Virgin Galactic (SPCE) 1 Aug 232023 Q2 Earnings call transcript

Good afternoon. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to Virgin Galactic's Second Quarter 2023 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. Instructions] [Operator

turn Relations. to now President Cerny, conference Investor of the will Eric over Vice I

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

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

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

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

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

refer made in company's to the For time about from more information risk SEC the please these filings time. uncertainties, risks to factors and

You statements forward-looking events, a to may reliance whether this are and any or put the call, the be forward-looking not cautioned obligation undue information, future disclaims that of new statements during update specifically on otherwise. to discussed result company as

metrics. information that reconciliation note financial certain of non-GAAP for refer today's non-GAAP earnings call. refer Please these financial to also we to a will our Please on release

over With to turn that, to now I Michael. the would call like

joining Good second us afternoon, you everyone. quarter Thank for our on earnings call.

to and thrilled look that call. forward have service are launched commercial about We today's to sharing on more

to spaceflights into quarter, on ships, over I'll financial the making today's share Doug the start our Class our are agenda around call progress our Delta the X. before our Slide highlighting to insights call performance. then during on discuss we to Turning activity turning and the by

your will open our Following questions. remarks, the call we for prepared

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by consumer building space a our safely on We are cadence. and interest operating monthly consistently and commercial confidence line planned

experience and predictably flights we was valuable pleased can both performance improve of data performance enhancement both on been overall to over dates to Unity flight spaceship following provide Eve mothership feedback two and performed has advanced very that executing the our improved to and astronaut We a system with now ship are so we've enables performance. of flight customers. programs. the our which our enhancement excellent, the The see Regular Monthly us successful, continuously us cadence reasonable last database The flights maintenance been notice and our our with operation. their spaceflight plan spaceflight gives objective. meaningful around program also

to Moving X. Page

progress to continue profitability drive business. Delta of and as the of the scale spaceships, our company We will the the revenue growth we Class which development

remains and the what for Delta roadmap Our last focused spaceships, we the production and building designs fabrication consistent quarter, ships. Delta shared Class completing tooling, the with for components with structural the XXXX required on for beginning

the and As equipment completing fabrication, designs, at and we the completing move facility utilizing the from XXXX, our our assembly we assembly into suppliers. Arizona, initiating installation in sub-assemblies Phoenix, parts phase anticipate

of in commercial service entering operate XXXX. Delta advance XXXX to on ship timeline the a continue first supports We that in testing in

ship we Unity. have to Delta yielded have The and regard to has in low relatively maintainability, particularly development excellent criteria. process and primary ships to to have ship Delta VSS material with been and improvement relative designed well enhancements the architecture, manufacture-ability our a against cost unit are cadence some our initial ship's tracking flight production performance

is us. we ahead over Before want astronaut I our an flights. regular turn moved following to basis, know flying Galactic missions, a space call incomparable have we incredibly convey experience. astronauts that private is of whether be delivering and research their been Doug, also It how on I exciting flights Across more to have to it board, or Virgin many the be the to milestones

deliver vehicles at going are to same ships as to to on Class to incomparable these our more faster rate. We make progress the us continue a enable Delta experience customers

With turn the you. let's call that, to Doug, over

afternoon, Good Michael. Thanks, everyone.

commercial Turning to a $X spaceflight during for the generated and membership revenue million, driven quarter approximately financial by Slide of and astronaut future XX our results We second quarter. fees. the

work our $XXX increased to The million costs million. period. Operating engineering $X fleet. increase SG&A to million, million a in to expenses in were R&D $XX the primarily compared future attributable is $XXX prior-year increase tied for

We million, compared the $XXX $XXX GAAP prior-year by net period, R&D a reported driven million loss to in higher costs. primarily of

second the negative prior-year in EBITDA $XXX $XX to negative million Adjusted period. the was quarter, compared million in

cash line last in second the negative period was with Free our compared in to $XX quarter, at same $XXX year. guidance million negative the flow million in

the fiscal cash million, sheet marketable XX. of second balance a from Moving At cash, the of XXXX. $XXX million totaled sequential of to end Slide quarter quarter, and securities the $XXX equivalents on first the increase

at-the-market, as our offering quarter, gross the million equity During programs. of $XXX proceeds we in raised ATM, or part

