Target Hospitality Reports Impressive Third Quarter 2024 Results Supported by Strong Business Fundamentals

Press Release

THE WOODLANDS, Texas, Nov. 12, 2024 — 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 September 30, 2024.

Financial and Operational Highlights

Revenue of $95.2 million for the three months ended September 30, 2024.
Net income of $20.1 million for the three months ended September 30, 2024.
Basic and diluted income per share of $0.20 for the three months ended September 30, 2024.
Adjusted EBITDA⁽¹⁾ of $49.7 million for the three months ended September 30, 2024.
Strong cash generation with approximately $31.4 million of Net Cash Provided by Operating Activities and $22.8 million of Discretionary Cash Flow⁽¹⁾ (“DCF”) for the three months ended September 30, 2024.
Significant financial flexibility with approximately $353 million of total available liquidity and a net leverage ratio of 0.0x as of September 30, 2024.
Continued progress towards achieving zero net debt by year end 2024.
Executed approximately $33.2 million of stock repurchases, year to date through November 8, 2024, focused on allocating capital to high return initiatives.
Optimized financial position and enhanced liquidity profile, supports continued evaluation of a robust pipeline of potential diversifying growth opportunities focused on maximizing shareholder value.

Executive Commentary

“The third quarter results were supported by strong business fundamentals and our proven operational flexibility. These elements enable Target to quickly align with customer demand, while consistently achieving our financial goals,” stated Brad Archer, President and Chief Executive Officer.

“Our ability to routinely deliver strong results, through business cycles, has established an optimized balance sheet with an enhanced liquidity profile. We are well positioned, with intentional focus, as we pursue multiple capital allocation opportunities focused on maximizing shareholder value and diversifying our contract portfolio,” concluded Mr. Archer.

Financial Results

Third Quarter Summary Highlights

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