Ladies and gentlemen, thank you for standing by, and welcome to Kratos Defense & Security Solutions' Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star then one on your telephone. If you require any further assistance, please press star then zero. I would now like to turn the conference over to your speaker for today, Marie Mendoza, Senior Vice President and General Counsel. You may begin. Good afternoon, and thank you for joining us for the Kratos Defense & Security Solutions fourth quarter and fiscal 2021 conference call. With me today is Eric DeMarco, Kratos President and Chief Executive Officer, and Deanna Lund, Kratos's 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. Thank you, Marie. Good afternoon. As we reported today, Kratos finished fiscal 2021 with approximately 10.7% organic growth, excluding our training business, which legacy LPTA contracts will be completely out of our financials after Q2 of this year. Our 2021 revenue growth included growth of approximately 24% and 19% respectively in our largest businesses, unmanned systems and space satellite communications and cyber. We reported a fourth quarter book to bill ratio of 1.5 to 1. That includes 2.4 to 1 in our unmanned systems business and 1.2 to 1 in our KGS segment, positioning the company for continued future organic growth and providing us with confidence in our 2022 forecast that we're providing today. Kratos's Q4 and fiscal 2021 financial performance and our 2022 forecast organic growth are representative of the strength of Kratos's business model and our team, considering the continuing global COVID pandemic and recent Omicron variant impacts, which have spiked for Kratos in Q4 and thus far in Q1 2022, the continued and increasing disruptions in the supply chain and the federal government and our industry also operating without a federal budget and under a CR since October 1, 2021, all of which Deanna's gonna discuss in detail. We begin 2022. We believe Kratos continues to be uniquely positioned and aligned with the U.S. and its allies' national security priorities, including affordability and rapid development, testing, and fielding of hardware products and systems. In the tactical drone area, the customer recently communicated its commitment to and continued prioritization of affordable loyal wingman force multiplying tactical drones and autonomous systems for the future force structure. These comments include additional new planned for drone program opportunities for the 2023 budget request and potential envisioned concepts of operations, including drones teaming with multiple manned platforms. For example, the customer noted that loyal wingman drones and the manned unmanned teaming may include the F-22, the F-35, the B-21, and the Next Generation Air Dominance or NGAD system as system of system quarterbacks to the drones. These applications are an addition to previously discussed drone loyal wingmen or force multiplier applications, including with the F-15 aerial tankers and other manned aircraft. The customer also stated that they envision up to five loyal wingmen jet drones per manned fighter aircraft, which would represent a very large market opportunity. Based on what has recently been communicated, it's possible that in the future, certain Kratos tactical drone initiatives, programs or platforms that you are familiar with may be combined into new programs or prioritized or deprioritized. You may also become aware of certain additional Kratos drone programs or platforms or systems, including from Kratos's Ghost Works. This may occur as the customer prioritizes certain technologies, capabilities, drone systems, initiatives, mission requirements, et cetera, as they move toward initial operating capability or IOC and fielding. With the numerous tactical drone programs Kratos has successfully competed for and received, the family of affordable jet drone aircraft we have flying today, and additional systems we have in development, including with the customer. We believe that Kratos is uniquely positioned to address this increasing and accelerating market opportunity, including when the customer is ready for scale, production and fielding. Also, with Kratos' operating active tactical and target jet drone production lines at multiple facilities today, where we are producing hundreds of high performance jet drone aircraft, we also believe that Kratos is further uniquely positioned to support customer requirements if certain geopolitical or other events were to occur and affordable rapid platform acceleration were necessary. The customer also recently emphasized that national security is of increasing importance, including that certain Loyal Wingman and other drone programs will be classified at high security levels and no longer routinely discussed publicly. Accordingly, we will be very limited in what we can disclose and discuss publicly going forward from a tactical drone customer, programmatic, and platform perspective, and we will defer to the customer to take the lead in any detailed public communications. Since our last report to you, Kratos' drone initiatives have continued to make progress, including as represented by our financial results, including our unmanned systems business' Q4 24% year-over-year growth rate and a book-to-bill ratio of 2.4 to 1, and our 2022 tactical drone revenue forecast expected to be greater than 2021 and with the year-over-year future revenue growth trajectory expected to continue in the future. The manufacture of our first Valkyries of the 12 serial production lot continues, several of which are currently under customer funded contract or commitment, and certain of which now have customer flights scheduled. As I have mentioned previously, once we have an approved 2022 budget and the 2023 budget request and future years' defense program or FYDP, we should have the information necessary regarding possibly moving ahead with a second Valkyrie serial production lot, adjusting our current internally funded investment profile for the Valkyrie or for derivatives or for potential other new platforms, including potentially certain Kratos Ghost Works initiatives. In the fourth quarter, it was reported that Kratos' X-61A Gremlins drone was successfully recovered in flight by a C-130A aircraft. As Dynetics is the prime on the Gremlins program, we are unable to comment further on Gremlins at this time, though I will mention that Dynetics is an incredibly important and valuable strategic partner of Kratos', and we are working together on a number of additional exciting initiatives and opportunities. It was recently reported that a Kratos Air Wolf drone launched an AeroVironment tactical drone in a demonstration, including for drone swarming, range, and mission extension capabilities and enhancements, including for AVAV's industry-leading systems. AeroVironment's tactical drone systems are an incredible asset, and AVAV is a valuable partner to Kratos in certain scenarios we are working. Kratos' Ghost Works and our industry-leading digital engineering group has been very busy, as you can imagine, with everything that is going on in the tactical drone area, including as related to Kratos' new Demogorgon system, which was recently unveiled, and several others. We are currently under contract and bidding on multiple additional tactical drone opportunities, which are a key element of Kratos' 2022 and future forecast growth trajectory. Since our last report to you, we have received a $51 million sole source production contract from the United States Navy for BQM-177 target drone systems, including 50 drones for the Navy, 7 drones for Japan, and 8 drones for Saudi Arabia. The international customers are of particular importance, representing additional new growth opportunities for Kratos' 177 target drone system. The BQM-177 platform and related Navy program is an important element of Kratos' future growth trajectory, including domestic and international opportunities, where the infrastructure to launch, operate, and recover Kratos' drones are analogous to the Razor, and