With some when the third in changes of report operating service, presentation commercial of we expenses see start November. you will quarter the results in

and operations in which change were operating forward, category expanded will re-categorization costs Going accounting operating a renamed be line SG&A. Operations, This expenses. and R&D space aggregate items Spaceline not with line missions customer line. space include components presented These the safety, and space previously associated does for experience commercial or of technical

spaceflights commercial two Moving the XX and beginning anticipate we With in in the quarter three third outlook. Slide and service, our a quarter. cadence fourth flight monthly with financial commercial spaceflights commercial August to in

to million Given the and the forecast in each details, flight quarters. manifest $X we cadence revenue approximately of and third be fourth

the expected our construction the the are Class technology Our to by third million between process used CapEx capital spaceship quarter the for be growth $XX Delta facility well The as in driven assembly and Phoenix, million. of is in as in design expenditures for $XX vehicles.

the of expect the to free in our to range flow forecasted of $XXX continue the $XXX million. of fourth be and negative to We XXXX million third quarters cash each for

Michael comments. hand to that, I'll closing With the some back call for

Thanks, Doug.

safely launched was the closing, an with commercial We successfully for second celebrated satisfied us. customers. critical service for important milestone quarter extremely In one the having a company, and

recurring be to commercial over Class the We our in scale just the transformational away customers on excited of approximately second reservations. to track delivering spaceflight delivery with a very week on this to a XXX first our Galactic we Delta fleet. are future with forward of We flying remain the XX from the business experience with and basis, look

the Evan brand. a end we for Chair the Evan our good a of to want before the our mission was passing today, to the and call Virgin of Board Lovell. moment I address and champion friend take for Finally,

We family will for his continue time leadership forever thoughts, to grateful keep his and us. and be in with our his

helpful, U.S. Navy public of served incredibly brings as the Mississippi. as sector experience been to the has Mabus, our and Chair. Board as Board, Director, extensive entire of Interim has Our Independent and having Governor stepped Ray in Lead our our seamlessly Secretary Ray

that, begin With to Q&A portion the turn to call. we're we'll ready Operator, the questions. of

Thank Greg Please ahead. go you. Jefferies. the of Konrad from [Operator line first with Instructions] Your comes question

evening. Good

Greg. Hi,

in and in given about that? in Maybe bit I QX million just mean, to think little you you did flights. higher QX, and activity. million be on revenue just talked $X included QX three they'd What's the the over spaceflight would two a square I $X comments,

Hi, Greg. This is Doug.

revenue. So, had in flight, higher research a so flight, the little a Italian QX, we was which

Going or research the manifest if it's QX, when and be depends QX to flight. forward, going look it details, for we astronauts at

So, depending we particularly higher the fourth mix and in on what manifest revenue. the that see we do quarter, with may

to closer fourth be look at And would million we research $X here is if probably to be in So, million. potential quarter, do $X over the we in the it QX. going if probably

R&D And kind the given just forward about on in level that but of $XX up the CapEx then QX restatement sequentially, rework re-entry talked R&D, just stepped million now about down being a restatement the Eve R&D little you right and complete? bit. Is going the the of ex QX,

Yes.

