Target Hospitality Corp. · NASDAQ:TH

Target Hospitality — Investor Presentation (June 2021)

18 slides from Target Hospitality's investor presentation, June 2021

  1. Slide 1: Investor Presentation

    Investor Presentation June 2021

  2. Slide 2: Disclaimer

    Disclaimer Cautionary Statement Regarding Forward-Looking Statements This presentation contains statements reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended as “forward-looking statements.” You can identify these statements by the fact tha

  3. Slide 3: Target Hospitality (NASDAQ: TH)

    Target Hospitality (NASDAQ: TH) Largest Provider of Comprehensive Hospitality Solutions Key Differentiating Attributes TH owns an extensive network of geographically relocatable assets ✔  Strategically located network creates scale and with 13,577 average available beds across 26 locations Largest

  4. Slide 4: Differentiated Value-Enhancing Business Model

    Differentiated Value-Enhancing Business Model Strategically Focused on Enhancing Value through Diversification Premier Network Executing on Diversification Estimated Full Year Network size and scale provide efficient operating structure and LTM Total Revenue(1) 2021 Total Revenue(3) promote meaningf

  5. Slide 5: Long-Standing Relationships with Blue-Chip Customers

    Long-Standing Relationships with Blue-Chip Customers Strength of Diverse Customer Base Drives Continued Success  Strong, well capitalized, credit worthy, customer base  Top 6 non-government customers avg. enterprise value ~$78Bn Reliable – Representing ~47% of LTM revenue (1)  ~79% of LTM revenue

  6. Slide 6: Contract Structure Drives Long-Term Revenue Visibility

    Contract Structure Drives Long-Term Revenue Visibility ✔ Multiyear Contracts Provide Greater Visibility on Long-Term Revenue and Cash Flow ✔ Attractive Exposure to Multiple End Markets Supports Diversified Revenue ✔ Weighted Average Contract Length +4 Years Workforce Accommodations Government Servic

  7. Slide 7: Key Investment Highlights

    Key Investment Highlights Nation’s Largest Vertically-Integrated Specialty Hospitality and Services Provider ✔ Diversified and Committed Revenue = +54% of 2021 Revenue Related to Government Services ✔ Enhancing Liquidity and Maintaining Operational Flexibility = ~$117 Million in Liquidity(1) ✔ Maint

  8. Slide 8: Financial Strength

    Financial Update Financial Strength Investor Presentation | 8

  9. Slide 9: Strong First Quarter 2021 Performance

    Strong First Quarter 2021 Performance Continued Strong Cash Generation Creates Significant Balance Sheet Flexibility First Quarter 2021 Highlights Enhancing Financial Strength  Generated revenue of ~$46 million and Adjusted EBITDA(1) of  Strong cash generation supports accelerated reduction in ~$1

  10. Slide 10: Strategic Principles Support Positive Momentum

    Strategic Principles Support Positive Momentum  Continued Strength in Core Business and Customer Demand  Diversification of End-Markets Provides Strong Revenue Visibility  Generating Meaningful Discretionary Cash Flow Estimated Full Year 2021 Revenue 2021 Financial Outlook(1)  Approximately 72%

  11. Slide 11: Consistent and Predictable Revenue Visibility

    Consistent and Predictable Revenue Visibility +75% of Historical Quarterly Revenue is Committed or Includes Exclusivity  Contract structure, including exclusivity, provide consistent and predictable quarterly revenue  Emphasizing importance of consistent customer renewal rate of over 90% 2018 2019

  12. Slide 12: Strong Balance Sheet and Liquidity

    Strong Balance Sheet and Liquidity  Pro-Forma Liquidity of ~$117 million (1) TH Capitalization and Liquidity  $340(2) million of 9.5% senior secured notes, maturing $ in millions 3/31/2021 March 2024 Cash and Cash Equivalents $ 6.4 ABL Facility - $125 million capacity 60.0  $14 million outstandin

  13. Slide 13: Top Tier Operating Margins Support Premium Valuation

    Top Tier Operating Margins Support Premium Valuation  Generating Top Tier Operating Margins  Margin Profile and Diversified Customer Base Supports Multiple Expansion LTM Adjusted Gross Profit Margin(1) Current EV to Adjusted EBITDA(2)(3) 18.0x 50% 46% 45% 16.0x 40% 14.0x 35% 12.0x Average 9.8x 30%

  14. Slide 14: Appendix

    Appendix Appendix Investor Presentation | 14

  15. Slide 15: Full Turnkey Hospitality Services

    Full Turnkey Hospitality Services  Extensive network of geographically relocatable accommodation assets serves customers in highest demand regions  Serving business and governmental needs where availability of space and flexibility are essential  Turnkey solutions with integrated design and insta

  16. Slide 16: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Target Hospitality Corp. Reconciliation of Net Income to EBITDA, Adjusted EBITDA ($ in thousands) For the Three Months Ended March 31, 2021 2020 (Restated) Total Revenue $ 45,492 $ 71,655 Net income (loss) $ (13,138) $ 5,454 Income tax expense (benefit) (1,464) 233 Interest

  17. Slide 17: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Target Hospitality Corp. Reconciliation of Gross Profit to Adjusted gross profit and Adjusted gross profit margin ($ in thousands) For the Twelve Months Ended March 31, 2021 Total Revenue $ 198,985 Gross Profit $ 41,467 Adjustments: Depreciation of specialty rental assets 49

  18. Slide 18: Investor Presentation

    5) TARGET’ HOSPITALITY 5-) TARGET HOSPITALITY investor Presentation | 18

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