the drones are analogous to the Razor blades in a recurring revenue model. The BQM-177 is one of the highest performing unmanned aerial drone systems in the world, and it has just recently entered full rate production, which is expected to continue sole source to Kratos for many years into the future. As a data point, to date, we have produced over 170 BQM-177 jet drone aircraft. This $51 million sole source U.S. Navy contract award and program, along with the $370 million U.S. Air Force sole source target drone award Kratos received late last year, provide us confidence in our 2022 financial forecast and expected future years' growth trajectory. As an additional data point on the SSAT program, we are currently in production year 17 with the BQM-167 for the Air Force, once again sole source, and to date, we have produced over 500 of the 167 jet drone aircraft. We have a confidential program that also continues to progress, is currently in low rate initial production, and is expected to achieve full rate production in the future. Sole source to Kratos, which also provides us confidence in our forecast and future year growth trajectory. We are a teammate on another large unmanned aerial drone system program, where it was recently announced that the most recent full rate production award has now been made by the customer, with this program representing an additional key component of our 2022 financial forecast and future growth trajectory. As Kratos is not the prime on this program, we are unable to provide further information at this time. We also just received a contract from a new international customer for Kratos target drones, infrastructure, and support equipment for multiple $ tens of millions, with this new customer award also providing us confidence in our future financial forecast. Kratos' space, satellite, and cyber business, with Kratos being the first to market industry leader in software-based and software-defined ground command, control, and telemetry, tracking, and command systems, is also positioned for future year-over-year growth, which we are forecasting for 2022 over 2021 and continuing thereafter. There are currently approximately 4,500 satellites in orbit today, a number which is expected to grow by some estimates up to 100,000 by 2030. This expected satellite growth is being driven in part by the rapidly dropping cost of launch systems to put satellites into orbit and technological advancements related to the satellites themselves, including smaller, faster, more powerful and capable satellite systems. Satellite operations are also growing in complexity, including proliferated constellations, spectrum management challenges, interference avoidance across LEO, MEO, and GEO, high rates of satellite handovers, 5G advancing and more. Kratos' future forecast growth trajectory is tied directly to this large expanding market opportunity, the successful launch and operation of the planned 4 satellites and the anticipated market penetration, and success of our first to market products and systems. Our plan continues to be to make internally funded IR&D investments to achieve designed-in positions on new satellite constellations and with the operators. Once the satellites are launched in orbit and operating, for Kratos to see revenue growth and margin expansion as we transition from development and testing to operational services. Several of the satellite opportunities we are pursuing and or teamed on as strategic partners are classified in nature, and therefore we may be limited in what we can discuss publicly. However, our recent financial performance, including approximately 19% Q4 growth and a rapidly expanding opportunity pipeline, provide us confidence in our 2022 and future financial forecast. Since our last report to you, Kratos has made a small tuck-in acquisition, Cosmic AES, which is just an incredible technology-based product and solution provider in the space, signals, and cyber domains with Carol and John's culture and commitment to the mission exactly consistent with Kratos's. For example, Cosmic's belief is that actual security needs arise faster than requirements, and Cosmic builds adaptable, mission-driven solutions that empower the war fighter to confront urgent and changing threats in the space and cyber domain, threats that emerge too quickly for the traditional acquisition cycle to address. Cosmic also brings several new customer sets to Kratos, with the majority of Cosmic's work being classified. Cosmic's margins are currently lower than Kratos' space, satellite, and cyber business, including due to the existing nature and maturity of certain work they perform in their contractual arrangements. However, the margins are expected to increase as we move forward as certain Cosmic work matures or transitions to higher-end products and execution delivery. Kratos' turbine technologies and engine businesses for drones, missiles, powered munitions, space, hypersonic and other systems continues to make progress, including the receipt of our first small serial production contract for Kratos jet engines. We expect our engine and turbine businesses to generate 2022 over 2021 year-over-year organic revenue growth, including growth in KTT's space, rocket, hypersonic, MRO, and specialty engine areas as multiple established and new rocket system and launch entities engage Kratos for complex technology and hardware for their propulsion systems. Kratos' rocket systems business, which includes and supports target, ballistic missile, and hypersonic systems, our microwave products business which supports missile, radar, space, satellite, and communication systems, and our C5ISR business which supports drone, hypersonic, space, satellite, missile, radar, and strategic deterrence systems are each expected to generate year-over-year 2022 over 2021 organic growth based on current backlog in the opportunity pipeline. We recently announced that Kratos' rocket systems business is teamed with Hypersonix to develop and fly the DART hypersonic drone, which will be powered by the fifth generation SPARTAN zero-emission clean hydrogen scramjet engine. The hypersonic scramjet powered DART drone will be multi-mission capable and 3D printed out of exquisite materials. Additionally, Kratos' rocket systems business is also investing in coordination with the government customer set in the design and development of an additional new affordable hypersonic vehicle named Erinys and a complementary affordable boost system. The affordable Kratos designed boost system will accelerate the Kratos developed and Kratos manufactured Erinys hypersonic vehicle to speeds greater than Mach five before release, at which point Erinys will perform predetermined mission sets. The Kratos boost system and Kratos Erinys hypersonic vehicle, which we believe are exactly consistent with recent SecDef priorities, including low cost and moving fast, which we have been working on for some time now, continue to make progress as we move towards initial flight. Aerojet Rocketdyne is a key partner to Kratos on certain of our hypersonic rocket system, missile defense, and other national security programs. Since our last report to you, Kratos has successfully closed on an additional very small tuck-in acquisition in the microwave electronics area, CTT. Similar to Cosmic, CTT was a negotiated transaction with the principal, David Tye, with CTT's business being consistent with Kratos' existing microwave products business, including with CTT having a focus on space and satellite systems, which I am very interested in. Also similar to Cosmic, CTT will provide a channel to additional new customer opportunity sets for Kratos, with David having built a solid, rapidly growing first-class business and an outstanding team of professionals and employees. In summary, Kratos had a solid 2021 despite the global COVID pandemic, continued and increasing supply chain disruptions, and a federal government continuing resolution for our entire fourth quarter. Even with these continuing issues and challenges, we are forecasting year-over-year