Redwire Corporation Reports First Quarter 2025 Financial Results
In January 2025, announced agreement to acquire Edge Autonomy; subsequently announced receipt of all regulatory approvals for the transaction
Awarded contract from Thales Alenia Space to provide International Berthing and Docking Mechanism for Lunar I-Hab module
Awarded NASA contract to launch four additional pharmaceutical drug investigations to the International Space Station using PIL-BOX
Significant year-over-year and sequential increase in Book-to-Bill1 ratio to 0.92 as of the first quarter of 2025
Revenues for the first quarter of 2025 were
Redwire will live stream a presentation with slides on May 12, 2025 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=4F31SXFe
“Bookings increased significantly compared to Q4 2024, with key wins coming from the European market; however, there were notable delays in awards in the
| ____________________ |
1 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. |
2 Adjusted EBITDA is not a measure of results under generally accepted accounting principles in |
3 Total liquidity of |
First Quarter 2025 Highlights
-
Revenues for the first quarter of 2025 decreased
30.1% to$61.4 million $87.8 million -
Net Loss for the first quarter of 2025 decreased by
$5.1 million $(2.9) million $(8.1) million -
Adjusted EBITDA4 for the first quarter of 2025 decreased by
$6.5 million $(2.3) million $4.3 million -
During the first quarter of 2025, the Company had net unfavorable EAC changes of
$3.1 million - On a quarterly basis, Book-to-Bill5 ratio was 0.92 as of the first quarter of 2025, as compared to 0.40 as of the first quarter of 2024.
-
Net cash used in operating activities for the first quarter of 2025 increased by
$47.8 million $(45.1) million $2.8 million $8.0 million $3.4 million -
Free Cash Flow4 for the first quarter of 2025 was
$(49.1) million $0.4 million
2025 Forecast
-
For the twelve months ended December 31, 2025, Redwire, as a combined company assuming the previously announced transaction with Edge Autonomy had been consummated on January 1, 2025, is forecasting full year revenues6 of
$535 million $605 million $70 million $105 million
“Redwire drove significant sequential and year-over-year improvements in Book-to-Bill5 ratio to 0.92 during the first quarter of 2025,” said Jonathan Baliff, Chief Financial Officer of Redwire. “Additionally, we achieved record levels of cash and total liquidity7 of
| ____________________ |
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. |
6 These amounts are the sum of the standalone full year forecasts for the Redwire and Edge Autonomy businesses by Redwire management. Please refer to “Use of Projections” included in this press release for additional information. |
7 Total liquidity of |
Webcast and Investor Call
Management will conduct a conference call starting at 9:00 a.m. ET on Monday, May 12, 2025 to review financial results for the first quarter ended March 31, 2025. 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=4F31SXFe. The dial-in number for the live call is 877-485-3108 (toll free) or 201-689-8264 (toll), and the conference ID is 13753501.
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 13753501. The accompanying investor presentation will be available on May 12, 2025 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.
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 750 employees working from 17 facilities located throughout
No Solicitation
This press release is not intended to and does not constitute the solicitation of a vote with respect to any matter subject to the vote of Redwire’s stockholders, which solicitation is made solely pursuant to a definitive proxy statement, nor does it constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities in any jurisdiction.
Use of Data
Industry and market data used in this press release have been obtained from third-party industry publications and sources, as well as from research reports prepared for other purposes. Neither Redwire nor Edge Autonomy have independently verified the data obtained from these sources and cannot assure you of the data’s accuracy or completeness. This data is subject to change. Statements other than historical facts, including, but not limited to, those concerning market conditions or trends, consumer or customer preferences or other similar concepts with respect to Redwire, Edge Autonomy and the expected combined company, are based on current expectations, estimates, projections, targets, opinions and/or beliefs of Redwire or, when applicable, of one or more third-party sources. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. In addition, no representation or warranty is made with respect to the reasonableness of any estimates, forecasts, illustrations, prospects or returns, which should be regarded as illustrative only, or that any profits will be realized. The metrics regarding select aspects of Redwire’s, Edge Autonomy’s and the expected combined company’s operations were selected by Redwire or its subsidiaries on a subjective basis. Such metrics are provided solely for illustrative purposes to demonstrate elements of Redwire's businesses, are incomplete, and are not necessarily indicative of Redwire’s, Edge Autonomy’s or their subsidiaries’ performance or overall operations. There can be no assurance that historical trends will continue.
