Virgin Galactic (SPCE) 6 Nov 242024 Q3 Earnings call transcript

Good afternoon. My name is Christina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Virgin Galactic's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Thank you. I'll now turn the call over to Eric Cerny, Vice President of Investor Relations. Sir, the floor is now yours.

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

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

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

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

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

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

reliance certain undue on metrics. With on obligation over that, will now. like of discussed a put release of Michael to financial new forward-looking we disclaims non-GAAP And that during as future to Please turn the these to company that not for a otherwise. Please cautioned update financial this events earnings are to may today's non-GAAP refer I the note any result information, forward-looking specifically our refer to the statements call. reconciliation be whether statements. call, You also to call information would or

a call. Thanks, at Virgin productive open the main had and Eric. Galactic. We've X quarter powerful to I'll leave points with

teams This all. spaceship and is assembling that We when to whose with engineering have and we've spaceship improvements planned, and maintained now as shout in give time, I safety can out phase moved our be tireless into spaceship have the work successfully elevated efficiently above the and a keeping true while has to production to program. of turn are reusability enormous First, effectively fabricating spaceships. phase building build we manufactured model. design the a parts tools, our a our prototype

with our close hyper-focused Qarbon and partners, phase, Aerospace. the working the Bell coordination path critical build of on Textron are We in

program commercial Our track to XXXX. spaceship begin on remains operations in

efforts our first the phase our we expanding towards next beyond growth our directing by of Second, are X spaceships. fleet

of effectively. This of design, additional a We opportunity third by and to The in of quickly the Spaceport manufacturing have an spaceship capacity advantage from infrastructure, engineering made nonrecurring capture straightforward our to investments. requires and a we and the investments a enables mothership. addition provided path scale be add second and built have a America. Taking allow to fourth existing fourth spaceships a flight at third spaceship cost relatively exciting economies

have additional to keys additional Delta progress With on the and pick a second expansion. unlocking the on the economic substantial strong we mothership to mothership. program, up spaceships are made X This design now engineering the capacity work the

we economic business and in Third, model, with experience our expansion in growth our confidence targeted to the clarity accelerate this use of through customer plan capital.

capital X the projected of does is operating hand our Virgin Galactic allow through deliver growth. earlier and we organic additional much fund capital a X to sufficient While service flow, operation to be to spaceships will solely our full existing spaceport. The if on not ships second positive plan drive spaceships bring we were growth these into cash a X-spaceship employ to capture potential mothership and economic a to than first

us Our maintaining expansion, growth to this in strength cash fleet in And balance sheet. while prudent of flexibility capital. strong gives acquiring on position pace and continuous progress timing us our make allows this

engine this expanded the capital Virgin Importantly, enabled Galactic. fleet for growth an creates with economic

shaped into the to forward, that, call. X on build-up to agenda expect structure from visibility capital additional for sufficient then model stage our the Slide Doug and challenges started and business fleet how including fund let's the about sets to fleet and program have to today's spaceports. With by adjust financial quarter, results strategy, the be progress, cash the build-out time growth may and spaceship expansion profit cover quarter. for that we time, engine thinking our the which our growth. program. economic second-generation generated the going revenue our with will mothership revisit this including for While we optimize during then growth launch will I'll operations solutions we're We'll and our capital get of our share further our

As being are building to produced. our we parts well beginning the phase in into tools spaceship program the be completed I opening, of shared and with

Our same shared as we quarter. near and the remained milestones medium-term last

in As a reminder, QX. we expect will continue up ramping part fabrication

with to is commence XXXX. Since and sequence. expected Assembly second day-by-day XXXX, include and of half tool the to schedules in the in spaceships first of fabrication we testing our have ship management of call, refined deliveries, rollout last assembly expected QX in the the our Phoenix parts our of build of

commercial expect As launch at to I shared in opening, operations the we XXXX.

per for enable with We are design high-quality of that the to with are tools program. Engineering, the are as create to of our associated quickly future for But large a tools X well fabricate Delta comprise to parts the the also the for full engineering our part being estimated shows manufacturing incremental facilities the through $XX cost item. spaceship used majority parts examples to fiber $XX an the spaceships. spaceships parts million used spaceships us tools at known ship. Page our NRE. spaceship completed investment, and nonrecurring largest NRE, carbon nonrecurring make million of also of will These

a made tools the known parts Invar, with standard precision iron gold alloy, material are Our after in delivering provides as which a nickel time time.

