Virgin Galactic (SPCE) 4 Nov 222022 Q3 Earnings call transcript

Good afternoon. My name is Bailey, and I will be your conference operator today. At this time, I would like to welcome everyone to Virgin Galactic’s Third Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. now Vice turn President would to call I Cerny, Eric of Instructions] like the to over [Operator Investor Relations.

afternoon, conference Good quarter you. everyone. Virgin to Thank Galactic’s XXXX earnings call. Welcome third

today On the and Ahrens, Financial Chief Michael Chief Executive Doug are Officer. call Officer; Colglazier, me with

prepared Michael we and Following will for call the remarks from questions. Doug, open

Harbor see remarks disclaimer. for our Investor on Our and presentation slide available presentation press the that website. are Slide Please release our of Safe will accompany today’s X Relations

we as During forward-looking risks These are call. call, from could certain today’s may expectations forward-looking materially statements. differ factors to the statements this make current cause statements on and subject to on actual and Many are a based uncertainties. assumptions events and result made

disclaims risks are please Risk uncertainties, put information not For by refer filings the these Readers more that call like in undue this Factors on Company may that, to today’s would any With non-GAAP that turn note now Galactic financial statements SEC be about forward-looking time. cautioned the Michael. will Virgin certain to we call. with statements the and filed Please Company’s the the also during information call. I discussed over forward-looking specifically on to to reliance time to to the update obligation to refer from and

launching to XXXX. and productive making of progress significant flight immediate service second quarter, of a third afternoon, everyone. We returning very had Good on our in objective quarter commercial the

long-term We to scale also objectives our business fleet. our continued execute future on to

today's Slide X and to Turning agenda.

ships, fleet enhancement on efforts, readiness on our We program future our including development. will commercial progress with of initial our by update the followed an start

will financial over quarter. the to of Doug, call the hand I'll provide a who review Finally,

So let's and readiness. turn Slide discussion a X commercial around to

commercial our service, significance of approach the an customer we Spaceline providing base existing back and to unforgettable business experience. the recognized of As with getting we

our flights. initial program ships. progress and great is test Unity is our complete ship Work we quarter, the the VSS on commence During on for enhancement made to ready

have quarter. VMS We completed tracking on in to Eve are work the fourth

the rate designed the reminder, modifications service. flight of durability a frequency for a As have significantly made both commercial to ships, and higher improve we enabling reliability are

photo one As the see final America on program Slide application the ship's enhancement you from delivery. the in Unity's in Spaceport design can of of X, steps was the and

With complete, we launch installation anticipate maintenance enhancements the monthly avionics support the and to horizontal new has cadence. new systems have completed, Eve, flight and Unity's wrapping now the been installed, mechanical upgrades for been needs ability reduced the stabilizers On to of spaceship a up. pylon are and

if the on the January, training VSS specialist flight Eve, flights test New astronaut verification The are Mexico now Galactic our shortly crew to of experience the various assess on will before, first of of early spaceflight to of program each Eve preparation successful will a board. we Virgin to expect make to its for with a refinements After base ship task. and flight Unity, then glide for commercial occur thereafter. completion process in the completing to returning first final of flight test the We Subject with home task, not in mission elements and final passengers. move our to we

access and our communicating service our Force Italian sequence our key journey, minds product membership is the are Key generation of Wyoming. offers. with and is spoken for that In the spaceflights. and Mission, astronauts Space always, interact members the as both The our followed events to weeks, coming test begin This private able on lead when and We a the our their flight our future astronaut late is September, regarding our Curious is for Air to that friends to and brought the space it unique this flights family in for is enrich members for and astronauts fly of engine. glimpse hear As will their with anticipation to following past key life-changing with about assignments Slide of and I've decide to astronauts. the approach as Galactic, Many community. future In programming retention summit customers’ event iterative, marquee programming we and differentiator held a they future and the something Research other membership commence that methodical us. we in images founder of test a with inaugural for value X our by team it expected their commercial community exclusive to customer's our and flights, the feedback trip to interaction continually the provided and is astronauts Virgin designed in differentiator customer who customer of community space. readiness of the dynamic foremost journey.

