Maxar (MAXR) 5 Aug 212021 Q2 Earnings call transcript

Good day, and thank you for standing by, and welcome to the Maxar Technologies Second Quarter Conference 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. [Operator Instructions]. to conference like speaker to now Mr. today, would hand over the your I Gursky. Jason ahead. go please Sir,

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

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

Dan. MD&A And You profile recent website discussion with company’s EDGAR releases, section in advisory go or company’s found earnings XX-Q, maxar.com. are to referred our in the regarding sec.gov hand earnings the most to in that, contained our the on call and at quarterly ahead. the forward-looking statements over company's slide and at decks I'll the Dan, Form

we're learning to from I'll to quarter priorities, how we're on to update capacity slide year-over-year provide constellation. of accompanying non-cash to satellite afternoon, grew Intelligence Earth effect in turn note, cover generation XX% and of of intelligence using the the constrained fact machine we and Good and everyone. Please XXXX them context the drive We I'm on generated Jason. driven Of the the U.S. products company's providing and Growth presentation. This next government to the the that key despite some launches. to as here deferred. where solid spend growth services also as we're our was with going Intelligence of growth. highlights the Earth are by Thanks, our progress including ahead performance Legion EV three program, making an they capabilities on the time artificial XD Legion currently customers, apply well XX%year-over-year, as quarter, excluding sales a the revenue and Government. afternoon commercial

driven follows of Space we with renewal. our development part launch. to first of expansion, infrastructure We're contracts four saw customer, an ground business government improved the Importantly, ahead customer constellation quarter Infrastructure. excluding Legion our margin we making during This of multi-year be points EV the also ready. progress a XXX with announced upgrade steady the last large of efforts to Legion We recently deferred by international EBITDA sale as basis quarter signed adjusted capacity execution

the Next, our September received NRO we with program of X of View renewal year. for period also XXth Enhanced the this starting

support cost, partner its predecessor. As continuing XX look mission they and capabilities proud and program U.S. the to reliability increasingly we've imagery. forward nearly years, the EV Government a the security a as current commercial delivering superior for of to U.S. the been adopt Government with with reminder, commercial on work quality, We're NOR trusted to and

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government including and expanding signed generating signed I continuing with Earth We're mentioned year. And as the and minute and with the Key Legion XXXX on backlog and we revenue quarter, adjusted with the for we production another space renewal awareness. from as good example. with expect related and a in NRO for large a perform ML continue Government for recent drive this means ago, as demonstrating included and tuning to customers. the program, our that to the priorities. both Legion, a the the a margin Please government well ability and capabilities for for the From we to end vertical, bookings performance. AI, high four social activity decisions and turn strong good capacity, customer verticals. we XD across good remain we in data. team capacity period the multi-multimillion solid those with bit. on enjoy growth discuss based awards a contracts, multiyear find perspective, multi-year, Australian and a capabilities, finally, book-to-ship excited We upcoming on also imagery understand U.S. includes growing quality of in maps, our wins to change As vectors In of the it announce WorldView bookings investor they by GEOspatial discussed with an pleased that monitoring, webcast, Enhanced traction while a making progress recent EBITDA on and XD existing the I'm a program. continued to in new agreement persistent imagery media EOCL company contract make which good focused to execution was RFP platform providing our a dollar review was we all same during issued to license I'll quarter for I'm the team large of international Even and the our we draft domain calendar Intelligence, a we're award progress driving slide as make to View growth, to more assist

decision drivers last made Legion, fourth lightly. a key the WorldView isn't to quarter There delay the of from are year. to have decided next two into update. launch This Moving XXXX we the since

an instrument reviews for Raytheon delivered The in hard has is Sets later pre-shipping fall. been in arrive us and has [inaudible] The followed for four satellites, should Wheel Honeywell and the first is hardware to while the first Maxar two to Reaction the been the Raytheon anticipated. from coming our team than working by transit this facilities. teams September, the second have instrument the other First,

schedule. and we first both us instruments July, two However, expected of had a in negative has the impact to had reach this on

Delta and restrictions to Second, schedule of reasons, on we lifting post teams, and work has the of positive XXth not the the testing return with our a June variety achievement COVID for California anticipated very while led to and we're in the of the software appreciate all an integration, for all the had has and now has variant clearly challenging closely. the difficult our watching suppliers COVID under a We have impact teams on both it us, environment course, been operating accomplished of circumstances. program.