organic growth for 2022 over 2021 of approximately 5%-10% or 7% at the midpoint, excluding the training business. Additionally, we have the opportunity for increased future growth in the tactical drone area once the government moves forward and procures affordable high-performance jet drones, which the customer has recently publicly stated they are planning to do. When the customer makes this decision, Kratos will be ready. For our initial 2022 financial guidance, of which Deanna will be providing the details, I wanna emphasize a few points. The current CR has obviously been going on for the past five months, since October 1, 2021, and is currently expected to continue at least through March 11, 2022. The CR is directly adversely impacting our industry and Kratos, including as related to our 2020 new financial forecast, and in particular, our 2022 first quarter, the entirety of which has been covered by a continuing resolution to date. Based on our current backlog forecast, execution and delivery pipeline, and with an expected March 2022 DoD budget approval, we expect Kratos' second half of 2022 to be substantially greater than the first half. Simply stated, we have the programs, the contractual backlog, and the visibility for 2022. We need the budget, and then we will have a lot of executing to do over the last nine months of Kratos' fiscal year, assuming we get this budget in March. From an operational standpoint, Kratos' space, satellite, and cyber business, our company's largest and very rapidly growing, is transitioning from long-cycle, dedicated, hardware-centric ground infrastructure products and programs to quicker turn software-based and defined virtualized solutions. As we saw most recently in 2021, this new and increasing software element of our satellite business and the related quick customer order development delivery aspect results in cyclicality. Cyclicality of customer orders, revenue generation, and profit rates, including around the September 30 federal government fiscal year-end, when the government customer typically obligates substantial funds and makes significant procurement decisions to ensure 100% budgeted funding utilization. Also contributing to our space, satellite, and cyber business' cyclicality and expected increased revenue and profit around Kratos' Q3 and Q4 of 2022 is a calendar year and is also when non-DoD customers typically procure products and solutions, including for similar budgetary spend reasons. Accordingly, for 2022 and going forward, for Kratos' space and satellite and cyber business, we expect to forecast increased revenues and margins in our fiscal Q3 and Q4, with substantially lower expected revenue and margins in Q1 and Q2 to re-reflect this business cyclicality we have experienced, including just finished 2021. This business cyclicality also impacts the leverage Kratos receives on our fixed overhead, G&A, research and development, and other expenditures. As obviously, when we have higher revenues, we generate higher profit margins, as we just saw in Q4. We have reflected this expected cyclicality and second half increased operating leverage and anticipated revenue mix for our space, satellite, and cyber business in the 2022 financial guidance we provided today, which we believe may be even more pronounced this year as a result of the ongoing extended Continuing Resolution. With that, I'll turn it over to Deanna. Thank you, Eric. Good afternoon. As we have included a detailed summary of the fourth quarter and fiscal year financial performance and financial guidance in the press release we published earlier today, I will limit my comments to the highlights in my remarks today. Kratos' fourth quarter 2021 revenues of $211.6 million was at the midpoint of our estimated range of $205 million-$215 million. We achieved the midpoint in spite of continued COVID-related supply chain and other delays, which impacted revenues by $11.2 million during the quarter, with the most significant impacts in our C5ISR and our international commercial SatCom businesses. Our Q4 2021 consolidated operating income was $9.2 million, up from the fourth quarter of 2020 operating income of $9 million, which includes fourth quarter 2021 increases in R&D of $1.4 million, primarily in our space and satellite and unmanned systems businesses, and increased SG&A costs of $4.8 million, primarily resulting from our increase in revenues as well as due to increased headcount in our unmanned systems business, resulting from the growth in this business. In particular, total headcount in our unmanned systems business has increased 90 heads from 812 in Q4 of 2020 to 902 in Q4 of 2021, as this business experienced a 24% increase in revenues from 2020 to 2021, with additional future growth expected. Net loss was $2.6 million for the fourth quarter of 2021 and a GAAP loss of $0.02 per share, compared to net income of $78.1 million in the fourth quarter of 2020 and GAAP EPS of $0.62, which included a non-recurring tax credit of $75.3 million. Included in the net income for the fourth quarter was a tax provision of $4.5 million on income before taxes of $3 million, or an approximate 150% tax provision rate. As a reminder, we have approximately $235 million of U.S. federal net operating losses, which we expect to continue to substantially shield us from domestic-based federal income cash tax payments. We generated Adjusted EBITDA of $23.4 million for the quarter at the higher end of our expected range of $20 million-$24 million, which included a more favorable mix of revenues in Kratos' space, satellite, and cyber business, resulting primarily from higher-margin software sales and work performed on certain confidential programs, as well as a more favorable mix in our microwave products business. In the fourth quarter, our unmanned systems segment reported revenues of $54.4 million, up 9.9% from the fourth quarter of 2020, including ramps in production in certain drone programs, including the BQM-177 and Valkyrie-related work. KGS reported revenues of $157.2 million in the fourth quarter of 2021, up from $156.9 million in the fourth quarter of 2020, which included year-over-year growth in our space, satellite, and cyber business of $14.6 million and in our microwave products and turbine technologies businesses of $5.4 million, offset by a $9.4 million year-over-year decrease in our training solutions business, resulting primarily from the loss of an international training contract and a year-over-year reduction of $2.5 million in our C5ISR business, resulting primarily from supply chain and COVID-related disruptions. On a pro forma basis, excluding the reduction in our training business, KGS revenue grew organically 6.8% in the fourth quarter of 2021 over 2020, including organic growth across our space, satellite, and cyber business of 9% and organic growth in our microwave products and turbine technologies business. As discussed earlier, KGS's fourth quarter revenues were negatively impacted by disruptions and delays in COVID-related supply chain deliveries and other issues, resulting in revenues of approximately $10.7 million expected in the fourth quarter deferred to future periods. KGS's fourth quarter 2021 operating income and Adjusted EBITDA were positively impacted by a favorable mix of revenues, including increased software product deliveries, which were previously expected in the first quarter of 2022, replacing certain lower-margin work and hardware products that were originally forecasted for Q4 2021, which are now forecast for execution and delivery in Q1 of 2022. FY 2021 cash flow from operations improved approximately $10-$15 million from our original FY 2021 forecast of $20-$25 million, primarily due to the estimated investments in non-recurring engineering in our ballistic missile target business, which was originally forecasted at $10 million, compared to the $4 million that was incurred in 2021, as well as additional customer advanced payments that were received in 2021. In addition, actual capital expenditures were approximately $9-$14 million