Target Hospitality(US:TH) Prnewswireยท2025-03-26 10:45Core 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]