Redwire (RDW) - 2025 Q1 - Quarterly Report

Financial Performance - Revenues decreased 30% to $61.4 million for the three months ended March 31, 2025, compared to$87.8 million for the same period in 2024[141] - Gross profit decreased by $5.8 million, or 39$(2.9) million for the three months ended March 31, 2025, compared to $(8.1) million for the same period in 2024, a 64$2.948 million, an improvement from a net loss of $8.096 million in the same period of 2024[154] - Adjusted EBITDA for the same period was$(2.268) million, compared to $4.281 million in the prior year[154] Expenses - Cost of sales decreased by$20.6 million, or 28%, for the three months ended March 31, 2025, primarily due to a shift in the production cycle[142] - Selling, general and administrative expenses increased by $1.4 million, or 8$3.8 million, or 100%, primarily due to pre-acquisition costs related to the pending acquisition of Edge Autonomy[145] - Interest expense, net increased by $0.7 million, or 23$3.799 million in transaction expenses related to acquisitions during the three months ended March 31, 2025[154] Contracts and Backlog - The book-to-bill ratio increased to 0.92 for the three months ended March 31, 2025, from 0.40 for the same period in 2024[138] - Total contracts awarded for the three months ended March 31, 2025, were $56.244 million, compared to$35.101 million in the prior year[156] - The company's contracted backlog as of March 31, 2025, was $291.219 million, slightly down from$296.652 million as of December 31, 2024[161] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $54.221 million, an increase from$32.569 million at the end of March 31, 2024[174] - Net cash used in operating activities was $45.081 million for the three months ended March 31, 2025, compared to net cash provided of$2.764 million in the prior year[175] - The company experienced a significant increase in net cash provided by financing activities, totaling $54.190 million for the three months ended March 31, 2025, compared to$2.032 million in 2024[177] - The company had $54.2 million in cash and cash equivalents and$35.0 million in available borrowings from existing credit facilities as of March 31, 2025[165] Foreign Currency and Accounting - The company's operations in Europe primarily conduct transactions in euros, limiting foreign currency exposure[178] - Changes in exchange rates will impact the company's condensed consolidated financial statements expressed in U.S. dollars[178] - There have been no material changes to critical accounting policies and estimates as disclosed in the audited financial statements[179] - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[180] Acquisition - The Company entered into an agreement to acquire Edge Autonomy Holdings, LLC, subject to final closing conditions[138]