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WKN: A2PFFD | ISIN: US87615L1070 | Ticker-Symbol:
NASDAQ
18.03.24
20:45 Uhr
8,740 US-Dollar
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(2)

Target Hospitality Reports Strong First Quarter 2023 Results with Sustained Business Momentum and Continued Achievement of Strategic Objectives

THE WOODLANDS, Texas, May 9, 2023 /PRNewswire/ -- 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 March 31, 2023 .

Financial and Operational Highlights

  • First quarter 2023 revenue increased 84% to $147.8 million compared to the same period in 2022
  • Net income of $43.8 million for the three months ended March 31, 2023, compared to $0.5 million for the same period in 2022
  • Basic and diluted income per share of $0.44 and $0.38, respectively, for the three months ended March 31, 2023
  • First quarter 2023 Adjusted EBITDA(1) increased 171% to $90.6 million compared to the same period in 2022
  • Generated net cash provided by operating activities of over $350 million and Discretionary Cash Flow ("DCF")(1) of over $339 million for the twelve months ended March 31, 2023
  • Achieved strategic objective with an 80% improvement in net leverage ratio from March 31, 2022, with a net leverage ratio of 0.5x as of March 31, 2023
  • Significant financial flexibility with over $167 million in total available liquidity
  • Reduced annual interest expense by approximately $12 million, following the $125 million partial redemption of 9.50% Senior Secured Notes due 2024, accelerating value creation
  • Continued achievement of significant milestones toward multi-year contract award related to the expanded humanitarian community previously announced on July 6, 2022, ("Expanded Humanitarian Community")
  • Strong business momentum supporting a 15% increase in customer demand in Target's HFS - South segment from the first quarter of 2022
  • Maximizing network optimization with a 28% increase in total average utilized beds from March 31, 2022
  • Executing on strategic diversification with a 134% increase in Government segment revenue from the same period in 2022, with approximately 74% of first quarter 2023 revenue derived from committed revenue contracts backed by the U.S. government
  • Materially enhanced financial position creates ideal flexibility to pursue diversifying growth strategy, seeking to allocate over $500 million of net growth capital through 2027

Executive Commentary

"Over the past year we have exponentially grown the business, materially advanced our strategic diversification efforts and substantially enhanced our balance sheet. These accomplishments have exceeded our expectations, significantly transformed Target's operating platform, and solidified our financial flexibility," stated Brad Archer, President and Chief Executive Officer.

"With this materially enhanced financial position, we will continue to support our customer's growing demand for our premier hospitality solutions, while simultaneously pursuing an expanding pipeline of strategic growth opportunities. We are well positioned, and highly confident in our ability to continue driving growth, while generating robust Discretionary Cash Flow and continuing to accelerate value creation for our shareholders," concluded Mr. Archer.

Segment Consolidation

As of March 31, 2023, the Company has consolidated two of its previously reported operating segments, HFS - Midwest and TCPL Keystone, as these segments no longer exceed thresholds required for individual presentation. These segments have been consolidated into the All-Other segment for all periods presented. This consolidation will more appropriately align with Target's ongoing strategic focus, while simultaneously creating more efficiently reported financial results. All reporting with the former segment designation should be relied upon in its entirety. No other segment consolidations or adjustments have occurred.

Financial Results

First Quarter Summary Highlights

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









For the Three Months Ended ($ in '000s, except per share amounts) - (unaudited)


March 31, 2023


March 31, 2022


Revenue


$

147,819


$

80,335


Net income


$

43,825


$

494


Income per share - basic


$

0.44


$

0.01


Income per share - diluted


$

0.38


$

0.01


Adjusted EBITDA


$

90,597


$

33,384


Average utilized beds



14,490



11,305


Utilization



93

%


76

%

Revenue for the three months ended March 31, 2023, was $147.8 million compared to $80.3 million for the same period in 2022, an 84% increase. The increase was driven by the Government segment and the Expanded Humanitarian Community.

Net income was $43.8 million for the three months ended March 31, 2023, compared to $0.5 million for the same period in 2022.

Adjusted EBITDA was $90.6 million for the three months ended March 31, 2023, compared to $33.4 million for the same period in 2022, a 171% increase.

