Redwire Corporation Reports Third Quarter 2024 Financial Results
Revenues for the third quarter of 2024 increased 9.6% year-over-year to
Completed acquisition of Hera Systems, a spacecraft development company; the acquisition expands
Contracted Backlog1 increased by 30.2% year-over-year to
Total liquidity2 as of
Net Loss for the third quarter of 2024 was
“Mergers and acquisitions are a core strength of
Third Quarter 2024 Highlights
-
Revenues for the third quarter of 2024 increased 9.6% to
$68.6 million , as compared to$62.6 million for the third quarter of 2023. -
Net Loss for the third quarter of 2024 increased by
$14.6 million to$(21.0) million , as compared to$(6.3) million for the third quarter of 2023. Net Loss for the third quarter of 2024 includes a loss contingency of$8.0 million related to the Lemen v.Redwire Corp. securities lawsuit, of which there is no comparable cost for the third quarter of 2023. -
Adjusted EBITDA4 for the third quarter of 2024 decreased by
$2.5 million to$2.4 million , as compared to$4.9 million for the third quarter of 2023. - On a last twelve month (LTM) basis, Book-to-Bill5 ratio was 1.25 as of the third quarter of 2024, as compared to 1.38 as of the third quarter of 2023. On a quarterly basis, Book-to-Bill5 ratio was 0.65 as of the third quarter of 2024, as compared to 0.74 as of the third quarter of 2023.
-
Net cash used in operating activities for the third quarter of 2024 increased by
$14.4 million to$(17.7) million , as compared to net cash used in operating activities of$(3.3) million for the third quarter of 2023. -
Free Cash Flow4 for the third quarter of 2024 decreased by
$14.5 million to$(20.5) million , as compared to$(5.9) million for the third quarter of 2023.
2024 Forecast
-
For the full year ended
December 31, 2024 ,Redwire affirms that it is forecasting revenues of$310 million .
“Redwire continued its robust top line performance during the third quarter, with revenue for the nine months ended
Webcast and Investor Call
Management will conduct a conference call starting at
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 13749718. The accompanying investor presentation will be available on
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
1 |
Contracted Backlog is a key business measure. Please refer to “Key Performance Indicators” and the tables included in this press release for additional information. |
2 |
Total liquidity of |
3 |
Adjusted EBITDA is not a measure of results under generally accepted accounting principles in |
4 |
Adjusted EBITDA and Free Cash Flow are not measures of results under generally accepted accounting principles in |
5 |
Book-to-bill and Backlog are a key business measures. Please refer to “Key Performance Indicators” and the tables included in this press release for additional information. |
About
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 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 forecasts, expectations and assumptions relating to future results may prove incorrect; (8) adverse publicity stemming from any incident or perceived risk involving
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 and Free Cash Flow.
Non-GAAP financial measures are used to supplement the financial information presented on a
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, gains on sale of joint ventures, equity-based compensation, committed equity facility transaction costs, debt financing costs, and warrant liability change in fair value adjustments. Free Cash Flow is computed as net cash provided by (used in) operating activities less capital expenditures.
We use 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.
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.
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited
(In thousands of |
|||||
|
|
|
|
||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash, cash equivalents and restricted cash |
$ |
43,094 |
|
$ |
30,278 |
Accounts receivable, net |
|
22,653 |
|
|
32,411 |
Contract assets |
|
46,069 |
|
|
36,961 |
Inventory |
|
2,055 |
|
|
1,516 |
Income tax receivable |
|
636 |
|
|
636 |
Prepaid insurance |
|
1,291 |
|
|
1,083 |
