Redwire Corp (RDW) 2024 Q1 法說會逐字稿

Greetings and welcome to the Redwire Space Corporation first-quarter 2024. (Operator Instructions) I will now turn the conference over to your host, Jeff Zeunik, you may begin.

大家好，歡迎來到 Redwire Space Corporation 2024 年第一季。

Thank you, Samali, and good morning, everyone. Welcome to Redwire's first-quarter 2024 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.

謝謝你，薩馬利，大家早安。歡迎參加 Redwire 2024 年第一季財報電話會議。我們希望您已經看到了我們昨天下午發布的收益報告。它也發佈在我們網站 redwirespace.com 的投資者關係部分。

Let me remind everyone that during the call, Redwire management may make forward-looking statements that reflect our beliefs, expectations, intentions, or predictions for the future. Our forward-looking statements are subject to risks and uncertainties that are described in more detail on slide 2.

讓我提醒大家，在電話會議期間，Redwire 管理階層可能會做出反映我們對未來的信念、期望、意圖或預測的前瞻性聲明。我們的前瞻性陳述受到風險和不確定性的影響，投影片 2 中有更詳細的描述。

Additionally, to the extent that we discuss non-GAAP measures during the call, please see slide 3 of our earnings release or the investor presentation on our website for the calculation of these measures and their GAAP reconciliations.

此外，就我們在電話會議期間討論非 GAAP 衡量標準而言，請參閱我們的收益發布的幻燈片 3 或我們網站上的投資者演示文稿，以了解這些衡量標準的計算及其 GAAP 調節表。

I am Jeff Zeunik, Redwire, Senior Vice President of Financial Planning and Analysis and Investor Relations. Joining me on today's call are Peter Cannito, Chairman and Chief Executive Officer, and Jonathan Baliff, Chief Financial Officer. With that, I would like to turn the call over to Pete. Pete?

我是 Jeff Zeunik，Redwire，財務規劃與分析以及投資者關係高級副總裁。與我一起參加今天電話會議的還有董事長兼首席執行官彼得·坎尼托 (Peter Cannito) 和首席財務官喬納森·巴利夫 (Jonathan Baliff)。說到這裡，我想把電話轉給皮特。皮特？

Thank you, Jeff. During today's call, I will take you through a discussion of our key accomplishments in the first quarter of 2024. Jonathan will then present the financial highlights for the same first quarter 2024 period, after which we will open the floor for Q&A.

謝謝你，傑夫。在今天的電話會議中，我將帶您討論我們在 2024 年第一季的主要成就。 然後，喬納森將介紹 2024 年第一季的財務亮點，之後我們將開始問答環節。

Please turn to slide 6. the first quarter of this year was another excellent quarter for Redwire, during which we continued our positive momentum from 2023. We have now delivered five consecutive quarters of positive adjusted EBITDA and revenue growth and two consecutive quarters of positive cash from operations. During the first quarter, we achieved $87.8 million in Q1 revenue, a 52.4% improvement over Q1 2023. It was a very strong quarter for revenue. Positive adjusted EBITDA of $4.3 million and net loss of $8.1 million. Free cash flow of positive $0.4 million, a year-over-year improvement of $15.2 million. Cash from operations of positive $2.8 million, a year-over-year improvement of $16.8 million. And finally, we achieved a last 12 months or LTM book-to-bill ratio of one 1.11 times during the quarter. It's important to note that we achieved these positive financial results by developing and delivering reliable critical innovations for our valued customers throughout the first quarter. These results are directly attributable to the commitment and expertise of our workforce.

請參閱投影片6。成長，並連續兩季實現正現金來自營運。第一季度，我們實現了 8,780 萬美元的收入，比 2023 年第一季成長了 52.4%。調整後的正數 EBITDA 為 430 萬美元，淨虧損為 810 萬美元。自由現金流為正 40 萬美元，年增 1,520 萬美元。營運現金為正 280 萬美元，年增 1,680 萬美元。最後，我們在本季實現了過去 12 個月或 LTM 訂單出貨比 1.11 倍。值得注意的是，我們透過在第一季為我們尊貴的客戶開發和提供可靠的關鍵創新來實現這些積極的財務業績。這些成果直接歸功於我們員工的奉獻和專業知識。

Please turn to slide 7. During our previous earnings call, I introduced Redwire's growth strategy for 2024 that is centered around four key principles. Protecting the core, which means continuing to deliver on our strong foundation of existing products with proven reliability and demonstrated flight heritage. It is about continuing the growth momentum of our successes in 2023. Scaling production, which means winning and delivering on increasingly larger orders by scaling our production to meet growing demand. Moving up the value chain, which means leveraging our proven capabilities in developing and deploying space subsystems and components into next-generation spacecraft and integrated mission payloads. And finally, venture optionality, which means continuing to pursue breakthrough developments on advanced technologies that could create new markets with game-changing potential.

請參閱投影片 7。保護核心，這意味著繼續以我們現有產品的堅實基礎為基礎，提供經過驗證的可靠性和飛行傳統。這是為了在 2023 年繼續保持我們成功的成長勢頭。提升價值鏈，這意味著利用我們在開發空間子系統和組件並將其部署到下一代太空船和整合任務有效載荷方面的成熟能力。最後，風險選擇性，這意味著繼續追求先進技術的突破性發展，從而創造具有改變遊戲規則潛力的新市場。

On the next few slides, I will discuss examples of successes in each of these key growth areas for the first quarter of 2024. Please turn to slide 8. Starting with our protecting the core growth area. During the first quarter, Redwire's cameras were on board Intuitive Machines' IM-1 lunar landing mission. These cameras come from our avionics and sensors core offering, which includes spacecraft subsystems and components that are used for navigation, control, and imagery collection. Also during the first quarter, NASA's Solar Sail, for which Redwire developed deployment mechanisms and 100-foot booms, cleared a key technology milestone with the successful deployment of one quadrant. Solar Sail falls into our structures & mechanisms core offering, which includes a variety of space infrastructure that provide critical mechanical functionality for on-orbit operations from launch release mechanisms and deployable booms to berthing and docking systems.

在接下來的幾張投影片中，我將討論 2024 年第一季每個關鍵成長領域的成功範例。第一季度，Redwire 的相機出現在 Intuitive Machines 的 IM-1 登月任務中。這些相機來自我們的航空電子設備和感測器核心產品，其中包括用於導航、控制和影像收集的太空船子系統和組件。同樣在第一季度，Redwire 為 NASA 的太陽帆開發了部署機制和 100 英尺吊桿，透過成功部署一個像限，實現了一個關鍵的技術里程碑。太陽帆屬於我們的結構和機制核心產品，其中包括各種空間基礎設施，為在軌操作提供關鍵的機械功能，從發射釋放機制和可展開吊桿到停泊和對接系統。

Please turn to slide 9. Looking at our scaling production growth principle, we are excited to announce that we are under contract with Rocket Lab for 18 ship sets of antennas and radio frequency hardware for the SDA Transport Layer Tranche 2 Beta variant satellites, the third in a series of spacecraft that will make up the Proliferated Warfighter Space Architecture. Our radio frequency systems core offerings includes the systems and payloads that enables space-to-space and space to earth communications. Also in Q1 two ROSA wings were successfully deployed on Ovzon 3, which represents the first integration of ROSA technology with a commercial satellite. In addition, Redwire began executing on our $142 million contract award for power solutions to an undisclosed satellite manufacturer. These operations fall within our power generation offering, which includes solar arrays and power distribution systems that generate the necessary power for space systems to operate regardless of size or location.

請參閱幻燈片9。和射頻硬體合約。我們的射頻系統核心產品包括支援空對空和空對地通訊的系統和有效載荷。同樣在第一季度，兩台 ROSA 機翼成功部署在 Ovzon 3 上，這代表了 ROSA 技術與商業衛星的首次整合。此外，Redwire 開始執行我們授予一家未公開的衛星製造商的 1.42 億美元電源解決方案合約。這些業務屬於我們的發電產品範圍，其中包括太陽能電池陣列和配電系統，它們為太空系統提供運作所需的電力，無論大小或位置如何。

Please turn to Slide 10. Turning to our moving up the value chain growth principle, I'd like to highlight Redwire's, US and European operations in very low earth orbit or VLEO. During the first quarter of 2024, Redwire was awarded a study related to our new US VLEO platform, SabreSat. This is a very exciting indicator that the market recognizes SabreSat's potential as a critical capability. We are very encouraged with the reception SabreSat has received since our announcement and continue to pursue meaningful opportunities for this potentially groundbreaking VLEO spacecraft.

請參閱投影片 10。 2024 年第一季度，Redwire 獲得了與我們新的美國 VLEO 平台 SabreSat 相關的研究。這是一個非常令人興奮的指標，表明市場認識到 SabreSat 的潛力作為一項關鍵功能。自從我們宣布這一消息以來，SabreSat 所受到的好評讓我們深受鼓舞，並將繼續為這艘具有突破性意義的 VLEO 太空船尋求有意義的機會。

To continue to aggressively assert ourselves as a technology leader in VLEO, today, we are announcing Phantom, our VLEO platform for Europe and the international market. Phantom is currently being developed in our Belgian office for the European Space Agency Skimsat program and we will be marketing this platform to other potential customers as well. Thales Alenia Space is the prime contractor for Skimsat and Redwire EU is responsible for providing the VLEO's spacecraft, which we are now calling Phantom. Skimsat is the mission, Phantom is our platform. The Skimsat mission is a VLEO satellite mission that aims at reducing the cost of earth observation and telecommunication satellites while increasing performance by operating at substantially lower altitudes. The potential for this transformational program is extraordinary.

