Redwire Corporation Reports Third Quarter 2024 Financial Results
Redwire (NYSE: RDW) reported Q3 2024 financial results with revenues increasing 9.6% year-over-year to $68.6 million. The company completed the acquisition of Hera Systems, expanding its spacecraft portfolio for national security missions. Contracted backlog grew 30.2% to $330.1 million, while total liquidity increased 98% to $61.1 million compared to the previous year. However, net loss widened to $(21.0) million, including an $8.0 million loss contingency related to a securities lawsuit. Adjusted EBITDA decreased to $2.4 million. The company affirmed its 2024 revenue forecast of $310 million.
Redwire (NYSE: RDW) ha riportato i risultati finanziari del terzo trimestre 2024, con un aumento dei ricavi del 9,6% anno su anno, raggiungendo 68,6 milioni di dollari. L'azienda ha completato l'acquisizione di Hera Systems, ampliando il suo portafoglio di veicoli spaziali per missioni di sicurezza nazionale. Il portafoglio contrattuale è cresciuto del 30,2%, raggiungendo 330,1 milioni di dollari, mentre la liquidità totale è aumentata del 98%, arrivando a 61,1 milioni di dollari rispetto all'anno precedente. Tuttavia, la perdita netta è aumentata a $(21,0) milioni, includendo una riserva di perdita di 8,0 milioni di dollari relativa a una causa per titoli. L'EBITDA rettificato è diminuito a 2,4 milioni di dollari. L'azienda ha confermato la previsione di ricavi per il 2024 di 310 milioni di dollari.
Redwire (NYSE: RDW) informó los resultados financieros del tercer trimestre de 2024, con un aumento del 9.6% en los ingresos interanuales, alcanzando $68.6 millones. La compañía completó la adquisición de Hera Systems, ampliando su cartera de naves espaciales para misiones de seguridad nacional. El backlog de contratos creció un 30.2%, alcanzando $330.1 millones, mientras que la liquidez total aumentó un 98%, llegando a 61.1 millones de dólares en comparación con el año anterior. Sin embargo, la pérdida neta se amplió a $(21.0) millones, incluyendo una contingencia de pérdida de 8.0 millones de dólares relacionada con una demanda de valores. El EBITDA ajustado disminuyó a 2.4 millones de dólares. La compañía reafirmó su previsión de ingresos para 2024 de 310 millones de dólares.
레드와이어 (NYSE: RDW)는 2024년 3분기 재무 결과를 보고했으며, 연간 수익이 9.6% 증가하여 6860만 달러에 달했습니다. 이 회사는 헤라 시스템을 인수하여 국가 안보 미션을 위한 우주선 포트폴리오를 확장했습니다. 계약 잔고는 30.2% 증가하여 3억 301만 달러에 이르렀으며, 총 유동성은 전년 대비 98% 증가하여 6110만 달러가 되었습니다. 그러나 순손실은 $(2100만) 달러로 확대되었으며, 이는 증권 소송과 관련된 800만 달러의 손실 충당금을 포함합니다. 조정된 EBITDA는 240만 달러로 감소했습니다. 회사는 2024년 매출 예측을 3억 1000만 달러로 affirmed했습니다.
Redwire (NYSE: RDW) a annoncé les résultats financiers du troisième trimestre 2024, avec des revenus en augmentation de 9,6% par rapport à l'année précédente, atteignant 68,6 millions de dollars. La société a finalisé l'acquisition de Hera Systems, élargissant ainsi son portefeuille de vaisseaux spatiaux pour les missions de sécurité nationale. Le carnet de commandes a crû de 30,2% pour atteindre 330,1 millions de dollars, tandis que la liquidité totale a augmenté de 98% pour atteindre 61,1 millions de dollars par rapport à l'année précédente. Cependant, la perte nette s'est élargie à $(21,0) millions, comprenant une provision pour perte de 8,0 millions de dollars liée à un procès en valeurs mobilières. L'EBITDA ajusté a diminué à 2,4 millions de dollars. L'entreprise a confirmé sa prévision de revenus pour 2024, fixée à 310 millions de dollars.
