Target Hospitality Corp. · NASDAQ:TH
Target Hospitality — SPAC Merger (November 2018)
26 slides from Target Hospitality's SPAC merger presentation, Nov 14, 2018
Slide 1: Proposed Business Combination: Platinum Eagle, Target Lodging, and Signor Lodging
November 2018 Proposed Business Combination P LATINUM E AGLE , T ARGET L ODGING , AND S IGNOR L ODGING
Slide 2: Important Information About the Business Combination and Where to Find It
2 This investor presentation (“Investor Presentation”) is for informational purposes only and does not constitute an offer to s ell , a solicitation of an offer to buy, or a recommendation to purchase any equity, debt or other financial instruments of Platinum Eagle Acquisition Corp. (“Platinum Eagl
Slide 3: No Offer or Solicitation
3 No Offer or Solicitation This Investor Presentation does not constitute a solicitation of a proxy, consent or authorization with respect to any securi tie s or in respect of the Business Combination. This Investor Presentation also does not constitute an offer to sell or the solicitation of an off
Slide 4: Nation's Largest Provider of Flexible Accommodation Space
4 Nation’s Largest Provider of Flexible Accommodation Space… Business Model Combining Most Attractive Elements of Specialty Rental and Catering/Hospitality Services to Produce EBITDA Margins Over 50% • Turnkey solutions with integrated design and installation, catering, security, recreational and ot
Slide 5: Transaction Overview
5 Transaction Overview Target Lodging (TL ) Owned by Algeco • New Debt Facility • Cash Equity from PEAC to buy Target Lodging with Algeco Receiving Minority Equity Interest in PEAC • Contribution of Signor with TDR Receiving Equity Interest in PEAC Signor Holding (SH) Owned by TDR Platinum Eagle (PE
Slide 6: Target Hospitality Investment Highlights
6 6 Target Hospitality Investment Highlights (1) Click to edit footnote text Largest Network of U.S. Communities Serving Most Attractive Shale Basins 1 • Represents 12,989 beds serving premier customer base through industry’s largest network • $450.6mm of Gross Book Value as of July 2018 in accommod
Slide 7: Entrepreneurial Team with Proven Execution Capabilities Supported by Experienced Board
7 Entrepreneurial Team w ith Proven Execution Capabilities Supported by Experienced Board • TL’s Core Management Team has been together since the “ beginning ” • TL has the most experienced team in the industry • Hospitality, overall accommodations operations, sales and construction are industry lea
Slide 8: Well Positioned and Differentiated Business Model
8 8 Well Positioned and Differentiated Business Model Click to edit footnote text Key Differentiating Attributes Turnkey Service Offering Unparalleled Depth and Breadth of Network Coverage (1) Higher Visibility into Future Performance Largest Network (1) 1 Scalable & Differentiated Operating Platfor
Slide 9: TL/Signor Merger Transformational in Delivering Value to Customers
9 Click to edit footnote text TL/Signor Merger Transformational in Delivering Value to Customers Increased Network Size Improves Customer Value Equation and Ability to Procure Exclusive Long - Term Contracts Greater Scale and Network Density in Permian Basin Enhanced Customer Service Across Expanded
Slide 10: Growing Catering and Managed Services; Established Government End-Market
10 10 • Growing catering and managed services platform across diversity of end - markets, both organically and through acquisitions − Government, Pipelines, Corrections and Education • Currently identified organic growth opportunities include: Government and Hospitality End - Markets • With approved
Slide 11: Consolidated Financial Performance – Growth Accelerating
11 11 $85.5 $80.1 $125.5 $149.3 $165.9 2016A 2017A LTM July 2018 2018F 2019E Consolidated Financial Performance – Growth Accelerating Click to edit footnote text • Consolidated Revenue and EBITDA CAGRs from 2016 - 2019E of ~25% • 2019E EBITDA forecast solely from current total contract value and ful
Slide 12: Why We Win – Customer-Centric Focus
12 Why We Win – Customer - Centric Focus and The Target 12 Meeting Customer Needs Through Differentiated and Unparalleled Suite of Solutions 01 FOOD 02 REST 03 CONNECTION 04 WELLNESS 05 COMMUNITY 06 HOSPITALITY ENGAGEMENT 07 PERFORMANCE 08 SAFETY 09 LOYALTY 10 PRODUCTIVITY 11 PREPAREDENESS 12 2
