Business
Target Hospitality Tightens 2019 Financial Outlook and Announces 2020 Financial Outlook
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 tightened the range of its previously announced 2019 outlook and announced its 2020 financial outlook.\n\n\nReaffirmed and Tightened 2019 Financial Outlook:\n\n\n\nTotal revenue between $318 and $323 million\n\n\nAdjusted EBITDA(1) between $157 and $159 million\n\n\n\n2020 Financial Outlook:\n\n\n\nTotal revenue between $307 and $317 million\n\n\nAdjusted EBITDA(1) between $140 and $150 million\n\n\nGrowth capital spending between $10 and $20 million, excluding acquisitions\n\n\nMaintenance capital spending between $3 and $5 million\n\n\nInterest expense(2) between $34 and $36 million\n\n\nDiscretionary Cash Flow (“DCF”)(1) between $85 and $95 million\n\n\n\n2020 Outlook\n\n\n“We are pleased to announce Target Hospitality’s 2020 outlook and believe these expectations are a direct reflection of the resiliency of our business model. We closed 2019 with solid momentum in our core business, providing us with favorable tailwinds as we move through 2020. We remain focused on capturing attractive margins and significant cash generation, which will allow Target to further execute on our strategy of growing the Company through disciplined capital allocation,” stated Brad Archer, President and Chief Executive Officer.\n\n\n“Target Hospitality’s long-standing relationships with large, well-capitalized customers coupled with a contract structure that provides exclusivity within our community network, allows us to grow utilized beds seamlessly with our customer’s needs. This mutually beneficial structure provides our customers with a growing network of high-quality accommodations over their multi-year investment horizons, while giving Target meaningful visibility on reliable cash flow streams. We remain focused on aligning with the right customers and being disciplined with our capital deployment, which has allowed us to achieve attractive returns through a variety of business cycles,” concluded Mr. Archer.\n\n\n2020 Outlook Highlights:\n\n\n\nRevenue and Adjusted EBITDA(1) expectations will be driven by strengthening energy end market revenue visibility ...