Target Hospitality(TH)

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Target Hospitality(TH) - 2025 Q2 - Quarterly Results
2025-08-07 11:02
[Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) [Financial Highlights](index=1&type=section&id=Financial%20Highlights%20for%20the%20Second%20Quarter%202025) Target Hospitality reported a significant decrease in Q2 2025 revenue and a net loss, primarily due to government contract terminations, while maintaining strong liquidity and announcing substantial new multi-year contracts, reflecting progress in strategic diversification Financial Highlights | Metric | Q2 2025 ($'000s) | Q2 2024 ($'000s) | | :-------------------------- | :---------------- | :---------------- | | Revenue | 61,606 | 100,721 | | Net income (loss) | (14,918) | 18,366 | | Income (loss) per share – basic | (0.15) | 0.18 | | Income (loss) per share – diluted | (0.15) | 0.18 | | Adjusted EBITDA(1) | 3,503 | 52,179 | - Net Cash Provided by Operating Activities for the six months ended June 30, 2025, was **$15.0 million**[7](index=7&type=chunk) - Approximately **$170 million** of total available liquidity, with a net leverage ratio of **0.1x** as of June 30, 2025[7](index=7&type=chunk) [Operational Achievements](index=1&type=section&id=2025%20Operational%20Achievements) Target Hospitality secured over $400 million in new multi-year contracts in 2025, including a strengthened Workforce Hub Contract ($154M through 2027) and a 5-year $246 million Dilley Contract, demonstrating successful strategic diversification - Target announced over **$400 million** in multi-year contracts in 2025, supporting diverse end-markets and making substantial progress toward achieving key strategic initiatives[7](index=7&type=chunk) - Strengthened multi-year workforce hub contract now expected to generate approximately **$154 million** of revenue through 2027, supporting a North American critical mineral supply chain[7](index=7&type=chunk) - Announced **5-year $246 million** contract award, reactivating strategically located South Texas assets in Dilley, Texas, supporting critical U.S. government initiatives[7](index=7&type=chunk) [Executive Commentary](index=1&type=section&id=Executive%20Commentary) President and CEO Brad Archer highlighted remarkable progress in expanding and diversifying Target's business portfolio, securing over $400 million in new contracts, emphasizing strong momentum, an unprecedented domestic investment cycle, and increased government demand as drivers for robust growth, focusing on strategic goals and shareholder value - Target has made remarkable progress in strategic initiatives to expand and diversify its business portfolio, announcing two new contracts valued at over **$400 million** in the first half of 2025[4](index=4&type=chunk) - Strong momentum, combined with an unprecedented domestic investment cycle and increased demand in the government sector, supports the most robust growth pipeline seen in years[5](index=5&type=chunk) [Detailed Financial Results](index=1&type=section&id=Detailed%20Financial%20Results) [Second Quarter Summary Financials](index=1&type=section&id=Second%20Quarter%20Summary%20Highlights) Target Hospitality's second quarter 2025 financial performance saw a significant decline in revenue, net income, and Adjusted EBITDA compared to the prior year, primarily due to contract changes Second Quarter Summary Financials | Metric | June 30, 2025 ($'000s) | June 30, 2024 ($'000s) | | :-------------------------- | :--------------------- | :--------------------- | | Revenue | 61,606 | 100,721 | | Net income (loss) | (14,918) | 18,366 | | Income (loss) per share – basic | (0.15) | 0.18 | | Income (loss) per share – diluted | (0.15) | 0.18 | | Adjusted EBITDA(1) | 3,503 | 52,179 | | Average utilized beds | 7,482 | 14,370 | | Utilization | 45 % | 89 % | [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Revenue for Q2 2025 decreased to $61.6 million from $100.7 million in Q2 2024, mainly due to the termination of the Pecos Children's Center (PCC) and South Texas Family Residential Center (STFRC) contracts, partially offset by the new Dilley Contract and growth in the Workforce Hub Contract - Revenue for the three months ended June 30, 2025, was **$61.6 million**, a decrease from **$100.7 million** for the same period in 2024[8](index=8&type=chunk) - The decrease was primarily attributable to the government segment, driven by the termination of the Pecos Children's Center Contract (PCC Contract) effective February 21, 2025, and partially by the termination of the South Texas Family Residential Center Contract (STFRC Contract) effective August 9, 2024[9](index=9&type=chunk) - These decreases were partially offset by the Dilley Contract award effective March 5, 2025, and growth in the WHS operating segment attributable to the Workforce Hub Contract[9](index=9&type=chunk) [Net Income and Adjusted EBITDA Analysis](index=2&type=section&id=Net%20Income%20and%20Adjusted%20EBITDA%20Analysis) Target Hospitality reported a net loss of $(14.9) million and Adjusted EBITDA of $3.5 million for Q2 2025, down from a net income of $18.4 million and Adjusted EBITDA of $52.2 million in Q2 2024, primarily due to decreased revenue and higher operating expenses related to construction services for the Workforce Hub Contract - Net income (loss) was **$(14.9) million** for the three months ended June 30, 2025, compared to **$18.4 million** for the same period in 2024[10](index=10&type=chunk) - Adjusted EBITDA was **$3.5 million** for the three months ended June 30, 2025, compared to **$52.2 million** for the same period in 2024[10](index=10&type=chunk) - The decreases in net income (loss) and Adjusted EBITDA were primarily attributable to the decrease in Revenue and higher operating expenses primarily related to construction services activity associated with the Workforce Hub Contract[11](index=11&type=chunk) [Capital Management](index=2&type=section&id=Capital%20Management) Target Hospitality invested approximately $6.0 million in capital expenditures during Q2 2025, focused on strategic diversification, maintaining strong liquidity with $19 million in cash and equivalents, $24 million in borrowings on its credit facility, and approximately $170 million in total available liquidity, resulting in a net leverage ratio of 0.1 times as of June 30, 2025 - Approximately **$6.0 million** of capital expenditures for the three months ended June 30, 2025, primarily focused on enhancing asset capabilities aligned with strategic diversification initiatives[12](index=12&type=chunk) - As of June 30, 2025, the Company had approximately **$19 million** of cash and cash equivalents and borrowings of approximately **$24 million** on the Company's **$175 million** credit facility[12](index=12&type=chunk) - Total available liquidity of approximately **$170 million** and a net leverage ratio of **0.1 times** as of June 30, 2025[12](index=12&type=chunk) [Business Update and Full Year 2025 Outlook](index=2&type=section&id=Business%20Update%20and%20Full%20Year%202025%20Outlook) [Strategic Diversification Progress](index=2&type=section&id=Strategic%20Diversification%20Progress) Target Hospitality is making significant progress in expanding and diversifying its business, securing over $400 million in multi-year contracts in 2025 across various industries, leveraging its vertically integrated solutions for remote workforce communities - Target continues to make significant progress towards its primary strategic objectives of expanding and diversifying the Company's business portfolio, while simultaneously establishing attractive growth platforms underpinned by robust long-term growth trends[13](index=13&type=chunk) - This progress has facilitated numerous multi-year contract awards in 2025, totaling over **$400 million**[13](index=13&type=chunk) - Target's distinctive capacity to deliver vertically integrated solutions, ranging from community construction to comprehensive turnkey hospitality services, aligns seamlessly with the holistic hospitality platform required by these remote workforce communities[17](index=17&type=chunk) [Workforce Hub Contract Update](index=2&type=section&id=Workforce%20Hub%20Contract%20Update) The Workforce Hub Contract, supporting a North American critical mineral supply chain, has seen scope expansion and community enhancements, which will shift some expected services revenue to 2026 due to additional construction in 2025, but increases the total contract value to approximately $154 million, with potential for further expansion - The Workforce Hub Contract includes both construction and services revenue, with community enhancements requiring additional construction activity in 2025[15](index=15&type=chunk) - Additional construction activity will shift a portion of the expected services revenue into 2026 but will increase the total contract value to approximately **$154 million**[15](index=15&type=chunk) - Target believes there are further opportunities for expanded contract scope and term extension for the Workforce Hub Contract[15](index=15&type=chunk) [Data Center Community Development](index=2&type=section&id=Data%20Center%20Community%20Development) Target is in advanced contract discussions for a multi-year lease and services agreement for a Data Center Community, supporting the rapidly expanding AI and data center market, with preliminary construction having begun and further economic details to be provided upon contract finalization - Target's capabilities have supported advanced contract discussions for the anticipated Data Center Community, which will support the rapidly expanding AI and data center end-market[16](index=16&type=chunk) - Preliminary construction activity has begun for this highly customized community as contract discussions conclude[16](index=16&type=chunk) [Government Sector Initiatives](index=2&type=section&id=Government%20Sector) Target's established presence in the government sector led to the five-year, $246 million Dilley Contract, highlighting its ability to provide essential infrastructure and hospitality solutions for critical U.S. government initiatives, with the company anticipating continued strong demand from this sector - Target's established presence in supporting critical infrastructure solutions for the U.S. government provided the foundation of its **five-year, $246 million** Dilley Contract[18](index=18&type=chunk) - This contract highlights Target's dynamic capabilities in responding to critical U.S. government policy initiatives and delivering a range of essential infrastructure and hospitality solutions[19](index=19&type=chunk) - Target believes it is uniquely positioned to support these mission-critical services and the continued strong demand from the government sector[19](index=19&type=chunk) [Full Year 2025 Outlook](index=4&type=section&id=Full%20Year%202025%20Outlook) Driven by robust momentum and the expansion of the Workforce Hub Contract, Target Hospitality has increased its full-year 2025 outlook for total revenue and Adjusted EBITDA - The robust momentum and positive environment, combined with the expansion of