San Diego Business Journal Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS) closed the books on 2021, reporting revenue growth of 8½% while turning in a very modest loss of 2 cents per share.

The defense contractor — which produces unmanned aircraft as well as a variety of electronics and military hardware — reported its financial results after the market closed on Feb. 22. It also reported that it had refinanced some of its debt.


The business, with its headquarters in Scripps Ranch, achieved annual revenue of $811.5 million in 2021, up from $747.7 million in 2020. Net loss for the year was $2.0 million. In 2020, the business had net income of $79.6 million, or 69 cents per share.


Beating Analyst Estimates


During the fourth quarter, Kratos recorded a net loss of $2.6 million, or 2 cents per share, on revenue of $211.6 million, when results were calculated according to Generally Accepted Accounting Principles, or GAAP. Excluding items, Kratos had earnings per share of 11 cents. That beat the consensus of 10 analysts surveyed by Yahoo Finance, which was 9 cents.


The business said its fourth quarter revenues continued to be negatively impacted by COVID-related employee absenteeism, supply chain delays, increased lead times for delivery of necessary components, customer delays and travel restrictions. These affected Kratos’ Space, Satellite and Cyber, Microwave Products and C5ISR businesses, resulting in expected revenues of approximately $11.2 million being deferred into future periods.


Looking ahead, Kratos said it expects 2022 revenue to grow to the range of $880 million to $920 million.


The company has approximately $235 million of net operating loss carryforwards, which are expected to substantially shield it from paying future cash income taxes.


In other news, Kratos said on Feb. 22 that it refinanced its outstanding $90 million revolving credit facility and $300 million 6.5% senior secured notes, with a new five-year, $200 million revolving credit facility and a five-year, $200 million term loan.


Kratos Defense & Security Solutions Inc.
FOUNDED: 1994 as Wireless Facilities Inc.
CEO: Eric DeMarco
HEADQUARTERS: Scripps Ranch
BUSINESS: Defense contractor
REVENUE: $811.5 million in 2021; $747.7 million in 2020
STOCK: KTOS on Nasdaq
EMPLOYEES: 72 in San Diego
WEBSITE: www.kratosdefense.com
CONTACT: (858) 812-7300
NOTABLE: Kratos builds its line of unmanned aircraft and target drones in Northern California as well as at a new facility in Oklahoma