Redwire (NYSE: RDW) hat die finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben, mit einem Umsatzanstieg von 9,6% im Jahresvergleich auf 68,6 Millionen Dollar. Das Unternehmen hat die Übernahme von Hera Systems abgeschlossen und sein Raumfahrzeugportfolio für nationale Sicherheitsmissionen erweitert. Der Auftragsbestand wuchs um 30,2% auf 330,1 Millionen Dollar, während die Gesamtliquidität im Vergleich zum Vorjahr um 98% auf 61,1 Millionen Dollar stieg. Die Nettoverluste weiteten sich jedoch auf $(21,0) Millionen aus, einschließlich einer Verlustrückstellung von 8,0 Millionen Dollar, die im Zusammenhang mit einer Wertpapierklage steht. Das bereinigte EBITDA fiel auf 2,4 Millionen Dollar. Das Unternehmen bekräftigte seine Umsatzprognose für 2024 von 310 Millionen Dollar.
- Revenue increased 9.6% YoY to $68.6 million
- Contracted backlog grew 30.2% YoY to $330.1 million
- Total liquidity increased 98% YoY to $61.1 million
- Strategic acquisition of Hera Systems completed
- Bids submitted tripled YoY to $2.9 billion
- Net loss widened to $(21.0) million from $(6.3) million YoY
- Adjusted EBITDA decreased to $2.4 million from $4.9 million YoY
- $8.0 million loss contingency for securities lawsuit
- Book-to-Bill ratio declined to 1.25 from 1.38 YoY
- Negative Free Cash Flow of $(20.5) million
Insights
The Q3 results present a mixed financial picture. Revenue growth of
Key concerns include declining operational metrics: Adjusted EBITDA dropped to
The acquisition of Hera Systems strategically positions Redwire in the growing national security space sector. With
The
Revenues for the third quarter of 2024 increased
Completed acquisition of Hera Systems, a spacecraft development company; the acquisition expands Redwire’s spacecraft portfolio to support specialized national security missions
Contracted Backlog1 increased by
Total liquidity2 as of September 30, 2024 was
Net Loss for the third quarter of 2024 was
Redwire will live stream a presentation with slides on November 7, 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=NUi3LwfF
“Mergers and acquisitions are a core strength of Redwire and important to our growth strategy. During the third quarter, Redwire returned to our M&A roots by closing on the purchase of Hera Systems - our tenth acquisition. Hera Systems brings a highly competent team and two new platforms to Redwire’s spacecraft portfolio, expanding our ability to execute larger missions, particularly in our national security segment,” stated Peter Cannito, Chairman and Chief Executive Officer of Redwire. “The significant increase in bids submitted and backlog on a year-over-year basis indicates that our growth strategy is showing increasing potential.”
Third Quarter 2024 Highlights
-
Revenues for the third quarter of 2024 increased
9.6% to , as compared to$68.6 million for the third quarter of 2023.$62.6 million -
Net Loss for the third quarter of 2024 increased by
to$14.6 million , as compared to$(21.0) million for the third quarter of 2023. Net Loss for the third quarter of 2024 includes a loss contingency of$(6.3) million related to the Lemen v. Redwire Corp. securities lawsuit, of which there is no comparable cost for the third quarter of 2023.$8.0 million -
Adjusted EBITDA4 for the third quarter of 2024 decreased by
to$2.5 million , as compared to$2.4 million for the third quarter of 2023.$4.9 million - On a last twelve month (LTM) basis, Book-to-Bill5 ratio was 1.25 as of the third quarter of 2024, as compared to 1.38 as of the third quarter of 2023. On a quarterly basis, Book-to-Bill5 ratio was 0.65 as of the third quarter of 2024, as compared to 0.74 as of the third quarter of 2023.
-
Net cash used in operating activities for the third quarter of 2024 increased by
to$14.4 million , as compared to net cash used in operating activities of$(17.7) million for the third quarter of 2023.$(3.3) million -
Free Cash Flow4 for the third quarter of 2024 decreased by
to$14.5 million , as compared to$(20.5) million for the third quarter of 2023.$(5.9) million
2024 Forecast
-
For the full year ended December 31, 2024, Redwire affirms that it is forecasting revenues of
.$310 million
“Redwire continued its robust top line performance during the third quarter, with revenue for the nine months ended September 30, 2024 reaching
Webcast and Investor Call
Management will conduct a conference call starting at 9:00 a.m. ET on Thursday, November 7, 2024 to review financial results for the third quarter ended September 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=NUi3LwfF. The dial-in number for the live call is 800-715-9871 (toll free) or 646-307-1963 (toll), and the conference ID is 1891293.
