Business
Target Hospitality Announces First Quarter 2020 Results
THE WOODLANDS, Texas--(BUSINESS WIRE)-- Target Hospitality Corp. (“Target Hospitality”, “Target” or the “Company”) (NASDAQ: TH), the largest provider of
About this update from Target Hospitality Corp.
[{"type":"text","content":" THE WOODLANDS, Texas--(BUSINESS WIRE)--\nTarget Hospitality Corp. (“Target Hospitality”, “Target” or the “Company”) (NASDAQ: TH), the largest provider of vertically-integrated specialty hospitality accommodations with premium catering and value-added hospitality services in the U.S., today reported results for the three months ended March 31, 2020.\n\n\nFinancial and Operational Highlights for the First Quarter 2020\n\n\n\nRevenues of $71.7 million for the three months ended March 31, 2020 as compared to $82.0 million for the same period in 2019\n\n\nNet income of $3.8 million for the three months ended March 31, 2020, compared to a net loss of $14.0 million for the first quarter of 2019\n\n\nBasic and diluted earnings per share of $0.04 for the three months ended March 31, 2020\n\n\nAdjusted EBITDA(1) of $32.4 million, compared to $41.3 million for the first quarter of 2019\n\n\nMeaningful cash generation, with net cash provided by operating activities of $10.6 million and Discretionary Cash Flow (“DCF”) (1) of $10.0 million for the three months ended March 31, 2020\n\n\nStrong balance sheet with liquidity of $47.5 million and net leverage of 2.8 times as of March 31, 2020\n\n\nMaintaining financial flexibility with no near-term debt maturities, immediate covenants, liquidity or minimum credit rating on the Company’s Senior Secured Notes or revolving credit facility\n\n\nImplemented meaningful cost reductions, including reducing anticipated 2020 capital spending by 50% and other measures aimed at reducing total 2020 cash expenses by greater than 30%\n\n\nExpected increase in 2020 project revenue, following the announcement that TC Energy Corporation will proceed with the construction of the Keystone XL pipeline project\n\n\n\nExecutive Commentary\n\n\n“Despite a challenging macro environment exiting the first quarter, we produced solid results across our business and generated DCF of approximately $10 million. However, the COVID-19 pandemic has significantly reduced global economic activity and exacerbated a rapid deterioration in commodity markets. These dual shocks to the global economy have created an unprecedented scenario, which will likely persist through much of 2020,” stated Brad Archer, President and Chief Executive Officer.\n\n\n“As we navigate the current environment, including the COVID-19 pandemic, our first prior...