Target Hospitality Files 10-Q, Discloses Warrant Valuation Inputs

TL;DR

Target Hospitality's Q2 10-Q is in, showing warrant valuation details. No major surprises yet.

AI Summary

Target Hospitality Corp. filed its 10-Q for the period ending June 30, 2024. The company, formerly known as Platinum Eagle Acquisition Corp., reported financial data for its fiscal year ending December 31. Key financial inputs related to private placement warrants, such as share price, risk-free interest rate, and price volatility, were disclosed as of June 30, 2024.

Why It Matters

This filing provides insight into the financial instruments and valuation methods used by Target Hospitality, which can affect the company's reported financial health and stock valuation.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report and does not indicate any immediate or significant new risks.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the financial data presented is as of this date.)
• 20240807 — Filing Date (Shows when the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Target Hospitality Corp. (company) — Filer of the 10-Q
• Platinum Eagle Acquisition Corp. (company) — Former name of Target Hospitality Corp.
• 20240630 (date) — End of the reporting period
• 20240807 (date) — Filing date

FAQ

Key Financial Figures

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

Filing Documents

• th-20240630x10q.htm (10-Q) — 2341KB
• th-20240630xex31d1.htm (EX-31.1) — 16KB
• th-20240630xex31d2.htm (EX-31.2) — 16KB
• th-20240630xex32d1.htm (EX-32.1) — 7KB
• th-20240630xex32d2.htm (EX-32.2) — 8KB
• 0001558370-24-011323.txt ( ) — 10254KB
• th-20240630.xsd (EX-101.SCH) — 62KB
• th-20240630_cal.xml (EX-101.CAL) — 76KB
• th-20240630_def.xml (EX-101.DEF) — 338KB
• th-20240630_lab.xml (EX-101.LAB) — 517KB
• th-20240630_pre.xml (EX-101.PRE) — 487KB
• th-20240630x10q_htm.xml (XML) — 1908KB

— 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 53

Controls and Procedures

Item 4. Controls and Procedures 53

— OTHER INFORMATION

PART II — OTHER INFORMATION 53

Legal Proceedings

Item 1. Legal Proceedings 53

Risk Factors

Item 1A. Risk Factors 54

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 54

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 54

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 54

Other Information

Item 5. Other Information 54

Exhibits

Item 6. Exhibits 55

SIGNATURES

SIGNATURES 56 Table of Contents UNAUDITED CONSOLIDATED F INANCIAL STATEMENTS Target Hospitality Corp. Unaudited Consolidated Financial Statements as of June 30, 2024 and December 31, 2023 and for the six months ended June 30, 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) June 30, December 31, 2024 2023 Assets (Unaudited) Current assets: Cash and cash equivalents $ 154,296 $ 103,929 Accounts receivable, less allowance for credit losses of $ 624 and $ 550 , respectively 48,737 67,092 Prepaid expenses and other assets 5,797 9,479 Total current assets 208,830 180,500 Specialty rental assets, net 336,440 349,064 Other property, plant and equipment, net 34,885 34,631 Operating lease right-of-use assets, net 14,127 19,698 Goodwill 41,038 41,038 Other intangible assets, net 59,552 66,282 Deferred financing costs revolver, net 2,177 2,479 Other non-current assets — 661 Total assets $ 697,049 $ 694,353 Liabilities Current liabilities: Accounts payable $ 17,541 $ 20,926 Accrued liabilities 25,758 33,652 Deferred revenue and customer deposits 2,721 1,794 Current portion of operating lease obligations 8,791 11,914 Current portion of finance lease and other financing obligations (Note 8) 1,518 1,369 Current warrant liabilities — 675 Current portion of long-term debt, net (Note 8) 179,177 — Total current liabilities 235,506 70,330 Other liabilities: Long-term debt (Note 8): Principal amount — 181,446 Less: unamortized original issue discount — ( 2,619 ) Less: unamortized term loan deferred financing costs — ( 734 ) Long-term debt, net — 178,093 Long-term finance lease and other financing obligations 1,106 1,024 Long-term operating lease obligations 6,062 8,426 Deferred revenue and customer deposits 535 3,675 Deferred tax liability 54,173 53,074 Asset retirement obligations 2,501 2,424 Total liabilities 299,883 317,046 Commitments and contingencies (Note 12) Stockholders' equity: Common Stock, $ 0.0001 par, 400,000,000 authorized, 112,135,786 issued and 100,430,681 outstanding as o

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