Revenues for the first quarter of 2024
increased 52.4% year-over-year to $87.8 million
Net Loss was $(8.1) million and Adjusted
EBITDA1 was $4.3 million for the first quarter of 2024
Net cash provided by operating activities
for the first quarter of 2024 improved year-over-year by $16.8
million to positive $2.8 million and Free Cash Flow1 improved by
$15.2 million to positive $0.4 million
Meaningful increase in pipeline to
approximately $6.3 billion with $610.0 million in bids submitted
year-to-date through March 31, 2024
Under contract for 18 ship sets of antennas
and RF hardware for the SDA Transport Layer; Awarded first study
related to SabreSat VLEO platform
Redwire Corporation (NYSE: RDW), a leader in space
infrastructure for the next generation space economy, today
announced results for its first quarter ended March 31, 2024.
Redwire will live stream a presentation with slides on May 9,
2024 at 9:00 a.m. ET. Please use the link below to follow along
with the live stream:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=8AZMVZ7u
“During the first quarter we executed on our 2024 growth
strategy as planned, resulting in both record revenue of $87.8
million and positive Adjusted EBITDA1,” stated Peter Cannito,
Chairman and Chief Executive Officer of Redwire. “We’ve started the
year strong with many large, transformative opportunities in the
pipeline.”
First Quarter 2024
Highlights
- Revenues for the first quarter of 2024 increased 52.4% to $87.8
million, as compared to $57.6 million for the first quarter of
2023.
- Net Loss for the first quarter of 2024 increased by $0.8
million to $(8.1) million, as compared to $(7.3) million for the
first quarter of 2023.
- Adjusted EBITDA1 for the first quarter of 2024 was flat with
the first quarter of 2023 at $4.3 million.
- On a last twelve month (LTM) basis, Book-to-Bill2 ratio was
1.11 as of the first quarter of 2024, as compared to 1.76 as of the
first quarter of 2023.
- Net cash provided by operating activities for the first quarter
of 2024 improved by $16.8 million to $2.8 million, as compared to
net cash (used in) operating activities of $(14.0) million for the
first quarter of 2023.
- Free Cash Flow3 for the first quarter of 2024 improved by $15.2
million to $0.4 million, as compared to $(14.8) million for the
first quarter of 2023.
2024 Forecast
- For the full year ended December 31, 2024, Redwire affirms that
it is forecasting revenues of $300 million.
“Redwire has started 2024 strong, with record first quarter
revenue of $87.8 million, a 52.4% improvement year-over-year,” said
Jonathan Baliff, Chief Financial Officer of Redwire. “We achieved
positive Adjusted EBITDA3 of $4.3 million, a significant sequential
increase from the fourth quarter of 2023. Importantly, we achieved
a positive net cash flow from operations of $2.8 million and
positive Free Cash Flow3 of $0.4 million while investing record
amounts for first quarter Research & Development and CapEx. We
expect continued momentum throughout the year with more than $600
million in organic bids already submitted in 2024, as we continue
to scale and diversify our business on a proven path to
profitability.”
Webcast and Investor
Call
Management will conduct a conference call starting at 9:00 a.m.
ET on Thursday, May 9, 2024 to review financial results for the
first quarter ended March 31, 2024. This release and the most
recent investor slide presentation are available in the investor
relations area of our website at redwirespace.com.
Redwire will live stream a presentation with slides during the
call. Please use the following link to follow along with the live
stream:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=8AZMVZ7u.
The dial-in number for the live call is 877-485-3108 (toll free) or
201-689-8264 (toll), and the conference ID is 13746058.
A telephone replay of the call will be available for two weeks
following the event by dialing 877-660-6853 (toll-free) or
201-612-7415 (toll) and entering the access code 13746058. The
accompanying investor presentation will be available on May 9, 2024
on the investor section of Redwire’s website at
redwirespace.com.
Any replay, rebroadcast, transcript or other reproduction or
transmission of this conference call, other than the replay
accessible by calling the number and website above, has not been
authorized by Redwire Corporation and is strictly prohibited.
Investors should be aware that any unauthorized reproduction of
this conference call may not be an accurate reflection of its
contents.
_________________________________________
1
Adjusted EBITDA and Free Cash Flow are not
measures of results under generally accepted accounting principles
in the United States. Please refer to “Non-GAAP Financial
Information” and the reconciliation tables included in this press
release for details regarding these Non-GAAP measures.
