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Revenue Projection2021A2022A2023A2024A2025A2026E2027E2028E2029E2030EDiscounted Cash Flow2021A2022A2023A2024A2025A2026E2027E2028E2029E2030E
DCF Assumption
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(Millions except per share and aircraft data)
(Millions except per share and aircraft data)
(Millions, except per share data)
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Revenue $ 477 $ 641 $ 808 $ 1,080 $ 1,633 $ 1,890 $ 2,195 $ 2,554 $ 2,885 $ 3,317 Revenue $ 477 $ 641 $ 808 $ 1,080 $ 1,633 $ 1,890 $ 2,195 $ 2,554 $ 2,885 $ 3,317
Capital Structure
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YoY Growth34.5%26.0%33.7%51.2%15.7%16.1%16.4%13.0%15.0%YoY Growth34.5%26.0%33.7%51.2%15.7%16.1%16.4%13.0%15.0%
Market Capitalization
$ 6,512
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Geointelligence $ 191 $ 195 $ 198 $ 202 $ 214 $ 219 $ 223 $ 228 $ 232 $ 237 Cost of Goods Sold (COGS) $ 309 $ 413 $ 564 $ 798 $ 1,224 $ 1,449 $ 1,681 $ 1,951 $ 2,230 $ 2,586
Share Price
$47.28
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YoY Growth2.4%1.1%2.3%6.1%2.0%2.0%2.0%2.0%2.0%Gross Margin35.2%35.6%30.2%26.1%25.1%23.3%23.4%23.6%22.7%22.0%
Diluted Share Outstanding
137.74
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Robotics & Space Operations $ 133 $ 194 $ 248 $ 280 $ 309 $ 340 $ 374 $ 449 $ 494 $ 543 Operating Income (EBIT) $ 19 $ 75 $ 77 $ 107 $ 158 $ 138 $ 173 $ 194 $ 193 $ 200
Equity Ratio
95.99%
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YoY Growth45.7%28.2%12.6%10.5%10.0%10.0%20.0%10.0%10.0%Operating Margin3.9%11.6%9.6%9.9%9.7%7.3%7.9%7.6%6.7%6.0%Debt $ 272
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Satellite Systems $ 153 $ 252 $ 362 $ 598 $ 1,110 $ 1,331 $ 1,598 $ 1,877 $ 2,159 $ 2,537 Depreciation and Amortization (+) $ 24 $ 24 $ 32 $ 44 $ 55 $ 88 $ 123 $ 163 $ 211 $ 265 Debt Ratio4.01%
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YoY Growth64.5%43.4%65.4%85.5%20.0%20.0%17.5%15.0%17.5%% of Revenue4.9%3.7%3.9%4.1%3.4%4.7%5.6%6.4%7.3%8.0%
Total Capital
$6,784
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Gross Profit $ 168 $ 228 $ 244 $ 282 $ 410 $ 441 $ 514 $ 603 $ 655 $ 730 Capital Expenditures (-) $ 53 $ 138 $ 148 $ 141 $ 175 $ 282 $ 328 $ 381 $ 431 $ 495
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Gross Margin35.2%35.6%30.2%26.1%25.1%23.3%23.4%23.6%22.7%22.0%% of Revenue11.0%21.5%18.3%13.1%10.7%14.9%14.9%14.9%14.9%14.9%
Enterprise Value
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Materials, Labour, and Subcontractor Cost
$ (286) $ (389) $ (532) $ (755) $ (1,169) $ (1,361) $ (1,558) $ (1,788) $ (2,019) $ (2,322)Net Change in Working Capital (-) $ 14 $ 21 $ (701) $ (214) $ 155 $ (119) $ (139) $ (139) $ (178)
Market Capitalization
$ 6,512
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% of Revenue(59.9%)(60.7%)(65.9%)(69.9%)(71.6%)(72.0%)(71.0%)(70.0%)(70.0%)(70.0%)% of Revenue2.2%2.6%(64.9%)(13.1%)8.2%(5.4%)(5.4%)(4.8%)(5.4%)Cash $ 152
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Depreciation and Amortization $ (24) $ (24) $ (32) $ (44) $ (55) $ (88) $ (123) $ (163) $ (211) $ (265)Taxes (-) $ 8 $ 8 $ 19 $ 32 $ 44 $ 35 $ 44 $ 49 $ 49 $ 50 Debt $ 272
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% of Revenue(4.9%)(3.7%)(3.9%)(4.1%)(3.4%)(4.7%)(5.6%)(6.4%)(7.3%)(8.0%)Effective Tax Rate74.3%23.1%27.5%28.4%28.8%26.5%26.5%26.5%26.5%26.5%
Enterprise Value
$ 6,632