Average utilized beds increased to 14,490, with utilization of 93%, for the three months ended March 31, 2023. The increase in utilized beds was primarily driven by the Expanded Humanitarian Community and continued strong customer demand in the HFS - South segment.

Capital Management

The Company had approximately $31.8 million of capital expenditures for the three months ended March 31, 2023, primarily related to a select asset acquisition focused on increasing HFS - South capacity to meet growing customer demand and enhancing existing portfolio capabilities.

As of March 31, 2023, the Company had approximately $42.4 million of cash and cash equivalents with approximately $167.4 million of total available liquidity and a net leverage ratio of 0.5 times.

Expanded Humanitarian Community Update

As the Company previously announced, effective March 7, 2023, a key milestone was achieved through the establishment of the required contracting vehicle the U.S. government utilizes to facilitate multi-year contract awards and consists of a 5-year base term with a 5-year option period.

Further, on May 5, 2023, the Company and its non-profit partner received the detailed performance of work statement, which will serve as the basis for community requirements supporting multi-year contract awards. Importantly, these requirements materially align with the Expanded Humanitarian Community's existing capabilities.

The achievement of these milestones marks significant contractual steps for the Expanded Humanitarian Community, and the critical humanitarian service offering it provides, as the government continues to prepare for future surges and increases in demand for humanitarian housing solutions.

The Company remains pleased with the continued progress of discussions and anticipates contract specifications, scope, and terms to be finalized with the U.S. government and its non-profit partner over the coming months.

The U.S. government has continued to state their urgent need for additional humanitarian housing capacity, particularly with the impending cessation of Title 42, which is anticipated to result in a substantial increase of individuals crossing the U.S. Southwest border.

To ensure uninterrupted access to existing humanitarian housing solutions, including Target's Expanded Humanitarian Community, the Company anticipates the existing six-month contract extension option will be exercised in the coming days. The six-month extension option will remain through the current contract term of November 15, 2023, with no change to contract structure or the existing economic terms.

In preparation for the anticipated meaningful increase in demand for humanitarian housing solutions, the exercise of the extension option will allow for seamless continuity of service offerings at the Expanded Humanitarian Community and serve as a bridge prior to long term contract specifications being finalized.

Strategic Focus

Target's enhanced balance sheet allows the Company to continue evaluating a range of high return capital allocation initiatives focused on maximizing long-term shareholder value. These opportunities include expanding reach across government agencies in support of select national defense projects, as well as unique commercial diversification opportunities spanning a variety of domestic energy transition initiatives.

The Company continues to actively evaluate this expanding pipeline of strategic growth opportunities and seeks to allocate over $500 million of net growth capital through 2027. Target will remain focused on allocating capital to areas with the highest potential value creation, while expecting to maintain its industry leading cash-on-cash margin profile.

As a result of the size and scale of these opportunities, there are inherently longer sales cycles prior to official contract award and announcement. While final outcomes remain uncertain, Target remains pleased with the continued progress of ongoing discussion involving a number of these opportunities and has achieved many tangible milestones in recent weeks.

Business Update

Target's strategically located HFS - South network of communities continues to experience positive trends in customer activity, supported by strong demand fundamentals for its premium hospitality solutions. These trends continue to support sequential quarterly increases in customer demand, resulting in a 15% increase in HFS - South utilization compared to the first quarter of 2022.

The Company continues to benefit from its materially expanded presence providing critical hospitality solutions serving the U.S. government's domestic humanitarian aid missions. This intentional positioning supported the recent strategic asset acquisition focused on increasing Target's portfolio capacity in support of this critical mission. Target believes the strategic location of these assets, along with its comprehensive suite of hospitality solutions, will allow the Company to react quickly and support the government's urgent and compelling need for humanitarian housing solutions.

As a reminder, Target's government services contracts are centered around minimum revenue commitments, which provide enhanced revenue visibility and accounted for approximately 74% of Target's first quarter 2023 revenue.