important. excited space, us incredibly our bring are which them grow our astronauts of so in future is commercial to to critical XXXX fleet. is for success of to launch Also, ability the is why Our QX to service the

So and Slide X to our turn future let's development. fleet

materially company. revenue production As These the ships key profitability spaceships, the growth intended be you with of and increase driver for our we the our flight Delta shared Class, will before, model to are frequency.

sub-assemblies speed are for market to Boeing to Sciences enable We next Delta with subsidiary, shared Aurora Spaceships. with agreement and Last generation announced of to aerospace we vertical existing our greater build our issued our for we the had ecosystem Flight a that operation. we leveraging motherships, Class proposals quarter, major than fully request

aerospace, have Textron we as Delta two primary Bell companies Qarbon selected Aerospace our ships. and very for suppliers experienced the aviation in and yesterday, announced As

aerospace companies Work including design Bell team XXXX. with wing of immediately and efforts targeted the retain Galactic production, for tooling will aerospace system begin strategy the Qarbon Bell X, with The with Textron's Aurora, is and important Qarbon and production Among Virgin responsibility begin caliber. system in new and be for technology parts will complex will Flight initial we are and authority on these New be of and spaceships. Slide the to will supply forces facility composite this illustrated will architecture joining our integration complimentary for will As to relationships in attributes, surfaces. produce control acceptance overall technology feather assembly Bell propel used in and testing our on known Final unique feathering Along expertise Textron test in many in place Phoenix, the aviation, fuselage expertise strong tiltrotor and Mexico. components. all at its our new ships Spaceport the of excited to for America take spaceships. is Aerospace, Arizona. our constructing large, and done our ships and flight of

Aurora is Regarding also Flight our progressing our generation with well. next motherships, Sciences collaboration

for With coming We the testing tooling phase impact pace ship our and demonstrate be the first resources our Unity the to I'll second our commercial to into Delta likely over XXXX. the focused next ahead soon track and the fleet. moving in and line generation the the the customers begin its flight of the to flight remains in Prioritizing this now to production of future on space mind, Doug will Simultaneously, work of mothership engineering proceeds efforts and update work spaceship, financials. call an the will we consistency program to Imagine, VSS product. off value on we against and reassessing Phoenix turn are schedule our bringing of we in schedule are these of our are on service. important to that significant begin Eve dedicating for resources on entering launch

Thanks, Michael, everyone. afternoon, good and

to Adjusted recognized third quarter. quarter, research Turning to expenses development Slide the The primarily revenue increase to XX future enhancement and driven the higher in driven costs. the third the compared the negative driven higher prior $XX warrants We $XXX for compared million in million higher fleet. prior and of work reported the year $XXX was our for favorable fleet is of in R&D compared fees million costs loss results $XX $XXX,XXX event quarter in generated the and EBITDA in in astronaut change year and by GAAP activity and $XX prior were value fair the a million future million, to costs R&D $XXX prior of in R&D period, primarily revenue year. our financial the membership period, our by activities. by to negative attributable for tied third We to the Operating million year period. net

cash compared to spending to flow less of Free is negative $XX costs. Moving quarter, XX. year. period Slide higher R&D the million than increased largely guidance last the our in due same low in million to the slightly The negative is end $XXX

business. intend and to strong $X.X billion Our cash, with investing securities. in prudently the balance strength remains marketable that while We maintain cash sheet equivalents in

stock million shares we XXXX. the common the quarter, share our end gross approximately XX.X issued issuance At of the third X, During of raised through August as part $XXX proceeds outstanding shares. offering was XXX.X million quarter, aftermarket in million the of the count and announced on of

While for approximately the million was third XXX.X shares. share the quarter weighted diluted average count

closing For cash to that, for be range the call fourth quarter, With in negative $XXX million back to the some $XXX hand comments. the we I'll free Michael forecast flow of to million.