X. Page to Moving

well-known testing testing. we is parts of duration our actual CalSpan, continue system first underway. and company of and a flight fly-by-wire in able test able flight is Lear circles control well here will test the work our is this in our a are owned testing program engineers Our ways our advance spaceship for jet pilots advance test CalSpan, in This flight prior test. of assess many The to critical of spaceship are first on spaceship. the by well flying Working bed effort of software also shown to to flight Delta one with our configurations spaceship throughout flight of

Turning to Page X.

We our first Phoenix Mesa spaceship have manufacturing and in advance quarter XXXX. of of ships our from operations. of inspectors emphasis key to after return are flight be operations and joining in ships, maintenance to to technical hiring they to will augment also for relocated A&P X building the with the teammates support test engineers, highly Mexico ramping commercial the Hiring assembly experienced quality Phoenix personnel the and our is New America which early experienced mechanics, Phoenix. Many Spaceport will who other team area in work on the in teammates our this

are alive. We our spaceship excited as all factory comes

the released work Page at that facilities to today, Moving happening Earlier up. as major fabrication continue tools we is ramps glimpse our into X. parts short give a partner to to and video exciting arrive a

a planning spaceship complete suppliers, lines. our As parts working take in the moving program, for Working and process design impact this lots have as to complexity we scale, the XXXX. originally than the with within time of forward to we elements implemented identified our able in overall often project momentum in expected Bell delivery maintain in us can longer design to lead expected planned are commercial opportunities with design manufacturing program and their turn In re-sequence of with and of who can expected. to certain revisions. And reduce great summary, on of been service to build extensions. Together, we've within track our and work these overall Qarbon, underway

shows to spaceships fleet initial an and Last for ships Slide add operate those fleet. The business context allow of additional in spaceship economies can spaceport deliver we growth. made I expand are quarter, scale we semi-variable, copy or This strategy them. a economic around columns. in our to highlighted an nonrecurring more we to we want Page required the of a Many fixed the support difference as a fourth Turning video of costs profitability X in program opportunity between describing slides that Unlocking the and us our the And the the Delta cost and fleet you see presentation. spaceship. number requires of our to X. this the shared of a have drive to effectively that in to model. provides mothership our third expanded investments excellent

Slide So to X. turning

the our performed modification we progress of of in of This our program, our commitments second our will mothership. next bar is build on generation now work have the this us through design schedule we the expected in be restart limited current increasing an we to we has the look with illustrative extensive for our Delta following XXXX top as With at mothership. similarly mothership made [indiscernible] slide capacity to have strong XXXX. well for approach the at phase as which perform mothership look an in the to XXXX. The Spending second complete engineering and efforts, most provides mothership

We of hand pick expect more explain spaceship call the our second-generation Delta the released Doug program. I to from pace the update to and as plan. to up the resources over about mothership the quarterly share growth are

Thanks, Michael.

prior Class Revenue Turning R&D $XXX expenditures quarter in $XX million we same and was by equipment $XXX,XXX, compared property, ramped related development million SG&A $XXX in expenses were primarily in year the for by period membership astronaut our in $XX to Delta to future Capital compared million to the fees. million operating flow in $XXX the to Slide to and XX. compared year. fleet. million Free third negative quarter $XX for lower were quarter driven period cash Total period, last year expenses. driven as the of the negative was million prior up plant investment the

Turning to Slide XX.

remains marketable in and sheet cash, strong with balance equivalents million Our cash $XXX securities.

projections. to our Moving

of cash expected in flow to to free of quarter million negative be is for $XXX fourth the the million. XXXX $XXX range Forecasted

flow, provided typically providing profile the on flow for have not cash cash XXXX free helpful. a additional for we free think we outlook multi-quarter color While is

QX parts. tools spaceship we As phase in for peak build for in of XXXX we uptick as project in the we an are payments spending the the and Delta program, reach now

we new initial fleet. these organically with positive fleet X of operating flow, Delta reduced are and lower can These expected us, our used new XXXX test be our to currently be expected to generate spaceships. The ships of to have. investments the into of costs service through are capital With the our trend assembly behind delivery expand through the of spaceships which cash contributes spending remainder meaningfully capital to as progress we

the good, expanded fleet. greater be achieved our While this is of can by returns substantially accelerating development

