Redwire Corporation Reports Second Quarter 2024 Financial Results
Redwire (NYSE: RDW) reported its Q2 2024 financial results, showing 30% year-over-year revenue growth to $78.1 million. The company experienced a net loss of $18.1 million and Adjusted EBITDA of $1.6 million. Bookings for Q2 2024 were $114.4 million, a 226% sequential increase from Q1. Redwire's contracted backlog grew 29.9% year-over-year to $354 million. The company was awarded a prime contract for the SabreSat VLEO platform under DARPA's Otter program and received a follow-on order for Roll-Out Solar Array wings. Redwire affirmed its 2024 revenue forecast of $300 million, with year-to-date bids reaching approximately $1.9 billion and an LTM Book-to-Bill ratio of 1.28.
Redwire (NYSE: RDW) ha presentato i risultati finanziari per il secondo trimestre del 2024, registrando una crescita del fatturato del 30% rispetto all'anno precedente, con un totale di $78,1 milioni. L'azienda ha subito una perdita netta di $18,1 milioni e ha riportato un EBITDA rettificato di $1,6 milioni. Gli ordini per il secondo trimestre del 2024 sono stati pari a $114,4 milioni, con un incremento sequenziale del 226% rispetto al primo trimestre. L'portafoglio contrattuale di Redwire è cresciuto del 29,9% rispetto all'anno precedente, raggiungendo i $354 milioni. L'azienda ha ricevuto un contratto principale per la piattaforma SabreSat VLEO nell'ambito del programma Otter di DARPA e ha ottenuto un ordine di follow-up per le ali del Roll-Out Solar Array. Redwire ha confermato la previsione di fatturato per il 2024 di $300 milioni, con offerte registrate fino ad oggi che raggiungono circa $1,9 miliardi e un rapporto Book-to-Bill LTM di 1,28.
Redwire (NYSE: RDW) informó sus resultados financieros del segundo trimestre de 2024, mostrando un crecimiento del 30% en los ingresos año tras año, alcanzando los $78.1 millones. La empresa experimentó una pérdida neta de $18.1 millones y un EBITDA ajustado de $1.6 millones. Las reservas para el segundo trimestre de 2024 fueron de $114.4 millones, un incremento secuencial del 226% en comparación con el primer trimestre. El backlog contratado de Redwire creció un 29.9% año tras año, alcanzando los $354 millones. La compañía recibió un contrato principal para la plataforma SabreSat VLEO bajo el programa Otter de DARPA y recibió un pedido adicional para las alas del Roll-Out Solar Array. Redwire reafirmó su pronóstico de ingresos de $300 millones para 2024, con ofertas acumuladas hasta la fecha que alcanzan aproximadamente $1.9 mil millones y una relación Book-to-Bill LTM de 1.28.
레드와이어(Redwire) (NYSE: RDW)는 2024년 2분기 재무 결과를 보고하며 전년 대비 30%의 매출 성장률을 기록하여 7,810만 달러에 이르렀습니다. 회사는 1,810만 달러의 순손실을 경험하였고, 조정 EBITDA는 160만 달러에 달했습니다. 2024년 2분기의 예약 주문은 1억 1,440만 달러였으며, 이는 1분기 대비 226%의 증가를 나타냅니다. 레드와이어의 계약 잔고는 전년 대비 29.9% 증가하여 3억 5,400만 달러에 도달했습니다. 회사를 통해 DARPA의 오터 프로그램에 따른 SabreSat VLEO 플랫폼에 대한 주요 계약을 수주하였고, Roll-Out Solar Array 날개에 대한 후속 주문도 받았습니다. 레드와이어는 2024년 매출 전망을 3억 달러로 확정하였으며, 연초까지의 입찰금액은 약 19억 달러에 이르고, LTM Book-to-Bill 비율은 1.28입니다.
Redwire (NYSE: RDW) a publié ses résultats financiers du deuxième trimestre 2024, montrant une croissance des revenus de 30% par rapport à l'année précédente, atteignant 78,1 millions de dollars. L'entreprise a enregistré une perte nette de 18,1 millions de dollars et un EBITDA ajusté de 1,6 million de dollars. Les commandes pour le deuxième trimestre 2024 s'élevaient à 114,4 millions de dollars, soit une augmentation séquentielle de 226% par rapport au premier trimestre. Le portefeuille de contrats de Redwire a augmenté de 29,9% par rapport à l'année précédente, atteignant 354 millions de dollars. L'entreprise a reçu un contrat principal pour la plateforme SabreSat VLEO dans le cadre du programme Otter de DARPA et a obtenu une commande supplémentaire pour les ailes du Roll-Out Solar Array. Redwire a confirmé ses prévisions de revenus pour 2024 à 300 millions de dollars, avec des offres cumulées jusqu'à présent s'élevant à environ 1,9 milliard de dollars et un ratio Book-to-Bill LTM de 1,28.
