Slide 1: Q4 2023 Investor Presentation
Q4 2023 Investor Presentation March 15, 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, Free Cash Flow, and Comparabl
Slide 4: Agenda
Agenda Presenters 1 2023 Results 5 2 Looking Forward to 2024 9 3 Financial Highlights 19 4 Q&A 27 Peter Cannito Jonathan Baliff Chairman & Chief Executive Officer Chief Financial Officer & Director 1. Insert Footnote 4
Slide 5: 2023 Results
2023 Results Peter Cannito, Chairman and CEO IBDM 1. Insert Footnote 5
Slide 6: Q4 2023 Finishing Strong
Q4 2023 Finishing Strong +18.2% +$17.7M +$20.5M Improvement in Improvement in Improvement in Revenue Net Income Cash from Operations from Q4 2022 to Q4 2023 from Q4 2022 to Q4 2023 from Q4 2022 to Q4 2023 +$2.5M +$18.1M 2.81x Improvement in Improvement in Book-to-Bill Ratio Adjusted EBITDA1 Free Cas
Slide 7: 2023 Full Year Results
2023 Full Year Results $243.8M $15.3M Record Revenue at the Positive top of our $220-$250M Adjusted Guidance Range EBITDA1 $1.2M $300.0M 1.23x Positive Cash from Contracts Book-to-Bill2 Operations Awarded2 Ratio Credit: Maxar Space Systems 1. Insert Footnote Unless otherwise noted, financial informa
Slide 8: Full Year 2023 Excellence in Execution
Full Year 2023 Excellence in Execution +51.9% +$103.4M +$32.9M Improvement in Improvement in Improvement in Revenue Net Income Cash from Operations from 2022 to 2023 from 2022 to 2023 from 2022 to 2023 +$26.3M +$28.7M 24 Improvement in Improvement in Infrastructure Solutions, Systems, Adjusted EBITD
Slide 9: Looking Forward to 2024
Looking Forward to 2024 Peter Cannito, HERA Rendering Chairman and CEO 1. Insert Footnote 9
Slide 10: Massive Expansion in Infrastructure
Massive Expansion in Infrastructure • Expected strong demand driven by: ◦ Space as a warfighting domain ◦ Growth in lunar infrastructure ◦ Proliferation of satellites 1. Insert Footnote 10
Slide 11: Focus on Core Offerings
Focus on 6 Core Offerings IBDM iROSA Credit: NASA "Eyes of Orion" Avionics Power Structures & & Sensors Generation Mechanisms PROBA-3 rendering Link-16 Antenna Rendering Credit: ESA Credit: Redwire Radio Frequency Platforms, Payloads & Microgravity 1. Insert Footnote Systems Missions Payloads 11
Slide 12: 2024 Growth Strategy
2024 Growth Strategy • Protecting the core • Scaling production • Moving up the value chain • Venture optionality DARPA LunA-10 Rendering 1. Insert Footnote 12
Slide 13: Protecting the Core: Warfighter Communications
Protecting the Core Warfighter Communications Antennas for 50+ Spacecraft Redwire has delivered antennas supporting over 50 spacecraft for a national security constellation Link-16 Antenna Rendering Credit: Redwire 1. Insert Footnote 13
Slide 14: Scaling Production: $142+ Million Contract Award
Scaling Production Proven Strategic Partner for Customers $142+ Million Contract award for power solutions to an undisclosed satellite manufacturer 1. Insert Footnote 14
Slide 15: Moving Up the Value Chain: SabreSat
Moving Up the Value Chain VLEO operations for National Security SabreSat Redwire is investing in the development of a VLEO - or very low Earth orbit - spacecraft called SabreSat. VLEO is poised to play a pivotal role in shaping the dynamics of space-based defense strategies. SabreSat Rendering Credi
Slide 16: Venture Optionality: PIL-02
Venture Optionality Pharmaceutical Development in Microgravity PIL-02 The second mission for our PIL-BOX platform, in partnership with Eli Lilly, is focused on chronic diseases. This marks Eli Lilly's second spaceflight with PIL-BOX in less than four months. The inaugural mission launched November 2
Slide 17: Backlog Growth Demonstrates Heritage + Innovation Differentiation
Backlog Growth Demonstrates the Heritage + Innovation Differentiation 1 Contracted Backlog Detail ~$4.8B ~$944M $313 $373 Pipeline as of 2023 Year-to-Date +19.1% December 31, 2023 submitted bids as of December 31, 2023 $178.2M 2.81x Q4 2023 Q4 2023 Contract Awards Book-to-Bill1 12/31/2022 12/31/2023
Slide 18: 2024 Outlook
2024 Outlook Revenue Guidance $400 +23% • Global Revenue Growth $350 ◦ We are forecasting full year 2024 revenues $300 $300 to be $300M Year-to-Date Revenues (in millions) ◦ 23% forecasted year-over-year growth $250 $244 $200 • Excellence in Execution $150 ◦ Continue to improve operating leverage an
