Telos Corporation Announces Substantial Progress on New Business Capture; Reports Fourth Quarter and Full Year 2023 Results Above Expectations Ashburn, Virginia, March 15, 2024 – Telos Corporation (NASDAQ: TLS), a leading provider of cyber, cloud and enterprise security solutions for the world's most security-conscious organizations, today announced financial results for the fourth quarter 2023. "I am pleased to announce that Telos' prime partners have received awards on new programs that are worth up to $5 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: September 30, 2023 ¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number: 001-08443 TELOS CORPORATION (Exact name of registrant as specified in its charter) Maryland 52-0880974 (State or other jurisdiction of incorporation or orga ...

Telos Corp. (NASDAQ:TLS) Q3 2023 Results Conference Call November 9, 2023 8:30 AM ET Company Participants Allison Phillipp - Director-Corporate Communications John Wood - Chairman, CEO Mark Bendza - EVP, CFO Mark Griffin - EVP, Security Solutions Conference Call Participants Zach Cummins - B. Riley Securities Rudy Kessinger - D.A. Davidson Alex Henderson - Needham Nehal Chokshi - Northland Capital Markets Operator Good day, thank you for standing by. Welcome to Telos Corporation Third Quarter 2023 Earnings ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 FORM 10-Q Commission file number: 001-08443 x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: June 30, 2023 (703) 724-3800 (Registrant's telephone number, including area code) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Ide ...

| --- | --- | --- | --- | |------------------------------|-------|-------|-------| | | | | | | | | | | | Second Quarter 2023 Earnings | | | | DISCLAIMERS The information contained in this presentation does not constitute or form part of, and should not be construed as, any offer, sale or subscription of, or any invitation to offer, buy or subscribe for, any securities, nor shall there be any offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. Telos Co ...

Telos Corporation (NASDAQ:TLS) Q2 2023 Earnings Conference Call August 9, 2023 8:30 AM ET Company Participants Allison Phillipp - Public Relations and Engagement Manager John Wood - Chairman and CEO Mark Bendza - Executive Vice President and CFO Mark Griffin - Executive Vice President, Security Solutions Conference Call Participants Zach Cummins - B. Riley Securities Rudy Kessinger - D.A. Davidson & Co. Alex Henderson - Needham Brad Clark - BMO Capital Markets Operator Good day and thank you for standing by ...

Financial Performance - Consolidated revenue for the first quarter of 2023 was $35.222 million, a decrease of 29.8% compared to $50.160 million in the same period of 2022[106]. - Gross profit for the first quarter of 2023 was $13.482 million, down 28.5% from $18.871 million in the first quarter of 2022, with a gross margin of 38.3% compared to 37.6%[106]. - The company reported a net loss of $10.746 million for the first quarter of 2023, an improvement from a net loss of $16.616 million in the same period of 2022[106]. - For the three months ended March 31, 2023, the net loss was $10,746 thousand, representing a margin of (30.5%), compared to a net loss of $16,616 thousand and a margin of (33.1%) for the same period in 2022[119]. - Adjusted EBITDA for the three months ended March 31, 2023, was $(846) thousand, with an adjusted EBITDA margin of (2.4%), compared to $969 thousand and a margin of 1.9% for the same period in 2022[121]. - The company reported free cash flow of $(4,123) thousand for the three months ended March 31, 2023, compared to $(3,092) thousand for the same period in 2022[124]. Revenue Segments - The Security Solutions segment revenue decreased by $7.1 million, or 26.5%, to $19.773 million in the first quarter of 2023, primarily due to the loss of a program[112]. - The Secure Networks segment revenue decreased by $7.8 million, or 33.5%, to $15.449 million in the first quarter of 2023, attributed to the wind-down of large programs[114]. Expenses and Cost Management - Selling, general, and administrative expenses decreased by $8.8 million, or 24.9%, in the first quarter of 2023 compared to the same period in 2022[108]. - The stock-based compensation expense for the three months ended March 31, 2023, was $9,499 thousand, compared to $15,931 thousand for the same period in 2022[122]. Cash Flow and Liquidity - As of March 31, 2023, the company had cash and cash equivalents of $112.5 million and working capital of $116.5 million[127]. - Net cash used in operating activities for the three months ended March 31, 2023, was $(100) thousand, a decrease of $350 thousand compared to the same period in 2022[129]. - Net cash used in investing activities increased by $1.2 million to $(4,587) thousand for the three months ended March 31, 2023, primarily due to software development costs of $3.8 million[130]. - Net cash used in financing activities decreased by $1.1 million to $(2,156) thousand for the three months ended March 31, 2023, mainly due to a reduction in tax withholding payments related to equity awards[131]. - The company emphasizes liquidity management, with a focus on maintaining a strong balance sheet to support future opportunities[128]. - The company has access to a $30.0 million revolving credit facility, with an available expansion feature of up to an additional $30.0 million[126]. Strategic Focus - The fiscal year 2023 is a transition year for the company, focusing on streamlining operations and generating new business wins[94]. - The company plans to reorganize internally, add new talent, maximize strategic partnerships, and increase the quality of contract vehicles for market expansion[97]. - The U.S. federal budget for FY2023 included a $44 billion increase in total defense spending, with a significant focus on cybersecurity funding[94]. Backlog - The backlog consists of aggregate contract revenues remaining to be earned, with funded backlog expected to be earned within one year[103].