Target has intentionally aligned its premium service offerings with world-class customers, including the U.S. government, which has meaningfully increased long-term revenue visibility and significantly high graded the Company's contract structure. These fundamentals provide the basis for Target's preliminary 2023 outlook, excluding acquisitions of:

  • Total minimum revenue of $525 million (excluding variable service revenue)
  • Total maximum revenue of $710 million (including variable service revenue)
  • Minimum Adjusted EBITDA(1) of $365 million
  • Total capital spending between $20 and $30 million, excluding acquisitions
  • Zero net debt by second half of 2023

In addition, the 2023 financial outlook includes non-cash infrastructure revenue amortization of approximately $117 million associated with the Expanded Humanitarian Community enhancements.

Segment Results - First Quarter 2023

Government

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









For the Three Months Ended ($ in '000s) - (unaudited)


March 31, 2023


March 31, 2022


Revenue


$

109,503


$

46,790


Adjusted gross profit (1)


$

88,774


$

27,876


Revenue for the three months ended March 31, 2023, was $109.5 million compared to $46.8 million for the same period in 2022. The increase in revenue is a result of the Expanded Humanitarian Community.

Hospitality & Facilities Services - South

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










For the Three Months Ended ($ in '000s, except ADR) - (unaudited)


March 31, 2023


March 31, 2022



Revenue


$

35,772


$

31,576



Adjusted gross profit


$

11,656


$

13,318



Average daily rate (ADR)


$

73.42


$

74.09



Average utilized beds



5,339



4,661



Utilization



86

%


68

%


Revenue for the three months ended March 31, 2023, was $35.8 million compared to $31.6 million for the same period in 2022.

Average utilized beds increased to 5,339, with utilization of 86%, for the three months ended March 31, 2023. Target continues to benefit from increasing customer demand, which has supported consecutive quarterly increases in utilization, as the Company's expansive network provides added value and superior flexibility in labor allocation while offering world-class service offerings.

In response to continued strong customer demand and positive outlooks, Target acquired select community assets in the first quarter to appropriately align with existing customers' growing labor allocation requirements. Additionally, these assets strategically expand Target's regional presence, providing meaningful opportunities to further enhance Target's premier customer base.

All Other

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









For the Three Months Ended ($ in '000s) - (unaudited)


March 31, 2023


March 31, 2022


Revenue


$

2,544


$

1,969


Adjusted gross profit


$

(870)


$

(478)


This segment's operations consist of hospitality services revenue not included in other segments. Revenue for the three months ended March 31, 2023, was $2.5 million compared to $2.0 million for the same period in 2022.

Conference Call

The Company has scheduled a conference call for May 9, 2023, at 8:00 a.m. Central Time ( 9:00 am Eastern Time ) to discuss the first quarter 2023 results.

The conference call will be available by live webcast through the Investors section of Target Hospitality's website at www.TargetHospitality.com or by dialing in as follows:



Domestic:

1-888-317-6003

International:

1-412-317-6061

Passcode:

0037898

Please register for the webcast or dial into the conference call approximately 15 minutes prior to the scheduled start time.

About Target Hospitality

Target Hospitality is one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services in the United States . Target builds, owns and operates a customized and growing network of communities for a range of end users through a full suite of value-added solutions including premium food service management, concierge, laundry, logistics, security and recreational facilities services.

Cautionary Statement Regarding Forward Looking Statements

Certain statements made in this press release (including the financial outlook contained herein) are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside our control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: operational, economic, including inflation, political and regulatory risks; our ability to effectively compete in the specialty rental accommodations and hospitality services industry, including growing the HFS - South and Government segments; effective management of our communities; natural disasters and other business distributions including outbreaks of epidemic or pandemic disease; the duration of the COVID-19 pandemic or any future public health crisis, related economic repercussions and the resulting negative impact to global economic demand; the effect of changes in state building codes on marketing our buildings; changes in demand within a number of key industry end-markets and geographic regions; our reliance on third party manufacturers and suppliers; failure to retain key personnel; increases in raw material and labor costs; the effect of impairment charges on our operating results; our future operating results fluctuating, failing to match performance or to meet expectations; our exposure to various possible claims and the potential inadequacy of our insurance; unanticipated changes in our tax obligations; our obligations under various laws and regulations; the effect of litigation, judgments, orders, regulatory or customer bankruptcy proceedings on our business; our ability to successfully acquire and integrate new operations; global or local economic and political movements, including any changes in policy under the Biden administration; federal government budgeting and appropriations; our ability to effectively manage our credit risk and collect on our accounts receivable; our ability to fulfill Target Hospitality's public company obligations; any failure of our management information systems; our ability to refinance debt on favorable terms and meet our debt service requirements and obligations; and risks related to our outstanding obligations in connection with the Senior Notes. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