為了繼續積極維護自己作為 VLEO 技術領導者的地位，今天，我們宣布推出 Phantom，這是我們面向歐洲和國際市場的 VLEO 平台。 Phantom 目前正在我們的比利時辦事處為歐洲太空總署 Skimsat 專案進行開發，我們也將向其他潛在客戶推銷該平台。 Thales Alenia Space 是 Skimsat 的主承包商，Redwire EU 負責提供 VLEO 的太空船，我們現在稱之為 Phantom。 Skimsat 是使命，Phantom 是我們的平台。 Skimsat 任務是一項 VLEO 衛星任務，旨在降低地球觀測和電信衛星的成本，同時透過在低得多的高度運行來提高性能。這個變革計劃的潛力是非凡的。

Notably, SabreSat and Phantom do not share a common technological baseline. They are two different platforms with differing underlying technologies and performance parameters. This is important as missions in VLEO are as dynamic as all of the other earth orbits such as LEO and GEO. And different approaches, reduce risk and enable us to cover a broader set of customer requirements. As Redwire moves up the value chain, we are very excited that SabreSat and Phantom expand Redwire's offering of full satellite system development and operations, that includes the Redwire international PROBA satellite, as well as our proprietary platform agnostic digital engineering and modeling and simulation solutions that enable rapid spacecraft development and deployment.

值得注意的是，SabreSat 和 Phantom 沒有共同的技術基準。它們是兩個不同的平台，具有不同的底層技術和性能參數。這一點很重要，因為 VLEO 中的任務與所有其他地球軌道（例如 LEO 和 GEO）一樣動態。不同的方法可以降低風險，並使我們能夠滿足更廣泛的客戶需求。隨著Redwire 向價值鏈上游移動，我們非常高興SabreSat 和Phantom 擴展了Redwire 的完整衛星系統開發和營運產品，其中包括Redwire 國際PROBA 衛星，以及我們專有的平台無關數位工程和建模與模擬解決方案，實現航天器的快速開發和部署。

Please turn to slide 11. Lastly, I would like to spend some time providing a deeper look into our fourth principle, venture optionality, by focusing on Redwire's in-space pharmaceutical development to benefit human health on earth. Pharmaceutical companies are constantly looking to deliver new optimized treatments for patients, and many of those treatments rely on crystals as their active ingredient. The form of the crystals will dictate a drug's properties and as a result, precision matters. Historically, a significant proportion of drugs have not made it to the market as a result of crystal formation challenges. Growing crystals in microgravity could be transformative, potentially yielding a more uniform product with fewer imperfections and improving the drug discovery and development process.

請翻到投影片 11 最後，我想花一些時間更深入地探討我們的第四個原則，即風險選擇性，並專注於 Redwire 的太空製藥開發，以造福地球上的人類健康。製藥公司不斷尋求為患者提供新的優化治療方法，其中許多治療方法都依賴晶體作為其活性成分。晶體的形狀將決定藥物的特性，因此精確度至關重要。從歷史上看，由於晶體形成的挑戰，很大一部分藥物尚未進入市場。在微重力下生長晶體可能會帶來變革，有可能產生更均勻、缺陷更少的產品，並改善藥物發現和開發過程。

As pharmaceutical companies look to deliver new optimized treatments to help patients on earth, microgravity could be a major differentiator. With the drug discovery market size having been estimated at approximately $80 billion in 2023, growing to approximately $180 billion by 2032, this represents a significant growth opportunity for Redwire. Redwire has already demonstrated the ability to develop crystals in space using our PIL-BOX facility on the International Space Station. Redwire's proprietary PIL-BOX is a proven cutting edge in-space pharmaceutical manufacturing platform that builds on Redwire's extensive heritage in microgravity and offers pharmaceutical companies and biomedical researchers novel and flexible services to study small batch crystal growth of proteins

隨著製藥公司尋求提供新的優化治療方法來幫助地球上的患者，微重力可能是一個主要的差異化因素。預計 2023 年藥物發現市場規模約為 800 億美元，到 2032 年將成長至約 1,800 億美元，這對 Redwire 來說是一個重大的成長機會。 Redwire 已經展示了使用國際太空站上的 PIL-BOX 設施在太空中開發晶體的能力。 Redwire 的專有PIL-BOX 是一個經過驗證的尖端太空藥物製造平台，它建立在Redwire 在微重力方面的豐富傳統基礎上，為製藥公司和生物醫學研究人員提供新穎而靈活的服務來研究蛋白質的小批量晶體生長

Redwire is at the forefront with our microgravity technology built on decades of in-space manufacturing success. Our successful inaugural PIL-1 mission demonstrated that insulin crystals grown on the ISS using PIL-BOX were larger and more highly ordered than terrestrial crystals. Our next step is to execute a production level cadence of crystal manufacturing using a variety of compounds. Our second PIL-BOX mission has already returned, and the results are promising. We have currently manifested for 16 additional PIL-BOX missions this year. The economic potential for this technology is high and gaining momentum. Recent venture funding for related industry players has revealed a significant valuation premium for pharmaceutical microgravity development, validating that the venture optionality associated with this subset of Redwire's business has real value.

Redwire 憑藉數十年太空製造成功經驗的微重力技術處於領先地位。我們成功的首次 PIL-1 任務表明，使用 PIL-BOX 在國際太空站上生長的胰島素晶體比陸地晶體更大、更有序。我們的下一步是使用各種化合物執行晶體製造的生產水平節奏。我們的第二次 PIL-BOX 任務已經返回，結果令人鼓舞。今年我們目前已經執行了 16 次 PIL-BOX 任務。這項技術的經濟潛力很大，而且勢頭強勁。最近對相關行業參與者的風險投資顯示，製藥微重力開發具有顯著的估值溢價，驗證了與 Redwire 業務的這一子集相關的風險選擇權具有真正的價值。

Turning to slide 12. The inaugural PIL-BOX-01 mission launched in November 2023 and returned to earth in late December 2023 for delivery to Eli Lilly, our research partner. Following closely on the heels of the successful PIL-01 mission, PIL-02 again in partnership with Eli Lilly, and PIL-03 in partnership with Butler University launched to the International Space Station this past March, just three months later. The second PIL-BOX mission is focused on researching widespread chronic diseases, which have massive global demand for treatment. PIL-03 has now returned to earth in April 2024 and PIL-02 is anticipated to return in the coming months, demonstrating the rapid cadence Redwire can execute with this capability. This tempo is critical to demonstrate the industry model is viable for sustained development in orbit. For the remainder of the year, we have 16 additional PIL-BOX submissions manifested and a robust pipeline of interest from commercial entities. As launch costs decrease and commercial space station availability increases, the opportunity for on-orbit development and manufacturing at scale will expand. And Redwire is delivering tangible and useful results, not someday, but now.

轉向幻燈片 12。緊隨 PIL-01 任務成功之後，PIL-02 再次與禮來公司合作，PIL-03 與巴特勒大學合作，於今年 3 月（僅三個月後）發射到國際太空站。第二個 PIL-BOX 任務的重點是研究廣泛存在的慢性疾病，這些疾病在全球範圍內有著巨大的治療需求。 PIL-03 現已於 2024 年 4 月返回地球，PIL-02 預計將在未來幾個月返回，這證明了 Redwire 可以利用此功能執行快速節奏。這種節奏對於證明該產業模式對於在軌持續發展的可行性至關重要。在今年剩下的時間裡，我們收到了 16 份額外的 PIL-BOX 提交資料，以及來自商業實體的大量興趣。隨著發射成本的降低和商業太空站可用性的增加，大規模在軌開發和製造的機會將會擴大。 Redwire 正在提供切實且有用的成果，不是有一天，而是現在。

Please turn to slide 13. Now turning to our contract awards and backlog. Our contract awards during the first quarter of 2024 were $35.1 million. Our last 12 months book-to-bill ratio was 1.11 times for the first quarter of 2024. As we continuously reinforce, we often see lumpy contract awards growth from quarter to quarter, but we are continuing to maintain a positive growth rate on an annual basis. As you can see on the lower right-hand side of this slide, our contracted backlog has increased 10.9% year-over-year to a total of $318 million. The growth in contracted backlog is one of many factors that gives us confidence in our future growth. Finally, we continue to have a healthy pipeline with an estimated $6.3 billion of identified opportunities, including approximately $610 million in proposals submitted year-to-date as of March 31. As you can see on the upper right-hand side of this slide, this represents a 177.3% increase over the corresponding year-to-date period ended March 31, 2023. The momentum continues. Please turn to slide 14. With that, I'd now like to turn the call over to Jonathan Baliff, Redwire's Chief Financial Officer. Jonathan?

