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Dec 31, 2019

Target Hospitality Q4 2019 Earnings Report

Target Hospitality experienced a revenue decrease due to reduced activity in the TCPL project, while maintaining a strong Adjusted EBITDA margin.

Key Takeaways

Target Hospitality reported a decrease in revenue and net income for Q4 2019 compared to Q4 2018, primarily due to reduced activity associated with the TC Energy Corporation's (TCPL) project and a net loss on the sale of non-strategic land parcels. However, the Adjusted EBITDA margin remained strong at 47%.

Total revenue decreased by 21% to $76.1 million due to a reduction in the activity associated with the TCPL project.

Net income decreased to $0.1 million, largely attributable to a $6.9 million pre-tax net loss on the sale of non-strategic land parcels.

Adjusted EBITDA decreased by 18% to $36.0 million, but the Adjusted EBITDA margin remained strong at 47%.

ADR decreased by approximately $2.20, or 3%, to $80.90, primarily due to a lower average ADR from the acquired Signor communities.

Total Revenue
$76.1M
EPS
$0.07
Adjusted EBITDA margin
47%
Average daily rate
$80.9
Avg. utilized beds
9.79K
Gross Profit
$31.5M
Cash and Equivalents
$6.79M
Total Assets
$601M

Target Hospitality

Target Hospitality

Target Hospitality Revenue by Segment

Revenue & Expenses

Visualization of income flow from segment revenue to net income