Use of Projections
The financial outlook and projections, estimates and targets in this press release are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainty and contingencies, many of which are beyond Redwire’s or Edge Autonomy’s control. Such calculation cannot be predicted with reasonable certainty and without unreasonable effort because of the timing, magnitude and variables associated with the completion of the proposed merger with Edge Autonomy. Additionally, any such calculation, at this time, would imply a degree of precision that could be confusing or misleading to investors. Neither Redwire nor Edge Autonomy’s independent auditors have audited, reviewed, compiled or performed any procedures with respect to the financial projections for purposes of inclusion in this press release, and, accordingly, they did not express an opinion or provide any other form of assurance with respect thereto for the purposes of this press release. While all financial projections, estimates and targets are necessarily speculative, Redwire believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection, estimate or target extends from the date of preparation. The assumptions and estimates underlying the projected, expected or target results for Redwire, Edge Autonomy and the combined company are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial projections, estimates and targets. The inclusion of financial projections, estimates and targets in this press release should not be regarded as an indication that Redwire, or its representatives, considered or consider the financial projections, estimates or targets to be a reliable prediction of future events. Further, inclusion of the prospective financial information in this press release should not be regarded as a representation by any person that the results contained in the prospective financial information will be achieved.
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 or the combined company’s 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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included or incorporated in this press release, including statements regarding our or the combined company’s strategy, financial projections, including the prospective financial information provided in this press release, financial position, funding for continued operations, cash reserves, liquidity, projected costs, plans, projects, awards and contracts, and objectives of management, the entry into the potential business combination with Edge Autonomy (the “Transaction”), the expected benefits from the proposed business combination, the expected performance of the combined company, the expectations regarding financing the proposed business combination, among others, are forward-looking statements. Words such as “expect,” “anticipate,” “should,” “believe,” “target,” “continued,” “project,” “plan,” “opportunity,” “estimate,” “potential,” “predict,” “demonstrates,” “may,” “will,” “could,” “intend,” “shall,” “possible,” “forecast,” “trends,” “contemplate,” “would,” “approximately,” “likely,” “outlook,” “schedule,” “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, effects of trade tariffs and other trade actions, supply chain challenges, labor shortages, increased labor costs, 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) Redwire’s limited operating history and history of losses to date as well as the limited operating history of Edge Autonomy and the relatively novel nature of the drone industry; (4) the inability to successfully integrate recently completed and future acquisitions, including the proposed business combination with Edge Autonomy, as well as the failure to realize the anticipated benefits of the Transaction or to realize estimated projected combined company results; (5) the development and continued refinement of many of Redwire’s and the combined company’s proprietary technologies, products and service offerings; (6) competition with new or existing companies; (7) the possibility that Redwire’s expectations and assumptions relating to future results and projections with respect to Redwire or Edge Autonomy may prove incorrect; (8) adverse publicity stemming from any incident or perceived risk involving Redwire, Edge