of addition that generates From than enough to cushion on and in at investments As at enable expand the we years cost to our fully with right Michael XXXX, cash the plus another that to other above and becomes New the addition foresee utilized growth a targeted X, EBITDA quadrupling mothership $XXX see and economic would an fully first achieve fixed our to Relative of to described, at X to our double at in we in spaceships, also our is us engine a organically leveraging achieve capital the base globe. We spaceport earlier a from balance that operations, of expect project flow capital of amount America Spaceport sheet X by mothership around which pace times, we Mexico. the to the appropriate opportunity goals, spaceport while can spaceports flow the otherwise. Delta least with future utilized new than while profit tremendous we all cash would growth more X million. more the revenue fleet growth we infusion expand by there, utilizing accelerate capital. With maintaining revenue,

in the Our fleet could value that remaining balance gives expected expansion while can this capital. [ make and our the not of and slower ] We acquiring capital that pace timing us to in this flexibility strong maintaining sheet. Furthermore, be outweigh with progress And prudent created program. is spaceport, raise growth continuous but of us made represents. To cost capital. the for delay EBITDA the cash on to this far position allows Delta go growth strength utilized to would we the and with expansion. Back come this that that progress growth profit significant you, on self-sustaining EBITDA the spaceship are paving upon Building now a fully wrap capture excited capital, expansion from to can the the that looking further foundation, Michael. up, value expansion are global we way

the more excited as progress Doug. We're pleased of the with first We're Delta the to QX well spaceship Galactic. to next we start our accelerate bring prepare plans Thanks, will growth program spaceships process advance as assemble program our Delta as design growth of second for Virgin our milestones X our and strategy our to mothership. the with year.

for questions. call let's the open So operator,

of line Matt comes [Operator first of And from Akers Instructions] Wells question your the Fargo.

capacity. will I of X? It what's like sort and of X additional open latest your a was sales thinking up bit sounds quite ticket Spaceship on wondering reopening given

Just of you might sort curious how for when those. of you sell the think about phasing tickets

Matt. Thanks,

are I think -- of or us sales the opening flying ticket Delta our see less on year X citizens probably private you'll when we ships. within

of there. now, be the we're is XXXX when we make that's to shared Right we is, the we as And likely So reason somewhere back sure want half taking hold. yielding. towards to to advantage most want of before,

years, of ahead the training a journey and Mexico week then have a is flight. Once not We get of constrained to as in demand. X-year and they X from that beneficial. the we front And with to business think building them it's window board, for the have going before quite up New letting relative time sign to we we it's come expect out time supply on people appropriate generally

that's sense so, us. for a timing of good And

Got the you equity just -- I you've to that a this going balance minimum a it. mothership? more sheet you additional how guess sort the fast about is But accelerate. optionality think program here? kind do of cash issuance as question talked need current you you know of any want on issuance under -- you the of we guess program? I equity the then, And on I And foresee pursue forward balance for think of kind of guys given there sort should

Thanks Doug. the is question. This for

targeted mothership on bring that and a sheet growth, capital Deltas way to opportunity balance we to today couple become really capital. accelerate And and to at growth So X the America. and a Deltas Spaceport cash out how the get enough put have in to first an in along the fleet would in we the more second round cash that talked be described the about service into we've flow perspective, growth positive. There's to

we opportunity So chart shows the that. economies see of we in of economic big And this brings forward in that with that here scale. magnitude go to because it an had the

and we vehicles extra and another mothership the can X EBITDA. With more in our quadruple revenue fleet, our double our spaceships,

we a interested we available we more leverage pursuing often So the get And because that's goes the that we're more the cost volume have to and that. we bottom the fly, in base fixed very and have more line.

but opportunity need vehicle to don't in that bring growth we the ahead do do have we see immediate that any capital, investment. So an to of

the have So sheet and time have a mothership along the also are ready XXXX we line we to targeting is we by always ensure balance a strong way.

that the we're growth no of needs all strong. is there's balance we and But also to support balance enough capital So keep our cash the than putting out growth sheet minimum mentioned there. for more

of Your next line TD question Oliver the from Chen comes from Cowen.

are you your that add for any then, there? think your your anything to the really the on then is it What's just there? we everything up, your quite in potential in partners, And as during period we and Qarbon, consumer engagement know terms the We're on going how about and may keeping everything marketing have partners, going the you dynamic and sounds thoughts side of mind engagement priorities marketing like as a key manufacturing some What production? with as thoughts well the Textron And and should environment. this Bell about tariffs sourcing risk is around as and think planned.

