Maxar (MAXR) 4 May 212021 Q1 Earnings call transcript

Greetings. Thank you for standing by, and welcome to the Maxar Technologies First Quarter 2021 Investor Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now today, hand of Jason would to conference Investor I speaker your Gursky, Instructions] like the to over Relations. [Operator Vice President ahead. go Please

We're Yes. for Biggs Chief which, an open Executive to Quarter the Dan Maxar remarks. shooting Jablonsky; I'm Good After Chief Welcome we're your will Officer, today Earnings up call Financial make its Officer, opening joined Company's Conference to Call. Both up the afternoon. First about the by questions. and operator. Porter. line Thanks, going wrap XXXX in to some hour.

like Before that the we on get refer responses site. part turn to Once the you Investor where the forward-looking actual started, presentation, including to in be maxar.com information. performance I'd questions, date. statements, accompanying today's but slides there, expected like risks found please are could are which and Events which contain at Company's can to X remind to for of Slide and of to section I'd discussion, reasonable are website subject differ Company's today's the plans, listeners the objectives the from represent based materially Company assumptions on at a lead uncertainties range believes various and to of forward-looking that may that current wide estimates, results today's to the statements These future Presentations

the the most at profile and XX-Q, Company's forward-looking at online sec.gov in Form maxar.com. under Company's quarterly our available the the earnings MD&A in regarding website slide on contained at the SEDAR statements under are advisory decks to EDGAR profile is or You referred earnings releases, section sedar.com, Company's which call Company's our recent found

that, call to started, then I'll Slide turn Dan, ask over the As I'll to go And turn ahead. Dan. we get you X. to with

and at programs. everyone. are and X/X rolling another really had sites powering vaccines returning encouraged the to our back traction with Good all that Maxar. progress afternoon, to we've quarter join on-site the our through the We're started and relationships winning Jason, along busy continued new of people at continued that good business out, on pace Thanks, quarter and We to people approximately customer work the have customer technologies environment, demand on and the drive help to key year. the some working do we're the us the will believe past progress critical future. pipeline run double-click update in technologies serve making growth XXXX on a missions through you like space quarter, of highlights a that priorities, I'd then on view Today, to with the we're from on our provide over on we our the

that, with the plus to of these have the charges, to growth We been satellite would the details will XM presentation. please year-over-year XX% the higher. adjusted even EnhancedView despite later, both but So turn growth and charges for generated without X the EBITDA of Biggs Sirius go XX% program. revenue revenue metrics into related effects Slide deferred accompanying without

pleased launch really context, with forward charges. Sirius-XMX has future our Maxar it the shareholder now They're segments We're in a not right weeks. I'm value. to Intelligence to underlying in proof generated path the we into completed growth encouraged in few launch are been continue a Importantly, that quarter. these Space facility. the the in sustained across teams drive both the all both on work creating to to route and the point strong doing work on with and looking growth I'm this the definitely satellites and rearview-looking Putting have

important as of free our One continued most cash flow well. trends improve metrics, have to

consumption Our near trailing quarter. XX-month breakeven this

for and our remain trends XD drive winning XX-month guidance, on we've maintain generation. capabilities for times. growth, program. modestly large technology decreased wins That quarter excluding us turn the revenue. on Earth Overall, at to several Slide year including book-to-bill included satellite the those XMX start reduction on EBITDA XXXX, business. remain the X.X EnhancedView growth companies. strong Legion, growing it a outlook XM in the trend for and for bookings positive We both will which means cash charge, the flow, significantly to trailing X into for that charges driving increased Key details even in go more Booking a progress beyond priorities. driving with But later. of on the will cash full Biggs roughly program. and investments it more debt adjusted pretty expenditures capital allies expect to continue with Intelligence, on give also and in we're the flexibility will the We capacity WorldView good quarter and Sirius extending Please renewals focused international but our to review making, lower XXXX

last validating adding and highlighting customers of last over data started week and key to capabilities Some a million, including renewals, have the we large made acquire ally $XX Vricon XD the to year. cloud for U.S. their decision point

signed missions. this Additionally, to Intelligence National training, the we quarter contracts support and mapping, the Army Geospatial intelligence Agency U.S. with and operational

step to our also the facilities WorldView will when and to constellation assets service. legion upgrade these is an X.X drone that their Legion, Earth deployment signed years. architecture deal ramp eventual delivery On we've in comes the announce important expect over contracts four to I'm with This so with the Intelligence We the international of in our next they're in direct signed that several pleased ready first allies access the online. for revenue

this tough later in case, we'll XXXX. extending the now the likely past our every decade. for beyond work appears It's possible the the follow-on renewal to contract occur in our the like program, On award we've year XXXX. If but of EnhancedView its exact customer is that it that's continues always QX expect seen existing dates, to predict on program

line execution team year with was in EBITDA it tracking an guidance adjusted perspective, full from our with is good the range. a solid So quarter generating margin