less than originally forecasted for 2021. In summary, these differences in our original 2021 estimates of investments in non-recurring engineering costs and capital expenditures primarily represent timing differences totaling $15 million-$20 million, whereby these expenditures are now expected to be incurred and funded in 2022. Our contract mix for the quarter was 79% fixed price, 18% cost type contracts, and 3% time and material contracts. Revenues generated from contracts with the U.S. federal government during the quarter were approximately 66%, including revenues generated from contracts with the DoD, non-DoD federal government agencies, and FMS contracts. In Q4, we generated 9% of revenues from commercial customers and 25% from foreign customers. Our backlog at quarter end was $953.9 million, up sequentially from third quarter end backlog of $839.1 million, with consolidated bookings of $323 million and a book-to-bill ratio of 1.5 to 1 for the fourth quarter. Funded backlog at quarter end was $653.7 million, with $300.2 million unfunded. For the 12 months ended December 26, our consolidated book-to-bill ratio was 1 to 1, with total bookings of $840 million. Moving on to financial guidance. Our fiscal 2022 financial guidance we provided today includes our current forecasted business mix and our assumptions related to the expected continued impact of employee absenteeism, supply chain disruptions, and related expected price increases, travel restrictions, and other COVID-related items that have or are currently impacting the industry and Kratos. In January and February of 2022, Kratos experienced a significant increase in the intensity and effects of COVID-19, including the new Omicron variant and the related impact to our employees, absenteeism, consultants, vendors, suppliers, customers, et cetera, which impact included loss of weeks of manufacturing and production functions in our unmanned systems, C5ISR, and microwave products businesses. We have assumed that these COVID-19 related impacts to our business, which are significantly impacting our fiscal first quarter 2022 forecast, will begin to subside in our second fiscal quarter and continue to improve throughout our fiscal 2022. As Eric discussed, there is currently no federal fiscal 2022, October 1, 2021 to September 30, 2022 defense budget in place, and the defense industry is currently operating under federal budget continuing resolution authorization, which Kratos has been operating under throughout our fourth quarter of fiscal 2021 and thus far during our first quarter of fiscal 2022. Under a CRA, there are no new start program awards or new programs of record, no increases in production on existing programs, and no transition from existing development programs to production, among other things, all of which impact Kratos. The effects of the current CRA and continued supply chain delays and disruptions adversely impacted Kratos' fourth quarter of 2021 and are expected to adversely impact Kratos' fiscal 2022, in particular, our first and second quarter financial performance, which current estimated impact has been included in our 2022 financial guidance. We currently estimate that the impact to our first quarter revenues is $12 million-$15 million and $2 million-$4 million to our adjusted EBITDA. The existing CR currently expires on March 11, 2022, at which time we have assumed that a federal fiscal 2022 defense budget will be approved and become law, which assumption is included in our 2022 financial guidance. However, once finalized, the approved and authorized 2022 DoD budget may be different and include substantially different funding amounts than what we are currently estimating, and its timing is uncertain at this time. Additionally, the longer the CR continues beyond its current March 11, 2022 expiration date, the greater the potential adverse impact to the defense industry and the company. If the current CR goes substantially beyond the current 3/11 expiration date, we will update our financial guidance when we report our first quarter results, if necessary at that time. Although we have operated under an extended CR in previous years, the most recent government DoD fiscal 2021 budget from October 1, 2020, to September 30, 2021, was signed into law as of October 2020, which meant that the industry and Kratos had a DoD budget for the entire last fiscal year. The situation is much different for fiscal 2022, as we have been operating under an extended CR for over five months. In addition, the impact of the extended CR may be more pronounced for Kratos in 2022 due to a number of expected new program starts or expected increases in production lot size quantities and anticipated transition from development efforts to production, including in our unmanned systems, space, satellite and cyber and rocket systems businesses and C5ISR business areas. As a result of these factors, as we have discussed, we are forecasting approximately flat organic growth for our first quarter of 2022 at the higher end of our estimated range compared to 2021, excluding the expected contribution from the recent acquisitions of CTT and Cosmic AES of approximately $10 million-$12 million in revenues, offset by the loss of the international training contracts, which contributed $8.3 million in Q1 of 2021. Our quarterly forecasted EBITDA performance is also impacted by these industry and cyclicality factors, including our inability to realize leverage on our fixed G&A, overhead manufacturing, and research and development costs, particularly in our 2022 Q1 and Q2 operating periods. Additionally, our forecasted first quarter EBITDA is further impacted by our expected mix of revenues, including an increased mix of lower margin development programs and international commercial satellite hardware programs and an expected reduced volume of higher margin software solution deliveries, which were delivered earlier than originally anticipated in the fourth quarter of 2021. As we continue to transition our space and satellite business from a hardware to software-focused solution, financial performance will tend to be more cyclical, lumpy, and more sensitive to delivery schedules. As we have discussed before, and I had noted previously, Kratos' FY 2022 estimated revenues includes the final impact of the 2021 loss of a large international training contract, which contributed approximately $13 million to the company's FY 2021 first and second quarter revenues. The loss of this international training contract presents a 2022 versus 2021 revenue comparison headwind for Kratos in our first and second quarters this year. As I mentioned previously, our fiscal 2022 guidance includes the estimated contribution from the recently closed CTT and Cosmic AES acquisitions, which consist of revenue Adjusted EBITDA of approximately $45 million and $1.5 million-$2 million respectively. As Eric mentioned, the profit margins for Cosmic are currently lower than our space and satellite business due to the existing nature of work they perform and their contractual arrangements. On a pro forma basis, we are forecasting pro forma organic revenue growth, excluding the loss of the international training contract on a consolidated basis at the midpoint of our $88-$92 million range of approximately 7%. For our unmanned systems business, we are forecasting annual revenues of $245-$255 million, with expected growth in our tactical business from approximately $55 million in 2021 to $70-$80 million or over 35% growth at the midpoint range. Our tactical business grew from approximately $30 million in 2020 to approximately $55 million in 2021. The revenue trajectory of our unmanned systems business is expected to be more heavily weighted in the second half of 2022, with the expected ramp driven by expected funding and related contract awards once a budget is in place. The recent international contract, target drone contract that Eric mentioned earlier, is not currently expected to contribute to 2022 due to the contractual terms and the new revenue recognition standards under which