Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Q4 2022 Earnings Conference Call February 23, 2023 5:00 PM ET Company Participants Marie Mendoza - Senior Vice President and General Counsel Eric DeMarco - President and Chief Executive Officer Deanna Lund - Executive Vice President and Chief Financial Officer Conference Call Participants Mike Crawford - B. Riley Ken Herbert - RBC Capital Markets Seth Seifman - J.P. Morgan Noah Poponak - Goldman Sachs Greg Konrad - Jefferies Joe Gomes - Noble Capital A ...

Unmanned Systems (UAS) and Contracts - The company's unmanned aerial systems (UAS) include the XQ-58A Valkyrie, which has completed multiple successful test flights and received significant contracts, including a $400 million IDIQ contract for the Air Force's Skyborg program[36] - Kratos was awarded a $37.7 million contract for the Skyborg Delivery Order 2 to integrate, test, and deliver XQ-58A Valkyrie aircraft[36] - The company received a $17.8 million award from AFRL for Low Cost Attritable Aircraft Technology (LCAAT) efforts related to the XQ-58A Valkyrie[36] - Kratos' Valkyrie UAS completed a successful demonstration flight enabling F-22 and F-35 fighters to fly in formation together[36] - The company was awarded a $15.5 million contract by the U.S. Navy/Marine Corps for two XQ-58A Valkyrie drones to explore future autonomous collaborative platforms[37] - Kratos produced its first MQM-178 Firejet target drones in 2019 and completed a 100% successful flight of its Air Wolf tactical drone system in 2021[37] - The company was awarded a $14 million tactical jet drone system contract and a $20 million aerial drone system production contract in August 2022[37] - Kratos delivered the first production aerial targets to the U.S. Navy in 2018 and achieved Initial Operational Capability (IOC) in February 2019[37] - Kratos is producing 12 Valkyrie drone systems, with some delivered and others in production under customer-funded contracts or Kratos-funded pre-production[38] - Kratos has been awarded contracts to manufacture and deliver 312 BQM-177A SSATs, with 196 already produced for the U.S. Navy[39] - Kratos received a $338 million single award for production Lots 17–21 of BQM-167A targets, with 535 produced to date for the U.S. Air Force[39] - Kratos was awarded a $49.5 million contract in January 2023 for the production and delivery of 55 BQM-177A surface-launched aerial targets[48] - Kratos has four drones flying today in the disposable, reusable, and attritable class: Tactical Firejet, Mako, Gremlins, and Valkyrie[40] - Awarded a $12.6 million prime contract from DIUx for UTAP-22 Mako UAS in 2016[59] - Received a $40.8 million contract from AFRL for LCASD, retaining intellectual property and platform rights[59] - Awarded a five-year IDIQ contract valued at up to $400 million for the Air Force's Skyborg program in July 2020[59] Financial Performance and Backlog - Kratos' total backlog as of December 25, 2022, was approximately $1,112.4 million, with $721.4 million funded[49] - Fixed-price contracts represent approximately 71% of Kratos' 2022 revenue, while cost-plus-fee and time-and-materials contracts account for 24% and 5%, respectively[47] - Backlog as of December 25, 2022, was approximately $1,112.4 million, with 56.0% expected to be recognized as revenue in 2023[65] - The company's cash and cash equivalents as of December 25, 2022, were $81.3 million, primarily invested in money market interest-bearing accounts[341] - A 10% appreciation or depreciation of the USD would not be expected to have a material effect on the company's financial position, results of operations, and cash flows in the near-term[340] - The company is exposed to market risk related to interest rates and foreign currency exchange rates, with a 1% change in SOFR not materially impacting financial position[338] Research and Development (R&D) - Kratos is working on two internally funded hypersonic initiatives, Zeus and Erinyes, which could disrupt their respective markets[42] - Research and development expenses were $38.6 million in 2022, $35.2 million in 2021, and $27.0 million in 2020[82] - The company's primary internal R&D focus areas include satellite communications, unmanned systems, electronic products, turbine technologies, and hypersonic systems[82] - Invested over $200 million in UAS business since 2012 and approximately $139 million in Space, Satellite, and Cyber business since 2019[58] - Invested approximately $139 million in Space, Satellite, and Cyber business through internally funded R&D since 2019[64] Customer Base and Government Contracts - Kratos has a diverse customer base, with no single contract representing more than 6% of 2022 revenue[47] - U.S. Government revenue accounted for 69%, 70%, and 73% of total revenue in 2022, 2021, and 2020 respectively[63] - The U.S. Government's emphasis on affordability and low cost in procurement has led to fewer sole source awards and more focus on cost competitiveness, impacting the company's DRSS and training services businesses[81] - The company is subject to various U.S. Government regulations, including the Federal Acquisition Regulations, Truthful Cost or Pricing Data Statute, and Cost Accounting Standards[86] Technology and Intellectual Property - Kratos' proprietary OpenSpace™ products and technology provide a competitive advantage in addressing DoD, National Security, and commercial market areas[29] - Kratos' OpenSpace™ Platform was selected by Intelsat to unify operations of its ground and space systems[48] - The company held a number of U.S. and foreign patents as of December 25, 2022, with patents extending for varying periods based on filing or grant dates[84] Workforce and Cybersecurity - Workforce of approximately 3,600 full-time, part-time, and on-call employees as of December 25, 2022[74] - Cybersecurity program includes industry-standard frameworks and regular reporting to the Board of Directors[72] Environmental and Regulatory Compliance - The company's manufacturing operations are subject to environmental laws and regulations, with potential for significant civil and criminal penalties for violations[94] Competition - The company faces competition from tier one U.S. Government contractors such as Northrop Grumman, Lockheed Martin, and Boeing, as well as tier two contractors like Mercury Systems and CACI[78]