the Workforce Hub Contract scope, support the Company's increased 2025 outlook[19](index=19&type=chunk) Full Year 2025 Outlook | Metric | Full Year 2025 Outlook | | :---------------- | :--------------------- | | Total revenue | $310 - $320 million | | Adjusted EBITDA(1) | $50 - $60 million | [Segment Performance](index=4&type=section&id=Segment%20Performance) [Government Segment](index=4&type=section&id=Government%20Segment) The Government segment's revenue significantly decreased in Q2 2025 due to the termination of the PCC and STFRC contracts, partially offset by the new Dilley Contract, with increased contributions expected from this segment as the Dilley community becomes fully operational in H2 2025, and an $11.8 million reimbursement secured for PCC Contract close-out costs Government Segment Performance | Metric | June 30, 2025 ($'000s) | June 30, 2024 ($'000s) | | :------------------ | :--------------------- | :--------------------- | | Revenue | 7,487 | 59,860 | | Adjusted gross profit | (1,080) | 48,844 | - Decreases were primarily driven by the termination of the PCC Contract effective February 21, 2025, and partially by the termination of the STFRC Contract effective August 9, 2024, partially offset by the Dilley Contract award effective March 5, 2025[21](index=21&type=chunk) - The Company anticipates increased contributions from this segment as the Dilley community becomes fully operational following the Dilley Contract ramp-up period in the second half of 2025[21](index=21&type=chunk) - An agreement for the close-out and settlement of the PCC Contract will result in a payment to the Company of approximately **$11.8 million**[22](index=22&type=chunk) [Hospitality & Facilities Services - South Segment](index=4&type=section&id=Hospitality%20%26%20Facilities%20Services%20-%20South%20Segment) The Hospitality & Facilities Services - South segment experienced a slight revenue decrease in Q2 2025, but maintained consistent customer demand and utilization rates, with average utilized beds increasing slightly, reflecting the company's ability to optimize assets in a competitive market Hospitality & Facilities Services - South Segment Performance | Metric | June 30, 2025 ($'000s) | June 30, 2024 ($'000s) | | :------------------ | :--------------------- | :--------------------- | | Revenue | 36,166 | 38,232 | | Adjusted gross profit | 10,547 | 13,065 | | Average daily rate (ADR) | 69.62 | 74.33 | | Average utilized beds | 5,632 | 5,595 | | Utilization | 76 % | 76 % | - Target's premium service offering and network scale continue to support consistent customer demand, enabling unparalleled solutions and robust asset optimization[24](index=24&type=chunk) [Workforce Hospitality Solutions Segment](index=5&type=section&id=Workforce%20Hospitality%20Solutions%20Segment) The Workforce Hospitality Solutions segment generated $15.0 million in revenue and $3.7 million in adjusted gross profit in Q2 2025, a new contribution attributable to construction services activity associated with the multi-year Workforce Hub Contract, highlighting successful strategic growth initiatives Workforce Hospitality Solutions Segment Performance | Metric | June 30, 2025 ($'000s) | June 30, 2024 ($'000s) | | :------------------ | :--------------------- | :--------------------- | | Revenue | 15,042 | — | | Adjusted gross profit | 3,687 | — | - The increases were attributable to construction services activity associated with the multi-year Workforce Hub Contract, further illustrating the Company's successful progress on key strategic growth initiatives[27](index=27&type=chunk) [All Other Segment](index=5&type=section&id=All%20Other%20Segment) The 'All Other' operating segment, comprising hospitality services not included elsewhere, saw a slight increase in revenue to $2.9 million in Q2 2025 from $2.6 million in Q2 2024, and turned a positive adjusted gross profit All Other Segment Performance | Metric | June 30, 2025 ($'000s) | June 30, 2024 ($'000s) | | :------------------ | :--------------------- | :--------------------- | | Revenue | 2,911 | 2,629 | | Adjusted gross profit | 102 | (234) | - This category of operating segments consists of hospitality services revenue not included in other segments[28](index=28&type=chunk) [Corporate Information & Disclosures](index=6&type=section&id=Corporate%20Information%20%26%20Disclosures) [Conference Call](index=6&type=section&id=Conference%20Call) Target Hospitality scheduled a conference call for August 7, 2025, at 8:00 a.m. Central Time to discuss Q2 2025 results, accessible via live webcast or phone - A conference call is scheduled for **August 7, 2025, at 8:00 a.m. Central Time** (9:00 am Eastern Time) to discuss the second quarter 2025 results[30](index=30&type=chunk) - The call will be available by live webcast through the Investors section of Target Hospitality's website or by phone[30](index=30&type=chunk) [About Target Hospitality](index=6&type=section&id=About%20Target%20Hospitality) Target Hospitality is a leading North American provider of vertically integrated modular accommodations and value-added hospitality services, building, owning, and operating customized communities with a full suite of services for diverse end-users - Target Hospitality is one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services in the United States[33](index=33&type=chunk) - The company 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[33](index=33&type=chunk) [Cautionary Statement Regarding Forward Looking Statements](index=6&type=section&id=Cautionary%20Statement%20Regarding%20Forward%20Looking%20Statements) This