Slide 1: Q1 2024 Investor Presentation
Q1 2024 Investor Presentation May 9, 2024
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, and Free Cash Flow. Non-GAAP
Slide 4: Agenda
Agenda Presenters 1 Q1 2024 Results 5 2 Financial Highlights 14 3 Remainder of 2024 Outlook 20 4 Q&A 21 Peter Cannito Jonathan Baliff Chairman & Chief Executive Officer Chief Financial Officer & Director 1. Insert Footnote 4
Slide 5: Q1 2024 Results
Q1 2024 Results Peter Cannito, Chairman and CEO Rendering Credit: Blue Origin 1. Insert Footnote 5
Slide 6: Q1 2024 Starting Strong
Q1 2024 Starting Strong +52.4% $(8.1)M +$16.8M Improvement in Net Income Improvement in Revenue in Cash from Operations from Q1 2023 to Q1 2024 Q1 2024 from Q1 2023 to Q1 2024 1.11x $4.3M +$15.2M LTM Book-to-Bill1 Ratio Positive Improvement in in Q1 2024 Adjusted EBITDA2 Free Cash Flow2 in Q1 2024 f
Slide 7: 2024 Growth Strategy
2024 Growth Strategy • Protecting the core • Scaling production • Moving up the value chain • Venture optionality PACE Satellite Credit: NASA 1. Insert Footnote 7
Slide 8: Protecting the Core
Protecting the Core Credit: Intuitive Machines IM-1 Cameras Solar Sail Avionics & Sensors Structures & Mechanisms Redwire cameras were on Intuitive Machine's lunar Redwire developed deployment mechanisms and booms lander for the IM-1 mission, providing Terrain Navigation for Solar Sail, which cleare
Slide 9: Scaling Production
Scaling Production SDA Tranche 2 Beta ROSA Radio Frequency Systems Power Generation Under contract with Rocket Lab for 18 ship sets of 2 ROSA wings successfully deployed on the Ovzon 3 antennas and RF hardware for the SDA Transport Layer satellite; Redwire began execution on its $142M contract Tranc
Slide 10: Moving Up the Value Chain
Moving Up the Value Chain SabreSat Phantom Platforms, Payloads, & Missions - US Platforms, Payloads, & Missions - Europe Awarded a study related to SabreSat, our US VLEO Executing on ESA's Skimsat mission as European VLEO platform, during the quarter platform developer; program aims to reduce cost o
Slide 11: In Focus: Venture Optionality
In Focus: Venture Optionality Pharma Beyond the Limits of Earth • Drug discovery market size has been estimated at ~$80 billion in 2023, growing to ~$180 billion by 20321 • PIL-BOX is a proven, cutting-edge in-space pharmaceutical manufacturing platform delivering reliable results now • Crystals gro
Slide 12: In Focus: Venture Optionality
In Focus: Venture Optionality Critical PIL-BOX Milestones PIL-02 and PIL-01 PIL-03 PIL-03 Launches Launch Returns Nov. 2023 Mar. 2024 Apr. 2024 Dec. 2023 Apr. 2024 16 additional PIL- PIL-01 MOU with BOX missions Returns Boryung manifested in 2024 with a robust pipeline of interest from commercial en
Slide 13: Backlog Growth Demonstrates the Heritage + Innovation Differentiation
Backlog Growth Demonstrates the Heritage + Innovation Differentiation YTD Submitted Bids ~$6.3B ~$610M +17 7.3 % $610 Pipeline as of 2024 Year-to-Date $220 March 31, 2024 submitted bids as of March 31, 2024 3/31/2023 3/31/2024 1 Contracted Backlog Detail $35.1M 1.11x $287 +10.9% $318 Q1 2024 Q1 2024
Slide 14: Financial Highlights
Financial Highlights Jonathan Baliff, Chief Financial Officer PROBA-3 Credit: Redwire 1. Insert Footnote 14
Slide 15: Balancing Growth & Profitability in Q1 2024
