Target Hospitality Corp.

Good day and welcome to the Target Hospitality third quarter 2023 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 a touch-tone phone. 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 Mark Schuch, Senior Vice President of Investor Relations. Please go ahead, sir.

Thank you. Good morning, everyone, and welcome to Target Hospitality's third quarter 2023 earnings call. The press release we issued this morning outlining our third 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 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, November 8, 2023. 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 will open the call for questions. I'll now send 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. Our strong third quarter results are a continuation of the positive momentum we have sustained over the past several years. Our meaningful scale creates a highly efficient operating platform, allowing us to appropriately match changes in customer demand while continuing to generate strong financial results. We continue to benefit from our materially expanded presence providing critical hospitality solutions to the U.S. government. This intentional focus has resulted in over 72% of third quarter revenue being derived from committed contracts by the United States government, with 73% of third quarter revenue having minimum revenue commitments. These elements continue to support impressive operating income and industry-leading cash conversion. This foundation has supported Target's ability to quickly respond to strategic growth opportunities while continuing to evaluate an expanding pipeline of value-enhancing growth initiatives. In our HFS South segment, we have remained focused on providing premium, full-service hospitality solutions to our world-class customers, many of whom have been customers for over a decade. These premium service offerings have supported strong customer demand and a more fully optimized network over the past year, which has created a more normalized pricing environment. Coupled with continued operational efficiency gains, we anticipate additional positive momentum in the coming quarters. In the government segment, our purpose-built portfolio of assets continue to serve the critical humanitarian aid mission they were designed to support, while exceeding the expectation of our partners and the U.S. government for nearly a decade. As an example, during the quarter, our Pecos Children's Center community seamlessly responded as designed to an increase in demand for our critical hospitality solutions. This validated the influx care facility concept, illustrating the government's essential need for adequate capacity to properly respond to dynamic changes in the number of unaccompanied children arriving in the U.S. Further, exemplifying Target's role as a proven and trusted provider supporting critical humanitarian missions. We are pleased to announce This week, our nonprofit partner was awarded a contract for the continuation of the ICF at our PCC community, solidifying its continued presence serving this critical humanitarian mission. The contract award is a continuation of the five-year indefinite delivery indefinite quantity contract, which was awarded to our nonprofit partner earlier this year. This contract provides the government the ability to seamlessly ensure continuity of the service offerings at PCC through 2028. This award solidifies PCC as one of the only influx care facilities in the United States and would represent eight years of continuous comprehensive humanitarian services. We look forward to continuing our long relationship supporting our partners humanitarian mission at the longest running purpose-built ICF in the United States. With this week's contract award, we are actively working to finalize Target's contract specifications with our nonprofit partner under our 11-year exclusivity agreement. We look forward to providing additional contract details, including specific economic terms, as they become available in the coming weeks. As we previously announced, the government has outlined their desire to expand their ICF network to accommodate up to 10,000 individuals requiring multiple new ICF communities. Target remains actively engaged and continues to build strategic partnerships to jointly pursue the creation of new ICF sites not currently in the government's portfolio. As the government has continually stated, additional humanitarian housing capacity is urgently needed to manage the increasing number of unaccompanied children arriving in the U.S. We believe Target is well positioned to pursue these opportunities, and we look forward to continuing to support the U.S. government in their humanitarian missions. In summary, we remain focused on sustaining the momentum we have created over the past several years. We have established a strong financial and operating platform to continue supporting our world-class customers while simultaneously pursuing the most robust growth pipeline we have seen in many years. I'll now turn the call over to Eric to discuss our third quarter financial results, recent balance sheet initiatives, and expanding strategic growth opportunities in more detail.