Terran Orbital Corporation (NYSE:LLAP) Q4 2022 Earnings Call Transcript

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Marc Bell: Thank you.

Operator: Now we have a question from Den Ramp from Ascending Capital. Please go ahead.

Unidentified Analyst: Hi. Appreciate your time guys. I’m wondering if you could speak to this — your cash needs and how that could change once the Rivada gets the ICU approval. Could — is that a benefit to you guys, or would that make your cash needs worse? In other words, is there a possibility of getting a large upfront payment when this project kicks off that could ameliorate some of your cash needs?

Gary Hobart: Yeah. So, with any commercial program, see, we don’t give a lot of credit. We’re a cash in the advance — cash in advance kind of people, and God we trust, but all of them must pay cash. And so we want — we try — most commercial contracts are pay in advance, then we work, pay in advance, then work. It’s like a law firm working off a retainer. We give very little credit. Unlike the Department of Defense where we give credit to, but they pay very, very quickly. So — but we are under the commercial side, all of all of our commercial contracts are written, so we very, very little cash upfront we have to spend.

Unidentified Analyst: Okay. And kind of a follow up to that. Regarding — you’re seeing in the market now and the banking crisis, I think part of the reason you’re seeing some pressure on the stock before today, the last few days we’ve seen this across the stock market, is any companies that require cash has really been punished because of this crunch in regional banks, et cetera. And I’m wondering if you have that on your radar and what kind of alternatives you may have in mind to be able to limit dilution if you do need to go and get that capital. And part of that as well, are there any concerns, and your lawyers feel comfortable with the financing for Rivada, but if there is some sort of a crunch in the banking space, a further one, would that risk the funding coming into Rivada as far as you know?

Gary Hobart: While we are thrilled that we have Rivada, we don’t count on any one contract. We continue to go out. And just like we will be bidding on the new SDA programs coming up, we continue to bid on lots of things, and we have a very high success rate in winning what we bid on. So, we continue to bid. We — with Lockheed Martin, we’ve had a tremendously high success rate, and I think we have 11 Lockheed programs in house right now, and we continue to be — they continue to be a phenomenal partner and working together. So, we don’t — we are — we have done very well on the cash management side. We just raised a hundred million last year from Lockheed. We feel pretty good about where we are and have no concerns at this point about our cash.

Unidentified Analyst: Okay. Thank you.

Gary Hobart: Thanks.

Operator: We currently have no further questions, so I’ll hand it back over to the management team.

Marc Bell: Great. Well, on behalf of Gary Hobart, myself and the rest of the Terran Orbital management team and all of our employees, we thank you very much for your support and your continuing confidence in Terran Orbital. We appreciate everybody tuning in for today’s call. And as always, we try to make ourselves as accessible as possible to the investing community. We’re going to be at the Sidoti conference this week tomorrow — Wednesday and Thursday this week for those of you who wish to attend and we continue to make ourselves available. So, feel free to reach out to us at ir@terranorbital.com and we are happy to answer any and all questions, and look forward to seeing you in another quarter. Thank you very much.

Operator: This concludes today’s call. Thank you for joining. You may now disconnect your lines.

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