section outlines the inherent risks and uncertainties associated with forward-looking statements, emphasizing that actual results may differ materially due to various factors including operational, economic, political, and regulatory risks, market competition, and reliance on third parties, with the company disclaiming any obligation to update these statements - Statements in the press release are 'forward looking statements' subject to risks, uncertainties, assumptions, and other important factors that could cause actual results to differ materially[34](index=34&type=chunk) - Important factors include operational, economic (including inflation), political and regulatory risks; competition; effective management of communities; natural disasters; changes in demand; reliance on third-party manufacturers; and ability to retain key personnel[34](index=34&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements, except as required by law[34](index=34&type=chunk) [Non-GAAP Financial Measures (Definitions and Utility)](index=7&type=section&id=Non-GAAP%20Financial%20Measures) Target Hospitality uses non-GAAP financial measures like Adjusted gross profit, EBITDA, and Adjusted EBITDA to assess financial performance, service debt, fund capital expenditures, and expand business, with these metrics excluding certain non-cash items and non-core business transactions to provide a clearer view of operating performance, though they are not GAAP alternatives - Non-GAAP financial measures (Adjusted gross profit, EBITDA, Adjusted EBITDA) are used by management to assess financial performance and are key metrics for evaluating operating performance[36](index=36&type=chunk) - EBITDA is defined as net income (loss) before interest expense, income tax expense, depreciation of specialty rental assets, and other depreciation and amortization, used to measure ability to service debt, fund capital expenditures, and expand business[39](index=39&type=chunk) - Adjusted EBITDA further adjusts EBITDA to exclude certain non-cash items and transactions not related to core business operations, such as transaction expenses, stock-based compensation, and changes in fair value of warrant liabilities[39](index=39&type=chunk)[40](index=40&type=chunk) - These non-GAAP measures are not GAAP financial performance measures and should not be considered alternatives to GAAP measures or cash flow from operating activities[44](index=44&type=chunk) [Investor Contact](index=9&type=section&id=Investor%20Contact) For investor inquiries, contact Mark Schuck at (832) 702 – 8009 or ir@targethospitality.com - Investor Contact: **Mark Schuck**, **(832) 702 – 8009**, ir@targethospitality.com[45](index=45&type=chunk) [Consolidated Financial Statements](index=10&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Comprehensive Income (loss)](index=10&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(loss)) The consolidated statements of comprehensive income (loss) show a shift from net income in Q2 2024 to a net loss in Q2 2025, driven by decreased revenue and increased service costs, impacting earnings per share significantly Consolidated Statements of Comprehensive Income (loss) | Metric | Three Months Ended June 30, 2025 ($'000s) | Three Months Ended June 30, 2024 ($'000s) | | :------------------------------------------------- | :----------------------------------------- | :----------------------------------------- | | Total revenue | 61,606 | 100,721 | | Gross profit | (328) | 46,870 | | Operating income (loss) | (16,918) | 29,551 | | Income (loss) before income tax | (17,855) | 25,278 | | Net income (loss) | (14,918) | 18,386 | | Net income (loss) attributable to Target Hospitality Corp. common stockholders - basic | (0.15) | 0.18 | | Net income (loss) attributable to Target Hospitality Corp. common stockholders - diluted | (0.15) | 0.18 | [Condensed Consolidated Balance Sheet Data](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheet%20Data) Target Hospitality's balance sheet as of June 30, 2025, shows a decrease in total assets and total liabilities compared to December 31, 2024, primarily due to a significant reduction in cash and cash equivalents and the current portion of long-term debt Condensed Consolidated Balance Sheet Data | Metric | June 30, 2025 ($'000s) | December 31, 2024 ($'000s) | | :----------------------------------- | :--------------------- | :------------------------- | | Cash and cash equivalents | 19,237 | 190,668 | | Total current assets | 83,047 | 249,336 | | Total assets | 533,714 | 725,774 | | Total current liabilities | 56,619 | 233,404 | | Long-term debt, net | 24,000 | — | | Total liabilities | 132,529 | 304,684 | | Total stockholders' equity | 401,185 | 421,090 | [Condensed Consolidated Cash Flow Data](index=12&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Data) For the six months ended June 30, 2025, Target Hospitality experienced a significant decrease in cash and cash equivalents, primarily due to substantial net cash used in financing activities, despite positive net cash provided by operating activities Condensed Consolidated Cash Flow Data | Metric | Six Months Ended June 30, 2025 ($'000s) | Six Months Ended June 30, 2024 ($'000s) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | | Cash and cash equivalents - beginning of period | 190,668 | 103,929 | | Net cash provided by operating activities | 15,001 | 89,696 | | Net cash used in investing activities | (24,911) | (16,137) | | Net cash used in financing activities | (161,543) | (23,187) | | Change