NASDAQ$TH

Target Hospitality Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Target Hospitality reported record setting 2022 results and achieved significant milestone towards multiyear contract award for expanded humanitarian community.

Target Hospitality reported a strong fourth quarter and full year 2022, driven by the Government segment and the Expanded Humanitarian Community. The company achieved record revenue and Adjusted EBITDA for the year, and saw increased customer demand across its HFS segments.

  • Record revenue of $502.0 million for year ended December 31, 2022, an increase of 72% year-over-year
  • Net income of $73.9 million for year ended December 31, 2022, compared to net loss of $4.6 million for the same period in 2021
  • Extended numerous HFS customer contracts worth over $200 million of cumulative revenue through 2028
  • Maximizing network optimization with a 25% increase in total average utilized beds from 2021

Headline financials

Total Revenue

$152M

Previous: $81.7M+86.6%
EPS (adj)

$0.31

Previous: $0.03+933.3%
Average Utilized Beds

14.2K

Previous: 11.4K+25.1%
Utilization

90.0%

Previous: 77.0%+16.9%
Net Income

$31.6M

Previous: $2.8M+1028.0%
Operating Income

$64.2M

Previous: $13.7M+369.5%
Gross Profit

$83.9M

Previous: $29.2M+187.2%
Cash & Equivalents

$182M

Previous: $23.4M+676.2%
Total Assets

$772M

Previous: $513M+50.3%
Stock-Based Comp

$5.57M

Previous: $1.48M+275.5%

Revenue & EPS history

Target Hospitality · Revenue · Quarterly

$152M

Q4 2022+86.6%vs Q4 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Target Hospitality · $151M total across 3 segments · Q4 2022

  • Government
    $115M+145.3%
  • Hospitality & Facilities Services - South
    $34.5M+5.9%
  • All Other
    $714K+34.7%

Forward guidance

Target Hospitality provided preliminary 2023 outlook, excluding acquisitions, including total minimum revenue of $525 million (excluding variable service revenue), total maximum revenue of $710 million (including variable service revenue), minimum Adjusted EBITDA of $365 million, and zero net debt by second half of 2023.

Tailwinds

  • Total minimum revenue of $525 million (excluding variable service revenue)
  • Total maximum revenue of $710 million (including variable service revenue)
  • Minimum Adjusted EBITDA(1) of $365 million
  • Zero net debt by second half of 2023
  • 2023 financial outlook includes non-cash infrastructure revenue amortization of approximately $117 million associated with the Expanded Humanitarian Community enhancements.

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 2022

Historical avgQ4 2022

+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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