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Sep 30, 2022

Target Hospitality Q3 2022 Earnings Report

Target Hospitality reported record results, announced an exclusive 11-year partnership, and authorized a stock repurchase program.

Key Takeaways

Target Hospitality reported record third-quarter revenue of $159.6 million, a 79% increase year-over-year. Net income was $19.0 million, compared to $6.7 million in the same period last year. The company also announced an exclusive 11-year partnership and authorized a stock repurchase program of up to $100 million.

Record quarterly revenue of $159.6 million, up 79% year-over-year.

Net income of $19.0 million, compared to $6.7 million in the same period last year.

Adjusted EBITDA increased by 125% from the same period in 2021.

Authorized up to $100 million stock repurchase plan.

Total Revenue
$160M
Previous year: $89.2M
+78.9%
EPS
$0.2
Previous year: $0.07
+185.7%
Avg. utilized beds
13.18K
Previous year: 11.09K
+18.9%
Utilization rate
88%
Previous year: 75%
+17.3%
Gross Profit
$82.8M
Previous year: $33.6M
+146.3%
Cash and Equivalents
$177M
Previous year: $30.6M
+477.7%
Free Cash Flow
$239M
Total Assets
$730M
Previous year: $530M
+37.7%

Target Hospitality

Target Hospitality

Target Hospitality Revenue by Segment

Forward Guidance

Target Hospitality provided preliminary 2023 financial outlook, excluding acquisitions. Total minimum revenue of $525 million (excluding variable services revenue). Total maximum revenue of $710 million (including variable services revenue). Minimum Adjusted EBITDA of $365 million. Total capital spending between $10 and $20 million, excluding acquisitions. Zero net debt by second half 2023.

Positive Outlook

  • Total minimum revenue of $525 million (excluding variable services revenue)
  • Total maximum revenue of $710 million (including variable services revenue)
  • Minimum Adjusted EBITDA of $365 million
  • Total capital spending between $10 and $20 million, excluding acquisitions
  • Zero net debt by second half 2023

Revenue & Expenses

Visualization of income flow from segment revenue to net income