請轉到投影片 13。我們 2024 年第一季的合約金額為 3,510 萬美元。過去 12 個月的訂單出貨比為 2024 年第一季的 1.11 倍。正如您在這張投影片的右下角看到的，我們的合約積壓訂單年增 10.9%，達到 3.18 億美元。合約積壓的成長是讓我們對未來成長充滿信心的眾多因素之一。最後，我們繼續擁有一個健康的管道，其中已確定的機會估計價值63 億美元，其中包括截至3 月31 日年初至今提交的約6.1 億美元的提案。到的，這比截至 2023 年 3 月 31 日的同期增長了 177.3%。請翻到投影片 14。喬納森？

Thank you, Pete. Before I turn to the financial results I'd like to highlight the photo on this slide to the PROBA-3 satellite from Redwire's Belgium facility, slated to launch later this year. The European Space Agency's PROBA-3 mission is composed of two spacecraft acting as one element and is the world's first precision formation flying mission in space.

謝謝你，皮特。在討論財務表現之前，我想強調這張幻燈片上來自 Redwire 比利時設施的 PROBA-3 衛星的照片，該衛星定於今年晚些時候發射。歐洲太空總署的PROBA-3任務由兩艘太空船作為一個單元組成，是世界上第一個太空精確編隊飛行任務。

Turning to slide 15. Our first quarter 2024 was an excellent start to the year as Pete spoke about, as we saw continued positive momentum driven by customer demand. Quarterly revenue was a record $87.8 million. So we did see a slight decline in net loss for the same period year over year. Our adjusted EBITDA remained flat year-over-year at a positive $4.3 million. We will discuss the drivers of our adjusted EBITDA on a subsequent slide. The first quarter of 2024 also saw positive cash from operations of $2.8 million and free cash flow of $0.4 million, a year-over-year improvement of $16.8 million and $15.2 million respectively. And this is after making significant investments in growth capital expenditures and internal research and development to advance our path to profitability. These impressive results were attributable to the capability and commitment of our global team members, satisfying our customers growing demand for space infrastructure.

轉向投影片 15。季度營收達到創紀錄的 8,780 萬美元。因此，我們確實看到同期淨虧損較去年同期略有下降。我們的調整後 EBITDA 與去年同期持平，為 430 萬美元。我們將在隨後的幻燈片中討論調整後 EBITDA 的驅動因素。 2024 年第一季度，營運現金流為 280 萬美元，自由現金流為 40 萬美元，年比分別增加 1,680 萬美元和 1,520 萬美元。這是在對成長資本支出和內部研發進行大量投資以推進我們的獲利之路之後。這些令人印象深刻的成果歸功於我們全球團隊成員的能力和承諾，滿足了客戶對空間基礎設施日益增長的需求。

Please turn to slide 16. Specifically for quarterly revenue, as you can see from the chart on the right, this quarter's record, $87.8 million represented a 52.4% increase on a year-over-year basis and an increase of 38.3% on a sequential basis. During the quarter, more than 90% of our revenue derived from funded government programs or from global marquee customers for delivering in the areas of national security, satellite proliferation, and the exploration of space to name just a few. Finally, we'd like to note that after the completion of the full fiscal year post the Space NV acquisition, our fiscal year 2024 will no longer present year-over-year comparable revenues which excluded the results of Space NV.

請翻到投影片16。本季度，我們 90% 以上的收入來自受資助的政府計畫或來自全球知名客戶，這些客戶在國家安全、衛星擴散和太空探索等領域提供服務。最後，我們要指出的是，在收購 Space NV 後的整個財年完成後，我們的 2024 財年將不再呈現排除 Space NV 業績的同比可比收入。

Please turn to slide 17. For quarterly adjusted EBITDA, Q1 2024 remained flat at positive $4.3 million compared to the first quarter of 2023, while increasing 151.2% on a sequential basis from the fourth quarter of 2023. Gross profit increased 4.3% from $14.2 million to $14.8 million. Quarterly gross margins over the same period declined to 16.9%. These results were primarily impacted by EAC adjustments during the first quarter, exacerbated by our record revenues. The $3.9 million in EAC adjustments largely resulted from unplanned design and test cycles required to meet customer requirements as we neared completion on discrete projects during the quarter. Offsetting these gross margin declines, our sequential quarter adjusted EBITDA improvements was also supported by excellent cost control and the continued operating leverage being driven by scale as Redwire's SG&A expenses are now below 20% of revenue, a notable drop from the 27.8% in the first quarter of 2023. We continue to drive tens of millions of dollars in revenue increases with single digit growth in yearly SG&A. That's the benefit of operating leverage and scale kicking in.

請參閱投影片17。 1,420 萬美元成長4.3%至 1,480 萬美元。同期季毛利率下降至16.9%。這些結果主要受到第一季 EAC 調整的影響，而我們創紀錄的營收又加劇了這一影響。 390 萬美元的 EAC 調整主要是由於本季離散專案接近完成時為滿足客戶要求而需要的計劃外設計和測試週期。出色的成本控制和規模驅動的持續營運槓桿支撐了我們連續季度調整後EBITDA 的改善，抵消了這些毛利率的下降，因為Redwire 的SG&A 費用目前低於收入的20%，比第一季的27.8%顯著下降2023 年第四季。這就是經營槓桿和規模發揮作用的好處。

Please turn to slide 18. As we have mentioned several times today, throughout the first quarter, we continue to make prudent investments to support growing customer demand also, industry leading innovation. We're risk-reducing and we're also achieving global business scale. During the first quarter of 2024, we made $2.4 million in capital expenditures, our highest first quarter capital investments since going public plus, we made $1.0 million in investments in internal research and development and $1.0 million in a variety of other corporate investments that mostly flow through the SG&A line. We continue to demonstrate our ability to financially perform now while also making investments for future growth, risk reduction, and profitability.

請參閱投影片 18。我們正在降低風險，並且正在實現全球業務規模。 2024 年第一季度，我們的資本支出為240 萬美元，這是自上市以來第一季度最高的資本投資，另外，我們在內部研發方面的投資為100 萬美元，在各種其他企業投資中的投資為100 萬美元，這些投資主要流向通過 SG&A 線。我們繼續展示我們現在的財務表現能力，同時為未來成長、降低風險和獲利能力進行投資。

Please turn to slide 19. Similar to last quarter, on the left-hand chart, we show free cash flow. As a reminder, free cash flow provides a metric based on our US GAAP cash from operations minus capital expenditures. On a year-over-year basis, quarterly free cash flow improved by $15.2 million to a positive $0.4 million for the first quarter, due to a $16.8 million improvement in cash from operations. Credit goes to the revenue growth already discussed. But in addition, we had more efficient and effective working capital management over the first quarter while continuing to invest at record rates as our cash generation now funds our growth. This is due to improving returns on our invested capital as compared to our cost of capital, creating a virtuous cycle that differentiates us in a very capital-intensive industry. On a last 12-month basis, we recorded both positive cash from operations of $18 million and for the last 12 months, positive free cash flow of $8.1 million, a significant first for Redwire. As you can see on the right-hand chart, this yields higher available cash and cash equivalents of $32.6 million as of March 31, 2024, with $47.6 million in total available liquidity.

請翻到投影片 19。提醒一下，自由現金流提供的指標是基於我們的美國公認會計原則營運現金減去資本支出。與去年同期相比，第一季季度自由現金流增加了 1,520 萬美元，達到正 40 萬美元，因為營運現金增加了 1,680 萬美元。這歸功於已經討論過的收入成長。但除此之外，我們在第一季的營運資金管理更加高效和有效，同時繼續以創紀錄的速度進行投資，因為我們的現金生成現在為我們的成長提供了資金。這是由於與資本成本相比，我們的投資資本回報率有所提高，創造了一個良性循環，使我們在資本高度密集的行業中脫穎而出。在過去 12 個月的基礎上，我們記錄了 1800 萬美元的營運現金流，以及過去 12 個月的 810 萬美元的正自由現金流，這對 Redwire 來說是第一次。正如您在右側圖表中看到的那樣，截至 2024 年 3 月 31 日，這會產生 3,260 萬美元的可用現金和現金等價物，其中可用流動性總額為 4,760 萬美元。

Please turn to slide 20 for a brief discussion on the outlook for the remainder of 2024. Our first quarter was a strong start to the year and as a result, for 2024, we affirm full year revenue at $300 million, which represents a 23% year-over-year growth rate. This quarter's revenue achieved 29% of our $300 million annual revenue guidance forecast, and much of this outside quarterly revenue was due to the timing of long-lead items associated with large contract wins in 2023. We are not currently forecasting similar large long-lead purchases during the remainder of 2024. Finally, through our excellence in execution initiatives, we continue to focus on improving our program management to reduce EAC volatility while we also create more operating leverage and cost efficiency to continue on our path to profitability. I will now turn the presentation back over to Pete, to provide brief final remarks. Pete?

請轉至投影片 20，簡要討論 2024 年剩餘時間的前景。本季的營收達到了我們3 億美元年度營收指引預測的29%，其中大部分外部季度收入是由於與2023 年贏得大合約相關的長期專案的時間安排所致。大型長期專案2024 年剩餘時間內的採購。我們的獲利之路。我現在將把演示轉回給皮特，以提供簡短的最後評論。皮特？

Thank you, Jonathan, please turn to slide 21. I want to thank all of Redwire's team for this quarter's excellent results. A total global effort that we will work to continue in the second quarter of 2024 and beyond. We will now open the floor for questions.

謝謝喬納森，請翻到幻燈片 21。我們將在 2024 年第二季及以後繼續共同努力。我們現在開始提問。

(Operator Instructions) Greg Konrad, Jefferies.

