Slide 1: Q3 2023 Investor Presentation
Q3 2023 Investor Presentation November 7, 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 16 3 Remainder of 2023 Outlook 22 4 Q&A 24 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 XRISM Credit: NASA/JAXA 1. Insert Footnote 5
Slide 6: Strength from Balance and Diversity
Strength from Balance and Diversity • Record Revenues, Gross Profit, and Adjusted EBITDA1 • Expanding margins with beneficial shift in product mix • Balancing both top-line and bottom-line growth • Diversity of products, customers, and end-markets provide resiliency Euclid Spacecraft Credit: ESA 1.
Slide 7: Q3 2023 Continued Excellence in Execution
Q3 2023 Continued Excellence in Execution +68.1% +$4.1M +$8.0M Improvement in Improvement in Improvement in Revenue Net Income Cash from Operations from Q3 2022 to Q3 2023 from Q3 2022 to Q3 2023 from Q3 2022 to Q3 2023 +$6.4M +$6.7M 5 Improvement in Improvement in Infrastructure Solutions, Systems,
Slide 8: Diverse Market Perspectives
Diverse Market Perspectives National Security Commercial Civil Defense and Intelligence agencies Space primes & solution providers Civilian space agencies • Fastest growing Redwire • Capital for commercial space • Some risk associated with target market companies is delaying awards NASA budget due t
Slide 9: Balancing Top-Line and Bottom-Line
Balancing Top-Line and Bottom-Line • Approach to growth balances risk and profitability • Disciplined approach drives financial performance through selective bidding • Focused on strategic investments that drive Return on Investment NASA Tipping Point Credit: Redwire • Avoiding "growth at any cost"
Slide 10: A Trusted National Security Provider
Q3 Integrated Mission Enabler: A Trusted National Security Provider • Classified programs a significant area of the Space Force budget • Redwire has secure facilities in multiple geographies • Cleared employees with critical skill sets • Leadership with proven national security experience • 21.2% of
Slide 11: Navigating Groundbreaking Missions
Q3 Integrated Mission Enabler: Navigating Groundbreaking Missions 10 Coarse sun sensors provided by Redwire on the Psyche spacecraft 2.2 billion miles The length of the journey from Earth to the asteroid Psyche. Redwire's sun sensors will help the Psyche spacecraft to accurately navigate the stars t
Slide 12: Next Generation Drug Development on Orbit: PIL-BOX
Q3 Explore, Live and Work in Space: Next Generation Drug Development on Orbit PIL-BOX Redwire's next-generation in-space pharmaceutical manufacturing capability. Testing will be completed in partnership with Eli Lilly and Company. PIL-BOX aims to allow researchers to develop novel forms of crystals
Slide 13: Providing the "Brains" of the Mission
Q3 MultinationaI Space Leadership: Providing the "Brains" of the Mission 3rd Generation Redwire Space NV was awarded a contract to provide the onboard computer for ESA's Comet Interceptor mission. The onboard computer is part of Redwire's 3rd Generation Advanced Data and Power Management System. ESA
Slide 14: Backlog Growth Demonstrates Heritage + Innovation Demand
Backlog Growth Demonstrates the Heritage + Innovation Demand and Differentiation 1 Contracted Backlog Detail ~$4.5B ~$714M $253 Pipeline as of 2023 Year-to-Date September 30, 2023 submitted bids as of September 30, 2023 $159 59.5% $46.5M 1.38x Q3 2023 Q3 2023 LTM Contract Awards Book-to-Bill1 9/30/2
Slide 15: Continued Investment in the Future
Continued Investment in the Future $5.2M $4.0M $3.0M Year-to-date Year-to-date Year-to-date in ERP Capital Expenditures R&D and SOX Investments 1. Insert Footnote 15
Slide 16: Financial Highlights
Financial Highlights Jonathan Baliff, Chief Financial Officer Dragonfly Credit: NASA/Johns Hopkins APL/Steve Gribben 1. Insert Footnote 16
