Business
Target Hospitality Reports Strong First Quarter 2023 Results with Sustained Business Momentum and Continued Achievement of Strategic Objectives
THE WOODLANDS, Texas, May 9, 2023 /PRNewswire/ -- Target Hospitality Corp. ("Target Hospitality", "Target" or the "Company") (NASDAQ: TH), one of North
About this update from Target Hospitality Corp.
[{"type":"text","content":"THE WOODLANDS, Texas, May 9, 2023 /PRNewswire/ -- Target Hospitality Corp. (\"Target Hospitality\", \"Target\" or the \"Company\") (NASDAQ: TH), one of North America's largest providers of vertically-integrated modular accommodations and value-added hospitality services, today reported results for the three months ended March 31, 2023.\nFinancial and Operational Highlights \nFirst quarter 2023 revenue increased 84% to $147.8 million compared to the same period in 2022Net income of $43.8 million for the three months ended March 31, 2023, compared to $0.5 million for the same period in 2022Basic and diluted income per share of $0.44 and $0.38, respectively, for the three months ended March 31, 2023First quarter 2023 Adjusted EBITDA(1) increased 171% to $90.6 million compared to the same period in 2022Generated net cash provided by operating activities of over $350 million and Discretionary Cash Flow (\"DCF\")(1) of over $339 million for the twelve months ended March 31, 2023Achieved strategic objective with an 80% improvement in net leverage ratio from March 31, 2022, with a net leverage ratio of 0.5x as of March 31, 2023Significant financial flexibility with over $167 million in total available liquidityReduced annual interest expense by approximately $12 million, following the $125 million partial redemption of 9.50% Senior Secured Notes due 2024, accelerating value creationContinued achievement of significant milestones toward multi-year contract award related to the expanded humanitarian community previously announced on July 6, 2022, (\"Expanded Humanitarian Community\")Strong business momentum supporting a 15% increase in customer demand in Target's HFS – South segment from the first quarter of 2022Maximizing network optimization with a 28% increase in total average utilized beds from March 31, 2022Executing on strategic diversification with a 134% increase in Government segment revenue from the same period in 2022, with approximately 74% of first quarter 2023 revenue derived from committed revenue contracts backed by the U.S. governmentMaterially enhanced financial position creates ideal flexibility to pursue diversifying growth strategy, seeking to allocate over $500 million of net growth capital through 2027Executive Commentary\n\"Over the past year we have exponentially grown the business, materially advanced our strateg...