Q3 2020 Maxar Technologies Inc Earnings Call
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His release the earnings call slide deck in the company's most recent Mdna section found in the four in our form 10-Q, which is available online on the company's cedar profile at Cedar Dot com.
Efficiencies and everything seems to be taking a little bit longer on the manufacturing side.
I think we're also starting to see some cobot related fatigue on teams, especially as we head into the fall and winter months.
Overall, though the demand environment for our products and services remains resilient and robust.
Our Earth intelligence customers continue to rely on us for important national security and commercial missions and we have seen little to no impact on underlying long term demand for our Earth intelligence products and services.
Who will provide some more details in a moment.
In space infrastructure, we posted 12% year over year topline growth and roughly 850 basis points of margin expansion this quarter.
Performance was driven by the intake of recent wins, which as I've mentioned in the past have less development work associated with them.
Free cash generation from continuing operations tracked better than expected at positive $19 million this quarter.
Total company book to Bill was roughly 1.6 times in the quarter and now stands at approximately 1.5 times year to date.
We saw strong bookings in both segments a trend line, we'll be working to keep up.
Now a few words on guidance.
We've made some modest changes to our revenue guidance for the year given some of the uncertainties with cobot, but have left the ranges for adjusted EBITDA and Capex unchanged.
We also tightened the range of outcomes for operating cash flow given year to date trends.
Secure watch product, which is a cloud based geospatial subscription service country.
Contracted revenue for the product has roughly doubled in the past year.
As a reminder, secure watch allows end users to access an exploit or a variety of data sources, including Max or is 110 Petabyte library of high resolution satellite imagery.
Including ramping the production of Threed datasets at scale and to position us to take advantage of growing opportunities.
The improvements secure watch the general availability of 15 centimeter HD imagery and the investments in Threed are good examples of how Max or continues to invest and innovate to both drive growth for the company and to better help our customers achieve their mission objectives.
On the order front, we had over $500 million in bookings this quarter driven by the $300 million enhanced view option year renewal.
This award demonstrates Max our dedication to delivering innovative solutions for our customers most complex challenges.
In this case revolutionizing the way users and remote sites obtained the critical Earth intelligence their missions demand when and where they need it most.
After the quarter ended we also announced the Max or has been selected by the U.S space for us to develop prototype mission data processing applications for the future operationally resilient ground evolution mission data processing or forge MDP program located within the cross mission ground and communications enterprise at the space and missile system Center.
Best in 2021, including a NASA mission that needs to launch in a tight window to reach its destination.
Its way through one large program and then forward loss position, which dampened margin rates intelligibly delivered.
In commercial we are seeing a mix of Geo and Leo demand across all geographies we.
With a strategic posture as we possess capabilities thats across many of the key areas in which our country's investment.
From spacecraft space robotics to geospatial data machine learning algorithms and three D models, we are well positioned to help our customers achieve their mission objectives across space and cyber C. Four ISR missile defense Jointless Valley forward force projection and autonomous systems.
Supporting the agency with the tempo and psyche missions and we continue our long heritage with Mars Rovers.
We are extremely excited about all of these programs and look forward to supporting both science and exploration missions at NASA well into the future.
While some spending may shift around over multiyear periods as priorities evolve, we believe we're well positioned with key priorities and future spend and intelligence of space requirements and are pleased that our commercial business model positions as well for the type of procurement programs are government customers are looking to deploy in the years ahead.
Rapid development of new technologies and capabilities at affordable prices.
That's what's needed in this environment and this is something we are focused on continuing to successfully provide.
There are always changes and a review of priorities following elections.
What I can say is that I am confident that our leaders will recognize the geopolitical environment for what it is.
What future requirements are needed and that they will plan accordingly.
And I'm confident that our country's investments in space based activities does not likely to waver, including and agencies like NASA and our own space for us.
And finally and confident the capabilities Macs are brings to the table and and our ability to operate a commercial business model that brings affordability and value to customers as they look to execute execute their difficult missions over the next four to eight years.