Oliver. Thanks,

from States. everything things possibly are As in future, far that in the our efforts right? as and are or reasonably insulated of on our States, may think we we the Most here United chain, tariffs supply other the I be United build in coming going

are the suppliers United States. here in all Our

in the work really chain, States United think, Qarbon been and to regard. Bell that good have supply connected is to with. I our So,

as in we We the build the are, midst said, of phase.

Georgia. had tools out in our bringing You to of carbon one haven't are it. of at And we that just couple in They really the video X probably the to showcasing need a coming parts be can see the one had a before put like And to into Qarbon's as of use assemble what a in we with big they've working We chance that build factories. been us, real there. spaceship. made it's brief have them that they ones course

for that super teams fabrication the be up. The allow there's the the So that which and -- continuing Bell, way. been is part program through a so the the in to this. And will parts in like order change important chain, we then will and It partnership, something a in a order this, has us learn complex schedule of to will a We the tool, work change evolve, it or right its a change up needs in at tool tool and built, that ripples and think sorts things all and ramping get whole we finish through. small supply a a going the Qarbon that get where to requires because as development design come we on make to that design right aerospace manufactured path we're back tool manufactured create forth.

happening all all to in Bell to jump at with can regard back forth these We your the same been frequently. And outstanding topics and time. Qarbon question, work that's So Oliver, have we the going with them the or see work right because us this We resolve we to if to take either it can work on things to can come. issue. things to in which away, longer, are order certain re-sequence and together

program. hour-to-hour on at how our heard the critical in maintaining and And We path Qarbon. So day-to-day, partnership the schedule really with Bell we're that's friends hyper-focused going me of you talk that about forward. our do

from about we that need because really milestone we're and making quarter no change expect. the talk expectations us progress last heard So you the our in

not that our to the that from is, start relevant come this putting to like not start retail bit approach a you into quiet really that, a as we Bell me and but customers we've are will to they're looking as to hiatus, a that. ships start XXXX. But marketing investor just big spaceship, the and space, we as half going on and investors, both the so build things Qarbon, as oh, And more focused those when to call, You see asked really we of that an much [ our us like we're out will putting that these taken the out, along. here That stories, starts parts consumer through what ramp fans big that's it's little are coming about see change phase, and are but for coming these think our because full lean forward tools strategies assemble marketing. for Obviously, back us sharing move during building. up on marketing excitement out around event ] carry for that the us you'll a

Delta interrelate what What's Okay. And the Class on the your to that decision And it encouraging. ships announcement fourth thoughts you're third sound underlying and demand? regarding seeing? does and

kick the that, positive in while. we've existing basis. And here. on in Doug doing with the hand, time, out strategy very those utilized that this to we've all about reach New mothership our less, year, talked a right? of along, super the is in talk focus has has well, a ships we one -- Mexico, our The progressed I'd effort and engine cash kept on the getting Doug, remarks. spaceports, that focus our say the I'll that already You've first door take heads the we as so down put over and X Delta well quite Well, that's economic fully prior our and just really -- on prepared can on us for it, to in heard about been of build

fixed right okay, a spaceships is running as more in now profit. there's to want carry we cost So so said, get time more a that well, to, and Doug can semi-variable customers, back lot we drive the spaceport. add to of more And

it So revenue, as at a with flows and leverage. capacity drive top we of add lot the really down

scale would the everything of been through is So ] well if to while. It's of able have of of because the we'll phase we over EBITDA organic our now the on because build earlier who funded move kind we timed from to generated be really mothership. Delta capture cash to in that the operations, the have moved engineering economies into well, spaceship growth the take the really advantage wait design And free engineering just and works -- through kind balancing than a been we these and otherwise we've ship, phase flow as goal workforce. engineers to start that [ load working can our up capacity out of

the said, And third ship how to step-up then, us from capacity second So the nice that self-fund this to and be by in going. And as is keep is go get able only fourth these to course, we've us where now, also already XXXX. of it Doug starting to allows in at have and bring the the going, allow will the growth America. which and Spaceport right not by there. we That a tools mothership, time the spaceport to infrastructure we manufacturing will but now built next to then Delta

next comes Your Jefferies. Konrad line Greg of from from question the

uptick reduction XXXX some in QX cash kind of flow and and color just gave helpful through Maybe the -- around then free you XXXX.

kind capital, In expectations been past, XXXX Just flow to around think I XXXX outlook of commentary relative multiyear you cash about growth cash and XXXX does any the with the flow change talked -- free to Has free the had there around usage? XXXX.