Thanks, Doug.

astronaut-driven As one become we mission this our milestone we what that be team, launch our recognized service approach advances for an XXXX, of in the QX significant Spaceline. commercial will a to consumer-facing

infrastructure and us for in invest transition. to continue to We that team prepare our

begin in and in structures second to to that the expansion. place service with and complete on in and will and Unity commercial Across our I and of progress making. XXXX. quarter completion, on enhancement nearing now In commercial the right We fleet summary, remain flights work approach am the coming have verification support leadership the are in start VMS VSS confident the we service business, the months Eve we track we

team modification this thank the and expect in out Our first important that for critical Bell time, have to ships done an Virgin fleet now they take our in is well and complex throughout work, astronaut I improved private period. with has have will roll Delta’s place It service progressing XXXX. and for Qarbon opportunity the Delta agreements Galactic thanks with with to ships XXXX the reliability. want for flight hard continue testing Textron to Aerospace, been on all work plan durability to and to future we and this and the enhancement the

we'll that, to to ready We with of turn back the And to are space. all to begin we're Operator, the questions. call. Q&A excited portion get

from Oliver Chen Thank ahead. go you. question first of Instructions] line Please Cowen. today The [Operator comes from the

now Your line open. is

and partnerships. Doug, the and on of Michael the Hi, announcements congrats

you there are Class So that? as or more that supply tell partnerships agile to little are scaling in the as generally, acquiring with bit mind? on previously begin Delta you that we question how And about a look and with happening? to the still a Second look other what Spaceships, Thank environment? us need chain dynamic as should the in terms disruptions have that you you approach you think is initial XXXX flexible key Is working pursued to of forward suppliers, mentioned given we Or in in to you. that looks moments we're XXXX, catalysts production respect such in you this could materials. if

Thanks, and is us for responding. still really, that Oliver. I'd the I'll chain across last take just one. disruption This degrees well. We've managed carries Michael for of Well, that disruption. everywhere, world say really supply

anything against standpoint. a We manage us at we a is market. the So supply constraining chain and it. don't disruptive from proactively moment look have still still It's that

we of companies but the So area see say woods issues don't for in don't want out that, to now. that any right that

good. that's So

to cost see, As and us be ships, the engineers, teams is It Aerospace I very to have in that overall program that through their our experienced ships design excited line design we're outer what said, shops, we're areas Bell and a discussed, really them own way efficient very and design, working but And going excited this. especially you'll to are going we've then on existing partnering way, basically Qarbon mold of the is to manufacture those and most efficient the take designs authority. can engineers our to a Qarbon put same as think modify a take Textron also time means to their And them upfront such some our fashion. a on board. and where upfront those we're with design ships, the companies in lead as and Bell with we very through them Delta the and own in our on modify what very have both

that we'll internally could be and piece So get there have doing, the we things milestones are that done, to that. work for design against we

the used be be then using be get built, as process. build And these happening those that? to you'll materials XXXX we'll will mostly getting partners in materials using us see the the ordering see we then anything and You'll parts the that's toolings. first then in actually material we'll the get add tooling be And to will going manufacturing tooling Doug, order, you'd the to what's built that timeframe.

That was complete.

Thank And experience. – of in you. plans strategies experience in you what Any regarding also been really like demand side And and of the and on facility announcements, consumer Michael, what experiential you're terms tickets? doing? on you and and membership terms you. encouraging demand have and terms a of Thank bigger driving related there a the campus marketing updates seeing have with in training team

Got it.