Redwire (NYSE: RDW) hat seine Finanzzahlen für das 2. Quartal 2024 bekanntgegeben und dabei eine Umsatzsteigerung von 30% im Vergleich zum Vorjahr auf 78,1 Millionen Dollar verzeichnet. Das Unternehmen erlitt einen Nettoverlust von 18,1 Millionen Dollar und erzielte ein bereinigtes EBITDA von 1,6 Millionen Dollar. Die Aufträge für das 2. Quartal 2024 beliefen sich auf 114,4 Millionen Dollar, was einem sequenziellen Anstieg von 226% im Vergleich zum 1. Quartal entspricht. Der Auftragsbestand von Redwire wuchs um 29,9% im Vergleich zum Vorjahr auf 354 Millionen Dollar. Das Unternehmen erhielt einen Hauptauftrag für die SabreSat VLEO-Plattform im Rahmen des DARPA-Programms Otter und bekam eine Folgeauftrag für die Roll-Out-Solararray-Flügel. Redwire bestätigte die Umsatzprognose von 300 Millionen Dollar für 2024, mit bis heute eingegangenen Angeboten von etwa 1,9 Milliarden Dollar und einem LTM Book-to-Bill-Verhältnis von 1,28.
- 30% year-over-year revenue growth to $78.1 million in Q2 2024
- Bookings increased 226% sequentially to $114.4 million in Q2 2024
- Contracted backlog grew 29.9% year-over-year to $354 million
- Awarded prime contract for SabreSat VLEO platform under DARPA's Otter program
- Received follow-on order for Roll-Out Solar Array wings
- Total available liquidity increased 54.1% year-over-year to $55.8 million
- Affirmed 2024 revenue forecast of $300 million
- Net loss increased to $18.1 million in Q2 2024, up from $5.5 million in Q2 2023
- Adjusted EBITDA decreased to $1.6 million, down from $4.4 million in Q2 2023
- Net cash used in operating activities was $9.5 million for Q2 2024
- Free Cash Flow decreased to $(11.2) million, down from $1.1 million in Q2 2023
Insights
Redwire's Q2 2024 results show a mixed financial picture. While revenues increased
Positively, bookings surged
However, Adjusted EBITDA declined to
Redwire's Q2 results highlight its growing position in the space infrastructure market. The company secured key contracts, including a prime contract for the SabreSat VLEO platform under DARPA's Otter program and a follow-on order for Roll-Out Solar Array wings for Thales Alenia Space's satellites.
These wins demonstrate Redwire's technological capabilities and market acceptance. The substantial increase in bookings and backlog suggests strong demand for Redwire's products and services in the evolving space economy.
However, the company's path to profitability remains challenging. The space industry often requires significant upfront investments, which can pressure near-term profitability. Investors should consider Redwire's ability to convert its growing backlog into profitable revenue streams as a key factor in its long-term success.
Revenues for the second quarter of 2024 increased
Net Loss was
Bookings for the second quarter of 2024 were
Awarded prime contract for SabreSat VLEO platform under DARPA’s Otter program; Under contract for follow-on order of Roll-Out Solar Array wings for Thales Alenia Space’s Space Inspire satellites
Net cash provided by (used in) operating activities was a use of
Contracted Backlog2 increased by
Total available liquidity3 as of June 30, 2024 was
Redwire will live stream a presentation with slides on August 8, 2024 at 9:00 a.m. ET. Please use the link below to follow along with the live stream: https://event.choruscall.com/mediaframe/webcast.html?webcastid=NVI0NEKI.
“During the second quarter we continued to execute on our 2024 growth strategy, resulting in year-over-year revenue growth of
Second Quarter 2024 Highlights
-
Revenues for the second quarter of 2024 increased
30.0% to$78.1 million $60.1 million -
Net Loss for the second quarter of 2024 increased by
$12.6 million $(18.1) million $(5.5) million $9.0 million $(0.8) million -
Adjusted EBITDA4 for the second quarter of 2024 decreased by
$2.7 million $1.6 million $4.4 million - On a last twelve month (LTM) basis, Book-to-Bill5 ratio was 1.28 as of the second quarter of 2024, as compared to 1.49 as of the second quarter of 2023. On a quarterly basis, Book-to-Bill5 ratio was 1.47 as of the second quarter of 2024, as compared to 0.76 as of the second quarter of 2023.
