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Jun 30, 2024
Target Hospitality Q2 2024 Earnings Report
Target Hospitality reported impressive results driven by efficient operating model and network capabilities.
Key Takeaways
Target Hospitality reported a revenue of $100.7 million and a net income of $18.4 million for the three months ended June 30, 2024. The company's strong cash generation and financial flexibility support continued evaluation of diversifying growth opportunities.
Revenue was $100.7 million for the three months ended June 30, 2024.
Net income was $18.4 million for the three months ended June 30, 2024.
Adjusted EBITDA was $52.2 million for the three months ended June 30, 2024.
The Company had approximately $154 million of cash and cash equivalents as of June 30, 2024.
Target Hospitality
Target Hospitality
Target Hospitality Revenue by Segment
Forward Guidance
Target Hospitality is reiterating its 2024 outlook.
Positive Outlook
- Total revenue between $375 and $385 million
- Adjusted EBITDA between $184 and $190 million
- Total capital spending between $25 and $30 million, excluding acquisitions
- Zero net debt by year end 2024
- Year end 2024 total available liquidity exceeding $350 million
Challenges Ahead
- The U.S. government intends to terminate the South Texas Family Residential Center contract effective on or about August 9, 2024.
- Target believes it prudent to exclude from its 2024 outlook any incremental PCC variable revenue.
- Year over year decreases were primarily driven by non-cash, nonrecurring, infrastructure enhancement revenue amortization associated with the Company’s Pecos Children’s Center community.
- Revenue for the three months ended June 30, 2024, was $59.9 million compared to $101.2 million for the same period in 2023.
- Revenue for the three months ended June 30, 2024, was $38.2 million compared to $39.2 million for the same period in 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income