path the laid out following Oliver. we've generally we're say I'd So

in campus that with on our will coming process continues. the the kind campus be parallel Delta in online think we on coming So design line. ships of astronaut Again,

got way. that's still So a

phase So company, quite in the the primarily I've very forward and future the our Well, to with also Europe, space. that's well. be along in well looking to excited XXXX part still that of to is as going spent a some coming They're pleased just astronauts for as both time effort. in U.S. UK of design but both

we piece going moments isn't is they in are I've to people been major development come we an journey when in Event. with Curious to for how event. call, across as astronauts of mentioned on I first the who the continues your journey. people anchored the of space This recognize main And And our That's future the we And So fairly focused that on. they're you're or this come and to Space are future participated that Space in the takeaway we fleeting how This rest dialogue to it Board as the is. the the for the all down, well going that that our with lives. focus along kind there so call had the for and what helping on important I is a having important carry way. for that memory of still our forward back milestones up Curious astronauts, it of the guests. in XX really prepare on that and will And be Internally, back. right? attended incredibly journey the is And think so their what the XX

right that So and event talk so very there. to it like these we're was to folks, attend feel with reinforcing we track definitely on the

quarter's part. dedicated market. XXX on move in had Now our X,XXX And last calls, people research been repurposed We we of so and shared has to demand, in. as out XXX seats good those had our or on the block the took first we a that and that earnings come

You years decisions may to need recall four timetables. their groups can't experiments the make for on something the ability research plan for and that's for using out. funding shorter They

seats to basically in to feather it's way, those talk XXX opportunity opened the people. along lot up reserve to be and more able that our by to a So able

announced to research deeper with You And they're noticed morning. we will taking use that on train astronauts exploration to on to may that Axiom space help a Space, came out have they us partnership be this up the missions. station going

Axiom found countries, universities, of example. good momentum today's we So in the from case

the start through of network imagine And have of travel Virtuoso. large tickets first we bulk And seats those off flying. those momentum X,XXX with we So a of advisors good get would market. their that's then the as will remaining I

then house the we've see as we'll said, think seats. – there. I where a And carried we've push that's few I So

at have that our efforts and that closed was allocation that price think with research, $XXX,XXX moment. piece had We this effectively to we've right a sales for point. to Virtuoso on So

the with successful sales. very are then flying again, for We next we'll to that. back tranche and space And as of we're reopen

Very helpful. Best regards.

Thanks, Oliver.

The today Please line next Matt from ahead. of from Fargo. comes question Akers the Wells go

Your line now open. is

so QX year? much next than for less on Matt. to you to higher quarter. Yan looks rate cash run good for close the number the Maybe is It a Is the expected used for question. assume Eric guys This [indiscernible]? Thanks it's Hi. like for the

Thanks Doug. This the Yes. Yes. question. for is

on We've the got of both Aurora of enhancement with the the little work finishing a below are the we million period the generation going that quarter ramp like than bit spent mothership. there. less just the that fleet the are the we seeing layering in $X third plus But ramp in Those the next range we So are projected, development. gave. we in on things

So we've the yes, enhancement we've $XXX introduction quarter Aurora test period. suppliers to here, the the and ramp flight Delta then following Class. guided of And new level. continuing the the that's because for got finishing spending the to for million And period of still be fourth we're up million the $XXX then

I've that trend. talked layers about will seeing these combine. you're before So how

ramp service, we enhancement because what we're Next down the year you of see some and tests up, then commercial fleet into and finished it period. finishing going into fleet. moved is initial up flight ramp We've will future on have the the the

net the some peak to closer we we of from guiding are getting the spend. fourth growth is quarter. for level do effect So that see our ourselves of where But

in, coming So it of layers up. kind as these that's are stacks how

that closer peak. getting So to

the dropped sure if to do Thanks. backlog Is more, can like still just If now? are many right. one XXX-ish? passengers know anyone roughly I still out. it All how has in Not

we’re Yes. Eric, tracking.

for the Virtuoso. future took the the, and XXX it's call to signed astronauts XXX of have seats allocated we rest remaining before research, then off bulk that I'll We it up and

and out. And So that that X,XXX of we'll from there. as reopen of price number kind we point we're flying again, put collective the at holding back get of start up at we've kind $XXX,XXX

much. so Thanks Okay.

Eric. Thanks,

of the ahead. Morgan Kristine question Stanley. from go Thank you. Please next today comes Liwag The line from

open. now is line Your

afternoon, everyone. Hey. Good

from Nice Kristine. to you? are hear you, How

Great.