Prepaid expenses and other current assets |
|
10,738 |
|
|
6,428 |
Total current assets |
|
126,536 |
|
|
109,313 |
Property, plant and equipment, net of accumulated depreciation of |
|
16,929 |
|
|
15,909 |
Right-of-use assets |
|
10,668 |
|
|
13,181 |
Intangible assets, net of accumulated amortization of |
|
62,516 |
|
|
62,985 |
|
|
72,572 |
|
|
65,757 |
Equity method investments |
|
— |
|
|
3,613 |
Other non-current assets |
|
724 |
|
|
511 |
Total assets |
$ |
289,945 |
|
$ |
271,269 |
|
|
|
|
||
Liabilities, Convertible Preferred Stock and Equity (Deficit) |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
19,936 |
|
$ |
18,573 |
Notes payable to sellers |
|
11 |
|
|
— |
Short-term debt, including current portion of long-term debt |
|
1,751 |
|
|
1,378 |
Short-term operating lease liabilities |
|
3,518 |
|
|
3,737 |
Short-term finance lease liabilities |
|
501 |
|
|
439 |
Accrued expenses |
|
27,813 |
|
|
32,902 |
Deferred revenue |
|
56,684 |
|
|
52,645 |
Other current liabilities |
|
20,807 |
|
|
2,362 |
Total current liabilities |
|
131,021 |
|
|
112,036 |
Long-term debt, net |
|
121,553 |
|
|
86,842 |
Long-term operating lease liabilities |
|
9,790 |
|
|
12,302 |
Long-term finance lease liabilities |
|
1,089 |
|
|
1,137 |
Warrant liabilities |
|
11,436 |
|
|
3,325 |
Deferred tax liabilities |
|
2,379 |
|
|
2,402 |
Other non-current liabilities |
|
401 |
|
|
400 |
Total liabilities |
$ |
277,669 |
|
$ |
218,444 |
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited
(In thousands of |
|||||||
|
|
|
|
||||
|
|
|
|
||||
Convertible preferred stock, |
$ |
108,696 |
|
|
$ |
96,106 |
|
|
|
|
|
||||
Shareholders’ Equity (Deficit): |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
7 |
|
|
|
7 |
|
|
|
(2,688 |
) |
|
|
(951 |
) |
Additional paid-in capital |
|
184,325 |
|
|
|
188,323 |
|
Accumulated deficit |
|
(280,937 |
) |
|
|
(233,791 |
) |
Accumulated other comprehensive income (loss) |
|
2,873 |
|
|
|
2,903 |
|
Total shareholders’ equity (deficit) |
|
(96,420 |
) |
|
|
(43,509 |
) |
Noncontrolling interests |
|
— |
|
|
|
228 |
|
Total equity (deficit) |
|
(96,420 |
) |
|
|
(43,281 |
) |
Total liabilities, convertible preferred stock and equity (deficit) |
$ |
289,945 |
|
|
$ |
271,269 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Unaudited
(In thousands of |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues |
$ |
68,638 |
|
|
$ |
62,612 |
|
|
$ |
234,541 |
|
|
$ |
180,315 |
|
Cost of sales |
|
56,615 |
|
|
|
45,495 |
|
|
|
194,709 |
|
|
|
133,077 |
|
Gross profit |
|
12,023 |
|
|
|
17,117 |
|
|
|
39,832 |
|
|
|
47,238 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses |
|
17,521 |
|
|
|
18,302 |
|
|
|
52,971 |
|
|
|
52,026 |
|
Transaction expenses |
|
5,121 |
|
|
|
— |
|
|
|
5,399 |
|
|
|
13 |
|
Research and development |
|
1,893 |
|
|
|
1,532 |
|
|
|
4,681 |
|
|
|
3,990 |
|
Operating income (loss) |
|
(12,512 |
) |
|
|
(2,717 |
) |
|
|
(23,219 |
) |
|
|
(8,791 |
) |
Interest expense, net |
|
3,610 |
|
|
|
2,629 |
|
|
|
9,537 |
|
|
|
7,937 |
|
Other (income) expense, net |
|
5,309 |
|
|
|
1,232 |
|
|
|
14,734 |
|
|
|
2,689 |
|
Income (loss) before income taxes |
|
(21,431 |
) |
|
|
(6,578 |
) |
|
|
(47,490 |
) |
|
|
(19,417 |
) |
Income tax expense (benefit) |
|
(472 |
) |
|
|
(253 |
) |
|
|
(348 |
) |
|
|
(369 |
) |
Net income (loss) |
|
(20,959 |
) |
|
|
(6,325 |
) |
|
|
(47,142 |
) |
|
|
(19,048 |
) |
Net income (loss) attributable to noncontrolling interests |
|
— |
|
|
|
(72 |
) |
|
|
4 |
|
|
|
(73 |
) |
Net income (loss) attributable to |
|
(20,959 |
) |
|
|
(6,253 |
) |
|
|
(47,146 |
) |
|
|
(18,975 |
) |
Less: dividends on Convertible Preferred Stock |
|
3,383 |
|
|
|
2,874 |
|
|
|
16,125 |
|
|
|
12,040 |
|
Net income (loss) available to common shareholders |
$ |
(24,342 |
) |
|
$ |
(9,127 |
) |
|
$ |
(63,271 |
) |
|
$ |
(31,015 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
$ |
(0.37 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.96 |
) |
|
$ |
(0.48 |
) |
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
66,529,288 |
|
|
|
64,795,985 |
|
|
|
65,936,597 |
|
|
|
64,475,390 |
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income (loss): |