and delays work term launch importance integrated software, and include the both Maxar’s our to testing, program systems environmental and remaining this operations, hardware which phase and objectives, launch and it's the important long little more customers integration, time. a get streams, the Given and of this for requires right

for for now production ways to and to expect next the While year March first launch and we test, accelerate in-between for launch. look we the June time reliably continue

would program the assess Two, depend to on and four we which into internal them added program resources. today; constellation. They remaining mission first. team To on and external how the we've this six We streams. and schedule in insight, program, much quickly assembled address work work after We're diligently number are on additional actions. after to hardware responsibility work, launch who and a will we a May provided the a testing and assurance focus and we've software forward red be with with Johnson as important program including to the spacecraft. expertise incorporated to other and the get discussed the is engineering the remaining soon One, we've company. three, driving of joined up a EOCL remaining bring continuing revised both the shareholders the the assigned significant said to of plus schedules. the months possible. of good can satellite is largest Legion year life a program this historically XX and constellation, value they Chris first, With overall the to with We the three year contemplates customers. for overlap XX progress intend which We’ve second deliveries, we've I software earlier, that a Remember, as the Maxar our cost, this taken for design six launch program program, How it maximizing our draft aligns RP fit. our respect review the mentioned

that current needs tailored that unaudited continue current U.S. as to future We the the our now the well expect U.S. Government, to of the service provide and to Legion are Constellation as meet assets

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for the diversify awarded preliminary On continue business. were Classified orders. look to to Element additional study We National Power also contracts as new the we change shape design and reviews from Work and Propulsion we were NASA, completed Security programs further awarded

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leverage Finally see and and significant cash levels on financial generation to drive drive and our the debt flexibility, which results lower. of to the strong way continuing should both business in financial years ahead, in we're quarters

So both financial quarter performance overall, across the verticals. addressable in segments and good bookings our some and pretty across good momentum

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exciting an of about over Before I call like to to business. shift discussion another the exciting I'd - portion hand Biggs, the the

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be the and for Before we get started, let Artificial mean and what context Intelligence would of Intelligence. set Learning quickly level it in used GEOspatial the outline I thought Machine

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maintain repository other data Constellation, turn adding that the We're or Geospatial our With to ML airborne, services capabilities. XXX nine from together metal and than match car detect cluster. market. slide XXX to more constellation object networks as of counting generates DeepCore tools. important High highest environments, case. and infinitely well a World standalone scalable clouds plus satellite, frameworks deployed has and Legion sources. models, an ARD, machine types DeepCore as terrestrial being Resolution drown power and and within We team visualization the machine AI commercial government of with and the it Importantly, data mix satellites can DeepCore will capabilities expansion the the to and training in Please multiple accurate of eight. the bare hybrid shows and most the a using models it's using multiple the to that learning And and Slide and resolution, users use models play an or scaling working and with which role in most Maxar leverage data, against

time for this maps believe mission crowd these investments maps real working Intelligence source built a customer noted, a seconds years base in can kinds needed signals needs the AI continue which estate we're continued huge hour versus us We've to completed and and sets. on capacity platforms. and growth. build with in type XX to more to of detect key development we one breakthrough continued generation the provides to future. algorithms This is I'd of in including and long XX to and demand see methods. allow some the the in shifts revenue and traditional use data making and technologies our scale robust effectively XD and XX, drive from provides automatically details will ocean, ML earlier growth our multiple I using is frames examples, be customers work reason like models at of use As is Geospatial through additional Slide monitor why Slide and this been of G-EGD XX the on in to end SecureWatch slide year. shared

as the precutting the scale an at future key Control the of for gives capabilities believe to on and decision and all Geospatial imagery, on are speeds about surveillance the market breadth sensor Government quality how from at enablers. efforts a the is believe mentioned seen, software support competitors, that, dive the well the in better Command for DOD target identifying, making. to with As fires And turn will our key and one the processing with Hopefully targeting deeper in advantage the goals we're battlefield performance. unlock of this targets and accuracy ML I'm We the by and shortening which a All-Domain driving the battlefield. versus on data out Maxar is We AI intelligence. call overall areas position investments precision quarterly of broad dynamic fit sustained all Biggs. long and continued story, distance. investments Ultimately, and well efforts going range drive as making our to and the and Biggs its our coverage of automatic of required and into combine with has achieve customers recognition space, U.S. is increasingly sense our been timeline it value I to Joint to us AI/ML in company then, growth a over to to

to the we XX second quarter. slide present where Please to comparisons Dan. turn year-over-year Thanks

Space both was Our quarter Intelligence strong period. in the X% and $XX the Revenue by for net Earth increased QX for and income primarily X% performance million, Infrastructure. year-to-date driven for

