Terran Orbital (NYSE:LLAP) has reported record revenues for its 2022 financial year as it delivered a record 19 satellites, including 10 for the Transport Layer of the Space Development Agency (SDA).
Releasing results for the three and 12 months ended December 31, 2022, the company also highlighted a $100 million investment from Lockheed Martin and an extended Strategic Cooperation Agreement to 2035.
Revenue for the year increased by 130% to $94.2 million and the company ended 2022 with a backlog of $170.8 million, a year-over-year increase of 131%, not including a $2.4 billion order for 300 satellites for Rivada Space Networks.
READ: Terran Orbital wins $2.4B contract to build 300 satellites for Rivada Space Networks
“We are thrilled with the continued strong execution of our team. On-time delivery is critical to our customers,” Terran Orbital co-founder, chairman and CEO Marc Bell said in a statement. “We met our commitments and delivered ten satellites on schedule to Lockheed Martin for the Space Development Agency’s Transport Layer Tranche 0 in 2022.”
Supporting full-year revenue growth, Terran Orbital reported fourth-quarter revenue of $31.9 million, up 197%. It said the increase in revenue was primarily due to the continued support of the SDA’s Transport Layer, inclusive of the completion and delivery of 10 satellites to Lockheed Martin for the Tranche 0 program.
The company reported a gross loss of $10.8 million for the fourth quarter and a $17.3 million gross loss for the full year. Excluding share-based compensation and depreciated and amortization included in cost of sales, it said its adjusted gross loss was $7.3 million for the quarter and $2.2 million for the year.
During 4Q, the company said it abandoned plans to invest in a company-owned constellation of Earth observation satellites. As a result, it recorded a loss on impairment of $22.4 million related to costs previously capitalized as construction-in-process associated with the development and construction of the initial satellites.
Its 4Q net loss narrowed to $33 million from $40.3 million a year earlier due to a decrease in the fair values of warrant and derivative liabilities following the Tailwind Two Merger and due to the non-recurring loss on extinguishment of debt recorded in the fourth quarter of 2021. Its full-year net loss came in at $164 million, up from $139 million in 2021, also due to a loss on impairment and a higher interest expense.
Capital expenditures amounted to $22.5 million and it ended 2022 with $93.6 million of cash on hand and approximately $302.2 million in gross debt obligations. The debt includes $22.5 million in connection with an obligation under one of its PIPE investment subscription agreements, all of which is payable in cash or equity at the company’s option, subject to certain requirements.
Looking to 2023, the company said it continues to focus on the successful execution of existing contracts and delivery of satellites on schedule, while also continuing to expand capacity, develop new solutions, and win new contracts to expand its backlog.
“We expect to begin delivery of 42 Transport Layer Tranche 1 satellites in 2023. Leveraging this performance, we are preparing bids for Transport Layer Tranche 2 and other SDA programs including T2DES and Tracking Layer which represent nearly 300 satellites this and next year,” Bell added. “On the commercial front, last month we were awarded a $2.4 billion contract to build the constellation of our new partner, Rivada Space Networks.”
2023 business highlights to date:
- On pace to begin delivery of 42 Transport Layer Tranche 1 satellites to the SDA during 2023;
- Awarded a $2.4 billion contract from Rivada Space Networks for 300 LEO satellites and related services in February 2023;
- Commissioning previously announced Irvine, CA expansion in 2023 to bring manufacturing capacity up to 250 satellites per year; and
- Announcing additional Irvine expansion to be online as soon as 2024.
The company reminded investors that its 2022 earnings call is scheduled for 11am ET today, March 21.
The live webcast will be accessible on the Terran Orbital Investor Relations website at investors.terranorbital.com.
The call can also be accessed by dialing 844-200-6205 within the US and by dialing 929-526-1599 outside of the US. The passcode for both is 553921. A replay will be available by accessing the same link as listed above.
The full results announcement can be accessed here.
Terran Orbital is a leading manufacturer of satellite products primarily serving the aerospace and defense industries. Terran Orbital provides end-to-end satellite solutions by combining satellite design, production, launch planning, mission operations, and on-orbit support to meet the needs of the most demanding military, civil, and commercial customers.
Contact the author at stephen.gunnion@proactiveinvestors.com