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Mar 31, 2021

Target Hospitality Q1 2021 Earnings Report

Reported results for the first quarter of 2021 and raised full year 2021 financial outlook.

Key Takeaways

Target Hospitality reported a revenue of $45.5 million and a net loss of $13.1 million for the first quarter of 2021. The company executed a $118 million minimum revenue contract and increased the midpoint of its 2021 Adjusted EBITDA outlook range by 11% to $97 - $107 million.

Revenue of $45.5 million for the three months ended March 31, 2021, compared to $71.7 million for the same period in 2020.

Net loss of $13.1 million for the three months ended March 31, 2021, compared to net income of $5.5 million for first quarter 2020

Adjusted EBITDA of $16.0 million for the three months ended March 31, 2021, compared to $32.4 million for the same period in 2020

Executed a $118 million minimum revenue contract that provides a suite of comprehensive service offerings assisting humanitarian aid efforts in support of the United States Government

Total Revenue
$45.5M
Previous year: $71.7M
-36.5%
EPS
-$0.14
Previous year: $0.05
-380.0%
Average daily rate
$70
Previous year: $77.8
-10.0%
Avg. utilized beds
6.86K
Previous year: 9.8K
-30.0%
Utilization rate
51%
Previous year: 76%
-32.9%
Gross Profit
$11.5M
Cash and Equivalents
$6.37M
Previous year: $7.5M
-15.0%
Total Assets
$522M

Target Hospitality

Target Hospitality

Target Hospitality Revenue by Segment

Forward Guidance

The Company expects consistent improvements within its legacy markets and the addition of a fully committed $118 million minimum revenue contract increases the 2021 revenue outlook, which provides the foundation to materially enhance operational flexibility through meaningful cash flow generation.

Positive Outlook

  • Total revenue between $260 and $270 million
  • Adjusted EBITDA between $97 and $107 million
  • Interest expense between $33 and $35 million
  • Discretionary Cash Flow between $65 and $70 million
  • Total capital spending between $15 and $20 million, excluding acquisitions

Revenue & Expenses

Visualization of income flow from segment revenue to net income