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Dec 31, 2022

Target Hospitality Q4 2022 Earnings Report

Target Hospitality reported record setting 2022 results and achieved significant milestone towards multiyear contract award for expanded humanitarian community.

Key Takeaways

Target Hospitality reported a strong fourth quarter and full year 2022, driven by the Government segment and the Expanded Humanitarian Community. The company achieved record revenue and Adjusted EBITDA for the year, and saw increased customer demand across its HFS segments.

Record revenue of $502.0 million for year ended December 31, 2022, an increase of 72% year-over-year

Net income of $73.9 million for year ended December 31, 2022, compared to net loss of $4.6 million for the same period in 2021

Extended numerous HFS customer contracts worth over $200 million of cumulative revenue through 2028

Maximizing network optimization with a 25% increase in total average utilized beds from 2021

Total Revenue
$152M
Previous year: $81.7M
+86.6%
EPS
$0.31
Previous year: $0.03
+933.3%
Avg. utilized beds
14.21K
Previous year: 11.35K
+25.1%
Utilization rate
90%
Previous year: 77%
+16.9%
Gross Profit
$83.9M
Previous year: $29.2M
+187.2%
Cash and Equivalents
$182M
Previous year: $23.4M
+676.2%
Total Assets
$772M
Previous year: $513M
+50.3%

Target Hospitality

Target Hospitality

Target Hospitality Revenue by Segment

Forward Guidance

Target Hospitality provided preliminary 2023 outlook, excluding acquisitions, including total minimum revenue of $525 million (excluding variable service revenue), total maximum revenue of $710 million (including variable service revenue), minimum Adjusted EBITDA of $365 million, and zero net debt by second half of 2023.

Positive Outlook

  • Total minimum revenue of $525 million (excluding variable service revenue)
  • Total maximum revenue of $710 million (including variable service revenue)
  • Minimum Adjusted EBITDA(1) of $365 million
  • Zero net debt by second half of 2023
  • 2023 financial outlook includes non-cash infrastructure revenue amortization of approximately $117 million associated with the Expanded Humanitarian Community enhancements.

Revenue & Expenses

Visualization of income flow from segment revenue to net income