Redwire (RDW) - 2023 Q1 - Quarterly Report

Revenue and Growth - Revenues increased by $24.7 million, or 75$12.3 million from the Space NV Acquisition and growth in deployables and engineering services [215]. - Contracted backlog increased to $286.8 million as of March 31, 2023, compared to$137.3 million as of March 31, 2022 [213]. - The company's contracted backlog as of March 31, 2023, was $286,750,000, a decrease from$313,057,000 as of December 31, 2022 [239]. - Organic backlog at the end of Q1 2023 was $163,053,000, down from$184,912,000 at the beginning of the period [239]. Costs and Expenses - Cost of sales rose by $15.7 million, or 57$10.0 million from the Space NV Acquisition [216]. - Selling, general and administrative (SG&A) expenses decreased by 23.4% year-over-year, with SG&A as a percentage of revenues dropping from 64% to 28% [218][219]. - Research and development expenses decreased by $1.3 million, or 77$9.0 million, or 175%, for Q1 2023, with gross margin as a percentage of sales rising to 25% from 16% in Q1 2022 [217]. - Net loss decreased by 58% for Q1 2023, amounting to $7.3 million compared to a net loss of$17.3 million in Q1 2022 [212][214]. - For the three months ended March 31, 2023, the company reported a net loss of $7,258,000, an improvement from a net loss of$17,293,000 for the same period in 2022 [230]. - Adjusted EBITDA for the first quarter of 2023 was $4,344,000, compared to an Adjusted EBITDA of$(4,669,000) for the same period in 2022 [230]. Financial Ratios and Metrics - The book-to-bill ratio for the three months ended March 31, 2023, was 0.51, down from 0.93 for the same period in 2022, indicating a decrease in contracts awarded relative to revenues [234]. - For the last twelve months (LTM) ended March 31, 2023, the book-to-bill ratio improved to 1.76, compared to 0.85 for the LTM ended March 31, 2022 [236]. Cash Flow and Debt - Cash and cash equivalents at the end of Q1 2023 were $11,273,000, a decrease from$28,316,000 at the beginning of the year [250]. - Total debt as of March 31, 2023, was $78,230,000, slightly down from$78,938,000 as of December 31, 2022 [248]. - Net cash used in operating activities for Q1 2023 was $(14,048,000), compared to$(11,446,000) for the same period in 2022, indicating increased cash outflow [250]. - The company had $25,000,000 available in borrowings from existing credit facilities as of March 31, 2023 [243]. Tax and Other Financial Information - Interest expense, net increased by$1.2 million, or 82%, for Q1 2023 due to unfavorable changes in variable interest rates on debt obligations [222]. - Other (income) expense, net increased by $1.2 million, or 106%, primarily due to a loss from the increase in the fair value of the Company's private warrant liability [223]. - Effective tax rate decreased to 0.4% for Q1 2023 from 14.3% in Q1 2022, primarily due to an increase in the valuation allowance [224]. - The Company is classified as a smaller reporting company and is not obligated to provide the information required under Item 3 [255].