of approximately $117 million

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 2023

Historical avgQ3 2023

+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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