I'm WorldView is a constellation really as and that this the progress, entire of these anything On to we about work capabilities be, the expected All This program to our to providing soon satellites. exquisite complex be Legion excited program, continues. will said, and continue customers. it's

are and and to the really into morale the in a energy few these impact could teams workspaces conducting time work, it's back launch. been this again lines on items Software At the be to this we're build to that to to point, critical see. teams proximity that see engineering good getting that's impressive week tracking have really And and teams.

and these its of software, flight of this first which continued complex of completion components and is The and validation subsystems. simulation testing spacecraft and is and

of issue identified been electronic to and these on components that We're aspects Honeywell satellites. using of Honeywell components be industry-wide first Next, our there's an have Legion the need with corrected. some electronic

We're basically And to industry of we're under Act. satellite Notably, has front this designated impacted. pacing optimistic DX-rated the program, As as is treatment Production that I received being this been programs Maxar's a a high point, close a Defense alongside resolving priority not other DX the this noted, is formally though, has entire that line Legion issue. are preferential at and it and and rating defense the item. mission

the satellites of design, environmental goes measures. build. and Finally, additional validation set We systems engineering, to rigorous our a the into that validate testing do we work construction through that and the and suppliers the put quality and as our

is had sorts They remediation of During our component. suppliers, the will high-precision conducting point. of those a schedule Raytheon, some related to instruments. With extensive the encountered we're plan of at can't being and we've not on optical we That's compressing integration exquisite of testing but anything this, an other in path is previous instrument An and same supporting prove to our had sure arms been got for we than unexpectedly some that delays, imaging in an but instruments this issue risk to be due tests margin accept our It's for less assembly April, design some has testing delays. schedule. to one during workmanship perfection. critical a the leading This clearly had around schedule this like pretty completed.

That's best ahead this today have more what's and always completion. view of driving change. our this testing We can of

So, schedule important, driving hard, quality. we're is and incredibly is but still so

hard mission quarter through point, one going fourth haven't watch. reputation cutting by keep We're extensive a to our procedures. expect we this going We At our assurance earned corners.

included NASA's delivering have been standpoint, Space updated to contract in propulsion we're possible best to for modification where the for a a focused the with and halo business now wins combined Turning the element, to with spacecraft. systems future committed on proceed quarter PPE the on foundation allows Key for Infrastructure, now a establishing our from for which power customers, requirements work growth. Maxar NASA

an From as to architecture and we to hard approaches, look We several civil classified investment we programs upgraded study highly on programs and and recently further solutions. for as our designs, work to signed constellation affordable the work team commercial, national new diversify modular business. serve and including also security with shape new satellite engineered standpoint, is at look mission contracts continue

Boeing position also better to I'm the profit that the higher and forward and demanding continued comprehensive will note are now continue needs. we was of drive most the Maxar performance also Space Please drive improvement, improved manufacturing EBITDA been going reflecting on flexibility, adjusted Chris issued was Johnson look XX new Chris recently team. comes packages delighted sets back customers' where welcoming that growth. cash finally, performance $XXX decades as dilution risk, sheet to and payload on two and working our to financial This to mix. us partners that XXXX. We I'm financial focused revenue, healthier and programs our We mission in President million role approaches. Chris up profitability, will quarter due I remain Sirius time flow excluding program our the strategy shares to in forward. use this strategy And shareholders organization. our transaction with trade million product the X. for led execution, balance at XM, of continued to from us margins our for debt and Chris with growth transformation on equity our claw business Satellite refined Systems their proactively and and most solve to hired successful to in charge to on that and On related turn he's space to working to believe recently the we glad and Boeing, the served lead that segment, over advantageous reduced sustained modernized Slide proceeds expensive to be strengthens and

technologies of we billion is Infrastructure, there Space across XXXX. over the demand and in other the five the markets in pipeline $XX $X.X for architectures and favorably LEO, growth and years, bookings space deep quite continue commercial for GEO, which see opportunities in along missions next both government to to compares over demand of Speaking environment, with billion growing, our systems space.

making confident the a with remain the We Please of And time Intelligence our and progress and programs growth to demand we with growing geopolitical regard customers. turn with security closely analytics, make the on several Biden NASA. Constellation backlog. growing of to spending, be encouraged in enabler We're with our at data at over side, X. on to assessment in forward the the are this administration's meeting its the priorities Legion in customers' see for you our ahead national and trajectory and point, front about the watching, years look the will On Slide both key in needs. Earth Company we and agencies by environment updating particularly government the like

we I Space you today our the see shooter recently support some our to the on result. for U.S. been to time in on last recall, growth strength a deploying the did Technologies, I'd reducing deeper some Maxar government thought on potential we've battlefield What Intelligence more Earth the of and sensor what I quarter, have drive and we've of and as subsequent the the technology to to is provide portfolio been and a up detail lines growth. do dive we As potential in developing