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to |
$ |
(20,959 |
) |
|
$ |
(6,253 |
) |
|
$ |
(47,146 |
) |
|
$ |
(18,975 |
) |
Foreign currency translation gain (loss), net of tax |
|
877 |
|
|
|
(860 |
) |
|
|
127 |
|
|
|
(304 |
) |
Total other comprehensive income (loss), net of tax |
|
877 |
|
|
|
(860 |
) |
|
|
127 |
|
|
|
(304 |
) |
Total comprehensive income (loss) |
$ |
(20,082 |
) |
|
$ |
(7,113 |
) |
|
$ |
(47,019 |
) |
|
$ |
(19,279 |
) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited
(In thousands of |
|||||||
|
Nine Months Ended |
||||||
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
(47,142 |
) |
|
$ |
(19,048 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
8,538 |
|
|
|
7,971 |
|
Amortization of debt issuance costs and discount |
|
584 |
|
|
|
448 |
|
Equity-based compensation expense |
|
8,046 |
|
|
|
6,317 |
|
(Gain) loss on sale of joint ventures |
|
(1,303 |
) |
|
|
— |
|
(Gain) loss on change in fair value of committed equity facility |
|
— |
|
|
|
179 |
|
(Gain) loss on change in fair value of warrants |
|
8,111 |
|
|
|
2,475 |
|
Deferred provision (benefit) for income taxes |
|
(47 |
) |
|
|
(1,012 |
) |
Non-cash lease expense |
|
23 |
|
|
|
248 |
|
Non-cash interest expense |
|
— |
|
|
|
525 |
|
Other |
|
(74 |
) |
|
|
157 |
|
Changes in assets and liabilities: |
|
|
|
||||
(Increase) decrease in accounts receivable |
|
14,496 |
|
|
|
2,031 |
|
(Increase) decrease in contract assets |
|
(8,754 |
) |
|
|
(9,008 |
) |
(Increase) decrease in inventory |
|
(537 |
) |
|
|
(221 |
) |
(Increase) decrease in prepaid insurance |
|
(208 |
) |
|
|
936 |
|
(Increase) decrease in prepaid expenses and other assets |
|
(4,039 |
) |
|
|
255 |
|
Increase (decrease) in accounts payable and accrued expenses |
|
(4,964 |
) |
|
|
(2,202 |
) |
Increase (decrease) in deferred revenue |
|
(7,448 |
) |
|
|
(2,734 |
) |
Increase (decrease) in operating lease liabilities |
|
(256 |
) |
|
|
(241 |
) |
Increase (decrease) in other liabilities |
|
10,551 |
|
|
|
(979 |
) |
Increase (decrease) in notes payable to sellers |
|
11 |
|
|
|
(557 |
) |
Net cash provided by (used in) operating activities |
|
(24,412 |
) |
|
|
(14,460 |
) |
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Acquisition of businesses, net of cash acquired |
|
(796 |
) |
|
|
— |
|
Net proceeds from sale of joint ventures |
|
4,598 |
|
|
|
— |
|
Purchases of property, plant and equipment, net |
|
(4,064 |
) |
|
|
(3,524 |
) |
Purchase of intangible assets |
|
(2,788 |
) |
|
|
(1,690 |
) |
Net cash provided by (used in) investing activities |
|
(3,050 |
) |
|
|
(5,214 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Proceeds received from debt |
|
42,971 |
|
|
|
23,696 |
|
Repayments of debt |
|
(8,183 |
) |
|
|
(19,890 |
) |
Payment of debt issuance fees to third parties |
|
(780 |
) |
|
|
— |
|
Repayment of finance leases |
|
(357 |
) |
|
|
(282 |
) |
Proceeds from third-party advances |
|
7,820 |
|
|
|
— |
|
Proceeds from issuance of common stock |
|
546 |
|
|
|
84 |
|
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 |
|
(1,737 |
) |
|
|
(248 |
) |
Payment of contingent earnout |
|
— |
|
|
|
(443 |
) |
Net cash provided by (used in) financing activities |
|
40,280 |
|
|
|
2,294 |
|
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash |
|
(2 |
) |
|
|
(77 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
12,816 |
|
|
|
(17,457 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
30,278 |
|
|
|
28,316 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
43,094 |
|
|
$ |
10,859 |
|
Supplemental Non-GAAP Information Unaudited
Adjusted EBITDA
During the third quarter of 2024, we changed the Supplemental Non-GAAP Information to present only Adjusted EBITDA, whereas prior period disclosures also presented Pro Forma Adjusted EBITDA. Management believes the presentation of Pro Forma Adjusted EBITDA no longer provides the same meaningful insights into the Company’s performance as it did during the initial years of the Company’s formation. Prior period disclosures were recast to conform to current presentation. There was no change in the calculation of Adjusted EBITDA.
