Company Overview - Target Hospitality Corp. (NASDAQ: TH) provides accommodation services primarily for a diverse workforce and immigrants in the US, focusing on remote areas [1] Revenue Generation - The company generates revenue by securing contracts, mainly with government agencies and energy-related companies [1]

MONTREAL, April 11, 2025 (GLOBE NEWSWIRE) -- Theratechnologies Inc. (“Theratechnologies” or the “Company”) (TSX: TH) (NASDAQ: THTX), a commercial-stage biopharmaceutical company, wishes to address its shareholders in response to a press release issued today by Future Pak, LLC (“Future Pak”) regarding its proposals to acquire the Company. The Company believes its shareholders should be aware of the following: In August 2024, the Company received a first unsolicited non-binding proposal from Future Pak to acq ...

Core Insights - Theratechnologies reported a total revenue of $19 million for Q1 2025, reflecting a year-over-year growth of 17% [2][14] - The company achieved a net profit of $117,000, a significant improvement from a net loss of $4.48 million in Q1 2024 [28] - The approval of EGRIFTA WR™ by the FDA is expected to enhance the company's growth trajectory in the HIV treatment market [3][35] Financial Performance - EGRIFTA SV net sales reached $13.88 million, up 44.8% from $9.59 million in Q1 2024, primarily due to higher unit sales and a price increase [2][15] - Trogarzo sales decreased by 22.4% to $5.17 million, attributed to lower unit sales and increased government rebates [2][17] - Adjusted EBITDA for Q1 2025 was $2.32 million, compared to a loss of $247,000 in the same period last year, indicating improved operational efficiency [26] Recent Developments - The FDA approved the supplemental Biologics License Application for EGRIFTA WR™ on March 25, 2025, which is anticipated to drive further adoption [3][35] - The company faced a temporary supply disruption for EGRIFTA SV due to a manufacturing shutdown, but resumed distribution on February 14, 2025 [6][34] - The approval of the Prior Approval Supplement (PAS) for EGRIFTA SV on April 7, 2025, allows for regular distribution without further FDA authorization [9][35] Research and Development - R&D expenses decreased by 21.2% to $2.97 million in Q1 2025, mainly due to reduced spending on life-cycle management projects [20] - The company presented data highlighting the limitations of using BMI to assess cardiovascular risk in people with HIV, emphasizing the need for better screening methods [10] Guidance and Future Outlook - The company estimates FY2025 revenue to be between $80 million and $83 million, considering the impact of the supply disruption and the new product launch [12] - The transition from EGRIFTA SV to EGRIFTA WR™ is crucial for meeting financial covenants and sustaining revenue growth [36]

Core Viewpoint - Target Hospitality Corp. reported fourth-quarter 2024 results with earnings and revenues exceeding Zacks Consensus Estimates, although both metrics declined year-over-year [1][3]. Financial Performance - Adjusted EPS for the quarter was 12 cents, surpassing the Zacks Consensus Estimate of 6 cents, but down from 29 cents in the prior-year quarter [3]. - Total revenues reached $83.7 million, exceeding the consensus estimate of $80 million by 4.5%, but reflecting a 33.7% decline year-over-year [3]. Segment Analysis - Government segment revenues were $43.7 million, down from $87.5 million in the year-ago quarter, with adjusted gross profit of $37.7 million compared to $65.7 million previously [4]. - Hospitality & Facilities Services - South segment revenues increased slightly to $36.7 million from $36.2 million year-over-year, with adjusted gross profit of $12.6 million compared to $12.4 million [5][6]. - All Other segment revenues rose to $3.3 million from $2.5 million in the prior-year quarter [6]. Operational Highlights - Average utilized beds increased to 5,474 from 5,105 year-over-year, while the average daily rate decreased to $72.14 from $76.58 [6]. - Selling, general and administrative expenses were $12.6 million, up from $12.2 million in the prior-year period [7]. - Net income for the quarter was $12.5 million, down from $37.8 million in the prior-year quarter, and adjusted EBITDA was $41.1 million compared to $67.7 million previously [7]. Balance Sheet - As of December 31, 2024, cash and cash equivalents stood at $190.7 million, an increase from $103.9 million as of December 31, 2023 [8]. Future Outlook - For 2025, the company anticipates revenues between $265 million and $285 million, with adjusted EBITDA expected in the range of $47 million to $57 million [9].

