Target Hospitality Corp.

Good day and welcome to the Target Hospitality fourth quarter and full year 2020 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Mark Shook. Please go ahead.

Good morning, everyone, and welcome to Target Hospitality's fourth quarter and full year 2020 earnings call. The press release we issued this morning outlining our fourth quarter and full year results can be found in the investor section of our website. In addition, a replay of this call will be archived on our website for a limited time. Please note the cautionary language regarding forward-looking statements contained in the press release. This same language applies to statements made on today's conference call. This call will contain time-sensitive information as well as forward-looking statements, which are only accurate as of today, March 30th, 2021. Target Hospitality expressly disclaims any obligation to update or amend the information contained in this conference call to reflect events or circumstances that may arise after today's date, except as required by applicable law. For a complete list of risks and uncertainties that may affect future performance, please refer to Target Hospitality's periodic filings with the SEC. We will discuss non-GAAP financial measures on today's call. Please refer to the table in our earnings release, posted in the investor section of our website, to find a reconciliation of non-GAAP financial measures referenced in today's call and their corresponding GAAP measures. Finally, on March 29, 2021, the Board of Directors of Target Hospitality and its special committee, comprised of independent directors, received a notice from Arrow Holdings, an affiliate of TDR Capital, withdrawing its previously announced proposal to acquire all of the outstanding shares of common stock of Target Hospitality, or affiliates do not already own. Consequently, the Special Committee and its own outside legal counsel and financial advisor have ceased their evaluation of the proposal. Leading the call today will be Brad Archer, President and Chief Executive Officer, followed by Eric T. Calamares, Executive Vice President and Chief Financial Officer. After their prepared remarks, we will be joined by Troy Schrenk, Chief Commercial Officer, and open the call for questions. I'll now turn the call over to our Chief Executive Officer, Brad Archer.

Thanks, Mark. Good morning, everyone, and thank you for joining us on the call today. In addition to discussing our 2020 performance, I will touch on the fourth quarter operational trends, as well as our continued priorities entering 2021. 2020 was a challenging year. The global pandemic created an unprecedented operating environment for Target and companies around the world. As economic outlook became increasingly uncertain, Target took aggressive actions to appropriately position the company to navigate this uncertain environment. We quickly aligned the business to match customer demand while maintaining a heightened focus on preserving our financial strength. These steps created a leaner and more efficient operating structure and appropriately positioned the business to take advantage of a more balanced market. Our commitment to cost containment initiatives and disciplined capital allocation provided the backdrop for producing strong 2020 financial results. We delivered adjusted EBITDA of 79 million and reduced our outstanding borrowings by 32 million during the year, all of which significantly enhanced our liquidity position and increased Target's operational flexibility. In addition, as the global pandemic quickly spread, we implemented a strict operational response plan. As COVID-19 cases continued to rise throughout the year, we remained focused on adhering to this plan. This focus resulted in no community spread across our network and no cases of COVID-19 impacting our business. Our plan was instrumental in keeping our employees and customers safe, healthy, and ready for work. Turning to the fourth quarter operational trends, We continue to see positive momentum in customer demand, which contributed to increases in occupancy and utilization during the quarter. The efficient operating structure we have created allowed us to meet increasing customer demand with little incremental cost, further supporting strong margins and continued cash generation. Our network scale, combined with our premium service offerings, is unmatched. These attributes enabled us to effectively increase our market share as customers continue to find added value in allocating labor to our premium network. Looking into 2021, we are encouraged with continued signs of economic recovery, anchored by global stimulus and increasing distribution of COVID-19 vaccines. We have continued to see improvements in in-market customer demand in 2021 and anticipate additional gradual increases in customer activity throughout the year. With the termination of TDR's proposal to take Target private, we look forward to continuing executing on Target's business strategy. Additionally, we are excited about the new partnership we announced yesterday with a leading national nonprofit organization supporting the U.S. government. This strategic partnership illustrates our consistent strategy of diversifying our cash flows with high-quality contracts that provide significant revenue visibility. This is an example of Target's ability to leverage its existing core competencies to diversify its end markets. We believe this positions Target to further develop strategic, long-term partnerships with government and nonprofit organizations. Target has a unique set of core competencies that translate across a variety of end markets. Our suite of premier service offerings strategically positions Target to evaluate other potential value-enhancing opportunities that will further diversify targets in markets. As we have said, the principles of any evaluation will center around identifying scalable opportunities while increasing revenue visibility. As we continue to evaluate other potential growth vectors, we will stay focused on these tenets and maintain our strong financial position. We have created a structurally sound business Our 2020 results are a testament to Target's ability to successfully navigate through a variety of business cycles. Target's premium network, significant scale, and operating structure sets us apart and provides the ability to match customer demand and simultaneously enhance our financial strength. I'll now turn the call over to Eric to discuss our fourth quarter and full year results in more detail. Thank you, Brad, and good morning.