Target Hospitality Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Target Hospitality Corp. filed its Q1 2024 10-Q, detailing financial statement components and warrant valuation inputs.</b>

AI Summary

Target Hospitality Corp. (TH) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Target Hospitality Corp. filed a 10-Q report for the period ending March 31, 2024. The filing includes data related to fair value inputs for private placement warrants as of March 31, 2024, and December 31, 2023. Key financial statement components like Retained Earnings, Additional Paid-In Capital, and Accumulated Other Comprehensive Income are reported for March 31, 2024, December 31, 2023, and March 31, 2023. The company's Share Repurchase Program from 2020 is referenced with an adoption date of November 3, 2022. Treasury stock activity for common members is noted for the period January 1, 2024, to March 31, 2024.

Why It Matters

For investors and stakeholders tracking Target Hospitality Corp., this filing contains several important signals. This 10-Q provides an update on the company's financial position and key valuation metrics for its outstanding warrants, crucial for investors assessing the company's financial health and potential dilution. The detailed breakdown of equity components and share repurchase program information offers insights into capital management and shareholder returns.

Risk Assessment

Risk Level: low — Target Hospitality Corp. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags, indicating routine financial disclosure.

Analyst Insight

Monitor future filings for trends in warrant valuations and share repurchase activities to gauge capital allocation strategies.

Key Numbers

• 2024-03-31 — Reporting Period End Date (10-Q filing)
• 2023-12-31 — Prior Year End Date (Fair value inputs for warrants)
• 2023-03-31 — Prior Year Quarter End Date (Retained Earnings, APIC, AOCI)
• 2022-11-03 — Share Repurchase Program 2020 Plan Adoption Date (Company data)

Key Players & Entities

• Target Hospitality Corp. (company) — Filer of the 10-Q report
• Platinum Eagle Acquisition Corp. (company) — Former name of Target Hospitality Corp.

FAQ

Industry Context

Target Hospitality Corp. operates in the hospitality sector, specifically providing workforce and government solutions, often involving temporary housing and related services.

Regulatory Implications

As a publicly traded company, Target Hospitality Corp. is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) detailing its financial condition.

What Investors Should Do

1. Review the full 10-Q for detailed financial statements and management's discussion and analysis.
2. Analyze the fair value inputs for private placement warrants to understand their impact on the balance sheet.
3. Track the company's share repurchase program activity in subsequent filings.

Key Dates

• 2024-03-31: Quarterly Period End — Financial data reported in the 10-Q
• 2024-05-08: Filing Date — Date the 10-Q was submitted to the SEC

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides an update on the company's financial performance and position between annual reports.)

Private Placement Warrants

Warrants issued in a private offering, often to institutional investors or founders. (Their valuation inputs (share price, volatility, interest rates) are critical for understanding potential dilution and financial reporting.)

Retained Earnings

The cumulative amount of net income of a corporation that has not been distributed to its shareholders as dividends. (Indicates the company's profitability over time and its ability to reinvest earnings.)

Year-Over-Year Comparison

This filing represents the quarterly update for March 31, 2024, providing the latest financial disclosures compared to previous periods.

Key Financial Figures

• $0.0001 — is registered Common stock, par value $0.0001 per share TH NASDAQ Capital Market

Filing Documents

• th-20240331x10q.htm (10-Q) — 1842KB
• th-20240331xex31d1.htm (EX-31.1) — 16KB
• th-20240331xex31d2.htm (EX-31.2) — 16KB
• th-20240331xex32d1.htm (EX-32.1) — 7KB
• th-20240331xex32d2.htm (EX-32.2) — 7KB
• 0001558370-24-007326.txt (&nbsp;) — 9085KB
• th-20240331.xsd (EX-101.SCH) — 61KB
• th-20240331_cal.xml (EX-101.CAL) — 72KB
• th-20240331_def.xml (EX-101.DEF) — 339KB
• th-20240331_lab.xml (EX-101.LAB) — 513KB
• th-20240331_pre.xml (EX-101.PRE) — 486KB
• th-20240331x10q_htm.xml (XML) — 1573KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 5

Financial Statements

Item 1. Financial Statements 5 Consolidated Balance Sheets 5 Unaudited Consolidated Statements of Comprehensive Income 6 Unaudited Consolidated Statements of Changes in Stockholders' Equity 7 Unaudited Consolidated Statements of Cash Flows 8 Notes to Unaudited Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 49

Controls and Procedures

Item 4. Controls and Procedures 49

— OTHER INFORMATION

PART II — OTHER INFORMATION 49

Legal Proceedings

Item 1. Legal Proceedings 49

Risk Factors

Item 1A. Risk Factors 50

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 50

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 50

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 50

Other Information

Item 5. Other Information 50

Exhibits

Item 6. Exhibits 51

SIGNATURES

SIGNATURES 52 Table of Contents UNAUDITED CONSOLIDATED F INANCIAL STATEMENTS Target Hospitality Corp. Unaudited Consolidated Financial Statements as of March 31, 2024 and December 31, 2023 and for the three months ended March 31, 2024 and 2023 Table of Contents Target Hospitality Corp. Unaudited Consolid ated Financial Statements Contents Consolidated Financial Statements Consolidated Balance Sheets 5 Unaudited Consolidated Statements of Comprehensive Income 6 Unaudited Consolidated Statements of Changes in Stockholders' Equity 7 Unaudited Consolidated Statements of Cash Flows 8 Notes to Unaudited Consolidated Financial Statements 9 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Target Hospitality Corp. Consolidated Balance Sheets ($ in thousands) March 31, December 31, 2024 2023 Assets (Unaudited) Current assets: Cash and cash equivalents $ 124,302 $ 103,929 Accounts receivable, less allowance for credit losses of $ 593 and $ 550 , respectively 53,839 67,092 Prepaid expenses and other assets 7,927 9,479 Total current assets 186,068 180,500 Specialty rental assets, net 342,985 349,064 Other property, plant and equipment, net 35,102 34,631 Operating lease right-of-use assets, net 16,495 19,698 Goodwill 41,038 41,038 Other intangible assets, net 62,919 66,282 Deferred financing costs revolver, net 2,328 2,479 Other non-current assets 234 661 Total assets $ 687,169 $ 694,353 Liabilities Current liabilities: Accounts payable $ 17,275 $ 20,926 Accrued liabilities 35,932 33,652 Deferred revenue and customer deposits 1,794 1,794 Current portion of operating lease obligations 10,240 11,914 Current portion of finance lease and other financing obligations (Note 8) 1,574 1,369 Current warrant liabilities — 675 Total current liabilities 66,815 70,330 Other liabilities: Long-term debt (Note 8): Principal amount 181,446 181,446 Less: unamortized original issue discount ( 2,202 ) ( 2,619 ) Less: unamortized term loan deferred financing costs ( 617 ) ( 734 ) Long-term debt, net 178,627 178,093 Long-term finance lease and other financing obligations 1,270 1,024 Long-term operating lease obligations 7,025 8,426 Deferred revenue and customer deposits 3,227 3,675 Deferred tax liability 52,200 53,074 Asset retirement obligations 2,471 2,424 Total liabilities 311,635 317,046 Commitments and contingencies (Note 12) Stockholders' equity: Common Stock, $ 0.0001 par, 400,000,000 authorized, 111,810,528 issued and 100,105,423 outstanding as of March 31, 2024 and 111,091

View Full Filing

View this 10-Q filing on SEC EDGAR