Terran Orbital (LLAP) investor relations material

Executive summary

• Revenue for Q2 2024 was $30.4M, down 6% year-over-year, with a net loss of $35.4M, widening from $28.1M in Q2 2023.

• Six-month revenue was $57.6M, down 5% year-over-year, with a net loss of $88.6M, compared to $82.6M in the prior year.

• Adjusted EBITDA for Q2 2024 improved to $(17.4)M from $(21.4)M in Q2 2023, but six-month Adjusted EBITDA declined to $(45.6)M from $(43.9)M.

• Backlog dropped sharply to $312.7M from $2.7B at year-end 2023, mainly due to the removal of the unpaid portion of the Rivada contract.

• Substantial doubt exists about the company's ability to continue as a going concern due to liquidity constraints and upcoming debt covenants.

Financial highlights

• Q2 2024 gross profit was $2.8M, up from $0.8M in Q2 2023; six-month gross loss was $(3.3)M, compared to $(0.6)M last year.

• Adjusted gross profit for Q2 2024 was $6.1M, up from $2.8M in Q2 2023; six-month adjusted gross profit was $2.6M, down from $5.1M.

• Cash and cash equivalents were $30.6M as of June 30, 2024, down from $71.7M at year-end 2023; further declined to $14.6M by July 31, 2024.

• Long-term debt stood at $187.4M, with total debt at $200.4M as of June 30, 2024.

• Q2 2024 net loss per share was $(0.17), compared to $(0.18) in Q2 2023.

Outlook and guidance

• Management warns that current cash is insufficient to meet obligations over the next twelve months without additional funding.

• The company is exploring strategic options, including debt or equity financing, asset sales, or a potential sale of the company.

• Uncertainty remains regarding compliance with EBITDA financial covenants by year-end 2024; failure could trigger debt acceleration.