Terran Orbital Corporation

Hello, thank you for joining us and welcome to today's Terran Orbital fourth quarter and full year 2022 earnings call. My name is Leo and I'll be your moderator for today. You'll have an opportunity to ask the management team at the question at the end of the presentation. I'll now hand over to your host today, John Siegman, Senior Vice President of Corporate Development. John, please go ahead.

Thank you, Leo. Good morning, everyone. And thank you for joining Terran Orbital's year-end 2022 earnings call. With me this morning from Terran Orbital are Mark Bell, co-founder, chairman, chief and executive officer, and Gary Hobart, chief financial officer. Mark will provide a business update and highlights for the quarter and full year in 2022. And then Gary will review the quarterly and annual results. Terran Orbital's executive team will be then 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 obligations 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 these 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 welcome and thank you to everyone for joining our year-end 2022 earnings conference call. 2022 was an exciting and pivotal year for Terran Orbital. In March, we became a publicly traded company and started trading on the New York Stock Exchange under the symbol LLAP, Live Long and Prosper. We built backlog, capacity, and revenues throughout 2022. We are well on our way to achieving the vision of industrializing small space satellite production. We made extraordinary progress in a very short time. Today, I am thrilled to review the highlights from 2022 and provide a business update, including the company's record $2.4 billion contract from Rivada Space Networks, which we announced last month. Gary will provide more detail on our financial results and then we're happy to take all your questions. Starting with a recap of Terran Orbital's achievements from 2022, in March our company became public via merger with Tailwind 2 Acquisition Corp. during challenging capital market conditions. Since then, our revenue has grown by 130% year-over-year to $94.2 million. Our backlog rose a similar percentage over the last 12 months, from under $74 million to over $170 million as of December 31st. Our backlog includes over 60 satellites and various stages of completion, which we expect to deliver in the coming quarters. Over the last year, escalating geopolitical tensions and new space technology advances drove unprecedented and urgent demand for low Earth orbit satellite solutions beyond even our earlier expectations. Our team has moved decisively and strategically to expand and vertically integrate our production facilities. I am delighted to report to you that our strategy is paying off. We delivered a record 19 satellites in 2022. Our investments in facilities, workforce, and automation are creating an industry-leading production base in Irvine, California facilities. And in October 2022, we were thrilled to complete a new $100 million investment and extension of our strategic cooperation agreement to the year 2035 with our partner, Lockheed Martin. Our steady execution was demonstrated by our early delivery of the 10 satellites to Lockheed Martin in support of the Space Development Agency's Transport Layer Tranche Zero. I couldn't be any more prouder of our Terran orbital team's performance in delivering this important customer commitment. As discussed on every earnings call since our listing, meeting our commitments to Lockheed Martin, the Space Development Agency, and our nation's warfighters on this critical program was a top goal for our team in 2022 and continues into 2023. I thank the entire production, program, and engineering teams for working hard to accomplish this goal and serve our customers' missions, which we believe differentiates our performance relative to our competitors. As an established small satellite manufacturer with a first mover advantage, we are expanding our competitive moat. Accordingly, we are landing bigger and even record-shattering new contracts. For example, the Space Development Agency has awarded the Lockheed Martin turnover team two successive tranches of the SDA's transfer layer. The first award was for 10 satellites, which was awarded in early 2020, which we just completed. The second tranche one award is for 42 satellites and was awarded just 12 months ago. We are executing on this tranche and expect to begin deliveries later this year. We expect the Space Development Agency to award the transport layer tranche two contracts later this year as well. And just last month we received our largest contract ever. We were awarded a $2.4 billion contract to deliver 300 satellites, and ground support to Rivada Space Network. Rivada also has the option to purchase an additional 300 satellites as well. This advanced constellation will utilize the most advanced space technologies available to a low Earth orbit proliferated constellation and provide cyber secure communications and data services for the protection of the U.S. and its allies in Europe. Terran Orbital offered Ravada both manufacturing heft to meet the critical mission and regulatory time stones and a more capable satellite design and architecture to provide mission assurance. To solidify our leadership position in small satellite manufacturing and support diverse customers such as the Space Development Agency, Ravada and others, we are pleased to announce further progress in expanding our capacity. Today, we are in the commissioning phase of our previously announced new facility in Irvine, California. This facility at 60,000 square feet of manufacturing space and once fully ramped is expected to support the buildup up to 250 satellites per year. In addition, we are thrilled to announce today our next capacity expansion step. an incremental 94,000 square feet of leased manufacturing and assembly space, also in Irvine, California. Importantly, this new facility, which has already begun construction, will have 36-foot high bay assembly space to accommodate the complete assembly and integration of larger size satellites along with their payloads. We are planning to transition all satellite assembly to this new facility and dedicate our existing facilities to the production of components and modules that will comprise our satellites. This optimization will enhance the efficiency and capacity of our entire production system. When fully ramped, this addition has the potential to raise our satellite capacity to multiples of our prior 250 per year target. We will have a formal groundbreaking ceremony in May of this year and expect the facility to begin commissioning in 2024. Let's take a moment and talk about our outlook. As we look to the year ahead, we remain focused on continuing to convert our $14 billion pipeline of opportunities into firm contracts, scaling our capacity and executing our customer commitments. Given the potential and material impact of our contract, Revata, and other opportunities on our 2023 financial performance, we do not intend to provide 2023 guidance until the first phase of the Revata program has commenced and progressed sufficiently to permit us to have a good sense of our projected results. We expect progress on this program to accelerate throughout 2023 and 2024 with deliveries concentrated in 2025 and 2026. As a reminder, these affordable low earth orbit satellites are designed for replacement every few years with a potential for recurring revenue stream as they need to continuously be replaced as do all low earth orbit satellites. Additionally, We expect to begin delivering SDA transport layer tranche one satellites in 2023. The SDA has indicated they plan to run their procurements for new tranches of satellites every two years. They have announced multiple planned procurements over the next year, which we intend to participate. We are pleased that our on-time delivery and support of the early SDA missions positions us well for future awards. SDA programs Program priorities this year and next include tranche two of the transport layer, T2's demonstration and experimentation, and the tranche two of the SDA's tracking layer represent nearly 300 additional satellites. We are proud of our team's achievements in 2022 and excited for the year ahead. A highlight of the year was just last week when Tarrant Orbital's long legacy in satellites was recognized by the receipt of one of our earliest PropCube satellites, which is now on permanent display at the Smithsonian National Air and Space Museum in Washington, D.C. We highly encourage you to go see our success of the museum and thrilled to have it displayed there in perpetuity. Now I will hand the meeting over to Gary to review our financial performance and for the year end 2022. Gary.