Autonomy, the combined company, or their competitors; (9) unsatisfactory performance of our and the combined company’s products resulting from challenges in the space environment, extreme space weather events, the environments in which drones operate, including in combat or other areas where hostilities may occur, or otherwise; (10) the emerging nature of the market for in-space infrastructure services and the market for drones and related services; (11) inability to realize benefits from new offerings or the application of our or the combined company’s technologies; (12) the inability to convert orders in backlog into revenue; (13) our and the combined company’s dependence on
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 forecasted Adjusted EBITDA and Free Cash Flow for Redwire assuming completion of the acquisition of Edge Autonomy. Certain financial metrics for the Redwire and Edge Autonomy businesses by Redwire management have not been calculated pursuant to Article 11 of Regulation S-X. Such calculation cannot be predicted with reasonable certainty and without unreasonable effort because of the timing, magnitude and variables associated with the completion of the proposed merger with Edge Autonomy. Additionally, any such calculation, at this time, would imply a degree of precision that could be confusing or misleading to investors. Further, we are unable to provide reconciliations to forward-looking Adjusted EBITDA and Free Cash Flow because we are unable to provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. This is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Thus, we are unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to the most closely comparable forward-looking
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, transaction expenses, 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, equity-based compensation, committed equity facility transaction costs, debt financing costs, gains on sale of joint ventures, 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 |
|||||||
|
March 31, 2025 |
|
December 31, 2024 |
||||
Current assets: |
|
|
|
||||
Cash, cash equivalents and restricted cash |
$ |
54,221 |
|
|
$ |
49,071 |
|
Accounts receivable, net |
|
15,247 |
|
|
|
21,905 |
|
Contract assets |
|
60,757 |
|
|
|
43,044 |
|
Inventory |
|
2,192 |
|
|
|
2,239 |
|
Prepaid expenses and other current assets |
|
9,718 |
|
|
|
9,666 |
|
Total current assets |
|
142,135 |
|
|
|
125,925 |
|
Property, plant and equipment, net of accumulated depreciation of |
|
18,759 |
|
|
|
17,837 |
|
Right-of-use assets |
|
16,070 |
|
|
|
15,277 |
|
Intangible assets, net of accumulated amortization of |
|
62,070 |
|
|
|
61,788 |
|
Goodwill |
|
71,996 |
|
|
|
71,161 |
|
Other non-current assets |
|
3,069 |
|
|
|
629 |
|
Total assets |
$ |
314,099 |
|
|
$ |
292,617 |
|
Liabilities, Convertible Preferred Stock and Equity (Deficit) |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
28,179 |
|
|
$ |
32,127 |
|
Short-term debt, including current portion of long-term debt |
|
780 |
|
|
|
1,266 |
|
Short-term operating lease liabilities |
|
4,481 |
|
|
|
4,354 |
|
Short-term finance lease liabilities |
|
496 |
|
|
|
473 |
|
Accrued expenses |
|
19,825 |
|
|
|
24,192 |
|
Deferred revenue |
|
59,748 |
|
|
|
67,201 |
|
Other current liabilities |
|
5,033 |
|
|
|
19,730 |
|
Total current liabilities |
|
118,542 |
|
|
|
149,343 |
|
Long-term debt, net |
|
104,375 |
|
|
|
124,464 |
|
Long-term operating lease liabilities |
|
14,267 |
|
|
|
13,444 |
|
Long-term finance lease liabilities |
|
1,006 |
|
|
|
980 |
|
Warrant liabilities |
|
6,688 |
|
|
|
55,285 |
|
Deferred tax liabilities |
|
615 |
|
|
|
582 |
|
Other non-current liabilities |
|
1,936 |
|
|
|
428 |
|
Total liabilities |
$ |
247,429 |
|
|
$ |
344,526 |
|
|
|
|
|
||||
Convertible preferred stock, |
$ |
134,734 |
|
|
$ |
136,805 |
|
Shareholders’ Equity (Deficit): |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
8 |
|
|
|
7 |
|
Treasury stock, 2025 and 2024—728,739 shares, at cost |
|
(3,573 |
) |
|
|
(3,573 |
) |
Additional paid-in capital |
|
284,381 |
|
|
|
161,619 |
|
Accumulated deficit |
|
(351,054 |
) |
|
|
(348,106 |
) |
Accumulated other comprehensive income (loss) |
|
2,174 |
|
|
|
1,339 |
|
Total shareholders’ equity (deficit) |