2
Book-to-bill is a key business measure.
Please refer to “Key Performance Indicators” and the tables
included in this press release for additional information.
3
Adjusted EBITDA and Free Cash Flow are not
measures of results under generally accepted accounting principles
in the United States. Please refer to “Non-GAAP Financial
Information” and the reconciliation tables included in this press
release for details regarding these Non-GAAP measures.
About Redwire
Corporation
Redwire Corporation (NYSE:RDW) is a global space infrastructure
and innovation company enabling civil, commercial, and national
security programs. Redwire’s proven and reliable capabilities
include avionics, sensors, power solutions, critical structures,
mechanisms, radio frequency systems, platforms, missions, and
microgravity payloads. Redwire combines decades of flight heritage
and proven experience with an agile and innovative culture.
Redwire’s approximately 700 employees working from 14 facilities
located throughout the United States and Europe are committed to
building a bold future in space for humanity, pushing the envelope
of discovery and science while creating a better world on Earth.
For more information, please visit www.redwirespace.com.
Cautionary Statement Regarding
Forward-Looking Statements
Readers are cautioned that the statements contained in this
press release regarding expectations of our performance or other
matters that may affect our business, results of operations, or
financial condition are “forward-looking statements” as defined by
the “safe harbor” provisions in the Private Securities Litigation
Reform Act of 1995. Such statements are made in reliance on the
safe harbor provisions of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. All
statements, other than statements of historical fact, included or
incorporated in this press release, including statements regarding
our strategy, financial position, guidance, funding for continued
operations, cash reserves, liquidity, projected costs, plans,
projects, awards and contracts, and objectives of management, among
others, are forward-looking statements. Words such as “expect,”
“anticipate,” “should,” “believe,” “hope,” “target,” “continued,”
“project,” “plan,” “goals,” “opportunity,” “appeal,” “estimate,”
“potential,” “predict,” “demonstrates,” “may,” “will,” “might,”
“could,” “intend,” “shall,” “possible,” “forecast,” “trends,”
“contemplate,” “would,” “approximately,” “likely,” “outlook,”
“schedule,” “on track,” “poised,” “pipeline,” and variations of
these terms or the negative of these terms and similar expressions
are intended to identify these forward-looking statements, but the
absence of these words does not mean that a statement is not
forward-looking. These forward-looking statements are not
guarantees of future performance, conditions or results.
Forward-looking statements are subject to a number of risks and
uncertainties, many of which involve factors or circumstances that
are beyond our control.
These factors and circumstances include, but are not limited to:
(1) risks associated with the continued economic uncertainty,
including high inflation, supply chain challenges, labor shortages,
high interest rates, foreign currency exchange volatility, concerns
of economic slowdown or recession and reduced spending or
suspension of investment in new or enhanced projects; (2) the
failure of financial institutions or transactional counterparties;
(3) the Company’s limited operating history and history of losses
to date; (4) the inability to successfully integrate recently
completed and future acquisitions; (5) the development and
continued refinement of many of the Company’s proprietary
technologies, products and service offerings; (6) competition with
new or existing companies; (7) the possibility that the Company’s
expectations and assumptions relating to future results may prove
incorrect; (8) adverse publicity stemming from any incident or
perceived risk involving Redwire or our competitors; (9)
unsatisfactory performance of our products resulting from
challenges in the space environment, extreme space weather events,
or otherwise; (10) the emerging nature of the market for in-space
infrastructure services; (11) inability to realize benefits from
new offerings or the application of our technologies; (12) the
inability to convert orders in backlog into revenue; (13) our
dependence on U.S. government contracts, which are only partially
funded and subject to immediate termination; (14) the fact that we
are subject to stringent U.S. economic sanctions, and trade control
laws and regulations; (15) 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; (16) the fact that the
issuance and sale of shares of our Series A Convertible Preferred
Stock has reduced the relative voting power of holders of our
common stock and diluted the ownership of holders of our capital
stock; (17) AE Industrial Partners and Bain Capital have
significant influence over us, which could limit your ability to
influence the outcome of key transactions; (18) provisions in our
Certificate of Designation with respect to our Series A Convertible
Preferred Stock may delay or prevent our acquisition by a third
party, which could also reduce the market price of our capital
stock; (19) our Series A Convertible Preferred Stock has rights,
preferences and privileges that are not held by, and are
preferential to, the rights of holders of our other outstanding
capital stock; (20) there may be sales of a substantial amount of
our common stock by our current stockholders, and these sales could
cause the price of our common stock and warrants to fall; (21) the
impact of the issuance of the Series A Convertible Preferred Stock
on the price and market for our common stock; (22) the trading
price of our common stock and warrants is and may continue to be
volatile; (23) risks related to short sellers of our common stock;
(24) our management team’s limited experience operating a public
company; (25) inability to report our financial condition or
results of operations accurately or timely as a result of
identified material weaknesses in internal control over financial
reporting; and (26) other risks and uncertainties described in our
most recent Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q 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 Adjusted EBITDA, Pro Forma Adjusted EBITDA, and Free Cash
Flow.
