KITT - Earnings call transcript Q2 2024

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Operator

Good day, everyone, and welcome to today's Nauticus Robotics 2024 Q2 Earnings call. [Operator Instructions] Please note, this call may be recorded. I'll be standing by if you should need any assistance.

It is now my pleasure to turn the conference over to Kristin Moorman, Nauticus Special Project Leader.

Kristin Moorman

Thank you, and good morning, everyone.

Symington participating Vicki call Nick our Hay, General John and CEO John Bigney, leadership today Counsel; Counsel; President; General and Interim [ team. me in members are the Gibson, outgoing and Joining other Incoming of ], CFO, and

and On call, operations first remarks concerning provide today's results. prepared will our we financial

that, will answer we questions. Following

We available on are of XXXX, have now which released our website. results for the second quarter our

shortly available following is call webcast, a on being call. our be website conclusion In addition, today's the replay and the of will

Please projections note future forward-looking comments call that we make or events today's on statements. regarding for our expectations are

differ statements of from We expectations. listeners a which with Forward-looking risks discussed our number to many our advise earnings release filings our review beyond factors and the to control. risk These uncertainties, SEC. cause to and materially subject are in can the and current of are uncertainties our risks results actual

release please refer may the in metrics reconciliations discuss provided Also, earnings to this as non-GAAP we on call. press our

John. turn I will over it now to

John Gibson

on Well, Kristin. progress Good conference done, focused for contracts are as and our close. the really on going We're press and you, today. backlog, work have opportunities, our today. releasing and thank those we commercial defense and XXXX work It's call us be call joining to on you currently both being a morning, short thank that we'll they be

increasing lenders our cap. they're of market has from We debentures, receive our dual existing as reducing our support continue and strong to impact the converting leverage which

largest successful we'll operator a the billed letter South our DIU We also of QX. lenders. We for deepwater bill send and So project, received Phase and recently. finished for to the in final and thank the a X that completion you received completion payment American

Operations, scope more to Mexico now. in of of of Gulf our Daniel, his section. to finalizing is and Head requirements going vehicle cover and Mark go X the with work to planning with of this month Aquanaut are We're customers that

you progress approving our to want Before meeting at on split continuing our we XX, NASDAQ's NASDAQ. the operational brought which though, minimum over by perform turn the July for activities, and our us This I split to reverse our XX testing allowed vote update key with shareholders standards. to bid reverse our to thank want price proposal I on stock June has a Meeting. price Shareholder $X required listing

meet extensions. advisers experts are have We to on the work and are continuing our to capitalization who with and hearings NASDAQ engaged requirement, NASDAQ plan market in

the Dehart, our that, going leader call turn Daniel Daniel. Now an operations over our you with to to on I'm field give to operations, update

Daniel Dehart

John. you, Thank

Let you the to me Aquanaut vehicle. on Mark up date bring X

our commercial partnered Lauderdale, FAU test We Fort to provides University with The a access campus progress so is Florida the we efficiently application. Florida have more this near has can technology of technology. vehicle AUV Atlantic towards immense cost knowledge located campus extremely to summer and that effective

East a Florida. is provided has environment to open of off the easily system develop location water accessible to controlled in Aquanaut the This setup and coast the ideal

detection satisfy several sensor integrated to contract movements. We leak collision an have completed we missions testing began continued with implementation, and existing avoidance obstacle testing

vehicle FAU Mexico return Gulf to testing to mobilizing place QX. and FAU to We from are the deliver for X vehicle of to during X

begin oil to complete the of back general field vehicle the to mobilize on We a are onto gas the subsea Aquanaut vessel of field schedule to application the structures. currently in and August inspection

efficiently. the We are committed and project safely to completing

supervised believe the market introduce to first it is activity. toolKITT, eager are autonomy to increase We step the and commercial

to turn now it back over I'll John.

