NASDAQ$TH

Target Hospitality Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Target Hospitality's Q4 2020 earnings decreased due to the COVID-19 pandemic's impact on energy end-market activity, partially offset by Keystone XL project revenue.

Target Hospitality reported a decrease in revenue and net loss for Q4 2020, primarily due to reduced energy end-market customer activity caused by the COVID-19 pandemic. This was partially offset by increased activity from the TC Energy Corporation's Keystone XL pipeline project.

  • Q4 2020 revenue was $51.6 million, compared to $76.1 million in Q4 2019.
  • Net loss for Q4 2020 was $9.2 million, compared to net income of $0.1 million in Q4 2019.
  • Adjusted EBITDA for Q4 2020 was $15.8 million, compared to $36.0 million in Q4 2019.
  • The Keystone XL pipeline project contributed approximately $13.8 million in revenue in Q4 2020.

Headline financials

Total Revenue

$51.6M

Previous: $76.1M-32.2%
EPS (adj)

-$0.10

Previous: $0.07-242.9%
Utilization

43.0%

Previous: 76.0%-43.4%
Average Daily Rate

$69.92

Previous: $80.90-13.6%
Net Income

-$9.21M

Previous: $66K-14054.5%
Operating Income

-$2.56M

Previous: $11.5M-122.3%
Gross Profit

$10.1M

Previous: $31.5M-68.0%
Cash & Equivalents

$6.98M

Previous: $6.79M+2.8%
Total Assets

$534M

Previous: $601M-11.1%
Stock-Based Comp

$784K

Previous: $885K-11.4%

Revenue & EPS history

Target Hospitality · Revenue · Quarterly

$51.6M

Q4 2020-32.2%vs Q4 2019
Beat estimate in 5 of 10 quarters(50%)
ActualEstimate

Revenue by segment

Target Hospitality · $14M total across 2 segments · Q4 2020

  • Government
    $13.7M-18.5%
  • All Other
    $229K-88.4%

Forward guidance

Target Hospitality anticipates gradual increases in customer activity throughout 2021, with a more normalized market in 2022. The company announced its 2021 financial outlook with total revenue between $235 and $245 million and adjusted EBITDA between $88 and $95 million.

Tailwinds

  • Total revenue between $235 and $245 million
  • Adjusted EBITDA between $88 and $95 million
  • Interest expense between $34 and $36 million
  • Discretionary Cash Flow between $55 and $60 million
  • Targeting a total net leverage ratio of below 4.0x 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 Q4 2020

Historical avgQ4 2020

+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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