So with on following feathering your Delta's will maybe – up that Bell announcement system. provide

these risk and important suppliers? contracts control flight outlook costs partnerships. plus be you? a What sort be these just on the got And Qarbon cost wing. be you would Are mean, and fuselage Fixed Will will this partners? with sharing also, in XXXX? pretty Can surfaces and XXXX? are better contract you estimate with they I You've than color arrangements multi-year price? of more have if investment for you capital that two these Aerospace provide do

little a can take Sure. there. Doug, and up you of that of I'll bit pick kind

right So of into time to now, them are where And kind design. phases expect as we when materials periods probably combination and of we're going right, are specificity still be other. would down is firm contracts, you these the the which as then a definition early clarifying with contracts as fixed price design we in are lock move we will the each varying

the their know partners specific in so job is And what more with them. detail

we move find we'll those And cover of to how trying that's materials time of and with to fixed each price to design what's think that just coming. can So locked most because kind easily way down appropriately hedge is will the work version into the a and bets work. other efficient and that I place forward for aren't people when don't where they know in allows

firm first go to you fixed T&M So why talk and set Doug, we either or into price. other? do want risk that's on up, then

Sure.

risk if And element way, Aurora, where similar the price. and take there's to the yes, along did in suppliers go regarding a what things the faster. sharing, or we there's degradation it there's longer performance So to are sharing with the to incentivized risk some challenges it's

a it right, in partnership. we're So as together,

reasons design entering phase at we XXXX rates vehicle like cost, the for with we the that disclosing mentioned, from the recurring Michael specifies we're run the remainder vehicles. – – see lock we'll the the terms design cost the time aren't the and down that, In and of or with the them because the of this that the per cost costs for

it's ongoing because that's us that put interest really not is, interaction because between our in So what best that to together. all the an an with vendors, out that's publicly, there ongoing process of

it. But that reason, enough don't hopefully you we disclose gives color. for that So

really space That's build experienced helpful And flying to were you Yes. color. to right, Thank or these you very these machines, it's able machines. line that up help you very great manufacturers much. sophisticated

leading for of to terms burn in you've expect the cash, does maybe burned commercial that Is for million, million. up the $XXX you $XXX rate service? of year on the off follow-up the the service and XQ have rate So leading done or XXXX, we XQ commercial work you're run into should about million at mean, the next of looking I to bulk that taper $XXX

service only because is, we guidance Kristine, XXX for see we've give a QX. growth the we're of core getting up phase, the while fact with efforts, flight probably go fleet up one so expansion that, as got ramping that we some we're outside what on midpoint you'll forward for still the still the development finishing the of vendors. fleet So also tests directionally, ready commercial But

to that kind some higher. because up. mode a vendors costs current at the come we and process got on and on we're sustainment you've maintenance commercial time, in we've flight that starts mode start and the same then but little some you've fleet there, now see ramping should down, got see finished So to testing which down you to the a drive of But ramp get directionally service, flaring as

how the So different components together. that's should work

Great. Thank you much. very

we of to how They have leadership to And excited the with all from their work. and help on and both of on they exciting Good move And cost you. really to expertise, us. facilities, are effectively. Kristine. part hear excited be teams it. bring bring It's ideas are to these organizations also board quickly Thanks, us yes, bring really and they

Please Jefferies. ahead. from question next Greg line The of from comes you. Thank go today the Konrad

line open. Your now is

evening. Good

Hey, Greg.