use market the to observation Maxar satellites, know, in spacecraft heritage been and for back earth Slide and that leader including a We've you share space some of our broadcasting, that for demonstrates applications broadband, a we've As the on of for win missions, X weather. price, have market decades. communications types digital industry space relied satellites and designing and quality the Apollo digital performance exploration and radio, and two-way space manufacturing robotics of direct technology, long cases has time. been these media in audio, dates over to

mass built propulsion, their solar government we XX of a including by chemical XX% as key revenue-generating And satellites thing, traditional X. looking this propulsion for fuel we an with our for mass. especially commercial has and programs. commercial unique systems, forward, payload is customers in are well-balanced geo-conformation technology. electric relative uses commercial allowing customers This hall-effect serve to Going portfolio who more efficiency a this an and mission technology Slide our showcase exclusively both allocation over for as ways good thruster, constantly discriminators operations. see and used the in On using power X, of that to active the increase look approach capital fuel a Psyche propulsion Please to turn Maxar how we capabilities of can in deep reduces space. the example be Today, to Slide as building

require years spacecraft powerful the miles. will a reminder, Psyche for To get to those than emission thruster and hall-effect mission done, orbiting is billion Earth. we're X on mission using a to a this in explore As metallic The be to more used orbit a travel NASA typical the asteroid.

different to will and first are is deep thruster Please solar arrays. this this that to mission in could to a a forward. even fact, more get Things groundbreaking spacecraft be hall powered start how XX. interesting a going technique lead approach that has rollout Slide the time in is used as propulsion space lunar with combined turn and In orbit, such, beyond been

power As you use know, panels satellites their to solar help operations.

with for types hall than and This both thruster other we'll to date. we developed foundation thruster growth, use nice highly and Rollout the element, and the spacecraft today integration ever been kilowatts have the power for both remain for both will the launched or applications launch, arrays element, from compact less virtual allows launch missions their robotics forward and apart to excited for augmented electric the thrusters. powered is than carrying and will electrical scalable, government of updates the is arrays advances capabilities, effect also get we powerful other into the quarter's standard space It call arrays. developing craft to spacecraft. capacity This them and utilize storage, several discussions to be electric have providing for our The demand We'll cost-effective traditional time allow able of an than to solar best mass' the this be hall and and are power on that to cost power Please will and this financials commercial the XX. I'd program Station. to At power artificial both about by propulsion space. for large reality in and arrays All and the this on technology year. more the And set like higher Biggs. spacecraft However, flexible, forward. weigh on vehicles XX larger will a fly any you, commercial over International solar The propulsion, of and we our and outlook a these two to for future the learning of a we're our machine customers. discussion across backdrop a mass Slide techniques the the limited demonstration system rollout Space power, working traditional customers. that propulsion Biggs for together technologies that solar that, more for and Gateway. unprecedentedly government continue PPE, of space turn highest using going deploy by look large believe like hand propulsion intelligence future Lunar Over to PPE, providing any solar

quarter. Thanks, year-over-year comparisons XX, present Please the for first where we to Slide turn Dan.

tuning Without contract effects the by loss of wins driven the Sirius-XMX costs to operations satellite. by and slightly quarter related to $XX primarily as company Slide quarter, net XX% and driven $XX Space and raise $XX the a EBITDA intelligence in Without QX programs Sirius million from Please we driven revenue, as the increases more XX. recent year-over-year deferred million been for recent total with favorable mix. from retired The to expansion while first effects the the Infrastructure $XXX Earth was was well Intelligence Revenue total our of year-over-year customers. have million charge XX. million million, increased year-over-year Earth quarter. burn-off, with related revenues $XXX international in connection $XX at X% extinguishment in million a $XX growth a in company to revenue million the into revenues basis. as Intelligence. Slide net EnhancedView improved EBITDA year-over-year respectively, margins as debt modestly as deferred for notes equity the Our increased on without this our and XM, in would commercial Please by defense turn charges adjusted EV well programs adjusted turn increased X% revenue, of growth in program XXXX

from Space our a satellite. with loss final milestone net orbital revenue were cumulative As expressed Infrastructure impacted issues and to payments LTEs. the the receivables million compares performance negatively This related EBITDA noted the million included revenue in we by to the $XX and to adjustment risks This other favorably the and earnings of of Sirius-XMX the as adjusted $XX adjustments. release,

margins. margins EBITDA, year due impact our and to Sirius which including Without continue charge, Space million would to expectations XM the we with pandemic. posture million million as The X.X%, in XX-month are roughly more we growth continue profitable operations and has reported well profitability for those quarter Xx. taken margins than the revenue and milestones continuing been have driven in a invested expanded CapEx in the diversify trailing and repair as XX trailing quarter to the a while adjustments Company adjusted and recover first X,XXX flow we without basis, to in been related drive COVID-XX EAC as cash we important the XX% would drive have Additionally, the year-over-year, line developed of to the margin turn a is adjusted during we recent Infrastructure Slide to negative XM with by attempted XX. feel points, intangibles. as the business as to $XX fully our our more $X to revenue bookings And book-to-bill segment costs XX-month this our Please growth. satellite. $XX of as impacts, million basis last operating Sirius These in generated in incurred X%. operating greater margins we increased reduction awards On first