John Gibson

this to we're the work be month there. excited of forward Gulf to really look while Thank to you, Daniel. and back Mexico We're headed revenue-generating

discuss to Now call over the our results. turn would like Vicki to to I financial

Victoria Hay

Thank you, good and morning. John,

July basis. references related on will completed a was equity post-split in press split on are quarter. in XX-Q detail items reverse and our and the for second financial stated XX:X the XX. I releases to now earlier, discuss All now mentioned just results regard our more As in

Revenue deepwater is from second as was XXXX year. quarter the is for largest the our the South which related second recognized period the same same and down the $XXX,XXX, first in Revenue quarter the with to last $XXX,XXX primarily quarter work American operator.

million. from for $X.X results a second quarter the were benefited $X.X on of 'XX loss decrease 'XX increase expense a second our a will $X.X of was expense of from accounting. quarter that be recognized million a contracts for loss QX Operating million contracts, include million, million $X.X which $X.X in completion is QX which percentage QX on Notably, sequential and a while expenses QX part 'XX, in incurred as the

versus in million adjusted in warrants the outstanding loss million million was value increase to noncash million fair is first fair and sequentially. This 'XX, Net for $X.X was the same in The of million quarter from million. second loss quarter the borrowings large a $X.X of change between the $X.X prior QX to compared $XX in for of $X.X $XX a and QX year. reduction million in 'XX million period 'XX $X.X periods value prior quarter relate the primarily change a noncash for $X.X net quarter variance the

in of we to costs G&A the at of which was the the loss-making 'XX 'XX to 'XX, contracts million, the first million end second throughout benefited quarter. have at-the-market in are otherwise $X.X accrual decrease $X.X compared G&A at result complete QX $X.X actively the the in quarter 'XX. $X.X period is working received of $X.X $XX.X and along million the continue this first through facility is funding end million of $X.X a 'XX $X.X reduce quarter with million XXXX. hit at a decrease of as our raising would QX we were of January Cash costs million to million, QX same QX million The relating a that from 'XX, for from

held for Drix out July. quarter, second the as we the During back PPE to in have our that contract revenue-generating on now a we sale moved working Drix of started

since has in the expected of held quarter third our of been for Additionally, prior we This end the to vessel, close signed Hydronaut have sale December to XXXX. a offer 'XX. which is on

pass will to I the call now back John.

John Gibson

Thank you, Vicki.

just to Before questions, up to few matter. take a it address for wanted I moments opening one more

Nick Nick, new He's stay As good And track Nauticus, of him you good we transition And the put our I'm board him may here. a to public we've a friend, on be been Nick incredibly Bigney Nick. what was and to to help have good will I we're having reached introduce at and over of grateful have willing a I'll filings, leaving end came he in incredibly happen out and come When seen to relationship agreed I pleased to in week. from me. and and between the our who right that enjoyed sounding moment. over and us jobs the he to to on catch the to I us General sees has commercial because here, a Counsel company mind. this just

make. like you'd to comments any Nick,

Nicholas Bigney

its incredibly believer potential, and but some time real has a setting the words, kind I with Thanks for here. in And emotions. direction John to big work the I'm years and team, I'm believe team mixed I'm future, him, is with grateful my technology, leadership here. leaving many for for in Nauticus John. mentor been pleasure been a the now. the and moreover, friend a It's it's

as to and shareholder expertise agreed through leader John really experienced, of to with the a from the as this make continue knowledge. to is have [ in myself don't months make he's Nauticus coming the we've entire cheerleader, have to sure legal gap week enough very and team transition have Counsel. He's it the to we this Nauticus possible. a watch NASDAQ I'll ] I've that and and and to seamless as seamless in in as fortunate support and Symington matters, possible, coming incoming a closely as fortunate handover institutional General been here to make sidelines the is SEC available

John Gibson

you've And and I'd here. why done appreciate [ introduce John, thank like ]. now to I Nick, Symington don't you introduce yourself? you, what John really

Unknown Executive

me look to transformation grow other my and team and I at John. different am for I this helping here. and believe you, something growth we to thank customers be. at company. with be our And experiences will believe Well, helpful I have to delighted really companies I and new forward provide to the it's a Nauticus chance place here be to rare exciting here, an

John Gibson

companies strong to and you great could John quality that good to great be I'm think really I be emphasizes strong have here, NASDAQ and and Well, have got it really a with that fact talent, do delighted chose to background large John's here, mission. we've a onboard. is the resume, John successful he plan ones, anywhere, John, joining

just to any open like questions up any. if I'd it there for that, With are

it operator. you, And back so to turn I'll

Operator

Instructions] [Operator

We'll take a Robert [ Mendrala question from ].