（操作員說明）Greg Konrad，Jefferies。

Good morning.

早安.

Morning, Greg.

早安，格雷格。

Hey, Greg.

嘿，格雷格。

You have a good quarter and then people ask why isn't the outlook better, which is kind of what I'm getting at, but I think you explained some of it on the long-lead items. But just thinking about the $610 million of submitted bids year-to-date. Can you maybe talk about the dynamics around what type of win rates you see and how do you think about typical conversion awards? And then just thinking about the walk for 2024 and the rest of the year, what's kind of in backlog versus assumption of yet to win? And just thinking about potential upside for the year.

你有一個很好的季度，然後人們問為什麼前景沒有更好，這就是我的意思，但我認為你解釋了一些關於長期專案的內容。但只要想想今年迄今已提交的 6.1 億美元的投標。您能否談談您所看到的獲勝率類型的動態以及您如何看待典型的轉換獎勵？然後想想 2024 年和今年剩餘時間的步行，積壓的訂單與尚未獲勝的假設相比是什麼樣的？只是考慮今年的潛在上漲空間。

So that was like three questions in one. So congratulations on your efficiency (laughter)

這就像是三個問題合而為一。恭喜你的效率（笑）

I still get a follow-up.

我仍然得到跟進。

Yeah, alright, good. So the contracted backlog is printed, right? You can see -- the best way I would think about that is you can see what our contracted backlog was at the beginning of 2023. What our forecast was 2023 was for, what the contract backlog is at the start 2024 and then evaluate whether what you think of our forecast result of what's in contracted backlog now. So that's essentially how we think about contracted backlog and what that means to us.

是啊，好吧，很好。那麼合約積壓的訂單就印出來了，對嗎？你可以看到——我想到的最好方法是你可以看到我們在 2023 年初的合約積壓是多少。我們對現在合約積壓的預測結果。這基本上就是我們對合約積壓的看法以及這對我們意味著什麼。

In terms of the bidding, you can see that bidding is accelerating and that's a function of two dynamics. One is more aggressively going to market, but two, as part of the growth principles is bidding those higher-level production contracts for higher quantities as well as some larger contracts for -- we're the full systems integrator, right? So that's really the takeaway from, I think the key takeaway from the increase in the number of bids.

就出價而言，您可以看到出價正在加速，這是兩個動態的函數。一是更積極地進入市場，但二是作為成長原則的一部分，競標更高數量的更高級別的生產合約以及一些更大的合約——我們是完整的系統整合商，對嗎？我認為這確實是投標數量增加的關鍵。

In terms of win rate, we're just dealing with too dynamic of a market and too smaller numbers, quite frankly, and such a variety of different bid sizes that the bid -- the win rate tends to bounce around. So we don't publish a win rate associated with that. But the key is that when you look on an annual basis, which I always like to emphasize is the best time scale to measure an emerging growth company like Redwire's performance. When you look at that on an annual basis, you can see that there is -- or you can make your own evaluation of whether it's the backlog plus the bid, our rate and size is enough to sustain our current year forecast. And we believe that it is and that's how we came up with that number.

就中標率而言，坦白說，我們只是在應對市場的動態變化和數量太少，以及出價大小的差異，導致中標率往往會出現波動。所以我們不會發布與此相關的勝率。但關鍵是，當你以年度為基礎時，我總是想強調的是衡量像 Redwire 這樣的新興成長型公司績效的最佳時間尺度。當您以年度為基礎查看時，您可以看到 - 或者您可以自己評估是否是積壓訂單加上出價，我們的費率和規模足以維持我們今年的預測。我們相信確實如此，這就是我們得出這個數字的方式。

In terms of the lumpiness, I think Jonathan did a pretty good job explaining. This lumpiness cuts two ways. You have a nice lumpy quarter; in the fourth quarter we have really strong contract awards and then the first quarter is lower. Same thing with like you can have a lower revenue a quarter and then due to the timing of critical subcontracts or long-lead items, that number can go up. And it's just the first quarter, it's early in the year. So we're very pleased with the results for first quarter revenue. But at this point, we're going to hold to our $300 million revenue forecast for the year as we see the remainder of these quarters play out.

就塊狀而言，我認為喬納森（Jonathan）解釋得很好。這種塊狀有兩個面向。你度過了一個美好的、坎坷的季度；在第四季度，我們獲得了非常強勁的合同，然後第一季就較低了。同樣的事情，你每個季度的收入可能會較低，然後由於關鍵分包合約或長期專案的時間安排，這個數字可能會上升。這只是第一季度，今年年初。因此，我們對第一季的營收結果非常滿意。但目前，我們將維持今年 3 億美元的營收預測，因為我們看到這些季度的剩餘時間將會結束。

Did I get every part of your question, Greg, or did I mention --

格雷格，我是否聽清了你問題的所有部分，或者我是否提到過——

Yeah, no, that was great and now for the follow up. EBITDA momentum, good SG&A rationalization, gross margins kind of bounced around. It was high 16% in the quarter, dating back to the first three quarters of last year. I think you were more in the mid-20s? You called out the EACs, which is probably one driver. But just a sense of any impact from mix and does the higher long lead items have anything to do with the gross margin or is that generally booked at a pretty consistent gross margin?

是的，不，那太棒了，現在是後續行動。 EBITDA 動能良好，SG&A 合理化良好，毛利率有所反彈。該季度成長率高達 16%，可以追溯到去年前三季。我想你大概是20多歲吧？您呼叫了 EAC，這可能是一名司機。但只是了解混合帶來的任何影響，以及較高的長提前期專案是否與毛利率有關，或通常以相當一致的毛利率預訂？

Yeah, no, I think you're onto it, right? And so hopefully, obviously you've been following us for a while. So you're really getting to know the company. That's exactly right, right? Like EACs, they happen from quarter to quarter. The important thing is that we drive through our excellence in execution to get -- have those puts and takes even out over the year. And also there's going to be ups and downs in terms of the contract mix of the revenue that's recognized by a quarter-by-quarter basis. So when you tend to have more material purchases or really large subcontract, they can have lower gross margins as opposed to where a lot of it's being driven by maybe labor utilization or some other dynamic that all goes into the calculus. It is also has to do with what are the products that are leading for that quarter. The really large-scale products have really high operating income on a absolute value basis, but might on a percentage basis be lower whereas and if those are the ones that are primarily driving revenue in a given quarter, that will bring it down and then in other quarters when we do maybe a delivery of a higher volume -- or higher margin product set that can have an effect on a quarter-by-quarter basis.

是的，不，我想你已經明白了，對吧？希望您已經關注我們一段時間了。這樣你就真正了解這家公司了。完全正確，對吧？與 EAC 一樣，它們每季都會發生。重要的是，我們要透過卓越的執行力來實現這一年的看跌期權和索取期權的平衡。而且按季度確認的收入合約組合也會有起伏。因此，當你傾向於購買更多的材料或非常大的分包合約時，他們的毛利率可能會較低，而不是其中很大一部分是由勞動力利用率或其他一些動態驅動的，所有這些都需要考慮。它也與該季度的領先產品有關。真正的大型產品在絕對值基礎上具有非常高的營業收入，但在百分比基礎上可能會較低，而如果這些產品是給定季度主要推動收入的產品，那麼這將使其下降，然後在其他季度，我們可能會交付更高數量或更高利潤的產品組合，這可能會按季度產生影響。

And that's why it's so critical that what we focus on as a management team is that overall annual balance in terms of either LTM looking backwards or what we look to be our future and that all goes into our forecast. But I do want to add, and I've said this and emphasized this in previous calls, that we're constantly trying to balance between top line and bottom line. And we have a goal or an objective to always be EBITDA positive and to drive towards profitability. But that doesn't necessarily mean in certain instances where it's really important that we go out and take market share that we may make decisions at times to go out and win large revenue projects that might have lower than average operating margins. So I think that's -- what I'm trying to articulate is in certain cases, we may optimize for the top line and the future growth because we know we'll be able to squeeze the operating margins out longer term and that can have near term or short-term fluctuations that have an impact as well.

這就是為什麼我們作為管理團隊關注的是整體年度平衡，無論是過去的長期管理還是我們對未來的展望，這都如此重要，所有這些都納入我們的預測。但我確實想補充一點，我已經說過這​​一點，並在之前的電話會議中強調過這一點，我們一直在努力在營收和利潤之間取得平衡。我們的目標是始終實現 EBITDA 為正值並推動獲利。但這並不一定意味著在某些情況下，我們走出去並獲得市場份額確實很重要，我們有時可能會做出決定去贏得可能低於平均營業利潤率的大型收入項目。因此，我認為，我想要闡明的是，在某些情況下，我們可能會針對營收和未來成長進行最佳化，因為我們知道我們將能夠長期壓縮營運利潤率，這可能會帶來近短期或短期波動也會產生影響。

Thank you.

謝謝。

Griffin Boss, B. Riley Securities.

Griffin Boss，B. Riley 證券公司。

Hey, good morning. Thanks for taking my question. So I want to dig into the venture optionality. I'm glad you guys sort of honed in on it in this presentation. You cite this $80 billion to $180 billion drug discovery market size. In the past, you've talked about your specific internal projection for a five-year TAM of $5 billion to $10 billion for this explorer live and work in space. So I guess my question is, are you seeing maybe a bigger near-term TAM for Redwire, given that market size for drug discovery and what seems to be a rapidly growing interest in microgravity research?

