Redwire (US:RDW)2024-11-06 21:58Financial Performance - Revenues for Q3 2024 increased by 9.6% year-over-year to $68.6 million, compared to $62.6 million in Q3 2023[1] - Net Loss for Q3 2024 was $(21.0) million, an increase of $14.6 million from $(6.3) million in Q3 2023[2] - Adjusted EBITDA for Q3 2024 decreased by $2.5 million to $2.4 million, down from $4.9 million in Q3 2023[5] - Gross profit for the nine months ended September 30, 2024, was $39,832,000, 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), 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), 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 $47,142 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 $8,346 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 $61.1 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, compared to $(3.3) million in Q3 2023[5] - Free Cash Flow for Q3 2024 decreased by $14.5 million to $(20.5) million, down from $(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 $14,460 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 $2,294 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 $10,859 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 $253.4 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 $372,790,000 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 $372,790,000 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 $68,638 thousand[37] - Remaining contract value from time and materials contracts is $16,900,000 as of September 30, 2024, down from $19,300,000 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 $109,313,000 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 $218,444,000 as of December 31, 2023, marking a rise of 27%[26] - Total assets as of September 30, 2024, were $289,945,000, compared to $271,269,000 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 $187,780,000 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 $1,532,000 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 $20,096,000 in acquisition-related backlog[41] - The company incurred acquisition deal costs of $5,399 thousand for the nine months ended September 30, 2024[32]