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Jun 30, 2023
Target Hospitality Q2 2023 Earnings Report
Reported record-setting results driven by the Government segment and the expanded PCC community.
Key Takeaways
Target Hospitality reported a strong second quarter in 2023, with a 31% increase in revenue to $143.6 million and a net income of $46.5 million. The company's adjusted EBITDA increased by 62% to $90.9 million.
Second quarter revenue increased 31% to $143.6 million compared to the same period in 2022.
Net income was $46.5 million, compared to $22.9 million for the same period in 2022.
Adjusted EBITDA was $90.9 million, a 62% increase compared to the same period in 2022.
The company had approximately $195 million in total available liquidity and a net leverage ratio of 0.4x as of June 30, 2023.
Target Hospitality
Target Hospitality
Target Hospitality Revenue by Segment
Revenue by Segment
Government Revenue
CapyFin.comHospitality & Facilities Services - South Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
The Company is providing its 2023 outlook, excluding acquisitions of: Total revenue between $550 and $580 million, Adjusted EBITDA between $346 and $365 million, Total capital spending between $25 and $35 million, excluding acquisitions and Zero net debt by year end 2023.
Positive Outlook
- Total revenue between $550 and $580 million
- Adjusted EBITDA between $346 and $365 million
- Total capital spending between $25 and $35 million, excluding acquisitions
- Zero net debt by year end 2023
- Strategic growth opportunities and seeks to allocate over $500 million of net growth capital through 2027
Challenges Ahead
- Sales cycles are inherently longer prior to official contract award and announcement.
- Final outcomes remain uncertain
- Excluding acquisitions
- Government ICF network capacity to approximately 10,000 ICF beds across multiple geographic locations
- Anticipates contract specifications being finalized later in 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income