So space you're into over statement, R&D going because the the move to see will things changing on income line operations. some start to

that were represents line. be historically the basically operations now things of category, operating there cost the the So, in space which will

over all is maintenance support pilots So, operations go and you'll ground space see safety, there, this and of our and missions and that. line safety group and the all technical

that what general, the for restatement Delta lot foreseeable phase is continuing this a for in because So, the effort But that you're is future we're design without in R&D while at into still level Class is the of movement. and a seeing continuing XXXX. of

see R&D still levels. similar these at So, without you'd the that progressing reclass,

Thank you.

ahead. Your question the from Oliver Please with Chen line Cowen. of go next comes TD

Hi. Oliver. It's Tom for on

expect Just the especially then are increase? additionally, recent after ticket price forward? could expected And on to most the remind last And a you relative how trend that to flight? to sales lower-priced us if tickets how you on question the trending, how long just are

here. Michael Tom, Hey,

in And XXX than people and So recall, a we turns may recall, of 'XX, have little ships, the you'll queue. generally that around until we and going with cadence our I'm monthly in off think backlog, we the we into is about -- longer prefer. which the Delta a kind of get I Eve have sure four-year first you ships Unity,

appropriate I the is think place three-year to for a backlog that. two-

be our to to going to -- system, combination fly excitement is human you're these in say, add can what in on confidence of back. in early the I use going and us, And come. excitement, stories who aspirations will flights from confidence and us, for think confidence see people spaceflight in to that So, new confidence hear it purposeful this as journeys, build the I'd safety come add really to impressive excitement and those this suborbital see you're to industry, because

up from us see let think as online, a -- we manage And we little little than so, a that little constrained ready we're we open And successive a Delta And supply release that which then, towards have we while. I you'll will going a backlog little that in that's And we longer because points prefer. to while, we lets start come of tranches in a closer for build to the be intend us price at to inventory. we our get will would ships sales.

that put also out. So, the and us as we manage it manage helps we'll supply

research to talked next the over about the We've to period the us channel then forward, larger Delta small will play amount as door go continued along that kind in up, the for fleet larger of through to and being closer network. we've anybody we keeping always the who you'll going allow sales able as three-year have of two- and of available before. So, open I with And travel wants have Virtuoso a we see we're to to have said, probably tranches, outside way. then sales time. a of And get sales backlog to what scale reasonable not through

how about price second you The do I think thing asked think points. I was the

then sold price of majority point in vast price were those, the like XXX, in were the from $XXX,XXX, and $XXX,XXX. XXXX when So, public. the so company the down of ranging between We that $XXX,XXX opened XXX and way brought point or of through all first up back tickets up that that went a

you've of sell, the and The roughly, plus seats number first got are flights fewer X,XXX, minus we will those volume equivalent. of we which so per at, $XXX,XXX. expect around XX% in or XXX on $XXX,XXX average, And another be in research our seat

flights. a So that these you gives of early kind mix of

effectively, we be for (ph) outside seats, we of don't price [obviously] up have, point. the announced do Virtuoso we haven't that, We reopen to expect When sales, but $XXX,XXX the -- we less. closed at pricing that

research for research the And helpful. a the tourism? of That's you you very talk demand drivers relative flight just passengers research to ticketed what lead on bit then demand. Great. Thanks. to And then Could follow-up little for about a flights? factors flights prioritize

Hey, last forward. I'll and take part first the go then

majority So, we're on our the whole, going astronauts. to prioritize private inventory vast of the to

broad and who the opening the to our that's of vision so. think I to and of company to space always for that's been aspire access this do founding core space individuals up of at vision kind

the research the a of of top is important. We believe research a to believe over do also human I that appropriately research adds, knowledge. believe spaceflight. halo ongoing We halo research growth business believe is profitable along We -- matters positive a And the think, we way. commercial

X,XXX to that all about I we've grow. we XXX of would allocated kind see range And for reasons, first XX%. so, of our be generally like as flights, in those that And

out in Now, mentioned here? of there's in what two time is various are spend do that to kind of people to microgravity starts want ends are there. that the as are I research. microgravity of currently kind the kind reasons hugely space available prepared of humanity more factors large at who to spectrum work the all that research briefly to important And for are remarks,

for It's an to is that lot of in which you to shot has robust. it kind long of there's to time. a a get very that that. and it make needs done. have experiments experiment work. And there, those on much to expensive space the experiment capacity research because get either a It goes time that one puts very make to kind And lot have long there's a be that one of pressure not line, So, you been lasts of very, them to station,

