Target Hospitality Announces Record Setting 2022 Results and Achieves Significant Milestone Towards Multiyear Contract Award for Expanded Humanitarian Community.

THE WOODLANDS, Texas: 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 fourth quarter and year ended December 31, 2022.

Financial and Operational Highlights

Record revenue of $502.0 million for year ended December 31, 2022, an increase of 72% year-over-year

Net income of $73.9 million for year ended December 31, 2022, compared to net loss of $4.6 million for the same period in 2021

Basic and diluted income per share of $0.76 and $0.74, respectively, for the year ended December 31, 2022

Record Adjusted EBITDA(1) of $264.7 million for year ended December 31, 2022, an increase of 122% from 2021

Record cash generation with net cash provided by operating activities of $305.6 million and Discretionary Cash Flow ("DCF")(1) of $293.3 million for the year ended December 31, 2022

Optimal financial flexibility with over $307 million in total available liquidity and net leverage ratio of 0.6 times as of December 31, 2022

Strong business momentum supporting four sequential quarterly increases in customer demand across Target's Hospitality and Facility Services ("HFS") segments, and a 17% increase in utilized beds compared to 2021

Extended numerous HFS customer contracts worth over $200 million of cumulative revenue through 2028

Maximizing network optimization with a 25% increase in total average utilized beds from 2021

Executing on strategic diversification with approximately 72% of 2022 revenue derived from committed revenue contracts backed by the United States government

On February 2, 2023, amended and extended the maturity of the Company's ABL Credit Facility, dated March 15, 2019 (as amended, the "Amended ABL Facility"), further solidifying its strong financial position

On February 28, 2023, announced the partial redemption of 9.50% Senior Secured Notes due 2024 (the "Senior Notes"), accelerating value creation through high return capital allocation initiatives

Materially enhanced financial position to pursue diversifying growth strategy, seeking to allocate over $500 million of net growth capital through 2027

Executive Commentary

"Our record setting 2022 results reflect Target's commitment to providing a range of premium service offerings, and critical hospitality solutions, to a suite of world-class customers. This focus has enabled us to solidify our strong operating platform, centered on maximizing financial flexibility, stated Brad Archer, President and Chief Executive Officer.

"With a materially strengthened and optimized financial position, we are evaluating an expanding pipeline of strategic growth opportunities focused on broadening our customer base. We believe these unique diversification initiatives provide the greatest opportunity to continue accelerating value creation for our shareholders," concluded Mr. Archer.

Financial Results

Full Year Summary Highlights

Refer to exhibits to this earnings release for definitions and reconciliations of Non-GAAP financial measures to GAAP financial measures

For the Years Ended

($ in '000s, except per share amounts) - (unaudited)

December 31, 2022

December 31, 2021






Net Income (loss)





Income (loss) per share - basic





Income (loss) per share - diluted





Adjusted EBITDA





Average utilized beds








Revenue for the year ended December 31, 2022, was $502.0 million compared to $291.3 million for the same period in 2021. The increase in revenue was primarily driven by the Government segment and the expanded humanitarian community, previously announced on July 6, 2022 ("Expanded Humanitarian Community").

Net income for the year ended December 31, 2022 was $73.9 million compared to net loss of $4.6...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT