These factors and circumstances include, but are not limited to: (1) the company’s limited operating history; (2) matters relating to or arising from the company’s Audit Committee investigation, including regulatory investigations and proceedings, litigation matters, and potential additional expenses, may adversely affect our business and results of operations; (3) the possibility that the company’s assumptions relating to future results may prove incorrect; (4) the inability to successfully integrate recently completed and future acquisitions; (5) the emerging nature of the market for in-space infrastructure services; (6) the inability to convert orders in backlog into revenue; (7) early termination, audits, investigations, sanctions and penalties with respect to government contracts; (8) data breaches or incidents involving the company’s technology; (9) the company’s dependence on senior management and other highly skilled personnel; (10) significant fluctuation of our operating results; (11) incurrence of significant expenses and capital expenditures to execute our business plan; (12) the need for substantial additional funding to finance our operations, which may not be available when we need it, on acceptable terms or at all; (12) the impacts of COVID-19 on the company’s business, including as a result of current supply chain constraints, labor shortage and inflationary pressures; (13) adverse publicity stemming from any incident involving the company or its competitors; (14) any delays in the development, design, engineering and manufacturing of our products and services; (15) material weaknesses in our internal control over financial reporting that are unremediated; (16) inability to meet stock exchange listing standards; (17) the ability to recognize the anticipated benefits of the business combination Genesis Park Acquisition Corp., which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (18) costs related to the business combination with Genesis Park Acquisition Corp.; (19) changes in applicable laws or regulations; (20) the possibility that the company may be adversely affected by other economic, business, and/or competitive factors; and (15) other risks and uncertainties described in our Prospectus filed pursuant to Rule 424(b)(3) on October 4, 2021 and those indicated from time to time in other documents filed or to be filed with the SEC by the company.
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. If underlying assumptions to forward looking statements prove inaccurate, or if known or unknown risks or uncertainties materialize, actual results could vary materially from those anticipated, estimated, or projected. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company disclaims any intention or obligation, other than imposed by law, to update or revise any forward looking statements, whether as a result of new information, future events, or otherwise. Persons reading this press release are cautioned not to place undue reliance on forward looking statements.
Non-GAAP Financial Information
This press release contains financial measures that have not been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). These financial measures include Total backlog, Adjusted EBITDA, and Pro Forma Adjusted EBITDA.
We use certain financial measures to evaluate our operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources which are not calculated in accordance with U.S. GAAP and are considered to be Non-GAAP financial performance measures. These Non-GAAP financial performance measures are used to supplement the financial information presented on a U.S. GAAP basis and should not be considered in isolation or as a substitute for the relevant U.S. GAAP measures and should be read in conjunction with information presented on a U.S. GAAP basis. Because not all companies use identical calculations, our presentation of Non-GAAP measures may not be comparable to other similarly titled measures of other companies.
Adjusted EBITDA and Pro Forma Adjusted EBITDA are two such Non-GAAP financial measures that we use. Adjusted EBITDA is defined as net loss adjusted for interest expense, income tax expense (benefit), depreciation and amortization, acquisition deal costs, acquisition integration costs, acquisition earnout costs, purchase accounting fair value adjustment related to deferred revenue, capital market and advisory fees, write-off of long-lived assets, equity-based compensation and warrant liability change in fair value adjustment. Pro Forma Adjusted EBITDA is computed in accordance with Article 8 of Regulation S-X and is computed to give effect to the business combinations as if they occurred on January 1 of the year in which they occurred.
About Redwire Corporation
Redwire Corporation (NYSE: RDW) is a leader in mission critical space solutions and high reliability components for the next generation space economy, with valuable IP for solar power generation and in-space 3D printing and manufacturing. With decades of flight heritage combined with the agile and innovative culture of a commercial space platform, Redwire is uniquely positioned to assist its customers in solving the complex challenges of future space missions. For more information, please visit www.redwirespace.com.
