Intuitive Machines, Inc. (Nasdaq: LUNR, “Intuitive Machines,” or
the “Company”), a leading space exploration, infrastructure, and
services company, today announced its financial results for the
first quarter ended March 31, 2023.
Intuitive Machines CEO, Steve Altemus said, “We are very pleased
with the progress we made during our first quarter as a public
company. Our team executed well as we prepare for our upcoming
mission to return to the Moon. We continue to see strong demand for
our diverse product portfolio of in-space solutions. Underscoring
this is our recent win of the NASA OMES III contract with a
contract ceiling of $719 million for five years, which we believe
provides us with visibility into our 2023 revenue forecast and
beyond.”
Mr. Altemus continued, “Looking to the balance of 2023, we
believe we are well on our way to flying our first mission in the
third quarter of this year. The mission, expected to land on the
South Pole region of the Moon, is anticipated to be the first
mission to the South Pole and represents the return of the United
States to the Moon for the first time in more than 50 years. Our
IM-1 scientific mission is serving as a precursor to the human
Artemis missions. We continue to bid for contracts, including our
recent proposal submission to NASA’s solicitation for Near Space
Network Services, a 10-year multi-award contract for communication
services direct to/from Earth and Data Relay and Navigation
Services in and around the vicinity of the Moon. We submitted a
prime bid with Raytheon as a significant sub-contractor for data
relay services. Overall, we are excited about our progress and look
forward to updating you in the quarters going forward as we seek to
drive long-term, sustainable shareholder value.”
Operational Highlights
- Intuitive Machines’ lunar lander,
Nova-C, completed all structural testing, allowing the Company to
proceed with its first mission to the Moon in Q3 this year.
- Awarded a five-year $719 million
cost-plus-fixed-fee IDIQ NASA OMES III contract to support work
related to Joint Polar Satellite System and NASA's Exploration and
In-space Services. Intuitive Machines is the majority partner in a
joint venture with KBR to deliver services for this contract.
- Executed contract with Jacobs Solutions
(NYSE: J) to assist Jacobs in providing engineering and scientific
products, technical services, and related services for NASA Johnson
Space Center, other NASA centers, and government agencies as part
of NASA’s Johnson Space Center Engineering, Technology, and Science
(“JETS”) II contract.
- Completed a full-duration mission
sequence test of flight software and flight avionics systems with
the control team as part of ongoing progress to launch and land on
South Pole of the Moon in the third quarter of 2023.
- Accomplished propellant loading
demonstration to fill the vehicle with liquid oxygen and methane to
test fill equipment and loading procedures at the launch pad for
launch and landing on the Moon.
First Quarter 2023 Financial and Business
Highlights
- Contracted backlog of $156.1 million at quarter-end, $107.7
million of which is expected to convert to revenue over the
remainder of the year.
- First quarter 2023 revenue of $18.2
million, driven primarily by three NASA CLPS contracts within lunar
access services, compared to $18.5 million in the first quarter of
2022.
- Operating loss of $(14.0) million
versus $(4.5) million in the prior year period.
- Ending cash balance of $46.8 million as
of the end of Q1, with additional $13.6 million of equity capital
received in April from warrant exercises.
Erik Sallee, Intuitive Machines CFO said, “Our first quarter
2023 financial results were in line with expectations. With a cash
balance of $46.8 million at the end of the quarter, we believe we
are well positioned to execute on our business plan. We ended the
quarter with a contracted backlog of $156.1 million. This backlog
does not include the NASA OMES III contract, which was awarded to
our joint venture in early April after the first quarter ended and
for which an interested party initiated a protest.”
2023 Outlook
Intuitive Machines expects 2023 revenue to be in the range of
$174 million to $268 million and gross margin to be in the range of
about 5–18%. We expect to end the year with a cash balance of
approximately $49 million.
Mr. Sallee continued, “We expect our revenue generation to be
stronger in the second half of the year, given revenue recognition
and timing of several events and contracts which we anticipate will
occur in the second half of the year and support our projected
growth. A stronger second half is in line with previous years and
not uncommon within the aerospace and defense industry as a result
of the contract nature of the business.”
Conference Call Information
Intuitive Machines will host a conference call today, May 11,
2023, at 4:30 pm Eastern Time to discuss these results.
Participants may access the call at 1-877-451-6152, international
callers may use 1-201-389-0879, and request to join the Intuitive
Machines earnings call. A link to the live webcast of the earnings
conference call will be made available on the investors portion of
the Intuitive Machines’ website at
https://investors.intuitivemachines.com.. Following the live
conference call, participants may access the telephonic replay at
1-844-512-2921, international callers may use 1-412-317-6671, and
enter access code 13737679. A webcast replay will be available
through the same link on the investors portion of the Intuitive
Machines’ website at https://investors.intuitivemachines.com.
Key Business Metrics
In addition to the GAAP financial measures set forth in this
press release, the Company has included contracted backlog, which
is defined as the total estimate of the revenue the Company expects
to realize in the future as a result of performing work on awarded
contracts, less the amount of revenue the Company has previously
recognized. Intuitive Machines monitors its backlog because we
believe it is a forward-looking indicator of potential sales which
can be helpful to investors in evaluating the performance of its
business and identifying trends over time.