(1)Non-GAAP Financial Measures

This press release contains historical non-GAAP financial measures including Adjusted gross profit, Discretionary Cash Flow, EBITDA, and Adjusted EBITDA, which are measurements not calculated in accordance with US GAAP, in the discussion of our financial results because they are key metrics used by management to assess financial performance. Our business is capital-intensive, and these additional metrics allow management to further evaluate our operating performance. Reconciliations of these measures to the most directly comparable GAAP financial measures are contained herein. To the extent required, statements disclosing the definitions, utility and purposes of these measures are also set forth herein.

This press release also contains a forward-looking non-GAAP financial measure Adjusted EBITDA. Reconciliations of this forward-looking measure to its most directly comparable GAAP financial measures is unavailable to Target Hospitality without unreasonable effort. We cannot provide a reconciliation of forward-looking Adjusted EBITDA to GAAP financial measures because certain items required for such reconciliation are outside of our control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliation would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to us without unreasonable effort. Although we provide a minimum of Adjusted EBITDA that we believe will be achieved, we cannot accurately predict all the components of the Adjusted EBITDA calculation. Target Hospitality provides an Adjusted EBITDA outlook because we believe that this measure, when viewed with our results under GAAP, provide useful information for the reasons noted below.

Definitions:

Target Hospitality defines Adjusted gross profit, as Gross profit plus depreciation of specialty rental assets, loss on impairment, and certain severance costs.

Target Hospitality defines EBITDA as net income (loss) before interest expense and loss on extinguishment of debt, income tax expense (benefit), depreciation of specialty rental assets, and other depreciation and amortization. Adjusted EBITDA reflects the following further adjustments to EBITDA to exclude certain non-cash items and the effect of what management considers transactions or events not related to its core business operations:

  • Other (income) expense, net: Other (income) expense, net includes miscellaneous cash receipts, gains and losses on disposals of property, plant, and equipment, COVID-19 related expenses, and other immaterial non-cash items.
  • Transaction expenses: Target Hospitality incurred certain immaterial transactions costs during 2023 with no such items incurred during 2022.
  • Stock-based compensation: Charges associated with stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy.
  • Change in fair value of warrant liabilities: Non-cash change in estimated fair value of warrant liabilities.
  • Other adjustments: System implementation costs, including primarily non-cash amortization of capitalized system implementation costs, business development, accounting standard implementation costs and certain severance costs.

Target Hospitality defines Discretionary Cash Flow as cash flow from operations less maintenance capital expenditures for specialty rental assets.

Utility and Purposes:

EBITDA reflects net income (loss) excluding the impact of interest expense and loss on extinguishment of debt, provision for income taxes, depreciation, and amortization. We believe that EBITDA is a meaningful indicator of operating performance because we use it to measure our ability to service debt, fund capital expenditures, and expand our business. We also use EBITDA, as do analysts, lenders, investors, and others, to evaluate companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. EBITDA also excludes depreciation and amortization expense because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies.

Target Hospitality also believes that Adjusted EBITDA is a meaningful indicator of operating performance. Our Adjusted EBITDA reflects adjustments to exclude the effects of additional items, including certain items, that are not reflective of the ongoing operating results of Target Hospitality. In addition, to derive Adjusted EBITDA, we exclude gains or losses on the sale and disposal of depreciable assets and impairment losses because including them in EBITDA is inconsistent with reporting the ongoing performance of our remaining assets. Additionally, the gain or loss on sale and disposal of depreciable assets and impairment losses represents either accelerated depreciation or excess depreciation in previous periods, and depreciation is excluded from EBITDA.

Target Hospitality also presents Discretionary cash flows because we believe it provides useful information regarding our business as more fully described below. Discretionary cash flows indicate the amount of cash available after maintenance capital expenditures for specialty rental assets for, among other things, investments in our existing business.