million. guidance It down select. approximately cash of had the EBITDA The full revenue Importantly, remain months XX. system down. down $XX at We of was flow XX down pay consumption generation does impact winds was revenue cash as for changes. and impacted of first year guidance benefited by guidance the our notes. our consumed for and include to the compares trailing announcement million $XX $XXX the We Please the not the adjusted The the Sirius confident favorably of outlook million the XM year quarter, ended given following Legion Slide summary million related XX which XX will times. and turn million. Slide our leverage modestly approximately roughly construction both liquidity the million in leverage charges Total defined turn the XXXX. landing $XXX program recent in from at end to human XX to X.X taken metric company ratio XXXX cash during quarter, bank Please a any to by the impact

million. of unchanged, $XX flow operating bottom remains is guidance end have the we and raised EBITDA adjusted cash our by guidance Our

Intelligence for we range of Now modified guidance a unchanged targeted more eliminations view Earth a to our now guidance in team's please at $XX of expect for now program to expect of the landing our to $X.XX million Space XX $XX and Slide Intersegment the to by account $XXX million $XX guidance from Revenue modestly, range have human remains billion what be those of we range billion. year. to issued the of $XXX the in to for revenue million to system downward $X.XXX be turn Infrastructure for million year-end, figures. We've and million. detailed to increased loss

ground range to secure we change we Turning related investments continue to EBITDA. to adjusted in Intelligence. architecture. some outlook quarters the Legion Recall and expect costs as Earth in for incremental operations Constellation future No that our

We contracts million. revenues interest quarter. is ramp unchanged. to human guidance, each around through the Space of the the revenue a As down. Intelligence. EBITDA still margins EBITDA And $XXX more to that adjusted despite guidance landing guidance recent still given expect levels materially as of working $XXX we select as down range at progress we've from will million top the in bottom cash revenues, we result a our sequentially of of XD, increased Earth range we've presented but at of flow driven adjusted early At year the savings total to typical notably of not impact This work stated our end our and part expectations Space by growth. capital to transitions continued This operating continue cash same the growth, uncertainty the $XX it's related left Infrastructure, for operating as and Infrastructure at progression as consolidated large million range by such, level, midpoint year. guidance revenues year, realize reduction by up unchanged this last changes. will debt don't we sequential a is as especially end flow more product is pay the We've as in the previously is the case. transition transition the The the revenue our expand QX forecast at does and earnings for left system driven general for This the specifically, of also quarter proceed to

the the to CapEx ranges throughout look this tighten remain will The for range We same. year.

the Interest of debt. $XX on On annualized share which and will stemming subsequent longer-term our inclusive Moving is nonrecurring recent decrease roughly interest years increased in a expense expectations million total retirement $X charges but that on by will by to to million, early other $XX for of an our down have of noteworthy and debt. financial count $XXX a in the the of and expense interest QX updated flows expense from impact taken million pay positive into future equity basis, million, have guidance targets. issuance items. We've

I which the easier that in I guidance the just of As also stated, numbers forward, after all XM shows guidance exclusive slide, of XM Sirius effects To effects it the the how added Sirius added gave charge. make rounding a going off. is we've would look if are

I several operator to Q&A, will a require Before back hand wanted in over matter Back public I call next briefly that the the filings for also housekeeping to days. corporate the address in stock XXXX, of implemented plan as Series the the a plan. of preservation benefit authorization issuance NOLs, a part of preserve potential our to which included the preferred A tax we

NOLs the or Q&A. is impact outlining don't required the to week. we'd is change like we since to X-K eliminate certain formally to through be expired, shares. and explain minute a to steps take current no issuing X-K will to because shareholders, I Operator, we rationale to plan want those our an before utilize has unused the There now filed begin this However, next those and walk shares preferred but

with line Kenneth Canaccord. comes [Operator from Instructions] of Herbert Please And your ahead. question go the first

the confidence the the Do at specifically, quarter mitigate -- any have wanted more over more looking specifics you and on just up delays next item the timing on And any the on follow start in of from Raytheon, detail gating the months sounds you the launch for the but steps you're of to on I launch? around risk. this few And a further that? your say around are to year the can comments off end fourth color like it Legion viewing how you confidence you there. and the through components the at then guess, with there, I Dan, went around on what and that some help

Thanks. Sure. Yes.