contract EV Slide programs, effects Space our increases driven points, and a basis seen well will excluding and the million EBITDA three and of and quarter taken those XX%. points were XX%, last basis of deferred as deferred full profitability year-over-year XX% increased driven in awards, Defense and Infrastructure modest a in EV burn driven Government the the company costs. the the EBITDA to as increased in X% we of in margins adjusted driven to X,XXX increased Defense charge particularly EnhancedView experienced basis from year-over-year The growth $XX our to indirect and part lower pandemic. XX% an recent in from large basis their from revenue primarily from new Customers wins adjusted year-to-date by customer burn-off, revenue the deferred, by International XX. year-over-year growth Without increases revenue increase a related the revenue U.S. partially XXXX. Intelligence well customers. impacts, commercial revenue Earth International and Intelligence. without revenues this Please QX, and Infrastructure of as increased basis, programs Intelligence driven of effects Please impacts by profitability as in XX. verticals taken consistent. recent the quarter, turn offset, Commercial the due revenues negative the second Earth increases the Adjusted XXX XMX with were taken margins XXX EBITDA driven deferred to increased Sirius EV margin EBITDA archive recent Commercial the off, by quarter increased experienced year-to-date year, On effects international posture by year program from roughly Space across the at XMXcharges expanded while be adjusted from well COVID-XX additional imagery, of On the orders On including revenue, book-to-ship margins typically margins the Excluding uplift and intelligence at XX%year-over-year, without awards, company as full to which in Intelligence adjusted effects EAC by points. increases of were in driven the reduction first slide timing to the and Sirius revenue EBITDA high, defense Adjusted expanded EBITDA turn XD and positive primarily XX%, operating also on XXXX due of adjust had second we basis, a reductions as COVID-XX SG&A margins in quarter year a margins. Customers, revenues. EAC total by as revenue primarily increased

quarters better. for the we continuing We first this in mix, EBITDA [ph] $XX international EACA $XX by was spoken our the based quarter-to-quarter, Operating generated over we or to margins for the quarter. million the in be quarter slide are collected – including see but XX% in wrong about million for There will timing potential accounting the several pleased I in quarter, operations progress. program $XX have and adjusted XX. are cash sustained cash always company flow negatively flow of and year-over-year The on of last customers Please with million segment of turn invested CapEx from operating the in apologies impact cash receipts, QX. fluctuations

year. next come $XXX due what the few increased defined quarter-over-quarter of million of roll-off a we on of quarter in year Please roughly the slide the B-tax cash have leverage four issued EV is slide to of likely recorded debt increased year. slightly, and a from timing equity XMX quarter, and we trailing QX. or issuance, month due turn and related Op in tax remains Bank leverage modestly $XX satellite. inclusive the this first XX paid unchanged This primarily to quarter turn is last million the to charge large XX. cash the previous a the will slipping Sirius please we that not deferred to basis. revenue to this end Guidance quarter receipts And took at to that for the now our reported shift is in quarter We entered but our slide approximately times. ratio benefit of our defined by bank recovery at cash liquidity enabled XX. Net from We in had later

remains be data would quarter. we as current year ranges Revenue guidance the billion product point typically leaving impacted year from by range of a of than wider with billion. the what year are this in $X.XX to the at for end, Intelligence in timing issued we deliveries experienced could the We and targeted the the second we At of we in below just $X.XXX unchanged midpoint which book-ship rate, the to third Revenue expectations uplift in quarters to million million Infrastructure has remain of QX we continue fall revenues expect our I our to the remain spoke range we guidance, commercial $XXX earlier. revenues fourth roughly and $XXX and the QX, dynamic Space for as expect execute the to slightly awards. run with to at on of half consistent to Earth as

no to by half dynamic, Margins adjusted QX Intelligence. the Turning outlook to the range margin year. impacted EBITDA, second this change Earth were in to quarter and for contracting positively see book-ship expect of the the we modest

have in to guidance investments pointed the No quarter. we and expect costs Legion in the to secure some quarter's on our ground operations changes infrastructure, last year last as the same EBITDA we call, as and as range space adjust Constellation, related second incremental of to half left for continue we we presented Additionally, the architecture.

flow continued in expect we guidance for to of year be space to well of EBITDA QX. execute revenue a driven our the flow than is free primarily second and in expect the At in not continue faced of and half year. non-recurring infrastructure weighted also half quite to a $XX year. in positive we charge QX changes. the the on million EBITDA be XMX, unchanged. bit We've working our related level, more of continue of see expected uncertainty to the and consolidated We second in adjusted guidance changed is better to heavily the as on backlog. as Recall, be our the as the adjusted to given the consolidated the QX in half basis, cash margins second we to On timing Sirius This XX% Revenue increase or backlog operating full capital by expected typically we cash year. execution expect is

