Bridger Aerospace(BAER) - 2024 Q1 - Quarterly Results

Bridger Aerospace Announces First Quarter 2024 Results Highlights and CEO Commentary Bridger Aerospace achieved record first-quarter revenue in Q1 2024 through early aircraft deployment, completed a $9.8 million equity financing, and improved Adjusted EBITDA by 35% year-over-year, setting the stage for significant growth - Earliest seasonal deployment of Super Scooper and surveillance aircraft in company history, leading to highest first quarter revenue and positioning the company for another record year[2] - Completed a $9.8 million equity financing in April 2024 with participation and support from existing investors as well as members of the management team and Board of Directors[2] | Metric | Q1 2024 (Millions USD) | Q1 2023 (Millions USD) | | :----- | :------ | :------ | | Adjusted EBITDA | ($6.9) | ($10.7) | - CEO Tim Sheehy commented that with the recent capital infusion, the earliest fleet deployment, and a more efficient operational structure, the company is well positioned to achieve record growth in 2024, with two Super Scoopers deployed to Texas and Oklahoma for over six weeks[2] First Quarter 2024 Financial Performance Consolidated Statements of Operations Bridger Aerospace significantly increased Q1 2024 revenue to $5.5 million from $0.365 million in Q1 2023, driven by early aircraft deployment, and reduced its net loss to $20.1 million from $44.7 million year-over-year, primarily due to lower SG&A expenses | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Change (YoY) | | :----- | :--------------------- | :--------------------- | :----------- | | Revenues | $5,507 | $365 | +1408.8% | | Cost of revenues | $9,206 | $7,248 | +27.0% | | Gross loss | ($3,699) | ($6,883) | -46.3% | | Selling, general and administrative expense | $11,610 | $33,229 | -65.0% | | Operating loss | ($15,309) | ($40,112) | -61.8% | | Interest expense | ($5,923) | ($5,665) | +4.5% | | Other income | $1,159 | $1,092 | +6.1% | | Net loss | ($20,087) | ($44,685) | -55.1% | - The increase in revenue was attributed to the earliest deployment of Super Scooper and surveillance aircraft to Texas and Oklahoma, and revenue from return-to-service work performed on the Spanish Super Scoopers[3] - The decrease in SG&A expenses was primarily attributable to lower non-cash stock-based compensation expense and reduced professional service fees in Q1 2024 compared to Q1 2023, which included fees incurred in conjunction with the January 2023 business combination[5] Consolidated Balance Sheets As of March 31, 2024, Bridger Aerospace's total assets decreased to $252.4 million from $273.5 million at year-end 2023, mainly due to reduced cash, while total liabilities also decreased and the stockholders' deficit widened | Metric | As of March 31, 2024 (in thousands) | As of December 31, 2023 (in thousands) | Change | | :----- | :---------------------------------- | :------------------------------------- | :----- | | Cash and cash equivalents | $6,776 | $22,956 | ($16,180) | | Restricted cash | $9,289 | $13,981 | ($4,692) | | Total current assets | $25,207 | $45,195 | ($19,988) | | Total assets | $252,431 | $273,470 | ($21,039) | | Total current liabilities | $20,068 | $25,398 | ($5,330) | | Total liabilities | $240,070 | $246,539 | ($6,469) | | Total stockholders' deficit | ($348,668) | ($327,909) | ($20,759) | - The Company's cash and restricted cash balance was $26.5 million as of April 30, 2024[6] Consolidated Statements of Cash Flows In Q1 2024, Bridger Aerospace significantly improved net cash used in operating activities to $19.8 million from $36.7 million in Q1 2023, with investing activities using $0.2 million and financing activities using $0.9 million, resulting in a net $20.9 million decrease in cash and equivalents | Cash Flow Activity | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :----------------- | :--------------------- | :--------------------- | | Net cash used in operating activities | ($19,762) | ($36,653) | | Net cash (used in) provided by investing activities | ($214) | $12,959 | | Net cash used in financing activities | ($896) | ($4,077) | | Net change in cash, cash equivalents and restricted cash | ($20,872) | ($27,771) | | Cash, cash equivalents and restricted cash – end of period | $16,065 | $14,689 | - Adjustments to reconcile net loss to net cash used in operating activities included $5.873 million in stock-based compensation and $1.290 million in depreciation and amortization for Q1 2024[18] Business Outlook and Strategic Initiatives 2024 Guidance Bridger Aerospace reiterated its 2024 guidance, projecting Adjusted EBITDA between $35 million and $51 million on revenues of $70 million to $86 million, consistent with prior statements and excluding Spanish Super Scooper contributions | Metric | 2024 Guidance (Millions USD) | | :----- | :------------ | | Adjusted EBITDA | $35 to $51 | | Revenue | $70 to $86 | - Adjusted EBITDA margins are projected to benefit from the recent reductions to the Company's largely fixed cost structure[7] - International expansion into Spain, which commenced in the fourth quarter of 2023, is on schedule and is expected to provide meaningful operational and revenue growth for future years[7] Operational