revenue is currently expected to be recognized as targets are delivered rather than as progress is completed on a percentage of completion basis. For our KGS business, we are forecasting FY 2022 revenues of $635 million-$665 million, with pro forma organic revenue growth excluding our training business of approximately 6% at the range midpoint. The largest piece of our KGS business, our space satellite and cyber business, is forecasted to grow organically approximately 10%, with estimated organic revenue growth for fiscal 2022 for all Kratos business units expected, with the exception of our training and legacy government services business. As I mentioned earlier, our estimated FY 2022 free cash flow includes approximately $15 million-$20 million of a carryover from FY 2021, representing nonrecurring engineering investments and capital expenditures that were timing differences that were not funded in 2021 but are expected to be incurred in 2022. We expect 2022 capital expenditures to remain elevated at approximately $55 million-$65 million, which includes approximately $25 million-$30 million for expected normal annual maintenance capital expenditures. As Eric stated, our 2022 estimated CapEx budget does not currently include an additional spiral production lot for Valkyries above the initial 12 production lot or other potential investments in tactical drone systems. We will make any necessary changes to our forecast when and if an additional lot of investment is initiated. As we have discussed, we're currently waiting for the CR to end, approval of the 2022 defense budget and the 2023 DoD budget request and Future Years Defense Program submission, each of which program and related funding content may significantly impact Kratos' current 2022 and future internally funded investment expectations, in particular with respect to the company's unmanned systems business. Accordingly, once these funding commitments become law or are finalized and we have assessed them, we may adjust our currently forecast internal investment and capital expenditure plans. Finally, we also announced today the refinancing of our 6.5% senior notes and $90 million revolving line of credit with a new 5-year, $200 million revolving credit facility and 5-year, $200 million term loan A. We have drawn approximately $200 million under the term loan A and approximately $100 million on the new revolving credit facility, with $100 million remaining in borrowing capacity on the revolver. The proceeds of borrowings under the new facilities of $300 million, along with cash funded by the company for the premium of 3.25% and accrued interest, or approximately $16 million, was funded to the trustee for redemption of the company's outstanding $300 million notes, which is expected to close on March 14, 2022. As a result of the refinancing, the company expects to record one-time charges of approximately $13 million-$15 million in its fiscal 2022 first quarter, comprised of a $3.25 million call premium and the write-off of the deferred financing costs associated with the original financing transactions. The cost of this refinancing, including the call premium, is expected to be recouped in approximately 12 months, with expected savings of approximately $10 million-$13 million in cash interest payments annually based on current interest rates and the amount currently drawn. The borrowing rate under the new facilities is at SOFR, which is the replacement of LIBOR, plus certain adjustments, which is currently approximately just over 2% versus the 6.5% under the senior notes. The rate is adjustable, so we will monitor the market closely to determine if hedging would be beneficial in the future. Eric? Great. Thank you, Deanna. I wanna conclude with a couple of thoughts relative to what the employees of the company have accomplished over the past few years. Over the past several years, we've made substantial internally funded investments, including in the development of a suite of affordable high performance jet drone aircraft that are flying today, and that we believe are ready now to be the Pentagon's low cost, attritable force multiplier unmanned combat system. We developed a low-cost rocket system that has had numerous successful missions, including hypersonic, and we are developing a more advanced system and an affordable hypersonic vehicle, Erinys, with initial flight now being planned. We have developed and are first to market with a truly software-based virtual satellite ground operating command and control, TT&C-based open architecture system, OpenSpace, which we believe will be market disrupting. We are working to develop a next generation of turbo jet, turbo fan, and other exotic engines for drones, missiles, powered munitions, and other systems with the first of our engines now entering limited production for an aerial vehicle with additional production awards expected. We are working closely with our Pentagon customer set and Congress, including to invigorate the U.S. industrial base, increase competition, foster real innovation, drive down costs, and secure our country. The saying quantity has a quality all of its own is becoming more and more relevant every day. We are accomplishing all of this while we continue to organically grow Kratos' revenue, our profit, our expected cash flows as we reported today, with an unwavering focus on delivering value for the shareholders. Thank you to our employees and all Kratos stakeholders who are committed to the successful execution of the mission. With that, I'll turn it over to the moderator for questions. Thank you. Ladies and gentlemen, as a reminder, to ask the question, you will need to press star then one on your telephone. To withdraw your question, press the pound key. Again, that's star one to ask the question. Please stand by while we compile the Q&A roster. Our first question comes from the line of Mike Crawford with B. Riley Securities. Your line is open. Thank you. Eric, is the decision on the OBSS demo going and down select expected this year, or is that a 2023 event? I believe, Mike, the customer announced that it will be Q4 of this year, I believe. Okay. Did you say that the CTT and Cosmic AES acquisitions were made in the fourth quarter, or were some of those acquisitions made in the first quarter? Are there earn-outs associated with them that you can discuss? Yes. Mike, the CTT acquisition was performed in the fourth quarter. Part of the purchase price was actually paid though in the first quarter, the Cosmic acquisition was in our first quarter. There are no earn outs. The first one closed right at the end of the quarter, right? Yes. At the fourth quarter. Yes. Yeah, right at the end, Mike. Literally like the last day of the quarter, something like that. Combined, you paid what for the two? About $60 million. Okay. $60 million. Yeah. Just thank you for giving that guidance. Just final question from me would be what, if anything, should we be looking for not only in this forthcoming delayed government fiscal 2022 budget, but also in the soon to emerge 2023 budget requests related to Skyborg or anything else that will give us some more clarity on where you might be able to go, particularly with tactical unmanned systems. I believe, Mike, probably right now the most publicly available data point we can talk about relative to that is the Secretary of the Air Force, where he said that he is looking to put into the 2023 request and the related FYDP, funding for two new additional unmanned combat drone aircraft. In addition to that, for the 2023 budget, as you, I think you're aware in the NDAA signed by the president for the 2022, there are a handful of items in there related to current Kratos programs that we're waiting for that could potentially fall over into 2023. Those are the two. All right. Thank you very much. Thank you. Thank you. Our next question comes from the line of Christopher Rieger with Berenberg Capital Markets. Your line is open. Eric and Deanna, good evening. Thank you very much for the time. Good evening. Good afternoon. If the current