REDWIRE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (In thousands of U.S. dollars, except share and per share amounts) |
||||||||||||
|
Successor |
|
|
Predecessor |
||||||||
|
Year Ended
|
|
Period from
|
|
|
Period from
|
||||||
Revenues |
$ |
137,601 |
|
|
$ |
40,785 |
|
|
|
$ |
16,651 |
|
Cost of sales |
|
108,224 |
|
|
|
32,676 |
|
|
|
|
12,623 |
|
Gross margin |
|
29,377 |
|
|
|
8,109 |
|
|
|
|
4,028 |
|
Operating expenses: |
|
|
|
|
|
|
||||||
Selling, general and administrative |
|
78,695 |
|
|
|
13,103 |
|
|
|
|
5,260 |
|
Contingent earnout expense |
|
11,337 |
|
|
|
— |
|
|
|
|
— |
|
Transaction expenses |
|
5,016 |
|
|
|
9,944 |
|
|
|
|
— |
|
Research and development |
|
4,516 |
|
|
|
2,008 |
|
|
|
|
387 |
|
Operating income (loss) |
|
(70,187 |
) |
|
|
(16,946 |
) |
|
|
|
(1,619 |
) |
Interest expense, net |
|
6,456 |
|
|
|
1,072 |
|
|
|
|
76 |
|
Other (income) expense, net |
|
(3,837 |
) |
|
|
15 |
|
|
|
|
23 |
|
Income (loss) before income taxes |
|
(72,806 |
) |
|
|
(18,033 |
) |
|
|
|
(1,718 |
) |
Income tax expense (benefit) |
|
(11,269 |
) |
|
|
(3,659 |
) |
|
|
|
(384 |
) |
Net income (loss) |
$ |
(61,537 |
) |
|
$ |
(14,374 |
) |
|
|
$ |
(1,334 |
) |
|
|
|
|
|
|
|
||||||
Net income (loss) per share, basic and diluted |
$ |
(1.36 |
) |
|
$ |
(0.39 |
) |
|
|
$ |
— |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
||||||
Basic and diluted |
|
45,082,544 |
|
|
|
37,200,000 |
|
|
|
|
— |
|
|
|
|
|
|
|
|
||||||
Comprehensive income (loss): |
|
|
|
|
|
|
||||||
Net income (loss) |
$ |
(61,537 |
) |
|
$ |
(14,374 |
) |
|
|
$ |
(1,334 |
) |
Foreign currency translation gain (loss), net of tax |
|
(403 |
) |
|
|
506 |
|
|
|
|
2 |
|
Total other comprehensive income (loss), net of tax |
|
(403 |
) |
|
|
506 |
|
|
|
|
2 |
|
Total comprehensive income (loss) |
$ |
(61,940 |
) |
|
$ |
(13,868 |
) |
|
|
$ |
(1,332 |
) |
REDWIRE CORPORATION CONSOLIDATED BALANCE SHEETS ( Unaudited ) (In thousands of U.S. dollars, except share data) |
|||||||
|
Successor |
||||||
|
December 31,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
20,523 |
|
|
$ |
22,076 |
|
Accounts receivable, net |
|
16,262 |
|
|
|
6,057 |
|
Contract assets |
|
11,748 |
|
|
|
4,172 |
|
Inventory |
|
688 |
|
|
|
330 |
|
Income tax receivable |
|
688 |
|
|
|
688 |
|
Related party receivable |
|
— |
|
|
|
4,874 |
|
Prepaid insurance |
|
2,819 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
2,488 |
|
|
|
1,109 |
|
Total current assets |
|
55,216 |
|
|
|
39,306 |
|
Property, plant and equipment, net |
|
19,384 |
|
|
|
3,262 |
|
Goodwill |
|
96,314 |
|
|
|
52,711 |
|
Intangible assets, net |
|
90,842 |
|
|
|
60,961 |
|
Deferred tax assets |
|
— |
|
|
|
— |
|
Other non-current assets |
|
— |
|
|
|
534 |
|
Total assets |
$ |
261,756 |
|
|
$ |
156,774 |
|
|
|
|
|
||||
Liabilities and Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
13,131 |
|
|
$ |
7,158 |
|
Notes payable to sellers |
|
1,000 |
|
|
|
1,827 |
|
Short-term debt, including current portion of long-term debt |
|
2,684 |
|
|
|
1,074 |
|
Accrued expenses |
|
17,118 |
|
|
|
7,462 |
|
Deferred revenue |
|
15,734 |
|
|
|
15,665 |
|
Other current liabilities |
|
1,571 |
|
|
|
378 |
|
Total current liabilities |
|
51,238 |
|
|
|
33,564 |
|
Long-term debt |
|
74,867 |
|
|
|
76,642 |
|
Warrant liabilities |
|
19,098 |
|
|
|
— |
|
Deferred tax liabilities |
|
8,601 |
|
|
|
7,367 |
|
Other non-current liabilities |
|
730 |
|
|
|
6 |
|
Total liabilities |
|
154,534 |
|
|
|
117,579 |
|
Shareholders’ Equity: |
|
|
|
||||
Preferred stock, $0.0001 par value, 100,000,000 shares authorized; none issued and outstanding as of December 31, 2021 |
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value, 500,000,000 shares authorized; 62,690,868 issued and outstanding as of December 31, 2021 and 37,200,000 issued and outstanding as of December 31, 2020 |
|
6 |
|
|
|
4 |
|
Additional paid-in capital |
|
183,024 |
|
|
|
53,059 |
|
Accumulated deficit |
|
(75,911 |
) |
|
|
(14,374 |
) |
Accumulated other comprehensive income (loss) |
|
103 |
|
|
|
506 |
|
Shareholders’ equity |
|
107,222 |
|
|
|
39,195 |
|
Total liabilities and shareholders’ equity |
$ |
261,756 |
|
|
$ |
156,774 |
|
REDWIRE CORPORATION