Kratos Defense and Security Solutions Inc Q1 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kenneth George Herbert - RBC Capital Markets, Research Division - Analyst : Yes. I wanted to ask, Deanna, maybe about the margin guidance, adjusted EBITDA. It looks like it steps down a little bit or flattish to down slightly in the second quarter, but then consistent with your comments, a nice step-up into the back half of the year. Is that all as a result of mix from better priced contracts? And I guess my question is really, are there other levers you can maybe pull? And if any of these newer contracts or programs face any delays, does that put the full-year margin and EBITDA outlook potentially at risk?

Question: Kenneth George Herbert - RBC Capital Markets, Research Division - Analyst : Okay. So assuming the mix holds the same from a product standpoint, I guess, that will -- that can be a nice tailwind even if there are maybe delays on the ramp of some of the fixed price side?

Question: Kenneth George Herbert - RBC Capital Markets, Research Division - Analyst : Okay. And then as I think about the space business, I mean, you obviously called out nice growth, I think, a little bit of growth than what we heard from a number of the primes. How does that business in general move through the second quarter into the back half of the year? And are you expecting to see similar growth through the rest of the year that you saw in the first quarter?