Telos Corporation (NASDAQ:TLS) Q1 2023 Earnings Conference Call May 10, 2023 8:30 AM ET Company Participants Allison Phillips - IR John Wood - Chairman, President & CEO Mark Bendza - EVP & CFO Mark Griffin - EVP of Security Solutions Conference Call Participants Zachary Cummins - B. Riley Securities Bradley Clark - BMO Capital Markets Rudy Kessinger - D.A. Davidson & Co. Operator Good day, and thank you for standing by. Welcome to the Telos Corporation Q1 2033 Earnings Call. [Operator Instructions]. I would ...

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $47.3 million, a decline of 26% year-over-year, and total revenue for the year was $216.9 million [5][9] - GAAP gross margin expanded by 95 basis points to 38.6% in the fourth quarter and by 96 basis points to 36.4% for the year [6] - Adjusted EBITDA for the fourth quarter was $5.4 million with an 11.4% margin, while for the year it was $19.5 million with a 9% margin [6][12] - Adjusted EPS was $0.05 for the fourth quarter and $0.19 for the year [6] Business Line Data and Key Metrics Changes - Revenue from the security solutions business declined 11% to $30.3 million, primarily due to the ramp down of the U.S. census program and a more than 50% reduction in revenue from the second largest program [9][10] - Revenue from secure networks fell 43% to $17.1 million, driven by the wind down of three large programs [11] Market Data and Key Metrics Changes - The three largest programs in security solutions generated approximately $70 million in revenues in both 2021 and 2022, but are expected to experience revenue declines of approximately 50% to 100% in 2023 [10] - The three largest programs in secure networks generated $69 million in 2021 and $44 million in 2022, with expectations of single-digit revenues in 2023 [11] Company Strategy and Development Direction - The company is focused on rebuilding and growing its revenue base, with immediate priorities including streamlining operations and enhancing business development [7][22] - New senior leaders have been appointed to drive technology solutions and corporate growth [7][8] - The company aims to maximize existing strategic partnerships and increase market awareness of its solutions [23] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with the execution of the long-term growth strategy since the IPO and acknowledged expected revenue contraction in 2023 [5] - The company anticipates 2023 to be a transition year, with significant revenue headwinds from large programs coming to completion [5][17] - Management remains confident in future business development opportunities, citing past performance and strong customer relationships [29] Other Important Information - Free cash flow increased from a $5.9 million net outflow in 2021 to an $11.2 million net inflow in 2022, with cash on the balance sheet exceeding $119 million [13][14] - The company has closed on a $30 million senior secured revolving credit facility, which remains undrawn [14] Q&A Session Summary Question: Insights on new business wins and confidence in growth - The company has won approximately $9 million of new business, but only $1 million to $2 million will be recognized as revenue in 2023 due to timing [27] - Confidence in business development is based on past performance, alignment with government-oriented opportunities, and strong customer knowledge [29] Question: Update on TSA PreCheck launch - The soft launch is ongoing, with final details being worked out to ensure a smooth customer experience, with a national launch expected in 2023 [32] Question: Update on CMS contract - There is currently no update on the CMS contract, and the company is awaiting future order releases [35] Question: Headcount and expense management strategy - Employee reductions were primarily related to billable roles associated with programs experiencing lower operational volume, impacting both billable and non-billable roles [38]

Table of Contents or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-08443 TELOS CORPORATION (Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 | Maryland | 52-0880974 | | --- | --- | | (State or other jurisdiction of incorporati ...