Financial Data and Key Metrics Changes - For Q4 2024, total revenue was approximately $84 million with adjusted EBITDA of approximately $41 million [22] - The government segment generated quarterly revenue of approximately $44 million, a decrease attributed to lower PCC variable services revenue and the termination of the South Texas Family Residential Center contract [22][23] - The company ended the quarter with $191 million in cash and $366 million in total liquidity, achieving a net leverage ratio of 0.0% and 0 net debt as of year-end 2024 [28][29] Business Line Data and Key Metrics Changes - The HFS segment delivered quarterly revenue of approximately $40 million, benefiting from consistent customer demand [26] - The government segment experienced a transition due to the election cycle but reactivated the Dilley community, which is expected to generate over $246 million in revenue over five years [23][15] Market Data and Key Metrics Changes - The company is actively pursuing opportunities in the government sector, with a stated need for 110,000 to 150,000 beds, while currently having around 50,000 [70] - The Lithium Americas contract is expected to provide significant revenue opportunities, with potential phases extending beyond 2027 [42][46] Company Strategy and Development Direction - The company focuses on maintaining a flexible and resilient business model, emphasizing disciplined capital allocation and operational efficiencies [9][10] - Target is committed to pursuing growth opportunities in both government and non-government sectors, including large industrial projects [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the government market opportunities and the company's ability to support increased demand for hospitality solutions [34] - The revised 2025 financial outlook includes total revenue between $265 million and $285 million and adjusted EBITDA between $47 million and $57 million [30][31] Other Important Information - The company redeemed all outstanding senior notes due June 2025, resulting in expected annual interest expense savings of $19.5 million [29] - Capital spending for the quarter was approximately $4 million, primarily focused on enhancing the asset base [27] Q&A Session Summary Question: Regarding the remarketing of West Texas Pecos assets and the Dilley contract economics - Management indicated that the best proxy for the economics of the West Texas assets is the Dilley assets, with potential for slightly better economics [39][40] Question: Size opportunity of the Lithium Americas contract - Management noted that there is potential for multiple phases beyond 2027, with the project pacing well [42][44] Question: Expectations for revenue and EBITDA in Q1 - Management expects minimal revenue from the Dilley contract in Q1 due to a ramp-up period, with HFS utilization trends slightly ahead of last year [63][64] Question: Update on the acquired asset from May 2023 - Management highlighted a strong pipeline of opportunities in the government segment, with active quoting for various projects [70][73] Question: Liquidity post-redemption and CapEx expectations for 2025 - Management expects free cash flow to be positive with CapEx projected to be lower than last year [87][88]

Operations and Services - Target Hospitality serves approximately 15,000,000 meals annually, emphasizing fresh ingredients and scratch-made meals[22]. - The company operates a network of communities designed to promote safety and productivity, featuring amenities such as fitness centers, commercial kitchens, and 24-hour security[24]. - Target Hospitality has expanded its community network significantly, adding approximately 4,500 beds through acquisitions in the HFS – South region[26]. - The company has a vertically integrated business model that supports the entire value chain from site identification to long-term community development[26]. - Target Hospitality's facilities are strategically located to reduce commute times for workers, enhancing safety and productivity[35]. - Target Hospitality's "Target 12" service model focuses on optimizing workforce engagement and productivity during non-working hours[19]. - The company is well-positioned to support long-term projects, with facilities designed for multi-year commitments and exclusivity provisions[27]. - The company has established a leadership position in providing integrated hospitality services to U.S. government service providers and major natural resource development companies[14]. Financial Performance - Approximately 64% of the company's revenues in 2024 were comprised of minimum revenue amounts, and about 99% were under contract, including exclusivity provisions[42]. - The government segment accounts for approximately 58% of the company's revenue for the year ended December 31, 2024[51]. - The company has a total liquidity of approximately $365.7 million as of December 31, 2024, including $190.7 million in cash and cash equivalents[43]. - The Government segment generated approximately 58% or $224.7 million of the Company's revenue for the year ended December 31, 2024[57]. - The HFS – South segment generated approximately 39% or $149.9 million of the Company's revenue for the year ended December 31, 2024[61]. - The Company executed a new contract with the NP Partner effective November 16, 2023, with a minimum annual revenue contribution of approximately $390 million[78]. - The Expanded Contract, which was executed on May 15, 2023, increased the contract value and extended the period of performance through November 15, 2023[78]. Customer Relationships and Market Position - The company has maintained a consistent client renewal rate of over 85% for the last five years, demonstrating strong customer retention[42]. - The company has established long-standing relationships with approximately 330 diversified customers, including major blue-chip companies[38]. - The company aims to enhance contract scope and services, expanding its presence across multiple government agencies to create growth opportunities[43]. Employee and Operational Management - The Company employed approximately 770 people as of December 31, 2024, with approximately 600 in the HFS – South segment[86]. - Approximately 45% of eligible employees participated in the Health & Safety program in 2024[88]. - The Company offers a variety of compensation and benefits programs designed to attract and retain employees, including retirement savings plans and medical insurance[89]. - The Company is committed to employee training and development, with new hires expected to attend orientation training within 90 days of hire[91]. - The Company encourages open communication through staff meetings at every community to evaluate employee experience and retention efforts[90]. Infrastructure and Facilities - As of December 31, 2024, the company operates 26 strategically located communities with a total of 16,865 beds, primarily in high-demand regions of the southwestern U.S.[38]. - The Dilley Immigration Processing Center includes 524,000 square feet of building space with 2,400 beds[55]. - The Company has facilities and operations for one community in Canada and three communities in North Dakota[63]. - The Company's operations in the Government segment are primarily backed by a committed U.S. government contract[78]. Corporate Governance and Reporting - The Company provides free access to its financial reports through its website, including Annual Reports and Quarterly Reports[94]. - The Company operates primarily under the Target Hospitality brand, with trademarks registered or pending registration[92]. - The Company’s corporate headquarters is located in The Woodlands, Texas, operating from a single leased office[93]. Strategic Growth and Acquisitions - The company selectively pursues acquisitions to diversify its service offerings and customer base, focusing on high returns on invested capital[41]. - The Company has a strong pipeline of growth opportunities, including solutions supporting U.S. government immigration policies[54]. Financial Obligations and Risks - The Company’s operating lease right of use assets totaled $24.9 million and operating lease liabilities totaled $26 million as of December 31, 2024[353]. - The Company has $0 of outstanding floating-rate obligations under its credit facilities as of December 31, 2024[341]. - The Company does not currently hedge its exposure to commodity prices, which may affect profitability and cash flows[343].

