Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Q1 2023 Earnings Conference Call May 3, 2023 5:00 PM ET

Company Participants

Marie Mendoza - Senior Vice President and General Counsel

Eric DeMarco - President and CEO

Deanna Lund - Executive Vice President and CFO

Conference Call Participants

Michael Ciarmoli - Truist Securities

Mike Crawford - B. Riley Securities

Seth Seifman - JPMorgan

Sheila Kahyaoglu - Jefferies

Ken Herbert - RBC

Pete Skibitski - Alembic Global

Peter Arment - Baird

Joe Gomes - Noble Capital

Operator

Good day and thank you for standing by. Welcome to the Kratos Defense & Security Solutions First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]

Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Marie Mendoza, Senior Vice President and General Counsel.

Marie Mendoza

Thank you. Good afternoon, everyone. And thank you for joining us for the Kratos Defense & Security Solutions first quarter 2023 conference call. With me today is Eric DeMarco, Kratos’ President and Chief Executive Officer; and Deanna Lund, Kratos’ Executive Vice President and Chief Financial Officer.

Before we begin the substance of today’s call, I’d like everyone to please take note of the Safe Harbor paragraph that is included at the end of today’s press release. This paragraph emphasizes the major uncertainties and risks inherent in the forward-looking statements we will make this afternoon. Please keep these uncertainties and risks in mind as we discuss future strategic initiatives, potential market opportunities, operational outlook and financial guidance, during today’s call.

Today’s call will also include a discussion of non-GAAP financial measures, as that term is defined in Regulation G. Non-GAAP financial measures should not be considered in isolation from or as a substitute for financial information presented in compliance with GAAP. Accordingly, at the end of today’s press release, we have provided a reconciliation of these non-GAAP financial measures to the company’s financial results prepared in accordance with GAAP.

With that, I will now turn the call over to Eric DeMarco.

Eric DeMarco

Thank you, Marie. Kratos completed Q1 on track for 2023 as a transition year to expected sustained future year-over-year organic growth, increasing profit margins and cash flow, as our company realizes the benefits of the investments we have made and we transitioned from development to production and delivery in certain areas.