Slide 1: Q2 2023 Investor Presentation
Q2 2023 Investor Presentation August 8, 2023
Slide 2: Disclaimers
Disclaimers Industry and market data used in this Presentation have been obtained from third-party industry publications and sources as well as from research reports prepared for other purposes. Redwire has not independently verified the data obtained from these sources and cannot assure you of the
Slide 3: Non-GAAP Financial Information
Non-GAAP Financial Information This Presentation contains financial measures that have not been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). These financial measures include Adjusted EBITDA, Pro Forma Adjusted EBITDA, Free Cash Flow, and Comparabl
Slide 4: Agenda
Agenda Presenters 1 Key Accomplishments 5 2 Financial Highlights 15 3 Remainder of 2023 Outlook 21 4 Q&A 23 Peter Cannito Jonathan Baliff Chairman & Chief Executive Officer Chief Financial Officer & Director 1. Insert Footnote 4
Slide 5: Key Accomplishments
Key Accomplishments Peter Cannito, Chairman and CEO Credit: SSC 1. Insert Footnote 5
Slide 6: Delivering Now, Investing in the Future
Delivering Now, Investing in the Future • Record Revenues, Gross Profit, and Adjusted EBITDA1 • Positive Cash From Operations and Free Cash Flow1 • Continued investments to drive future growth • Growth is accelerating and margins are expanding • Executing and winning more leading-edge contracts 1. I
Slide 7: Q2 2023 Excellence in Execution
Q2 2023 Excellence in Execution +63.6% +$71.6M +$7.0M Improvement in Improvement in Improvement in Revenue Net Income Cash from Operations from Q2 2022 to Q2 2023 from Q2 2022 to Q2 2023 from Q2 2022 to Q2 2023 +$8.4M +$6.3M 11 Improvement in Improvement in Infrastructure Solutions, Systems, Adjuste
Slide 8: Q2 Integrated Mission Enabler: Bringing More Power to Space
Q2 Integrated Mission Enabler: Bringing More Power to Space 6+2 6 IROSA wings deployed and operating on the International Space Station, after spacewalks to install wings 5 and 6 during Q2 2023 - plus, announced the award of 2 additional wings in a follow-on contract from Boeing and beyond Credit: N
Slide 9: Q2 Integrated Mission Enabler: Delivering Critical Payload Deployment Subsystems
Q2 Integrated Mission Enabler: Delivering Critical Payload Deployment Subsystems 4 Key components developed and delivered for X-Bow System's Bolt Rocket: the launch vehicle structure, separation system, launcher interface, and ground support equipment 2nd This is the 2nd successful mission that Redw
Slide 10: Experimenting in Space to Benefit Life on Earth
Q2 Explore, Live and Work in Space: Experimenting in Space to Benefit Life on Earth 3 Successful experiments returned from the Credit: NASA ISS - materials from our PFMI-ASCENT, AmpliSpace / Maker Health, and Plant Habitat-03(A) experiments returned to their respective researchers on earth for furth
Slide 11: Docking System for the Next Generation of Space Infrastructure
Q2 MultinationaI Space Leadership: Docking System for the Next Generation of Space Infrastructure Round 1 ☑ Redwire's International Berthing and Docking Mechanism, the result of an extensive research and development program, has recently completed successful environmental testing. 1. Insert Footnote
Slide 12: Backlog Growth Demonstrates Heritage + Innovation Demand and Differentiation
Backlog Growth Demonstrates the Heritage + Innovation Demand and Differentiation 1 Contracted Backlog Detail ~$3.7B ~$489M $273 Pipeline as of 2023 Year-to-Date June 30, 2023 submitted bids as of June 30, 2023 $162 68.3% $45.6M 1.49x Q2 2023 Q2 2023 LTM Contract Awards Book-to-Bill1 6/30/2022 6/30/2
Slide 13: Investing in Future Growth
Investing in Future Growth Year-to-date Capital in ERP and SOX $2.5M Expenditures $2.5M Year-to-date R&D $1.9M Investments 1. Insert Footnote 13
Slide 14: The Microgravity Payload Facility of the Future
The Microgravity Payload Facility of the Future Announced plans for a new 30,000 square foot state-of-the-art microgravity payload development facility with mission operations center to be built at the Novaparke Innovation & Technology Campus in Floyd County, Indiana Rendering of the Payload Operati
Slide 15: Financial Highlights
Financial Highlights Jonathan Baliff, Chief Financial Officer Credit: NASA 1. Insert Footnote 15
Slide 16: Q2 2023 Continuing Strong Financial Performance