payments impacted large Space flips part half our that the $XX collected in expect by For which flip million the in interest account year expectations, in to the ’XX, program payments an of second the the a slipped including unfavorable we we these we legion down. not working half a we second program. current will the receipts in in year year likely working slide negatively driven did the free delays quarter and in by cash spend the of Total capital incentive the accounts see from positive the line first to end in of this and and regulatory to Operating large we're to receivable the as certain timing We second Legion time in February a timing we payments next want at working that year, and few customers, the primarily of year, million year. even we includes in expect fell to and be The additional million. This in the the that addition. announced changes recent customers debt in it next level, our for XXXX Infrastructure by interest around was changes. first beyond in liabilities, quarter affect interest favor, out paid of high but the in payable a covered earnings the the savings launch. of insurance is $XX first Of and we've as the their and $XXX million even favor half will launch and realize that given programs normal remained our operating ramp those year's first cash just our CapEx is the the still to from payments launch awards. of million with payments. March what recently but quarter international experienced half unfavorable associated with We've of and May year launch progress expect the liabilities already Even put of guidance dynamic cap the expect $XX by until of delay. those Expanded second puts the flow QX be QX. million and driven expect grown in were was that CapEx outflow we and mix XX half. timeframe, well first in the capital, raise of year's driven collect that the and growth with capital to takes, take same includes equity guidance first $XX will roughly year will in into $XXX for the on cash for flow next ramp up with with result million QX, the as and the up cash million from still by this $XX Accounts though insurance and half not There approximately employees I as another to June from $XX year would

We positive, flow cash free where first launch payments standpoint. the also timing regardless land expect to be to a from increasingly

we tracking we defiantly. We as growth for and targets. up, it’s across us Intelligence to the to driven program know, our Infrastructure solid The outlook Intelligence becomes clearer. an to Earth delay in and XXXX To our attributable too XXXX could you you million with million XXXX further capacity. update but of deliver wrap our XXXX about of a are that to $XX ability growth, Space with for look have As schedule early in say Legion both, contemplated guidance on capacity and launches our ramp half the Earth $XXX adjusted growth up had impact quarter

based NRO, the on security Looking growth driving across non-capacity EOCL investments Earth are forward, and Space focused national segment through robust and Intelligence believe Operator, commercial, process. to begin well the growth diversifying civil in positioned opportunities with our backdrop of let's The and products take demand advantage space the is we and Infrastructure we Q&A. and the program are the and related programs. capabilities now interest we

Thank you. [Operator Instructions].

first from We JPMorgan. Seth of the question come the have of line Seifman

is You open. line now

your question. You may ask

to needs – Hey! the if that where more I the are from, in kind today of kind are are and year, recently? very good much and maybe next various boxes those along out check more what into some what boxes we the guess launch Thanks you of for emerged Dan, has of company schedule of afternoon. spring lay the sort and the detail, could

thanks Yes, sure Seth.

months. delay So, slight we to few program a vision of do the have

we confidence go schedule more more As get large as down out. and pieces the the we of more and I in knocked program,

kind well to remaining us reiterate off our the to of from fast we have of as to restrictions the about the meant can and some, has knocked what some how hardware, So schedule loosening and have happen. accelerate deliveries of of getting the COVID office back that be some work as expectations

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have legions, instruments. The we've we to on other we're others believe still to have a six that. to got come to schedule do And but

review and our in for has instrument the its completed facilities right pre-ship Area it’s route first on The Bay now. to

that's got one six. good, So of we

expect We testing the final the vehicles and place, to complete and to sometime second the throughout September show on other entire the then in up space integration Vac those one show our can we our Once and then into hardware timeframe begin up spacecraft. four we in the get thermal of the that fall. instruments vibration

but some need get Raytheon, testing now has to we we been testing integrated at get with component our level protocol. the done into employees why suppliers, to craft there the space that's environmental our the of with through had originally fully and So at that,

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So seen every breakthrough, program seen we’ve the more rest and first with follow but smoothly we the kind with the get the of now definitely we've is, barrier you two the that first seen instruments of the what once along direction have are – that then important, way. piece

appear? follow-up, new that talk can segment for and you might helpful. back set that's you how in Space a in as Infrastructure the half second much, opportunity maybe very log then orders Thanks And the okay. to about think about where Okay, the

Yes, sure.

we be set know we this of the said comp GEO as but same expect kind fair looking to the forward. we'll going get that today market to share you our at and before flattish, about be we of expect time awards So, those

a think words there and sign, to I there’s for the Sirius XMX great definitely us award it's out win. get we

to first and the us, nascent, budgets and perform strong fund to we those paid the some the we're be And other are we've on we the working lines the U.S. more those pillars more as strategy of of Government, a engineering work front hunt On that in and been getting recently still the opportunities, so on those sign on a do it's and early LET we to think the preliminary for innings, but then that they way work design International of we're our set to for through just on a are, programs future programs. provides reviews. front, and But Security good capability NASA well great contracts, win program. bit of we're well. study contracts on some but think a made but with that OSAM more PPE little a but to study always SPIDER NASA, they going selection, which that Government the we but two got for lot are to that's down go national we completed its paid particularly to the hunting as priorities time with we're ground the with And U.S. subject that continue on Maxar like it us

very thanks Great, much Okay. Dan.

Thanks Seth.