Non-GAAP financial 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 is defined as net income (loss) adjusted
for interest expense, net, income tax expense (benefit),
depreciation and amortization, impairment expense, acquisition deal
costs, acquisition integration costs, acquisition earnout costs,
purchase accounting fair value adjustment related to deferred
revenue, severance costs, capital market and advisory fees,
litigation-related expenses, write-off of long-lived assets,
equity-based compensation, committed equity facility transaction
costs, debt financing costs, and warrant liability change in fair
value adjustments. Pro Forma Adjusted EBITDA is defined as
Adjusted EBITDA further adjusted for the incremental Adjusted
EBITDA that acquired businesses would have contributed for the
periods presented if such acquisitions had occurred on January 1 of
the year in which they occurred. Accordingly, historical financial
information for the businesses acquired includes pro forma
adjustments calculated in a manner consistent with the concepts of
Article 8 of Regulation S-X, which are ultimately added back in the
calculation of Adjusted EBITDA. Free Cash Flow is computed
as net cash provided by (used in) operating activities less capital
expenditures.
We use Adjusted EBITDA and Pro Forma Adjusted EBITDA 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. We use Free Cash
Flow as a useful indicator of liquidity to evaluate our
period-over-period operating cash generation that will be used to
service our debt, and can be used to invest in future growth
through new business development activities and/or acquisitions,
among other uses. Free Cash Flow does not represent the total
increase or decrease in our cash balance, and it should not be
inferred that the entire amount of Free Cash Flow is available for
discretionary expenditures, since we have mandatory debt service
requirements and other non-discretionary expenditures that are not
deducted from this measure. We believe Pro Forma Adjusted EBITDA
provides meaningful insights into the impact of strategic
acquisitions as well as an indicative run rate of the Company’s
future operating performance.
Key Performance
Indicators
Management uses Key Performance Indicators (“KPIs”) to assess
the financial performance of the Company, monitor relevant trends
and support financial, operational and strategic decision-making.
Management frequently monitors and evaluates KPIs against internal
targets, core business objectives as well as industry peers and
may, on occasion, change the mix or calculation of KPIs to better
align with the business, its operating environment, standard
industry metrics or other considerations. If the Company changes
the method by which it calculates or presents a KPI, prior period
disclosures are recast to conform to current presentation.
REDWIRE CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS Unaudited (In thousands of U.S.
dollars, except share data)
March 31, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
32,569
$
30,278
Accounts receivable, net
18,988
32,411
Contract assets
39,554
36,961
Inventory
1,612
1,516
Income tax receivable
636
636
Prepaid insurance
687
1,083
Prepaid expenses and other current
assets
5,869
6,428
Total current assets
99,915
109,313
Property, plant and equipment, net of
accumulated depreciation of $7,463 and $6,538, respectively
15,899
15,909
Right-of-use assets
12,350
13,181
Intangible assets, net of accumulated
amortization of $20,247 and $18,509, respectively
62,004
62,985
Goodwill
65,310
65,757
Equity method investments
3,589
3,613
Other non-current assets
475
511
Total assets
$
259,542
$
271,269
Liabilities, Convertible Preferred
Stock and Equity (Deficit)
Current liabilities:
Accounts payable
$
28,059
$
18,573
Short-term debt, including current portion
of long-term debt
780
1,378
Short-term operating lease liabilities
3,624
3,737
Short-term finance lease liabilities
451
439
Accrued expenses
30,734
32,902
Deferred revenue
37,172
52,645
Other current liabilities
2,593
2,362
Total current liabilities
103,413
112,036
Long-term debt, net
89,742
86,842
Long-term operating lease liabilities
11,455
12,302
Long-term finance lease liabilities
1,140
1,137
Warrant liabilities
4,400
3,325
Deferred tax liabilities
2,440
2,402
Other non-current liabilities
416
400
Total liabilities
$
213,006
$
218,444
REDWIRE CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
Unaudited
(In thousands of U.S. dollars,
except share data)
March 31, 2024
December 31, 2023
Convertible preferred stock, $0.0001 par
value, 125,292.00 shares authorized; 93,890.20 issued and
outstanding as of March 31, 2024 and December 31, 2023,
respectively. Liquidation preference of $187,780 as of March 31,
2024 and December 31, 2023, respectively.
