Target Hospitality(TH) - 2024 Q4 - Annual Results

Financial Performance - Revenue for the year ended December 31, 2024, was $386.3 million, a decrease of 31.4% compared to$ 563.6 million in 2023[6] - Net income for the year ended December 31, 2024, was $71.4 million, down 58.8% from$ 173.7 million in 2023[7] - Adjusted EBITDA for the year ended December 31, 2024, was $196.7 million, a decline of 42.9% from$ 344.2 million in 2023[7] - For Q4 2024, revenue was $83.7 million, down 33.6% from$ 126.2 million in Q4 2023[9] - Q4 2024 net income was $12.5 million, a decrease of 66.9% compared to$ 37.8 million in Q4 2023[10] - Total revenue for Q4 2024 was $83.688 million, a decrease of 33.7% compared to$ 126.220 million in Q4 2023[48] - Services income decreased to $60.227 million in Q4 2024 from$ 84.730 million in Q4 2023, representing a decline of 29.0%[48] - Specialty rental income fell to $23.461 million in Q4 2024, down 43.5% from$ 41.490 million in Q4 2023[48] - Gross profit for Q4 2024 was $37.031 million, a decrease of 40.5% compared to$ 62.239 million in Q4 2023[48] - Target Hospitality's total operating income for the year ended December 31, 2024, was $108.781 million, down from$ 240.606 million in 2023, indicating a significant decline in profitability[48] - Gross profit for the year 2024 was $178,179 thousand, compared to$ 313,324 thousand in 2023, indicating a decrease of 43.1%[54] Liquidity and Capital Structure - The company achieved approximately $366 million of total available liquidity and a net leverage ratio of 0.0x as of December 31, 2024[6] - The company executed approximately$ 33.4 million of stock repurchases during the year ended December 31, 2024[6] - The company reported a loss on extinguishment of debt of $2.279 million for the year ended December 31, 2024[48] - Total liabilities decreased to$ 304,684 thousand in 2024 from $317,046 thousand in 2023, a reduction of approximately 3.9%[50] - Total stockholders' equity attributable to Target Hospitality increased to$ 421,081 thousand in 2024 from $377,307 thousand in 2023, an increase of 11.6%[50] Cash Flow and Assets - Cash and cash equivalents rose significantly to$ 190,668 thousand in 2024, up from $103,929 thousand in 2023, marking an increase of 83.3%[52] - The company reported a net cash provided by operating activities of$ 151,675 thousand for 2024, slightly down from $156,801 thousand in 2023[52] - Discretionary cash flows for 2024 were$ 130,928 thousand, down from $142,583 thousand in 2023, reflecting a decline of 8.2%[56] - The company purchased specialty rental assets totaling$ 29,557 thousand in 2024, a decrease from $60,808 thousand in 2023[52] Future Outlook - The revised 2025 outlook projects total revenue between$ 265 million and $285 million, with adjusted EBITDA between$ 47 million and $57 million[23] - Adjusted EBITDA outlook for 2024 is expected to be a minimum of$ 100 million, reflecting management's confidence in operational performance despite current challenges[37] Contracts and Agreements - Target announced a multi-year Workforce Hub Contract expected to generate approximately $140 million of revenue through 2027[6] - A 5-year$ 246 million Dilley Contract was awarded, effective March 5, 2025, supporting U.S. government initiatives[6] Shareholder Information - The weighted average number of shares outstanding for Q4 2024 was 99,189,824, compared to 101,660,601 in Q4 2023[48]