all planning change, we've because No this been along.

down cycle So fabrication. of are in and Delta. we of got trend life We've just XXXX where the going CapEx the parts because into have in tooling we a

lower focused cost test. assembly and because a on the is And base phase so then next just we're

off higher with and spending it fabrication, to beginning. like -- at work spend tooling And engineering a parts did ramps mothership get because a lower later it's the in, we profile, up the Delta. coming then the with at With just when the level starts when we

'XX, 'XX, overall is 'XX for profile the So yes, same. the

a information add be CapEx. little trend a we is, more to we also expect in will a of our of level that's be a expecting helpful below just down more of spend. And bit that And color at exiting quarter million than XXXX. more half $XXX can spend in we're XXXX one So

a that about. to and parts expense then tooling because talked XXXX, you'll fab will this or spend shift expenditures I more So from be of see overall And will in there throughout expenditures. capital be half capital ramp our

So here coming it shows and in getting the in. we're that process that the maturing through and place parts infrastructure

And about acceleration, then, when growth capital talked you and was that kind that of bridging and helpful. to really

the the You doesn't under in exiting capital burn just XXXX. or million growth those quickly initiatives? top Delta? and of Does it you're because on those as that on first second talked about $XXX of Or the reaccelerate growth production now improve filtering

Yes.

is where look So then, with you we're Class. coming in in, start we're the I right, this way XXXX. at to doing just Delta think right the see cash to the flights at By from that

and that to change a we flow positive thing -- commercial service the Deltas. first ramped to as business Delta enter So starts up cash with whole the X

that operations. the now to additional you'll which towards build to coming other inflows self-sustaining So growth burn then And of the add even -- the become as feeds shift because continue money that, point. spaceports. cash and the over then, time at of expansion up fleet capital, we into more this with continue cash we improve fleet from that in to we And with see commercial

up beyond at trend. look that's to future the that. the that way it us sets But So for

sized me. one maybe I million. one was mean, And for $XXX kind it capital at helpful, growth last then of you

of million. just thinking going $XXX of mothership, recurring the of think X You [ the NRE about production the especially ] development the kind million Can towards and production Deltas we said between as about $XX second that of maybe Delta, the the and Delta that?

starting next The we're get a on the really Deltas of mothership. mothership, main on then the on and the to capital working because still going fab to tooling and thing right, X then is focused the X. and the on growth design be use parts is And

you'll pair the the everything growth that for that that they'll and add mothership. the that place So about the already as And see be we for to the capital. And same use all real and spaceships would then, factory have tooling time. we in coming together with

have mothership spaceships fully we new utilized and X the spaceport with the the arriving. So

Your next Myles Walton Wolfe Research. of the question comes from of line

I timing XXXX. to I was mothership understand second the for hoping sure make -- maybe just mothership

earlier this for right? talking if that's with you the year in enabled then actually second for had that's you're being there is XXXX the capital? Is the think by what the capital And mothership. about? within also moving timing growth a correct, schedule the schedule Or I is growth that something

been we've ensure very What -- As do trying first. to clearly is first things

Let's hand operating to cash and we to that build so take Delta and X use get that have the ships can cash on there. manage positivity we first from these kind of our destiny

been well as and we've going planned. where that's That's truly So focused.

first do stay cost using that is that will dipping that as the mothership would in time enough ahead X to same be frame, as we of explicit come that which 'XX obviously we to building this with your Myles, haven't mothership to We the as we come before. aren't we what in about third funds ramp is well want That the want the bring those in in, probably the spaceship, fourth spaceships. described timing, the been we've into funds as So point, so past. the and for

driving the from next can together not start but 'XX be spaceships so coming all together X to use and would profits that we put mothership, it. them So, only also in, in those

it. Got Okay.

of green plan. you're that's your more this more -- plan. gating light So your of a with And the consistent exercise is It change than a of capital investment? it's sounds like

I and just X. timing the X and through guess, that of managing about We're more Deltas correct. That's being explicit

that's that Okay. And design then, got the more like it component to design it level at and the And more having you Delta down where actual the Is feedback you you're design you loops much Or the component level sounded that and moment. talked design, Delta indicative loop the the of was the are you're designs? tool manufacturing feedback into Class of that loops. Michael, haven't you're feedback? the having on through feedback the about process

Yes.

