Redwire (RDW) - 2023 Q4 - Annual Report

Financial Performance - Redwire Corporation reported revenues of $243.8 million for the year ended December 31, 2023, a 51.7$160.5 million in 2022[381]. - The gross margin for 2023 was $58.0 million, compared to$28.7 million in 2022, reflecting a significant improvement in profitability[381]. - Operating loss narrowed to $15.5 million in 2023 from a loss of$146.4 million in the previous year, indicating better operational efficiency[381]. - Net loss attributable to Redwire Corporation was $27.3 million in 2023, compared to a net loss of$130.6 million in 2022, showing a substantial reduction in losses[381]. - Cash flows from operating activities provided $1.231 million in 2023, a recovery from a cash outflow of$31.657 million in 2022[388]. - Net income for the year ended December 31, 2023, was a loss of $27.264 million, compared to a loss of$130.620 million in 2022, indicating a significant improvement[388]. Assets and Liabilities - Total current assets increased to $109.3 million as of December 31, 2023, up from$96.2 million in 2022, driven by higher cash and accounts receivable[374]. - Total liabilities rose to $218.4 million in 2023, compared to$187.8 million in 2022, primarily due to increased long-term debt[376]. - The company had cash and cash equivalents of $30.3 million as of December 31, 2023, an increase from$28.3 million in 2022[374]. - Redwire Corporation's total assets increased to $271.3 million in 2023 from$257.7 million in 2022, reflecting overall growth in the company's financial position[376]. - Total equity as of December 31, 2023, was $188.323 million, down from$198.126 million in 2022, reflecting a decrease in accumulated deficit[385]. Research and Development - Research and development expenses for the year ended December 31, 2023, were $5.0 million, reflecting the company's commitment to advancing space infrastructure technology[65]. - Redwire's research and development strategy focuses on areas with significant growth and long-term opportunities, aligning with its core space infrastructure offerings[64]. - Research and development expenses remained stable at approximately$5.0 million in both 2023 and 2022, indicating continued investment in innovation[381]. Contracts and Market Position - As of December 31, 2023, the total contracted backlog was $372.8 million, indicating a strong measure of business growth[50]. - The company has formalized contracts and strategic partnerships with numerous customers, aiming to expand its market presence[52]. - Redwire is involved in high-profile contracts, including the Artemis program, where it is contracted to provide one of the largest solar arrays ever built[58]. - The majority of the company's revenues are derived from government contracts, highlighting a concentrated customer base[60]. - The company views the commercial market opportunity as having significant growth potential as launch costs decrease[59]. Employee and Diversity Initiatives - Redwire has approximately 700 employees as of December 31, 2023, emphasizing its human capital in the space industry[73]. - The company is committed to diversity and inclusion, implementing programs to support under-represented communities in the aerospace field[75]. Debt and Financing - Total debt rose to$89,477 million in 2023 from $78,938 million in 2022, with total long-term debt, net increasing to$86,842 million[513]. - Interest expense on debt for the year ended December 31, 2023, was $10.702 million, compared to$8.220 million for the previous year, reflecting an increase of approximately 30.2%[524]. - The Company borrowed $35.5 million and repaid$23.5 million on the revolving credit facility during 2023, with $12.0 million outstanding as of December 31, 2023[514]. Acquisitions - The Company acquired QinetiQ Space NV for$36.9 million (€37 million) in cash on October 31, 2022, enhancing its satellite technologies and global footprint[469]. - The fair value of net identifiable assets acquired from Space NV was $19.3 million, with goodwill recorded at$17.9 million after a non-cash measurement period adjustment[475]. - The total liabilities from the Space NV acquisition were $33.7 million, including accrued expenses of$18.6 million and deferred revenue of $5.5 million[475]. Revenue Recognition and Accounting Policies - The Company recognizes revenue for long-term contracts over time, using the input method based on cost-to-cost measures of progress, which reflects the value transferred to the customer[443]. - The Company’s revenue recognition follows a five-step model, ensuring that performance obligations are identified and transaction prices allocated accordingly[435]. - The Company evaluates equity method investments for impairment whenever events indicate that carrying amounts may be impaired, recording losses if declines are determined to be other than temporary[430].