Business
Target Hospitality Announces Fourth Quarter and Full Year 2019 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 fourth quarter and year ended December 31, 2019.(1)\n\n\nFinancial and Operational Highlights for the Year Ended 2019\n\n\n\nRevenues increased to $321.1 million, up 33% year-over-year, led by 44% growth in average available beds\n\n\nNet income of $6.2 million, and Adjusted net income(2) of $46.3 million, up 41% year-over-year\n\n\nBasic and diluted earnings per share of $0.07, and Adjusted basic and diluted earnings per share(2) of $0.49\n\n\nAdjusted EBITDA of $159.2 million, up 36% year-over-year with Adjusted EBITDA margin(2) of 50%\n\n\nIncrease in average utilized beds to 9,923, up 42% year-over-year, driven by a combination of acquisitions and organic bed additions\n\n\nSignificant cash generation, with net cash provided by operating activities of $60.5 million for the year ended December 31, 2019\n\n\nCompleted the integration of communities acquired from Superior Lodging and ProPetro, adding over 750 news beds to the network and converting all four communities into full turnkey facilities\n\n\nTwo new communities in Carlsbad, New Mexico and Orla, Texas became operational for a total of 600 beds; expansion activities for an additional 200 beds completed as planned\n\n\n\nExecutive Commentary\n\n\n“Our 2019 results demonstrate Target’s resiliency through challenging business cycles. While the second half of 2019 produced headwinds we did not anticipate, our business performed well considering the challenges our energy end market customers faced,” stated Brad Archer, President and Chief Executive Officer.\n\n\n“Despite these headwinds, we generated record cash flow from operations. As we indicated in our 2020 outlook, we will continue to generate meaningful discretionary cash flow as we move through 2020. This will provide the opportunity for Target to continue creating shareholder value by strengthening the financial posture of the Company through debt reduction or other accretive shareholder initiatives,” concluded Mr. Archer.\n\n\nFinancial Results \n\n\nFull Year Summary Highlights\n\n\nRefer to exhibits to...