in cash and cash equivalents | (171,431) | 50,367 | | Cash and cash equivalents - end of period | 19,237 | 154,296 | [Non-GAAP Reconciliations](index=13&type=section&id=Non-GAAP%20Reconciliations) [Reconciliation of Gross Profit to Adjusted Gross Profit](index=13&type=section&id=Reconciliation%20of%20Gross%20profit%20to%20Adjusted%20gross%20profit) The reconciliation shows that Adjusted gross profit for Q2 2025 was $13.3 million, a significant decrease from $61.7 million in Q2 2024, primarily due to the negative GAAP gross profit before depreciation adjustments Reconciliation of Gross Profit to Adjusted Gross Profit | Metric | Three Months Ended June 30, 2025 ($'000s) | Three Months Ended June 30, 2024 ($'000s) | | :-------------------------------- | :----------------------------------------- | :----------------------------------------- | | Gross Profit | (328) | 46,870 | | Depreciation of specialty rental assets | 13,584 | 14,805 | | Adjusted gross profit | 13,256 | 61,675 | [Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA](index=14&type=section&id=Reconciliation%20of%20Net%20income%20(loss)%20to%20EBITDA%20and%20Adjusted%20EBITDA) Target Hospitality's EBITDA and Adjusted EBITDA saw substantial declines in Q2 2025 compared to Q2 2024, reflecting the shift from net income to net loss and reduced operational profitability, even after accounting for non-cash and non-core adjustments Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA | Metric | Three Months Ended June 30, 2025 ($'000s) | Three Months Ended June 30, 2024 ($'000s) | | :-------------------------------- | :----------------------------------------- | :----------------------------------------- | | Net income (loss) | (14,918) | 18,386 | | EBITDA | 748 | 48,264 | | Adjusted EBITDA | 3,503 | 52,179 |
Target Hospitality Announces Second Quarter 2025 Results and Raises Full-Year 2025 Outlook, Reflecting Continued Progress on Strategic Diversification Initiatives
Prnewswire· 2025-08-07 10:50
Core Insights - Target Hospitality Corp reported a significant decline in revenue and net income for the second quarter of 2025, primarily due to contract terminations in the government segment [5][6][7] - The company announced over $400 million in multi-year contracts in 2025, indicating a strong growth pipeline supported by robust long-term trends [2][3][11] - Target's strategic initiatives focus on expanding and diversifying its business portfolio, particularly in the government and critical mineral supply chain sectors [4][15][16] Financial Performance - Revenue for the three months ended June 30, 2025, was $61.6 million, down from $100.7 million in the same period in 2024, representing a decrease of approximately 39% [5][6] - Net loss for the same period was $14.9 million, compared to a net income of $18.4 million in 2024 [7][39] - Adjusted EBITDA was $3.5 million, a significant drop from $52.2 million in the prior year [9][43] Operational Highlights - Average utilized beds decreased to 7,482 in Q2 2025 from 14,370 in Q2 2024, resulting in a utilization rate of 45%, down from 89% [5][6] - The company secured a five-year, $246 million Dilley Contract, which is expected to enhance contributions from the government segment [8][16] - Target's Workforce Hub Contract is projected to generate approximately $154 million in revenue through 2027, supporting the North American critical mineral supply chain [8][13] Strategic Initiatives - The company is actively pursuing growth initiatives in response to an unprecedented domestic investment cycle and increased government demand [4][11] - Target's capabilities in developing remote workforce communities are being leveraged for advanced contract discussions in the AI and data center sectors [14][15] - The company aims to enhance its service offerings in rapidly growing end-markets, supported by over $1.2 trillion in committed investments since January 2025 [15][16] Capital Management - As of June 30, 2025, Target had approximately $170 million in total available liquidity and a net leverage ratio of 0.1x [10][39] - Capital expenditures for the quarter were approximately $6.0 million, focused on enhancing asset capabilities [10][39] - The company anticipates increased cash flow from operating activities, with $15.0 million generated in the first half of 2025 [8][41]
Target Hospitality Announces Second Quarter 2025 Earnings Release and Conference Call Schedule
Prnewswire· 2025-07-31 10:45
Core Viewpoint - Target Hospitality Corp. will release its second quarter 2025 financial results on August 7, 2025, before market opens, and will hold a conference call to discuss these results [1]. Group 1: Financial Results Announcement - The company is set to announce its second quarter 2025 financial results on August 7, 2025 [1]. - A conference call is scheduled for the same day at 9:00 AM Eastern Time to discuss the financial results [1][3]. Group 2: Conference Call Details - The conference call will be accessible via live webcast on the company's website [2]. - Participants are encouraged to register for the webcast or dial in approximately 15 minutes before the call starts [3]. - A replay of the conference call will be available on the company's website after the event [4]. Group 3: Company Overview - Target Hospitality is one of North America's largest providers of vertically integrated modular accommodations and hospitality services [5]. - The company offers a range of value-added solutions, including food service management, concierge, laundry, logistics, security, and recreational facilities services [5].