Q2 2023 Continuing Strong Financial Performance $60.1M $(5.5)M $2.8M Record Revenue in Q2 2023, a Net Loss in Q2 2023, a $71.6M Record Cash from Operations 63.6% improvement from $36.7M improvement from $(77.0)M in Q2 in Q2 2023, a $7.0M improvement in Q2 2022 2022 from $(4.1)M in Q2 2022 $4.4M $1.1
Slide 17: Accelerating Revenue Growth
Accelerating Revenue Growth Increase in LTM revenues 45.6% to $208.7 for Q2 2023 vs • 4.3% increase in revenues from $143.4 for Q2 2022 Q1 2023 to Q2 2023 Sequential Quarterly Revenues • 63.6% increase in Q2 2023 vs. $70.0 Quarter-to-Date Revenues (in millions) Q2 2022 $60.0 $57.6 $60.1 $53.7 • 24.9
Slide 18: 2023 Year-to-Date Revenues
2023 Year-to-Date Revenues • 31.0% increase over H1 2022, 69.1% Increase over H1 2022 excluding Space NV1 H1 2022 to H1 2023 Revenues • H1 2023 Revenues by customer $125.0 $26.5 $117.7 type were 45.4% from Civil, 33.5% Year-to-Date Revenues (in millions) from Commercial, and 21.0% from $100.0 $21.6
Slide 19: Quarterly Adjusted EBITDA
Quarterly Adjusted EBITDA • Nominal improvement in Q2 or 207.4% improvement in 2023 vs. Q1 2023 +$8.4M Adjusted EBITDA in Q2 2023 vs. Q2 2022 • Primarily driven by revenue Quarterly Adjusted EBITDA growth and our "excellence in $5.0 $4.3 $4.4 execution" initiatives that Quarter-to-Date Adjusted EBIT
Slide 20: Quarterly Free Cash Flow and Liquidity
Quarterly Free Cash Flow and Liquidity Q2 2023 Free Cash Flow,1 $1.1M sequential improvement of 107.4% $36.2M Ending liquidity as of June 30, 2023 Quarterly Free Cash Flow 1 Quarterly Total Available Liquidity $5.0 $1.1 $60.0 $53.3 Quarter-to-Date Total Liquidity (in Quarter-to-Date Free Cash $2.8 $
Slide 21: Remainder of 2023 Outlook
Remainder of 2023 Outlook Peter Cannito, Chairman and CEO Credit: Redwire 1. Insert Footnote 21
Slide 22: Remainder of 2023 Outlook
Remainder of 2023 Outlook Revenue Guidance $300.0 • Global Revenue Growth +46% ◦ Redwire affirms that it expects revenues to $250.0 $235.0 be in a range of $220M-$250M Year-to-Date Revenues (in millions) ◦ 46% forecasted year-over-year growth, at $200.0 the mid-point of the range $160.5 ◦ 50% of for
Slide 23: Questions & Answers
Questions & Answers 1. Insert Footnote 23
Slide 24: Appendix
Appendix > 24
Slide 25: Q2 2023 Quarter-to-Date Performance
Q2 2023 Quarter-to-Date Performance Three Months Ended $ Change from prior % Change from prior ($ in thousands, except percentages) June 30, 2023 June 30, 2022 year period year period Revenues $ 60,098 $ 36,728 $ 23,370 64 % Cost of sales 44,194 29,746 14,448 49 Gross margin 15,904 6,982 8,922 128 O
Slide 26: Q2 2023 Year-to-Date Performance
Q2 2023 Year-to-Date Performance Six Months Ended $ Change from prior % Change from prior ($ in thousands, except percentages) June 30, 2023 June 30, 2022 year period year period Revenues $ 117,703 $ 69,595 $ 48,108 69 % Cost of sales 87,582 57,442 30,140 52 Gross margin 30,121 12,153 17,968 148 Ope
Slide 27: Supplemental Non-GAAP Information
Supplemental Non-GAAP Information Adjusted EBITDA and Pro Forma Adjusted EBITDA Adjusted EBITDA and Pro Forma Adjusted EBITDA are not measures of results under Six Months Ended generally accepted accounting principles in the United States. (in thousands) June 30, 2023 June 30, 2022 Adjusted EBITDA i
Slide 28: Supplemental Non-GAAP Information, Continued
Supplemental Non-GAAP Information, Continued i. Redwire incurred acquisition costs including due diligence, integration costs and Three Months Ended additional expenses related to pre-acquisition activity. (in thousands) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 ii. Redwire recorded adjustments relate
Slide 29: Supplemental Non-GAAP Information, Continued
Supplemental Non-GAAP Information, Continued Six Months Ended Free Cash Flow (in thousands) June 30, 2023 June 30, 2022 Free Cash Flow is computed as net cash provided by Net cash provided by (used in) operating activities $ (11,204) $ (15,584) (used in) operating activities less capital expenditure
Slide 30: Key Performance Indicators
Key Performance Indicators Contracted Backlog We view growth in backlog as a key measure of our business growth. Contracted backlog June 30, December 31, represents the estimated dollar value of firm funded executed contracts for which work (in thousands) 2023 2022 has not been performed (also known