Redwire Corporation

Good day, ladies and gentlemen, and welcome to Redwire's year-end 2021 earnings conference call. My name is Hector, and I'll be your operator for today. As a reminder, this call is being recorded. I would now like to introduce your host for today's conference call, Michael Shannon, Treasurer and Head of Investor Relations. Mr. Shannon, you may begin your conference.

Thank you. Good evening, everyone, and welcome to Redwire's fourth quarter 2021 and full-year earnings conference call. I'm here today with Peter Canedo, Redwire's Chairman and CEO, Andrew Rush, Redwire's President and COO, and Bill Reed, Redwire's CFO. I will begin by referring you to the Safe Harbor disclaimer in our earnings press release, which is posted to the investor relations section of the website. During today's call, we may make certain forward-looking statements. These statements are based on current expectations and assumptions, and as a result, are subject to risks and uncertainties. Many factors could cause actual events to differ materially from the forward-looking statements made on this call. For more information about these risks and uncertainties, please refer to the press release issued today. Readers are cautioned not to put undue reliance on forward-looking statements, and Redwire specifically disclaims any obligation to update or revise any forward-looking statements that may be discussed during this call. During this call, we may also refer to both GAAP and non-GAAP financial measures. you could find definitions and reconciliations of our gap to non-gap measures included in our press release. With that, I'd like to turn the call over to Peter Canino.

Thanks, Mike, and good evening, everyone, and thank you for joining the call today. We're pleased to be here today to discuss our financial results for 2021. This is an important milestone, and I'm appreciative of the hard work of our entire team to get us to this point, and I'm grateful to lead such a talented group. 2021 was a transformative year for Redwire as we assembled an incredible set of differentiated capabilities and demonstrated numerous technical successes in space. At Redwire, we are a positive conduit for accelerating humanity's expansion into space by delivering reliable, economical, and sustainable space infrastructure. And we are eager to realize the significant opportunities before us as a key part of the next generation space economy. For those of you who are new to the Redwire story, we have combined over 50 years of space heritage from our legacy brands with some of the fastest growing new space innovators in the industry to form our differentiated heritage plus innovation strategy. Our goal is to become the leading designer, developer, and supplier of highly engineered components, systems, subsystems, and software critical to the future of space. As a key mission enabler, we believe our products and services can enhance nearly every space mission. And as a result, we work with a wide variety of customers in the civil, national security, and rapidly growing commercial space sectors. Much like infrastructure on Earth is the basis for our terrestrial economy, the development of the space economy requires the deployment of core space infrastructure as its foundation. Redwire provides the key building blocks for this foundational infrastructure, including power, avionics, advanced sensors, deployable structures, communication components, digital engineering, and innovative payloads that we believe will enable the future of secure and sustainable space commerce. What differentiates Redwire from our competitors is this unique combination of proven flight heritage of a traditional space company combined with our innovative capabilities and culture. Our legacy has earned the trust of our customers, and our cutting-edge technology provides them the infrastructure to enable their programs to accelerate their future space solutions. Through our legacy companies, Redwire has deployed mission-critical space capabilities throughout our solar system for over 50 years. We have supported missions that operate in low and medium Earth orbits missions that deployed solar probes to the sun, and deep space missions to Pluto and beyond. With 186 missions flown to date, we have proven our ability to operate and deploy innovative technologies in commercial, civil, and national security applications. Redwire's broad portfolio of intellectual property in the areas of on-orbit 3D printing and manufacturing, space biotechnology, rollout solar arrays, enterprise digital engineering software, and many more give us a superior competitive edge. Now, turning to our 2021 results. Despite the numerous challenges of the global COVID-19 pandemic and delays in government budgets, 2021 proved to be a successful year. Redwire posted robust triple-digit revenue growth compared with 2020. and demonstrated agility in navigating the current economic environment. Additionally, Redwire generated over 260% growth in gross profit and 103% growth in pro forma adjusted EBITDA through both organic and inorganic growth. In 2021, as a leading platform for industry consolidation, we continued our successful track record of mergers and acquisitions. In the first quarter of 2021, we added critical capabilities in solar arrays, deployable structures, and digital engineering enterprise software through the acquisitions of deployable space systems and Oakman Aerospace. In the fourth quarter of 2021, we acquired TechShot, Inc., a leader in space biotechnology and advanced payloads with cutting-edge 3D in-space bioprinting capabilities. TechShot is a natural fit with our 3D printing capabilities, and the combination fits perfectly with our heritage plus innovation strategy, bringing together leading innovations in the field of in-space manufacturing and decades of experience successfully operating in space. The acquisition is value accretive, and we see significant scale opportunities and expect the TechShot biotech and in-space biotechnology to be foundational to the future of space commercialization. It's also worth noting that our total year-end backlog of $272 million far exceeds our total 2022 revenue guidance, which Bill will share with you shortly. The growing backlog was driven by our ability to continue working on and winning several new opportunities last year across commercial, civil, and national security customers. We believe this robust backlog demonstrates the strength and breadth of our suite of breakout space infrastructure solutions and gives us considerable visibility in the future year revenue and long-term revenue growth. The opportunity before us is substantial with many growth catalysts. The public's renewed interest in human space exploration is driving tremendous growth in the civil sector. Current geopolitical competition in space and the formation of the Space Force is driving double-digit growth in space national security budgets. Growth is also coming from commercial sector players that need increased data communications and remote sensing applications for large commercial satellite constellations. In fact, despite the pandemic, last year saw the biggest private investment in space to date. By 2025, experts predict a 230% increase in satellite launches per year with 24,000 satellite launches currently being planned. Experts are predicting the number of satellites in space will increase from roughly 6,000 in April 2020 to approximately 50,000 by 2030. With launch costs continually declining and the onset of smaller and more efficient satellite technology, we believe we are at the beginning of a new golden age of space, with significant commercial opportunities ahead. Space is the next frontier poised for rapid and expansive growth, with the industry now estimated to reach $2 trillion by 2040. And as we like to say here at Redwire, when space wins, Redwire wins. As a critical partner and key enabler in space, providing foundational technologies with demonstrated performance, Redwire is poised to take advantage of this rapidly expanding market. With that, I will now turn the call over to Andrew to outline some of our specific technical achievements and key programs.