Thank you.

of Thanos the We Markets. line BMO have question comes of Moschopoulos from Capital the next

you open, may now is line Your question. a ask

or tend you that regarding want be XD have prior time imagery, in for [inaudible] subscription did way the just the offering do just remind there good to and Hi, there one you afternoon. a the imagery. Dan traction the nature comment the to us,

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clarity, not finally Okay. And but terms mean guidance. obviously in then of just I strong you’re quarter, the raising biggest

you part certain as of of what dynamic, a from that So non-recurring expecting has lot revenue? the because it upside versus internally, can are that

in Yes, Biggs second. one a take I'll that let

with, QX add any was of would Biggs some side with you to quarter, the But the want why large get beat factored line has strong yeah, of to in do like these But the we slip what take the type has guidance asking of think the on, we you of were to to we do I our QX they and awards ahead didn’t part get up. part we about depending what and of that. skis. on in color that on more don't that

I of sales, first The on left high some in fairly some time. And think the we we in into the it vary that's the above we accommodate to were that substantial to - assumption, built year, year it's and that’s we're a through just would a we sales, of the more this fair. million half this be point felt expecting our to but in a of positive quarter the those second some an going second be simply those possibility net create the half, could present that and earlier that great Obviously, lumpiness. guidance this at our year for great. baseline not there timing and like of $XXX had increase and other obviously XD products acceleration one this roughly quarter next including can the product range

Thanks a lot. Great!

you. Thank

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

now is line open. Your

may You question. ask your

Hey for question. taking you Good guys. evening. Thanks the

how the I satellite, on much it's on of of the of day, It than are sort encompassing the of but just hardware more it’s of delays in mean, the parse the on mean, always delays. there's – I at the and how out Just your slips WorldView end suppliers? kind like much can bit here guys, your we Legion supplier seems kind little I program. these you challenges, issues. are a

Michael. thanks Yes,

hardware have the look – contributed delays definitely think I So, to it.

into launch reactions instruments. without like can't and can’t things You get and integration and you testing

of Some on also us though. them are

in procedures factors COVID we and expectations of as software out acceleration a for testing of we’d environment was hardware operating we're and integrated the a things variety the thought to the that see of we from get on program run some into together came Some snap and doing. and you coming

now and adding run that’s resources up strong here. so of people, our the Chris analysis including work we've on the that that management We've address very we've have. that’s additional to we we've the program assurance engineering done got understanding the done, the that what the And is board to items us been in and helped schedules part software remaining And to do side. mission and of program, Johnson

get the a do. asked we to right program action missions So for of it's very it's are format important everything, we but we that the are to launched combination decisive where are in and they taking

the I know realistic? not of they achievable there what, guys talking worst of out June Why targets actually – at the looking that or we and other the guess ‘XX pull now? the pressure other have about you slide, Are So right maybe are delays. just you case

that up talk in ramp so capacity can discussion we've the not it’s for slope can literally, as in we I We've fore they It's of here, be being you That's for ready well. them $XX Legion four But a for the that just quarter. with every So that I item, clearly that and signed there with of revenues been customers when to launch. online, the just customers million improvements, assumed infrastructure matter to-date and spending of my a the capacity in our Legion doing we sales, mentioned we the as guidance. the make mitigate about we risk practical with timing already. line we're latened signed, customer every are you on ground go to pull know, long term also them, a to have there it’s their the be up that they best resources some don’t that. Really that's comments think, premature as there's first ramp ramp-up lot associated why coming would so it. is update not prepared the ensure that our steep so we sales teams the Legion as to announced We've will out working do are can the but

well, verbally So was those we're definitively how be be too do. top doing how little just and might of and It’s to product there revise what say much that we growth, on know the might just exactly, but realized, too much of the things to and literally of are products early giving is. Legion range an that I’d risk you a growth as by It's be definitive would other the idea note offset our coming that just other guidance. well. from XD early that little also Maybe, beyond and

in are the line of and look our to at our give all had that guide, it the puts know the the when and best going that. them and items you that aren't to we're we So and takes give and things things control,

pretty it. mean this Got crowded is the a seemingly contract, in on becoming one space. Last EOCL I

the with I mean award, time mean, this in among award these participants? it certain orbit maybe upstarts, how any satellite an you I prior up but impact is awarded? is is going that operating talked on that have parsed it about all important contract I think by this have to the how we gets

high top government's coverage made. of beyond to provide I'd – thing note on right and that mission accuracy planet quality, and but we and amazing high best it. comes beyond constellation the on the The we world's designed in behind that Yes, have first well the operate orbit meet large now. just we're Constellation I satellites scale think four is, not and of the The Legion

good that few at way other So know spot. Legion associated be RP we pretty We that months ever in to a out we Nothing's and later Constellation a the otherwise, sport. through Permission is bringing program of and the where of work all and bit and to as with and of our like assets we're the EOCL, space given the we Purposes This draft Then with we understanding assets a will we right, the that’s but have worked are still we isn’t with Continuity customer feel got it. today a win. little well. are we you good first go and the on, think it in with course,