With that I would like to hand, the call over to bedspread discussion of this quarter's financials.
Thanks, Dan.
Before moving on.
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From the ambulance station deferred revenue and adjusted EBITDA in 2019, $89 additional revenue adjusted EBITDA of 2020.
The amortization foot revenue complete effective on this phone.
And there will be no further deferred revenue waking life on mortgage contract.
And what continent, while we're giving a lot of assistance to close separate external for wanting to burn off from more economic fabric with visuals.
Please turn the slide seven.
Adjusted EBITDA margins have increased.
A 160 basis points due to the improvement that our intelligence and our profit on our expenses.
So in the burn off of the Caribbean seen both revenues and income and adjusted EBITDA growth year to date.
As illustrated in the Companys slide recounts containing operations. This partially influenced by the refining our game the re measurement of our previous guidance investment right.
Please turn to slide month.
Our consolidated revenues decreased 3% in earlier in the quarter driven by a $10 million reduction in deferred revenue recognition, which I just spoke.
As for the deferred revenue effect revenues would have increased by 1%.
As I stated a moment ago third quarter of last year, there was $9 million related recognition from international customers in the lights on a contract.
In 2000, I think the short term three quarters in revenues adjusted EBITDA booked in Q3 last year, which did not repeat this year.
This was offset by $9 million in current quarter revenue growth from new contract wins and expansion of existing programs with yields terminals as well as growing installed base of international defense and intelligence customers.
Child National deferred revenue roll off and the timing of awards last year drill underlying growth in the quarter.
Adjusted EBITDA margins decreased 430 basis points year over year.
If you say the effects of deferred revenue burn off margins decreased by 210 basis points, driven primarily by the delay contract signed in 2019 previously mentioned.
Q3 revenues declined modestly compared to Q2 this year as a $10 million increase in deferred revenue recognition on enhancing contract was in part offset by revenue growth in our services business.
Adjusted EBITDA margins contracted 580 basis points quarter over quarter.
If you exclude the deferred revenue burn off margins declined 430 basis points to more normal levels from tough comp in Q2 due to variety of factors, including a more normal mix of business and to a lesser extent on the timing of expenses versus revenue on our safety products. Following the acquisition of product line.
Please remember that treaty revenues are expected to kick in in the fourth quarter like they did last year from a timing standpoint.
Revenues increased 3% year to date and adjusted EBITDA margins increased 20 basis points on a year to date basis.
During the effects of deferred revenue roll off our year to date basis revenues increased 5% year over year.
Slated deferred revenue burn off adjusted EBIT margins EBITDA margins have increased 110 basis points as compared to the prior year.
We do expect adjusted EBITDA margins in the past four years declined slightly on a year to date basis as opposed to more of the burn off of deferred revenue from the enhanced fee contract.
We will be comparing 12 months should approve that.
We also increased margins on commercial programs.
But importantly, this is the second consecutive quarter of growth and profitability of space infrastructure.
Please turn to slide seven.
How many generated 115 million in operating cash flows between leverage this quarter and invested $96 million in Capex and developed intangibles drill.
Year to date free cash consumption is $43 million.
As a reminder, cashless payments are 23 Green notes are due in Q2 and Q4. This leads to higher cash interest payments in those quarters compared to Q1 and Q3.
Please turn to slide 12.
We finished the quarter with debt of two and a half billion and cash of $60 million net.
Net debt is up from last quarter due to the acquisition of rights on that otherwise would have been relatively flat.
Our bank defined leverage ratio in the quarter approximately four to 4.2 times down roughly two thirds of the term.
From Q2.
Driven by the pro forma inclusion in the Viacom acquisition and a stronger trailing month adjusted.
EBITDA. This compares to our covenant of seven and a half times.
We have roughly $528 million liquidity at the end of the third quarter.
Please turn to slide 13 for discussion of 2020 guidance.
As Dan indicated earlier.