Core Insights - Target Hospitality reported revenue of $83.69 million for Q4 2024, a year-over-year decline of 33.7% and an EPS of $0.12 compared to $0.29 a year ago, with a revenue surprise of +4.48% over the Zacks Consensus Estimate of $80.1 million and an EPS surprise of +100.00% over the consensus estimate of $0.06 [1] Financial Performance - Revenue from Hospitality & Facilities Services - South was $36.73 million, exceeding the estimated $35.12 million, representing a +1.4% change year-over-year [4] - Revenue from All Other segments was $3.25 million, significantly higher than the estimated $1.55 million, showing a +30.4% change year-over-year [4] - Revenue from Government services was $43.70 million, slightly above the estimated $43.28 million, but reflecting a -50.1% change year-over-year [4] - Adjusted Gross Profit for Hospitality & Facilities Services - South was $12.58 million, surpassing the estimated $7.96 million [4] - Adjusted Gross Profit for Government services was $37.71 million, exceeding the estimated $34.58 million [4] Stock Performance - Shares of Target Hospitality have returned +12.5% over the past month, contrasting with the Zacks S&P 500 composite's -2.9% change, indicating a relatively strong performance [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Target Hospitality reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, but down from $0.29 per share a year ago, indicating a 100% earnings surprise [1] Financial Performance - The company achieved revenues of $83.69 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.48%, but down from $126.22 million year-over-year [2] - Over the last four quarters, Target Hospitality has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance - Target Hospitality shares have declined approximately 36.6% since the beginning of the year, contrasting with the S&P 500's decline of 1.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $75.37 million, and for the current fiscal year, it is -$0.12 on revenues of $242.65 million [7] - The trend of earnings estimate revisions is mixed, which could change following the recent earnings report [6] Industry Context - The Leisure and Recreation Services industry, to which Target Hospitality belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Revenue for the year ended December 31, 2024, was $386.3 million, a decrease of 31.4% compared to $563.6 million in 2023[6] - Net income for the year ended December 31, 2024, was $71.4 million, down 58.8% from $173.7 million in 2023[7] - Adjusted EBITDA for the year ended December 31, 2024, was $196.7 million, a decline of 42.9% from $344.2 million in 2023[7] - For Q4 2024, revenue was $83.7 million, down 33.6% from $126.2 million in Q4 2023[9] - Q4 2024 net income was $12.5 million, a decrease of 66.9% compared to $37.8 million in Q4 2023[10] - Total revenue for Q4 2024 was $83.688 million, a decrease of 33.7% compared to $126.220 million in Q4 2023[48] - Services income decreased to $60.227 million in Q4 2024 from $84.730 million in Q4 2023, representing a decline of 29.0%[48] - Specialty rental income fell to $23.461 million in Q4 2024, down 43.5% from $41.490 million in Q4 2023[48] - Gross profit for Q4 2024 was $37.031 million, a decrease of 40.5% compared to $62.239 million in Q4 2023[48] - Target Hospitality's total operating income for the year ended December 31, 2024, was $108.781 million, down from $240.606 million in 2023, indicating a significant decline in profitability[48] - Gross profit for the year 2024 was $178,179 thousand, compared to $313,324 thousand in 2023, indicating a decrease of 43.1%[54] Liquidity and Capital Structure - The company achieved approximately $366 million of total available liquidity and a net leverage ratio of 0.0x as of December 31, 2024[6] - The company executed approximately $33.4 million of stock repurchases during the year ended December 31, 2024[6] - The company reported a loss on extinguishment of debt of $2.279 million for the year ended December 31, 2024[48] - Total liabilities decreased to $304,684 thousand in 2024 from $317,046 thousand in 2023, a reduction of approximately 3.9%[50] - Total stockholders' equity attributable to Target Hospitality increased to $421,081 thousand in 2024 from $377,307 thousand in 2023, an increase of 11.6%[50] Cash Flow and Assets - Cash and cash equivalents rose significantly to $190,668 thousand in 2024, up from $103,929 thousand in 2023, marking an increase of 83.3%[52] - The company reported a net cash provided by operating activities of $151,675 thousand for 2024, slightly down from $156,801 thousand in 2023[52] - Discretionary cash flows for 2024 were $130,928 thousand, down from $142,583 thousand in 2023, reflecting a decline of 8.2%[56] - The company purchased specialty rental assets totaling $29,557 thousand in 2024, a decrease from $60,808 thousand in 2023[52] Future Outlook - The revised 2025 outlook projects total revenue between $265 million and $285 million, with adjusted EBITDA between $47 million and $57 million[23] - Adjusted EBITDA outlook for 2024 is expected to be a minimum of $100 million, reflecting management's confidence in operational performance despite current challenges[37] Contracts and Agreements - Target announced a multi-year Workforce Hub Contract expected to generate approximately $140 million of revenue through 2027[6] - A 5-year $246 million Dilley Contract was awarded, effective March 5, 2025, supporting U.S. government initiatives[6] Shareholder Information - The weighted average number of shares outstanding for Q4 2024 was 99,189,824, compared to 101,660,601 in Q4 2023[48]