-
Net cash provided by (used in) operating activities for the second quarter of 2024 decreased by
$12.4 million $(9.5) million $2.8 million -
Free Cash Flow4 for the second quarter of 2024 decreased by
$12.3 million $(11.2) million $1.1 million
2024 Forecast
-
For the full year ended December 31, 2024, Redwire affirms that it is forecasting revenues of
$300 million
“Redwire continued strong revenue performance through the second quarter, with revenue for the first half of 2024 climbing to
Webcast and Investor Call
Management will conduct a conference call starting at 9:00 a.m. ET on Thursday, August 8, 2024 to review financial results for the second quarter ended June 30, 2024. This release and the most recent investor slide presentation are available in the investor relations area of our website at redwirespace.com.
Redwire will live stream a presentation with slides during the call. Please use the following link to follow along with the live stream: https://event.choruscall.com/mediaframe/webcast.html?webcastid=NVI0NEKI. The dial-in number for the live call is 877-485-3108 (toll free) or 201-689-8264 (toll), and the conference ID is 13748023.
A telephone replay of the call will be available for two weeks following the event by dialing 877-660-6853 (toll-free) or 201-612-7415 (toll) and entering the access code 13748023. The accompanying investor presentation will be available on August 8, 2024 on the investor section of Redwire’s website at redwirespace.com.
Any replay, rebroadcast, transcript or other reproduction or transmission of this conference call, other than the replay accessible by calling the number and website above, has not been authorized by Redwire Corporation and is strictly prohibited. Investors should be aware that any unauthorized reproduction of this conference call may not be an accurate reflection of its contents.
1 |
Adjusted EBITDA is not a measure of results under generally accepted accounting principles in |
||
2 |
Contracted Backlog is a key business measure. Please refer to “Key Performance Indicators” and the tables included in this press release for additional information. |
||
3 |
Total available liquidity was |
||
4 |
Adjusted EBITDA and Free Cash Flow are not measures of results under generally accepted accounting principles in |
||
5 |
Book-to-bill is a key business measure. Please refer to “Key Performance Indicators” and the tables included in this press release for additional information. |
||
About Redwire Corporation
Redwire Corporation (NYSE:RDW) is a global space infrastructure and innovation company enabling civil, commercial, and national security programs. Redwire’s proven and reliable capabilities include avionics, sensors, power solutions, critical structures, mechanisms, radio frequency systems, platforms, missions, and microgravity payloads. Redwire combines decades of flight heritage and proven experience with an agile and innovative culture. Redwire’s approximately 700 employees working from 14 facilities located throughout
Cautionary Statement Regarding Forward-Looking Statements
Readers are cautioned that the statements contained in this press release regarding expectations of our performance or other matters that may affect our business, results of operations, or financial condition are “forward-looking statements” as defined by the “safe harbor” provisions in the Private Securities Litigation Reform Act of 1995. Such statements are made in reliance on the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included or incorporated in this press release, including statements regarding our strategy, financial position, guidance, funding for continued operations, cash reserves, liquidity, projected costs, plans, projects, awards and contracts, and objectives of management, among others, are forward-looking statements. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “continued,” “project,” “plan,” “goals,” “opportunity,” “appeal,” “estimate,” “potential,” “predict,” “demonstrates,” “may,” “will,” “might,” “could,” “intend,” “shall,” “possible,” “forecast,” “trends,” “contemplate,” “would,” “approximately,” “likely,” “outlook,” “schedule,” “on track,” “poised,” “pipeline,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are not guarantees of future performance, conditions or results. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control.
These factors and circumstances include, but are not limited to: (1) risks associated with the continued economic uncertainty, including high inflation, supply chain challenges, labor shortages, high interest rates, foreign currency exchange volatility, concerns of economic slowdown or recession and reduced spending or suspension of investment in new or enhanced projects; (2) the failure of financial institutions or transactional counterparties; (3) the Company’s limited operating history and history of losses to date; (4) the inability to successfully integrate recently completed and future acquisitions; (5) the development and continued refinement of many of the Company’s proprietary technologies, products and service offerings; (6) competition with new or existing companies; (7) the possibility that the Company’s expectations and assumptions relating to future results may prove incorrect; (8) adverse publicity stemming from any incident or perceived risk involving Redwire or our competitors; (9) unsatisfactory performance of our products resulting from challenges in the space environment, extreme space weather events, or otherwise; (10) the emerging nature of the market for in-space infrastructure services; (11) inability to realize benefits from new offerings or the application of our technologies; (12) the inability to convert orders in backlog into revenue; (13) our dependence on
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. If underlying assumptions to forward-looking statements prove inaccurate, or if known or unknown risks or uncertainties materialize, actual results could vary materially from those anticipated, estimated, or projected. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Persons reading this press release are cautioned not to place undue reliance on forward-looking statements.
Non-GAAP Financial Information
This press release contains financial measures that have not been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). These financial measures include Adjusted EBITDA, Pro Forma Adjusted EBITDA, and Free Cash Flow.
