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Target Hospitality Corp. - TH STOCK NEWS

Welcome to our dedicated page for Target Hospitality news (Ticker: TH), a resource for investors and traders seeking the latest updates and insights on Target Hospitality stock.

Target Hospitality Corp. (NASDAQ: TH) is a leading provider of specialty rental and comprehensive hospitality services in the United States. Headquartered in The Woodlands, Texas, the company operates through three primary segments: Permian Basin, Bakken Basin, and Government. It owns a network of specialty rental accommodation units, boasting approximately 13,800 beds across 25 sites, including 26 communities within the Permian and Bakken Basins. Target Hospitality serves investment-grade oil and gas companies, energy infrastructure firms, and U.S. government and government contractors.

The company is known for its vertically integrated modular accommodations and value-added hospitality services. This includes a wide range of offerings such as premium food service management, maintenance, housekeeping, grounds-keeping, on-site security, overall workforce lodge management, and laundry services. The Government segment is a substantial revenue driver, contributing significantly through contracts located in Texas.

Recent organizational changes have seen Jason Vlacich promoted to Chief Financial Officer and Troy Schrenk to Senior Executive Vice President of Operations. These moves are in alignment with a new multi-year humanitarian contract, positioning the company for further growth. Financially, Target Hospitality reported robust 2023 results with revenue reaching $563.6 million, a significant increase driven by its Government segment. The company maintains a strong balance sheet with strategic capital management, including a substantial share repurchase program.

Target Hospitality has also announced a notable partnership with the Chard Métis Dene Group of Companies to enhance community-driven economic opportunities. In addition, the company has received an unsolicited acquisition proposal from Arrow Holdings S.à r.l., further highlighting its market value.

In summary, Target Hospitality Corp. is a pivotal player in the specialty rental and hospitality services market, leveraging its comprehensive service offerings and strategic partnerships to drive consistent growth and operational excellence.

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Target Hospitality (NASDAQ: TH) revised its 2024 outlook following a U.S. government notice to terminate the South Texas Family Residential Center (STFRC) contract on August 9, 2024. The STFRC contributed $55.9 million in 2023 revenue. The Pecos Children's Center (PCC) contract, a significant component of U.S. humanitarian aid, is expected to be renewed in November 2024, but variable revenue is excluded from the outlook due to population fluctuations.

As of May 31, 2024, Target reported $147 million in cash and equivalents, $322 million in total liquidity, no outstanding debt on its $175 million credit facility, and a net leverage ratio of 0.1 times. The 2024 outlook includes total revenue between $375 and $385 million, adjusted EBITDA between $184 and $190 million, and capital spending between $25 and $30 million. Target aims for zero net debt and liquidity over $350 million by year-end.

An unsolicited proposal from Arrow Holdings to acquire Target for $10.80 per share is under review by a special committee of independent directors with retained financial and legal advisors.

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On June 10, 2024, Target Hospitality announced that the U.S. government intends to terminate the existing services agreement for the South Texas Family Residential Center (STFRC) in Dilley, Texas. The termination will be effective on August 9, 2024. Target provides facility and hospitality solutions to the STFRC Partner under this agreement. Despite the termination, Target will retain ownership of its modular assets, allowing it to repurpose these assets for other customer demands and growth opportunities. Operational and financial updates will be provided before June 30, 2024.

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Target Hospitality Corp. reported strong first-quarter results for 2024, with revenue of $106.7 million, net income of $20.4 million, and adjusted EBITDA of $53.7 million. The company has significant financial flexibility, total available liquidity of $299 million, and plans to allocate over $500 million of net growth capital through 2027. Target repurchased $21.2 million of shares in the first quarter, enhancing its financial position. The company continues to focus on maximizing operational efficiencies and pursuing growth opportunities while maintaining a strong balance sheet.

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Target Hospitality Corp. announced its first quarter 2024 financial results release and conference call schedule. The company will release the results on May 8, 2024, and hold a conference call on the same day to discuss them. The conference call will be available through a live webcast on the company's website.

