Telos Corporation (NASDAQ:TLS) Q4 2021 Earnings Conference Call March 16, 2022 8:00 AM ET Company Participants Christina Mouzavires – Investor Relations John Wood – Chairman and Chief Executive Officer Mark Bendza – Chief Financial Officer Mark Griffin – Executive Vice President of Security Solutions Conference Call Participants Zach Cummins – B. Riley Securities Brad Clark – BMO Rudy Kessinger – D.A. Davidson Alex Henderson – Needham and Company Nehal Chokshi – Northland Capital Markets Andrew King – Colli ...

3Q 2021 Earnings Release Solutions that empower and protect the enterprise.TM November 15, 2021 2 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 Corporation (the "Company") will only make suc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________ FORM 10-Q (Address of principal executive offices) (Zip Code) (703) 724-3800 ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: September 30, 2021 ☐ 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 ...

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 30, 2021 ☐ 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) (State or other jurisdiction of incorporation or organization) ...

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 31, 2021 ◻ 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) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification ...

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, 2020 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) Maryland 52-0880974 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Iden ...

Financial Performance - Revenue increased by 4.2% to $47.4 million for Q3 2020, compared to $45.5 million in Q3 2019[169]. - Services revenue rose to $44.2 million in Q3 2020, driven by increases from Telos ID ($2.5 million), Assurance/Xacta ($2.1 million), and Secure Communications ($1.7 million) while Secure Networks decreased by $1.3 million[169]. - Revenue for the nine months ended September 30, 2020, increased by 19.8% to $135.0 million from $112.7 million in the same period in 2019[177]. - Gross profit for Q3 2020 was $16.6 million, a 1.5% increase from $16.3 million in Q3 2019, with gross margin decreasing to 34.9%[171]. - Gross profit for the nine months ended September 30, 2020, increased by 31.4% to $46.4 million, with gross margin rising to 34.3%[179]. - Net loss attributable to Telos Corporation was $0.2 million for Q3 2020, compared to a net income of $2.2 million in Q3 2019[176]. Backlog and Demand - Total backlog as of September 30, 2020, was approximately $374.6 million, an increase from $307.5 million in 2019, and $354.5 million at December 31, 2019[154]. - Funded backlog as of September 30, 2020, was $147.0 million, up from $104.0 million in 2019, and $112.4 million at December 31, 2019[155]. - The company anticipates ongoing demand for its cybersecurity and cloud security solutions due to the increased reliance on information technology systems during the COVID-19 pandemic[165]. - The current health and economic crisis is expected to continue affecting federal departments and agencies, impacting the company's contracts and procurements[165]. Operating Expenses - Cost of sales increased to $30.9 million in Q3 2020, with a cost of sales as a percentage of revenue rising by 0.9%[170]. - SG&A expenses increased by 13.3% to $12.0 million in Q3 2020, primarily due to labor costs and outside services[172]. - Operating income decreased by 20.5% to $4.5 million in Q3 2020, attributed to higher SG&A expenses[174]. Capital Structure and Debt - The company has a complex capital structure consisting of redeemable preferred stock and common stock, impacting liquidity[192]. - The Credit Agreement includes an $11 million senior term loan with a maturity date of January 25, 2022, accruing interest at 13.0% per annum[193]. - Interest rates can increase to 14.5% per annum under certain conditions, with a monthly cash interest payment obligation of at least 10.0% per annum[194]. - The total principal amount of the loan increased to $16 million following a Fourth Amendment to the Credit Agreement[201]. - The exit fee was raised from $825,000 to $1,200,000, treated as an unamortized discount on the debt[201]. - The company incurred interest expenses of $0.8 million and $2.3 million for the three and nine months ended September 30, 2020, respectively[205]. Preferred Stock and Dividends - The total number of Public Preferred Stock shares issued and outstanding as of September 30, 2020, was 3,185,586[213]. - Cash dividends accrued on the Public Preferred Stock were $110.2 million and $107.4 million as of September 30, 2020, and December 31, 2019, respectively[220]. - Dividends accrued for the three and nine months ended September 30, 2020, were $1.0 million and $2.9 million, respectively[220]. - The Public Preferred Stock accrues a semi-annual dividend at an annual rate of 12% ($1.20) per share, based on a liquidation preference of $10 per share[220]. - The company has not declared or paid dividends on the Public Preferred Stock since 1991 due to various restrictions[215]. - The Public Preferred Stock is classified as a noncurrent liability as it is not due on demand or callable within 12 months from September 30, 2020[217]. - The company is prohibited from making any distributions or declaring dividends under the Credit Agreement until full payment of obligations[216]. Strategic Focus - The company has transitioned from product reselling to advanced solutions technologies, focusing on selling solutions and outsourcing product sales[159]. - The company is actively pursuing growth opportunities through GSA schedules and omnibus contracts, which provide a more flexible procurement cycle[156]. - The company’s offerings include Xacta for cyber risk management, Telos Ghost for secure communications, and Telos ID for digital identity services[152]. - The company maintains government certifications that distinguish its identity services, including TSA PreCheck™ enrollment provider and FINRA Electronic Fingerprint Submission provider[152]. Government Spending - The U.S. Government's defense spending is projected to increase by less than one percent in FY 2021 compared to FY 2020[161]. - Federal outlays for defense programs have decreased from 4.5% to 3.2% of GDP since the Budget Control Act of 2011[162].

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 30, 2020 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 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 organization) (I.R.S. Emplo ...

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 31, 2020 ☐ 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) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification ...

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, 2019 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) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 198 ...