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Target Hospitality Corp. (TH-2.92%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports total revenue of $95.2 million for the quarter, a decrease from $145.9 million in the same period the previous year. This decline is attributed to reduced revenue in the Government segment due to the termination of the South Texas Family Residential Center contract and lower revenue from the New Pecos Children's Center contract.
Cost of services for the quarter was $31.3 million, down from $34.0 million the previous year. The reduction is primarily due to operational efficiencies and reduced leasing costs in the Government segment.
Target Hospitality reported a gross profit of $45.2 million for the quarter, compared to $86.8 million the previous year, with the decline attributed to decreased revenue in the Government segment.
Selling, general, and administrative expenses decreased to $13.3 million from $15.3 million, primarily due to lower stock compensation expenses.
Net income for the quarter was $20.1 million, down from $45.6 million the previous year. The decrease is primarily due to lower revenue and changes in the estimated fair value of warrant liabilities.
Cash provided by operating activities was $121.1 million for the nine months ended September 30, 2024, compared to $118.5 million in the previous year.
The company has repurchased 2,424,440 shares of common stock for an aggregate price of approximately $22.3 million during the nine months ended September 30, 2024.
The filing also details the company's debt structure, including $181.4 million of 10.75% Senior Secured Notes due 2025.
Target Hospitality's Government segment revenue decreased by 49% for the quarter compared to the previous year, primarily due to the termination of the South Texas Family Residential Center contract and changes in the New Pecos Children's Center contract.
The HFS – South segment reported a slight increase in revenue to $38.0 million for the quarter, driven by increased customer activity.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Target Hospitality Corp. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.