Slide 19: Financial Highlights
Financial Highlights Jonathan Baliff, Chief Financial Officer RF Testing Chamber 1. Insert Footnote 19
Slide 20: Q4 2023 Continued Positive Momentum
Q4 2023 Continued Positive Momentum % $63.5 $15.7 .2 +18 $63.5M $53.7 $(8.2)M $15.7M 0.5M $(8.2) +$2 Record Net Cash from .7 17 +$ Revenue Loss $(25.9) Operations $(4.8) Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 $1.7 $1.7M $12.6M $12.6 .1M M .5 8 +$2 +$1 Adjusted Free Cash EBITDA1 $(0.8) Flow1
Slide 21: Full Year 2023 Excellence in Execution
Full Year 2023 Excellence in Execution $243.8 $1.2 $243.8M $(27.3)M $1.2M % 1.9 $(27.3) +5 $160.5 .9M 2 .4M +$3 Record Net Cash from 03 +$1 Revenue Loss $(130.6) Operations $(31.7) 2022 2023 2022 2023 2022 2023 $15.3 $15.3M .3M +$2 6 $(7.1)M $(7.1) .7M Adjusted Free Cash 8 +$2 EBITDA1 Flow1 $(11.0)
Slide 22: Quarterly Revenues
Quarterly Revenues Increase in revenues to 18.2% $63.5 for Q4 2023 vs. $53.7 for Q4 2022 • 1.4% increase in revenues from Sequential Quarterly Revenues Q3 2023 to Q4 2023 $70.0 Quarter-to-Date Revenues (in millions) $62.6 $63.5 $60.1 • 15.5% increase in Q4 2023 vs. $60.0 $57.6 Q4 2022, excluding Spa
Slide 23: Full Year 2023 Revenues
Full Year 2023 Revenues Increase in revenues to 51.9% $243.8 for 2023 vs. $160.5 • 26.9% increase over 2022, for 2022 excluding Space NV1 Full Year 2022 to 2023 Revenues • Revenues by geographic location $300.0 Year-to-Date Revenues (in millions) of the customers were 71.0% from $250.0 $54.9 $243.8
Slide 24: Quarterly Adjusted EBITDA
Quarterly Adjusted EBITDA • Primarily driven by better contract Improvement in Adjusted mix and revenue growth which led to an increase in Gross Profit from +$2.5M EBITDA in Q4 2023 vs. Q4 2022 $8.6M to $10.7M in Q4 2022 vs. Q4 Quarterly Adjusted EBITDA 2023 $6.0 $4.9 Quarter-to-Date Adjusted EBITDA
Slide 25: Continued Investments for Growth and Scale
Continued Investments for Growth and Scale $8.3M $5.0M $3.6M FY2023 FY2023 FY2023 Capital Research and ERP and SOX Expenditures Development Investments 1. Insert Footnote 25
Slide 26: Quarterly Free Cash Flow and Liquidity
Quarterly Free Cash Flow and Liquidity Q4 2023 record Free Cash $12.6M Flow1; a year-over-year improvement of $18.1M $48.3M Ending liquidity as of December 31, 2023 Quarterly Free Cash Flow 1 Quarterly Total Available Liquidity $20.0 $60.0 $12.6 $53.3 Quarter-to-Date Total Liquidity (in Quarter-to-D
Slide 27: Questions & Answers
Questions & Answers 1. Insert Footnote 27
Slide 28: Appendix
Appendix > 28
Slide 29: Q4 2023 Quarter-to-Date Performance
Q4 2023 Quarter-to-Date Performance Three Months Ended $ Change from prior % Change from prior ($ in thousands, except percentages) December 31, 2023 December 31, 2022 year period year period Revenues $ 63,485 $ 53,705 $ 9,780 18 % Cost of sales 52,754 45,112 7,642 17 Gross margin 10,731 8,593 2,138
Slide 30: 2023 Year-to-Date Performance
2023 Year-to-Date Performance Year Ended $ Change from prior % Change from prior ($ in thousands, except percentages) December 31, 2023 December 31, 2022 year period year period Revenues $ 243,800 $ 160,549 $ 83,251 52 % Cost of sales 185,831 131,854 53,977 41 Gross margin 57,969 28,695 29,274 102 O
Slide 31: 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 Year Ended generally accepted accounting principles in the United States. December 31, December 31, (in thousands) 2023 2022 Adjusted EBITDA
Slide 32: 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) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 ii. Redwire recorded adjustments relate
Slide 33: Supplemental Non-GAAP Information, Continued
Supplemental Non-GAAP Information, Continued Year Ended Free Cash Flow December 31, December 31, 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 $ 1,231 $ (31
Slide 34: Key Performance Indicators
Key Performance Indicators Contracted Backlog We view growth in backlog as a key measure of our business growth. Contracted backlog December 31, December 31, represents the estimated dollar value of firm funded executed contracts for which work (in thousands) 2023 2022 has not been performed (also k