TH - Target Hospitality gains 12% pre market on raising FY22 outlook by 53%

• Target Hospitality ( NASDAQ: TH ) shares are surging 12% pre market on raising FY22 outlook by 53%.
• The company raises FY22 revenue guidance from the prior range of $325M - $335M to $500M -$510M vs consensus of $333.13M .
• FY22 Adj EBIITDA outlook raised from $125M - $135M to $295M - $305M.
• Outlook for total capital spending increased to $190M to $200M from $12M - $17M , excluding acquisitions.
• FY22 Interest expense expected between $33M and 35M; Effective corporate cash tax rate between 13% and 15% and Discretionary Cash Flow between $320M and $330M.
• 2Q22 revenue is expected between $102M to $107M vs consensus of $82.65M ; Adjusted EBITDA between $50M and $55M.
• The increase in guidance is primarily related to the significantly expanded and enhanced lease and services agreement ("Expanded Humanitarian Contract") supporting domestic humanitarian aid efforts, previously announced on July 6, 2022 .
• The company's ~99% anticipated 2022 revenue is under contract with approximately 73% of contracted revenue having minimum revenue commitments.

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