Slide 17: Q3 2023 Continued Positive Momentum
Q3 2023 Continued Positive Momentum $62.6 $62.6M $(6.3)M $(3.3)M % .1 $(3.3) 8 +6 $37.2 $(6.3) .0M Record Net Cash from 1 8 4. +$ +$ $(10.4) Revenue Loss Operations $(11.2) Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 $4.9 $4.9M M +$6 .4 $(5.9)M $(5.9) Record Adjusted Free Cash M 6 .7 +$ EBITDA1
Slide 18: Quarterly Revenues
Quarterly Revenues Increase in LTM revenues 58.2% to $234.0 for Q3 2023 vs. • 4.2% increase in revenues from $147.9 for Q3 2022 Q2 2023 to Q3 2023 Sequential Quarterly Revenues • 68.1% increase in Q3 2023 vs. $70.0 Quarter-to-Date Revenues (in millions) $62.6 Q3 2022 $60.0 $57.6 $60.1 $53.7 • 31.8%
Slide 19: 2023 Year-to-Date Revenues
2023 Year-to-Date Revenues • 31.3% increase over Q3 2022 YTD, Increase in YTD revenues excluding Space NV1 68.8% to $180.3 for Q3 2023 vs. $106.8 for Q3 2022 • Q3 2023 YTD Revenues by Q3 2022 YTD to Q3 2023 YTD Revenues customer type were 45.9% from $200.0 $40.0 $180.3 Civil, 32.9% from Commercial,
Slide 20: Quarterly Adjusted EBITDA
Quarterly Adjusted EBITDA Improvement in Adjusted • $0.6M improvement in Q3 2023 vs. Q2 2023 +$6.4M EBITDA in Q3 2023 vs. Q3 2022 • Primarily driven by better Quarterly Adjusted EBITDA $6.0 contract mix and revenue $4.9 Quarter-to-Date Adjusted EBITDA (in growth which led to a more than $4.0 $4.3 $4
Slide 21: Quarterly Free Cash Flow and Liquidity
Quarterly Free Cash Flow and Liquidity Q3 2023 Free Cash Flow1; a $(5.9)M year-over-year improvement of $6.7M $30.9M Ending liquidity as of September 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
Slide 22: Remainder of 2023 Outlook
Remainder of 2023 Outlook Peter Cannito, Chairman and CEO NASA Tipping Point Credit: Redwire Credit: Redwire 1. Insert Footnote 22
Slide 23: 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 be in a range of $220M-$250M $235.0 Year-to-Date Revenues (in millions) ◦ 46% forecasted year-over-year growth, at $200.0 the mid-point of the range $160.5 ◦ 77% of for
Slide 24: Questions & Answers
Questions & Answers 1. Insert Footnote 24
Slide 25: Appendix
Appendix > 25
Slide 26: Q3 2023 Quarter-to-Date Performance
Q3 2023 Quarter-to-Date Performance Three Months Ended $ Change from prior % Change from prior ($ in thousands, except percentages) September 30, 2023 September 30, 2022 year period year period Revenues $ 62,612 $ 37,249 $ 25,363 68 % Cost of sales 45,495 29,300 16,195 55 Gross margin 17,117 7,949 9
Slide 27: Q3 2023 Year-to-Date Performance
Q3 2023 Year-to-Date Performance Nine Months Ended $ Change from prior % Change from prior ($ in thousands, except percentages) September 30, 2023 September 30, 2022 year period year period Revenues $ 180,315 $ 106,844 $ 73,471 69 % Cost of sales 133,077 86,742 46,335 53 Gross margin 47,238 20,102 2
Slide 28: 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 Nine Months Ended generally accepted accounting principles in the United States. September 30, September 30, (in thousands) 2023 2022 Adjust
Slide 29: 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) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 ii. Redwire recorded adjustments relate
Slide 30: Supplemental Non-GAAP Information, Continued
Supplemental Non-GAAP Information, Continued Nine Months Ended Free Cash Flow September 30, September 30, Free Cash Flow is computed as net cash provided by (in thousands) 2023 2022 (used in) operating activities less capital expenditures. The Net cash provided by (used in) operating activities $ (1
Slide 31: Key Performance Indicators
Key Performance Indicators Contracted Backlog We view growth in backlog as a key measure of our business growth. Contracted backlog September 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