We have modest changes to our revenue guidance at the segment level or keeping ranges a little wider than you might expect from one quarter.
Commercial sales growth intelligence are facing modestly longer sales cycles, and the timing of awards to dry con can be lumpy and especially so in the current environment.
With the combination of these factors in our intelligence there is a chance that awards can toggle between Q4, and Q1 next year, creating both upside and downside.
The guidance for space infrastructure inquiries were unable to see growth in the fourth quarter and making up for the light revenue performance in the first half of the year.
Recovery cases spiking across the country special construction dependents on suppliers and healthy workforce as opposed to some level of risk that we will continue to monitor.
Because of these factors we are leaving the range for adjusted EBITDA impact at this point, which again is a bit wider than one might expect at this point in the year.
The cash flow, we're tracking better than expected on a year to date basis as weve been closely managing both capex and working capital.
Thats as Capex could step up in the fourth quarter and our working capital variation due to experience due to timing as.
As such we are maintaining the outlook for capex and increasing our midpoint for operating cash flow, while narrowing the range.
You will speak more thoroughly on 2021 guidance in our Q4 earnings call, but I wanted to do as an initial indication of how were thinking about the year ahead.
In space infrastructure of the strong year to date book to Bill in 2020 suggest we should see solid growth next year.
We should also see continued margin expansion potential next year.
Continues to shift towards additional work.
As I mentioned earlier, we posted adjusted EBITDA margins approaching 7% this quarter, despite revenues being hampered by a zero margin commercial program involving a lot of development work.
As that program begins to wind down the second half of next year, we should see margin uplift and significant progress toward reaching our 10% plus adjusted EBITDA margin target for this segment.
In North intelligence.
We have an $80 million a year over year revenue and adjusted EBITDA headwind from the burn down of the deferred revenue.
We should see some acquired growth from dry cone.
And some growth from our idea I think personal customers to help offset this but.
Recall, the easy deferred came in at a 100% adjusted EBITDA margin rate and we're replacing that with revenue generating less than 100% incremental margins there.
He also has some cost growth next year related to the weakening constellation will continue investments in our brands and secure operations architectures, we won't see much contribution from Legion on revenues.
So there are some moving parts here on a consolidated basis, having said that we believe we have a path to offset the headwind on deferred revenue.
We're going to wait to see how things to gas wells for the rest of theater.
Before getting definitive.
With respect to 2021 cash flows external call and a lot less dependent on the timing lydalls between years. By example, somebody does tend to shift as next year, along with carriers active hurdles.
Fixed combination of the two years 20, and 21 will come in around where we expected that the timing of those cash flows could shift around.
Now finally here a few quick words about the 22 23 targets.
We shared at Investor day back in March.
Great.
Thanks, and good afternoon.
I appreciate all the color today on I guess I kind of wanted to hone in on the lead Gen and kind of the delay there for the launch has there been anything on your manufacturing side that is taking longer than expected or is this primarily due to.
To your customer being able to put the.
Satellites in orbit and and what should we kind of think about for the timing of the second batch of.
Leaching satellites.
Hey, Ben good it's good to speak with you. This afternoon. Thanks for the question so on the on Legion.
What I would say is I think everything's, taking just a little bit longer than we expected in the code related environment.
So because of that some of the vendor hardware is showing up just a little later on schedule than we had originally planned and that has a knock on effect right.
It's the full integration done a little bit slower gets into environmental is a little bit later, and then you start to run into launch windows.
So those are the primary drivers we do continue to also work on.
Ground software ground station in flight software integration.
In relation to that and that also partially depends on getting all the hardware in place to be able to test things out in the manner in which we expect to before we launch so I wouldn't really read too much into it other than than we are operating cobot environment. It's very complex program and things are coming in maybe just a little slower than we expected them to and that way.
Yes, I think last quarter, we said it'd be a Q2 launch we're just shoving out a little bit past that.
To the the the first available window after the national launches, which is that first week in September on.
On the second batch launches, we're watching the supply chain really closely there as well.
