Target Hospitality Corp. (NASDAQ: TH), the largest provider of vertically-integrated specialty hospitality accommodations with premium catering and value-added hospitality services in the U.S., today provided that Target has significant flexibility to quickly adapt operationally to changing market conditions in order to maintain its strong capital structure and cash flow generating capabilities.

“In addition to our strong balance sheet, we have significant cash flow generating capabilities that will serve to further enhance our already solid financial position. Further, our highly discretionary capital expenditures and meaningful variable costs allow us to maintain our cash flow generating capabilities in current market conditions. We are focused on taking decisive action to defend our cash flow generation in this environment and over the long-term,” stated Brad Archer, President and Chief Executive Officer.

Balance Sheet and Liquidity:

• The company’s $125 million asset-based credit facility, maturing in September 2023, has no immediate covenants, liquidity, or minimum credit rating requirements. The facility is based on annual appraised book value only.

• As of September 30, 2019, the Company had liquidity of approximately $59 million, with net leverage ratio of 2.4 times as defined by its credit facility.

• The Company’s long-term debt has no near-term maturities and primarily consists of $340 million in Senior Secured Notes due 2024.

• The Company has significant cash flow generating capabilities and may adjust or defer its capital spending to ensure it continues to produce substantial discretionary cash flow through 2020 and over the long-term.

Fourth Quarter and Full Year 2019 Earnings:

As previously announced, the Company will release its fourth quarter and full year 2019 financial results after the market closes on Wednesday, March 11, 2020. The Company has also scheduled a conference call for Thursday, March 12, 2020 at 8:00 a.m. Central Time (9:00 am Eastern Time) to discuss the results.