Redwire (RDW) - 2024 Q1 - Quarterly Report

Revenue and Contracts - Revenues increased by $30.2 million, or 52$87.8 million[145] - Total contracts awarded for the three months ended March 31, 2024, were $35.1 million, compared to$29.7 million for the same period in 2023[163] - Revenues for the three months ended March 31, 2024, were $87.8 million, an increase from$57.6 million in the same period in 2023[163] - Redwire's book-to-bill ratio was 0.40 for the three months ended March 31, 2024, down from 0.51 for the same period in 2023[165] - The contracted backlog as of March 31, 2024, was $317.9 million, a decrease from$372.8 million as of December 31, 2023[168] Costs and Expenses - Cost of sales rose by $29.6 million, or 68$73.0 million[148] - Gross margin increased by $0.6 million, or 4$1.3 million, or 8%, for the three months ended March 31, 2024, but as a percentage of revenues, decreased to 20% from 28%[150] - Research and development expenses increased significantly, driven by investments in microgravity payloads, radio frequency, and power generation technologies[152] Cash Flow and Financial Position - Net cash provided by operating activities was $2.8 million during the three months ended March 31, 2024, compared to a net cash used of$14.0 million in the same period of 2023[145] - Cash and cash equivalents at the end of the period on March 31, 2024, were $32.6 million, up from$11.3 million at the end of March 31, 2023[184] - The company had $32.6 million in cash and cash equivalents and$15.0 million in available borrowings from existing credit facilities as of March 31, 2024[173] - Net cash used in investing activities increased to $2.4 million for the three months ended March 31, 2024, from$0.8 million in the same period in 2023[186] - The company did not sell shares to B. Riley during the three months ended March 31, 2024, and had 7,592,939 registered shares available for purchase under the committed equity facility[180] Loss and Taxation - Net loss increased by 12% for the three months ended March 31, 2024, amounting to $8.1 million compared to$7.3 million in the same period of 2023[146] - Interest expense, net increased by $0.3 million, or 10$0.9 million, or 39%, for the three months ended March 31, 2024, primarily due to changes in the fair value of the Company's private warrant liability[154] - The effective tax rate for the three months ended March 31, 2024 was (1.4)%, compared to 0.4% for the same period in 2023, primarily due to changes in the valuation allowance[155] Future Expectations - The company expects all amounts reflected in contracted backlog to ultimately be fully funded despite potential fluctuations due to foreign exchange rates[172]