嗨，早安。感謝您提出我的問題。所以我想深入研究創投的選擇性。我很高興你們在這次演講中對此進行了磨練。您引用了 800 億至 1800 億美元的藥物發現市場規模。過去，您談到了您對這位在太空生活和工作的探險家的五年 TAM 50 億至 100 億美元的具體內部預測。所以我想我的問題是，考慮到藥物發現的市場規模以及人們對微重力研究的興趣似乎迅速增長，您是否會看到 Redwire 近期可能會出現更大的 TAM？

Hey, Griffin. How are you? Thank you for that question. So yeah, we are trying to focus, I think each quarter we'll focus on a different growth principle because obviously part of this call is to help educate investors on the Redwire operating model. And this is a critical part of our business that I think sometimes gets overlooked that has real tangible value, especially based on some of the things that are already going out on the marketplace there, right? We do have a lot of venture funding and venture investing activity happening in this space that gives interesting comps in terms of trying to put a valuation on this venture optionality. So we wanted to hone in to make sure that investors understand where we're positioned in that context. And where we're positioned on this context is the TAMs are pretty much the TAMs that you just articulated. But what we want to do is start to educate investors just how far along we are in transitioning this from what I would call researcher experimentation into an actual production level business. And that's why I tried to emphasize the cadence at which we're starting to do this.

嘿，格里芬。你好嗎？謝謝你提出這個問題。所以，是的，我們正在努力集中精力，我認為每個季度我們都會關注不同的成長原則，因為顯然這次電話會議的一部分是幫助投資者了解 Redwire 營運模式。這是我們業務的關鍵部分，我認為有時會被忽視，但它具有真正的有形價值，特別是基於那裡市場上已經上市的一些東西，對嗎？我們確實在這個領域發生了很多風險融資和風險投資活動，在嘗試對這種風險選擇進行估值方面提供了有趣的比較。因此，我們希望努力確保投資者了解我們在這種背景下的定位。我們在此背景下的定位是 TAM 幾乎就是您剛才闡述的 TAM。但我們想要做的是開始教育投資者，我們在將其從我所說的研究人員實驗轉變為實際生產水平業務方面走了多遠。這就是為什麼我試著強調我們開始這樣做的節奏。

Previously, you would spend a lot of time kind of researching and developing. It took quite frankly, many years to come up with the ability for PIL-BOX to work, quite frankly. And now it works. And we're transitioning out of that period. That investment has been made. If you look at what we're achieving in terms of the PIL-BOX and the cadence, and you compare that to the amount that we have to invest on the slides that Jonathan showed you on our CapEx, our IRAD. We're past the heavy investment phase in this capability. Now we have to produce, or we have to demonstrate that we can reach a production level cadence. And we have started to do that now by showing that we had a launch, and we were able to do in mere three months a turnaround another launch, and we have 16 additional launches for the remainder of the year manifested. One of the key questions we get around this technology is, can you get to the production level to really turn this into the business that would satisfy or help you get a large enough share of those TAMs. And that's really what that venture optionality is all about.

以前，您會花費大量時間進行研究和開發。坦白說，我們花了很多年才想出 PIL-BOX 的工作能力。現在它起作用了。我們正在擺脫那個時期。這項投資已經完成。如果您看看我們在 PIL-BOX 和節奏方面取得的成就，並將其與我們在 Jonathan 向您展示的關於我們的資本支出、我們的 IRAD 的幻燈片上必須投資的金額進行比較。我們已經度過了對此功能的大量投資階段。現在我們必須生產，或者我們必須證明我們可以達到生產水準的節奏。我們現在已經開始做到這一點，透過展示我們已經發布了一次，並且我們能夠在短短三個月內完成另一次發布，並且在今年剩餘時間內我們還有 16 次額外的發布。我們圍繞這項技術解決的關鍵問題之一是，您能否達到生產水平，真正將其轉化為滿足或幫助您獲得足夠大的 TAM 份額的業務。這就是創投選擇性的真正意義。

We didn't deep dive too much into the tech, but just for some additional color, for these crystals, there's two interesting things about the production model here. For the crystals to be valuable to biopharma companies, you need a symbol size level of what are called seed crystals. So you're not trying to develop in microgravity all of the crystals only for production. You're delivering a seed crystal. It's actually the same way it's done on earth. They build that seed crystals on earth and then they use that in their production thing. And each one of these, what we call investigations, PIL-01, PIL-02, PIL-03 are looking at as high as -- I think we've done as high as 36 compounds in a single investigation. So you're looking at 36 different crystals that you can develop a seed crystal for. When you start taking that and you say, okay, we have two that have gone up and down, a third that's still up there that should be back sometime this summer and then 16 additional manifested, you start to see that we can reach production level seed crystal development on the International Space Station, which has been a question for some, is this something that you have to do on a commercial space station in order to achieve the correct volumes or is this something that can be done on the ISS? We believe we're demonstrating that this is something that can be done now on the ISS and I believe our partnerships with Eli Lilly and Butler and everything like that, we're optimistic that these are going to be proved out over time.

我們沒有深入研究這項技術，但只是為了一些額外的顏色，對於這些晶體，這裡的生產模型有兩個有趣的事情。為了使晶體對生物製藥公司有價值，您需要所謂的籽晶的符號大小等級。因此，您並不是試圖在微重力下開發所有僅用於生產的晶體。你正在運送一顆晶種。這實際上和地球上的做法是一樣的。他們在地球上建造晶種，然後將其用於生產。其中每一項，我們所說的調查，PIL-01、PIL-02、PIL-03 的調查量都高達——我認為我們在一項調查中已經調查了多達 36 種化合物。因此，您正在尋找 36 種不同的晶體，您可以為其開發籽晶。當你開始採取這一點時，你說，好吧，我們有兩個已經上升和下降，第三個仍然在那裡，應該在今年夏天的某個時候回來，然後另外16 個出現，你開始看到我們可以達到生產水平國際太空站上的晶種開發一直是一些人的疑問，這是必須在商業太空站上進行才能達到正確體積的事情，還是可以在國際太空站上完成的事情？我們相信我們正在證明這是現在可以在國際太空站上完成的事情，我相信我們與禮來公司和巴特勒公司以及類似的合作夥伴關係，我們樂觀地認為這些將隨著時間的推移得到證明。

So the TAMs are essentially the same. The critic -- or what I think the critical milestones that we're achieving is that we're moving this from being a research project into actually developing these. We are getting smarter and we're making the investments to really understand this industry, making seed crystals for biopharma is not anything new, doing it in space is what's new. We envision a day someday where we're in the marketplace and our customers don't even ask about where it was developed. They just want the best possible crystal there is and the fact that it was developed in space is really irrelevant to the execution of the business model.

所以 TAM 本質上是相同的。批評者——或者我認為我們正在實現的關鍵里程碑是，我們正在將其從研究項目轉變為實際開發這些項目。我們變得越來越聰明，我們正在進行投資以真正了解這個行業，為生物製藥製造晶種並不是什麼新鮮事，在太空中進行才是新鮮事。我們設想有一天，當我們進入市場時，我們的客戶甚至不會詢問它是在哪裡開發的。他們只是想要最好的晶體，而它是在太空中開發的事實與商業模式的執行實際上無關。

So but there has been some really interesting dynamics in the venture world that I think are worth noting in terms of when you start looking at what this venture optionality -- how to value this venture optionality in Redwire that is critical to our longer-term growth plan. And in my mind, I think of venture optionality as something that's still five years away. That's how we differentiate between the space now that we deliver today that is generating revenue and EBITDA. I've talked about in the past, our heritage plus innovation strategy where we're generating the cash flow generating and the profit generating capabilities now on our infrastructure side. But those give us the ability, the optionality, if you will, to again use that word, to look forward and really position for some of these game changing, yes, less defined, yes, still a few years out, but nevertheless very valuable breakthrough technologies in the future.

所以，但創投界存在一些非常有趣的動態，我認為值得注意的是，當你開始研究這種創投的選擇性時，如何評估Redwire 的這種創投的選擇性，這對我們的長期成長至關重要計劃。在我看來，創投的選擇性還需要五年的時間。這就是我們如何區分我們今天提供的產生收入和 EBITDA 的空間。我過去談到我們的傳統加創新策略，我們現在在基礎設施方面產生現金流和利潤產生能力。但是，如果你願意的話，這些給了我們能力，選擇權，再次使用這個詞，展望並真正定位其中一些遊戲規則改變，是的，不太明確，是的，還需要幾年時間，但仍然非常有價值未來的突破性技術。

That was excellent color.

那是極好的顏色。

Yeah. I just want to put a financial element to what Pete just talked about. We gave your $5 billion to $10 billion TAM on that prior to PIL-BOX-02. Pete talked about the up tempo, to use the operational term. It's getting faster than we thought when we did the $5 billion to $10 billion. We will update the $5 billion to $10 billion. We will talk about it maybe being brought forward or again stay the same, but we are more confident in that $5 billion to $10 billion, and we'll be giving an update to that.