We will update we hope to update you on that on the Q4 call, but expect that to be in sort of three to six months after that first past launches.
Okay. Thanks.
Think you kind of mentioned in your prepared remarks, but can you maybe give us your latest thinking and some color on the human landing system competition and.
Is there a good way for us to think about how meaningful that might be if your team is are the down select.
Yes, sure and we we've been working very very hard with our.
Prime on that light Ocean dynamics.
And.
With the team that's been built around that we think we've got a very good design we were.
The number one rated design the first time through the competition, but the competition is formidable.
In terms of meaningfulness to Max are it's a it's a very substantial program and there is quite a bit of work the Max or is doing on the.
The thermal aspects as well some planning and design phase work. So it it's it's.
It's it's very sizable if we're able to win it.
And.
I can't really give give all the numbers for competitive sensitive reasons as we're going into the bid process here, but think about it as is one additional really good step in our diversification strategy across our space business.
Great. Thanks. Thanks.
Our next question comes from the line of Robert Spingarn from Credit Suisse.
Hi, This is actually Scott my guess on for Rob Spingarn.
Dan My question for you is.
Max has won a lot of awards recently for C band replacement satellites and those get delivered in the next few years, how should we think about the great trajectory for space infrastructure going forward. After their satellites are out of backlog.
Hey, Scott Thanks for being with US today, So I think the way to think about that is.
You know, we're going to get and continue to chase the best business, we can where it's available obviously the C band has been a nice award.
For us this year and we've got a.
Very tight time frame in which to deliver those.
And so they are they are really good business and they're really good programs for us and we're pleased to be providing those for Intelsat as.
As those wind up what we're working on really hard is to to refresh our pipeline not just on the commercial side and we think the you know the Geo comsat markets, probably sort of continuing to be flat.
Cross, how we're looking at and thinking about it.
Continuing to diversify with NASA work like the human landing system that has been mentioned in his question and then also really getting some traction on the defense and intelligence side we.
Always thought of that as sort of a three to five year ramp up there but.
We're chasing some good work in all three areas and we believe that that diversified portfolio should provide us with not just a steady base, but by growth trajectory across from where we are now.
Thank you and then on the various intelligence side with the chain is there a way to kind of quantify the revenue contribution.
Meaning growth versus replacement as those first two satellites come online.
Yes, there is it's fairly complex and we won't see a ton of that showing up in 2021, we'll see some of it but with even if we launch or right at the front half that when the September 1st we've got about a.
60 to 90 days, we always think about it as sort of one quarter of a check in period on the satellite. So you won't see a lot of it there the real the real shelf will be in 2022 from that.
But.
Look it's meaningful capacity.
Those two agents exceed the capacity, we lost with the Worldview four failure and that had at the time over $85 million $85 million of growing revenue on it. So we do expect.
Some significant step up once lead and start coming online.
Thank you.
Next question comes from the line of Tim Chiang from TD Securities.
On things.
Thanks, Good afternoon.
Im just wondering if you can talk through you mentioned kind of that speech.
Speech infrastructure.
Being a business that you are moving towards kind of a 10% plus EBITDA margin.
I'm just thinking even longer term are there some structural or competitive reasons why margins could even move beyond that like into the mid teens again over a much longer timeframe or is that kind of.
On a 200 basis points above 10% or a good long term assumption for that type of business.
Hey, Tim I'll, let biggs I add some more color, but remember as we as we diversify the business, we're getting to US now another a mix of not just.
Commercial programs, which have historically been firm fixed price.
But also NASA and other U.S. government missions, which are oftentimes on on a cost plus basis.
But also then entail less.
Less risk of downside and so we as we think about the blended nature of those.
On the firm fixed price, we'd be shooting for more of those mid teens margins fund the.
On the cost plus we'll have to be competitive with the other people bidding on those programs and oftentimes those are more sort of in that.
10 to 12 range, because you want to add any color to that.
I think you got it right.
Yes.
Middle East customer that accelerated.
