Target Hospitality Corp. announced its third-quarter 2024 financial results, reporting revenue of $95.2 million, a decrease from $145.9 million in the same period of 2023. Net income for the quarter was $20.1 million, down from $45.6 million year-over-year, with diluted income per share at $0.20 compared to $0.43 in Q3 2023. Adjusted EBITDA also saw a decline, reaching $49.7 million from $95.0 million in the prior year.
These decreases were primarily attributed to the full amortization of infrastructure enhancement revenue associated with the Pecos Children's Center (PCC) community as of November 2023, and lower PCC minimum lease and variable services revenue. The previously announced termination of the South Texas Family Residential Center (STFRC) contract, effective August 9, 2024, also contributed to the year-over-year declines. Despite these impacts, the company maintained a strong financial position.
As of September 30, 2024, Target Hospitality reported $178 million in cash and cash equivalents and $353 million in total available liquidity, with no outstanding borrowings on its $175 million credit facility, resulting in a net leverage ratio of 0.0 times. The company reiterated its full-year 2024 outlook, projecting total revenue between $375 million and $385 million and Adjusted EBITDA between $184 million and $190 million. Management also anticipated a normal course renewal of the PCC contract in the coming weeks, which serves a critical humanitarian aid mission.
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