Continuing Resolution continues to be pushed out, obviously Kratos isn't the only company impacted. What sort of lingering effects, particularly on your supply chain, would you anticipate to be the most pronounced, and what can you do on your end to sort of mitigate these effects? Right. We've I think we talked about in Q2 of last year, and we've continued since then. We've routinely been buying ahead where we can, critical components, critical subsystems for our systems. In the past month, relative to our 2022 plan forecast we put out today, we met with all the operating presidents, and there are specific areas where we are leaning forward, and we're gonna try to buy a significant amount of stock. I think we've already placed the orders to get it under contract and get it in here and and fix the pricing because pricing is running on us. We're doing this ahead of contract awards. We have visibility on the program. It's a Kratos program, but the contract award may not be made yet, where we're leaning forward and making those purchases as well. Those are the key things we have been doing and we're continuing to do to mitigate as much as we can. Great. Thank you. Helpful. Just one more. Yeah. I guess a bigger picture. With regard to Valkyrie and Skyborg, what needs to occur from here on, you know, on your end, with your partners and at the DoD, in order for Skyborg to become a program of record? I am unable to address that specifically now. I want to, but I can't. If you take a look at the recent Secretary of the Air Force comments, I need to wait for the customer to talk about things. Things are moving, and we need to let the customer take point. Okay. Fair enough. Thank you very much. Okay. Thank you. Thank you. Our next question comes from the line of Sheila with Jefferies. Your line is open. Hi, this is actually Ellen on for Sheila. Just looking at the 2022 margin guide, it's implied down about 50 basis points at the midpoint. How much of that is mix versus supply chain and the CR and all the other one-time items you called out? Can you give us any color across KGS versus unmanned? As you know, in 2021, similar to 2020 and 2019, we continue to win a significant number of new tactical drone development programs. For example, at the end of 2021, we were awarded OBSS. That's just under a $20 million contract that's gonna be substantially burned in 2022. It's a development program, and development programs typically carry lower margins. Also, very importantly, GBSD, where we are teamed underneath Northrop Grumman. GBSD is based on our schedule is going to start significantly ramping in Q3, very significantly. That's gonna continue to ramp Q3, Q4, and then into 2022 and beyond. As you know, this is the development phase with Northrop Grumman before production is awarded. Those margins and development programs, we will typically record at a lower revenue rate until we get more comfortable as we head toward production. In addition to that, we have won a number of classified programs, okay, including in the space satellite communication in the drone area that are development that are carrying lower margins. These are all what are forming the foundation why I'm saying with such confidence our future year growth trajectory is up and to the right because we've been winning these programs, which means we're getting designed in on big potential production programs. That's what's causing the margins coming down a little bit thus far in 2022. Just to add to that, Ellen, related to the supply chain and COVID impact estimated for fiscal 2022, that's $20 million-$25 million on the top line and $5 million-$8 million on the EBITDA line. That's having a pretty significant impact on some of our higher margin business, especially in our microwave products business. That is impacting the margins there and a couple of the other areas. The most pronounced one is in our microwave products business there. That is impacting the overall rate. Thanks. Helpful. That's it for me. Great. Thank you. Thank you. Our next question comes from the line of Peter Arment with Baird. Your line is open. Yes. Good evening, Eric and Deanna. Hi, Peter. Hi, good afternoon. Hey, Eric, can you talk a little bit about the further outlook, you know, if we think beyond 2022? I know the target drone business you had always thought would ramp to, you know, $250 million plus. How do you think about that business now outside of just the tactical? Yep. We're making slow, methodical progress toward that. The SSAT getting full rate production and now receiving that most recent production award is gonna be an important step for us. That confidential program that is in LRIP, I wish I could give you more information on it. I cannot. That is heading toward full rate production probably next year. Okay. The international contract that I talked about today, if you recall, I mentioned that about, I think, a year ago, and then I said this one has been tied up because of the change in administration with Department of State. We just got it. Okay. We have several others that we're expecting to get. Those are all trending in the upward direction. In the other direction, we received about three years ago a sole source, just under $100 million contract with the government agency for target drones. In my opinion, I believe for funding reasons with this service, it has rolled out thus far much slower than I had originally expected. That's kind of been going the other direction. Those are the details at the forest-for-the-trees level. The more and more new weapon systems that are being sold, they need to be exercised against target drones. The business, I think, is just gonna continue to move up and to the right. That's helpful. Just to add. Yeah, just to add to that. Yeah, go ahead. The international contract that Eric's mentioning that has been delayed by about a year. Now that we've received that award, though, because of the revenue recognition standards, we won't see any contribution in 2022 because there's certain terms in our international contracts that typically are on revenue as it's shipped rather than on a percentage of completion basis. There will be no contribution 2022, but we'll see that contribution in 2023 as we deliver. Okay, that's helpful. Thank you. Just quickly on space growth. I'm sorry if I missed this earlier. You know, how are you looking at the growth there, just given all the activity and how well you're positioned on the kind of redoing a lot of the ground stations? Should we expect to see, you know, the margins continue to grind higher with from the software perspective? Yep. As we reported today, we just came off 19%. You know, I was chuckling because, you know, we do a 1.1 book-to-bill ratio, but that's on a 19% growth rate. You see what I mean? We're growing, and we're booking a lot of work. I believe this year, and I believe in the next several months, certain customers are going to make some announcements relative to Kratos and what Kratos is doing with those customers that are going to tie directly into where we see this business going over the next several years. Okay. Being first to market, as you know, is a key differentiator for us. You know, against the primes in particular, we need to be first to market to win. Our space team and our satellite team, they're incredible. Being first to market with this software-defined open space virtualization, TT&C, and C2 system, this could be as significant as what we're gonna pull off in the unmanned drone area. I see it continue up and to the right. As I said in my remarks, it's not gonna be as smooth as it used to be because these aren't multi-year hardware programs anymore. We're getting designed in, and we're shipping more and more software. Over time, margins are gonna continue to increase, and the revenue trajectory is gonna continue to be up and to the right. All of that is being supported by those statistics I gave, which are just some of the space and satellite market right now is ripping, and our number one operational challenge is getting the number of people to