last time team person And this modifications programs, fully took have now. It's things amount integrated to testing past when roll the that the into with uncover software did and a procedures well phases. complex test working integration you the in that, program. come several pace. do improved ground was the and you final small do looks -- But it's margin to do not this a our to the at introduce that Legion uncovered think is we some sometimes rather our made as been but -- out issue, taken as I we care phase delays the testing looking The we've they've before the launches some And on glad everything the some mean fully and the a is back spent and you'd resolved I for and satellites. been in it So getting doing starting like the here And workmanship and us, are we've introduced it of together years. of. get testing particularly go on we as program to on that on space. into Raytheon we're got Everything you're component. and resting integration them on Raytheon week, our unfortunately, of it one on, We're I issue track, said,

but So a mind. schedule but prepared we're point as point, this that. we're top at and quality of whether on late QX, continuing say driving keeping for this not drive at We're to hard think launch, as I can early we've that's I'm on we QX accounted to or everything. for planning

look Honeywell that to but year. this and and with to we've forward launching the keep as pretty done we've and quality I keep well, think dealt got working issue on instruments later well that one

follow quick a Great. just And that. up on

software on mitigation but on sounds you as So like it maybe of just risk issues, feel as good those and pretty well. issue, about I'm those on the significant the guessing are flight not Honeywell

we point, under The track at of about just everything. but do software is this itself We lines XXX,XXX or so. code

fully not integrated procedures. but in and over through in and procedures the the something that test -- and form complex, operating on of both to act we as when other the put through testing incredibly want it's during over the So we'll go it's paces as normal well spacecraft

So we come are work are three of unanticipated to want and be finalize of everything something we could would plan always throughout year. Obviously, want But the we today the where schedule or ahead kind into look to the rest done that's the and it, keep running that those big it. the the that, we required there's the to point but be we're at get -- tracking where and right now. issues as to

comes Tim next your James Securities. line with the question TD from And of

If about of curious it's particular view ranks you you SI know and -- Space today kind growth that a LEO you maybe how of specifically kind relative within the to you opportunity in could maybe for segment of the there that now, huge where talk and other and for of but market opportunities the of just not part buckets I Infrastructure. kind

Tim, And may Yes. about be expansively. asking of to clarify, LEO the market just you about the side, kind we just but think communications more

are our made quite aware have programs And One some that issued, on that on certainly part we'll as McClellan observations, -- done There now And teams. that people are we've Constellation, that for some can great mission announced. job, constellations. Jim LEO our the work something on. group to in side, planning active comm which think people's others but well we're have coming that been there space. of. we really been are the helping thing are Legion have There the that lower success side been haven't chase in we're RFIs RFPs capture in architecture to I continue we're the emission there we're others right significant investments are is And good There going like we've think, architecture LEO of out as us there. as a refine boards are other the types deliver are we're and for time, products well. opportunities sometimes of pursuit over other example, and we for and do, for orbit systems doing I at some board government chasing So chasing in

might. one follow-up, then helpful. I just That's Okay. And if

both for commercial wondering are other low that of of at that, the intelligence, customers of year? interest trajectory kind the and both in type through And was do you responsible sort see accounting single more the within one that rate? growth growing that, digit IDI customer how X% kind the on balance for or of growth? that they I'm Just Or just currently

Yes. And a here I'll let Biggs in chime in second.

programs I well think national on growth we're side. international and as seeing and defense Earth commercial the Intelligence across

We're So year. going some the ramp-up we're also that. encouraged really see strong to by throughout

-- sets the go expected about little government the particularly on than be. of the the So the and backlog QX adjusted seeing products, into XD we've seasonally great well. across we're talked is pipeline, a on of as more products, commercial year there, statistics rest lighter And Biggs both is that. some uptake can the the to detail But

pretty a even of of It's the had agree. I clearly, customer an as product and mix commercial And XD terms ID&I in well. influence between mix. the

Markets. Moschopoulos Thanos comes And line BMO Capital from with your next the question of

Vricon. still and far days that it there? there early aspect XD and roughly in Is front? the as existing on customers? intel can of the expanding you to as color How Or back of provide maybe much runway Dan, base defense going what your kind is

Yes.

think couple business have for we we ago, and data we in and a what that's doing a months expected very there. to actually One business potential a would earlier, strong. strong reference remarks, enhancements guess, existing program we otherwise call, announced million services beyond Terrain I growth our -- quarter, my the World from Army annual like we're our the there. customer In made I In that, award -- X.X first fairly got conference U.S. an ally. a I growth $XX new it's And what

be we applications. used across to more extensively that's expect military U.S. So

think just use international intelligence And so and a across of great we set cases there's then U.S. commercial applications. government, customers

of lot, to remarks referenced We haven't commercial a including we've will type autonomously navigate commercial the that but contract I areas. a my good customers, some traction technology the this with talked and about about drones applications early urban company be gotten drone in using in

internally. So we're of potential about for excited it a that, pretty see lot

the Our year, set and forward. growth driver XD looking for for the be forecasts that product a good are to we business very strong going this expect

demand. business? there meet And of U.S. maybe predominantly bit by the in headcount I gov? you being know is But were business? take you past, Can the being Or able are a far on you to still opportunity us as materializing as that is constrained the on driven side services internationally? that what seeing

Janus we're NGA Louis we're still programs, out being great and really the now, healthy. it's we've predominantly could still, on. office We driven our things growing some we staffing St. by award growing Right been with -- hire other won be announced we'd faster of got as today, including that recently going some And of it's even U.S. good growth. faster, though if

to the intelligence and technologies services we see the for bring can't in hampered and international of there, of discussions days be do those the to with kind things But Still travel number growth demos of On can U.S. that early government can we're more defense because deep work. a of as driver customers a and their for be us do little over integration a and able same us types to needs. COVID's we we probably integration strong well. and time that front,

Great.