Good Greg. evening. Hi,

Hey.

the of the with internal not about follow-up mean, the costs, how structural I major down any these just are maybe and price we vehicles you out disclosing through obviously locking Qarbon, kind and discussions, components, those of know to Bell you're tracking the the I indication are plans? when on through but percentage, Just think chain? of supply but And

Well, let's see.

are while think pull will on chains From supply there supply goes, as side. Bell own be case, smaller the motherships. Aurora for some chain bringing the we'll Pratt and their further the bulk in bulk the as be obviously by the elements. ship these will is on in Like I from for and standpoint, their Delta in far large have as far large our Qarbon that Aurora's they engines

the final what probably Class, the that. Qarbon in and examples install interiors, outside we'll be be assembly spaceships, things the of the the like what's involved addition of For Bell or gear to Delta will and doing doing, what with the we'll bring do final we'll gear, assembly,

relationship So any we is the there to we're be for Qarbon, other not expecting this heavily of or and not the spaceships. Delta waiting need Bell major supplier and – will that

So great news. that's

Also regarding costs to… relative

other expectations, relationships to mentioned, through we in each together, move materials specificity to of as basis say a first costs, so we price. I'd relative Regarding say with firm and work start design then I'd time we these and the can Doug our fixed that kind

we process get both area I'd part that of which to were pricing looking had through kind selection in of RFP projected the we process say an RFP pricing that with level, criteria as is to they and is have and Qarbon, did, really the we our So that Bell the raw internally. down. for, that through at that consistent lock

think I was that your So question.

yes, in tracking we're still say a fashion I'd there. So consistent

studies be what be. consistent own things parametric it's what would it our these done, projections would we And thought had we and yes, had we materially and Greg, had – I we consistent so our that with can that add

then And might I missed it. have

schedule Imagine like are I first seems part mentioned it are it I that about kind you slipped, thinking today, How into plan? of briefly. how coming but think about you schedule flight maybe the as you the mean, of thinking for the the of hasn't

Yes.

to Unity, on, one, the ready flying, have we the that out that put of if we said, and I'd in but economic need sure So the internally staff a on there's engineering to company the the of Qarbon around kind and and make consistent Delta the anything done Eve get are ability fly fall domino needing as the to and we to same first say, have Bell get early get the definitions not the time, only to ensuring of we flights. basis, just the emphasis have can At number settle momentum we up help front are so ships, to going. the engineering is resources

are those require is What's that most have two existing history consistent really and require priority. limited those not So is they engineers, amongst with things both just our two the resource. that a engineers they the ships

a large those engineers those focus need but we make to we sure engineering things. have experienced We pool, on deeply two

Now it ones the happens, of a flight will some are lot for of in those that be engineers also phase the testing Imagine.

some Unity influence start of get we people how doing phases be back early design Delta will quickly move to and So on some we'll quickly prioritization resource to and as and that pull we Imagine. many through learn we're there, these Eve how we'll able to folks on how from back

will with can schedule. not we So reassessing for in I prepared in what was XXXX commercial flight we're say Imagine we said remarks Imagine. the that, be

mark, kind of but falls, kind from back it that passed to able pull and Eve and depend will Unity we're on how from Delta. we've think, I quickly of where people So

Thank you.

Thanks, Greg.

question next The today of you. Thank from Wolfe from comes go ahead. the Myles Please Research. line Walton

is now line Your open.

evening. Thanks. Good

Hi, Myles.

the then service, getting I glide then the and early then just was one that all? has but flight all? I schedule and at Italian. always have steady, to remain compressed return wondering Unity spaceflight, Eve flight to and the a and schedule Unity air plan I for on back the in heard schedule a realize the at Hey, commercial compressed the powered the services January, in Was has starter the commercial

modification flight, One going be was was we What's two that bringing a flights planned flight two But following flight Schedule our that to so period. what go had we upgrades you of XXXX has that. that's adding Force and is, one first, at then because an did going we primarily went back were you modification What is that Unity verification planned going Italian enhancement internal and the enhancement a the internal we pulled of of we into those team, we're kind Air some Unity, not same to time, before. to Eve this that flight had be with are kind glide period, following upgrades. additional that we've that into And we're flight to as announced. it, is and Richard had Unity research the done compressed. seeing know, we'd flights some

spaceflight our take who Flight system, But through on are whole America. and familiar were to system put to altitude spaceship we a those we is the the aren't That a the it's is the So pilots where for back glide maneuvers Spaceport flight it. up additional with in want the call, before. Unity that be go powering to through a of two as instead the it release able to Glide of other space the system, we they we've propulsion the same series as bring