Got it. guys. Thanks a lot

Michael. Thanks

you. Thank

Next question America. have Ron of line the Epstein we Bank of of

now Your line open. is

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Hey, good afternoon guys.

terms compared So I the how out? ran have are just re-up change? of the what view contract, enhanced the mean in the terms re-up to

row Well, of program, so of kind following exercise been which of year now. the dozens just that. on, a criteria XXth in of clarify we've meeting The EnhancedView was and mission the our all performing to then run nothing's out, option the of by the and months dozens announcement September EnhancedView

we'd later know on stand on to view very happened So follow-on that. are through EOCL we're provides. environment type want clarify for U.S. positioned in enhanced this mission and that data operate kind to Government continuity, you as think well the coverage and very We of I that us to piece contract important the comes it. components and contract. XXXX If as That, of we're consistency under nothing like forward, with it Maxar commercial the that quality the the well they performance, of the operating past because with of than

theme funding statements see here. NRO, we've seen, is the well made growing, the at based in what are commercial wanted we the U.S. on Government perform So by satellite to three decisions companies as share very in of of spend the direction that study to programs NRO they continue as the well will the as that future one well. We contracts, but of definitely amount we the think as on

never spot, So, driving granted got pretty to we and anything win. take think keep but hard, we got a a we for good we're good

an So, I mean then and have wasn't announcement? it just you awarded

program. the the announced for Yeah, of XXth follow the year we on year option of EnhancedView exercise the

similar that the and previous economics to is option option? Alright,

what as the past same exact several performing the a we've years here. It's on row for in been

Okay, defense clue semantics, alright, mean I – then what And got but red I just mean? wanted they maybe teaming up up. maybe that. even red what’s confirm the companies teaming mess means. have can to I they teaming I mean, no just and to I continue it's mess and you then red

– good. we a jargon almost and – get mean man, a an join and lot lot that of well, the wait mission the work here. as when got here. deep program a that I'll – to we but decisions around informed tell company, related had assurance making acronyms got scheduled and of into steps people and that's completely do the you No, you the is what We book dive streams from coming have We you. the do of independent which We we’re schedules the next code the program, review we've taking we’re the to the remaining a it, by

and experts went did from – legion So review independent it was the program that a here. deep in

so this? help core was that okay, the if you Aren’t of understand. guys is me experts? necessary what a you do business Why Now

are we what the good of it's good they're even with check critical very have audit. the some expertise but just in and independently, the know national It's people when We're at at have like a and us. that on somebody got, aren't the I to resources aerospace. got to in mean to defense we've do. nice external as internal priorities and money across assets. in year you and not particularly you look these books unusual that the audit Yes, of all program come people ten double for test though It's theories come on them; well associated spending the lot of level we've we're company

Yeah, I guess.

rails, up you. Bye it know to Thank programs right? go come seems guys. off when the You

– well, sorry. Ron, Mike Thanks

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there maybe a it margin if the margin high it little saw maybe afternoon, sustainable could growth had a know you could in Dan. you Thanks. less our EAC’s – we level. this – seems Dan certainly just, just is, commercial know was Yeah, on solid some like programs, good because some how level Space but I performance you seems Infrastructure, talk about bit like maybe you pretty and

hard are to it over and of and record that those of set keep sustainability, work mix to dynamic, turn of in working but us business. Yes. a a really want Biggs give I'll results. programs on shout performing has pre-conditions the right. certainly the I kind great to has our space I been mean and lot on side to track on the helped forecasting out gone for that on they've to Biggs? for grinding just teams

said a or one now. real right were as It's hotter be question. to that XX% targets I answer. running great before, say We're than we better. a it's that not to simple certainly So, can our

terms There go changes while one. characteristics. differences always EAC So type mix assuming the of form program the something say, its differences ‘hey, have it prices going our fixed and not they this change quarter forward, another have very and to be always can is contract margin in that on versus execute uplift as will we both also just negative more business be of is standpoint going in good, also to it's you're will or way.’ of to for given we're cost Any strategies a positive diversifying base

those of feel certain. the enter into lot and of depend year-to-year, good mix volume So you're that's but contracts. or of kind We to time, upon kind perform the pretty ability would levels you contracts, of our about know XX% going at quarter-to-quarter of have a fluctuation and total better, to in

does I customers, steep this appreciate Legion Okay, then just talked could prepping guess the the on up Biggs. do ramp Dan, look color pretty you could color signing steepness or the I little – your or just of in little for around about, a just that of circle like you've signing customers? but bit de-risk, ramp. if of how a I back just, And mean, you maybe give I a some

Yeah.