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Target Hospitality Corp., one of North America's largest providers of modular accommodations and hospitality services, announced the formation of a Special Committee to evaluate an unsolicited non-binding proposal from Arrow Holdings S.à r.l. to acquire all outstanding shares of common stock for cash consideration of $10.80 per share. The committee will also consider alternative proposals and strategic alternatives. The company has retained Centerview Partners and Ardea Partners LP as financial advisors and Cravath, Swaine & Moore LLP as its legal advisor. There is no assurance that any transaction will result from the committee's evaluation.

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Target Hospitality Corp. announces a regional partnership with Chard Métis Dene Group of Companies in Alberta, Canada, focusing on economic development and community support.
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Target Hospitality Corp. receives an unsolicited proposal from Arrow Holdings S.à r.l. to acquire outstanding shares for $10.80 per share. The Board will establish a special committee to review the Proposal.
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Target Hospitality Corp. reported strong financial results for the fourth quarter and year ended December 31, 2023, with revenue reaching $563.6 million, a 12% increase from the previous year. The company also saw a significant rise in net income to $173.7 million and Adjusted EBITDA of $344.2 million, reflecting a 30% growth compared to 2022. Target Hospitality secured a new contract with the Pecos Children's Center, ensuring a minimum annual revenue commitment of $178 million. The company's robust financial position, with $279 million in available liquidity and a net leverage ratio of 0.2x, supports its plans to invest over $500 million in growth capital through 2027. Additionally, Target Hospitality executed $17.8 million in stock repurchases, demonstrating a focus on value creation for shareholders.
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Target Hospitality Corp. announced the release of its fourth quarter and full year 2023 financial results on March 13, 2024. The company will hold a conference call to discuss the results at 9:00 am Eastern Time. Investors can access the call via webcast or phone dial-in.
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Target Hospitality Corp. appoints John C. Dorman to its board of directors, bringing over 40 years of experience in executive leadership roles across software and services companies in the financial technology sector. Mr. Dorman's expertise will aid Target in pursuing strategic growth initiatives and diversifying its customer base.
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FAQ

What services does Target Hospitality Corp. provide?

Target Hospitality Corp. provides vertically integrated modular accommodations and value-added hospitality services such as premium food service management, maintenance, housekeeping, grounds-keeping, on-site security, workforce lodge management, and laundry services.

Which segments does Target Hospitality Corp. operate in?

The company operates in three primary segments: Permian Basin, Bakken Basin, and Government.

Who are the primary clients of Target Hospitality Corp.?

Its primary clients include investment-grade oil and gas companies, energy infrastructure companies, and U.S. government and government contractors.

Where is Target Hospitality Corp. headquartered?

The company is headquartered in The Woodlands, Texas.

What are the recent organizational changes in Target Hospitality Corp.?

Jason Vlacich has been promoted to Chief Financial Officer, and Troy Schrenk has been promoted to Senior Executive Vice President of Operations.

What financial performance did Target Hospitality report for 2023?

Target Hospitality reported revenue of $563.6 million and a net income of $173.7 million for the year ended December 31, 2023.

What is the significance of the partnership with Chard Métis Dene Group?

The partnership aims to enhance economic opportunities for the Chard Métis Nation, reflecting Target Hospitality’s commitment to local community investment.

What was the unsolicited proposal received by Target Hospitality Corp.?

Arrow Holdings S.à r.l. submitted an unsolicited proposal to acquire all outstanding shares of Target Hospitality for $10.80 per share.

How does Target Hospitality plan to use its capital?

The company focuses on strategic capital allocation, including a $100 million share repurchase program and evaluating over $500 million in growth capital opportunities through 2027.

What upcoming financial announcements are expected from Target Hospitality Corp.?

The company plans to release its first quarter 2024 financial results on May 8, 2024, followed by a conference call to discuss the results.

Target Hospitality Corp.

Nasdaq:TH

TH Rankings

TH Stock Data

927.56M
100.28M
4.15%
93.15%
1.06%
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THE WOODLANDS