Target Hospitality Corp.

Good morning and welcome to the Target Hospitality first quarter 2022 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal conference specialists 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. And to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mr. Mark Shuck, Senior Vice President of Investor Relations. Please go ahead, sir.

Thank you, and good morning, everyone. Welcome to Target Hospitality's first quarter 2022 earnings call. The press release we issued this morning outlining our first quarter 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 this press release. The 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, May 10, 2022. 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 tables 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. 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'll 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. Target's first quarter results continue to exemplify the strength of Target's operating position, which continues to benefit from positive momentum in customer activity across Target's premier network of communities. Target's top-tier customers continue to find added value in the size and scale of our network, which provides premium hospitality solutions and unmatched logistical flexibility for their labor allocation requirements. Our superior operating capabilities and world-class network have supported a 65% increase in customer demand since the first quarter of 2021. Additionally, the intrinsic value of Target's network has supported an over 90% customer renewal rate for more than six years. These strong demand fundamentals and superior operating capabilities allow Target to efficiently respond to increasing customer demand. while generating top-tier operating margins and strong financial results. Target's HFS segment continues to benefit from its premium network and world-class service offering. These elements have supported continued strength in customer activity, resulting in six consecutive quarterly increases in HFS South customer demand. Additionally, the strong demand fundamentals and Target's strategically located communities supported the reopening of previously idled assets during the first quarter of 2022. We anticipate consistent increases in customer activity throughout 2022 and are well positioned to benefit from this positive momentum across our network. Additionally, Target continues to benefit from its increased concentration of critical humanitarian support services it provides to the United States government. Target's government segment represented over 58% of first quarter 2022 revenue, supported by fully committed minimum revenue contracts backed by the U.S. government. This is a clear illustration of our commitment to diversify and expand targets in markets while high-grading counterparty exposure and contract structure. These accomplishments have allowed Target to materially enhance its financial strength. while simultaneously diversifying its business mix and establishing a foundation to continue pursuing strategic growth initiatives. These growth initiatives are focused on broadening targets and markets while significantly expanding our long-term growth opportunities. Target will pursue these initiatives while also remaining focused on expanding the critical support services it provides to the United States government. Target has intentionally established itself as the premier provider of permanent hospitality solutions for the U.S. government's long-term domestic humanitarian aid missions. Target's premier and comprehensive service offering is viewed favorably by the U.S. government, and our scale and operational capabilities are unmatched in North America. As it relates to our latest government service contract, which began in March of last year, we continue to have active discussions regarding the extension of this contract, These discussions include the potential for a meaningful increase in contract scope due to continued strong demand of Target's critical service offering. Additionally, the U.S. government has recently outlined its intention to expand capacity and enhance capabilities to address its ongoing domestic humanitarian aid missions. As part of the U.S. government's plan, there has been a fiscal year 2022 annual appropriation of approximately $8.8 billion. This annual appropriation illustrates the magnitude of the humanitarian aid mission and the volume of resources needed to appropriately respond. We continue to work diligently with our customer on finalizing contract terms and are highly confident in the successful outcome to these contract discussions. We are encouraged by the sustained momentum experienced in the first quarter of 2022 and believe we are well positioned to continue benefiting from our strategic position as North America's leading provider of comprehensive hospitality solutions and value-added services. I'll now turn the call over to Eric to discuss our first quarter financial results and ongoing growth initiatives in more detail. Thank you, Brad.