Target Hospitality Corp. · NASDAQ:TH
Target Hospitality — Investor Presentation (November 2021)
22 slides from Target Hospitality's investor presentation, November 2021
Slide 1: Investor Presentation
Investor Presentation November 2021
Slide 2: Disclaimer
Disclaimer Cautionary Statement Regarding Forward-Looking Statements This presentation contains statements reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended as “forward-looking statements.” You can identify these statements by the fact tha
Slide 3: Target Hospitality (NASDAQ: TH)
Target Hospitality (NASDAQ: TH) North America’s Largest Provider of Comprehensive Hospitality Key Differentiating Attributes Solutions TH operates North America’s largest network of geographically relocatable ✔ Strategically located network creates scale and assets with 14,697 average available be
Slide 4: Differentiated & Compelling Investment Opportunity
Differentiated & Compelling Investment Opportunity Leading provider of full turnkey vertically integrated modular accommodations and value-added hospitality services Strong presence in core end markets providing critical service offerings to a diversified customer base through a unique value enhanci
Slide 5: Diversified Value-Enhancing Business Model
Diversified Value-Enhancing Business Model Strategically Focused on Enhancing Value through a Balanced Portfolio of Service Offerings Premier Network Creating Value with Existing Core Competencies Network size and scale provide efficient operating structure Utilizing existing capabilities to ident
Slide 6: Proven Track Record of Business Transformation
Proven Track Record of Business Transformation 2014 2019 2021 North America's market leading provider of full turnkey Business Profile Provider of turnkey specialty rental units to Largest provider of vertically-integrated hospitality hospitality solutions, including facilities maintenance niche cus
Slide 7: Contract Structure Drives Long-Term Revenue Visibility
Contract Structure Drives Long-Term Revenue Visibility - Multiyear Contracts Provide Greater Visibility on Long-Term Revenue and Cash Flow - - Attractive Exposure to Multiple End Markets Supports Diversified Revenue - - Weighted Average Contract Length ~4 Years - Hospitality and Facilities Services
Slide 8: Providing Critical Support of Humanitarian Aid Efforts
Providing Critical Support of Humanitarian Aid Efforts Serving Vulnerable People in Crisis Situations Trusted provider of comprehensive hospitality solutions across three Presidential administrations Providing premium accommodation service offerings to the U.S. Government since 2014 Reliable Target’
Slide 9: Multiple Value Enhancing Growth Levers
Multiple Value Enhancing Growth Levers Strength in Core Offerings Underpins Multiple Avenues to Accelerate Growth Strategic Acquisitions Extension in New Infrastructure Adjacent Markets Operational Services Organic Expansion Efficiency with Flexible Opportunities Business Model Accelerate organic gr
Slide 10: Financial Strength
Financial Update Financial Strength Investor Presentation | 10
Slide 11: Strong Third Quarter 2021 Performance
Strong Third Quarter 2021 Performance Significant Cash Flows Strengthens Operational Flexibility & Supports Value Creation Third Quarter 2021 Highlights Consistently Enhancing Financial Strength Generated revenue of $89 million and Adjusted EBITDA(1) of Improved net leverage ratio by 52% since t
Slide 12: Strategic Principles Support Positive Momentum
Strategic Principles Support Positive Momentum - Continued Strength in Core Business and Customer Demand - - Diversification of End-Markets Provides Strong Revenue Visibility - - Generating Meaningful Discretionary Cash Flow - Estimated Full Year 2021 Revenue 2021 Financial Outlook(1) Approximatel
Slide 13: Enhanced Balance Sheet and Liquidity
Enhanced Balance Sheet and Liquidity Liquidity of +$155 million(1) TH Capitalization and Liquidity $340(2) million of 9.5% senior secured notes, maturing $ in millions 9/30/2021 March 2024 Cash and Cash Equivalents $ 30.6 ABL Facility - $125 million capacity - Zero outstanding borrowings on $1
Slide 14: Efficient Capital Deployment Drives Returns
Efficient Capital Deployment Drives Returns Target’s efficient operating structure and unique capabilities, create a highly scalable business model, providing the foundation to meet increasing customer demand with little incremental capital High quality contracts support meaningful cash generati
Slide 15: Top Tier Financial Metrics Support Premium Valuation
Top Tier Financial Metrics Support Premium Valuation - Achieving Best-in-Class Operating Margins - - Generating Significant Discretionary Cash Flow - - Margin Profile, Cash Flow and Diversified Customer Base Supports Multiple Expansion - LTM Adjusted Gross Profit Margin(1) Current EV to Adjusted EBI
Slide 16: Appendix
Appendix Appendix Investor Presentation | 16
Slide 17: Consistent and Predictable Revenue Visibility
Consistent and Predictable Revenue Visibility +80% of Historical Quarterly Revenue is Committed or Includes Exclusivity - Contract structure, including exclusivity, provide consistent and predictable quarterly revenue - - Emphasizing importance of consistent customer renewal rate of +90% - 2019 2020
Slide 18: All Inclusive Service Offerings
All Inclusive Service Offerings Full Turnkey Culinary Technological Services Full Turnkey Maintenance Supply Chain Services Services Services Full Turnkey Facilities Full Turnkey Janitorial Full Turnkey Transportation Site Services Management Services Services Safety and Security Services Waste Mana
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations Target Hospitality Corp. Reconciliation of Net Income to EBITDA, Adjusted EBITDA ($ in thousands) For the Three Months Ended For the Thirty-Three Months Ended September 30, September 30, 2021 2021 2020 (Restated) Total Revenue $ 89,169 $ 48,263 $ 755,891 Net income (loss) $
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations Target Hospitality Corp. Reconciliation of Net cash provided by operating activities to Discretionary cash flow ($ in thousands) For the Three Months Ended For the Nine Months Ended For the Twelve Months Ended September 30, September 30, September 30, 2021 2021 2020 2021 202
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Target Hospitality Corp. Reconciliation of Gross Profit to Adjusted gross profit and Adjusted gross profit margin ($ in thousands) For the Twelve Months Ended September 30, 2021 Total Revenue $ 261,257 Gross Profit $ 82,234 Adjustments: Depreciation of specialty rental asset
Slide 22: Investor Presentation
5) TARGET’ HOSPITALITY 5-) TARGET HOSPITALITY investor Presentation | 22
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