Unknown Analyst

question the would around, held those was of and float total market available what's the cap that the and be then current shares the number to inside. outstanding public Yes, to

Nicholas Bigney

with We've company is price. on based the Nick. what's approximately answer million to market, I share of on true million, roughly in this $XX cap converting that to about So the about of think, I million, market outstanding can $XX got the the million the you. market just $XX for of real about the closer ventures X.X cap varies day

Unknown Analyst

Okay.

million. $XX that So closer understanding. is Is $XX to my million the market cap to

Nicholas Bigney

a On fully basis, correct. that's diluted

Unknown Analyst

Okay.

meet So then does the NASDAQ that requirement?

Nicholas Bigney

We're criteria. at yes, path will we we forward But working think that. certain them on there. with a look They have

Unknown Analyst

kind or And words, the that, revenue? on that on X release about a one little press I that the you daily to pretty of once good. then in set that at more $XX,XXX. of about Very prior of could I schedule In to X the it's be was color would have on rate days question AUV's Is week a noted deployed, for the $XX,XXX Okay. please. revenue provide for a some other revenue. for other

John Gibson

say Daniel want of got of vessel. to be billed here, diesel ROV an in $XX,XXX, we're would to me some performance we're When the too, an vessels, because the really full which to the autonomy. whichever an verification that on Well, full to price or as going can required. to is they're that transition correct is all-in have autonomy, fill $XX,XXX we And ROV the the that's includes consumables, carrying to a going customer, have If the likely be through more we for I've Aquanaut who transition one to as the customers in some well. this

and you full It in Mexico, the days a so margin when small Aquanaut. work same. South the the Gulf has consumables, we for be bill, of XXX sort its out potential here doesn't want the internationally another, of it's and so look and at are ROV to a They the break season, thing winter summertime that, one be modeling the for but would just America non-U.S. supervised is in that I'd work rate mean or either losses you year autonomy, the then the the weather day and higher. when vessel, higher, getting say be here, to due flip in time

You going have just numbers. a very higher But similar right at margin day you're the running be to is that's that rate.

model in into the that our go we Hemisphere year, days then the good Southern weather the during Mexico Hemisphere so XXX And a and vehicles in is 'XX, are with the and Gulf the you in Hemisphere bad as for hope in you're vehicle. the and Gulf Northern in you're weather of operating 'XX the the Northern I

to get at we're are weather full with if going So trying the you in today. year, looking

Unknown Analyst

I understand.

you. thank So

being So type guess, charge? of a in be I vehicle the at that tested per FAU, daily sometime a on to set -- DM that's would deploy similar it's, other QX,

John Gibson

is would assembled we year back then we Gulf, XXXX, assembling certification and and next vehicle. can just and the this testing and will starting here of then contracts into go in Gulf the we're QX and have now then the go vehicle X year, that that will working month. we've in begin now one FAU and it The replace revenue, FAU, the quarter available get we so we'll this that first all over in week the have and got and carried was there box the about vehicle the the certification in one be third we ready be Robert. so X Gulf, job, imagine complete, on at the here that next Vehicle X the Mexico. X and put trials Atlantic, in there us and to back came and weeks question, the actually It's go from to FAU for revenue, the to Great out so It will will to at that to vehicle are of back working is vehicle one on next do and we X X and leave it assembling X going to chase will we'll year. for from there again should to

Unknown Analyst

let then revenue as How And more on toolKITT. I more kind industry for good. rolled expect toolKITT Very game is there? industry. ask me of quick Okay. we could and a the know an looking are you out to What changer. adopted and that's question

