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Target Hospitality Corp. (TH-4.00%) has submitted its annual report on Form 10-K filing for the fiscal year ended December 31, 2024.
The filing reveals that Target Hospitality generated total revenues of $386.3 million, a decrease from $563.6 million in the previous year. This decline was primarily due to lower revenues in the Government segment, which were affected by the termination of the South Texas Family Residential Center Contract and changes in the Pecos Community Contract.
The company reported a net income of $71.4 million for the year, compared to $173.7 million in the previous year. The decrease in net income was attributed to reduced revenues and changes in the fair value of warrant liabilities.
Adjusted EBITDA for the year was $196.7 million, down from $344.2 million in the prior year. This decrease was primarily driven by lower non-cash revenue amortization and reduced minimum lease revenue in the Government segment.
Target Hospitality's cash flows from operating activities were $151.7 million, a slight decrease from $156.8 million in the previous year. The decrease was mainly due to higher cash paid for income taxes and lower cash collections.
Capital expenditures for the year amounted to $32.5 million, with a focus on maintenance capital expenditures. This represented a decrease from $65.6 million in the previous year, reflecting reduced growth capital expenditures.
The company ended the year with $190.7 million in cash and cash equivalents, an increase from $103.9 million at the end of the previous year, supported by positive cash flows from operations.
Target Hospitality's ABL Facility had an unused borrowing capacity of $175 million as of December 31, 2024, providing liquidity to support future operations and growth initiatives.
The filing also notes that the company repurchased 3.9 million shares of common stock during the year for approximately $33.4 million as part of its share repurchase program.
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. annual 10-K report dated March 26, 2025. To report an error, please email earnings@qz.com.