|
(68,064 |
) |
|
|
(188,714 |
) |
Total liabilities, convertible preferred stock and equity (deficit) |
$ |
314,099 |
|
|
$ |
292,617 |
|
REDWIRE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Unaudited
(In thousands of |
|||||||
|
Three Months Ended |
||||||
|
March 31, 2025 |
|
March 31, 2024 |
||||
Revenues |
$ |
61,395 |
|
|
$ |
87,792 |
|
Cost of sales |
|
52,354 |
|
|
|
72,967 |
|
Gross profit |
|
9,041 |
|
|
|
14,825 |
|
Operating expenses: |
|
|
|
||||
Selling, general and administrative expenses |
|
18,746 |
|
|
|
17,362 |
|
Transaction expenses |
|
3,799 |
|
|
|
— |
|
Research and development |
|
813 |
|
|
|
1,040 |
|
Operating income (loss) |
|
(14,317 |
) |
|
|
(3,577 |
) |
Interest expense, net |
|
3,594 |
|
|
|
2,918 |
|
Other (income) expense, net |
|
(14,781 |
) |
|
|
1,492 |
|
Income (loss) before income taxes |
|
(3,130 |
) |
|
|
(7,987 |
) |
Income tax expense (benefit) |
|
(182 |
) |
|
|
109 |
|
Net income (loss) |
|
(2,948 |
) |
|
|
(8,096 |
) |
Net income (loss) attributable to noncontrolling interests |
|
— |
|
|
|
(1 |
) |
Net income (loss) attributable to Redwire Corporation |
|
(2,948 |
) |
|
|
(8,095 |
) |
Less: dividends on Convertible Preferred Stock |
|
3,531 |
|
|
|
3,043 |
|
Net income (loss) available to common shareholders |
$ |
(6,479 |
) |
|
$ |
(11,138 |
) |
|
|
|
|
||||
Net income (loss) per common share: |
|
|
|
||||
Basic and diluted |
$ |
(0.09 |
) |
|
$ |
(0.17 |
) |
Weighted-average shares outstanding: |
|
|
|
||||
Basic and diluted |
|
71,192,148 |
|
|
|
65,572,286 |
|
|
|
|
|
||||
Comprehensive income (loss): |
|
|
|
||||
Net income (loss) attributable to Redwire Corporation |
$ |
(2,948 |
) |
|
$ |
(8,095 |
) |
Foreign currency translation gain (loss), net of tax |
|
835 |
|
|
|
(672 |
) |
Total other comprehensive income (loss), net of tax |
|
835 |
|
|
|
(672 |
) |
Total comprehensive income (loss) |
$ |
(2,113 |
) |
|
$ |
(8,767 |
) |
|
|
|
|
||||
REDWIRE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited
(In thousands of |
|||||||
|
Three Months Ended |
||||||
|
March 31, 2025 |
|
March 31, 2024 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
(2,948 |
) |
|
$ |
(8,096 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
3,046 |
|
|
|
2,753 |
|
Amortization of debt issuance costs and discount |
|
273 |
|
|
|
170 |
|
Equity-based compensation expense |
|
2,912 |
|
|
|
2,535 |
|
(Gain) loss on change in fair value of warrants |
|
(13,634 |
) |
|
|
1,075 |
|
Deferred provision (benefit) for income taxes |
|
80 |
|
|
|
98 |
|
Non-cash lease expense |
|
73 |
|
|
|
12 |
|
Other |
|
(1,016 |
) |
|
|
397 |
|
Changes in assets and liabilities: |
|
|
|
||||
(Increase) decrease in accounts receivable |
|
6,853 |
|
|
|
13,174 |
|
(Increase) decrease in contract assets |
|
(16,845 |
) |
|
|
(2,981 |
) |
(Increase) decrease in inventory |
|
55 |
|
|
|
(100 |
) |
(Increase) decrease in prepaid expenses and other assets |
|
(2,658 |
) |
|
|
823 |
|
Increase (decrease) in accounts payable and accrued expenses |
|
(8,192 |
) |
|
|
7,929 |
|
Increase (decrease) in deferred revenue |
|
(7,590 |
) |
|
|
(15,413 |
) |
Increase (decrease) in operating lease liabilities |
|
(10 |
) |
|
|
(84 |
) |
Increase (decrease) in other liabilities |
|
(5,480 |
) |
|
|
472 |
|
Net cash provided by (used in) operating activities |
|
(45,081 |
) |
|
|
2,764 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Purchases of property, plant and equipment |
|
(1,790 |
) |
|
|
(1,561 |
) |
Purchase of intangible assets |
|
(2,265 |
) |
|
|
(806 |
) |
Net cash provided by (used in) investing activities |
|
(4,055 |
) |
|
|
(2,367 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Proceeds received from debt |
|
5,000 |
|
|
|
5,000 |
|
Repayments of debt |
|
(25,681 |
) |
|
|
(2,793 |
) |
Repayment of finance leases |
|
(126 |
) |
|
|
(119 |
) |
Repayments of third-party advances |
|
(7,820 |
) |
|
|
— |
|
Proceeds from issuance of common stock for warrants exercised |
|
82,862 |
|
|
|
— |
|
Payment of equity issuance costs |
|
(45 |
) |
|
|
— |
|
Shares repurchased for settlement of employee tax withholdings on share-based awards |
|
— |
|
|
|
(56 |
) |
Net cash provided by (used in) financing activities |
|
54,190 |
|
|
|
2,032 |
|
