Redwire (RDW)2023-03-31 12:35Financial Performance - Revenues for the year ended December 31, 2022, were $160,549,000, representing a 16.6% increase from $137,601,000 in 2021[433]. - The company's net loss for the year ended December 31, 2022, was $130,620,000, compared to a net loss of $61,537,000 in 2021, indicating a significant increase in losses[433]. - Net income for the year ended December 31, 2022, was $(130,620) thousand, compared to $(61,537) thousand for the year ended December 31, 2021, representing a 112% increase in net loss[441]. - Total revenues for the year ended December 31, 2022, were $207,761 thousand, slightly up from $206,204 thousand in 2021[568]. - The company incurred transaction expenses of $3,112 thousand related to the Space NV acquisition for the year ended December 31, 2022[566]. Assets and Liabilities - Total current assets increased to $96,167,000 as of December 31, 2022, from $55,216,000 in 2021, reflecting a growth of 74.4%[428]. - Total liabilities rose to $187,808,000 as of December 31, 2022, compared to $154,534,000 in 2021, marking an increase of 21.5%[428]. - Total equity as of December 31, 2022, was $226 thousand, a decrease from $107,222 thousand as of December 31, 2021[441]. - Cash and cash equivalents at the end of the period increased to $28,316 thousand from $20,523 thousand, marking a net increase of $7,793 thousand[442]. - Cash flows from operating activities for the year ended December 31, 2022, were $(31,657) thousand, an improvement from $(37,358) thousand in 2021[441]. Research and Development - Research and development expenses for the year ended December 31, 2022, were $4.9 million[85]. - Research and development costs are primarily composed of labor charges, prototype material, and development expenses, and are expensed in the period incurred[519]. Acquisitions - The company completed nine acquisitions from March 2020 to December 31, 2022, enhancing its technology and product offerings[446]. - The Company acquired 100% of Oakman for a total purchase consideration of $14.252 million, which included $12.142 million in cash and $2.110 million in equity issued[538][540]. - The Company acquired 100% of DPSS for $27.305 million, with post-acquisition revenues of $26.678 million and a net loss of $554,000 for the year ended December 31, 2021[545][550]. - The acquisition of Techshot involved a total purchase consideration of $40.721 million, with post-acquisition revenues of $1.563 million and a net loss of $392,000 for the year ended December 31, 2021[551][557]. - The Company acquired QinetiQ Space NV for $36.9 million, which supports growth in satellite technologies and expands its global footprint[558]. Market and Industry Trends - Approximately $253 billion of equity investment has been made across 1,694 space companies over the last 10 years, indicating significant growth in the space market[72]. - The annual number of Smallsats launched has increased almost eightfold since 2012, with 94% of all launches in 2021 including a Smallsat[77]. - The per-kilogram cost of launching satellites to LEO is as low as approximately $2,700/kg, driven by competition among launch providers[76]. Workforce and Talent Management - The company plans to increase its workforce by approximately 20% to support contracted work and anticipated new awards in 2023[96]. - The company has established a talent acquisition team and is utilizing AI sourcing tools to enhance recruitment efforts in a tight labor market[97]. - The company offers competitive compensation packages, including short- and long-term incentive programs, to attract and retain high-performing individuals[99]. - The company is committed to promoting diversity and inclusion within its workforce and supports various organizations in the aerospace field[98]. - The company has implemented programs to celebrate workforce diversity and highlight contributions from under-represented communities[98]. Financial Reporting and Accounting - The Company recognizes revenue based on ASC 606, with a five-step model for revenue recognition including identification of contracts and performance obligations[501]. - The Company recognizes anticipated contract losses as soon as they become known and estimable, impacting revenue recognition for long-term contracts[512]. - The Company accounts for income taxes under ASC 740, recognizing deferred tax assets and liabilities based on the expected reversal of basis differences using enacted tax rates[530]. - The Company adopted the new lease standard (ASC 842) effective January 1, 2022, recognizing right-of-use assets and lease liabilities of $10.1 million and $10.2 million, respectively[535]. Operational Highlights - The number of satellites and spacecraft deployed increased by 36% in 2022, reaching a total of 2,354 deployments[73]. - The company currently has nine active payload facilities on the ISS, demonstrating the increasing demand for living and working in space[79]. - The company is developing a robotic arm for space applications in collaboration with the Luxembourg Space Agency and the European Space Agency[67]. - The company operates in one reportable segment, space infrastructure, as reviewed by the Chief Operating Decision Maker[459].