Balancing Growth & Profitability in Q1 2024 $87.8 $2.8 4% $87.8M $57.6 +5 2. $(8.1)M $2.8M .8M 6 Record Net Cash from +$1 $(0.8 Revenue Loss $(7.3) ) $(8.1) Operations $(14.0) Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 $0.4 $4.3M $0.4M $4.3 $4.3 .2M 5 +$1 Adjusted Free Cash EBITDA1 Flow1 $(14.8
Slide 16: Quarterly Revenues
Quarterly Revenues Increase in revenues to • 38.3% sequential increase in 52.4% $87.8 for Q1 2024 vs. $57.6 for Q1 2023 revenues from Q4 2023 to record quarterly revenue of Sequential Quarterly Revenues $87.8 million in Q1 2024 $100.0 Quarter-to-Date Revenues (in millions) $87.8 • More than 90% of r
Slide 17: Quarterly Adjusted EBITDA
Quarterly Adjusted EBITDA Sequential improvement in • Q1 2024 Adjusted EBITDA was flat +$2.6M Adjusted EBITDA in Q1 2024 vs. Q4 2023 with Q1 2023; however significant sequential improvement from Q4 Quarterly Adjusted EBITDA 2023 $6.0 Quarter-to-Date Adjusted EBITDA (in $4.9 • Positive Adjusted EBITD
Slide 18: Continued Investments for Growth and Scale to Advance our Path to Profitability
Continued Investments for Growth and Scale to Advance our Path to Profitability $2.4M $1.0M $1.0M Q1 2024 Q1 2024 Q1 2024 Capital Research and ERP and SOX Expenditures Development Investments 1. Insert Footnote 18
Slide 19: Quarterly Free Cash Flow and Liquidity
Quarterly Free Cash Flow and Liquidity Q1 2024 Free Cash Flow1; a $0.4M year-over-year improvement of $15.2M $47.6M Ending liquidity as of March 31, 2024 Quarterly Free Cash Flow 1 Quarterly Total Available Liquidity $20.0 $60.0 $12.6 Quarter-to-Date Total Liquidity (in Quarter-to-Date Free Cash $48
Slide 20: Remainder of 2024 Outlook
Remainder of 2024 Outlook Revenue Guidance • Global Revenue Growth $400 +23% ◦ Redwire affirms that it is forecasting full $350 year 2024 revenues to be $300M $300 $300 Year-to-Date Revenues (in millions) ◦ 23% forecasted year-over-year growth ◦ Timing of long-lead items drove $250 $244 achievement
Slide 21: Questions & Answers
Questions & Answers 1. Insert Footnote 21
Slide 22: Appendix
Appendix > 22
Slide 23: Q1 2024 Quarter-to-Date Performance
Q1 2024 Quarter-to-Date Performance Three Months Ended $ Change from prior % Change from prior ($ in thousands, except percentages) March 31, 2024 March 31, 2023 year period year period Revenues $ 87,792 $ 57,605 $ 30,187 52 % Cost of sales 72,967 43,388 29,579 68 Gross margin 14,825 14,217 608 4 Op
Slide 24: 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 Three Months Ended generally accepted accounting principles in the United States. March 31, March 31, (in thousands) 2024 2023 Adjusted EBIT
Slide 25: 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) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 ii. Redwire recorded adjustments relate
Slide 26: Supplemental Non-GAAP Information, Continued
Supplemental Non-GAAP Information, Continued Three Months Ended Free Cash Flow Free Cash Flow is computed as net cash provided by (in thousands) March 31, 2024 March 31, 2023 (used in) operating activities less capital expenditures. The Net cash provided by (used in) operating activities $ 2,764 $ (
Slide 27: Key Performance Indicators
Key Performance Indicators Contracted Backlog We view growth in backlog as a key measure of our business growth. Contracted backlog March 31, December 31, represents the estimated dollar value of firm funded executed contracts for which work (in thousands) 2024 2023 has not been performed (also know