Non-GAAP financial measures are used to supplement the financial information presented on a
Adjusted EBITDA is defined as net income (loss) adjusted for interest expense, net, income tax expense (benefit), depreciation and amortization, impairment expense, acquisition deal costs, acquisition integration costs, acquisition earnout costs, purchase accounting fair value adjustment related to deferred revenue, severance costs, capital market and advisory fees, litigation-related expenses, write-off of long-lived assets, gains on sale of joint ventures, equity-based compensation, committed equity facility transaction costs, debt financing costs, and warrant liability change in fair value adjustments. Pro Forma Adjusted EBITDA is defined as Adjusted EBITDA further adjusted for the incremental Adjusted EBITDA that acquired businesses would have contributed for the periods presented if such acquisitions had occurred on January 1 of the year in which they occurred. Accordingly, historical financial information for the businesses acquired includes pro forma adjustments calculated in a manner consistent with the concepts of Article 8 of Regulation S-X, which are ultimately added back in the calculation of Adjusted EBITDA. Free Cash Flow is computed as net cash provided by (used in) operating activities less capital expenditures.
We use Adjusted EBITDA and Pro Forma Adjusted EBITDA to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. We use Free Cash Flow as a useful indicator of liquidity to evaluate our period-over-period operating cash generation that will be used to service our debt, and can be used to invest in future growth through new business development activities and/or acquisitions, among other uses. Free Cash Flow does not represent the total increase or decrease in our cash balance, and it should not be inferred that the entire amount of Free Cash Flow is available for discretionary expenditures, since we have mandatory debt service requirements and other non-discretionary expenditures that are not deducted from this measure. We believe Pro Forma Adjusted EBITDA provides meaningful insights into the impact of strategic acquisitions as well as an indicative run rate of the Company’s future operating performance.
Key Performance Indicators
Management uses Key Performance Indicators (“KPIs”) to assess the financial performance of the Company, monitor relevant trends and support financial, operational and strategic decision-making. Management frequently monitors and evaluates KPIs against internal targets, core business objectives as well as industry peers and may, on occasion, change the mix or calculation of KPIs to better align with the business, its operating environment, standard industry metrics or other considerations. If the Company changes the method by which it calculates or presents a KPI, prior period disclosures are recast to conform to current presentation.
REDWIRE CORPORATION
|
|||||||
June 30, 2024 |
|
December 31, 2023 |
|||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
30,832 |
|
|
$ |
30,278 |
|
Accounts receivable, net |
|
22,083 |
|
|
|
32,411 |
|
Contract assets |
|
42,909 |
|
|
|
36,961 |
|
Inventory |
|
1,825 |
|
|
|
1,516 |
|
Income tax receivable |
|
636 |
|
|
|
636 |
|
Prepaid insurance |
|
577 |
|
|
|
1,083 |
|
Prepaid expenses and other current assets |
|
6,451 |
|
|
|
6,428 |
|
Total current assets |
|
105,313 |
|
|
|
109,313 |
|
Property, plant and equipment, net of accumulated depreciation of |
|
15,889 |
|
|
|
15,909 |
|
Right-of-use assets |
|
11,495 |
|
|
|
13,181 |
|
Intangible assets, net of accumulated amortization of |
|
61,755 |
|
|
|
62,985 |
|
Goodwill |
|
65,218 |
|
|
|
65,757 |
|
Equity method investments |
|
— |
|
|
|
3,613 |
|
Other non-current assets |
|
604 |
|
|
|
511 |
|
Total assets |
$ |
260,274 |
|
|
$ |
271,269 |
|
|
|
|
|
||||
Liabilities, Convertible Preferred Stock and Equity (Deficit) |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
27,796 |
|
|
$ |
18,573 |
|
Short-term debt, including current portion of long-term debt |
|
780 |
|
|
|
1,378 |
|
Short-term operating lease liabilities |
|
3,502 |
|
|
|
3,737 |
|
Short-term finance lease liabilities |
|
461 |
|
|
|
439 |
|
Accrued expenses |
|
28,624 |
|
|
|
32,902 |
|