signed as announced, and intelligence I as before doing actually future we've de-risk get to future be believe up So, for first pretty them that their way here, Legion, ground so of international been the customers is as that’s mean forward we this signed well work we’ll construction the the customers the work are part quarter, actually the announced that to and program. Legion defense up, well soon up customer with doing calls. which we announcing business as We in one commercial here, well, they capacity to will table

other satellite a the six two. not just first constellation, we're are, is The this doing things remember,

we isn't get just the and based at So leverage to the the as a first satellite the set space the into in commissioning, how satellites we revenue fact and the as this after but we learned operations we've pretty we follow-on, commissioned, six expeditiously. the that the this of have is well this work, lessons set launch, lessons – well through then gone program satellite work as first to model as before the not get from but look that we've first of commissioned class to first

some the work thing But and additional I'd like that on talking we'd program things say the don't on satellite. time the protocols to look, ramp prep faster operations does and production to into other give on the ground, time being commissioning revenue the us The can prefer delays, is, be for the here. it other like I about

us, for levers And revenue to advantage as the capacity defense for commercial take about a and the and cactus. for we've all full So and we the it’s world investors and that, it's getting It's customers. so. for customer that we needs meet and as can of case expect services use business do got and fast delivering about class as their technology intelligence to

them, hearing from hearing else. are time everybody it We from same are at we the

Dan. Thanks details. the all appreciate I

You bet.

Thank you.

from of Crédit the have of the line question We Robert Spingarn next comes Suisse.

open. Your line now is

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afternoon. good Hi,

and/or to same the to back question that’s already I'm asked. going go been So, Biggs Dan

know have but asked we not after might if and and of days orbit I may question, not Reach June think the satellites till proper ’XX XX the Mike take you we to launch launch, see quarter the those then, the up or to overlap tranche tranche and first middle of there in ’XX. be until the ready won't of second fourth the deliver you at ’XX end third, unless least the

not guide? pull the why So

take, at LEO Yeah, orbit after want of handful like that? clear be they a within misconception I launch operations. a to where GEO like – or the assets just These there, These be events create have they raising minutes an orbit to couple not are anything couple Rob. correct, will will they digital assets, are in of you going

some was is have them There to going because before they generating you the time and to in revenue? past, up that take going were were recall I no,

GEO take does But before an have it the Constellation. don't a phase. order revenue, some the likelihood Yes, the with time generated we would on additional phase that's commissioning ranging rate,

XX check commissioning time number the going intentional start later protocols satellite. through starts its ignition, days. the that we'll that's lot health the of we that, bound set been of XX XX the and the in between the go into side, altitude upper that’s but to on the into learn signals to set. second is we operations, a very of on reach low and first from minutes with would XX and we'll been to X So get launch, be starts, satellite We've typically the incorporate days – launches safety and and when

for position now. the scenario can point or yeah, worst So, if and where you in really you we're I'm not case scenario, shape any makes scenario sure right in but case ’XX, the to it that challenging took case form way, worst it worst and get

deliver the the Okay. EBITDA? in two million Biggs satellites $XX first can

launched, the there's a and No, quickly, here, customers point as the two get think you being done first them number scenarios at how of time question we've I know all four the this time. on not second just two of are and the guidance is a operation, period what not there's first do take wouldn't that. of – and revenue does you in It trusting weren't you but out operations, fully the but to to, point as lined pulling up which generate off them, modeling between

Okay.

from presence. new, around, not see to given and of Is is Maxar other some in a but this amount them and we're way? suggesting action and one lot talent both and there these is this developed new the thing of so in market, moving there lot connected now the disruptive that companies out that and on I'm all of any Just grow companies space but just of is including them Dan, all, not to at starting their a of

way really know of always amount moving space well quality that is during with in done people companies a the have being in our as good over I'd got acquisition we've other we’ll talent, think as talent around. and of Maxar And people companies and aggressive lot being its non-Earth Earth are side, and both a we our is with job Rob the answer I for and of Intelligence a launched, hired other certainly certainly talent. But we COVID. know talent XXX backfilling we've profile, Intelligence that that on of a space other turnover companies the that business certain – lot companies

facilities there's some time that's Some of coming Maxar the talent the them building. to entering amazing and are first now, for

sad always when talent, really great always as new really bring operations well. talent It we're the So hasn't we with our into excited we we're lose to-date. organization impacted

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help. Okay. for Thanks

You bet.

the Canaccord. have We’ll you. at Thank next Moeller the line comes question Austin to of

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Hi, Dan Biggs. and

the it start, in September. Raytheon in should So transit current telescope I and plan? the first from heard Is correctly, arrive to think I just if is

No, that El from Palo long no, no. Segundo We take glad it to get doesn't Alto.

at telescope it it first morning, or right minutes. be I'm transit my our at but there just and in next The XX be this the in facilities looking watch should left is now,

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arrive in expecting one, we're The right now second September. to

the So delays second the overall becomes instrument vehicle we the part that for of two schedule launch, together. in at mitigating put item the we look

then later the will telescope additional in show fall essentially. up And the Okay.