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Operating Income (EBIT) $ 19 $ 75 $ 77 $ 107 $ 158 $ 138 $ 173 $ 194 $ 193 $ 200 Free Cash Flow $ (19) $ (62) $ (78) $ 679 $ 207 $ (246) $ 44 $ 67 $ 63 $ 97
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Operating Margin3.9%11.6%9.6%9.9%9.7%7.3%7.9%7.6%6.7%6.0%
Cost of Equity
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Selling, General & Administration $ (58) $ (60) $ (71) $ (79) $ (112) $ (113) $ (110) $ (128) $ (144) $ (166)Stub Period1.000
Risk Free Rate
3.48%
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% of Revenue(12.2%)(9.4%)(8.8%)(7.3%)(6.8%)(6.0%)(5.0%)(5.0%)(5.0%)(5.0%)Normal Discount Period1.0002.0003.0004.0005.000
Expected Market Return
9.30%
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Research and Development $ (21) $ (33) $ (39) $ (37) $ (38) $ (57) $ (77) $ (102) $ (115) $ (133)Mid-Year Discount Period0.5001.5002.5003.5004.500
Market Risk Premium
5.82%
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% of Revenue(4.4%)(5.1%)(4.9%)(3.4%)(2.3%)(3.0%)(3.5%)(4.0%)(4.0%)(4.0%)
Effective Tax Rate
26.5%
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Amortization of Intangible Assets $ (56) $ (53) $ (47) $ (47) $ (85) $ (113) $ (132) $ (153) $ (173) $ (199)Present Value @ 7.9% WACC $ (237) $ 39 $ 55 $ 49 $ 69
Unlevered Beta
0.78
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% of Revenue(11.8%)(8.2%)(5.8%)(4.4%)(5.2%)(6.0%)(6.0%)(6.0%)(6.0%)(6.0%)PV of Forecast Period $ (25)
Levered Beta
0.80
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Stock-Based Compensation $ (14) $ (9) $ (10) $ (12) $ (18) $ (20) $ (22) $ (26) $ (29) $ (33)
Cost of Equity
8.16%
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% of Revenue(2.8%)(1.3%)(1.2%)(1.1%)(1.1%)(1.1%)(1.0%)(1.0%)(1.0%)(1.0%)PPE Schedule2021A2022A2023A2024A2025A2026E2027E2028E2029E2030E
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Pre-Tax Income (EBT) $ 11 $ 34 $ 67 $ 111 $ 152 $ 131 $ 165 $ 184 $ 183 $ 190 (Millions)
Post-Tax Cost of Debt
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Pre-Tax Margin2.4%5.3%8.3%10.3%9.3%6.9%7.5%7.2%6.4%5.7%Gross PPE Beginning $ 75 $ 124 $ 259 $ 406 $ 553 $ 734 $ 1,024 $ 1,362 $ 1,757 $ 2,205
Cost of Debt
1.99%
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Other Income and Interest $ (7) $ (40) $ (10) $ 5 $ (5) $ (6.9) $ (8.7) $ (9.7) $ (9.7) $ (10.0)Accumulated Depreciation $ 5 $ 14 $ 23 $ 37 $ 56 $ 85 $ 92 $ 102 $ 116 $ 134
Effective Tax Rate
26.5%
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YoY Growth(39.2%)(54.2%)(13.2%)4.2%(3.4%)(5.0%)(5.0%)(5.0%)(5.0%)(5.0%)Net PPE Beginning $ 69 $ 110 $ 236 $ 369 $ 497 $ 650 $ 932 $ 1,259 $ 1,641 $ 2,071
Post-Tax Cost of Debt
1.46%
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Net Income $ 3 $ 26 $ 49 $ 80 $ 109 $ 96 $ 121 $ 136 $ 135 $ 139 Capex $ 53 $ 138 $ 148 $ 141 $ 175 $ 282 $ 328 $ 381 $ 431 $ 495
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Net Income Margin0.6%4.1%6.0%7.4%6.6%5.1%5.5%5.3%4.7%4.2%% of Revenue11.0%21.5%18.3%13.1%10.7%14.9%14.9%14.9%14.9%14.9%
Weighted Average Cost of Capital (WACC)
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Income Tax Benefit/Expenses $ (8) $ (8) $ (19) $ (32) $ (44) $ (35) $ (44) $ (49) $ (49) $ (50)Depreciation and Amortization $ 24 $ 24 $ 32 $ 44 $ 55 $ 88 $ 123 $ 163 $ 211 $ 265
Cost of Equity
8.16%
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Effective Tax Rate74.3%23.1%27.5%28.4%28.8%26.5%26.5%26.5%26.5%26.5%% of Gross PPE Beginning31.5%19.2%12.2%10.8%9.9%12.0%12.0%12.0%12.0%12.0%