Adjusted gross profit, Discretionary Cash Flow, EBITDA and Adjusted EBITDA are not measurements of Target Hospitality's financial performance under GAAP and should not be considered as alternatives to Net income (loss), or other performance measures derived in accordance with GAAP, or as alternatives to cash flow from operating activities as measures of Target Hospitality's liquidity. Adjusted gross profit, Discretionary Cash Flow, EBITDA and Adjusted EBITDA should not be considered as discretionary cash available to Target Hospitality to reinvest in the growth of our business or as measures of cash that is available to it to meet our obligations. In addition, these non-GAAP measures may not be comparable to similarly titled measures of other companies. Target Hospitality's management believe that Adjusted gross profit, Discretionary Cash Flow, EBITDA and Adjusted EBITDA provide useful information to investors about Target Hospitality and its financial condition and results of operations for the following reasons: (i) they are among the measures used by Target Hospitality's management team to evaluate its operating performance; (ii) they are among the measures used by Target Hospitality's management team to make day-to-day operating decisions, (iii) they are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results across companies in Target Hospitality's industry.

Investor Contact:
Mark Schuck
(832) 702 - 8009
[email protected]

Exhibit 1

Target Hospitality Corp.

Consolidated Statements of Comprehensive Income

($ in thousands, except per share amounts)

(unaudited)




Three Months Ended



March 31,



2023


2022

Revenue:







Services income


$

94,836


$

58,675

Specialty rental income



52,983



21,660

Total revenue



147,819



80,335

Costs:







Services



39,700



34,691

Specialty rental



8,559



4,928

Depreciation of specialty rental assets



17,597



12,800

Gross profit



81,963



27,916

Selling, general and administrative



15,199



11,759

Other depreciation and amortization



3,803



3,995

Other expense (income), net



1,004



(219)

Operating income



61,957



12,381

Loss on extinguishment of debt



2,128



-

Interest expense, net



7,498



9,572

Change in fair value of warrant liabilities



(3,711)



1,227

Income before income tax



56,042



1,582

Income tax expense



12,217



1,088

Net income



43,825



494

Change in fair value of warrant liabilities



(3,711)



1,227

Net income attributable to common stockholders - diluted



40,114



1,721

Other comprehensive loss







Foreign currency translation



(21)



(18)

Comprehensive income


$

43,804


$

476








Weighted average number shares outstanding - basic



100,643,271



96,936,785

Weighted average number shares outstanding - diluted



106,257,448



96,936,785








Net income per share - basic


$

0.44


$

0.01

Net income per share - diluted


$

0.38


$

0.01

Exhibit 2

Target Hospitality Corp.

Condensed Consolidated Balance Sheet Data

($ in thousands)

(unaudited)










March 31,


December 31,



2023


2022

Assets







Cash and cash equivalents


$

42,438


$

181,673

Accounts receivable, less allowance for doubtful accounts



52,786



42,153

Other current assets



7,927



12,553

Total current assets


$

103,151


$

236,379








Specialty rental assets, net



369,761



357,129

Goodwill and other intangibles, net



117,432



116,220

Other non-current assets



59,274



61,999

Total assets


$

649,618


$

771,727








Liabilities







Accounts payable


$

26,908


$

17,563

Deferred revenue and customer deposits



85,503



120,040

Current warrant liabilities



6,026



-

Current portion of long-term debt, net



206,704



-

Other current liabilities



41,121



53,293

Total current liabilities



366,262



190,896








Long-term debt, net



-



328,848

Warrant liabilities



-



9,737

Other non-current liabilities



41,744



41,399

Total liabilities



408,006



570,880








Stockholders' equity







Common stock and other stockholders' equity



110,372



113,165

Accumulated earnings



131,240



87,683

Total stockholders' equity



241,612



200,847

Total liabilities and stockholders' equity


$

649,618


$

771,727

Exhibit 3

Target Hospitality Corp.

