Business
Target Hospitality Raises 2021 Financial Outlook 7% on Strengthening Customer Demand
THE WOODLANDS, Texas, Nov. 2, 2021 /PRNewswire/ -- Target Hospitality Corp. ("Target Hospitality", "Target" or the "Company") (NASDAQ: TH), North America's
About this update from Target Hospitality Corp.
[{"type":"text","content":"THE WOODLANDS, Texas, Nov. 2, 2021 /PRNewswire/ -- Target Hospitality Corp. (\"Target Hospitality\", \"Target\" or the \"Company\") (NASDAQ: TH), North America's largest provider of vertically integrated modular accommodations and value-added hospitality services, today raised the range of its previously announced 2021 financial outlook seven percent due to continued increasing customer demand. \nGrowth in customer activity and broadening of demand for Target's premium modular hospitality services has continued to strengthen throughout 2021. Since year-end 2020, Target has experienced an over 40% increase in customer demand across its Hospitality and Facilities Services segments and continues to experience additional demand from the growing humanitarian aid markets within its Government segment. This strong momentum supports Target's revised 2021 financial outlook and marks a 25% revenue increase and 42% Adjusted EBITDA increase from full year 2020.\nThe Company continues to benefit from its strategic positioning as North America's market leader in premier vertically integrated hospitality solutions serving a suite of world-class customers. The scale of Target's modular network creates an efficient operating platform, allowing Target to expand margin, while simultaneously high-grading business opportunities that allow Target to increase revenue with high-quality, long-term contracts. \nTarget's focus on efficient capital allocation, has provided a high return on capital. As a result, Target's 2021 financial outlook represents 69% growth in Discretionary Cash Flow (\"DCF\") from full year 2020. This cash flow has been allocated toward strengthening Target's capital flexibility by reducing outstanding debt by approximately $80 million and improving its net leverage ratio by 52% since the beginning of 2021. \nApproximately 99% of the Company's anticipated 2021 revenue is under contract with approximately 73% of contracted revenue having minimum revenue commitments. These positive shifts in business mix have resulted in the strengthening of Target's financial position and accelerated its value creation opportunity set.\nThe Company is raising its 2021 financial outlook to: \nFull Year 2021 Financial Outlook:\nTotal revenue between $280 and $285 million Adjusted EBITDA(1) between $110 and $113 million Interest expense(2) between $33 ...