Target Hospitality Corp.

Good morning, ladies and gentlemen, and welcome to the Target Hospitality Second Quarter 2024 Earnings Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on August 7, 2024. I would now like to turn the conference over to Mr. Mark Shook, Senior Vice President of Investor Relations. Please go ahead.

Thank you. Good morning, everyone, and welcome to Target Hospitality's second quarter 2024 earnings call. The press release we issued this morning outlining our second 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, August 7, 2024. 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. Finally, as previously announced, On March 25, 2024, Arrow Holdings, an affiliate of TDR Capital, proposed to acquire all outstanding shares of common stock of Target Hospitality it or affiliates do not already own. The Board of Directors of Target Hospitality has established a special committee of independent directors to evaluate this proposal. The special committee has retained their own independent outside financial and legal advisors and collectively they are continuing their review and evaluation of the proposal, as well as evaluating alternative proposals and other strategic alternatives. At this time, the Special Committee has made no decision with respect to the proposal. As a result, management will be unable to comment on the proposal or the evaluation process during today's call. Leading the call today will be Brad Archer, President and Chief Executive Officer, followed by Jason Vlasic, Chief Financial Officer and Chief Accounting Officer. After their prepared remarks, we will 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. Our second quarter performance continues to illustrate the benefits of our efficient operating structure and network capabilities. These elements support our ability to deliver strong financial results while remaining focused on delivering the premium hospitality solutions our customers demand. The scale and flexibility of our network has established a highly durable operating model that supports the consistent achievement of our financial goals and has established a materially enhanced financial position centered on the strength of our balance sheet. We are confident these fundamentals will continue to support strong operating margins through cycles, enabling us to support our world-class customers while continuing to pursue diversifying growth opportunities. Turning to our segment, In the government segment, our PCC community has entered its fourth year of service and is the longest serving influx care facility in the United States. Our operational commitment has solidified PCC as a cornerstone in supporting the government's critical domestic humanitarian aid mission, and we anticipate a normal course renewal of this contract in November of this year. Further, This established presence and consistent operational performance supports targets continued engagement with the U.S. government and other strategic partners to jointly pursue the creation of a third ICS site, not currently in the government's portfolio. We are pleased with continued dialogue regarding this opportunity. And as we have previously stated, we anticipate additional details regarding the third ICS site later in 2024. Regarding our HSS segment, we continue to benefit from consistent customer demand as our world-class customers find added value in our network flexibility and the range of premium solutions we provide. As an example, our unmatched capabilities support the expansion of existing customer relationships during the quarter, further illustrating the broad reach of our service offerings to meet a variety of customer needs. Additionally, we continue to take steps to realize incremental operational efficiencies across this segment and evaluate opportunities to strengthen margin contribution through enhanced network optimization. Our existing contract portfolio and commitment to network optimization continues to support impressive operating income and industry-leading cash conversion. Target's enhanced financial profile establishes the ideal position to continue evaluating a pipeline of attractive growth initiatives. We believe these naturally adjacent opportunities will complement our existing service offerings while establishing multiple avenues to expand Target's long-term growth opportunity set. Within the government end market, we remain engaged with multiple federal agencies on a variety of solutions they are seeking to implement along the U.S. southern border. As Target continues to evaluate these opportunities, we are actively seeking to utilize Target's existing strategically located South Texas assets to support these solutions. Further, we continue to pursue a growing pipeline of non-government growth initiatives. As we have previously discussed, these opportunities include large industrial projects throughout the U.S., including technology infrastructure, energy transition, and the increase in domestic rare earth development. Importantly, these opportunities remain centered on Target's full turnkey hospitality solutions, as well as expanding our value chain participation through individual elements of existing core competencies. As a reminder, the size of these growth opportunities inherently leads to longer sales cycles. While we are pleased with the continued dialogue on many of these opportunities, the timing and final outcomes are uncertain and can be difficult to predict. As we evaluate these initiatives, we remain committed to achieving defined objectives of our growth strategy. Our primary objective remains focused on diversifying our contract portfolio and broadening our customer reach while continuing to generate strong operating income and industry-leading cash conversion. In summary, we have established an enhanced financial position centered on the strength of our balance sheet and strong cash flow generation. These elements support our ability to provide a premier service offering to our customers while simultaneously delivering strong financial results and pursuing attractive growth opportunities. I'll now turn the call over to Jason to discuss our second quarter financial results in more detail. Thank you, Brad.