a spectrum, microgravity. the as can of average, seconds higher current other you on the flights end parabolic not give bounce have short you the are XX It's don't have very of get are towers of rockets the you repetition drop in or very which, microgravity, bit. the but air enough as sounding little short. And you just can length of around that, pristine the very, or at planes about time on On end piece,

researches spot there's so, suborbital is And coming a back we've heard Italian what talked we and from is on other sweet enabling. this our that space to from partners

keep And or by or research payload ground astronauts to actually never add the flown tended hits those on before. -- the allow the we just seats, themselves, has that flexibility in experiments renew provides is available been flown be our that middle racks either can not, spaceship researchers or this

can of And experiments so, we price up, are that clean microgravity getting provide especially not because to minutes so a And allows that wider compared cost the station much time. very now but of for to only points, our space could go less. range

station a us. researchers can to learn just plan parameters that -- repeating for get as usually, more. And Now larger actually go can or moon, will experiments piece different everything of are either the they towards a slightly they eventually way space with sometimes experiments or those the they the through they are need sequence or on

So, parameters and those buy the government need. those are heavily the institutions. people And are that government-funded who then people

researchers can discussions, what this their first other and kit And is putting the governments appropriations taking now all in we're a that of across own into globe. success and government agencies those use U.S. so flight, doing that the government

Please Securities. Truist Your next ahead. Peter question line of the go comes Osterland with from

Ciarmoli taking questions. Hey, this the Appreciate for you good Mike afternoon. afternoon. I'm on

kind XXXX? given up ask, you're for number on what color you you're $X.X appreciate into timeframe this to related the I expecting average about as you've where on expect there operating of what XXXX, flights just Or just that. of pricing, is of considerations per but flights you'd are first, following So get that In Unity, passengers any with average to on just first of million couple per from through are different flight I kind wanted civilian on these flight on 'XX?

Sure.

there allocated the for at days, flying see to the is look and the trainer term, Unity term. we in one because that per ticket seat when $XXX,XXX these So, we're of you astronaut expect flight, would about near prices near the for an capacity

into we to that up seat. move we open expect XXXX, As fourth

X then $XXX,XXX revenue per so And you we seats projecting. flight would see And if or research see $XXX,XXX that. times in some you from uplift what in is there, get would we're mixed

And year? cost, you. I terms been your Or wanted development of design you'd Thank then have surprises a call different of beginning to at or helpful. experienced it just Very any challenges track or as you ask that follow-up, activities, that either point? you on this to mostly has labor expected out what in up fleet the be might from the just on challenges

are remains growing fields everything going certain haven't seen in roles The that's healthy. war competition Ukraine. types that of Aerospace, here. is has in on surprises engineering I and upon for more the pressure No, for general, in with defense it industry

we we that, of have I to that And delivering think, hold own, incredible so, an and are engineers group this. continue against our against

So going that's kind I of normal would for aerospace that is part, on. all say, just

suppliers relationships think, really with our pleased here. And I Delta we've had,

And Bell in we've Qarbon. on and been good. site some from that's really of both So, got today fact, them

may the of and the are manufacturing new tooling we'll and state the thread, technology, with technology you of use of that eventually the into but all parts We to twin. go allows phase them. digital the phase, using to design for -- the hear working software But both It's word digital maintenance. way more us not design industry

And with again, facile that of teams, of but a that's moving is our that ourselves into, so, put whether software or training through that ensuring not all we our partners are surprising. something lot

an on cost unit important. business Delta the ships. the focus a on talk Obviously, is in where each this. great and depends. have both this we super they're about where production we is keeping cadence to are the This time ability cost ships, we model reiterate variable those low ramp relatively of And we So

So all it attention is on way. going it, keep that and to we're

questions. lot a the for Great. taking Thanks

Thanks, Peter.

the Your next from comes with go Please Fargo. Wells Matt ahead. line question of Akers