Just in one implemented or Legion? other be affecting to would that Honeywell programs one for last issue, that factory like The the me.

than of that, things on impacts the point, still one issue, and are financial it broad We're these other industry-wide programs. schedule to programs set It's material more of companies this Maxar. assessing goes business the all At just believe across impacts a don't an has we the across but it's there any for that potential. any

And your from next Seth JPMorgan. from question the of comes Seifman line

those operative? still XXXX all on the was are I just Great. targets, wondering

to anything quarter, a a going at it out that in don't we've incremental we've learned that with people, previously savings the changes refinancing interest point equity guidance the that did that those those. respect to we from issuance made every time, plan we're to point to every tell the couldn't long-range given. might do as make were In general, you habit to quarter. I this we update have new the guess. But not point though, We

if things going flow any literally to on the other all there's not of every quarter. but But So guidance. the pressure from update forecasting equal, everything we're not upward change, cash on else, that -- part

regard for the again, That's guidance part, the maybe And that Legion helpful. it in -- Great. launch follow-up seems that EBITDA to with EBIT to the split it the on like Earth the guess, regard seems was observation, one for guidance with maybe and potential then contracts first I the -- capacity, the then that with it by first you time on that you regard that to the which to a satellites of year seems there And constellation is -- is like launched? maybe launch. of timing the have second, independent kind need those in have of

Yes.

thing the are right We guidance year So just all not -- think piece, or you're on affecting a our big Legion say for being these are about is XX-plus Legion numbers. impacts that the guidance XXXX one at I assets life. to designed

So of a a our couple there and importance marketplace of customer are long-term here, their not view of couple weeks our weeks the to impacting to base.

we're XXXX start time there going the to And still to assets. need for the how right making focused on we to with numbers XXXX said, steeper going quality so what Legion customers date end going in well maybe we little the with to expectations to getting to out that All and the And XXXX. the those we're get on into up ramp-up a want capacity, the do our we're horizon. how are our sure and within be assets right very going

on can set we'll into So we for for direct bring including facilities. make of continue do access any this architecture on the to the X.X that ground the second online or do then fast how faster, free -- be revenue work side, customers the or the on our we assets and work the things we constellation like on hit feed -- a things everything can the place that to can ground flow as we well

comes the Spingarn line question Crédit Suisse. Robert from next of with Our

when you Space number how $XX to is split Infrastructure, talked satellite about pipeline, Dan, two back GEO And your businesses? this of I billion the Slide demand? between that much that go does how X, and within five-year

going balances more how about love it break This questions, I to to great. talk if that your I'm you bit specifically. out. Rob. little a out not Biggs, want is

the seeing I think good. you're programs. really Space Infrastructure business generally which been the is we've what side, is have we've increasing, and growing across our winning been margins again new been And on

So on the and we winning path. keep that, keep got but we're doing right to

services of Vricon growing Constellation Legion forward, the we it, in particularly of here, of online as On the the at faster with us business. moving side Earth even Intelligence side, probably, its way the if continued be types front and you looked in is things our coming growth see

plan? on that Moves

very don't that anything my there a fingertips pipeline is but XX% normally I I the margin, have think Sure. and mind Intelligence is Earth in and both or the Rob, specific, Yes. segments, more. keeping at split, segment more on the healthy Space high in Infrastructure

but can't bottom So the laid can are the standpoint, only heavily revenue weighted standpoint. side, the more be line split that remember Earth from Intelligence what a pipeline a on a from I little to

competition and how Vricon Dan, think it Okay. just, do capabilities ability the competitors the Imagery And all these here, your Maxar to if as your new the about positioning market status, about move how in going incumbent into you to with in you given then LEO additional and will, you have that here think you and evolves elsewhere your and with relative given forward?

to of make Well, and customers so decisions. that the the observation well all data we've that as in pleased together propagate be leader been the Earth our as and that it data technologies into pull the very make privileged and and format usable now tie can the sense

our our If and we and missions our of ahead customer to continue to hard constellations we're assets as big and we'll and to very are That's and able and and taking it thinking can cost possibly our everything as focus run infrastructure, going is needs in focus. doing way closely on -- care for needs solve else profitable and their watch our forward. unsecured that that's be We both doing. building biggest secured shareholders. everybody customers and effective fast their what our infrastructure meet and a We our

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Infrastructure Okay. you but a billion, progress as getting defense directly primes? ties what's to kind one, work on the of there, this $XX try at or your through sales And last Space either the question just maybe the latest and first diversify on to

Yes.