support it. I appreciate it, Eric. I'm back in queue. Thanks. Yep. Thank you. Thank you. Our next question comes from the line of Ken Herbert with RBC. Your line is open. Hi, good afternoon, Eric and Deanna. Hi, Ken. Hi, Ken. Hey, Eric. I just wanted to start off a bit of a higher level question. We're obviously in another CR. You've got a number of significant opportunities. As you think about sort of your, you know, crossing this, the valley of death. As you think about not only on the tactical drone side, but engines and space and other markets, how would you characterize or maybe rank the opportunity of some of your markets from a timing standpoint? I mean, should we still think about drones as obviously the next maybe significant catalyst, or it sounds like maybe there's more opportunity near term on the space side. I'm just looking for you to maybe sort of recalibrate the expectations here of the different parts of the business. Yes. I personally continue to believe that on the drone side, we're gonna continue to go significantly up into the up and to the right. I mean, the growth numbers that Deanna gave for our tactical drone business, we've gone from $30 million to $55 million to $75 million. Ken, these are all development programs. These development programs are gonna turn into production programs. Some of them might be a single or a double, but some are gonna be, in my opinion, a home run. The flurry of public information that just one service, the Air Force, starting, in my opinion, last year and through the Reagan Institute, and it's been accelerating since then, is, and with additional new programs, we're clearly in the right place at the right time with the right products, and we're gonna do it here. This is gonna happen. As I said in my prepared remarks, when the customer is ready to begin serial production, we'll be ready for them. I'm not gonna get ahead of myself on when that will be. I hope it's sooner rather than later, and I believe it will be. Our space and satellite business. We are in solicitation on a number of programs right now, very large, multiple tens of millions for Kratos, if not more. As I've talked about on previous calls, the open architecture approach that we've taken now and the non-program of record-centric approach we've taken on ground systems for the entire market, not a particular program. It's enabling us to address an entire different aspect of the satellite industry we were never able to address before. Those bids are in, and it's possible we'll be sitting here this time next year, and you're gonna ask me that question, and I'm gonna say space and satellite and drones now are equal because they're both hitting it out of the park. Space and satellite is right there. What we're doing in the hypersonic area, you haven't heard me talk about it much before. I'm not gonna talk about it much more than what I said today, but we've been working on our own hypersonic vehicles systems. If we're successful, that could be coming up in the next couple years or so. I see the engines are gonna be a slow, steady build. We've received our first production contract. I think by the end of the year, we're gonna get another production contract, and then if funding holds in the 2023 budget request that's coming, as I understand it's going to, 2023 and 2024 could be breakout years for that business. That's kinda how I see it playing out for us. We've got a handful of horses in the race and we're gonna win some of these races. Great. I appreciate that, Eric. Thanks. If I could apologize if you mentioned this earlier, but Deanna, as we think about the CapEx investment in 2022, can you just break that out by, maybe either the segments or how we should think about some of the key initiatives on the capital side this year? Sure. The guidance we gave is $55 million-$65 million. The normal maintenance CapEx is about $25 million-$30 million. What I would say the one-offs or the non-recurring or special items would be there's approximately $18 million-$20 million related to Valkyrie, so that's the continued build of the original 12 lot. Then there's build-out to SCIFs or secure compartmentalized facilities for our space business as well as our unmanned systems business, and that's about $11 million-$13 million. Those are kind of more non-recurring. Then there's about $5 million-$6 million related to the GBSD program. That should bridge you to what the normal recurring, the $25 million-$30 million, and then to get to the midpoint of our $55 million-$65 million CapEx guidance. Perfect. Appreciate that. Thanks, Deanna. Thanks, Eric. No problem. Thank you too. Thank you. Thank you. Our next question comes from the line of Austin Moeller with Canaccord. Your line is open. Good evening. My first question is for Deanna. I think we've previously talked about we know what the contract value is that it's expected for the development stage of GBSD, which is expected to ramp up in the second half of this year. I was just wondering if you guys could put any ballpark around what we should expect in terms of revenues or the ramp up in the second half of this year for hypersonics. Unfortunately, we are limited in what we can say due to the NDA that we're under, so I can't comment. I'm sorry, Austin. Okay. My next question is for Eric. If we think about the current environment here with Airwolf, we've discussed that several dozen Airwolfs are currently being constructed. The Army, of course, has announced that they have it under contract. Would it be appropriate to think that one of the several new drone programs of record that Secretary Kendall has implied would be in the fiscal year 2023 budget request might include Airwolf? Austin, I'm sorry, but you're gonna be O for 2. I cannot talk about that. I'm sorry. I apologize. I can't talk about this at all. Okay, thank you. Okay. Thank you. Our next question comes from the line of Joe Gomes with Noble Capital. Your line is open. Good evening. You know, we talk a lot here on the Continuing Resolution, obviously, that has to deal with the federal government. I was thinking, you know, some of these programs that don't relate to the federal government and one that, you know, popped out, you know, about a year ago, you guys were talking about your autonomous truck. It was in 8 locations. You know, Eric, you seem to have been very excited about it at the time. I just wondered if you could give us a little bit more of an update or some color on the status of that program. Absolutely. I'm glad you asked. We have continued to make very important progress here. As you know, as a reminder, our competitive differentiator here is we developed the technology in conjunction with the DoD to convert previously manned systems, like a manned tank or a manned combat vehicle or a manned truck, into an unmanned system or an unmanned robot, a kit. For competitive reasons, I'm not gonna give you the exact precise what we're doing, but I believe in the next 3, 4, 5 months, we are gonna make an announcement or two in conjunction with companies that are affiliated, say, with agriculture or with mining. Think of lots and lots of vehicles that are not crowded like on a highway, so there's not certain types of approvals that we need. Where we are gonna be converting these entities, vehicles to robots to perform their work in an agricultural environment or a mining environment with the wind at our tail here being these are very low-cost systems, but also the driver shortage. The driver shortage, you know, I read about it in The Wall Street Journal, but it's very acute, in particular, in the agricultural areas where you need a bunch of drivers for a certain harvest period of time, which is a perfect application for our kits. I believe we're gonna be talking about that, if not when we announce Q1, I believe, hopefully when we announce Q2, and this is gonna be exciting for us in our own little way. Great. Thanks. Thanks for that. In the release you talk about how expected revenues of about $11.2 million were being deferred into future periods. Last quarter was