是的。我只是想在皮特剛才談到的內容中加入財務元素。在 PIL-BOX-02 之前，我們為此提供了 50 億至 100 億美元的 TAM。皮特談到了節奏，用操作術語來說。當我們投入 50 億到 100 億美元時，它的速度比我們想像的要快。我們將把50億美元更新為100億美元。我們將討論它可能提前或再次保持不變，但我們對 50 億至 100 億美元更有信心，我們將對此進行更新。

The second thing, and this is actually really important to demonstration of value. We are seeing tens of millions of dollars raised in the market today at hundreds of millions of dollars of valuation for companies that are very interested in doing this. And obviously, we're a competitor, so we don't give a lot of competitive information. But the bottom line is that the rapidity, the quickening of the pace here to development means that we can demonstrate value in this a number of different ways. But most importantly, it's to do it for our customers, right? And Eli Lilly and is that customer with Butler University and that will accelerate.

第二件事，這對於展示價值其實非常重要。我們看到今天市場上籌集了數千萬美元，估值達數億美元，而這些公司對此非常感興趣。顯然，我們是競爭對手，所以我們不會提供太多競爭資訊。但最重要的是，發展速度的加快意味著我們可以透過多種不同的方式來展示其價值。但最重要的是，這是為了我們的客戶，對嗎？禮來公司是巴特勒大學的客戶，這將會加速。

Great. That was exactly what I was looking for. Appreciate all the color there. And then just for the quick follow-up, you talked about moving up the value chain. We've seen it, SabreSat, Phantom, great progress to see. Can you give some more color on this modified commercial earth imaging spacecraft that you're developing? I think it's a steady contract for NASA's Mars exploration program?

偉大的。這正是我所尋找的。欣賞那裡的所有顏色。然後，為了快速跟進，您談到了向價值鏈上游移動。我們已經看到了 SabreSat、Phantom，看到了巨大的進步。您能否為您正在開發的這款經過改造的商業地球成像太空船提供更多資訊？我認為這是 NASA 火星探索計劃的穩定合約？

So we don't say which the study contract for the VLEO is oriented towards, right? Now, we did also win study for the Mars investigation. Those are two totally different things, right? So unrelated, I just want to be clear about that. So but to give a little additional color, I mean, what we're looking at is when we look at moving up the value chain is not -- is picking and choosing where we're going to do the full systems integration and trying to avoid the mistake of being a follower and a me-too in terms of that marketplace for spacecraft.

所以我們沒有說VLEO的研究合約是面向哪個，對吧？現在，我們也贏得了火星調查的研究。這是完全不同的兩件事，對吧？如此無關，我只是想澄清這一點。所以，但為了提供一點額外的色彩，我的意思是，當我們考慮向價值鏈上游移動時，我們所關注的不是——挑选和選擇我們將在哪裡進行完整的系統集成，並嘗試避免在航天器市場上成為追隨者和模仿者的錯誤。

Of course, we already do full systems integration now in Europe with the PROBA satellite, and we've run a number of missions for decades doing that. But we see a leap ahead opportunity in VLEO and the potential of VLEO is really strong. You get -- there has been already a number of experimental missions that have been operated in VLEO, that show that being closer to earth can reduce your power requirements, it can give you higher fidelity imagery. It can give you higher levels of communication. So the VLEO moving up the value chain is not only about becoming a full systems integrator and expanding that part of our business, but also we see it as a leap ahead technology.

當然，我們現在已經在歐洲使用 PROBA 衛星進行了全面的系統集成，並且幾十年來我們已經執行了許多任務。但我們看到了 VLEO 的飛躍機會，而且 VLEO 的潛力非常強大。你會發現，已經有許多在 VLEO 中運行的實驗任務表明，靠近地球可以降低你的電力需求，它可以為你提供更高保真度的圖像。它可以為您提供更高水準的溝通。因此，VLEO 向價值鏈上游移動不僅意味著成為完整的系統整合商並擴展我們的這部分業務，而且我們將其視為跨越式技術。

And there's a lot of -- the nice thing about getting the study as well as wanting to emphasize that we're already a performer as a subcontractor to Thales Alenia on the Skimsat program, the European VLEO program is that we're pretty far ahead now in terms of relative to the overall industry development of spacecraft and VLEO. And we're really excited about that validation from the market, especially on the SabreSat side that this is something that customers are really interested in and specifically understanding more what the performance parameters are that we can achieve.

獲得這項研究的好處是，我們已經是 Thales Alenia 在 Skimsat 專案和歐洲 VLEO 專案上的分包商，我們遙遙領先。我們對市場的驗證感到非常興奮，特別是在 SabreSat 方面，這是客戶真正感興趣的事情，並且特別了解我們可以實現的性能參數。

Got you. That's helpful. I guess what I was trying to get at was specifically for that Mars exploration program and the earth imaging spacecraft. Is that a new capability for you? As in is that just another example of how you're showcasing rapid spacecraft development and deployment and just moving up the value chain in general?

明白你了。這很有幫助。我想我想要表達的是專門針對火星探索計畫和地球成像太空船的。這對你來說是一種新能力嗎？這是否只是你們展示快速太空船開發和部署以及整體價值鏈提升的另一個例子？

Yeah, no, it is. Well, anything that goes to margin is going to be new. But that particular study is based on our decades of heritage providing PROBA, which is our traditional LEO platform.

是的，不，是這樣。好吧，任何涉及利潤的東西都將是新的。但這項特殊研究是基於我們幾十年來提供 PROBA 的傳統，這是我們傳統的 LEO 平台。

Right. Understood, okay. Okay, great. I'll pass it off. Thanks a lot for taking my questions.

正確的。明白了，好吧。好的，太好了。我會把它傳遞出去。非常感謝您回答我的問題。

Great. Thank you.

偉大的。謝謝。

Brian Kinstlinger, Alliance Global Partners.

Brian Kinstlinger，聯盟全球合作夥伴。

Great. Thanks for taking my questions. Impressive submissions for the first quarter. As you look at the RFPs out available for bidding, the $6.3 billion pipeline in the commentary on bidding larger programs, should we expect to see proposal submissions to remain at this elevated level consistently on a quarterly basis? And then did I hear you accurately you're bidding more as a prime than you have in the past?

偉大的。感謝您回答我的問題。第一季的提交量令人印象深刻。當您查看可用於投標的 RFP 時，即投標大型項目的評論中的 63 億美元管道，我們是否應該期望看到提案提交量按季度持續保持在這個較高水平？然後我是否準確地聽到你的意思，你作為總理的出價比過去更高？

So I'll take the last part first. Yes, we are bidding more as a prime than we had in the past. The other part, the number of bids, our goal is to continue to keep it at the level that it's at right now. We have to take into account however, the RFPs come out at on the timeline that they do, right? So many of these are government, large government procurements, but the commercial customers have their own tempo as well.

所以我先講最後一部分。是的，我們作為主力的出價比過去更高。另一部分是出價數量，我們的目標是繼續保持在現在的水平。然而，我們必須考慮到 RFP 是按時間表發布的，對嗎？其中很多是政府、大型政府採購，但商業客戶也有自己的步調。

So what I say that -- so the answer to your question, like I said, as we're bidding more prime and we want to keep our bid rate up. And it's really the bids under review that are really critical that we have that number up. But it will also fluctuate like anything else from a quarter-to-quarter basis based on if you turn something in, some things due the week before the end of the quarter and it's a really large procurement, that's going to affect the numbers. Or likewise if something's -- the RFP gets turned in and the bid gets submitted in the first week of the following quarter, that's going to -- you can get some of these quarter-by-quarter deviations that look lumpy, but it has more to do with the timing of the submission than anything else. Does that answer your question?

所以我所說的 - 所以你的問題的答案，就像我說的，因為我們出價更高，我們希望保持我們的出價較高。對於我們提高這個數字來說，真正至關重要的是正在審查的投標。但它也會像其他任何事情一樣按季度波動，這取決於你是否上交某些東西，有些東西在季度末前一周到期，而且這是一筆非常大的採購，這會影響數字。或者同樣地，如果有什麼事情——RFP被上交並且投標在下個季度的第一周提交，那麼——你可能會得到一些看起來不穩定的季度偏差，但它還有更多與提交的時間有關。這是否回答你的問題？

It does. Thanks. And my follow-up in regards to the EAC adjustments. What are the lessons learned for Redwire? And what can they glean from these as it prices future contracts and or accounts for flexibility in changes to program requirements in its contracting?

確實如此。謝謝。我對 EAC 調整的後續行動。 Redwire 學到哪些教訓了？當它為未來合約定價和/或考慮合約中專案要求變化的靈活性時，他們可以從中收集到什麼？

Yeah, no, it's a great question. Well, first of all, it just underscores the fact that capability and the ability to deliver with operational excellence is key. And you have to also be able to be disciplined in the way that you bid. But it's a bit of a cliché now, but many clichés start because it's true is that space is hard. So you're going to -- we bid a lot of firm fixed price contracts and sometimes you're going to have an EAC. And although these things do have an impact on financial performance on a near-term quarter-by-quarter basis, if you're running a really good operation, you're going to see that, that levels out over time.

是的，不，這是一個很好的問題。嗯，首先，它只是強調了這樣一個事實：能力和卓越營運能力是關鍵。而且您還必須能夠遵守出價方式。但這現在有點陳腔濫調了，但許多陳腔濫調的開始是因為太空確實很困難。因此，我們會投標很多固定價格合同，有時您會獲得 EAC。儘管這些事情確實會對近期逐季度的財務表現產生影響，但如果你的營運確實良好，你會看到這種影響會隨著時間的推移而趨於平穩。

So we focus on our long-term profitability, not the perturbations that happen on a project-by-project basis, which in some cases can be high relative to a small base in the near term. However, these things also indicate that in this particular case, we found something in test, and we had to move out and fix it. So what may seem as large EAC in the near term, also understands that it underscores the quality of our processes to know that we are testing these things and we're finding deviations and we're moving out.