$
96,106
$
96,106
Shareholders’ Equity (Deficit):
Preferred stock, $0.0001 par value,
99,874,708 shares authorized; none issued and outstanding as of
March 31, 2024 and December 31, 2023, respectively
—
—
Common stock, $0.0001 par value,
500,000,000 shares authorized; 65,578,724 and 65,546,174 issued and
outstanding as of March 31, 2024 and December 31, 2023,
respectively
7
7
Treasury stock, 373,420 and 353,470
shares, at cost, as of March 31, 2024 and December 31, 2023,
respectively
(1,007
)
(951
)
Additional paid-in capital
190,858
188,323
Accumulated deficit
(241,886
)
(233,791
)
Accumulated other comprehensive income
(loss)
2,236
2,903
Total shareholders’ equity
(deficit)
(49,792
)
(43,509
)
Noncontrolling interests
222
228
Total equity (deficit)
(49,570
)
(43,281
)
Total liabilities, convertible
preferred stock and equity (deficit)
$
259,542
$
271,269
REDWIRE CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS) Unaudited (In thousands of U.S. dollars, except share
and per share data)
Three Months Ended
March 31, 2024
March 31, 2023
Revenues
$
87,792
$
57,605
Cost of sales
72,967
43,388
Gross margin
14,825
14,217
Operating expenses:
Selling, general and administrative
expenses
17,362
16,038
Transaction expenses
—
9
Research and development
1,040
388
Operating income (loss)
(3,577
)
(2,218
)
Interest expense, net
2,918
2,644
Other (income) expense, net
1,492
2,427
Income (loss) before income
taxes
(7,987
)
(7,289
)
Income tax expense (benefit)
109
(31
)
Net income (loss)
(8,096
)
(7,258
)
Net income (loss) attributable to
noncontrolling interests
(1
)
—
Net income (loss) attributable to
Redwire Corporation
(8,095
)
(7,258
)
Less: dividends on Convertible Preferred
Stock
3,043
4,366
Net income (loss) available to common
shareholders
$
(11,138
)
$
(11,624
)
Net income (loss) per common
share:
Basic and diluted
$
(0.17
)
$
(0.18
)
Weighted-average shares outstanding:
Basic and diluted
65,572,286
64,280,631
Comprehensive income (loss):
Net income (loss) attributable to Redwire
Corporation
$
(8,095
)
$
(7,258
)
Foreign currency translation gain (loss),
net of tax
(672
)
418
Total other comprehensive income (loss),
net of tax
(672
)
418
Total comprehensive income
(loss)
$
(8,767
)
$
(6,840
)
REDWIRE CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (In thousands
of U.S. dollars)
Three Months Ended
March 31, 2024
March 31, 2023
Cash flows from operating
activities:
Net income (loss)
(8,096
)
(7,258
)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization expense
2,753
2,466
Amortization of debt issuance costs and
discount
170
146
Equity-based compensation expense
2,535
1,958
(Gain) loss on change in fair value of
committed equity facility
—
(106
)
(Gain) loss on change in fair value of
warrants
1,075
2,784
Deferred provision (benefit) for income
taxes
98
(131
)
Non-cash lease expense
12
26
Non-cash interest expense
—
384
Other
397
94
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable
13,174
3,394
(Increase) decrease in contract assets
(2,981
)
(9,423
)
(Increase) decrease in inventory
(100
)
18
(Increase) decrease in prepaid
insurance
396
827
(Increase) decrease in prepaid expenses
and other assets
427
(183
)
Increase (decrease) in accounts payable
and accrued expenses
7,929
(3,627
)
Increase (decrease) in deferred
revenue
(15,413
)
(4,844
)
Increase (decrease) in operating lease
liabilities
(84
)
(39
)
Increase (decrease) in other
liabilities
472
23
Increase (decrease) in notes payable to
sellers
—
(557
)
Net cash provided by (used in) operating
activities
2,764
(14,048
)
Cash flows from investing
activities:
Purchases of property, plant and
equipment, net
(1,561
)
(787
)
Purchase of intangible assets
(806
)
(12
)
Net cash provided by (used in) investing