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 13749718. The accompanying investor presentation will be available on November 7, 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 |
Contracted Backlog is a key business measure. Please refer to “Key Performance Indicators” and the tables included in this press release for additional information. |
2 |
Total liquidity of |
3 |
Adjusted EBITDA is not a measure of results under generally accepted accounting principles in |
4 |
Adjusted EBITDA and Free Cash Flow are not measures of results under generally accepted accounting principles in |
5 |
Book-to-bill and Backlog are a key business measures. 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 16 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 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 forecasts, 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 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. Free Cash Flow is computed as net cash provided by (used in) operating activities less capital expenditures.
We use 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.
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 CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited
(In thousands of |
|||||
|
September 30, 2024 |
|
December 31, 2023 |
||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash, cash equivalents and restricted cash |
$ |
43,094 |
|
$ |
30,278 |
Accounts receivable, net |
|
22,653 |
|
|
32,411 |
Contract assets |
|
46,069 |
|
|
36,961 |
Inventory |
|
2,055 |
|
|
1,516 |
Income tax receivable |
|
636 |
|
|
636 |
Prepaid insurance |
|
1,291 |
|
|
1,083 |
Prepaid expenses and other current assets |
|
10,738 |
|
|
6,428 |
Total current assets |
|
126,536 |
|
|
109,313 |
Property, plant and equipment, net of accumulated depreciation of |
|
16,929 |
|
|
15,909 |
Right-of-use assets |
|
10,668 |
|
|
13,181 |
Intangible assets, net of accumulated amortization of |
|
62,516 |
|
|
62,985 |
Goodwill |
|
72,572 |
|
|
65,757 |
Equity method investments |
|
— |
|
|
3,613 |
Other non-current assets |
|
724 |
|
|
511 |
Total assets |
$ |
289,945 |
|
$ |
271,269 |
|
|
|
|
||
Liabilities, Convertible Preferred Stock and Equity (Deficit) |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
19,936 |
|
$ |
18,573 |
Notes payable to sellers |
|
11 |
|
|
— |
Short-term debt, including current portion of long-term debt |
|
1,751 |
|
|
1,378 |
Short-term operating lease liabilities |
|
3,518 |
|
|
3,737 |
Short-term finance lease liabilities |
|
501 |
|
|
439 |
Accrued expenses |
|
27,813 |
|
|
32,902 |
Deferred revenue |
|
56,684 |
|
|
52,645 |
Other current liabilities |
|
20,807 |
|
|
2,362 |
Total current liabilities |
|
131,021 |
|
|
112,036 |
Long-term debt, net |
|
121,553 |
|
|
86,842 |
Long-term operating lease liabilities |
|
9,790 |
|
|
12,302 |
Long-term finance lease liabilities |
|
1,089 |
|
|
1,137 |
Warrant liabilities |
|
11,436 |
|
|
3,325 |
Deferred tax liabilities |
|
2,379 |
|
|
2,402 |
Other non-current liabilities |
|
401 |
|
|
400 |
Total liabilities |
$ |
277,669 |
|
$ |
218,444 |
REDWIRE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited
(In thousands of |
|||||||
|
|
|
|
||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
Convertible preferred stock, |
$ |
108,696 |
|
|
$ |
96,106 |
|
|
|
|
|
||||
Shareholders’ Equity (Deficit): |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
7 |
|
|
|
7 |
|
Treasury stock, 614,654 and 353,470 shares, at cost, as of September 30, 2024 and December 31, 2023, respectively |
|
(2,688 |
) |
|
|
(951 |
) |
Additional paid-in capital |
|
184,325 |
|
|
|
188,323 |
|
Accumulated deficit |
|
(280,937 |
) |
|
|
(233,791 |
) |
Accumulated other comprehensive income (loss) |
|
2,873 |
|
|
|
2,903 |
|
Total shareholders’ equity (deficit) |