shape a to winning, said it probably I year first the of about X-year We're then I through helping, well contracts, see what and phase We're expect think, always have We doing be. materialize was we programs. about journey. to larger for but X- like in study to expectations that. into substantial more right things the think going we to where we're would on those forward,

primes their where certain in and they have value offer the and something are don't teaming they capability or We instances, in bidding portfolio. that's open very a better for large have them to, something with we than either

of as We capabilities one win industry. some as those larger in the focused on prime. sub to the might a We're of technologies what companies those key are. So win might our very we some of and

X.X Robotics, another, are of thrusters be Legion things the with four the space and next architecture over I will and our long some these what effect up do robotics one, and orbit two, look a we really think three those demonstrations years. programs win us we'll having some capabilities those go from as towards space the doing one on next some way of hall that all getting my of well. capabilities types years modular and I as like so of some of that presentation, is in space qualified, well think, helping or

Michael Securities. line the Truist of with Our comes next question Ciarmoli from

-- looks out progressing? the mean latest pulled order. program or sounds that is light but like stop in on mass, I how you views issued revenues. system being conservative, just there? of It the any human it Maybe think, What's a work like the you're lander I protest

We lot. not a contracts. phase Not were awarded the initial

and not -- efforts we We're developments the and were to of on a there's some Dynetics watching certainly that teamed it's know, as you sub them planning with get to are on closely. communications interesting. forecasting for or But work. But subsystems As we this it in, we'll it. the point. very thermal we're Look, a take If back at focused way NASA figure the we obviously, is opportunities what to on how types and trying ably is to We've got not now driving working those of the some other be really we're and government and have out or adeptly great of replace types other on as right in going on opportunities teams those are to with ability programs. or that to things, can commercial that to work other directions.

Makes it. Got sense. it. Got

cash, implications. or there should know these the Legion, were CapEx aware WorldView here? continue to of be bottlenecks you Anything Just back we financial real no said to I to endure

to far there just guidance the had have a CapEx. not we XXXX likely for already and updated As confirming out as basically impact, big what we goes,

not in real is forecasted. no point change year, time really this expected So this at Delay further

this year. So from the right to we've numbers I that expect think what for us got

thing harder going rate timing the 'XX leading think revenue to call of is that into 'XX. buildup I the hitting how and mentioned, affected, 'XX leading Dan As exact to run the and up gets

the actual bookings the Got for it. one Got have Do it. me. And just quarter? last in then you number

at you I'd here. to it refer the, know XX-Q. I fingertips my had don't the

Sorry.

of question Please Wenzel with your line from comes the of next Bank Elizabeth And go America. ahead.

around the Legion for constellation in the or how and of the the what that launch might plans life What's ending thinking existing once satellites and those be service have and thoughts their constellation, you we life look should extending -- like? about

Yes. off, great a I constellation. we've Well, first got mean,

with and the We now. augmenting constellation be world-leading it have right We'll the then advancing Constellation. Legion

capacity business our great so. mission our customer can long for continuing providing commercial on And service to we We're So still to excited exist assets, them. bring there's There available we for us. because sit operating get do and take in we assets them about some life. later capacity to not some as great as the Legion class. the world need customers. always best very new the as Worldview-one have And away as allies and U.S. they're be in that which world they for keep international that But to Legion. for the anything customers expect a into service going expect and as from even doing and we to future doing replacement two of designed But far here long they've was today, needs, using but as into to be them, in current we continue continue for we'll as -- for been

beyond XXXX, go it I So they could mean beyond? could go XXXX,

are possible. or engineering Yes. is assessments continue done actuarial assets reports the space, those are tables expect just of our satellites. on and learned there potential to of We've life got it Yes. simulations. the public expected operate the they That's and to and that But And what in longer operating. they're analyses those based we've longer continuing

the as update we in now, for can. and best adjust where But be we'll got. tables for numbers would we that the So in XX-K our those on

from Quilty the Quilty Christopher question with next line Your Analytics. comes of

the another commercial the after you one-year the in, And I end of contract extension, third called I gets around up successor just so the layer, follow-on folded script being August, some you clarify of guess, that year. in X-year EnhancedView during is then now timing at that And later the is which get point, had extension quarter. in correct? I to vehicle, something you And expect wanted that that awarded contract. contract follow and understand

Yes.

were we layer, the earlier things there earlier -- done this, to that in we year trying with we wanted had maybe or of the electro-optical the the that that's moving -- thought the going and And few maybe and might we other what might the that take it on, when just what than the I year summer, sure all happen been not as weren't to be that replace have ago. think study commercial and but change so be, we over phases thought said express, administration existing I last case this full and as a work initial six would little going we months and new then We're anymore. EnhancedView that slower program. with bit a think to that's the

by get happens be be could what it gets expect of vehicles would September any existing pickup version of we transition once terms government it under option X, who to out, new it next done. point, back be the contract XXXX time as time the contract it hammered EnhancedView exactly been would then in fall, the that not frame. renewed some we the have that future every could is the into the that if then September year federal So then the how could takes program at to to long be -- done the But we then And program, and onto knows [ESCL]. X,

Got you.