Equity Ratio
95.99%
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Earnings Per Share (EPS) $ 0.0 $ 0.2 $ 0.4 $ 0.6 $ 0.8 $ 0.7 $ 0.9 $ 1.0 $ 0.9 $ 0.9 Other $ (4) $ (3) $ (1) $ 6 $ 6 $ 7 $ 10 $ 14 $ 18 $ 22
Post-Tax Cost of Debt
1.46%
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YoY Growth761.4%87.5%57.0%32.3%(13.9%)22.2%8.7%(3.4%)0.4%% of Gross PPE Beginning(4.8%)(2.2%)(0.3%)1.5%1.1%1.0%1.0%1.0%1.0%1.0%Debt Ratio4.01%
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Weighted Average Diluted Shares116.3122.5121.2126.0129.7133.6137.6141.7146.0150.4Gross PPE Ending $ 124 $ 259 $ 406 $ 553 $ 734 $ 1,024 $ 1,362 $ 1,757 $ 2,205 $ 2,722 WACC7.89%
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YoY Growth5.3%(1.0%)4.0%2.9%3.0%3.0%3.0%3.0%3.0%
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Net Working Capital Schedule2021A2022A2023A2024A2025A2026E2027E2028E2029E2030E
Perpetual Growth Method
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(Millions except DSO and DIO data)
Perpetual Growth Rate
2.75%
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Total Current Asset $ 197 $ 304 $ 387 $ 406 $ 410 $ 478 $ 555 $ 645 $ 731 $ 841
Terminal Value
$ 1,943
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Net Receivables $ 176 $ 277 $ 353 $ 326 $ 333 $ 388 $ 451 $ 525 $ 593 $ 682
PV of Terminal Value
$ 1,381
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Days Sales Outstanding (DSO)134.9 Days157.4 Days159.4 Days110.2 Days74.4 Days75.0 Days75.0 Days75.0 Days75.0 Days75.0 Days
Implied Enterprise Value
$ 1,356
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Inventory $ 8 $ 8 $ 10 $ 8 $ 24 $ 26 $ 31 $ 35 $ 41 $ 47
Implied EV Multiple
-0.8x
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Days Inventory Outstanding (DSO)9.4 Days6.6 Days6.4 Days3.7 Days7.0 Days6.6 Days6.6 Days6.6 Days6.6 Days6.6 Days
Implied Equity Value
$ 1,236
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Other Current Assets $ 13 $ 20 $ 24 $ 72 $ 53 $ 63 $ 73 $ 85 $ 97 $ 113
Diluted Share Outstanding
137.74
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% of COGS4.1%4.8%4.3%9.0%4.4%4.4%4.4%4.4%4.4%4.4%
Implied Share Price
$ 8.97
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Total Current Liabilities $ 214 $ 307 $ 369 $ 1,089 $ 1,307 $ 1,220 $ 1,416 $ 1,645 $ 1,870 $ 2,159
Implied Upside
-81.0%
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Accounts Payable and Accrued Liabilities
$ 71 $ 124 $ 219 $ 249 $ 391 $ 450 $ 522 $ 606 $ 692 $ 803
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% of COGS23.1%30.1%38.9%31.1%32.0%31.0%31.0%31.0%31.0%31.0%
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Contract Liabilities $ 92 $ 111 $ 77 $ 761 $ 799 $ 625 $ 726 $ 845 $ 954 $ 1,097
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% of Revenue19.2%17.3%9.5%70.5%48.9%33.1%33.1%33.1%33.1%33.1%
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Other Current Liabilities $ 51 $ 72 $ 73 $ 79 $ 117 $ 145 $ 168 $ 195 $ 223 $ 259
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% of COGS16.6%17.3%12.9%9.9%9.5%10.0%10.0%10.0%10.0%10.0%
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Net Working Capital $ (17) $ (3) $ 18 $ (683) $ (897) $ (742) $ (861) $ (1,000) $ (1,139) $ (1,317)
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Change in Net Working Capital $ 14 $ 21 $ (701) $ (214) $ 155 $ (119) $ (139) $ (139) $ (178)
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