Business
Target Hospitality Announces Second 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 June 30, 2020.\n\n\nFinancial and Operational Highlights for the Second Quarter 2020\n\n\n\nRevenues of $53.6 million for the three months ended June 30, 2020 as compared to $81.4 million for the same period in 2019\n\n\nNet income (loss) of $(14.2) million for the three months ended June 30, 2020, compared to a net income of $10.6 million for the second quarter of 2019\n\n\nBasic and diluted (loss) per share of $(0.15) for the three months ended June 30, 2020\n\n\nAdjusted EBITDA(1) of $13.4 million, compared to $41.2 million for the second quarter of 2019\n\n\nStrong cash generation in a challenging environment, with net cash provided by operating activities of $14.8 million and Discretionary Cash Flow (“DCF”) (1) of $14.7 million for the three months ended June 30, 2020\n\n\nStrong balance sheet with liquidity of $59.9 million and net leverage of 3.4 times as of June 30, 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\nSignificant progress on previously announced cost reductions, including substantial reductions in capital spending and cash expense\n\n\nMeaningful increase in project activity from TC Energy Corporation Keystone XL pipeline project, contributing approximately $15.4 million in revenue\n\n\nSecured and extended additional minimum revenue contracts adding approximately $60 million in committed revenue from 2021 - 2025\n\n\n\nExecutive Commentary\n\n\n“The second quarter was challenging, as the combined impacts of a global pandemic and deteriorating demand for a substantial portion of the global economy created an unprecedented operating environment. The acceleration of the global pandemic significantly reduced economic activity and the corresponding demand for crude oil, resulting in a pronounced reduction in customer activity in the second quarter. We took aggressive actions to quickly align with demand and appropriately positi...