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Marie Mendoza - Senior Vice President and General Counsel Eric DeMarco - President and Chief Executive Officer Deanna Lund - Executive Vice President and Chief Financial Officer Conference Call Participants Mike Crawford - B. Riley Joe Gomes - Noble Capital Pete Skibitski - Alembic Global Austin Moeller - Canaccord Genuity Operator Thank you for standing by. Welcome to th ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 25, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 001-34460 KRATOS DEFENSE & SECURITY SOLUTIONS, INC. (Exact name of registrant as specified in its c ...

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Q2 2022 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Marie Mendoza – Vice President and General Counsel Eric DeMarco – President and Chief Executive Officer Deanna Lund – Executive Vice President and Chief Financial Officer Conference Call Participants Michael Ciarmoli – Truist Securities Mike Crawford – B. Riley Securities Ken Herbert – RBC Capital Markets Josh Sullivan – The Benchmark Company Austin Moeller – Canaccord Genu ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 26, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 001-34460 KRATOS DEFENSE & SECURITY SOLUTIONS, INC. (Exact name of registrant as specified in its charte ...

Kratos Defense and Security Solutions, Inc. (NASDAQ:KTOS) Q1 2022 Earnings Conference Call May 5, 2022 10:00 AM ET Company Participants Marie Mendoza - Senior Vice President & General Counsel Eric DeMarco - President & Chief Executive Officer Deanna Lund - Executive Vice President & Chief Financial Officer Conference Call Participants Mike Crawford - B. Riley Securities FBR Ken Herbert - RBC Capital Markets Austin Moeller - Canaccord Genuity Peter Arment - Baird Joe Gomes - NOBLE Capital Markets Pete Skibit ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 27, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 001-34460 KRATOS DEFENSE & SECURITY SOLUTIONS, INC. (Exact name of registrant as specified in its chart ...

Kratos Defense and Security Solutions, Inc. (NASDAQ:KTOS) Q4 2021 Earnings Conference Call February 22, 2022 5:00 PM ET Company Participants Marie Mendoza - SVP and General Counsel Eric DeMarco - President and CEO Deanna Lund - EVP and CFO Conference Call Participants Mike Crawford - B. Riley Securities FBR Christopher Rieger - Berenberg Capital Markets Peter Arment - Baird Ken Herbert - RBC Capital Markets Austin Moeller - Canaccord Genuity Joe Gomes - NOBLE Capital Markets Pete Skibitski - Alembic Global ...

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 26, 2021 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 Commission file number 001-34460 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ☐ KRATOS DEFENSE & SECURITY SOLUTIONS, INC. (Exact name of Registrant as specified in its charter) Delaware 13-3818604 (State or other jurisdiction of incorporati ...