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash |
|
96 |
|
|
|
(138 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
5,150 |
|
|
|
2,291 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
49,071 |
|
|
|
30,278 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
54,221 |
|
|
$ |
32,569 |
|
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 |
||||||
(in thousands) |
March 31, 2025 |
|
March 31, 2024 |
||||
Net income (loss) |
$ |
(2,948 |
) |
|
$ |
(8,096 |
) |
Interest expense, net |
|
3,594 |
|
|
|
2,918 |
|
Income tax expense (benefit) |
|
(182 |
) |
|
|
109 |
|
Depreciation and amortization |
|
3,046 |
|
|
|
2,753 |
|
Transaction expenses (i) |
|
3,799 |
|
|
|
— |
|
Severance costs (ii) |
|
177 |
|
|
|
8 |
|
Capital market and advisory fees (iii) |
|
968 |
|
|
|
2,278 |
|
Litigation-related expenses (iv) |
|
— |
|
|
|
701 |
|
Equity-based compensation (v) |
|
2,912 |
|
|
|
2,535 |
|
Warrant liability change in fair value adjustment (vi) |
|
(13,634 |
) |
|
|
1,075 |
|
Adjusted EBITDA |
$ |
(2,268 |
) |
|
$ |
4,281 |
|
i. |
Redwire incurred acquisition costs including due diligence, integration costs and additional expenses related to pre-acquisition activity. Acquisition deal costs was reclassified as Transaction expenses to conform with current period presentation. |
ii. |
Redwire incurred severance costs related to separation agreements entered into with former employees. |
iii. |
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. |
iv. |
Redwire incurred expenses related to securities litigation. |
v. |
Redwire incurred expenses related to equity-based compensation under Redwire’s equity-based compensation plan. |
vi. |
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 |
||||||
(in thousands) |
March 31, 2025 |
|
March 31, 2024 |
||||
Net cash provided by (used in) operating activities |
$ |
(45,081 |
) |
|
$ |
2,764 |
|
Less: Capital expenditures |
|
(4,055 |
) |
|
|
(2,367 |
) |
Free Cash Flow |
$ |
(49,136 |
) |
|
$ |
397 |
|
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) |
March 31, 2025 |
|
March 31, 2024 |
|
March 31, 2025 |
|
March 31, 2024 |
||||||||
Contracts awarded |
$ |
56,244 |
|
$ |
35,101 |
|
$ |
250,932 |
|
$ |
305,478 |
||||
Revenues |
|
61,395 |
|
|
87,792 |
|
|
277,704 |
|
|
273,987 |
||||
Book-to-bill ratio |
|
0.92 |
|
|
0.40 |
|
|
0.90 |
|
|
1.11 |
||||
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 0.92 for the three months ended March 31, 2025, as compared to 0.40 for the three months ended March 31, 2024. For the three months ended March 31, 2025 and 2024, none of the contracts awarded balance relates to acquired contract value. |
|||||||||||||||
|
|||||||||||||||
Our book-to-bill ratio was 0.90 for the Last Twelve Months (“LTM”) ended March 31, 2025, as compared to 1.11 for the LTM ended March 31, 2024. For the LTM ended March 31, 2025, contracts awarded includes |
|||||||||||||||
Backlog |
|||||||
|
|||||||
The following table presents our contracted backlog as of March 31, 2025 and December 31, 2024, and related activity for the three months ended March 31, 2025 as compared to the year ended December 31, 2024. |
|||||||
(in thousands) |
March 31, 2025 |
|
December 31, 2024 |
||||
Organic backlog, beginning balance |
$ |
280,969 |
|
|
$ |
372,790 |
|
Organic additions during the period |
|
56,244 |
|
|
|
207,704 |
|
Organic revenue recognized during the period |
|
(57,568 |
) |
|
|
(297,699 |
) |
Foreign currency translation |
|
(282 |
) |
|
|
(1,826 |
) |
Organic backlog, ending balance |
|
279,363 |
|
|
|
280,969 |
|
|
|
|
|
||||
Acquisition-related contract value, beginning balance |
|
15,683 |
|
|
|
— |
|
Acquisition-related contract value acquired during the period |
|
— |
|
|
|
21,940 |
|
Acquisition-related additions during the period |
|
— |
|
|
|
145 |
|
Acquisition-related revenue recognized during the period |
|
(3,827 |
) |
|
|
(6,402 |
) |
Acquisition-related backlog, ending balance |
|
11,856 |
|
|
|
15,683 |
|
Contracted backlog, ending balance |
$ |
291,219 |
|
|
$ |
296,652 |
|
|
|
|
|
||||
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 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250511378894/en/
Investor Relations Contact:
investorrelations@redwirespace.com
8226 Philips Highway, Suite 101
Source: Redwire Corporation
