Redwire (RDW) - 2023 Q3 - Quarterly Report

Revenue Growth - Revenues increased 68% to $62.6 million for Q3 2023 compared to$37.2 million in Q3 2022, driven by $13.5 million from the Space NV Acquisition[176] - Revenues increased by$73.5 million, or 69%, for the nine months ended September 30, 2023, compared to the same period in 2022, driven by $40.0 million from the Space NV Acquisition[190] Profitability and Loss - Net loss decreased 39$6.3 million in Q3 2023 from $10.4 million in Q3 2022, and decreased 82$18.975 million for the nine months ended September 30, 2023, compared to a loss of $104.7 million in the same period in 2022[189] - Gross margin improved to 27$27.1 million, or 135%, for the nine months ended September 30, 2023, with gross margin as a percentage of revenues rising to 26% from 19%[192] Expenses Management - Selling, general and administrative expenses as a percentage of revenues decreased to 29% in Q3 2023 from 41% in Q3 2022[182] - SG&A expenses decreased by $1.8 million, or 3$1.5 million in Q3 2023 compared to $1.1 million in Q3 2022[178] - Research and development expenses decreased by$0.6 million, or 13%, for the nine months ended September 30, 2023, due to resource redirection towards direct billing projects[196] Cash Flow and Financing - Net cash used in operating activities decreased by $12.4 million during the nine months ended September 30, 2023[176] - Net cash used in operating activities for the nine months ended September 30, 2023, was$14.5 million, an improvement of $12.4 million compared to the same period in 2022[229] - Cash and cash equivalents at the end of the period were$10.9 million, compared to $7.0 million at the end of September 2022, reflecting an increase of approximately 55$14.6 million, primarily due to $19.9 million in loan repayments during the nine months ended September 30, 2023[231] - The company had$20.0 million in available borrowings from existing credit facilities as of September 30, 2023[220] Backlog and Contracts - Contracted backlog increased to $253.4 million as of September 30, 2023, up from$158.9 million a year earlier[176] - The book-to-bill ratio was 0.74 for the three months ended September 30, 2023, compared to 0.91 for the same period in 2022, indicating a decrease in contracts awarded relative to revenues[210] - Contracted backlog as of September 30, 2023, was $253.4 million, down from$313.1 million as of December 31, 2022, representing a decrease of approximately 19%[216] - Organic backlog ending balance decreased to $141.8 million from$184.9 million, a decline of about 23%[216] - Acquisition-related backlog ending balance decreased to $111.6 million from$128.1 million, a decline of approximately 13%[216] - The company expects all amounts reflected in contracted backlog to be fully funded despite potential terminations or cancellations[219] Tax and Interest - The effective tax rate decreased to 3.8% for Q3 2023 from 17% in Q3 2022, primarily due to an increase in the valuation allowance[187] - Interest expense, net increased by $2.4 million, or 44$17.2 million for the nine months ended September 30, 2023, primarily due to a loss related to the fair value of private warrant liability[198] - Pro Forma Adjusted EBITDA for the nine months ended September 30, 2023, was $13.6 million, compared to a loss of$6.6 million for the same period in 2022[204] Lease Obligations - The company has committed to a lease for a 30,000 square foot property at the Novaparke Innovation & Technology Campus, creating a significant future lease obligation[227]