The following table presents the reconciliations of Adjusted EBITDA to net income (loss), computed in accordance with |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(in thousands) |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(20,959 |
) |
|
$ |
(6,325 |
) |
|
$ |
(47,142 |
) |
|
$ |
(19,048 |
) |
Interest expense, net |
|
3,610 |
|
|
|
2,629 |
|
|
|
9,537 |
|
|
|
7,937 |
|
Income tax expense (benefit) |
|
(472 |
) |
|
|
(253 |
) |
|
|
(348 |
) |
|
|
(369 |
) |
Depreciation and amortization |
|
2,860 |
|
|
|
2,887 |
|
|
|
8,538 |
|
|
|
7,971 |
|
Acquisition deal costs (i) |
|
5,121 |
|
|
|
— |
|
|
|
5,399 |
|
|
|
13 |
|
Acquisition integration costs (i) |
|
96 |
|
|
|
— |
|
|
|
96 |
|
|
|
546 |
|
Purchase accounting fair value adjustment related to deferred revenue (ii) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
Severance costs (iii) |
|
365 |
|
|
|
62 |
|
|
|
532 |
|
|
|
382 |
|
Capital market and advisory fees (iv) |
|
1,071 |
|
|
|
2,536 |
|
|
|
5,503 |
|
|
|
6,891 |
|
Litigation-related expenses (v) |
|
9,096 |
|
|
|
249 |
|
|
|
11,329 |
|
|
|
317 |
|
Equity-based compensation (vi) |
|
3,593 |
|
|
|
2,451 |
|
|
|
8,046 |
|
|
|
6,317 |
|
Committed equity facility transaction costs (vii) |
|
— |
|
|
|
245 |
|
|
|
— |
|
|
|
179 |
|
Debt financing costs (viii) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17 |
|
Gain on sale of joint ventures, net of costs incurred (ix) |
|
— |
|
|
|
— |
|
|
|
(1,255 |
) |
|
|
— |
|
Warrant liability change in fair value adjustment (x) |
|
(1,941 |
) |
|
|
464 |
|
|
|
8,111 |
|
|
|
2,475 |
|
Adjusted EBITDA |
$ |
2,440 |
|
|
$ |
4,945 |
|
|
$ |
8,346 |
|
|
$ |
13,643 |
|
i. |
|
ii. |
|
iii. |
|
iv. |
|
v. |
|
vi. |
|
vii. |
|
viii. |
|
ix. |
|
x. |
|
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
|
|||||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|
Last Twelve Months |
||||||||||||||||||
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by (used in) operating activities |
$ |
(17,670 |
) |
|
$ |
(3,256 |
) |
|
$ |
(24,412 |
) |
|
$ |
(14,460 |
) |
|
$ |
(8,721 |
) |
|
$ |
(19,288 |
) |
Less: Capital expenditures |
|
(2,798 |
) |
|
|
(2,666 |
) |
|
|
(6,852 |
) |
|
|
(5,214 |
) |
|
|
(9,965 |
) |
|
|
(5,934 |
) |
Free Cash Flow |
$ |
(20,468 |
) |
|
$ |
(5,922 |
) |
|
$ |
(31,264 |
) |
|
$ |
(19,674 |
) |
|
$ |
(18,686 |
) |
|
$ |
(25,222 |
) |
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) |
|
|
|
|
|
|
|
||||
Contracts awarded |
$ |
44,503 |
|
$ |
46,523 |
|
$ |
372,249 |
|
$ |
322,837 |
Revenues |
|
68,638 |
|
|
62,612 |
|
|
298,026 |
|
|
234,020 |
Book-to-bill ratio |
|
0.65 |
|
|
0.74 |
|
|
1.25 |
|
|
1.38 |
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 (“T&M”) 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 0.65 for the three months ended
Our book-to-bill ratio was 1.25 for the LTM (“Last Twelve Months”) ended
Backlog
The following table presents our contracted backlog as of
(in thousands) |
|
|
|
||||
Organic backlog, beginning balance |
$ |
372,790 |
|
|
$ |
313,057 |
|
Organic additions during the period |
|
172,101 |
|
|
|
300,042 |
|
Organic revenue recognized during the period |
|
(232,697 |
) |
|
|
(243,800 |
) |
Foreign currency translation |
|
(2,229 |
) |
|
|
3,491 |
|
Organic backlog, ending balance |
|
309,965 |
|
|
|
372,790 |
|
|
|
|
|
||||
Acquisition-related contract value, beginning balance |
|
— |
|
|
|
— |
|
Acquisition-related contract value acquired during the period |
|
21,940 |
|
|
|
— |
|
Acquisition-related additions during the period |
|
— |
|
|
|
— |
|
Acquisition-related revenue recognized during the period |
|
(1,844 |
) |
|
|
— |
|
Acquisition-related backlog, ending balance |
|
20,096 |
|
|
|
— |
|
Contracted backlog, ending balance |
$ |
330,061 |
|
|
$ |
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
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
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106021260/en/
Investor Relations Contact:
investorrelations@redwirespace.com
Source: