Bridger Aerospace(BAER) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $13 million, up 12% from $11.6 million in Q2 2023, benefiting from $1.8 million related to return-to-service work on Spanish Super Scoopers [14][16] - Cost of revenues decreased to $9.9 million in Q2 2024, down 6% from $10.5 million in Q2 2023, primarily due to lower flight operation expenses [14][15] - Net loss for Q2 2024 was $10 million, an improvement from a net loss of $19 million in Q2 2023, driven by reduced SG&A and cost of revenues [16][17] - Adjusted EBITDA for Q2 2024 was $0.2 million compared to $1 million in Q2 2023 [16][17] Business Line Data and Key Metrics Changes - The company secured exclusive-use task orders for four out of six Air Attack aircraft and two Multi-Mission aircraft, marking a strategic shift towards more stable revenue streams [8][9] - The deployment of the Pilatus PC-12 Multi-Mission Aircraft has been extended into the fall, achieving over 200 days of deployment this year [9] Market Data and Key Metrics Changes - The wildfire season remains active, with 80% of total revenue typically generated in Q3, reflecting the seasonal nature of the business [13] - Year-to-date, the company has dropped nearly 5 million gallons of water on wildfires, indicating strong operational activity [13][22] Company Strategy and Development Direction - The acquisition of FMS Aerospace for approximately $21 million is aimed at enhancing in-house capabilities for airframe modification and integration, expected to be accretive to earnings [10][11] - The company is expanding its aerial firefighting services into new mission-critical areas and geographies, including plans to expand into Europe [11][12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting guidance for 2024, with expected adjusted EBITDA of $35 million to $51 million on revenue of $70 million to $86 million [19][20] - The company anticipates continued long-term demand for aerial surveillance and suppression services due to increasing wildfire activity [13][22] Other Important Information - The company ended Q2 2024 with total cash and restricted cash of $22.5 million, with expectations for increased cash flow from fire season activities [19] - The Ignis Technologies mobile app for wildland firefighters was launched, providing real-time updates and advanced mapping capabilities [12] Q&A Session Summary Question: Can you talk about Bridger's cash needs and estimated upgrade costs for the Spanish Super Scoopers? - Management indicated that operating cash flow is positive and sufficient to sustain operations until the next fire season, with refurbishment costs factored into the deal with partners [25][26] Question: Will the Ignis contracts be won at the federal or state and local level? - Management clarified that contracts will primarily be targeted at the state and local level, with plans to pursue larger federal contracts as the application develops [27][28] Question: Do you have an estimate on subscription pricing for the Ignis app? - Management stated that pricing is currently being optimized and that introductory pricing will be offered to build a strong customer base [30][31]