Target Hospitality Corp (NASDAQ:TH) Q2 2020 Earnings Conference Call - Final Transcript
Aug 10, 2020 • 09:00 am ET
Greetings and welcome to the Target Hospitality Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Mr. Mark Schuck, Senior Vice President of Investor Relations. Thank you. You may begin.
Thank you. Good morning, everyone, and welcome to Target Hospitality second quarter 2020 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 10, 2020. 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.
Leading the call today will be Brad Archer, President and Chief Executive Officer; followed by Eric T. Kalamaras, 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 will 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 second quarter performance, I will touch on our continued focus around capital discipline and cost reductions, as well as the recent trends we have seen from our energy end market customers.
In this challenging environment created by the COVID-19 pandemic and simultaneous shocks to global commodity markets, Target delivered solid second quarter results. We took decisive steps in reaction to what was a pronounced reduction in customer activity and utilization levels. These steps align Target with customer demand and supported continued strong cash generation with discretionary cash flow for the second quarter of approximately $15 million. As the COVID-19 pandemic accelerated in entering the second quarter, Target quickly implemented an operational response plan to ensure the health and well-being of our employees and customers. We have maintained this focus and as a result we have not had any cases of COVID-19 impact our business. We also took immediate action to appropriately position the business for what we anticipated to