Thanks of your just I you've for I some Hey, activate value guys, at as ask think point. to the that kind And on described you afternoon. good latest question. wanted thoughts option could that Imagine.

at this Now got you Unity that could point? exercise flying, that is something you've look to

So, The And Delta talking of we've said, and deck, as it And ships. to us, for option as image an it's remain are picture that option of about kept actually accompanying Class -- think, you production an able in Delta Page it for going from things already of the been Imagine. as I that image to an derived was us. That many benefit our Imagine. model there is we've is evolving shift we X, Imagine because used is, kind base. which the from from

so that the into phase reasons momentum is for the we the Delta we early supply work, through the this avionics on phase get upfront can areas of design of The it we've that. on And that Delta built. engineers we like of to focused people that same Delta engineers are because we ships chain the have need of the those put modified that types we would testing sciences, like have focused that Imagine, the off kind side

rapid Delta actually through or systems test building down At elements. ship of on towards a we ground as path ships bird testing wind to is a this words key development building and you'll we're the aerospace design you -- the we're we're us allow the are engineers pretty well when tunnel -- production are can of would those not are flight that which time article, -- program, and move quick. building that that test, the the in the see the we the but we're to those production rapidly of static kind And very kind learn completed only hear in And month. going commercial through also Delta, expect iron way have build Delta to

allows a a program. have So of us flight to lot test that relatively abbreviated

hear doing so, kind point commercial us in of first ships Delta 'XX, flight outpacing Imagine and they're we're allowing in point. almost when you testing at at 'XX the a And into that we're where

group all here going those that and us we're It's keep our we anchor used and operations, with hey, But going still Imagine, opposed ready. multiple going be vehicle, going. the to engineering us, allows of have same will that program attention are technical secured allow over control And operation. the we Delta our right? get one the it turn ships, to as flight to likely is which base, support it's program, that Delta to service and So, a it's efficient ship. same manual, maintenance the mission our we in as same to, for and of it's And to have it's more Imagine and on consistent the again, then,

it. Got

color. at the for Thanks that Okay. leave I'll one.

Thanks, Matt.

of Your comes next Kristine Stanley. Please with Liwag Morgan the line question ahead. from go

Great. Hey, afternoon. good guys,

Kristine. Hi,

mentioned ability cash motherships. by You timeline? to flex around any Can your color current next-gen the provide for timing you controlling the the burn thinking to

Yes.

we're with pleased after doing period enhancement Eve strategy that with outlined we're we're performing what is call did. last we the still again, we today, so -- at looking So or the in that because consistent how is

we now that Eve continuing flight see test through So Delta the program.

benefiting we are from So, that.

design on that mothership fabrication and working be parts getting next-generation the moving will we that some anticipating still program. to are over to the remaining through rolling then Delta we and and on off that, first elements of of because So

again. So it's the a lot same engineers, of

the So stagger it us one and from focus program resources allows next. the engineering to the company on to the

year. following in be would that So the

start more So, Delta when as we you off XXXX initial of the program heavily of the is phases up the roll pick mothership see to program.

So still planning consistent before. with what that's were we

that -- just we're us continual kind of fleet. this Kristine, the to Michael, these additional sequence Delta when motherships thought allows then on just building final bring of at in our volume is that it's And

tap of that out capacity would a the the on way, we at about that from the will manage time bringing standpoint, point fleet. that at right new So scale motherships be to Eve

to And you've you've so guys cancellation your the have been requests the far? got Thanks. $XXX,XXX orders changed how flights after that a to then date? then received for Great. in guys can $XXX,XXX any you and the received And also pricing deposit, fully you that refundable discuss sticky structure has passenger you

not those associated did number And the were and questions from with XXXX. limited way have have -- themselves the topic to heard especially was able kind of I'll that we of into have others. I So, very uptick largest the all call that was in many see safety been The talk We of they that not cancellations with any are this we've us who it fact. experience, platform. through future goes following long unexpectedly that. Titan back we most of in year-over-year. Where they media And around everything clear, not, particular did out-of-line any And on our a you seen, in that?" with of a, the get and astronauts, "hey, a time about fall-off