|
(96,420 |
) |
|
|
(43,509 |
) |
Noncontrolling interests |
|
— |
|
|
|
228 |
|
Total equity (deficit) |
|
(96,420 |
) |
|
|
(43,281 |
) |
Total liabilities, convertible preferred stock and equity (deficit) |
$ |
289,945 |
|
|
$ |
271,269 |
|
REDWIRE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Unaudited
(In thousands of |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
||||||||
Revenues |
$ |
68,638 |
|
|
$ |
62,612 |
|
|
$ |
234,541 |
|
|
$ |
180,315 |
|
Cost of sales |
|
56,615 |
|
|
|
45,495 |
|
|
|
194,709 |
|
|
|
133,077 |
|
Gross profit |
|
12,023 |
|
|
|
17,117 |
|
|
|
39,832 |
|
|
|
47,238 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses |
|
17,521 |
|
|
|
18,302 |
|
|
|
52,971 |
|
|
|
52,026 |
|
Transaction expenses |
|
5,121 |
|
|
|
— |
|
|
|
5,399 |
|
|
|
13 |
|
Research and development |
|
1,893 |
|
|
|
1,532 |
|
|
|
4,681 |
|
|
|
3,990 |
|
Operating income (loss) |
|
(12,512 |
) |
|
|
(2,717 |
) |
|
|
(23,219 |
) |
|
|
(8,791 |
) |
Interest expense, net |
|
3,610 |
|
|
|
2,629 |
|
|
|
9,537 |
|
|
|
7,937 |
|
Other (income) expense, net |
|
5,309 |
|
|
|
1,232 |
|
|
|
14,734 |
|
|
|
2,689 |
|
Income (loss) before income taxes |
|
(21,431 |
) |
|
|
(6,578 |
) |
|
|
(47,490 |
) |
|
|
(19,417 |
) |
Income tax expense (benefit) |
|
(472 |
) |
|
|
(253 |
) |
|
|
(348 |
) |
|
|
(369 |
) |
Net income (loss) |
|
(20,959 |
) |
|
|
(6,325 |
) |
|
|
(47,142 |
) |
|
|
(19,048 |
) |
Net income (loss) attributable to noncontrolling interests |
|
— |
|
|
|
(72 |
) |
|
|
4 |
|
|
|
(73 |
) |
Net income (loss) attributable to Redwire Corporation |
|
(20,959 |
) |
|
|
(6,253 |
) |
|
|
(47,146 |
) |
|
|
(18,975 |
) |
Less: dividends on Convertible Preferred Stock |
|
3,383 |
|
|
|
2,874 |
|
|
|
16,125 |
|
|
|
12,040 |
|
Net income (loss) available to common shareholders |
$ |
(24,342 |
) |
|
$ |
(9,127 |
) |
|
$ |
(63,271 |
) |
|
$ |
(31,015 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
$ |
(0.37 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.96 |
) |
|
$ |
(0.48 |
) |
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
66,529,288 |
|
|
|
64,795,985 |
|
|
|
65,936,597 |
|
|
|
64,475,390 |
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income (loss): |
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Redwire Corporation |
$ |
(20,959 |
) |
|
$ |
(6,253 |
) |
|
$ |
(47,146 |
) |
|
$ |
(18,975 |
) |
Foreign currency translation gain (loss), net of tax |
|
877 |
|
|
|
(860 |
) |
|
|
127 |
|
|
|
(304 |
) |
Total other comprehensive income (loss), net of tax |
|
877 |
|
|
|
(860 |
) |
|
|
127 |
|
|
|
(304 |
) |
Total comprehensive income (loss) |
$ |
(20,082 |
) |
|
$ |
(7,113 |
) |
|
$ |
(47,019 |
) |
|
$ |
(19,279 |
) |
REDWIRE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited
(In thousands of |
|||||||
|
Nine Months Ended |
||||||
|
September 30, 2024 |
|
September 30, 2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
(47,142 |
) |
|
$ |
(19,048 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
8,538 |
|
|
|
7,971 |
|
Amortization of debt issuance costs and discount |
|
584 |
|
|
|
448 |
|
Equity-based compensation expense |
|
8,046 |
|
|
|
6,317 |
|
(Gain) loss on sale of joint ventures |
|
(1,303 |
) |
|
|
— |
|
(Gain) loss on change in fair value of committed equity facility |
|
— |
|
|
|
179 |
|
(Gain) loss on change in fair value of warrants |
|
8,111 |
|
|
|
2,475 |
|
Deferred provision (benefit) for income taxes |
|
(47 |
) |
|
|
(1,012 |
) |
Non-cash lease expense |
|
23 |
|
|
|
248 |
|
Non-cash interest expense |
|
— |
|
|
|
525 |
|
Other |
|
(74 |
) |
|
|
157 |
|
Changes in assets and liabilities: |
|
|
|
||||
(Increase) decrease in accounts receivable |
|
14,496 |
|
|
|
2,031 |
|
(Increase) decrease in contract assets |
|
(8,754 |
) |
|
|
(9,008 |