Three quarters of revenue in almost all you know an awful lot of EBITA into all into one quarter.
So I think you know it masked some really good underlying trends, even even as we've been going here I I I would say that Ah you know with Covid, it's a little tough to predict timing of some of those awards.
But we're we're continuously very strong demand in the business.
And you know maybe as Covid gets put to rest or the contract start to snap and and we get rid of some of the Lumpiness would break on it.
You should you should see some pretty strong growth patterns in that side of the business.
That's our expectation anyway.
Okay Yeah.
Really is.
Huh.
Consider that.
I mean, they catch up Robyn.
Booked and hit me in the last year so.
Mhm.
Look at what really happened from economics.
If you think about some of those some of the drivers are first off really strong backlog in the in the side of the business.
The addition of Racon, which didn't.
Show up in a great degree in Q3 kind of like with last year's for icon numbers.
But a very strong trendline going forward and then the.
Some time next year, the Legion capacity coming online.
Okay. Thank you and then just like my final question kind of a big Big picture question and can stand you you've touched on international a number of different opportunities that kind of lie ahead for Max I'm wondering if you could kind of walk through the more important ones and in order them significant.
I'm sure that when you get into quantifying then, but if you could kind of rank the top three to five.
Opportunities at this point for Macs are and the potential contribution as you look at it over the next couple of years.
Well I.
I think we've been pretty upfront about that they haven't changed dramatically since what we talked about our investment that on our Investor day back in March.
The on the air controllers inside the Legion capacity will be a be a strong driver of growth and that's why we're not.
Not only working very hard to to get that program launched as soon as we can in 2021, but launched successfully with the high quality will expect over.
Plus of operations for the the first systems launches.
The the enhanced follow on next program.
Seeing very strong demand signals across the the intelligence community as well as the defense community for the type of capabilities that that will provide.
And if you think about the one of the awards I talked about on the the.
The call earlier, the remote ground terminal the tightened tango assistance with the U S. Army that allows us now in a different way to directly impact department of defense missions, and so that along with secure watching global easy there are getting the information in the data much further into the field much more quickly.
<unk>, we expect to be a very strong driver as well on the Earth intelligence side.
A little bit of a slower ramp up here, which which was exactly what we expected, but long term demand signals, including the army Oneworld terrain program and other integration opportunities are very.
Very very promising at this stage and then on the on the space side. The businesses, we've gone through a hard period of restructuring here and getting that on the right footprint.
We really are building, a solid and diversified business, there, which we think will take advantage of long term trends.
Especially on space exploration defense and intelligence missions as the U S. A continues to think about those as strategic opportunities and on the commercial side as well, whether they biggio or Leo or other types of services and space.
Commercialization of space is increasing at a rapid clip and we're building it.
Our business any way to be able to take advantage of those trends.
Just a quick 31 follow on.
Ties into a question asked earlier, but we'll see band and once you kind of works to that part of him get backlog at thank you indicated that you're expecting a tradition in jail comsat to you.
Not anticipating in particular or a change in that market does that mean.
You know what we've seen over the last 12.
12 months two years in terms of Geo Comsat revenue would be a reasonable way to think about coming out the other side of.
Working through the Sudan backlog or.
There you know pen because we're talking about a market now that's you know that's.
A fraction of what it was for many many years.
Is there an opportunity that sort of been normalized comsat market could be a little bit higher than it was entering this will bumps that you're getting from C band.
Oh, Yeah, no I think I think Nader, we saw before the service fee band.
Was that I think it was a nader.
I'll be expecting.
Not like the boom years of several years ago.
But you know sort of a normalized probably mid mid teens mid to upper teams number of awards and we expect to get our fair share of those and those.
Those would be a mix of commercial government.
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Other opportunities that we see.
Okay. That's great. Thank you very much extended thinking thank.
Thank you you too.
Alright, our next question comes from online as well.
Okay and.
I know it takes LLC.
Hi, I just wanted to follow up on this space infrastructure side and specifically on the the defense opportunity I think he said.
