Target Hospitality(TH) - 2025 Q1 - Quarterly Results

Financial Performance - Revenue for Q1 2025 was $69.9 million, a decrease of 34.5% compared to $106.7 million in Q1 2024[6] - Net loss for Q1 2025 was $6.5 million, compared to a net income of $20.4 million in Q1 2024[7] - Adjusted EBITDA for Q1 2025 was $21.6 million, down from $53.7 million in Q1 2024[7] - Operating income for Q1 2025 was a loss of $1.1 million, compared to an operating income of $30.4 million in Q1 2024[42] - Specialty rental income for Q1 2025 was $15.0 million, down 56.3% from $34.3 million in Q1 2024[42] - Adjusted EBITDA for Q1 2025 was $21.6 million, down 59.9% from $53.7 million in Q1 2024[49] - The company reported a loss on extinguishment of debt amounting to $2.4 million in Q1 2025[42] Liquidity and Capital Structure - Total available liquidity as of March 31, 2025, was approximately $169 million, with a net leverage ratio of 0.1x[11] - Cash and cash equivalents decreased to $34.5 million as of March 31, 2025, from $190.7 million at the end of 2024, a decline of 81.9%[44] - Total liabilities decreased to $147.3 million as of March 31, 2025, from $304.7 million at the end of 2024, a reduction of 51.7%[44] - The company redeemed all $181.4 million of Senior Secured Notes, expecting annual interest expense savings of approximately $19.5 million[10] Contracts and Future Projections - The multi-year Workforce Hub Contract is expected to generate approximately $140 million in revenue through 2027[6] - A 5-year $246 million Dilley Contract was awarded, effective March 5, 2025, reactivating assets in South Texas[6] - The company projects total revenue for 2025 to be between $265 million and $285 million, with Adjusted EBITDA between $47 million and $57 million[24] Operational Metrics - Average utilized beds decreased to 9,898 in Q1 2025 from 14,049 in Q1 2024, resulting in a utilization rate of 60% compared to 87%[5] - Capital expenditures for Q1 2025 were approximately $21.2 million, including $15.5 million in growth capital[9] - The company incurred transaction expenses of $2.8 million related to acquisition activities during Q1 2025[35] - Depreciation of specialty rental assets was $13.7 million in Q1 2025, slightly down from $14.8 million in Q1 2024[49]