Financial Performance - Revenues for the three months ended September 30, 2024, were $64.5 million, representing a 20% increase from $53.6 million in the same period in 2023[151] - Gross income for the quarter was $41.5 million, a 10% increase from $37.6 million in the prior year[151] - Operating income rose to $32.9 million, a 46% increase compared to $22.6 million in the same quarter last year[151] - Net income for the quarter was $27.3 million, reflecting a 56% increase from $17.5 million in the prior year[151] - Revenues increased by $17.4 million, or 27%, to $83.0 million for the nine months ended September 30, 2024, from $65.6 million for the same period in 2023[164] - EBITDA increased by $16.4 million, or 58%, to $44.8 million for the nine months ended September 30, 2024, compared to $28.4 million for the same period in 2023[177] - For the nine months ended September 30, 2024, the company reported a net loss of $2.7 million, a significant improvement from a net loss of $46.2 million in the same period of 2023, representing a 94% decrease[180] Revenue Breakdown - Fire suppression revenue increased by $4.4 million, or 10%, to $50.6 million for the three months ended September 30, 2024, driven by increased flight hours for Super Scoopers[153] - Aerial surveillance revenue increased by $0.3 million, or 4%, to $7.6 million for the three months ended September 30, 2024, due to higher operating rates of the Pilatus aircraft[153] - Fire suppression revenue increased by $5.0 million, or 9%, to $61.6 million for the nine months ended September 30, 2024, attributed to an earlier start to the wildfire season[164] - Maintenance repair revenue was $5.6 million for the nine months ended September 30, 2024, compared to none for the same period in 2023[165] - Other services revenue increased by $3.4 million, or 654%, to $3.9 million for the nine months ended September 30, 2024, driven by third-party training and flight operations services[165] Cost Management - Total cost of revenues increased to $23.0 million, up 44% from $16.0 million year-over-year, driven by a 48% increase in flight operations costs[151] - Selling, general and administrative expenses decreased significantly by 43% to $8.6 million from $15.1 million, contributing to improved operating income[151] - Total cost of revenues increased by $8.3 million, or 25%, to $42.1 million for the nine months ended September 30, 2024, from $33.7 million for the same period in 2023[167] - Flight operations expenses rose by $5.0 million, or 24%, to $25.2 million for the nine months ended September 30, 2024, compared to $20.3 million in the prior year[168] - Selling, general and administrative expenses decreased by $35.3 million, or 56%, to $28.2 million for the nine months ended September 30, 2024, from $63.5 million in the previous year[170] Cash Flow and Liquidity - The company expects cash generated from operations and existing cash reserves to meet capital expenditure requirements for at least 12 months[134] - As of September 30, 2024, the company had unrestricted cash and investments totaling $33.3 million, with an additional $9.3 million in restricted cash[183] - Net cash provided by operating activities was $0.2 million for the nine months ended September 30, 2024, a significant improvement from a net cash used of $41.5 million in the same period of 2023[195] - Net cash provided by financing activities was $5.4 million for the nine months ended September 30, 2024, compared to a net cash used of $5.1 million in the same period of 2023[197] Liabilities and Compliance - The company has $21.7 million in current liabilities, with $13.6 million classified as accrued expenses and other current liabilities[185] - Long-term liabilities stood at $216.2 million, which includes $203.0 million in total long-term debt, primarily from the Series 2022 Bonds[185] - The company is currently not in compliance with certain financial covenants associated with the Series 2022 Bonds, raising concerns about its ability to continue as a going concern[182] - As of September 30, 2024, the Company is not in compliance with the Debt Service Coverage Ratio (DSCR) covenant and anticipates potential non-compliance in the next 12 months due to seasonal business nature and uncertainty regarding the 2025 wildfire season[188] Strategic Initiatives - The aerial firefighting services are expected to see increased demand due to climate trends and the intensity of the North American fire season[141] - The company has made significant investments in capital expenditures to expand integrated response solutions[134] - The company is engaged in a project to purchase and upgrade Spanish Scoopers, with estimated renovation costs between $8 million to $12 million per aircraft, expected to generate revenue in line with its current fleet[183] - The company is exploring future financing options and anticipates investments in additional aircraft and research and development[221] Internal Controls and Compliance - Bridger identified material weaknesses in internal control over financial reporting, including issues with accounting for complex transactions and IT general controls[223] - The company is focused on remediating these weaknesses by recruiting personnel with GAAP knowledge and implementing new software solutions[223] - Continuous improvement of internal control over financial reporting is a commitment of the company[223] - The remediation efforts will require validation and testing over sustained financial reporting cycles[223]
Bridger Aerospace(BAER) - 2024 Q3 - Quarterly Report