Target Hospitality backs FY23 revenue view $550M-$580M, consensus $553.93M

Backs FY23 adjusted EBITDA view $346M-$365M. Sees FY23 capital spending $30M-$35M. The company said, “Target has remained focused on optimizing its financial position, centered on materially strengthening its balance sheet to maximize financial flexibility. The Expanded Credit Facility and successful completion of the Exchange Offer have materially advanced this initiative and significantly increased Target’s liquidity profile. Target continues to meaningfully progress towards achieving a net-debt free balance sheet and anticipates total available liquidity to exceed $315 million by year-end 2023. Coupled with Target’s high degree of revenue visibility and continued strong cash generation, Target’s robust liquidity profile enables the Company to continue actively evaluating an expanding pipeline of strategic growth opportunities and seeks to allocate over $500 million of net growth capital through 2027. These opportunities encompass Target’s existing full-turnkey hospitality solutions, as well as broadening Target’s value chain participation through individual elements of existing core competencies. As a result of the size and scale of these opportunities, there are inherently longer sales cycles prior to official contract award and announcement. While final outcomes remain uncertain, Target remains pleased with the continued progress of ongoing discussions involving a number of these opportunities.”