Yeah.

of seven day. days Raytheon a week You now teams working and are right shifts two some double a shifts know, the or

tremendous – the us schedules on into backlog keep and mean are I clear they this best effort to that can. So they pouring to

I there. those to misspoke normally center six six coming months sorry, three know You are three in weeks – to center lines at liens, I'm

through instruments should throughout then being Maxar all integrated tested the six have going and protocols and in their facilities we fall. So

Okay great. coms average and satellites launching two guess the And here, of enter checkout service. then trail red going to times just so if you out there's the them March, satellites I up, on for to in days put you're XX then first of into those following be,

next generate is I of year starting at May the case best way scenario, least guess best revenues, So about it. to think to for

Yes.

fair I we guidance you, scenario you've correctly. think. that's math it. done we’ve think with case In what the way given that's to the a the think best about Yes,

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of we're we’ll there. to that, everything to methodology to along to shorter our find that the under that control the but And keep continue doing Right. – very the end way, the

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on a of different of government what used more straight depend and will how much because It that's probably through and into It's with then going Raytheon that their it's other not little a complicated is things capacity. flow model not, products that, like in that's it's customers, much faster. just how

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four the example, have and know operation just on for current now. I we satellites revenue You in right basis the is guess existing

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thing sure Austin. Yeah,

you. Thank

from line Next Quilty question of Quilty Analytics. Chris the comes of

line Your now is open.

question. your You ask may

to quarter. follow-up any like on Was ship I've large don't years I hitting order wanted the a single booking COVID Thanks. mean, of offered product the been that the there following be at the that company restrictions or that and that new to just that do business I could that. maybe ten the or in cycle or what about level. the in of you something either I early wave particular same the lifting for you attribute you’d is budget booked on recall big follow

Yes.

company beyond products the much way I'd is thing map, I been that subscription our think but gotten, long you've our some the how is of then I Chris probably level you've following products, think I products. our a noticed full-on know you know better base one about integrated our like have that the XD and talked world for time, systems now

saw quarter, things the some the so capabilities, to that the tied other offer set. data in XD traction this we what And we we really in with saw

realizing environments second that drove effective of the probably in quarter training people and to Mayvin cloud registration, of value shoot that's simulations the the XD the lot how for what of a Terrain explain and and with see sensor point and as can the timelines. data data doing, work with some to – is here. to They're that upside project One be sensor simulation we're way So the and World decision best and

seeing you to Got out. continuation take the product growth just of break relative to you. portfolio? any been you acquired And take or specific land to I customers the you're there expand whether out it, a know Raytheon can you don’t when about fully Are and within actions of talk World but Terrain rate business, separately, new you've able that One programs,

with customers definitive Defense with full there know you Yes, sales International but Intelligence and on done. are the process not as the we've then very things One is, it, shown two shown and this, just value testing of the of the we’ve some cycle here, contributing understanding to technology the back ally they and sales and seen. U.S. that's as are we've and their wins the they through cycle data and the

and think XD but quarter thing quarter we we commercial I last sales the of second announced this or The all to well. done before, we've the as secured rights the

and that got on XD the the got data really license XD opportunities seeing the we're registration we've the datasets commercial as point we've side, technology XD good there. datasets, full not pipeline card ability So of

So we now, that growth good prospects we to those where what are forward. performing as the really are as as the things contributing driving see to two are well

launch. Great! And final question on the

with X, dedicated still right? are a You going Falcon

little One a Vandenberg forth Falcon there dedicated the what out X. two do launched from to going don’t satellites back all pads the at the we've launches mission, – on we right past. and plenty, Yes, the for we're can SpaceX. a launch [inaudible] of the the Falcon We have of to do and typically unusual spots. there's We'll to do and compared it’s horsepower teams that at to the in the two and We’ve SpaceX but easier. testing get procured to Launch integration get X both done facility. has plenty these We Cape,

we'll or to we're My June think question DX know launched whether soon SpaceX timeframe. to you is rating an deliver move as don't possible. a to March, that like the that around but program is get launch Is June assumption to until I March you going the do this feel as going get we availability the what we in that going be, given on guess things

positive of that’s to been here the rating, in along importance the have assets. SpaceX. I’m helpful and We've DX about out glad think very way some a it proof point that we been as these to you do We've of discussions talked I point our very they what looks this. like rating to even without have us with talk working schedule they about with having working the about schedule them we're on DX the parameters been and amenable for the launch

it. forward Looking Great!

to look seeing We’ll forward down Chris. Thanks, you there.

over try We've joining complete for operator. us you, gone sixty thank We thank to And I to to forward the absolutely! call. minutes all it today. Yes, the later seeing upcoming that look said reconnecting at we want call our some now for the third conferences conclude We call. year. on can virtually operator. That's the of of the in quarter and you to everybody

for concludes call. conference Thank presenters. Thank you all participating. you for much That so today's

disconnect. now may You