Terran Orbital Corporation

Hello and welcome to today's Terran Orbital 3Q 2022 earnings call. My name is Elliot and I'll be coordinating your call today. If you would like to register a question during the presentation, you may do so by pressing star followed by one on your telephone keypad. I would now like to hand over to our host, Jonathan Seidman, Senior Vice President of Corporate Development. The floor is yours, please go ahead.

Thank you, Elliot. Good morning, everyone, and thank you for joining Taron Orbital's third quarter 2022 earnings call. With me this morning from Taron Orbital are Mark Bell, co-founder, chairman, chief executive officer, and Gary Hobart, chief financial officer. Mark will provide a business update and highlights for the quarter, and then Gary will review the quarterly results. Taron Orbital's 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 our current expectations and assumptions and, as a result, are subject to risk and uncertainties. Many factors could cause actual events to differ materially from forward-looking statements made on this call. For more information about these risks and uncertainties, please refer to 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 it over to Mark.

Thank you, John, and good morning. And thank you to everyone for joining our third quarter 2022 earnings conference call. I am thrilled to update you on our results and our latest operational highlights from the quarter, the macro environment for our solution, and the exciting $100 million investment and new strategic cooperation agreement with our partner Lockheed Martin. Then Guy will provide more detail on our financial results and strategic investment, and then we'll be happy to take your questions. For those of you joining for the first time, Terran Orbital is a global leader in satellite products, primarily serving the United States and allied aerospace and defense industries. Our pioneering work helped revolutionize the space industry by developing highly efficient, innovative, and cost-effective satellite solutions at a fraction of the cost and production time of the prior generations of satellites. For the third quarter, we are pleased to report a record $27.8 million in revenue, a 100% increase year over year, as we continue to execute on customer contracts. Our backlog was $198 million, and our pipeline consists of more than 140 identified opportunities, representing a value of approximately $15 billion of potential customer revenue as of September 30th. Our manufacturing execution continued to build efficiencies, and we remain on track to deliver all 10 SDA transport layer trans-zero satellites by the end of the year. SDA, or Space Development Agency, Terran Orbital has added over 140,000 square feet of manufacturing and office space at Irvine alone in the past 12 months, and we will continue to grow our headcount to over 440 skilled personnel as of September 30th. In addition, the further expansion of Terran Orbital's advanced manufacturing capabilities, which was originally planned to be located on Florida's Space Coast in partnership with Space Florida, has been accelerated and will now be in Irvine, California. As we look at the macro environment, demand continues to strengthen. Now more than ever, satellite solutions are critical to U.S. and allied defense, which depends on space-based assets for communication, missile tracking, and geospatial intelligence. As traditional large satellites have become vulnerable to the anti-satellite weapons of hostile powers, the U.S. has initiated the rapid transition to a resilient, distributed network that will consist of thousands of small satellites. These satellites, which are Taron Orville's particular area of expertise, can be quickly developed, deployed, and replaced to maintain the most advanced capabilities available. The geopolitical situation is dynamic. And just two weeks ago, Russian President Vladimir Putin escalated global tension by announcing that he considered U.S. satellites to be legitimate targets for Russian anti-satellite attacks. This threat highlights the urgency of the U.S. government's new satellite constellation initiative. Terran Orbital is proud to be working to deliver 52 satellites as part of the first two phases of the Space Development Agency transfer layer. In Congress, there continues to be broad bipartisan support for the National Defense Authorization Act. Both houses have advanced the bill, proposing significant increases in the 2023 defense budget and prioritizing research and development for space programs. Funds are earmarked for development of resilient space capabilities, including low Earth orbiting satellite systems, tactically responsive space programs, and the integration of commercial space capabilities. This brings me to our exciting announcement last week of an expanded partnership and collaboration with Lockheed Martin Corporation. We are thrilled to report that Lockheed Martin has invested $100 million in deterrent orbital in exchange for convertible notes and warrants, providing working capital, which enables us to dramatically ramp up our industrialized in-house production of cutting edge satellite solutions and accelerate our path towards profitability. Specifically, we plan to use these funds to acquire additional satellite assembly space, increase module production capabilities, and expand our advanced manufacturing abilities. Through a new strategic cooperation agreement, which now will run through 2035, we will also pursue new opportunities at Lockheed Martin, leveraging our increased manufacturing capacity and capabilities. The investment and expanded partnership are game-changing developments for our customers and business. With surging market demand for Terran Orbital satellite solutions, we now have sufficient capital to meet the needs of our customers who demand flight-proven satellites delivered at accelerated timelines and in greater quantities. Our investments in advanced manufacturing, vertical integration, and expanded capacity are occurring at an optimal time to expand Terran Orbital's leadership in this growing market. Our expanded partnership with Lockheed Martin is anchored by a shared vision of the potential of our small satellites to improve costs, capabilities, and resiliency of critical national security missions. We are humbled and honored by the trust Lockheed Martin, our nation's largest defense contractor, and a leader in space technologies, is demonstrating with this strategic investment. As we look beyond the third quarter, we expect to deliver the 10th SDA Transport Layer Tron Zero satellites to Lockheed Martin in the fourth quarter and to begin delivering Tronch One satellites in 2023. I commend our team who is working tirelessly to deliver the first 10 Tron Zero satellites on schedule. We anticipate our competitiveness for future awards to this critical defense constellation will be enhanced by our expected on-time delivery this year. Regarding Predisar, last week we announced a shift in direction. Terran Orbital no longer plans to pursue an investment in its own constellation. That said, Terran Orbital's specialized star and satellite technologies remain in high demand, and today we are engaged in discussions with potential partners. Under discussion are options which may provide radar and radio frequency solutions to commercial and U.S. government customers by building star and satellites and payloads as a product as opposed to a constellation. TerraNova remains committed to our U.S. government customers and is in discussion with them to determine the best way forward on existing Predasar contracts. This strategic shift to Predasar will require much less capital investment while still allowing us to continue to explore options to deliver unique radar and RF capabilities. We also plan to expand product and service offerings to address growing and unmet needs in adjacent markets to the company's core offerings, including advanced satellite payloads, Subassemblies and component offerings, mission operations, and other defense-related products. We will continue to pursue vertical integration, automation, and full in-house industrialization production in our facilities, enabling us to decrease our reliance on outside suppliers and enhance turnover paths toward profitability. Finally, we are more excited than ever about the growth opportunity before us, our competitiveness within the industry, and with our partner, Lockheed Martin, the resources at our disposal to execute on our game plan. In sum, our results for the quarter demonstrate our strong progress, and I could not be more proud of our team. With that, I now turn it over to Gary Hobart for an overview of our financials for the quarter. Gary?