Workflow
Target Hospitality Reports Strong 2024 Results with Continued Focus on Advancing Strategic Diversification and Growth Opportunities
THTarget Hospitality(TH) Prnewswire·2025-03-26 10:45

Core Insights - Target Hospitality reported a significant decline in financial performance for the year ended December 31, 2024, with revenue of 386.3million,downfrom386.3 million, down from 563.6 million in 2023, and net income of 71.4millioncomparedto71.4 million compared to 173.7 million in the previous year [5][6][12] - The company emphasized its operational flexibility and strategic growth initiatives, which have been crucial in navigating various business cycles and customer demand changes [3][4] - Target Hospitality secured a multi-year Workforce Hub Contract expected to generate approximately 140millioninrevenuethrough2027,indicatingafocusondiversifyingitscontractportfolio[12][18]FinancialandOperationalHighlights−Full−yearrevenuefor2024was140 million in revenue through 2027, indicating a focus on diversifying its contract portfolio [12][18] Financial and Operational Highlights - Full-year revenue for 2024 was 386.3 million, a decrease of 31.4% from 563.6millionin2023[5]−Netincomefor2024was563.6 million in 2023 [5] - Net income for 2024 was 71.4 million, down 58.8% from 173.7millionin2023[6]−AdjustedEBITDAfor2024was173.7 million in 2023 [6] - Adjusted EBITDA for 2024 was 196.7 million, a decline of 42.9% from 344.2millionin2023[6]−Averageutilizedbedsdecreasedto13,362in2024from14,463in2023,withutilizationratesdroppingto83344.2 million in 2023 [6] - Average utilized beds decreased to 13,362 in 2024 from 14,463 in 2023, with utilization rates dropping to 83% from 90% [5] Fourth Quarter Summary - Revenue for Q4 2024 was 83.7 million, down 33.6% from 126.2millioninQ42023[8]−NetincomeforQ42024was126.2 million in Q4 2023 [8] - Net income for Q4 2024 was 12.5 million, a decrease of 66.9% from 37.8millioninQ42023[9]−AdjustedEBITDAforQ42024was37.8 million in Q4 2023 [9] - Adjusted EBITDA for Q4 2024 was 41.1 million, down 39.2% from 67.7millioninQ42023[9]CapitalManagement−Thecompanyachievedapproximately67.7 million in Q4 2023 [9] Capital Management - The company achieved approximately 366 million in total available liquidity and maintained a net leverage ratio of 0.0x with zero net debt as of December 31, 2024 [12][13] - Target Hospitality executed approximately 33.4millioninstockrepurchasesduring2024,representingabout33.433.4 million in stock repurchases during 2024, representing about 33.4% of the total share repurchase authorization [15] - On March 25, 2025, the company redeemed all outstanding 10.75% Senior Secured Notes due 2025, which is expected to save approximately 19.5 million in annual interest expenses [14] Business Update and Outlook - The company is positioned for growth with strong underlying business fundamentals and an efficient operating structure [16] - The recently announced Dilley Contract, valued at $246 million over five years, highlights the importance of Target's strategically located assets in supporting U.S. government initiatives [19] - Target's revised outlook for 2025 reflects the impact of the PCC contract termination and the new Dilley Contract, indicating a focus on government end-market growth opportunities [21]