About Intuitive Machines
Intuitive Machines is a diversified space company focused on
space exploration. Intuitive Machines supplies space products and
services to support sustained robotic and human exploration to the
Moon, Mars, and beyond. Intuitive Machines’ products and services
are offered through its four business units: Lunar Access Services,
Orbital Services, Lunar Data Services, and Space Products and
Infrastructure. For more information, please visit
intuitivemachines.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended. All statements contained in this press release
that do not relate to matters of historical fact should be
considered forward-looking. These forward-looking statements
generally are identified by the words such as “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intend,”
“may,” “might,” “plan,” “possible,” “potential,” “predict,”
“project,” “should,” “strive,” “would,” “strategy,” “outlook,” the
negative of these words or other similar expressions, but the
absence of these words does not mean that a statement is not
forward-looking. These forward-looking statements include but are
not limited to statements regarding: our expectations and plans
relating to our first mission to the Moon, including the expected
timing thereof and our progress in preparation thereof; our
expectations with respect to, among other things, demand for our
product portfolio, our submission of bids for contracts; our
expectations regarding protests of government contracts awarded to
us; our operations, our financial performance and our industry; our
business strategy, business plan, and plans to drive long-term
sustainable shareholder value; information under “2023 Outlook,”
including our revenue, gross margin and net loss forecasts for 2023
and our expectations on revenue generation. These forward-looking
statements reflect the Company’s predictions, projections, or
expectations based upon currently available information and data.
Our actual results, performance or achievements may differ
materially from those expressed or implied by the forward-looking
statements, and you are cautioned not to place undue reliance on
these forward-looking statements. The following important factors
and uncertainties, among others, could cause actual outcomes or
results to differ materially from those indicated by the
forward-looking statements in this press release: our reliance upon
the efforts of our Board and key personnel to be successful; our
limited operating history; our failure to manage our growth
effectively; competition from existing or new companies;
unsatisfactory safety performance of our spaceflight systems or
security incidents at our facilities; failure of the market for
commercial spaceflight to achieve the growth potential we expect;
any delayed launches, launch failures, failure of our satellites or
lunar landers to reach their planned orbital locations, significant
increases in the costs related to launches of satellites and lunar
landers, and insufficient capacity available from satellite and
lunar lander launch providers; our customer concentration; risks
associated with commercial spaceflight, including any accident on
launch or during the journey into space; risks associated with the
handling, production and disposition of potentially explosive and
ignitable energetic materials and other dangerous chemicals in our
operations; our reliance on a limited number of suppliers for
certain materials and supplied components; failure of our products
to operate in the expected manner or defects in our products;
counterparty risks on contracts entered into with our customers and
failure of our prime contractors to maintain their relationships
with their counterparties and fulfill their contractual
obligations; failure to successfully defend protest from other
bidders for government contracts; failure to comply with various
laws and regulations relating to various aspects of our business
and any changes in the funding levels of various governmental
entities with which we do business; our failure to protect the
confidentiality of our trade secrets and know how; our failure to
comply with the terms of third-party open source software our
systems utilize; our ability to maintain an effective system of
internal control over financial reporting, and to address and
remediate existing material weaknesses in our internal control over
financial reporting; the U.S. government’s budget deficit and the
national debt, as well as any inability of the U.S. government to
complete its budget process for any government fiscal year, and our
dependence on U.S. government contracts; our failure to comply with
U.S. export and import control laws and regulations and U.S.
economic sanctions and trade control laws and regulations;
uncertain global macro-economic and political conditions (including
as a result of a failure to raise the “debt ceiling”) and rising
inflation; our history of losses and failure to achieve
profitability and our need for substantial additional capital to
fund our operations; the fact that our financial results may
fluctuate significantly from quarter to quarter; our holding
company status; the risk that our business and operations could be
significantly affected if it becomes subject to any securities
litigation or stockholder activism; our public securities’
potential liquidity and trading; and other factors detailed under
the section titled Part I, Item 1A. Risk Factors of our Annual
Report on Form 10-K for the fiscal year ended December 31, 2022
filed with the Securities and Exchange Commission (the “SEC”) on
March 31, 2023, the section titled Part I, Item 2, Management's
Discussion and Analysis of Financial Condition and Results of
Operations and the section titled Part II. Item 1A. “Risk Factors”
in our Quarterly Report on Form 10-Q for the quarter ended March
31, 2023 to be filed with the SEC, and in our subsequent filings
with the SEC, which are accessible on the SEC's website at
www.sec.gov and the Investors section of our website at
www.investors.intuitivemachines.com.
These forward-looking statements are based on information
available as of the date of this press release and current
expectations, forecasts, and assumptions, and involve a number of
judgments, risks, and uncertainties. Accordingly, forward-looking
statements should not be relied upon as representing our views as
of any subsequent date, and we do not undertake any obligation to
update forward-looking statements to reflect events or
circumstances after the date they were made, whether as a result of
new information, future events, or otherwise, except as may be
required under applicable securities laws.
Contacts
For investor inquiries:investors@intuitivemachines.com
For media inquiries:press@intuitivemachines.com
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