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Redwire (RDW) - 2024 Q3 - Quarterly Results
RDWRedwire (RDW)2024-11-06 21:58

Financial Performance - Revenues for Q3 2024 increased by 9.6% year-over-year to 68.6million,comparedto68.6 million, compared to 62.6 million in Q3 2023[1] - Net Loss for Q3 2024 was (21.0)million,anincreaseof(21.0) million, an increase of 14.6 million from (6.3)millioninQ32023[2]−AdjustedEBITDAforQ32024decreasedby(6.3) million in Q3 2023[2] - Adjusted EBITDA for Q3 2024 decreased by 2.5 million to 2.4million,downfrom2.4 million, down from 4.9 million in Q3 2023[5] - Gross profit for the nine months ended September 30, 2024, was 39,832,000,comparedto39,832,000, compared to 47,238,000 for the same period in 2023, indicating a decline of 15.6%[29] - Operating loss for the three months ended September 30, 2024, was (12,512,000),comparedto(12,512,000), compared to (2,717,000) for the same period in 2023, reflecting a significant increase in losses[29] - Net loss attributable to Redwire Corporation for the nine months ended September 30, 2024, was (47,146,000),comparedto(47,146,000), compared to (18,975,000) for the same period in 2023, showing an increase in losses of 148.5%[29] - For the nine months ended September 30, 2024, Redwire Corporation reported a net loss of 47,142thousand,comparedtoanetlossof47,142 thousand, compared to a net loss of 19,048 thousand for the same period in 2023[30] - Redwire's adjusted EBITDA for the nine months ended September 30, 2024, was 8,346thousand,downfrom8,346 thousand, down from 13,643 thousand for the same period in 2023[32] Liquidity and Cash Flow - Total liquidity as of September 30, 2024, was 61.1million,representinga98.061.1 million, representing a 98.0% increase from the previous year[1] - Net cash used in operating activities for Q3 2024 increased by 14.4 million to (17.7)million,comparedto(17.7) million, compared to (3.3) million in Q3 2023[5] - Free Cash Flow for Q3 2024 decreased by 14.5millionto14.5 million to (20.5) million, down from (5.9)millioninQ32023[5]−Thecompanyexperiencedanetcashusedinoperatingactivitiesof(5.9) million in Q3 2023[5] - The company experienced a net cash used in operating activities of 24,412 thousand for the nine months ended September 30, 2024, compared to 14,460thousandforthesameperiodin2023[30]−Thenetcashprovidedbyfinancingactivitieswas14,460 thousand for the same period in 2023[30] - The net cash provided by financing activities was 40,280 thousand for the nine months ended September 30, 2024, compared to 2,294thousandforthesameperiodin2023[30]−Redwire′scash,cashequivalents,andrestrictedcashattheendoftheperiodtotaled2,294 thousand for the same period in 2023[30] - Redwire's cash, cash equivalents, and restricted cash at the end of the period totaled 43,094 thousand, up from 10,859thousandattheendofthesameperiodin2023[30]BacklogandContracts−ContractedBacklogroseby30.210,859 thousand at the end of the same period in 2023[30] Backlog and Contracts - Contracted Backlog rose by 30.2% year-over-year to 330.1 million as of September 30, 2024, up from 253.4millionayearearlier[1]−Book−to−Billratiowas1.25forthelasttwelvemonthsasofQ32024,comparedto1.38inQ32023[5]−OrganicbacklogasofSeptember30,2024,is253.4 million a year earlier[1] - Book-to-Bill ratio was 1.25 for the last twelve months as of Q3 2024, compared to 1.38 in Q3 2023[5] - Organic backlog as of September 30, 2024, is 309,965,000, down from 372,790,000asofDecember31,2023,reflectingadecreaseofapproximately16.8372,790,000 as of December 31, 2023, reflecting a decrease of approximately 16.8%[41] - Total contracted backlog as of September 30, 2024, is 330,061,000, down from 372,790,000asofDecember31,2023,representingadecreaseofapproximately11.5372,790,000 as of December 31, 2023, representing a decrease of approximately 11.5%[41] - Contracts awarded for the three months ended September 30, 2024, totaled 44,503 thousand, while revenues for the same period were 68,638thousand[37]−Remainingcontractvaluefromtimeandmaterialscontractsis68,638 thousand[37] - Remaining contract value from time and materials contracts is 16,900,000 as of September 30, 2024, down from 19,300,000asofDecember31,2023[43]−Managementexpectsallamountsreflectedincontractedbacklogtoultimatelybefullyfundeddespitepotentialterminationsoramendments[46]AssetsandLiabilities−TotalcurrentassetsasofSeptember30,2024,were19,300,000 as of December 31, 2023[43] - Management expects all amounts reflected in contracted backlog to ultimately be fully funded despite potential terminations or amendments[46] Assets and Liabilities - Total current assets as of September 30, 2024, were 126,536,000, an increase from 109,313,000asofDecember31,2023,representingagrowthof15.8109,313,000 as of December 31, 2023, representing a growth of 15.8%[26] - Total liabilities increased to 277,669,000 as of September 30, 2024, compared to 218,444,000asofDecember31,2023,markingariseof27218,444,000 as of December 31, 2023, marking a rise of 27%[26] - Total assets as of September 30, 2024, were 289,945,000, compared to 271,269,000asofDecember31,2023,indicatinganincreaseof6.9271,269,000 as of December 31, 2023, indicating an increase of 6.9%[27] - Convertible preferred stock had a liquidation preference of 239,860,000 as of September 30, 2024, up from 187,780,000asofDecember31,2023[27]ResearchandDevelopment−ResearchanddevelopmentexpensesforthethreemonthsendedSeptember30,2024,were187,780,000 as of December 31, 2023[27] Research and Development - Research and development expenses for the three months ended September 30, 2024, were 1,893,000, compared to 1,532,000forthesameperiodin2023,reflectinganincreaseof23.61,532,000 for the same period in 2023, reflecting an increase of 23.6%[29] Acquisitions - The acquisition of Hera Systems enhances Redwire's spacecraft portfolio, supporting larger missions in the national security segment[2] - The acquisition-related backlog activity is linked to the Hera Systems acquisition completed in the third quarter of 2024[45] - Acquisition-related contract value acquired during the period amounted to 21,940,000, with an ending balance of 20,096,000inacquisition−relatedbacklog[41]−Thecompanyincurredacquisitiondealcostsof20,096,000 in acquisition-related backlog[41] - The company incurred acquisition deal costs of 5,399 thousand for the nine months ended September 30, 2024[32]