Deferred revenue |
|
44,076 |
|
|
|
52,645 |
|
Other current liabilities |
|
2,064 |
|
|
|
2,362 |
|
Total current liabilities |
|
107,303 |
|
|
|
112,036 |
|
Long-term debt, net |
|
94,646 |
|
|
|
86,842 |
|
Long-term operating lease liabilities |
|
10,634 |
|
|
|
12,302 |
|
Long-term finance lease liabilities |
|
1,064 |
|
|
|
1,137 |
|
Warrant liabilities |
|
13,377 |
|
|
|
3,325 |
|
Deferred tax liabilities |
|
2,442 |
|
|
|
2,402 |
|
Other non-current liabilities |
|
378 |
|
|
|
400 |
|
Total liabilities |
$ |
229,844 |
|
|
$ |
218,444 |
|
|
|
|
|
||||
REDWIRE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited
(In thousands of |
|||||||
|
|
|
|
||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
Convertible preferred stock, |
$ |
108,696 |
|
|
$ |
96,106 |
|
|
|
|
|
||||
Shareholders’ Equity (Deficit): |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
7 |
|
|
|
7 |
|
Treasury stock, 373,420 and 353,470 shares, at cost, as of June 30, 2024 and December 31, 2023, respectively |
|
(1,007 |
) |
|
|
(951 |
) |
Additional paid-in capital |
|
180,716 |
|
|
|
188,323 |
|
Accumulated deficit |
|
(259,978 |
) |
|
|
(233,791 |
) |
Accumulated other comprehensive income (loss) |
|
1,996 |
|
|
|
2,903 |
|
Total shareholders’ equity (deficit) |
|
(78,266 |
) |
|
|
(43,509 |
) |
Noncontrolling interests |
|
— |
|
|
|
228 |
|
Total equity (deficit) |
|
(78,266 |
) |
|
|
(43,281 |
) |
Total liabilities, convertible preferred stock and equity (deficit) |
$ |
260,274 |
|
|
$ |
271,269 |
|
REDWIRE CORPORATION
|
|||||||||||||||
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Revenues |
$ |
78,111 |
|
|
$ |
60,098 |
|
|
$ |
165,903 |
|
|
$ |
117,703 |
|
Cost of sales |
|
65,127 |
|
|
|
44,194 |
|
|
|
138,094 |
|
|
|
87,582 |
|
Gross margin |
|
12,984 |
|
|
|
15,904 |
|
|
|
27,809 |
|
|
|
30,121 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses |
|
18,088 |
|
|
|
17,686 |
|
|
|
35,450 |
|
|
|
33,724 |
|
Transaction expenses |
|
278 |
|
|
|
4 |
|
|
|
278 |
|
|
|
13 |
|
Research and development |
|
1,748 |
|
|
|
2,070 |
|
|
|
2,788 |
|
|
|
2,458 |
|
Operating income (loss) |
|
(7,130 |
) |
|
|
(3,856 |
) |
|
|
(10,707 |
) |
|
|
(6,074 |
) |
Interest expense, net |
|
3,009 |
|
|
|
2,664 |
|
|
|
5,927 |
|
|
|
5,308 |
|
Other (income) expense, net |
|
7,933 |
|
|
|
(970 |
) |
|
|
9,425 |
|
|
|
1,457 |
|
Income (loss) before income taxes |
|
(18,072 |
) |
|
|
(5,550 |
) |
|
|
(26,059 |
) |
|
|
(12,839 |
) |
Income tax expense (benefit) |
|
15 |
|
|
|
(85 |
) |
|
|
124 |
|
|
|
(116 |
) |
Net income (loss) |
|
(18,087 |
) |
|
|
(5,465 |
) |
|
|
(26,183 |
) |
|
|
(12,723 |
) |
Net income (loss) attributable to noncontrolling interests |
|
5 |
|
|
|
(1 |
) |
|
|
4 |
|
|
|
(1 |
) |
Net income (loss) attributable to Redwire Corporation |
|
(18,092 |
) |
|
|
(5,464 |
) |
|
|
(26,187 |
) |
|
|
(12,722 |
) |
Less: dividends on Convertible Preferred Stock |
|
9,699 |
|
|
|
4,800 |
|
|
|
12,742 |
|
|
|
9,166 |
|
Net income (loss) available to common shareholders |
$ |
(27,791 |
) |
|
$ |
(10,264 |
) |
|
$ |
(38,929 |
) |
|
$ |
(21,888 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
$ |
(0.42 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.59 |
) |
|
$ |
(0.34 |
) |
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
65,701,704 |
|
|
|
64,345,698 |
|
|
|
65,636,995 |
|
|
|
64,313,344 |
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income (loss): |
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Redwire Corporation |
$ |
(18,092 |
) |
|
$ |
(5,464 |
) |
|
$ |
(26,187 |
) |
|
$ |
(12,722 |
) |
Foreign currency translation gain (loss), net of tax |
|
(78 |
) |
|
|
138 |
|
|
|
(750 |
) |
|
|
556 |
|
Total other comprehensive income (loss), net of tax |
|
(78 |
) |
|
|
138 |
|
|
|
(750 |
) |
|
|
556 |
|
Total comprehensive income (loss) |
$ |
(18,170 |
) |
|
$ |
(5,326 |
) |
|
$ |
(26,937 |
) |
|
$ |
(12,166 |
) |
REDWIRE CORPORATION
|
|||||||
Six Months Ended |
|||||||
|
June 30, 2024 |
|
June 30, 2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
|
(26,183 |
) |
|
|
(12,723 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
5,678 |
|
|
|
5,084 |
|
Amortization of debt issuance costs and discount |
|
349 |
|
|
|
173 |
|
Equity-based compensation expense |
|
4,453 |
|
|
|
3,866 |