因此，我們關注的是我們的長期獲利能力，而不是各個專案發生的擾動，在某些情況下，相對於短期的小基數來說，擾動可能會很高。然而，這些事情也表明，在這種特殊情況下，我們在測試中發現了一些東西，我們必須搬出去並修復它。因此，短期內看似大型的 EAC 也明白，它強調了我們流程的質量，因為我們知道我們正在測試這些東西，我們正在發現偏差，我們正在退出。

As we get better and better at executing firm fixed prices and some of these are just the result of growing pains in addition to space being really hard. As we get better and better to that, we hope that you see balances from fixed price -- the contracts also offer the opportunity to over-perform where you may have a reserve, or you find that you can execute well with more efficiency where the overall impact can move in the other direction. And we've seen that in previous quarters where we've had a tailwind in terms of realizing a profit on particular programs greater than what we had expected.

隨著我們在執行固定固定價格方面做得越來越好，其中一些只是除了空間非常困難之外的成長煩惱的結果。隨著我們在這方面做得越來越好，我們希望您能看到固定價格的餘額- 合約還提供了在您可能有儲備的情況下超額執行的機會，或者您發現您可以在有儲備的情況下以更高的效率很好地執行整體影響可能會朝另一個方向發展。我們已經看到，在前幾個季度中，我們在特定項目上實現的利潤超出了我們的預期，並取得了順風車。

So the critical thing is, that I'll just continue to emphasize, is that we look at our performance on a annual basis. We not and we recognize that sometimes these metrics are going to move up and down on a quarter-by-quarter basis, depending on what's going on in that quarter.

因此，我將繼續強調的關鍵是，我們每年都要審視我們的表現。我們沒有，而且我們認識到，有時這些指標會逐季度上下波動，這取決於該季度發生的情況。

Thank you.

謝謝。

Suji Desilva, ROTH MKM.

蘇吉·德席爾瓦，羅斯·MKM。

Good morning, Peter, Jonathan. Congrats on the revenue in the quarter. I just want to ask about (multiple speakers) sure thing. I want to ask about the non-recurring, recurring seasonality of your -- the bookings and the fact that it seems to come in at the end of the year. I'm just wondering if that's a trend you're observing, if there's any kind of explanation for that or whether it's just happens then and it wouldn't necessarily recur?

早安，彼得，喬納森。恭喜本季的營收。我只是想問（多個發言者）確定的事情。我想詢問一下你們的非經常性、經常性季節性——預訂以及它似乎在年底到來的事實。我只是想知道這是否是您正在觀察的趨勢，對此是否有任何解釋，或者它是否只是發生了並且不一定會再次發生？

It's strange, right? So I would say it's not a trend. It's a two data point trend. So it just happened to kind of fall out that way. If there is something associated with our underlying, maybe the flow of our RFPs or how quickly we respond from Christmas break and all of a sudden start ramping up for the rest of the year. We haven't been able to figure that out yet. So, I don't want to say that at 2 times has us looking at it, but I'm not ready to declare it some sort of seasonality or anything like that because I don't think we understand --

很奇怪，對吧？所以我想說這不是一種趨勢。這是兩個數據點的趨勢。所以事情就這樣發生了。如果有什麼與我們的基礎相關的話，也許是我們的 RFP 的流量，或者我們從聖誕假期到今年剩餘時間的反應速度有多快。我們還無法弄清楚這一點。所以，我不想說兩次讓我們關注它，但我不准備宣布它是某種季節性或類似的東西，因為我認為我們不理解 -

Definitely not due to the weather, Suji. It's or anything like that. I mean we make light of it because we really do believe that the nature of this is to look at our company on an annual basis or set of annual. And if you look at the LTM, we're banging away. We're doing what we're saying, what we're doing on the bidding strategy and the amount of contracts we're winning. I think what's most notable is that for this quarter to see the number of bids move up almost 200% and also for us to then disclose that we're seeing more of that in the future is I think, notable. How that then translates into quarterly contract wins, is just look at us on more an annual basis. And that's why we're starting to talk a little bit about LTM, last 12 months, as part of that, to give more education to you and the rest of the investor community.

絕對不是因為天氣的原因，Suji。它或類似的東西。我的意思是，我們輕視它，因為我們確實相信，這的本質是每年或每年一次地審視我們的公司。如果你看看 LTM，你會發現我們正在努力。我們正在做我們所說的、我們在投標策略和我們贏得的合約數量方面所做的事情。我認為最值得注意的是，本季的出價數量增加了近 200%，而且我們隨後披露，我們在未來會看到更多這樣的情況，我認為值得注意。如何將其轉化為季度合約勝利，只需以每年為基礎來觀察即可。這就是為什麼我們開始談論過去 12 個月的 LTM，作為其中的一部分，為您和其他投資者社群提供更多教育。

Got it. Sorry, I might have cut out there briefly. And then also my other question is following up on microgravity. With the 16 missions and manifest, are those new customers or existing more Eli Lily type business? Or is it 100% commercial? Or is there some government mixed in there? And most importantly, can the customers move -- customer readiness move at the cadence that you're trying to do in terms of production? Can they pull off being ready for those cadence you're trying to achieve? Thanks.

知道了。抱歉，我可能已經簡短地刪掉了。我的另一個問題是微重力的後續問題。有了 16 項任務和清單，這些是新客戶還是現有的更多 Eli Lily 類型的業務？還是100%商業化？還是說有政府介入其中？最重要的是，客戶的移動－客戶準備能否按照您在生產方面嘗試的節奏移動？他們能否為您想要達到的節奏做好準備？謝謝。

Yes. Well, so we obviously don't disclose who our customers are in every mission until we do. And there are a mix of customers that are interested in all of these. And in certain instances, if we don't and we're looking harder at this, have a customer, there are compounds out there that are open that are not protected that Redwire can fly on its own behalf to generate its own intellectual property, and that's really exciting as well. So we will make, I guess, the takeaway is we will make each one of those 16 missions useful.

是的。好吧，所以在我們這樣做之前，我們顯然不會透露每個任務中的客戶是誰。對所有這些都感興趣的客戶多種多樣。在某些情況下，如果我們不這樣做，並且我們會更加努力地考慮這一點，有一個客戶，那裡有一些開放的化合物不受保護，Redwire 可以代表自己飛行以產生自己的智慧財產權，這也非常令人興奮。因此，我想，我們的結論是，我們將使這 16 項任務中的每一項都變得有用。

Yeah. And it's important to note, these are partner customers, right? And the nature of how we do this, we don't lose money on this, right? The research and development has been put in place. We are now in the development phase. As part of that, the economics start to change and adjust and become more like a contract developer, a manufacturing office or organization, which in the biotech world is a very know -- Suji, you know this world. It has economics that could create multiples of value for the invested capital that we put in already. And again, we are decades further ahead than many of our competitors. We've been doing this for a very, very long time, and it's starting to come to fruition with the intellectual property being Redwire intellectual property.

是的。值得注意的是，這些是合作夥伴客戶，對吧？我們這樣做的本質是，我們不會因此而賠錢，對吧？研究開發工作已經到位。我們現在正處於開發階段。作為其中的一部分，經濟學開始發生變化和調整，變得更像是合約開發商、製造辦公室或組織，這在生物技術世界中是非常了解的——蘇吉，你了解這個世界。它的經濟學可以為我們已經投入的投資資本創造數倍的價值。再說一遍，我們比許多競爭對手領先數十年。我們已經這樣做了很長一段時間，並且已經開始取得成果，知識產權是 Redwire 智慧財產權。

All right. Thanks, Peter. Thanks, John.

好的。謝謝，彼得。謝謝，約翰。

Thank you.

謝謝。

Andres Sheppard, Cantor Fitzgerald.

安德烈斯·謝潑德，康托·菲茨杰拉德。

Hey, Pete, hey, Jonathan, good morning. Congratulations on the quarter and thanks for taking our questions. (multiple speakers) Yeah, I think a lot of our questions have been asked by now, but maybe just to follow-up on an earlier question on margins. How should we think about gross margins throughout the rest of the year? And I guess how should we think about those EACs as well for 2024? Thank you.

嘿，皮特，嘿，喬納森，早安。恭喜本季度，感謝您提出我們的問題。 （多名發言者）是的，我想我們現在已經提出了很多問題，但也許只是為了跟進之前關於利潤率的問題。我們該如何看待今年剩餘時間的毛利率？我想我們應該如何考慮 2024 年的這些 EAC？謝謝。

So I'll start us off and then I'll let Jonathan jump in. I think we've talked about all the different dynamics that play into gross margins and the strategic decision making that we have to make on a, really a bit by bit basis as to whether say, the absolute value of margin contribution from a particular bid or maybe the strategic value of a large win, whether in that particular case, we're willing to sacrifice maybe an operating margin run rate, if you will.