) |
(Increase) decrease in inventory |
|
(537 |
) |
|
|
(221 |
) |
(Increase) decrease in prepaid insurance |
|
(208 |
) |
|
|
936 |
|
(Increase) decrease in prepaid expenses and other assets |
|
(4,039 |
) |
|
|
255 |
|
Increase (decrease) in accounts payable and accrued expenses |
|
(4,964 |
) |
|
|
(2,202 |
) |
Increase (decrease) in deferred revenue |
|
(7,448 |
) |
|
|
(2,734 |
) |
Increase (decrease) in operating lease liabilities |
|
(256 |
) |
|
|
(241 |
) |
Increase (decrease) in other liabilities |
|
10,551 |
|
|
|
(979 |
) |
Increase (decrease) in notes payable to sellers |
|
11 |
|
|
|
(557 |
) |
Net cash provided by (used in) operating activities |
|
(24,412 |
) |
|
|
(14,460 |
) |
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Acquisition of businesses, net of cash acquired |
|
(796 |
) |
|
|
— |
|
Net proceeds from sale of joint ventures |
|
4,598 |
|
|
|
— |
|
Purchases of property, plant and equipment, net |
|
(4,064 |
) |
|
|
(3,524 |
) |
Purchase of intangible assets |
|
(2,788 |
) |
|
|
(1,690 |
) |
Net cash provided by (used in) investing activities |
|
(3,050 |
) |
|
|
(5,214 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Proceeds received from debt |
|
42,971 |
|
|
|
23,696 |
|
Repayments of debt |
|
(8,183 |
) |
|
|
(19,890 |
) |
Payment of debt issuance fees to third parties |
|
(780 |
) |
|
|
— |
|
Repayment of finance leases |
|
(357 |
) |
|
|
(282 |
) |
Proceeds from third-party advances |
|
7,820 |
|
|
|
— |
|
Proceeds from issuance of common stock |
|
546 |
|
|
|
84 |
|
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 |
|
(1,737 |
) |
|
|
(248 |
) |
Payment of contingent earnout |
|
— |
|
|
|
(443 |
) |
Net cash provided by (used in) financing activities |
|
40,280 |
|
|
|
2,294 |
|
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash |
|
(2 |
) |
|
|
(77 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
12,816 |
|
|
|
(17,457 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
30,278 |
|
|
|
28,316 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
43,094 |
|
|
$ |
10,859 |
|
REDWIRE CORPORATION Supplemental Non-GAAP Information Unaudited
Adjusted EBITDA
During the third quarter of 2024, we changed the Supplemental Non-GAAP Information to present only Adjusted EBITDA, whereas prior period disclosures also presented Pro Forma Adjusted EBITDA. Management believes the presentation of Pro Forma Adjusted EBITDA no longer provides the same meaningful insights into the Company’s performance as it did during the initial years of the Company’s formation. Prior period disclosures were recast to conform to current presentation. There was no change in the calculation of Adjusted EBITDA.
The following table presents the reconciliations of Adjusted EBITDA to net income (loss), computed in accordance with |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(in thousands) |
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
||||||||
Net income (loss) |
$ |
(20,959 |
) |
|
$ |
(6,325 |
) |
|
$ |
(47,142 |
) |
|
$ |
(19,048 |
) |
Interest expense, net |
|
3,610 |
|
|
|
2,629 |
|
|
|
9,537 |
|
|
|
7,937 |
|
Income tax expense (benefit) |
|
(472 |
) |
|
|
(253 |
) |
|
|
(348 |
) |
|
|
(369 |
) |
Depreciation and amortization |
|
2,860 |
|
|
|
2,887 |
|
|
|
8,538 |
|
|
|
7,971 |
|
Acquisition deal costs (i) |
|
5,121 |
|
|
|
— |
|
|
|
5,399 |
|
|
|
13 |
|
Acquisition integration costs (i) |
|
96 |
|
|
|
— |
|
|
|
96 |
|
|
|
546 |
|
Purchase accounting fair value adjustment related to deferred revenue (ii) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
Severance costs (iii) |
|
365 |
|
|
|
62 |
|
|
|
532 |
|
|
|
382 |
|
Capital market and advisory fees (iv) |
|
1,071 |
|
|
|
2,536 |
|
|
|
5,503 |
|
|
|
6,891 |
|
Litigation-related expenses (v) |
|
9,096 |
|
|
|
249 |
|
|