John Gibson

Your questions We're toolKITT Robert, one We here, simulate we been very that toolKITT. you director of had toolKITT about an the we and could breakthrough things is question. a simulation our slow. -- this do are be a had excited excellent it's week, with

by to in and the we in of that to young order our to water. he have the man, sim one it vehicle the without getting an weren't we came That's in had water, we were significant in vehicles our increase and outstanding speed. it performs almost so magnitude work having that a here, to developers wanted of the able identically ability number and test the And so so modified runs software in our of to we

in company press ROV I near able excited an with release and the the ROV's we're that we'll about discussion through have working toolKITT are working and their think deploying very be now contract to We a right future. And that's working them. in a with that's on

the going and quickly core to lower software faster are more vehicles themselves, able years so company the move think think, I is you're be, reflects much to margin, we you in I future if of itself out look a because the that it's capital, capability. the higher than

comments product. me here. And we focused that so have the with gentlemen want that you a any doing to would are on. on I making Jason, commercial make

Jason Close

acquire been as the and taking those lot operators, using mentioned, and data interest with a to and as partnerships of as engaging And we're oil forward all and We've ROVs a quite with service looking forward. have well companies parties, manufacturers John gas providers. we who go ROV lot different

Unknown Analyst

wonderful It's as very and I a it's fairly I And software. the agree revenue think that's can easily. a rolled mentioned, with efficiently out the great -- AI you effectively be pivot. it stream. and

other of business... the part the While

John Gibson

vision their here. us pivot just be It's I to operate to toolkit, when to taking agnostic would operations in get opportunity really get an be say of it that We anything them It's pivot. springboard vehicle. but no company the order and for run the the we able us, help must going certification there's of Aquanaut. itself. and looking platform started can't the no system Without the them of and on care to us that the to facilitating is others and exciting to have operate testing

business. to So fundamentally core it's our just

insights really jump another to but appreciate to need I free Robert, your time. any probably I the to in you call question, feel company.

anybody the in queue? we have Operator, do else

Operator

Manion of Enterprises. next Geneva from We'll [John take our ] question

Unknown Analyst

the for primarily. movement a in regards I anything a that relating cost, Any defense AUV's. can development few, looking on with And so forth that or through a and IUD contracting. contract? in not I contracting the coming to, few specifically that specific the there you retail to it terms is obviously, had you on build of just provide regular know for in that future the XXXX, was anything think And to regards with anything the back and for to else but specifically? in stock, defense pipeline am I Well, contract the and any there Is marines. announced down in just contract updates guys I a really questions. program, bid so you're one revenue, investor

John Gibson

get General another I'm on forward-looking trying until sitting my not anything, So defense a right new we're looking we But And sort we closed. now. everything head excellent negotiating statements it's potential and give shaking about of here question. are my contract at actively hard saying to he's Counsel any

prone of promises use to The until try because to and on looks those ongoing extremely it, technically commercially. good. discussions waffle we I have ink I'm are point, not And all this it at make words

is is forward. as on to have that to we'll interested And then something for that in defense on we we'll But thing so press you that. out extremely as the that pursuing and as right go get release concrete, soon we believe a say have information work you and that

Unknown Analyst

that was had. That question I Awesome. the main

your for you very thank much So time.

John Gibson

we do any have more Operator, followups.

Operator

the no have questions for happy Gibson We closing to return further John time. be this at I'd to comments. call

John Gibson

join. excited that. now company. do We're today execute the later We're the excited We're to Gulf we're about John calls work you. in go got the for about Mexico to going We've have Thank excited of to working how about we're on customers.

are providers, We crucible we're really to inflection where think developing the have and good some we're with service corner. partnerships working other that and point, I at we're turn at an that

I all much, It's point on indicators of think where I not really there the we're say that can but right track. that the are

right the have We vehicle.

have We John right system. with got place We've in augmented We've team the [ ] here. another the us. in operating real joining professional, right Symington the team

we so any momentum. lose And won't

forward look our including create for our our involved shareholders to everybody employees and lenders. trying and in And we Nauticus, to wealth

great So we're with -- stick right and point inflection I I the and for -- we build you Take that appreciate where for we a -- the customers. to through at we're point I guys. job there just want come This think just about company a fantastic that's you company. us. think And do is to how care.

Operator

conclude today's does This program.

a have great day. everyone, your disconnect now and may You lines,

Nauticus Robotics (KITT) 14 Aug 242024 Q2 Earnings call transcript