activities
(2,367
)
(799
)
Cash flows from financing
activities:
Proceeds received from debt
5,000
—
Repayments of debt
(2,793
)
(1,094
)
Repayment of finance leases
(119
)
(77
)
Payment of committed equity facility
transaction costs
—
(571
)
Payments of issuance costs related to
convertible preferred stock
—
(52
)
Shares repurchased for settlement of
employee tax withholdings on share-based awards
(56
)
—
Payment of contingent earnout
—
(443
)
Net cash provided by (used in) financing
activities
2,032
(2,237
)
Effect of foreign currency rate changes on
cash and cash equivalents
(138
)
41
Net increase (decrease) in cash and cash
equivalents
2,291
(17,043
)
Cash and cash equivalents at beginning of
period
30,278
28,316
Cash and cash equivalents at end of
period
$
32,569
$
11,273
REDWIRE CORPORATION
Supplemental Non-GAAP Information Unaudited
Adjusted EBITDA and Pro Forma Adjusted
EBITDA
The following table presents the
reconciliations of Adjusted EBITDA and Pro Forma Adjusted EBITDA to
net income (loss), computed in accordance with U.S. GAAP.
Three Months Ended
(in thousands)
March 31, 2024
March 31, 2023
Net income (loss)
$
(8,096
)
$
(7,258
)
Interest expense, net
2,918
2,644
Income tax expense (benefit)
109
(31
)
Depreciation and amortization
2,753
2,466
Acquisition deal costs (i)
—
9
Acquisition integration costs (i)
—
306
Purchase accounting fair value adjustment
related to deferred revenue (ii)
—
15
Severance costs (iii)
8
144
Capital market and advisory fees (iv)
2,278
1,388
Litigation-related expenses (v)
701
25
Equity-based compensation (vi)
2,535
1,958
Committed equity facility transaction
costs (vii)
—
(106
)
Warrant liability change in fair value
adjustment (viii)
1,075
2,784
Adjusted EBITDA
4,281
4,344
Pro forma impact on Adjusted EBITDA
(ix)
—
—
Pro Forma Adjusted EBITDA
$
4,281
$
4,344
i.
Redwire incurred acquisition costs
including due diligence, integration costs and additional expenses
related to pre-acquisition activity.
ii.
Redwire recorded adjustments related to
the impact of recognizing deferred revenue at fair value as part of
the purchase accounting for previous acquisitions.
ii.
Redwire incurred severance costs related
to separation agreements entered into with former employees.
iv.
Redwire incurred capital market and
advisory fees related to advisors assisting with transitional
activities associated with becoming a public company, such as
implementation of internal controls over financial reporting, and
the internalization of corporate services, including, but not
limited to, implementing enhanced enterprise resource planning
systems.
v.
Redwire incurred expenses related to
securities litigation.
vi.
Redwire incurred expenses related to
equity-based compensation under Redwire’s equity-based compensation
plan.
vii.
Redwire incurred expenses related to the
committed equity facility with B. Riley, which includes
consideration paid to enter into the Purchase Agreement as well as
changes in fair value recognized as a gain or loss during the
respective periods.
viii.
Redwire adjusted the private warrant
liability to reflect changes in fair value recognized as a gain or
loss during the respective periods.
ix.
Pro forma impact is computed in a manner
consistent with the concepts of Article 8 of Regulation S-X and
represents the incremental results of a full period of operations
assuming the entities acquired during the periods presented were
acquired from January 1 of the year in which they
occurred.
REDWIRE CORPORATION
Supplemental Non-GAAP Information Unaudited
Free Cash Flow
The following table presents the
reconciliation of Free Cash Flow to Net cash provided by (used in)
operating activities, computed in accordance with U.S.
GAAP.