Strategy and Seasonality The company's operational strategy addresses business seasonality, with positive Adjusted EBITDA typically generated in Q2 and Q3 during peak wildfire season, while Q1 and Q4 usually incur net losses and negative EBITDA due to fleet maintenance and minimal revenue - Bridger typically generates positive Adjusted EBITDA in the second and third quarters each year, during the bulk of the wildfire season[8] - The first and fourth quarters of each year are budgeted to be in a net loss and negative EBITDA position, with the first quarter typically the most working capital constrained due to fleet maintenance in the winter months coupled with minimal revenue[6][8] Non-GAAP Financial Measures EBITDA and Adjusted EBITDA Definitions Bridger Aerospace utilizes EBITDA and Adjusted EBITDA as key non-GAAP profitability measures, with EBITDA excluding interest, taxes, depreciation, and amortization, and Adjusted EBITDA further adjusting for non-cash items to provide a clearer view of operational trends - EBITDA is a non-GAAP profitability measure that represents net income or loss for the period before the impact of interest expense, income tax expense (benefit), and depreciation and amortization, aiming to eliminate potential differences in performance caused by variations in capital structures and asset costs[25] - Adjusted EBITDA further adjusts EBITDA by excluding items such as non-cash stock-based compensation, business development and integration expenses, offering costs, gains on disposals of fixed assets, and non-cash fair value adjustments for earnout consideration and warrants[26] - These non-GAAP measures are used to illustrate underlying trends, establish budgets, and evaluate performance, but should not be considered in isolation or as substitutes for GAAP results[21][22] EBITDA and Adjusted EBITDA Reconciliation For Q1 2024, Bridger Aerospace reported an Adjusted EBITDA of negative ($6.9 million), a significant improvement from negative ($10.7 million) in Q1 2023, primarily driven by a reduced net loss and lower stock-based compensation expenses | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :----- | :--------------------- | :--------------------- | | Net loss | ($20,087) | ($44,685) | | Income tax expense | $14 | - | | Depreciation and amortization | $1,290 | $1,751 | | Interest expense | $5,923 | $5,665 | | EBITDA | ($12,860) | ($37,269) | | Stock-based compensation | $5,871 | $25,597 | | Business development & integration expenses | $312 | $519 | | Offering costs | - | $2,083 | | Gain on disposal | - | ($2) | | Change in fair value of earnout consideration | $15 | - | | Change in fair value of Warrants | ($266) | ($1,599) | | Adjusted EBITDA | ($6,928) | ($10,671) | - The improvement in Adjusted EBITDA was primarily due to a lower net loss and a substantial decrease in stock-based compensation expense from $25.597 million in Q1 2023 to $5.871 million in Q1 2024[6][28] Additional Company Information Conference Call Information Bridger Aerospace held an investor conference call on May 13, 2024, to discuss Q1 results, financial position, and business outlook, with replay information available via phone and on the company's investor relations website - An investor conference call was held on Monday, May 13, 2024, at 5:00 p.m. Eastern Time (3:00 p.m. Mountain Time) to discuss these results, its current financial position and business outlook[9] - An audio replay will be available through May 20, 2024, by calling 844-512-2921 or 412-317-6671 (passcode 11155860) and will also be accessible at https://ir.bridgeraerospace.com[9](index=9&type=chunk) About Bridger Aerospace Bridger Aerospace Group Holdings, Inc., based in Belgrade, Montana, is one of the largest aerial firefighting companies in the U.S., providing wildfire management services to federal, state, and international government agencies - Bridger Aerospace Group Holdings, Inc. is one of the nation's largest aerial firefighting companies, based in Belgrade, Montana[10] - The company provides aerial firefighting and wildfire management services to federal and state government agencies, including the United States Forest Service, across the nation, as well as internationally[10] Forward-Looking Statements The report includes forward-looking statements on operational expansion, future financial performance, and demand for services, which are based on current expectations and assumptions but are subject to risks and uncertainties, and should not be unduly relied upon - Forward-looking statements include anticipated expansion of operations, increased aircraft fleet deployment, business and growth plans, future financial performance, demand for aerial firefighting services, cost reduction actions, future financings, and anticipated investments[11][12] - These statements are based on various assumptions and estimates and are subject to a number of risks and uncertainties, including those discussed in the sections entitled 'Risk Factors' and 'Cautionary Statement Regarding Forward-Looking Statements' in Bridger's Annual Report on Form 10-K[12] - Bridger specifically disclaims any obligation to update these forward-looking statements, and undue reliance should not be placed upon them[12]