|
(Gain) loss on sale of joint ventures |
|
(1,303 |
) |
|
|
— |
|
(Gain) loss on change in fair value of committed equity facility |
|
— |
|
|
|
(66 |
) |
(Gain) loss on change in fair value of warrants |
|
10,052 |
|
|
|
2,011 |
|
Deferred provision (benefit) for income taxes |
|
112 |
|
|
|
(333 |
) |
Non-cash lease expense |
|
22 |
|
|
|
103 |
|
Non-cash interest expense |
|
— |
|
|
|
525 |
|
Other |
|
690 |
|
|
|
(128 |
) |
Changes in assets and liabilities: |
|
|
|
||||
(Increase) decrease in accounts receivable |
|
9,987 |
|
|
|
1,376 |
|
(Increase) decrease in contract assets |
|
(6,449 |
) |
|
|
(11,898 |
) |
(Increase) decrease in inventory |
|
(314 |
) |
|
|
188 |
|
(Increase) decrease in prepaid insurance |
|
505 |
|
|
|
1,604 |
|
(Increase) decrease in prepaid expenses and other assets |
|
(231 |
) |
|
|
(592 |
) |
Increase (decrease) in accounts payable and accrued expenses |
|
4,838 |
|
|
|
(3,262 |
) |
Increase (decrease) in deferred revenue |
|
(8,497 |
) |
|
|
4,025 |
|
Increase (decrease) in operating lease liabilities |
|
(169 |
) |
|
|
(160 |
) |
Increase (decrease) in other liabilities |
|
(282 |
) |
|
|
(440 |
) |
Increase (decrease) in notes payable to sellers |
|
— |
|
|
|
(557 |
) |
Net cash provided by (used in) operating activities |
|
(6,742 |
) |
|
|
(11,204 |
) |
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Net proceeds from sale of joint ventures |
|
4,598 |
|
|
|
— |
|
Purchases of property, plant and equipment, net |
|
(2,475 |
) |
|
|
(2,223 |
) |
Purchase of intangible assets |
|
(1,579 |
) |
|
|
(325 |
) |
Net cash provided by (used in) investing activities |
|
544 |
|
|
|
(2,548 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Proceeds received from debt |
|
15,000 |
|
|
|
11,500 |
|
Repayments of debt |
|
(7,988 |
) |
|
|
(13,695 |
) |
Payment of debt issuance fees to third parties |
|
(322 |
) |
|
|
— |
|
Repayment of finance leases |
|
(235 |
) |
|
|
(175 |
) |
Proceeds from issuance of common stock |
|
530 |
|
|
|
— |
|
Payment of committed equity facility transaction costs |
|
— |
|
|
|
(571 |
) |
Payments of issuance costs related to convertible preferred stock |
|
— |
|
|
|
(52 |
) |
Shares repurchased for settlement of employee tax withholdings on share-based awards |
|
(56 |
) |
|
|
— |
|
Payment of contingent earnout |
|
— |
|
|
|
(443 |
) |
Net cash provided by (used in) financing activities |
|
6,929 |
|
|
|
(3,436 |
) |
Effect of foreign currency rate changes on cash and cash equivalents |
|
(177 |
) |
|
|
103 |
|
Net increase (decrease) in cash and cash equivalents |
|
554 |
|
|
|
(17,085 |
) |
Cash and cash equivalents at beginning of period |
|
30,278 |
|
|
|
28,316 |
|
Cash and cash equivalents at end of period |
$ |
30,832 |
|
|
$ |
11,231 |
|
REDWIRE CORPORATION
|
|||||||||||||||
Adjusted EBITDA and Pro Forma Adjusted EBITDA |
|||||||||||||||
The following table presents the reconciliations of Adjusted EBITDA and Pro Forma Adjusted EBITDA to net income (loss), computed in accordance with |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(in thousands) |
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Net income (loss) |
$ |
(18,087 |
) |
|
$ |
(5,465 |
) |
|
$ |
(26,183 |
) |
|
$ |
(12,723 |
) |
Interest expense, net |
|
3,009 |
|
|
|
2,664 |
|
|
|
5,927 |
|
|
|
5,308 |
|
Income tax expense (benefit) |
|
15 |
|
|
|
(85 |
) |
|
|
124 |
|
|
|
(116 |
) |
Depreciation and amortization |
|
2,925 |
|
|
|
2,618 |
|
|
|
5,678 |
|
|
|
5,084 |
|
Acquisition deal costs (i) |
|
278 |
|
|
|
4 |
|
|
|
278 |
|
|
|
13 |
|
Acquisition integration costs (i) |
|
— |
|
|
|
240 |
|
|
|
— |
|
|
|
546 |
|
Purchase accounting fair value adjustment related to deferred revenue (ii) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
Severance costs (iii) |
|
159 |
|
|
|
176 |
|
|
|
167 |
|
|
|
320 |
|
Capital market and advisory fees (iv) |
|
2,154 |
|
|
|
2,967 |
|
|
|
4,432 |
|
|
|
4,355 |
|
Litigation-related expenses (v) |
|
1,532 |
|
|
|
43 |
|
|
|
2,233 |
|
|
|
68 |
|
Equity-based compensation (vi) |
|
1,918 |
|
|
|
1,908 |
|
|
|
4,453 |
|
|
|
3,866 |
|
Committed equity facility transaction costs (vii) |
|
— |
|
|
|
40 |
|
|
|
— |
|
|
|
(66 |
) |
Debt financing costs (viii) |
|
— |
|
|
|
17 |
|
|
|
— |
|
|
|
17 |
|
