Target Hospitality Corp. has released its impressive second-quarter results for 2024, showcasing continued strong operational performance. The company reported revenue of $100.7 million for the three months ended June 30, 2024, compared to $143.6 million for the same period in 2023. Net income for the same period was $18.4 million, a significant decrease from $46.5 million in 2023. Additionally, adjusted EBITDA for the second quarter of 2024 was $52.2 million, down from $90.9 million in the same period of 2023.
The decrease in revenue and net income was primarily driven by non-cash, non-recurring, infrastructure enhancement revenue amortization associated with the company's Pecos Children's Center ("PCC") community within the government segment, which was fully amortized as of November 2023.
Despite the decline in certain financial metrics, Target Hospitality Corp. has maintained a robust financial position, with approximately $329 million of total available liquidity and a net leverage ratio of 0.1x as of June 30, 2024. The company continues to make progress towards achieving zero net debt by the end of 2024.
In terms of capital management, the company had approximately $8.6 million of capital expenditures for the three months ended June 30, 2024, focused on enhancing and maintaining its modular accommodations across its network. As of June 30, 2024, Target Hospitality had approximately $154 million of cash and cash equivalents.
Looking ahead, the company reaffirmed its 2024 outlook, expecting total revenue to range between $375 and $385 million, adjusted EBITDA to be between $184 and $190 million, and total capital spending to range between $25 and $30 million, excluding acquisitions. Additionally, Target Hospitality aims to achieve zero net debt by the end of 2024, with total available liquidity exceeding $350 million.
The government segment's revenue for the three months ended June 30, 2024, was $59.9 million, down from $101.2 million for the same period in 2023, while the hospitality and facilities services * South segment reported revenue of $38.2 million, compared to $39.2 million in 2023. The "All Other" segment's revenue for the three months ended June 30, 2024, was $2.6 million, down from $3.3 million in the same period of 2023.
The company continues to benefit from consistent customer demand, as its expansive network and premier service offerings provide a value-added solution for its world-class customers.
Target Hospitality Corp. is actively evaluating a robust pipeline of organic growth opportunities to diversify its contract portfolio and broaden its customer reach while maintaining a strong financial position through disciplined capital deployment.
The company is also in the process of evaluating an unsolicited non-binding proposal to acquire all outstanding shares of common stock. The special committee formed to review the proposal continues its evaluation and has made no decision at this time.
Today the company's shares have moved 2.4% to a price of $8.91. Check out the company's full 8-K submission here.