|
11,329 |
|
|
|
317 |
|
Equity-based compensation (vi) |
|
3,593 |
|
|
|
2,451 |
|
|
|
8,046 |
|
|
|
6,317 |
|
Committed equity facility transaction costs (vii) |
|
— |
|
|
|
245 |
|
|
|
— |
|
|
|
179 |
|
Debt financing costs (viii) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17 |
|
Gain on sale of joint ventures, net of costs incurred (ix) |
|
— |
|
|
|
— |
|
|
|
(1,255 |
) |
|
|
— |
|
Warrant liability change in fair value adjustment (x) |
|
(1,941 |
) |
|
|
464 |
|
|
|
8,111 |
|
|
|
2,475 |
|
Adjusted EBITDA |
$ |
2,440 |
|
|
$ |
4,945 |
|
|
$ |
8,346 |
|
|
$ |
13,643 |
|
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, including a loss contingency of |
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. |
REDWIRE CORPORATION Supplemental Non-GAAP Information Unaudited
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 |
|
Nine Months Ended |
|
Last Twelve Months |
||||||||||||||||||
(in thousands) |
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
||||||||||||
Net cash provided by (used in) operating activities |
$ |
(17,670 |
) |
|
$ |
(3,256 |
) |
|
$ |
(24,412 |
) |
|
$ |
(14,460 |
) |
|
$ |
(8,721 |
) |
|
$ |
(19,288 |
) |
Less: Capital expenditures |
|
(2,798 |
) |
|
|
(2,666 |
) |
|
|
(6,852 |
) |
|
|
(5,214 |
) |
|
|
(9,965 |
) |
|
|
(5,934 |
) |
Free Cash Flow |
$ |
(20,468 |
) |
|
$ |
(5,922 |
) |
|
$ |
(31,264 |
) |
|
$ |
(19,674 |
) |
|
$ |
(18,686 |
) |
|
$ |
(25,222 |
) |
REDWIRE CORPORATION KEY PERFORMANCE INDICATORS Unaudited
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) |
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
||||
Contracts awarded |
$ |
44,503 |
|
$ |
46,523 |
|
$ |
372,249 |
|
$ |
322,837 |
Revenues |
|
68,638 |
|
|
62,612 |
|
|
298,026 |
|
|
234,020 |
Book-to-bill ratio |
|
0.65 |
|
|
0.74 |
|
|
1.25 |
|
|
1.38 |
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 0.65 for the three months ended September 30, 2024, as compared to 0.74 for the three months ended September 30, 2023. For the three months ended September 30, 2024, contracts awarded includes
Our book-to-bill ratio was 1.25 for the LTM (“Last Twelve Months”) ended September 30, 2024, as compared to 1.38 for the LTM ended September 30, 2023. For the LTM ended September 30, 2024, contracts awarded includes
Backlog
The following table presents our contracted backlog as of September 30, 2024 and December 31, 2023, and related activity for the nine months ended September 30, 2024 as compared to the year ended December 31, 2023.
(in thousands) |
September 30, 2024 |
|
December 31, 2023 |
||||
Organic backlog, beginning balance |
$ |
372,790 |
|
|
$ |
313,057 |
|
Organic additions during the period |
|
172,101 |
|
|
|
300,042 |
|
Organic revenue recognized during the period |
|
(232,697 |
) |
|
|
(243,800 |
) |
Foreign currency translation |
|
(2,229 |
) |
|
|
3,491 |
|
Organic backlog, ending balance |
|
309,965 |
|
|
|
372,790 |
|
|
|
|
|
||||
Acquisition-related contract value, beginning balance |
|
— |
|
|
|
— |
|
Acquisition-related contract value acquired during the period |
|
21,940 |
|
|
|
— |
|
Acquisition-related additions during the period |
|
— |
|
|
|
— |
|
Acquisition-related revenue recognized during the period |
|
(1,844 |
) |
|
|
— |
|
Acquisition-related backlog, ending balance |
|
20,096 |
|
|
|
— |
|
Contracted backlog, ending balance |
$ |
330,061 |
|
|
$ |
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. The acquisition-related backlog activity presented in the table above is related to the Hera Systems acquisition completed during third quarter of 2024.
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/20241106021260/en/
Investor Relations Contact:
investorrelations@redwirespace.com
Source: Redwire Corporation
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