Theratechnologies Reports Financial Results for the Second Quarter 2025
Globenewswire· 2025-07-09 11:30
Core Insights - Theratechnologies Inc. reported strong demand for EGRIFTA SV with record high patient enrollments, achieving nearly $37 million in revenue for the first half of fiscal 2025 despite a supply shortage impact of $10-$12 million in Q1 [2][6][28] - The company is set to launch EGRIFTA WR, an improved version of EGRIFTA SV, in Q3 2025, leveraging the momentum from the past year [2][29] - The company has withdrawn its Fiscal 2025 revenue and Adjusted EBITDA guidance due to an announced acquisition by an affiliate of Future Pak [3] Financial Performance - For Q2 2025, consolidated revenue was $17.7 million, a decrease of 19.5% year-over-year, while the first half revenue was $36.8 million, down 3.9% from the previous year [6][24] - EGRIFTA SV net sales in Q2 2025 were $11.1 million, down 31.3% from $16.2 million in Q2 2024, while Trogarzo net sales increased by 13.4% to $6.6 million [5][10] - Adjusted EBITDA for Q2 2025 was $906,000, down from $5.5 million in Q2 2024, primarily due to increased spending and lower revenues from EGRIFTA SV [20][34] Cost Structure - Cost of goods sold for Q2 2025 was $4.7 million, representing 26.5% of revenue, compared to 20.7% in Q2 2024 [12][13] - R&D expenses decreased significantly to $2.6 million in Q2 2025 from $4.7 million in Q2 2024, attributed to reduced spending in oncology and F8 formulation programs [14][15] - Selling expenses increased to $6.8 million in Q2 2025, driven by higher compensation expenses related to market preparations [17][18] Net Loss and Financial Position - The company reported a net loss of $4.5 million for Q2 2025, compared to a net profit of $987,000 in Q2 2024, with a total net loss of $4.3 million for the first half of 2025 [24][27] - As of May 31, 2025, cash amounted to $9.5 million, with positive cash flows from operating activities of $2.7 million, indicating improved liquidity [26][27] Future Outlook - The company anticipates that existing cash and cash equivalents will be sufficient to fund operations for at least the next 12 months [26][30] - The successful transition from EGRIFTA SV to EGRIFTA WR is critical for meeting future revenue and EBITDA targets [29][30]
Theratechnologies to Announce Second Quarter 2025 Financial Results
Globenewswire· 2025-07-03 21:30
Core Viewpoint - Theratechnologies Inc. will report its financial results for the second quarter of 2025 on July 9, 2025, following the announcement of its acquisition on July 2, 2025, and no conference call will be held [1]. Company Overview - Theratechnologies is a specialty biopharmaceutical company focused on the commercialization of innovative therapies that aim to redefine standards of care [2].