Gain on sale of joint ventures, net of costs incurred (ix) |
|
(1,255 |
) |
|
|
— |
|
|
|
(1,255 |
) |
|
|
— |
|
Warrant liability change in fair value adjustment (x) |
|
8,977 |
|
|
|
(773 |
) |
|
|
10,052 |
|
|
|
2,011 |
|
Adjusted EBITDA |
|
1,625 |
|
|
|
4,354 |
|
|
|
5,906 |
|
|
|
8,698 |
|
Pro forma impact on Adjusted EBITDA (xi) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Pro Forma Adjusted EBITDA |
$ |
1,625 |
|
|
$ |
4,354 |
|
|
$ |
5,906 |
|
|
$ |
8,698 |
|
i. |
Redwire incurred acquisition costs including due diligence, integration costs and additional expenses related to pre-acquisition activity. |
||
ii. |
Redwire recorded adjustments related to the impact of recognizing deferred revenue at fair value as part of the purchase accounting for previous acquisitions. |
||
iii. |
Redwire incurred severance costs related to separation agreements entered into with former employees. |
||
iv. |
Redwire incurred capital market and advisory fees related to advisors assisting with transitional activities associated with becoming a public company, such as implementation of internal controls over financial reporting, and the internalization of corporate services, including, but not limited to, implementing enhanced enterprise resource planning systems. |
||
v. |
Redwire incurred expenses related to securities litigation. |
||
vi. |
Redwire incurred expenses related to equity-based compensation under Redwire’s equity-based compensation plan. |
||
vii. |
Redwire incurred expenses related to the committed equity facility with B. Riley, which includes consideration paid to enter into the Purchase Agreement as well as changes in fair value recognized as a gain or loss during the respective periods. |
||
viii. |
Redwire incurred expenses related to debt financing agreements, including amendment related fees paid to third parties that are expensed in accordance with |
||
ix. |
Redwire recognized a gain related to the sale of all its ownership in two joint ventures, presented net of transaction costs incurred. |
||
x. |
Redwire adjusted the private warrant liability to reflect changes in fair value recognized as a gain or loss during the respective periods. |
||
xi. |
Pro forma impact is computed in a manner consistent with the concepts of Article 8 of Regulation S-X and represents the incremental results of a full period of operations assuming the entities acquired during the periods presented were acquired from January 1 of the year in which they occurred. |
||
REDWIRE CORPORATION
|
|||||||||||||||||||||||
Free Cash Flow |
|||||||||||||||||||||||
The following table presents the reconciliation of Free Cash Flow to Net cash provided by (used in) operating activities, computed in accordance with |
|||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|
Last Twelve Months |
||||||||||||||||||
(in thousands) |
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||||||
Net cash provided by (used in) operating activities |
$ |
(9,506 |
) |
|
$ |
2,844 |
|
|
$ |
(6,742 |
) |
|
$ |
(11,204 |
) |
|
$ |
5,693 |
|
|
$ |
(27,277 |
) |
Less: Capital expenditures |
|
(1,687 |
) |
|
|
(1,749 |
) |
|
|
(4,054 |
) |
|
|
(2,548 |
) |
|
|
(9,833 |
) |
|
|
(4,627 |
) |
Free Cash Flow |
$ |
(11,193 |
) |
|
$ |
1,095 |
|
|
$ |
(10,796 |
) |
|
$ |
(13,752 |
) |
|
$ |
(4,140 |
) |
|
$ |
(31,904 |
) |
REDWIRE CORPORATION
|
|||||||||||
Book-to-Bill |
|||||||||||
Our book-to-bill ratio was as follows for the periods presented: |
|||||||||||
|
Three Months Ended |
|
Last Twelve Months |
||||||||
(in thousands, except ratio) |
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||
Contracts awarded |
$ |
114,437 |
|
$ |
45,646 |
|
$ |
374,269 |
|
$ |
310,356 |
Revenues |
|
78,111 |
|
|
60,098 |
|
|
292,000 |
|
|
208,657 |
Book-to-bill ratio |
|
1.47 |
|
|
0.76 |
|
|
1.28 |
|
|
1.49 |
Book-to-bill is the ratio of total contracts awarded to revenues recorded in the same period. The contracts awarded balance includes firm contract orders, including time-and-material (“T&M”) contracts, awarded during the period and does not include unexercised contract options or potential orders under indefinite delivery/indefinite quantity contracts. Although the contracts awarded balance reflects firm contract orders, terminations, amendments, or contract cancellations may occur which could result in a reduction to the contracts awarded balance. |