我想我們已經討論了影響毛利率的所有不同動態以及我們必須做出的戰略決策，真的有點比特基礎上是否說，特定出價的保證金貢獻的絕對值或可能是大贏的戰略價值，無論在在這種特定情況下，我們是否願意犧牲營業利潤運作率，如果你願意的話。

As a result, so that's going to vary over time as those opportunities present themselves. We very deliberately give revenue forecasts for the year and shy away from giving an EBITDA although our -- we are driving, as Jonathan has said, multiple times towards profitability. And that's because that leaves us the opportunity to make good strategic decisions around our operating margins.

因此，隨著這些機會的出現，情況會隨著時間的推移而改變。我們非常謹慎地給出今年的收入預測，並迴避給出 EBITDA，儘管正如喬納森所說，我們正在多次推動獲利。這是因為這讓我們有機會圍繞我們的營運利潤做出良好的策略決策。

So I think our philosophy has exposed itself in terms of our 2023 performance, but we maintain the flexibility to not have that inhibit us from doing something really smart throughout the year. And that's at the strategic level. I think Jonathan can maybe perhaps reaffirm this idea that product mix and many other dynamics such as EACs and such, go into that. The only other thing that I'll add before I hand it over is, we look at -- our goal is towards overall margins, although operating margins are important. Controlling our SG&A, making sure we're efficient there, plays into our overall profitability dynamics as well. Jonathan?

因此，我認為我們的理念已經在 2023 年的業績中體現出來，但我們保持靈活性，不讓這種情況阻礙我們全年做一些真正明智的事情。這是戰略層面的。我認為喬納森也許可以重申這個想法，即產品組合和許多其他動態（例如 EAC 等）都參與其中。在移交之前我要補充的唯一一件事是，我們的目標是整體利潤率，儘管營業利潤率很重要。控制我們的 SG&A，確保我們的效率，也會影響我們的整體獲利能力。喬納森？

Well I want to answer your question directly and use a historic basis because again, number one, we do not give operating margin or gross profit forecast for 2024. That being said, what have we said before? In FY22, we had almost 18% gross margins. In FY23, we had almost 24% gross margins. We have said that we will not increase those gross margins as much in 2024 because of the significant revenue growth that we're seeing, 23% organic revenue growth is something that we believe is conservative, but also very achievable. And as we go through the year with our bids and our win rates, we'll be able to talk about that.

好吧，我想直接回答你的問題並使用歷史基礎，因為首先，我們沒有給出 2024 年的營業利潤率或毛利預測。 2022 財年，我們的毛利率接近 18%。 2023 財年，我們的毛利率接近 24%。我們已經說過，我們不會在 2024 年大幅提高毛利率，因為我們看到了收入的顯著增長，我們認為 23% 的有機收入增長是保守的，但也是非常可以實現的。當我們回顧這一年的出價和中標率時，我們將能夠談論這一點。

As far as the gross margins are concerned. On the EACs, we are driving towards low volatility, right? We don't want to see this level of EAC on an absolute basis, but it's really looked at on an LTM basis, not on a quarterly basis. You could see a movement up, but we are really trying to drive towards what great program management looks like, which is zero EACs. And what like Pete said, we can actually achieve higher through better performance, and some of our contracts allow for that.

就毛利率而言。在東非共同體方面，我們正在努力實現低波動性，對嗎？我們不想看到這種絕對水平的 EAC，但它確實是在 LTM 的基礎上而不是按季度來考察的。你可能會看到一個上升的趨勢，但我們確實在努力推動實現偉大的專案管理，即零 EAC。正如皮特所說，我們實際上可以透過更好的表現來實現更高的目標，而我們的一些合約允許這樣做。

So going from 18% to 24%, which we did last year, we're not going to see that this year. But that doesn't mean, again, getting to the third point, which is really important is that we are driving towards a much higher profitability margins, whether it be EBITDA margins because SG&A now is going below 20% or importantly, because we haven't gotten this question, but we're very focused on it at Redwire, which is cash flow, right? We continue to be able to produce higher returns on invested capital which then yields better cash flow then funds that growth that Pete's talking about, right. Which creates that virtuous cycle. So look more at the bottom line. Obviously, for us it's cash flow. We are focused on EPS too guys. So just for all the analysts out there, we do want to talk to you guys later. Our EPS is eventually -- we're on a path to profitability, which includes improving that too as we go forward. But again, look at the revenue, being conservative. Margins not going to increase as much in '24, but that doesn't mean that we can't achieve better bottom-line profitability margins, especially on the cash flow side.

因此，從我們去年所做的 18% 到 24%，今年我們不會看到這樣的情況。但這並不意味著再次談到第三點，這一點非常重要，那就是我們正在努力實現更高的利潤率，無論是EBITDA 利潤率，因為SG&A 現在低於20%，還是更重要的是，因為我們還沒有沒有得到這個問題，但我們在 Redwire 非常關注它，即現金流，對嗎？我們繼續能夠產生更高的投資資本回報，從而產生更好的現金流，然後為皮特所說的增長提供資金，對吧。這就創造了良性循環。所以更多關注底線。顯然，對我們來說這是現金流。夥計們，我們也關注每股收益。因此，對於所有分析師來說，我們確實想稍後與你們交談。我們的每股盈餘最終將走上獲利之路，其中包括在我們前進的過程中不斷提高獲利能力。但再次，看看收入，保守一點。 24 年的利潤率不會增加那麼多，但這並不意味著我們無法實現更好的利潤率，特別是在現金流方面。

Got it. Thank you. That's a super helpful. Appreciate all of that context. Maybe just to end, can you remind us and maybe investors, what are some of the most important near-term catalyst that we should be highlighting or that we should be monitoring for this year? Thank you.

知道了。謝謝。這是一個超級有幫助的。欣賞所有這些背景。也許在最後，您能否提醒我們以及投資者，我們今年應該強調或應該監控的最重要的近期催化劑是什麼？謝謝。

So I would point everybody -- if I understand correctly, catalysts in terms of executing our plan, the near-term catalysts are executing on our four principles of growth. So what we're going to try to do on a quarter-by-quarter basis is highlight our progress against that, hence the structure of the presentation today. We want to continue to reassure everyone that we have a really strong foundation in our core business offerings. And that's going to continue.

因此，我想向大家指出——如果我理解正確的話，執行我們計劃的催化劑、近期催化劑正在執行我們的四項成長原則。因此，我們將嘗試在每個季度的基礎上強調我們在這方面取得的進展，這就是今天演示的結構。我們希望繼續向大家保證，我們在核心業務方面擁有非常堅實的基礎。這種情況還會持續下去。

There's strong demand for what we call protecting the core. And we need to continue to execute there, and it's actually -- we've achieved really good growth just on our foundational technologies, but we also have a number of initiatives focused on the near term to continue to show that we can scale production. And that will lead to higher revenues over the long term that we can move up the value chain that will also lead to a nice pace of revenue growth. As well as to execute on this venture optionality and unlock what I think is some of the more hidden potential value in the enterprise as well. So those are the things that I would track is essentially our progress.

人們對我們所謂的保護核心有強烈的需求。我們需要繼續在那裡執行，事實上，我們僅在基礎技術上就取得了非常好的成長，但我們也有許多針對近期的舉措，以繼續表明我們可以擴大生產規模。從長遠來看，這將帶來更高的收入，我們可以向價值鏈上游邁進，這也將帶來收入的良好成長。以及執行這種風險選擇並釋放我認為企業中一些更隱藏的潛在價值。所以這些是我要追蹤的事情，本質上是我們的進展。

In terms of near-term in the market, just for the space industry, write large, I think we just have to keep watching the budgets and the continued growth and excitement around our real capabilities out there like participating in SDA programs, being selected as one of just a half a dozen of what I think are some of the best of the best in the industry for Mars exploration, for being looking at who's being selected for future lunar infrastructure programs and whether Redwire's portfolio of programs aligns really well with the strong trends in the industry. I think if you were to line those up quite frankly, we look pretty good. But I would point investors to those dynamics as well, because we're focused on the growth trends in the industry, and that's where we're moving to is where the puck is going.

就市場的近期而言，就航太產業而言，請大寫，我認為我們只需要繼續關注預算以及圍繞我們實際能力的持續增長和興奮，例如參與 SDA 計劃、被選為我認為是火星探索行業中最好的六個項目之一，因為我們正在研究誰被選為未來的月球基礎設施項目，以及Redwire 的項目組合是否與強大的項目相符。我認為如果你坦白地把它們排列起來，我們看起來相當不錯。但我也會向投資人指出這些動態，因為我們專注於產業的成長趨勢，而這就是我們正在走向的方向，也是冰球前進的方向。

Wonderful. That's very helpful. I appreciate it. Congrats again on the quarter and I'll pass it on. Thank you.

精彩的。這非常有幫助。我很感激。再次恭喜本季度，我會將其傳遞下去。謝謝。

Thank you.

謝謝。

Thank you. And we have reached the end of the question-and-answer session. I'll now turn the call back over to Peter Cannito for closing remarks.

謝謝。我們的問答環節已經結束了。現在我將把電話轉回給 Peter Cannito 作結束語。

Yes, some excellent questions. Thank you very much. I appreciate everybody participating in today's call and thank you for taking the time to listen. Go Redwire!

是的，一些很好的問題。非常感謝。我感謝參加今天電話會議的每個人，也感謝你們抽出時間來聆聽。走紅線！

And this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，大家可以掛斷電話了。感謝您的參與。