The Space Investor - 🚀 Lockheed To Acquire Terran Orbital

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• $LLAP
  • Cash & Equivalents: $31M, -57%
  • Revenue: $31M, -6% YoY
  • Net Loss: $(35)M vs. $(28)M
  • Adj. EBITDA: $(17)M vs. $(21)M
  • Backlog: $313M, -88%
  • Shares: -8.5%
     
• $LUNR
  • Cash & Equivalents: $32M
  • Revenue: $41M, +130% YoY
  • Adj. EBITDA: $(26)M vs. $(12)M
  • Contracted Backlog: $213M
  • $5M Debt Paydown in Q2
  • Shares: -1.3%
     
• $TSAT
  • Cash & Equivalents: $1.4B
  • Revenue: $152M, -15% YoY
  • Net Income: $129M, -75% YoY
  • Adj. EBITDA: $103M, -25% YoY
  • Backlog: $1.1B
  • Shares: +7.2%
     
• $ASTS
  • Cash & Equivalents: $288M
  • Revenue: $900k vs. $0 YoY
  • OpEx:  $64M, +10% YoY
  • Gross Capitalized Costs: $348M
  • Net Loss: $(73)M vs. $(18)M
  • Shares: +50.7%
     
• $SPIR (Postponed)
  • Reasoning: "The Company is in the process of reviewing its accounting practices and procedures with respect to revenue recognition related to certain contracts in its 'Space as a Service' business."
  • Shares fell -33.6% on Thursday following the news.

• On Wednesday, Redwire announced the acquisition of the high-end spacecraft developer. The deal is focused on expanding Redwire's national security business and is now the tenth acquisition for the private equity backed SPAC.
   
• Redwire will finance the acquisition with "balance sheet liquidity" and expects Hera to meaningfully add to future growth and profitability.
   
• Due to the acquisition, Redwire is revising its FY 2024 revenue guidance up from $300M to $310M. The transaction is expected to close in Q3.
   
• Shares finished +10.5% the next day.

• After turning down a ~$600M valuation bid at $1.00 per share in March, Terran accepted an offer at a 25% discount on Thursday as things have quickly gone sour for the SPAC.
   
• Earlier this week, LLAP posted its Q2 earnings without a press release and/or management call. The main takeaways were: 1) downsized backlog from $2.7B to $312.7M (aka throwing in the towel on Rivada hope) and 2) cash dwindling to $14.6M as of 7/31.
   
• Lockheed currently represents ~71% of Terran's revenue through H1 2024 so this partnership-turned-acquisition makes sense. Lockheed will retire existing debt and the transaction is expected to close in Q4.
   
• Lockheed Martin Ventures made its first investment in Terran in 2017, with two additional follow-on investments in 2020 and 2022.
   
• Terran shares shares fell -39.4% on the news, down -65.9% for the week (through Thursday 8/15).

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