Theratechnologies enters into Definitive Agreement to be Acquired by CB Biotechnology, an Affiliate of Future Pak
Globenewswire· 2025-07-03 02:11
Core Viewpoint - Theratechnologies Inc. has entered into a binding arrangement agreement with CB Biotechnology, LLC for the acquisition of all its common shares at a price of US$3.01 per share in cash, plus contingent value rights (CVRs) that could yield additional payments of up to US$1.19 per CVR, totaling a potential transaction value of US$254 million assuming full CVR payments [1][5][10]. Transaction Details - The cash and CVR consideration represents significant premiums of 126% and 216% respectively compared to the closing price on April 10, 2025, prior to the announcement of the initial proposal [2][5]. - The transaction is the result of a sale process led by a special committee of independent directors, aimed at maximizing shareholder value [3][18]. - The transaction will be funded by Future Pak through a combination of debt financing and cash on hand, with a commitment for a US$220 million credit facility [11]. Milestones and CVR Payments - CVR holders may receive additional payments based on the achievement of specific milestones related to the EGRIFTA franchise gross profit, with potential distributions of up to US$65 million [6][7]. - If the EGRIFTA franchise gross profit exceeds US$40 million in any 12-month period, 50% of the excess will be distributed to CVR holders [6]. - Additional one-time payments of US$10 million and US$15 million may be made if cumulative gross profits exceed US$150 million and US$250 million respectively over a 36-month period [6]. Shareholder Approval and Governance - The transaction requires approval from at least 66⅔% of the votes cast by common shareholders at a special meeting [12]. - The Board of Directors has unanimously recommended that shareholders approve the transaction, deeming it fair and in the best interests of the company [18][19]. - Voting support agreements have been secured from senior management and directors holding approximately 1.14% of the common shares [13]. Post-Transaction Structure - Upon completion, Theratechnologies will become a privately held company and will cease to be a reporting issuer under Canadian securities laws [15]. - The common shares will no longer be publicly traded on the Toronto Stock Exchange and Nasdaq [15].
Target Hospitality (TH) Earnings Call Presentation
2025-06-18 10:34
Company Overview - Target Hospitality is North America's largest provider of comprehensive hospitality solutions[4,6] - The company has over 16,000 network beds across 28 communities[6,9] and +8,000 available beds to expand with limited investment[9,33] - Target Hospitality has an average customer relationship length of +6.5 years[9] Financial Performance and Outlook - The company anticipates total revenue between $265 million and $285 million in 2025[6] - Adjusted EBITDA is projected to be between $47 million and $57 million in 2025[6] - Since 2021, the company has generated +$160 million of average annual Discretionary Cash Flow (DCF)[9] - As of December 31, 2024, Target Hospitality reported $191 million in cash and cash equivalents[42] Growth and Strategy - The company is pursuing a multi-year workforce hub contract supporting critical mineral development, expected to generate approximately $140 million in revenue through 2027[23,25] - Target Hospitality is strategically diversifying and regionally expanding its reach[22] - The company redeemed all outstanding 10.75% Senior Secured Notes on March 25, 2025, resulting in over $19 million of annual interest expense savings[46]
Theratechnologies Reports on its Annual Meeting of Shareholders
Globenewswire· 2025-05-29 18:00
Core Points - Theratechnologies Inc. held its annual meeting of shareholders in a virtual-only format and reported the voting results [1] - Shareholders elected candidates to the Board of Directors, appointed KPMG LLP as auditors, and approved a long-term incentive plan [2] Voting Results - Joseph Arena received 20,473,944 votes (84.03% for) with 3,890,222 abstentions (15.97%) [3] - Frank Holler received 19,089,786 votes (78.35% for) with 5,274,380 abstentions (21.65%) [3] - Paul Lévesque received 19,027,772 votes (78.10% for) with 5,336,394 abstentions (21.90%) [3] - Andrew Molson received 19,066,145 votes (78.25% for) with 5,298,021 abstentions (21.75%) [3] - Dawn Svoronos received 18,998,230 votes (77.98% for) with 5,365,936 abstentions (22.02%) [3] - Elina Tea received 19,163,502 votes (78.65% for) with 5,200,664 abstentions (21.35%) [3] - Dale Weil received 19,005,768 votes (78.01% for) with 5,358,398 abstentions (21.99%) [3] - Jordan Zwick received 19,618,725 votes (80.52% for) with 4,745,441 abstentions (19.48%) [3] Company Overview - Theratechnologies is a biopharmaceutical company focused on innovative therapies that aim to redefine standards of care [4]
Target Hospitality Announces Seat on $4 Billion Multi-Year U.S. Government Strategic Sourcing Vehicle
Prnewswire· 2025-05-21 10:45
Core Points - Target Hospitality Corp has been awarded a multi-year contract valued at $4.0 billion for Emergency Detention and Related Services, supporting U.S. government immigration initiatives [1][2][3] - The contract period extends through May 16, 2027, and is aimed at enhancing the Department of Homeland Security and U.S. Immigration and Customs Enforcement's emergency detention capabilities [2][3] - This award positions Target to pursue additional growth opportunities beyond its existing asset portfolio, aligning with government initiatives [3][4] Company Overview - Target Hospitality is one of North America's largest providers of vertically integrated modular accommodations and hospitality services, offering a range of value-added solutions [5] - The company builds, owns, and operates a network of communities tailored for various end users, including services like food management, logistics, and security [5]