Slide 13: Premier Customer Base and Durable Commercial Contracts
13 Premier Customer Base and Durable Commercial Contracts Serving the Largest O&G Companies in the United States Business Underwritten by Strong Commercial Contracts • Diversified across O&G value chain • Focus on large Upstream customers underpins stability and growth • Integrated into customer pla
Slide 14: Resilient and Strengthened Platform Addressing Growth Opportunities
14 - 1,250,000 2,500,000 3,750,000 5,000,000 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Barrels Per Day Permian Basin and Williston Basin Production (1) Permian Basin Production Permian Basin Forecast Williston Basin Production Williston Basin F
Slide 15: TH's Powerful Unit Economics
15 15 ($25,000,000) ($5,000,000) $15,000,000 $35,000,000 $55,000,000 $75,000,000 $95,000,000 $115,000,000 $135,000,000 $155,000,000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 TH’s Powerful Unit Economics… Click to edit footnote text TH Overview • Rigorous process for vetting projects and dete
Slide 16: TH's Upside: Data Analytics Driving the Business
16 16 TH’s Upside: Data Analytics Driving the Business Sales and Operational Planning Process Commercial Processes (Systems) Management (People) • Revenue optimization tactics • Review weekly rates & utilization trends • Monitor and coach sales performance • Weekly sales/BD call to review − Regional
Slide 17: Consolidated EBITDA Bridge LTM July 2018 to 2019E
17 17 $125.5 $155.4 $165.9 $13.6 $2.0 $17.4 $3.0 $10.5 Consolidated EBITDA Bridge LTM July 2018 to 2019E (1) Assumes COGS PPPD improves from $ 40.8 July 2018 LTM to $ 36.7 for 2019 to reflect increase in scale and capacity. (2) Assumes $ 2.0mm in SG&A savings with the majority related to savings in
Slide 18: Exceptional Free Cash Flow Profile
18 18 $149.3 $54.3 $2.4 $15.6 $131.3 $55.2 $14.8 $7.0 2018F EBITDA TL Maintenance Capex Deferred Revenue 2018F Discretionary Free Cash Flow TL Growth Capex SH Growth Capex SH Capex Facilities Improvement 2018F Free Cash Flow $165.9 $136.4 $3.0 $13.5 $149.4 $13.0 2019E EBITDA TL Maintenance Capex Def
Slide 19: United States: Outlook and Focus
19 United States: 206 Outlook and Focus Upside Beyond Forecast: Organic Growth in Core Business (all new beds) Size (~# of Beds) First Revenues Capex ($mm) Minimum Contract Term Minimum Contracted EBITDA ($mm) 250 Q2 2019 $3.5 3 years $4 – $5 500 Mid 2019 $25 3 years $27 320 Mid 2019 $16 3 years $17
Slide 20: Incremental Upside – Major Projects and M&A
20 20 LOI Awarded for U.S . Refinery Project • LOI executed in 2018 with anticipated 2019 start date • Existing 596 bed community to support ~24 month project • Supporting the construction of a state - of - the - art crude oil refinery sited on approximately 150 acres in Belfield , North Dakota – th
Slide 21: Illustrative Transaction Framework
21 Illustrative Transaction Framework Click to edit footnote text P F equity value breakdown Ownership PF Shares SPAC shareholders 30.8% 32.5mm SPAC sponsor promote shares 5.8% 6.1mm PIPE shareholders 7.6% 8.0mm Sellers rollover equity 55.9% 59.1mm Total shares outstanding 100.0 % 105.7mm $1,397 $1,
Slide 22: Superior ROIC Compared to Specialty Rental Comparables
22 Characteristic Specialty Rental Market Leaders (1) Market Leader Average Unit Cost $32,400 $3,000 $50,000 (5) Average Daily Rental Rate (2) $30.00 ± $3.33 $70.00 (6) Average Revenue Payback Period (3) ~36 months ~30 months ~24 months Target Time Utilization 80% 75% 95% Average Economic Life 20 ye
Slide 23: Target Comparables Universe
23 (1) EBITDA figures are all restated for extraordinary items. (2) Latest Thomson/ FirstCall /Bloomberg estimates and Wall Street Research. (3) Market Value calculated using treasury stock method to quantify impact of Founder Shares and Warrants. Enterprise Value, Revenue and EBITDA are pro forma f
Slide 24: Appendix
24 Appendix
Slide 25: Growth and Stability: Capitalizing on Long-Term Investment in U.S. Shale
25 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 0% 20% 40% 60% 80% 100% 120% Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18
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