Okay.

unpack that for Can a with partners us? the about transcript You payloads mention to cryptic you also working made do somewhere in statement for customers. of

payload We really across some got our we've modular just And a architecture an running as traditionally capabilities some business well on the with really yes, development and lot on others. Well, hand architecture good the in of example, we're fast as lanes. Legion done one ourselves. haven't swim as

or those capability, other be that we'll to ecosystem with wider working a strategy where industrial-based commercial So and on orbit digital be of more will or available commercial phenomenologies defense of customers. that serve a on someone going either else side, has be payloads types partner missions for believe payload could forward better the us them the classified for put we have

a Or guys Question in obviously, that you And handle award Is confidence? that was award gave there teams. traditionally a Understand. of you with forecast I you would potential competitive a this? was large that surprised about made. like award strong this lander, sort the that was the put how human three on special it bit even something before unfounded was your little

we wins those when build and going and of Well, numbers And do. forecast things put think probability mix forward things I basket level have up think the we we in programs takes of final and doing. been of I by one graded been results And surprised things terms always award a in that forecast, letters. as kind reasons. mentioned, of then of folks front, On commentary the had call certain of those there's on was as there's place probability we've it on the on a well confidence. give degree and a little some the very taking take confidence of puts by so one the and this that we that we guidance together all NASA of and the that forecast in the of we've in some and the a we the earlier included We're other in but think phases, challenges reasonable for I one, realistic

knocked been on Biggs. out, the adjusting we've yes. ahead, Yes. Go and that upside, it modifying Now we're for

select original I just for that two the plan competitors. would the add to a was of three in down

two well. when NASA level was that's that confidence increases analysis this of the course, the So way Obviously, our a were at confident down gone point, of we We of built has part the one but that, not we'd plan. as be that selects. the

previously is there Jupiter Sirius-XMX out And supply X those the How are you I Congrats understand. door. that towards door? the that that identified program? issues chain moving impact would getting on of any

Yes.

really still terms but how a not pipeline into customer believe other everything are didn't operations. on is and across are that's all to And very, the people the forward. one in on them, on through we're program We stations There related tuning little now. the been we working satellite anymore. they our We're are and this risks to quarter. and X they've at at X delays of are many had get testing point, particular It's do development one satellite additional going they we for of this associated delivering moving we focused customer that to their Jupiter getting the Jupiter could the expect. the continue business business things track But about originally their pace keep hard delivering. are can critical the highly very We how products the don't there to on But program to and any forward. customer, expected, and way execution this the hampered the with that They're deliver particular border. so bit the it and know COVID And we program moving is with driving complete plans bottleneck any set parts put things they forward. make vendor work by

new the And the pre-booked in but Got advertised down, have it. press the they satellite they it Neo final Airbus and think question, I somewhere written should fact first launched, had that I release, which customer along some of amount you revenues certain its commercial and and brings capability, any in signing that traction further contracts and associated are up getting satellite question, the with pre-commitments?

end, our designed on X.X four the to to architectures progress great some Legion architecture, incorporate DAP made We've the the work. specifically

spending are customers So money to capability get that online.

and those the indicator is another good having at on I of importance we're point. traction program lots think the rating this of DX for the missions, good

timely the we the revenue up the as get expected are start and think, that on I we, as getting constellation. So it needs serving to customer can

Your from next with James follow-up Tim question a Securities. TD is

a more your part? that it kind signed ramp? what Or wanted a challenge will of customers bit we about 'XX, of your in is quicker more a of there's slippage just be on Dan, the challenging it you of is is it commenting implies to think required quickly to get about of follow-up or it of here, that to to XXXX targets. just operational steeper the on revenue get be to Legion. could getting I you're that's a ramp if included kind if get Do mean there up? it kind And more

Tim. question, Good

is I position we a that expect years the to Raytheon, program, going from in fully is with the and be. a we issues Honeywell ramp in that to think I bit characterize still are and steeper. way now these to it couple little X.X the we I'd be with the want where where the be But in highlighted delays remarks, of

Now and further, possibly won't that's I hard more to presents bit they know blame ground and the How so service mean on delivering getting kinds as allow whose contract this bit can customers, done those it's of if data on as the of guess we it the signing then and that the can exactly. those that commissioned program. does now to from until ramp assets them a satellite and few challenge anytime There steeper you but satellites customers it focused see the you've agencies a we challenge. pushes got customers revenue that don't little got of start much from procurement to out things, levels the a of handful little so a of us, a them. can at point a we'll them be much get their how expected are fast mortgage

think Okay, exhausted queue. well that I'd those for operator, you I like thank as the dialed today. we've as to in the call

quarter. will again we're in weeks until on to forward Zoom. between of look in goodbye seeing think operator. bid from the Thanks everyone many Certainly all I next you set everybody

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