Space-Investor @Space-Investor: "$LLAP Q2 2024 Earnings Rivada Removed..."

Australia

Edited

$LLAP (Terran Orbital Corp) Q2 2024 Earnings Rivada Removed From Backlog – Going Concern Warning Disclosure: I am invested in the following companies referenced below – LLAP (Terran Orbital), LMT (Lockheed Martin) Terran Orbital has filed their Q2 results with the SEC but without publishing an accompanying press release or holding an earnings call – straight away you know the numbers are bad when that happens. Here are the main numbers compared to the same quarter last year ($ in millions): - Revenue: $30.4 (-5.7%) - Gross Profit: $2.8 +251.9% - Net Loss: $(35.4) (-25.8%) At the end of the quarter (June 30) Cash and equivalents stood at $30.6m down from $71.7m the previous quarter. As of July 31 that had fallen to $14.6m which was accompanied by the dreaded ‘going concern’ warning that they will not be able to meet their obligations within the next 12 months unless they raise additional capital. Two and a half weeks ago I opened a small speculative position in $LLAP using ~0.63% of the portfolio’s total equity. At the time I said it was essentially a bet that Rivada would come good with the $2.4 billion contract, unfortunately that hasn’t worked out and Rivada has been removed from Terran Orbital’s backlog in their SEC 10-Q filing. I also pointed out that $LMT (Lockheed Martin Corporation) (which accounted for 69% revenue during Q2), is reliant on Terran Orbital to complete some of their contracts with the DoD’s Space Development Agency, so there remains the possibility Lockheed may make another offer to buy Terran Orbital at a lower price than their previous offer of $1.00 per share. If they do make an offer then I’m hoping it will be at least $0.50 – it was $0.694 when I added it to the portfolio. I won’t be surprised to see the stock price to gap down when the market opens, so rather than set a stop-loss I’m going to wait and see how the market prices the information, we may get a better closing price later on due to speculation on the possibility of another offer from Lockheed or that the company might actually raise additional capital (I’m not confident of that second option). For more information you can read the SEC filing at www.sec.gov/ix?doc=/Archives/edgar/data/1835512/000095017024095049/llap-20240630.htm

3 Mentioned

LLAP

Terran Orbital Corp

LLAP

Terran Orbital Corp

LMT

Lockheed Martin Corporation