Condensed Consolidated Cash Flow Data

($ in thousands)

(unaudited)










For the Three Months Ended



March 31,



2023


2022








Cash and cash equivalents - beginning of period


$

181,673


$

23,406








Cash flows from operating activities







Net income



43,825



494

Adjustments:







Depreciation



18,065



13,159

Amortization of intangible assets



3,335



3,636

Other non-cash items


17,990



6,556

Changes in operating assets and liabilities



(68,686)



(54,425)

Net cash provided by operating activities


$

14,529


$

(30,580)








Cash flows from investing activities







Purchases of specialty rental assets



(23,002)



(2,843)

Other investing activities



(5,443)



8

Net cash used in investing activities


$

(28,445)


$

(2,835)








Cash flows from financing activities







Other financing activities



(125,325)



15,831

Net cash provided by (used in) financing activities


$

(125,325)


$

15,831








Effect of exchange rate changes on cash and cash equivalents



6



2








Change in cash and cash equivalents



(139,235)



(17,582)








Cash and cash equivalents - end of period


$

42,438


$

5,824

Exhibit 4

Target Hospitality Corp.

Reconciliation of Gross profit to Adjusted gross profit

($ in thousands)

(unaudited)








For the Three Months Ended


March 31,


2023


2022







Gross Profit

$

81,963


$

27,916







Adjustments:






Depreciation of specialty rental assets


17,597



12,800

Adjusted gross profit

$

99,560


$

40,716

Exhibit 5

Target Hospitality Corp.

Reconciliation of Net income to EBITDA and Adjusted EBITDA

($ in thousands)

(unaudited)









For the Three Months Ended



March 31,



2023


2022









Net income

$

43,825


$

494


Income tax expense


12,217



1,088


Interest expense, net


7,498



9,572


Loss on extinguishment of debt


2,128



-


Other depreciation and amortization


3,803



3,995


Depreciation of specialty rental assets


17,597



12,800


EBITDA

$

87,068


$

27,949









Adjustments







Other expense (income), net


1,004



(219)


Transaction expenses


51



-


Stock-based compensation


5,646



3,337


Change in fair value of warrant liabilities


(3,711)



1,227


Other adjustments


539



1,090


Adjusted EBITDA

$

90,597


$

33,384


Exhibit 6

Target Hospitality Corp.

Reconciliation of Net cash provided by (used in) operating activities to Discretionary cash flows

($ in thousands)

(unaudited)
















For the Three Months


For the Twelve Months



Ended


Ended



March 31,


March 31,



2023


2022


2023











Net cash provided by (used in) operating activities


$

14,529


$

(30,580)


$

350,723

Less: Maintenance capital expenditures for specialty rental assets



(1,808)



(2,448)



(11,674)

Discretionary cash flows


$

12,721


$

(33,028)


$

339,049














Purchase of specialty rental assets



(23,002)



(2,843)


(140,447)

Purchase of property, plant and equipment



(1,015)



(117)


(21,451)

Acquired intangible assets



(4,547)



-


(4,547)

Proceeds from sale of specialty rental assets and other property, plant and equipment



119



125


609

Net cash used in investing activities


$

(28,445)


$

(2,835)


$

(165,836)














Principal payments on finance and finance lease obligations



(356)



(169)


(1,195)

Principal payments on borrowings from ABL



-



-


(70,000)

Proceeds from borrowings on ABL Facility



-



16,000


54,000

Repayment of Senior Notes



(125,000)



-


(130,500)

Payment of issuance costs from warrant exchange



-



-


(774)

Proceeds from issuance of Common Stock from exercise of warrants



42



-


123

Proceeds from issuance of Common Stock from exercise of stock options



1,252



-


1,477

Taxes paid related to net share settlement of equity awards



-



-


(121)

Payment of deferred financing costs



(1,263)



-


(1,263)

Net cash provided by (used in) financing activities


$

(125,325)


$

15,831


$

(148,253)

SOURCE Target Hospitality

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Werbehinweise: Die Billigung des Basisprospekts durch die BaFin ist nicht als ihre Befürwortung der angebotenen Wertpapiere zu verstehen. Wir empfehlen Interessenten und potenziellen Anlegern den Basisprospekt und die Endgültigen Bedingungen zu lesen, bevor sie eine Anlageentscheidung treffen, um sich möglichst umfassend zu informieren, insbesondere über die potenziellen Risiken und Chancen des Wertpapiers. Sie sind im Begriff, ein Produkt zu erwerben, das nicht einfach ist und schwer zu verstehen sein kann.