Redwire Corporation

Greetings and welcome to the Redwire Space fourth quarter and full year 2023 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the event, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jeff Zunich, Senior Vice President, Financial Planning and Analysis and Investor Relations. Thank you. You may begin.

Thank you, Jessie. And good morning, everyone. Welcome to Redwire's fourth quarter and full year 2023 earnings call. We hope that you've seen our earnings release, which we issued yesterday afternoon. It has also been posted in the investor relations section of our website at redwirespace.com. Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions, subject to risks and uncertainties that are described in more detail on slide two. Additionally, to the extent we discuss non-GAAP measures during the call, please see slide three, our earnings release, or the investor presentation on our website for the calculation of these measures and GAAP reconciliations. As previously mentioned, I am Jeff Zunig, Redwire Senior Vice President of Financial Planning and Analysis and Investor Relations. Joining me on today's call are Peter Conito, Chairman and Chief Executive Officer, and Jonathan Bayless, Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete?

Thank you, Jeff. During today's call, I will take you through a discussion of our key accomplishments in the fourth quarter and full year 2023, followed by a discussion of our outlook for 2024. Then Jonathan will present the financial highlights for the same fourth quarter and full year 2023 periods. after which we will open the floor for Q&A. Please turn to slide six. The fourth quarter of last year was another excellent quarter for Redwild, during which we continued our positive momentum. We have now delivered four consecutive quarters of positive adjusted EBITDA and revenue growth. During the fourth quarter, we achieved $63.5 million in Q4 revenue, an 18.2% improvement over Q4 2022. We achieved positive adjusted EBITDA of $1.7 million in Q4, a $2.5 million increase on a year-over-year basis from the fourth quarter of 2022 to the fourth quarter of 2023. We narrowed our net loss to $8.2 million, a $17.7 million year-over-year improvement from the fourth quarter of 2022. We achieved free cash flow of positive $12.6 million, a year-over-year improvement of $18.1 million. We also achieved cash from operations of positive $15.7 million, a year-over-year improvement of $20.5 million And finally, we achieved a book-to-bill ratio of 2.81 times during the quarter. It was a fantastic quarter for bookings. Please move to slide seven. In addition to a strong fourth quarter, I am very pleased to report that 2023 was a record year for financial performance at RedLive. Financial results for our shareholders. During 2023, we achieved record revenues of $243.8 million, which was at the top of our annual guidance range of between $220 million to $250 million. We achieved positive adjusted EBITDA of $15.3 million and positive cash from operations of $1.2 million for the full year. We also received $300 million in contracts awarded during the year and had a full year book-to-bill ratio of 1.23 times. Our heritage plus innovation strategy is working. Please turn to slide eight. By focusing on the fundamental building blocks of space, we are meeting the expanding demand of our customers for Redwire's differentiated core offerings. For the full year of 2023, we grew revenue 51.9% from 2022 to 2023. We narrowed our net loss to $27.3 million, a $103.4 million improvement from 2022 to 2023.