about $8.3 million. Maybe just give us a little color on the timing of how long you think those revenues are being deferred for. Yep. I'll give you an example of an area. Aluminum. I have come to understand there are 5 aluminum melters in the United States, and they are booked out 2-3 years. Certain of these programs need aluminum. We've placed our order and we've gone internationally too. I don't think I'm allowed to say where we've gone. Same thing. Can't get it in for these applications. Those are probably pushed out, I'm gonna say, to 2023. That's one. Another area in the satellite business and in the microwave business is in field programmable gate arrays, FPGAs, specialized ones for certain applications we have. We're getting quoted beyond 12-month lead times now. Here's something that we've been dealing with that there's really nothing we can do about. We'll have a committed delivery date, and not a month before, not two weeks before, the week that we're supposed to get the delivery, we'll get a phone call. Can't get it to you. We'll get it to you in six months. I'm gonna say I don't think we're gonna see much of this stuff until late second half this year, probably 2023, just because we can't get it. Okay, great. Thanks for that. I'll get back in queue. Okay. Thank you. Thank you. As a reminder, ladies and gentlemen, that's star one to ask a question. Our next question comes from the line of Pete Skibitski with Alembic Global. Your line is open. Hey, good afternoon, Eric and Deanna. Hey. Good afternoon, sir. Hey guys, just so we're on the same page with regard to the CR, if we do get a full year CR, does the bottom end of your guidance kinda contain that scenario, or is it likely we'd go below the bottom end of your guidance in that kinda, you know, scenario no one wants to contemplate? I don't even wanna think about this. You know, when I don't know something, I'm gonna tell you. I don't know. I don't know if some of our programs, especially in the classified area, would be part of reprogramming buckets. You know what I mean? That in the CR, they can do some reprogramming for mission-critical national security, many of which we're on, that could help us. I don't know. You know, our target drone business where we've won programs, we've won contracts, but they need to be funded with 2022 money, those would probably move to the right. Certain of the tactical drone ones where we're transitioning from, say, development phase one to development phase two or otherwise, those would probably move to the right. I've read what Northrop has said relative to GBSD, that in summary, not good. That would probably not be good for the whole team on GBSD. Not good, and I'll just leave it at that. Yeah, no, fair enough. Also had a question on a program I'm gonna mispronounce many times, Erinys. The $10 million-$12 million engineering costs for that program. It's being capitalized, it sounds like, so it's gonna flow through cash flow this year, but it won't be much of an EBIT impact this year to spend on it. Is that correct? Am I understanding that? Right. Go ahead, Deanna. Yeah. That is not the same program that was referring to the non-recurring engineering. That's a different program. Within the same hypersonic bucket, is that right? Yeah. Yes. In the same rocket system propulsion area. Okay. Yes, sir. Okay. Same question, though. It's being capitalized, but we won't see much of an EBIT impact this year, correct? Correct. Correct. Correct. Okay. 'Cause we own the systems, we own the technology. They're ours. That's correct. Okay. How are you guys thinking about, whether it be this unnamed system or Erinys, how do you think about the market size there? You know, do you need to win a competitive award? Or are you eyeing up something that, you know, a government customer has really kind of targeted you for? Can you give us a sense for how big and how near-term those opportunities could be? The hypersonic area is one of the best funded, highest priority national security areas of the United States today and for the foreseeable future as a result of what Russia and China are doing. There are hypersonic offensive systems, there are hypersonic defensive systems, there are hypersonic test and evaluation systems. All of these systems are needed now. As you may have seen, the Secretary of Defense called a summit of certain key team members to the Pentagon. I think it turned out to be a virtualized meeting relative to hypersonics. I don't believe that this will be the opportunity size, the TAM, Total Addressable Market, for us that the drone business is and is gonna be, that space and satellite business is and gonna be. I don't believe that. I do believe it could be a $10 million-$50 million a year high margin business for us because of the nature of what we're doing, which I can't talk about. Okay. No, that's great. That's great, I appreciate it. Last one for me, the international target contract that you guys just finally got. Can you size that? Can you remind us how big that is and over how many years are you expect it to be? It's approximately $25 million. It's over a few years. Okay. That's all I can say. Okay. Thanks, guys. Similar to the other. The important, I wanna emphasize this. Every chance I get, I wanna emphasize this. On these target drone programs, part of the initial buy is the launch equipment, the flight control equipment, the recovery equipment. That's the Razor. And the target drones get shot down, and that's the Blades. And that's why these are all so important and tie into that $250 million ultimate target, no pun intended, objective that we're driving towards. Every one of these are critically important, similar to the new Saudi and Japan target drone wins we got with the United States Navy. Perfect. Thank you. Thank you. Thank you. Our next question comes from the line of Sam, Samuel Struhsaker with Truist Securities. Your line is open. Hey, guys. This is Mike Ciarmoli here. Thanks for the time. I was just wondering, apologies if I missed this earlier, if you guys could provide any additional details on the revenue contributions for the two acquisitions and maybe a little bit additional detail on. I know you said that the margins would improve moving forward, but maybe a more accurate timeline or just detail that you could provide around that as well. Thanks. Sure, Sam. For the full year, the acquisitions are expected to contribute about $45 million in revenues and $1.5-$2 million of EBITDA. For the first quarter, $10-$12 million of revenue. On the second part of the question, Sam, on Cosmic, we expect to start seeing margins increase in 2023. Great. Thank you. One additional question if I could sneak it in is, regarding labor. I know you guys said that absenteeism was an issue. I'm assuming just related to Omicron, people being out sick. But do you guys see any additional issues with that moving forward past, first quarter of this year? Or do you feel pretty confident where you sit with that? Based on the way things are trending for us right now, they're getting better. All right? I-- if things don't go sideways on us, we should be in pretty good shape beginning of Q2, April-ish. We should be in pretty good shape. As I indicated, when I was talking about the space business, our number one operational challenge is hiring people for the programs we're winning. I know it's not just Kratos, it's an industry-wide issue, but in the unmanned area, in our space and satellite area, in our hypersonic area, our rocket system area, it's, we're really putting our best foot forward to obtain the right people, in many cases that have the right clearances or can get the right clearance to execute these programs. Great. Thank you. Thank you. Thank you. I'm showing no further questions in the queue. I would now like to turn the call back over to Eric for closing remarks. All right. Thank you, all for joining us, and we will speak to you when we report Q1. Have a good afternoon. Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. 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