Core Insights - Target Hospitality reported a significant decline in financial performance for the year ended December 31, 2024, with revenue of $386.3 million, down from $563.6 million in 2023, and net income of $71.4 million compared to $173.7 million in the previous year [5][6][12] - The company emphasized its operational flexibility and strategic growth initiatives, which have been crucial in navigating various business cycles and customer demand changes [3][4] - Target Hospitality secured a multi-year Workforce Hub Contract expected to generate approximately $140 million in revenue through 2027, indicating a focus on diversifying its contract portfolio [12][18] Financial and Operational Highlights - Full-year revenue for 2024 was $386.3 million, a decrease of 31.4% from $563.6 million in 2023 [5] - Net income for 2024 was $71.4 million, down 58.8% from $173.7 million in 2023 [6] - Adjusted EBITDA for 2024 was $196.7 million, a decline of 42.9% from $344.2 million in 2023 [6] - Average utilized beds decreased to 13,362 in 2024 from 14,463 in 2023, with utilization rates dropping to 83% from 90% [5] Fourth Quarter Summary - Revenue for Q4 2024 was $83.7 million, down 33.6% from $126.2 million in Q4 2023 [8] - Net income for Q4 2024 was $12.5 million, a decrease of 66.9% from $37.8 million in Q4 2023 [9] - Adjusted EBITDA for Q4 2024 was $41.1 million, down 39.2% from $67.7 million in Q4 2023 [9] Capital Management - The company achieved approximately $366 million in total available liquidity and maintained a net leverage ratio of 0.0x with zero net debt as of December 31, 2024 [12][13] - Target Hospitality executed approximately $33.4 million in stock repurchases during 2024, representing about 33.4% of the total share repurchase authorization [15] - On March 25, 2025, the company redeemed all outstanding 10.75% Senior Secured Notes due 2025, which is expected to save approximately $19.5 million in annual interest expenses [14] Business Update and Outlook - The company is positioned for growth with strong underlying business fundamentals and an efficient operating structure [16] - The recently announced Dilley Contract, valued at $246 million over five years, highlights the importance of Target's strategically located assets in supporting U.S. government initiatives [19] - Target's revised outlook for 2025 reflects the impact of the PCC contract termination and the new Dilley Contract, indicating a focus on government end-market growth opportunities [21]