TH - Target Hospitality raises guidance for 2021

Target Hospitality ([[TH]] -1.0%) reports Q1 revenue of $45.5M (-36.5% Y/Y), beating consensus by $4.2M.Segment-wise revenue: Permian Basin $25.09M (-48.9% Y/Y); Bakken Basin $0.6M (-85.7% Y/Y); Government $18.04M (+8.7% Y/Y); TCPL Keystone $1.47M (+29.7% Y/Y); Others $0.29M (-52.5% Y/Y).Adj. gross margin: Permian Basin declined 1,300 bps to 42%; Bakken Basin was -92%; Government increased 700 bps to 77%; TCPL Keystone declined 1,600 bps to 14% and Others was -76%.Adj. EBITDA margin declined 1,006 bps to 35.1%.Metrics: Average daily rate was down 10% Y/Y to $70.01; Average utilized beds declined 30% to 6,861 & Utilization rate declined 2,500 bps to 51%.~72% of 2021 revenue under committed revenue contracts, with ~54% of 2021 revenue related to Government Services.The Co. executed a $118M minimum revenue contract that provides a suite of comprehensive service offerings assisting humanitarian aid efforts in support of the U.S. Government.Also, continued strengthening customer demand with sequential quarterly utilization increasing 800 bps in Q1 2021.As of May 24, 2021, reduced YTD 2021 outstanding borrowings on

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Target Hospitality raises guidance for 2021