Terran Orbital Corporation

Hello everyone and welcome to the Terran Orbital first quarter 2022 earnings call. My name is Victoria and I'll be coordinating your call today. If you'd like to ask a question during the presentation, you may do so by pressing star 1 on your telephone keypad. If you wish to withdraw your question, please press star 2. If you have joined us online, please press the red flag icon. When preparing to ask your question, please ensure that your line is unmuted locally. I'll now pass over to your host, Molly Burke, to begin. Please go ahead.

Thank you, Victoria. Good morning, everyone, and thank you for joining Taran Orbital's first quarter 2022 earnings call. With me this morning are Mark Bell, founder, chairman, and chief executive officer of Taran Orbital Corporation, and Gary Hobart, chief financial officer of Taran Orbital Corporation. Mark will provide a business update and highlights for the quarter, and then Gary will give an overview of our results. Our executive team will then be available to answer your questions. During today's call, we may make certain forward-looking statements. These statements are based on current expectations and assumptions, and as a result, are subject to risks and uncertainties. Many factors could cause actual events to differ materially from the forward-looking statements made on this call. For more information about these risks and uncertainties, please refer to the risk factors in the company's filings with the Securities and Exchange Commission, each of which can be found on our website www.terranorbital.com. Readers are cautioned not to put any undue reliance on forward-looking statements, and the company specifically disclaims any obligation to update the forward-looking statements that may be discussed during this call. Please also note that we will refer to certain non-GAAP financial information on today's call. You can find reconciliations of the non-GAAP financial measures with the most comparable GAAP measures in our earnings press release. With that, I will turn the call over to Mark.

Thank you, Marlo, and good morning, and thank you for joining our first quarter 2022 earning conference call. This was a very exciting quarter at Terran Orbital. In late March, we went public and began trading on the New York Stock Exchange. We signed a record $162 million in new contracts and ended the quarter with a record backlog of over $220 million. Let me first give you an overview of the company for those of you who are new. We pioneered the space industry's small satellite revolution. We have been delivering small satellites to a broad mix of customers for over a decade, including NASA, Lockheed Martin, the Department of Defense, the intelligence community, the European Space Agency, and numerous commercial customers. What we do matters. We deliver in months. We deliver in months for millions of dollars solutions that used to take years and billions. Our satellites provide higher functionality, persistence, and faster product delivery. We have a broad mission mix including defense, telejudication, climate monitoring, disaster response, and space exploration. Terran Orbital is taking an industrial approach to building satellites at a massive scale. We serve an industry that is forecasted to launch approximately 50,000 satellites over the next decade, creating an enormous opportunity for companies with advanced, scalable, vertically integrated production capabilities. We operate from more than 250,000 square feet of office and production space and have over 370 employees today. Additionally, Terran Orbital is developing a next-generation satellite constellation that that will feature software-defined synthetic aperture radar, also known as SAR, which enables our satellites to image the Earth both day and night and in all types of weather. While we are still in the early stages, we are developing the compelling and differentiated solutions, which we will believe generate high-margin data products and services. Like I said before, we've had a very successful and exciting first quarter. Here are some of our highlights from our first quarter so far. First, we have focused on delivering constellations to complete customers' missions. In Q1, we delivered two Cicero satellites to GeoOptics and a Centuri 5 satellite to Fleet Space Technology. Since the quarter ends, we delivered Capstone to Advanced Space in support of NASA's Lunar Gateway, plus three satellites to NASA for CPOD and the Pathfinder Technology Demonstrator 3 mission. And earlier this week, we announced that we've delivered the first of 10 satellite buses to Lockheed Martin in support of the Space Development Agency's transport layer, Tranche Zero. Credit goes to our production and engineering teams for successfully delivering our customer satellites on time. We have a total of six satellites scheduled for launch on the SpaceX Transporter 5 launch this month, with another satellite to launch from New Zealand to lunar orbit. The successful delivery of customer satellites is our top priority. and we couldn't be more proud of our team. Second, we signed a record number of contracts in the quarter, totaling $162 million. We were awarded the company's largest contract ever by Lockheed Martin to build 42 satellites in support of the SDA transport layer in Tranche 1. This was following on an award to manufacture 10 satellites, which we're currently building, and deliver that for Tranche 0. We also announced a contract to build an additional three microsatellites for Lockheed Martin. These and other awards during the quarter led to a tripling of our backlog to a more than record $220 million. Third, we continue to build out manufacturing and operational capacity. We signed a 10-year lease at a 60,000 square feet next to our existing production and assembly facility in Irvine, California. We continue to make important additions to our leadership team and our highly skilled workforce. We are growing our headcount by about 10% a month, and we ended the quarter with more than 330 employees. Fourth, we advanced the development of our Earth observation constellation. We received the National Reconnaissance Office, BAA, for demonstration of our commercial radar image stream capability. The NRO is the buyer of space remote sensing data, for the intelligence community and the Department of Defense. And we see this NRO award as a stepping stone to larger program opportunities. We continue to assemble and test our first two synthetic aperture radar satellites and recently completed a range testing of our advanced radar array. Finally, the unprovoked invasion of Ukraine has created both geopolitical instability and humanitarian crisis for the Ukrainian people. Our company is unified in our mission to support the United States as allies and the people of Ukraine. I'm particularly proud of our team's early response to the conflict and delivering geospatial intelligence to help the Ukrainian people defend their homeland. After that exciting first quarter, we're looking forward to continued growth through the rest of 2022. We expect our new production facility in Irvine, California to be fully operational within Q3 2022. As far as satellite deliveries, our $220 million backlog represents a variety of missions that we are excited to deliver in the coming quarters. And also, as to those we've already mentioned, we are on track to deliver NASA's Pathfinder 4, an optical Earth observation satellite for an international commercial partner, a technology demonstrator for NASA with a laser communications terminal designed by MIT's Lincoln Laboratory, and a satellite with six electro-optical payloads to support weather observation for the Air Force Research Laboratory. And finally, showcasing our successful transition to multi-satellite programs, we expect to deliver all 10 satellites for Tronch Zero for the Space Development Agency's transport layer in 2022 while commencing work on the next 42 satellites for Tronch One. With that, I will now turn it over to our Chief Financial Officer, Gary Hobart, for an overview on our financials for the quarter. Gary?