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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
Revenue by Segment
Government Revenue
CapyFin.comHospitality & Facilities Services - South Revenue
CapyFin.comAll Other Revenue
CapyFin.com 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