Revenue Growth - Revenues increased by $3.4 million, or 5%, to $67.9 million for the three months ended September 30, 2025, compared to $64.5 million for the same period in 2024[207] - Fire suppression revenue rose by $2.4 million, or 5%, to $52.6 million for the three months ended September 30, 2025, driven by favorable rate increases for Super Scoopers[207] - Aerial surveillance revenue increased by $3.2 million, or 43%, to $10.8 million for the three months ended September 30, 2025, due to increased flight hours for surveillance aircraft[208] - Total revenues increased by $31.3 million, or 38%, to $114.3 million for the nine months ended September 30, 2025, compared to $83.0 million for the same period in 2024[222] - United States revenue increased by $23.1 million, or 30%, to $101.1 million for the nine months ended September 30, 2025, from $78.1 million for the same period in 2024[226] - Aerial surveillance revenue increased by $4.9 million, or 42%, to $16.5 million for the nine months ended September 30, 2025, from $11.6 million for the same period in 2024[223] Income and Profitability - Gross income increased by $5.2 million, or 13%, to $46.8 million for the three months ended September 30, 2025, compared to $41.5 million for the same period in 2024[206] - Operating income rose by $6.2 million, or 19%, to $39.0 million for the three months ended September 30, 2025, from $32.9 million in the same period of 2024[206] - Net income increased by $7.2 million, or 26%, to $34.5 million for the three months ended September 30, 2025, compared to $27.3 million for the same period in 2024[206] - Net income increased by $22.0 million, or 809%, to $19.3 million for the nine months ended September 30, 2025, compared to a net loss of $2.7 million for the same period in 2024[220] - EBITDA for the nine months ended September 30, 2025, was $50.4 million, representing a 72% increase from $29.3 million in the same period of 2024[240] - Adjusted EBITDA for the nine months ended September 30, 2025, was $54.8 million, a 36% increase from $40.2 million in the same period of 2024[240] Costs and Expenses - Total cost of revenues decreased by $1.9 million, or 8%, to $21.1 million for the three months ended September 30, 2025, from $23.0 million in the same period of 2024[206] - Maintenance expenses increased by $14.0 million, or 83%, to $30.8 million for the nine months ended September 30, 2025, from $16.8 million for the same period in 2024[230] - Flight operations expenses increased by $1.0 million, or 4%, to $26.2 million for the nine months ended September 30, 2025, from $25.2 million for the same period in 2024[229] - Selling, general and administrative expense decreased by $5.3 million, or 19%, to $22.8 million for the nine months ended September 30, 2025, from $28.2 million for the same period in 2024[231] - Total cost of revenues increased by $15.0 million, or 36%, to $57.0 million for the nine months ended September 30, 2025, from $42.1 million for the same period in 2024[228] Cash Flow and Liquidity - The company expects existing cash and cash equivalents, along with cash generated from operations, to be sufficient for at least 12 months from the date of the report[190] - As of September 30, 2025, cash and cash equivalents totaled $55.1 million, with an additional $9.3 million in restricted cash[242] - For the nine months ended September 30, 2025, net cash provided by operating activities was $24.8 million, a significant increase from a net cash used of $2.8 million in the same period of 2024[270] - Net cash used in investing activities was $10.5 million for the nine months ended September 30, 2025, compared to net cash provided of $3.1 million in 2024[271] - The Company has met the minimum liquidity requirement of $8 million in unrestricted cash and cash equivalents as of September 30, 2025[253] Debt and Financing - The company anticipates the need to raise additional funds through equity or debt financing to pursue significant acquisition opportunities[245] - The Series 2022 Bonds, totaling $160.0 million, have an annual interest rate of 11.5% and mature on September 1, 2027[247] - Following the refinancing on October 28, 2025, the company has a committed cash flow revolving credit facility of $21.5 million for working capital and general corporate purposes[246] - The Company entered into a Credit Agreement on October 28, 2025, consisting of initial term loans of $210 million and a revolving facility of $21.5 million[260] - The Credit Agreement includes a Total Leverage Ratio requirement not exceeding 7.00x through December 31, 2026, decreasing to 5.50x from March 31, 2028, onwards[263] Operational Risks and Challenges - The company is exposed to risks related to limited suppliers for specialized aircraft and parts, which may lead to increased costs and operational delays[197] - The North American fire season is expected to continue to impact operational results significantly, with approximately 8.8 million acres burned in 2024, 25.7% above the 2001-2020 annual average[196] - Risks include competition, operational disruptions, and challenges in managing growth and expansion[310] Accounting and Compliance - The company recognizes revenue primarily under ASC 606, with most contracts having a single performance obligation satisfied over time[282] - The company evaluates its accounting estimates and assumptions on an ongoing basis, which may lead to significant differences between estimates and actual results[279] - The Company is classified as an "emerging growth company" and has elected to take advantage of the extended transition period for complying with new accounting standards[305] - The company has not established any relationships with special purpose or variable interest entities for off-balance sheet arrangements as of September 30, 2025[276] - The company assesses goodwill for impairment annually, with the last assessment indicating fair value exceeded carrying value[296] Future Outlook and Strategy - Bridger anticipates expansion of operations and increased deployment of its aircraft fleet[310] - Current demand for aerial firefighting services is influenced by the duration and severity of wildfire seasons[310] - The company plans to integrate any future acquisitions successfully to achieve synergies and cost reductions[310] - Bridger's growth strategy includes developing, selling, and expanding its services[310] - Bridger's management acknowledges the uncertainty of actual results differing from forward-looking statements[310]
Bridger Aerospace(BAER) - 2025 Q3 - Quarterly Report