Three Months Ended
(in thousands)
March 31, 2024
March 31, 2023
Net cash provided by (used in)
operating activities
$
2,764
$
(14,048
)
Less: Capital expenditures
(2,367
)
(799
)
Free Cash Flow
$
397
$
(14,847
)
REDWIRE CORPORATION KEY
PERFORMANCE INDICATORS Unaudited
Book-to-Bill
Our book-to-bill ratio was as follows for
the periods presented:
Three Months Ended
Last Twelve Months
(in thousands, except ratio)
March 31, 2024
March 31, 2023
March 31, 2024
March 31, 2023
Contracts awarded
$
35,101
$
29,665
$
305,478
$
326,273
Revenues
87,792
57,605
273,987
185,287
Book-to-bill ratio
0.40
0.51
1.11
1.76
Book-to-bill is the ratio of total contracts awarded to revenues
recorded in the same period. The contracts awarded balance includes
firm contract orders, including time and material contracts,
awarded during the period and does not include unexercised contract
options or potential orders under indefinite delivery/indefinite
quantity contracts. Although the contracts awarded balance reflects
firm contract orders, terminations, amendments, or contract
cancellations may occur which could result in a reduction to the
contracts awarded balance.
We view book-to-bill as an indicator of future revenue growth
potential. To drive future revenue growth, our goal is for the
level of contracts awarded in a given period to exceed the revenue
recorded, thus yielding a book-to-bill ratio greater than 1.0.
Our book-to-bill ratio was 0.40 for the three months ended March
31, 2024, as compared to 0.51 for the three months ended March 31,
2023. For the three months ended March 31, 2024 and 2023, none of
the contracts awarded balance relates to acquired contract
value.
Our book-to-bill ratio was 1.11 for the LTM ended March 31,
2024, as compared to 1.76 for the LTM ended March 31, 2023. For the
LTM ended March 31, 2024, none of the contracts awarded balance
relates to acquired contract value. For the LTM ended March 31,
2023, contracts awarded includes $109.8 million of acquired
contract value from the Space NV acquisition, which was completed
in the fourth quarter of 2022.
Backlog
The following table presents our
contracted backlog as of March 31, 2024 and December 31, 2023, and
related activity for the three months ended March 31, 2024 as
compared to the year ended December 31, 2023.
(in thousands)
March 31,
2024
December 31,
2023
Organic backlog, beginning balance
$
372,790
$
313,057
Organic additions during the period
35,101
300,042
Organic revenue recognized during the
period
(87,792
)
(243,800
)
Foreign currency translation
(2,135
)
3,491
Organic backlog, ending balance
317,964
372,790
Acquisition-related contract value,
beginning balance
—
—
Acquisition-related backlog, ending
balance
—
—
Contracted backlog, ending
balance
$
317,964
$
372,790
We view growth in backlog as a key measure of our business
growth. Contracted backlog represents the estimated dollar value of
firm funded executed contracts for which work has not been
performed (also known as the remaining performance obligations on a
contract). Our contracted backlog includes $18.1 million and $19.3
million in remaining contract value from time and materials
contracts as of March 31, 2024 and as of December 31, 2023,
respectively.
Organic backlog change excludes backlog activity from
acquisitions for the first four full quarters since the entities’
acquisition date. Contracted backlog activity for the first four
full quarters since the entities’ acquisition date is included in
acquisition-related contracted backlog change. After the completion
of four fiscal quarters, acquired entities are treated as organic
for current and comparable historical periods.
Organic contract value includes the remaining contract value as
of January 1 not yet recognized as revenue and additional orders
awarded during the period for those entities treated as organic.
Acquisition-related contract value includes remaining contract
value as of the acquisition date not yet recognized as revenue and
additional orders awarded during the period for entities not
treated as organic. Organic revenue includes revenue earned during
the period presented for those entities treated as organic, while
acquisition-related revenue includes the same for all other
entities, excluding any pre-acquisition revenue earned during the
period. There is no acquisition-related backlog activity presented
in the table above as all acquired entities have completed four
fiscal quarters post-acquisition.
Although contracted backlog reflects business associated with
contracts that are considered to be firm, terminations, amendments
or contract cancellations may occur, which could result in a
reduction in our total backlog. In addition, some of our multi-year
contracts are subject to annual funding. Management expects all
amounts reflected in contracted backlog to ultimately be fully
funded. Contracted backlog from foreign operations in Luxembourg
and Belgium was $96.6 million and $106.0 million as of March 31,
2024 and December 31, 2023, respectively. These amounts are subject
to foreign exchange rate translations from euros to U.S. dollars
that could cause the remaining backlog balance to fluctuate with
the foreign exchange rate at the time of measurement.
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version on businesswire.com: https://www.businesswire.com/news/home/20240508897114/en/
Investor Relations Contact:
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