airworthiness Delta Virgin certificate is different can Unity? continue you versus award Okay. Q, currently it for talks just the makes to remind you product, for would with in goes and sense. airworthiness Good. manufactured think us that relationship, the this carry own which Class. about the How certificate And the I that it along what in the But Galactic

what have is a these Each of functions the vehicle parts the lower have in license. as of that a atmosphere. vehicle in launch kind our reasonable of an will vehicle air will spaceship – Each a it's

each Delta, feels And them each we've passengers But these FAA we of we license the as an of So while FAA, be own carry dialogues done show space will feel to to far, work on license. part its the same the license. kind commercial will our side all with clearly that so has operating license. vehicle

for a same we create reusable vehicle the to launch not new expect So do each They'll having commercial Delta fall ship. need its license license, own the certification. under but will operations

fleet hot is well And you running Doug, enhancement? was there – enhancement cash from today sort Okay. the maybe, as versus Is Got then you flow the to future it. any said that with I as way future one break know going on down how R&D could much of last costs the fleet.

say At an over. future rapidly Today, more now more it QX, I'll shifting on just to fleet. enhancement, but it's was shifting enhancement, that's

Okay.

Thanks, Myles.

you. from next Truist Securities. from today Thank line the question Struhsaker go ahead. Please comes Sam The of

open. now is line Your

Hey. mentioned engineering of various I additional Or curious, guys Good have I behind have labor? you on anything same putting if of any you guess had evening, force having on issues are you pricing managing just for could of I'm kind Ciarmoli pressures? or just then add I some Mike with any that? you think elaborate, all your And any you're into right, was adding the shortages if And looked guys you initiatives. evening. kind said guys you just guys. this kinds detail you chain supply there. And but note, like there guys any

seen, Let we pressures. call chain, me supply I'll have the that. it, pricing In not take

world. that chain like there. supply we've Sometimes a day miscellaneous case something a at ourselves out I'm nothing, missing But part I'm Doug, at of seen this the of or something the I'd kind or front the structurally get I we call that's and may looking it to to from in That's, in more in expedite line. think, moment. of day demand, expedite shipping

No.

factor materials. is other bulk of our The labor, not costs are that the

of fixed in terms pricing. labor more So is

So with on. contractors so even and the

yes, as really chain material it changes. for any thing a doesn't cost up us supply So show

have our number earlier engineers that time the that our are of more demands engineering of more And kind in then on time And three The engineers came we when a have great engineering of that – kind historical is experienced time. experience their those have it's smaller. two engineers over company's was deeply because the limited core very I'd side, incredible smart. those with ships of say we number on that the

the them want Eve to is, and on of on as of them help those Unity site, service, are into who those put we the very familiar people flight job just we ships. test the program. us And One turn ready are to kind

you important get more of smart incredibly of we the want early that get that larger the where also as the groups of engineers, we is would testing that expertise. who deep much not expect, Imagine. have bring you design but that design some It's specific of one phase expertise through that's early for historical So And need to pieces, core group. Once in. some you then upfront as may

want what's – Unity trying in little focus a Eve to we what we we're with put Imagine. flexibility two Delta. make And so bit those, first And and of and that's schedule of given sure that on those about the us think of to

So that for as I But said, engineers. that will cadre push us it's out of to specific XXXX.

if I then could And Great. more. in sneak one just

in back begin more or of that think, on on you I that guys, more the way would when Is Delta any half could the detail Class mentioned not? XXXX. would any kind give be there production You

we're at that. putting out kind the of we're specifics think where point don't I on

a However, So parts we certain ahead on to actually design can fairly the you we exercise then through process and efforts. the is tools as that tooling that is the then go into can go will we start more tools tooling detailed follow tools you and standard design And and process you from for get right? able design material are the some of we'll happen upfront that manufacturing completing, exercises, design can you completing order as then there. build of the a

So that. stage. think of probably at assessments level some discussion the make you this on if about you can right that's probably sequence, But that

Great. Thanks guys.

