Target Hospitality Corp Stock Price, News & Analysis

Target Hospitality Corp. (Nasdaq: TH) has announced that its Board of Directors has disbanded the Special Committee established to evaluate an unsolicited non-binding offer from Arrow Holdings S.à r.l., an affiliate of TDR Capital LLP. The offer, made on March 24, 2024, proposed to acquire all outstanding shares not owned by Arrow or TDR-managed funds for $10.80 per share.

Following a contract loss and no formal offers received, the company will focus on allocating capital to high-return initiatives, including in-organic growth. Target Hospitality has reaffirmed its 2024 guidance outlook based on strong year-to-date operating results. The company cites strong business fundamentals, healthy demand for services, and a robust cash generation as key factors supporting its outlook.

Target Hospitality Corp. (NASDAQ: TH) reported its Q2 2024 results:

• Revenue of $100.7 million
• Net income of $18.4 million
• Basic and diluted EPS of $0.18
• Adjusted EBITDA of $52.2 million
• Net Cash Provided by Operating Activities of $39.1 million
• Discretionary Cash Flow of $32.8 million

The company has a strong financial position with $329 million in total available liquidity and a net leverage ratio of 0.1x. Target is progressing towards zero net debt by year-end 2024. The company reiterated its 2024 outlook, projecting revenue between $375-$385 million and Adjusted EBITDA between $184-$190 million. Target is evaluating growth opportunities to diversify its contract portfolio while maintaining financial discipline.

Target Hospitality Corp. (NASDAQ: TH), a leading provider of modular accommodations and hospitality services in North America, has announced its schedule for the release of its second quarter 2024 financial results. The company will unveil its earnings before the market opens on Wednesday, August 7, 2024. Following the release, Target Hospitality will host a conference call at 9:00 am Eastern Time (8:00 am Central Time) to discuss the results in detail.

Investors and interested parties can access the live webcast of the conference call through the Investors section of Target Hospitality's website. For those who prefer to dial in, a direct phone dial option and traditional operator-assisted lines are available. Participants are advised to register or dial in approximately 15 minutes before the scheduled start time. A replay of the conference call will be made available on the company's website for those unable to attend the live event.

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.

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.

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.

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.