|||||||||||
We view book-to-bill as an indicator of future revenue growth potential. To drive future revenue growth, our goal is for the level of contracts awarded in a given period to exceed the revenue recorded, thus yielding a book-to-bill ratio greater than 1.0. |
|||||||||||
Our book-to-bill ratio was 1.47 for the three months ended June 30, 2024, as compared to 0.76 for the three months ended June 30, 2023. For the three months ended June 30, 2024 and 2023, none of the contracts awarded balance relates to acquired contract value. |
|||||||||||
Our book-to-bill ratio was 1.28 for the LTM (“Last Twelve Months”) ended June 30, 2024, as compared to 1.49 for the LTM ended June 30, 2023. For the LTM ended June 30, 2024, none of the contracts awarded balance relates to acquired contract value. For the LTM ended June 30, 2023, contracts awarded includes |
|||||||||||
Backlog |
|||||||
The following table presents our contracted backlog as of June 30, 2024 and December 31, 2023, and related activity for the six months ended June 30, 2024 as compared to the year ended December 31, 2023. |
|||||||
(in thousands) |
June 30, 2024 |
|
December 31, 2023 |
||||
Organic backlog, beginning balance |
$ |
372,790 |
|
|
$ |
313,057 |
|
Organic additions during the period |
|
149,538 |
|
|
|
300,042 |
|
Organic revenue recognized during the period |
|
(165,903 |
) |
|
|
(243,800 |
) |
Foreign currency translation |
|
(2,081 |
) |
|
|
3,491 |
|
Organic backlog, ending balance |
|
354,344 |
|
|
|
372,790 |
|
|
|
|
|
||||
Acquisition-related contract value, beginning balance |
|
— |
|
|
|
— |
|
Acquisition-related backlog, ending balance |
|
— |
|
|
|
— |
|
Contracted backlog, ending balance |
$ |
354,344 |
|
|
$ |
372,790 |
|
We view growth in backlog as a key measure of our business growth. Contracted backlog represents the estimated dollar value of firm funded executed contracts for which work has not been performed (also known as the remaining performance obligations on a contract). Our contracted backlog includes |
|||||||
Organic backlog change excludes backlog activity from acquisitions for the first four full quarters since the entities’ acquisition date. Contracted backlog activity for the first four full quarters since the entities’ acquisition date is included in acquisition-related contracted backlog change. After the completion of four fiscal quarters, acquired entities are treated as organic for current and comparable historical periods. |
|||||||
Organic contract value includes the remaining contract value as of January 1 not yet recognized as revenue and additional orders awarded during the period for those entities treated as organic. Acquisition-related contract value includes remaining contract value as of the acquisition date not yet recognized as revenue and additional orders awarded during the period for entities not treated as organic. Organic revenue includes revenue earned during the period presented for those entities treated as organic, while acquisition-related revenue includes the same for all other entities, excluding any pre-acquisition revenue earned during the period. There is no acquisition-related backlog activity presented in the table above as all acquired entities have completed four fiscal quarters post-acquisition. |
|||||||
Although contracted backlog reflects business associated with contracts that are considered to be firm, terminations, amendments or contract cancellations may occur, which could result in a reduction in our total backlog. In addition, some of our multi-year contracts are subject to annual funding. Management expects all amounts reflected in contracted backlog to ultimately be fully funded. Contracted backlog from foreign operations in Luxembourg and |
|||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807927837/en/
Investor Relations Contact:
investorrelations@redwirespace.com
8226 Philips Highway, Suite 101
Source: Redwire Corporation
FAQ
What was Redwire's (RDW) revenue growth in Q2 2024?
How much was Redwire's (RDW) net loss in Q2 2024?
What was Redwire's (RDW) contracted backlog as of June 30, 2024?
What is Redwire's (RDW) revenue forecast for 2024?