combination it of, some. in loops, working the the left manufacturing it's a a group, -- really work drawings is for are feedback loss, of was come through will So the we're wider for details And I'd tool instructions relevant building. as manufacturing an say, drawings we're the example and really assembly that that maybe then,

as that And and Different cabin call all has in just go simple built brought were the these a interior those that realized modeling I'll And together use. a for it And floor side we those down. example, we're software parts. there. And are had we the flange areas. XDX different it kind and people working of in it together, as has so, [ fairly a to walls our use ] assemble, conflict we to are to a how on of in brought bolt going there's, when we we these they back these

process. But the so, to little into a and that simple a conflict the place. design a the in it's just one flange that And a different fairly tool standpoint, made adjust thing that to easy was resolve already on like, design make from change

assembly kind time moving and of lose -- that. But we're and what how instructions. And it's And through we into to share time plenty is just so, don't have it we drawings blocking we to therefore, off for dynamic. of the works and that's out, critical the now through build that manufacturing had rethink tool sequence the of it work to all tackling trying path we so

revision. We continue to elements need identify that

are those pretty straightforward. Sometimes

it the Sometimes tweak a design. needs to

Sometimes that's it.

have sequencing back to those schedule Sometimes ripple everything the track. keep through tool path. And to we on designs then adjusting start

into bit program -- teams is battling was of by those little give So day, this. as typical a of to color things day are trying that just our are the just I like a

[Operator question Leshock line Your KeyBanc Instructions] from next the comes Markets. of Capital Michael of

progressing areas? relative due come looking XXXX? to I is to it's how of come wanted be expected cash Delta did your into pushed up you budget Previously, spending the the ships? timing to a the lower. cash it Class bit budget now in initial this to the related Was Class for burn in follow but like had Or ships, certain being year flow. could under largest in Delta And some XXXX you to on

So, overall, been our actively managing very we've spending.

as of possible. the come a within just paint to numbers control quarters. that highlight always were think spend our what still bit to we look the stands. timing our of I be But lean some of and previously also picture we to trying trying again, shift There's and money like, from active be what XXXX little profile, conservative lower on as which year-over-year could So for

the So peak. is will XXXX be lower. still XXXX

gave we ago. that while -- a And guidance so

of came what I could think expecting. And your the second then we pretty close question, were remind Mike? we part in me, you

program? Just initial overall, is the Class progressing your how for budget the relative Delta to

very well. Yes, it's tracking

projected. with pleased tracking spend very program we've project all So we diligent what through the very and different for we've and remainder tooling track been had of the program been what of for we program with about the is the from development on NRE aggregate elements that the the

you in facility, And on seeing fast the at of headcount Arizona I'm need headcount a add how Okay. facility? what you and then are how get additions could trying availability? additional just that the labor to labor would much you sense add terms to at

Mike. Thanks Michael. It's

them X Spaceport think these intensive phase ships to Just over which first what's hands-on course year, fairly they'll -- for through the then their been to testing for of about going that ground before if testing, talking and we've the a on fly in time flight a of the let's Phoenix we'll a working in ships period in that there'll move in at Delta into you out time point be go kind it of through flight call into probably we'll we're bit be the assembly mothership is next where then program. And those happen rolling and Phoenix context, those we'll getting while after little ships America, assembling test there.

more time. The So another larger another trying group probably build, will because large, It'll a is be come I'll consistent to have permanent in thoughtful ramp we'll do comes about spaceships build, it what consistent. be when call mothership at mothership. this ramping up. we're at the an not Phoenix then spaceship, mothership excessively do

help Mexico, the to to home those Delta bring them as lead New A the in go and of great the expertise Phoenix heavy phase. And group. the ships to of very bring through we -- go mechanic kind those through put ships. X New lot New Mexico, flight. that's ] and Phoenix have talented that and come to have agreed based building team us our back all were [ then we So we first that of handling maintain team will A&P folks back in They and as Mexico leave to a

in ] Mojave give in to job. we means context an to the strong Mexico as believe from bringing So modest, it we of said, employer we'll is will need of few a you because that hires and is from building And choice This that well. With do what as And highly relatively all in. the spaceships. appeal and be I do in is general. we're there Phoenix is [ very market amount this trying Phoenix we because that New a folks be compete we sex come in

So yes, come quarter. to That we have will that. the fourth in later do go

So that. to people deep. market we'll But we of relative putting our need believe the the energies quite amount I depth to is be

you And time We for your thank disconnect. we day, you may and call. This great do Have questions, do today's thank conclude today. everyone. you does for a your now conference