And that dropouts we've seen any not due either. to so

-- for be people us often, will it there. seats say And then but some for economics, sometimes medical some be for or not see why it that's can we reasons. health sometimes drop You'll you've keep heard reasons house

onesies And -- if is so doing can replace twosies falls the and somebody on off, replacing back generally those we what way. we're as

color hopefully, into window that gives you those. So some

color. Yes, great. for Thank you guys. Thanks, the

You're welcome.

Kristine. Thanks,

Markets. go KeyBanc ahead. comes of with the next Leshock Capital Michael Your from line question Please

you your maintain do at start securities marketable about balance offerings, have comfortable I cash that just afternoon. are billion think $X of as on you to position we that expect in stock future? And foreseeable what common you're you Hey, that level some the for to around wanted the of good optionality today. with of with? cash And the

and to access strength with capital the the right been great. We're it's very markets, have to there the and pleased our now balance ability sheet

and yes, today, programs that billion to high going these us we pretty are. see gives generate invest So runway. returns we are approximately $X gives are good flexibility like us a we to the where in and we This really

strong towards we keep So sheet the Class. our we we move balance this we where like Delta And of phase intend to fully throughout ramp as are. the

intend minimum it don't we but do have we cash keep So, to balance, a specific strong.

then And date? has Class that been wanted track bit then parts process. mentioned following up complete with on tooling and the the specifically on to But And design to since development near-term year, more what to progression, is fab expectation? accomplished had Delta a you're this you and previously ask the still expected you begin

Yes.

next Phoenix those come those needed are year, the process both So course, year, bringing parts. can rolling come that that us. be later because tools so is to the of created tools, way And and tools and finishing starting needed we we'll before for early on those tooling in are the second to final will later parts in need the in that into pattern, be still of the built sequence, probably being kind in sequential have that those assembly process. back expectation. a process all on bit then sent completing the we're Tooling in. And done of sequence will this of subassemblies a some then before half parts year, the And the the probably over be

all that we of track remains as and So there. through expected moving on kind

there. a asked you think are else I yes, -- in seeing what The question we

key day was major a same of where and we not on executive One what's perform we're we baseline the into in some ship -- of And is generally trying things. Class. process how Delta different. on, will wasn't milestones are the summary. pleased design for Imagine report those our ships it I out I overview, do go the an with people, call the the perform. forward and fourth-generation Imagine it, ship lighter, share, said spaceship, think executive the this things, Delta create to was in The that we've used I'll will will come deep a I guess, six all looks carry that I'd of higher, an It there. really things as the It's

think improve even us to that the out there, flights turn to What's per enable cost length work of numbers a that useful to well. put as of aspire where on this flights, of and good time, to has that very the has gets on done to we're compared positive going really flight work spaceflight. to weekly length I of approximate is to that time and ship continue really basis, the been confirm life, validating this, we be to in that's XXX basis, turn, feel we on mechanisms And been done a for weekly the those the other human been

building for putting I detail that's the mentioned we're to ships. briefly a one-off showcasing So we are going the ago, very These design to through, it's into carry right been that bit me. confidence going and how are doing be little just not that been of energy this.

cycle developing, are in cycle and the our the can that It And have headquarters. in you'll in avionic systems, just actually hear will and advance. copper we systems that engineering We're use through we doing gets all and that located us cycle So, a avionics us word, bird. week. electrical running this

go test there We'll be running that running running out and the mechanical to bird those. systems and building iron an running and and through

be wait get We'll to intervals flight were to use all having actual through. and static or an into of maintenance way until take we're limit the to So, putting article all we and that ships test the we're maintenance the going intervals our a understand building to the kind a confirm parts able being our to for that not ultimate to margins in. of test load

with program confidence as So, our these are together. which teams diligence putting all me engineering those the for things watch and building very I are

Great. you. Thank

line question with ahead. next Your from Research. Walton Please go Myles Wolfe of comes the

evening. Good Thanks.