Lincoln study contracts and other activity, but have you yet made any it's.
Perhaps you had a recent rewards that happened with DARPA for blackjack or S. T. A for this Ranchero awards.
Hi.
Hey, Chris Yes, we were involved in bidding for those we did we didn't win didn't have a chance to announce anything substantial unfortunately.
A few things sped into that and we're learning a lot as we go along.
We're also I think.
Lot healthier than we were as a company and as as the space team as before.
When we first started on the on the <unk> side of those.
And look forward to as you know those are those are sort of at the trial stage. Yet. So I think there are opportunities for us to come back in their opportunities for us to partner with other times and places and those are I think among.
Couple of the initial awards that would've been in our wheelhouse, but certainly not the only ones were chasing.
And do you have the proper bus size and other technologies for what they're looking for.
Well yeah.
We do in different phases. So the Legion buses is proving to be very.
Very interesting to a number of people and it's too big for some applications that's closer to 750 kilograms not 100.
And it's also very robust architecture.
Obviously with a 1300 the class size, we we've we've got.
An awful lot of opportunities we could do it.
The upper Orbitz with something like that we.
We have been spending some time and attention on slow or.
Slower but smaller.
Plus size architecture, where we think that that would be accretive to our business model.
And we will we will continue to make I think smart investments in that area.
Some of those will be led by commercial customer some will be led by some government opportunities will probably see a mix of spreading some of that NRA across both sets of customers.
So presumably something more than 100 to 200 kilogram plus size I think there's a trend line that that that is of interest the customers both.
You don't need 15 year missions on something of that size, especially lower Corbett and it's also being used in some areas.
For more trial architectures right now before someone went to a more massive type constellation are resilient type of asset so we'll be making some some smart investments there.
Gotcha and just following up on the digital payload I think in the past you talked about adopting a merchant approach to just buying digital payloads in the market depending upon the particular program. It almost sounded like you were equivocating a little bit on that is there a thought that theirs.
Need to build their own your own digital payloads.
No I think what I, what I was trying to get across is that probably something in the middle of those two there there isn't yet and probably won't be for awhile, a true commercial off the shelf digital payloads system.
So we will but there is some really encouraging technology out there some of it which we're adopting for example on the.
I was on a word what I would say is will probably be a mix of some of our own development work, but with a partnering strategy for what is available from from some of the technology leaders there.
I understand.
Earlier today Echostar.
That there Jupiter three was getting pushed out of bed I bet.
Do you feel that that program is properly reserved if it's going to be on the floor for another three to six months.
I'll, let biggs talk about whether it's properly reserved or not but we are we are working very very hard and and close.
Daily and weekly discussions and meetings with the customers to get to get that out.
Out as fast as we can.
But it has suffered from some of the delays and we took some write downs on it and Q1.
Related in part to Covid charges as well.
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Excellent everything.
Great and two questions on the Earth intelligence business.
Last quarter, you had mentioned that a lot of the commercial delay was primarily international are you seeing any improvement in that area.
Yeah, I'd say we are.
Hey, push thanks, probably out one to two quarters from what we were hoping are seeing generally from what our original expectations work, but we're not seeing a lot of further slippage I think what we're seeing is people are learning how to operate in the environment and.
Everything takes a little bit longer, but we aren't seeing.
If you were thinking about the rate of change on and we're not seeing continued delays, it's more steadying out, but it's but it's shifted to the right at that steadier cases, how I think about it.
Actually a follow on for some of your international customers that are gap customers.
Are there going to be any requirements for new ground station hardware to support Legion or would existing customers already be good to go once that comes online.
I said two pieces to an answer to that we continue to invest in our.
<unk> access program ground architecture, and so we've been making investments and will be rolling out upgrades kind of like we do every X number of quarters for those customers. So that all of their ground systems are Legion ready, that's a little bit related to the some of the ground systems cost Biggs talked about next year will also be dealing with much higher data rates and so.