Thanks, Sam.

Instructions] [Operator next go Valentini ahead. today from Goldman line comes Anthony from you. question Please the Thank of Sachs. The

Your line now is open.

is for you? Hey guys. on This Anthony How Noah. are

We're Hi, well. Anthony. Welcome.

you are point minute. that sounds also sales back for for at want the a Thanks guys closed full go in completely the there stop but are halt? to out thought people Or just I business It do drumming a reservation process time, my the at up is question. this for taking like future customers? reservations like closed to

Yes.

for anybody but both of you, kind also just is for So listening.

that backlog a that's been of than already greater have three we sold years. So tickets have

obviously are And the the so to those people want way. space that flying to be we along

think, mentioned them flights. kind to allocated – my number a probably have question where building those I and the travel that's adventure to got are Those of XXX to we your Virtuoso. here, partner, XXX the that and with luxury we've as earlier, we've a then And of so research we folks, be then of And remaining X,XXX of at overall backlog again, we would go way this putting the are years the from flight. But kind as go be four to efficient these their pushing way. will we've towards for that. will towards be got that energy along That most back that

point standpoint, call So be price we've at had a they'll it, that the be piece. from closed selling will that Virtuoso tickets $XXX,XXX that $XXX,XXX

we coming things those obviously will up. to ready And list them come we're to point sure when house are interest this well reopen also at then add the to in, taking follow-up some kept we seats. if have do as So make we're names, people and online that we

from when our core. get referrals existing So astronaut we future

ability those as some bring well. the of have We in to folks

Sometimes "Hey, start real member" for a that's like to bring I'd somebody family with, to things get or them. else's

So for get and tickets we then want But again, back to keep then reopen few as available we flying a we up to are flight that. we'll sales.

Delta’s will mechanisms the of our And scale we use infrastructure to sales and online. is sales sales structured levels right coming as at effort closer what to as so get we on team kind up that higher need primarily now we for the are our

for that a this good to work done. get us is period time So

terms market that the on things that Yes. just you been down, people as that? like sense. decline, That's of interest. and really makes guys Have recessionary are you there's fears, Okay. color to information I'm slowing with like in stock curious coming and profits helpful business trend seen

We're What right? our – existing maintaining just to the core, existing is we world impacted base. events, by have Everybody companies I and even generally talked individuals.

are early going part, and the are most capacity things pays to the so. markets coming when up kind down that. undoubtedly, economic the of like people do But have who at phases everybody attention For these and

at four-year to So got more concern our momentum sales. we near not of the on that to focused really begin little we've that. really and bit us We're the to be for the And time for infrastructure as the it's kind space moment. a back flights what's taking with going backlog, ramp of

we on the the on So sales as get will to have it to kind but I'd say, and us, a factor not, hasn't focused weighting world get we flight. been events – be of back – economy back look

Okay. hit here. the lead that on or chain touched anything lot taken are one you Great. harping A&D we're fact it, chain, you seeing on that. of but Last require times you that that A generally here. the for that in companies major really guys like hearing has supply there's parts are a curious guys if are supply any specific like I'm On longer

curious thoughts. just I'm to So get your

of that and of materials that. system right and had had example. we've been we Australia use, the sole with issues Qarbon, that lot we A got an thermal that about because going now what We is concerned some took to in shipments some protection pull have of sourced were on scrambling from some as Ukraine out we

that be metallics are things of in aerospace that think I very can tricky. metals, are particular types used

on some get that a we type certain a of took aluminum that had was while to there to we work to. So needed us that do

the in problematic working not Doug, through anything earlier you've the that worked us we've of on of some we those were those so been we're point. the And and at things for near-term at point, have kind faced. But this things seen? that

would that. I that No. beyond mention Nothing

Okay.

you. Thank

Anthony. Thanks,

are There registered. Thank no you. further questions

today’s your session and today’s conference Thank for participation. you question-and-answer this So concludes all call.