Myles. Hi,

I'm talk was experiences. plan I mentioned start more could Hey, And to think I these you would a engagement hoping the become in of Michael, reference, the frame X.X. private And just about side of going after bit Galactic you curious, customer intimate how that's private, what required do you this to maintain keeping while the visibility is paying create basically it for? the experiential the and sell be to

Right.

to have We do of both, course.

we to flights our want want that pieces, a definitely manner. to will I'd be along will do some new a we cadence do we easy So flights will of as of. do say stories kind the there's we flights one, in find there. That's full of and around And deep our way public that research showing there those frequent

don't future are their expect, to you'd of lot, to want but As personal maybe story, but us experience. astronauts tell quite broadcast our not a necessarily lot a all, excited own their

balance. And so, we'll find the

think think about each but of go, I there'll for not footage you'll always astronauts. giving in those recaps, active interior will be a doesn't private the also flights the material to what and our And that always when hear of always be the I you'll of And streaming though we'll cabin There of our fly. out. of see imagine kind I us be those talking always there'll astronauts very do that pieces bringing out. video is all, become group majority to need detailed be

I to balance, end finding won't call the we're of So, -- even type a this a going both is scenario. it

we first put to, experience not their our foremost, the have and of want, overly quality a energy experience. lot and that they of we deliver and right, We best commercialize get, the effort customers, and will us. focus for aspiration on to They've that. missionary into become deliver kind when that do because personal have is will we the deliver that they this, marketing And absolute

to going that we're right. get So

and I just And our what touting the the we that, also in are ensure general we of confidence experience of power confidence the can and think building safety, do excitement that in we the company. within

I think do we can both.

not I want by to want we we over -- now, "Hey, every answering, flight, showcase probably the overplay of interior I don't just cabin but I like just it's make So, because not may it [indiscernible], sure to appropriate." have

to or point, one six it is many in or of have basis in the you're do four on of manufacturing, Delta you those Maybe on an it question six the actually thinking be line capacity different four two, would 'XX? about a out in this to Class. of the annual operational Yes. could viewpoint be how Is service 'XX? a At it on

Yes.

end the you're I between of be what in is asking, there. think probably we'll 'XX

for just start the our we're you in a to up as on ships lower us As kinks memory and heard to four start say, work factory side, kind out. that six muscle system that are build building the of you've year. any right, to It's logical

more because test probably that, first less ships, Myles, we of couple using couple, than but a will program. right than the get we be wanting we're will the cadence And two full So, away. to flight the be in out

start those a chain from so standpoint. of will And probably let's little again probably bit line those far we roll but the right two, And of into between then pace, a mess a break on so have up the supply not service. out. four kind that moving we'll first get We'll a

I think come the that other of the those ships. will what's question is with that turn rate

we're on very just question As we've And turn analysis to from ability good all our mentioned seen. feeling that to metric. on keep pushing a I before, hit weekly the about the going

another else think So has nothing to some interesting got today, add that I one leverage. but that's

past you're on to next last saw confirm you the And just you're as in burn say a cash I this that second I can know half, of kind half point we're Okay. Is if year one this cadence cadence? the the implied into where it's peak able for past we financials. well. quarterly first guess, quarterly don't

invest QX we making the returns. to for And giving these for sure going only we're in years, fleet Well, guidance we great are the see to following QX. and that be able we're because

involves motherships those see and So we because that Delta the really great the investments. from Class financial returns

we leaning rate. But very the we And possible. us that at attractive level But fleet trying could returns think that are really to will slow supportive be necessary, be control going and into when can we and shareholders that the the down. we're spending pace. that So, keep build rapid if to of

-- got flexibility. we've So but

Okay. Thanks.

Myles. Thanks,

This as you question-and-answer joining. for concludes the call. well session as Thank today's

disconnect your now may You lines.