We'll be paying a little bit more to move that much data around the world When Legion comes online.
But but not necessarily new and additional ground infrastructure for the international customers, we will be adding some ground systems on our own though to be able to handle the the increased capacity as well as the the.
The different tour Battology that link Legion will bring online.
I understand and final question secure watches has been a really successful.
Product a platform for Ya.
Watch also.
Is there a thought that you should build out other platforms that are you know.
Application or or customer specific say.
For the energy market or or some other application or does that step too close to competing with some of your customers.
Yeah, I think the way we see it going forward and is that we're gonna try as much platform convergence as we can and then operate more than an app fashion. If there are certain things about the platform that.
Sites, you may be from an energy versus a defense and intelligence versus a.
Human.
Emergency response and disaster relief type application.
And so secure watches closely aligned with the investments, we're making global ATT.
The architecture architecture type software investments are are more close to Atlanta that we don't create lots of threads of different.
Code base out there.
In terms of something like agriculture, or energy, where we haven't had as much.
And customer.
Proximity we do work that more through our resellers in our channel.
We say is providing the.
Not the very last mile of everything that the customer might need or not the full customer intimacy there.
But the platform like secure watch that.
Partner channel can can it'd take that more more fully into the use cases required by the customers.
We know where we're really good in defense intelligence is our is our real sweet spot. We've got a few other ones that are closely aligned and derivative that like emergency response, but we cancer everybody's application.
At this point and would definitely rely on our partner channel for that.
Right, but by the way is that.
First Legion launch or you're going out of anderberg or are you going to do that advocate.
We expect to go out of Vandenberg for this one although with the first two there's plenty of of horsepower on a Legion are on a falcon nine but if we had to go out of Cape We could do it there as well.
The dogleg.
Yeah.
But we do expect the export are good to go out of the cake.
Perfect. Thank you.
Sure.
The operator at the top of the hour I think we've got time for one more question.
Okay Uhm, our last question comes from the lineup after Mulder from kind of court.
Kindergarten sorry.
Hi, there, there's lots and on for Ken.
Hey, Austin.
Hi, so since one questions on me. So you guys are currently bending metal on the power and propulsion element or the gateway, which was a 375 million dollar contract.
Just thinking about moving pieces here with the election and the potential changes administration right now we've got a NASA administrator.
Quite entrepreneurial for the human landing system in his selection of multiple landers just looking at.
They send it appears to be staying the same and so the leadership on the Senate Appropriations Committee, it's gonna stay the same.
But change the couch pillows for you on whether or not.
There will be multiple landers.
By NASA or whether that might be down selected one lander or do you think that.
That just given the number of ordering information that NASA has already committed to with the number of that's a lot to take committed to buy.
That there will still be.
Possibly multiple landers needed over the next 10 years.
Yeah. That's a great question I wish I had a great answer for Ya I think we're we're we're.
We we definitely.
Well just even in our capture strategy thought about the fact that elections are coming up and then oftentimes in elections.
There's sometimes shifts and priorities differ.
Different the administrator level or the congressional or presidential level I think it's too early to tell right now on what the impact.
Will or won't be there.
I do think we're we've been investing in or making some great strides in some really.
Forward, moving technologies, and whether those become lunar lander emissions or marshland emissions or other things I think those kind of things that that NASA is very interested in seeing development up. So at this point I think it's too early predict.
But.
We're we're very encouraged by some of the things and asked losses have been doing in our ability to work with them and some of the priorities that have been setting down and we'll just have to.
Closer to work with a customer to see what we can best support what their priorities are going forward.
Okay. Thank you guys.
Sure.
Alright, great or anything.
Yeah, perfect I was going to say thank you for everyone that joined us for the call. This court.
Certainly I look forward to catching up with May have you between now and the end of the quarter the end of the year.
And catching up with all of you again fourthquarter call in the late February next year.
Thanks, and have a great night everybody.
But it is a gentleman that this concludes today's conference call. Thank you for participating get you may not disconnect.
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