Target Hospitality(TH) - 2025 Q1 - Quarterly Report
2025-05-19 18:28
Revenue Performance - The termination of the PCC Contract resulted in a revenue decrease of approximately $168 million annually, with total revenue of $24.1 million for Q1 2025 compared to $53.6 million for Q1 2024 [136]. - Total revenue decreased by $36.8 million, or 34%, in Q1 2025 compared to the same period in 2024, primarily due to lower revenue from the Government segment [142]. - Total revenue for the three months ended March 31, 2025, was $69.9 million, a decrease of 34% from $106.7 million in the same period of 2024 [170]. - Services income decreased by 31% to $50.1 million, down from $72.4 million, primarily due to lower revenue in the Government segment following contract terminations [170][171]. - Specialty rental income fell by 56% to $15.0 million from $34.3 million, attributed to the same contract terminations in the Government segment [170][172]. - Government segment revenue decreased by 62% to $25.7 million from $67.6 million, primarily due to the termination of the PCC and STFRC contracts, which accounted for approximately $30 million and $12 million of the revenue decrease, respectively [187][188]. Profitability Metrics - The company reported a net loss of approximately $(6.5) million for Q1 2025, compared to net income of approximately $20.4 million for Q1 2024 [142]. - Consolidated Adjusted EBITDA for Q1 2025 was $21.6 million, a decrease of $32.1 million or 60% compared to the same period in 2024 [144]. - Adjusted gross profit was significantly impacted, resulting in a gross profit of $17.9 million, a 63% decrease from $49.1 million in the prior year [170]. - For the three months ended March 31, 2025, the company reported a gross profit of $17.964 million, down from $49.068 million in the same period of 2024, resulting in an adjusted gross profit of $31.636 million compared to $63.849 million [232]. - The net income (loss) for the three months ended March 31, 2025, was $(6.459) million, a significant decrease from a net income of $20.383 million in the same period of 2024 [234]. - EBITDA for the three months ended March 31, 2025, was $16.569 million, compared to $49.779 million for the same period in 2024, while adjusted EBITDA was $21.571 million, down from $53.688 million [234]. Cash Flow and Liquidity - Cash flows from operations for Q1 2025 were approximately $3.9 million, a decrease of $46.7 million or 92% compared to $50.6 million in Q1 2024 [141]. - Net cash provided by operating activities was $3.9 million for the three months ended March 31, 2025, a significant decline from $50.6 million in the same period of 2024 [197]. - Net cash used in investing activities increased to $17.2 million from $8.9 million, primarily due to $15.5 million in growth capital expenditures related to the WHS operating segment [199]. - Net cash used in financing activities surged to $142.9 million from $21.3 million, driven by the full redemption of the 2025 Senior Secured Notes totaling $181.4 million [200]. - As of March 31, 2025, the ABL Facility had an unused available borrowing capacity of $134.1 million, providing sufficient liquidity for the next 12 months [192][204]. Contracts and Future Revenue - The Workforce Housing Contract with Lithium Nevada is expected to generate approximately $140 million in revenue over its initial term, with about $76 million of committed minimum revenue, and $68 million anticipated in 2025 [135]. - The DIPC Contract is expected to provide over $246 million in revenue over its five-year term, with a ramp-up period affecting initial revenue amounts [139]. - The DIPC Contract is expected to generate over $246 million in revenue over its five-year term, starting March 5, 2025 [166]. - The Workforce Housing Contract is projected to generate approximately $140 million in revenue, with $76 million in committed minimum revenue expected in 2025 [167]. Expenses and Cost Management - Selling, general and administrative expenses remained relatively stable at $14.8 million, with a slight decrease from $14.9 million in the previous year [177]. - The company incurred approximately $21.2 million in capital expenditures during the three months ended March 31, 2025, with $15.5 million allocated to the new WHS operating segment [195]. - The company incurred transaction expenses of $2.830 million during the three months ended March 31, 2025, compared to $240,000 in the same period of 2024 [234]. - Stock-based compensation expenses for the three months ended March 31, 2025, were $1.716 million, down from $2.748 million in the same period of 2024 [234]. Risk Factors - Major customers accounted for 34% and 11% of revenues for the three months ended March 31, 2025, indicating a concentration risk in revenue sources [208]. - The company did not hedge its exposure to commodity prices, which could affect profitability and cash flows due to volatility [238]. - As of March 31, 2025, the company had $40.9 million of outstanding floating-rate obligations, exposing it to increased interest expense if short-term interest rates rise [236]. - If floating interest rates increased by 100 basis points, the company's consolidated interest expense would rise by approximately $0.4 million annually [236].