Highlights:
- Record 2023 revenue of nearly
$67 million despite slowest fire season in 20 years - Record contract awards in 2023 including a 5-year
$60 million exclusive use fire surveillance and technology contract in support of theDepartment of Interior - First international deployment leads to the most territory covered in the history of the Company
Joint Venture Partnership completed purchase of four Super Scoopers from the Spanish Government- Established Spanish subsidiary, Albacete Aero, to oversee the return to service of the four Spanish Scoopers and acquired a hangar in
Spain - Recent software and surveillance contracts ensure we will have a unique and differentiated offering in the marketplace
- Earliest seasonal deployment of Super Scooper and surveillance aircraft to
Texas andOklahoma sets the company up for another record year of growth - Adjusted EBITDA poised to grow over 80% in 2024 to between
$35 million to$51 million , consistent with our previously issued 2024 guidance
“Bridger accomplished a great deal in the fourth quarter including the contracted deployment of our Multi-Misson Aircraft and the completion of the purchase of four Super Scoopers from the Government of
Full Year 2023 Results
Revenue for 2023 grew 44% to
Cost of revenues increased 22% to
Gross margin increased to 38% in 2023 up from 27% in 2022 driven primarily by record utilization of the Company’s growing Super Scooper fleet in 2023.
Selling, general and administrative expenses were
Interest expense for 2023 was
For 2023, Bridger reported a net loss of
Definitions and reconciliations of net loss to EBITDA and Adjusted EBITDA, are attached as Exhibit A to this release.
Fourth Quarter 2023 Results
Revenue was
Cost of revenues in the fourth quarter of 2023 was
Selling, general and administrative expenses were
Interest expense for the fourth quarter of 2023 was
For the fourth quarter of 2023, Bridger reported a net loss of
Definitions and reconciliations of net loss to EBITDA and Adjusted EBITDA, are attached as Exhibit A to this release.
Business Outlook
Looking at Bridger’s standalone operations for the full year 2024 including our six Super Scoopers, Adjusted EBITDA is anticipated to range from
Given the Company’s largely fixed cost structure and seasonality of our business, Bridger typically generates positive Adjusted EBITDA in the second and third quarters each year, during the bulk of the wildfire season and negative Adjusted EBITDA in the first and fourth quarters. The first quarter of every year is typically the most working capital constrained due to fleet maintenance in the winter months coupled with low revenue. The first quarter of 2024 seasonality is expected to be slightly offset by earlier than normal flight activity in
Conference Call
About
Based in
Investor Contacts
201-220-2678
aziegler@darrowir.com
Forward Looking Statements
Certain statements included in this press release are not historical facts but are forward-looking statements, including for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “project,” “forecast,” “predict,” “poised,” “positioned,” “potential,” “seem,” “seek,” “future,” “outlook,” “target,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, (1) anticipated expansion of Bridger’s operations and increased deployment of Bridger’s aircraft fleet, including references to Bridger’s acquisition of and/or right to use the four Super Scoopers from the Spanish government, including the expected closing timings thereof, the anticipated benefits therefrom, and the ultimate structure of such acquisitions and/or right to use arrangements; (2) Bridger’s business and growth plans and future financial performance; (3) current and future demand for aerial firefighting services, including the duration or severity of any domestic or international wildfire seasons; (4) the magnitude, timing, and benefits from any cost reduction actions: (5) Bridger’s exploration of, need for, or completion of any future financings, and (6) anticipated investments in additional aircraft, capital resources, and research and development and the effect of these investments. These statements are based on various assumptions and estimates, whether or not identified in this press release, and on the current expectations of Bridger’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Bridger. These forward-looking statements are subject to a number of risks and uncertainties, including: the ultimate outcome of Bridger’s acquisition of the Super Scoopers to be sold by the Spanish government; Bridger’s ability to identify and effectively implement any current or future anticipated cost reductions, including any resulting impacts to Bridger’s business and operations therefrom; the duration or severity of any domestic or international wildfire seasons; changes in domestic and foreign business, market, financial, political and legal conditions; Bridger’s failure to realize the anticipated benefits of any acquisitions; Bridger’s successful integration of the aircraft (including achievement of synergies and cost reductions); Bridger’s ability to successfully and timely develop, sell and expand its services, and otherwise implement its growth strategy; risks relating to Bridger’s operations and business, including information technology and cybersecurity risks, loss of requisite licenses, flight safety risks, loss of key customers and deterioration in relationships between Bridger and its employees; risks related to increased competition; risks relating to potential disruption of current plans, operations and infrastructure of Bridger, including as a result of the consummation of any acquisition; risks that Bridger is unable to secure or protect its intellectual property; risks that Bridger experiences difficulties managing its growth and expanding operations; Bridger’s ability to compete with existing or new companies that could cause downward pressure on prices, fewer customer orders, reduced margins, the inability to take advantage of new business opportunities, and the loss of market share; the ability to successfully select, execute or integrate future acquisitions into Bridger’s business, which could result in material adverse effects to operations and financial conditions; and those factors discussed in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” included in Bridger’s Annual Report on Form 10-K filed with the
BRIDGER AEROSPACE GROUP HOLDINGS, INC. | |||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
(in thousands, except per share data) | |||||||||||||
(unaudited) | |||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Revenues | $ | 1,108 | $ | 1,112 | $ | 66,708 | $ | 46,388 | |||||
Cost of revenues: | |||||||||||||
Flight operations | 4,706 | 2,127 | 24,412 | 18,762 | |||||||||
Maintenance | 3,667 | 3,191 | 16,928 | 15,124 | |||||||||
Total cost of revenues | 8,373 | 5,318 | 41,340 | 33,886 | |||||||||
Gross (loss) income | (7,265 | ) | (4,206 | ) | 25,368 | 12,502 | |||||||
Selling, general and administrative expense | 18,620 | 6,493 | 82,863 | 35,128 | |||||||||
Operating loss | (25,885 | ) | (10,699 | ) | (57,495 | ) | (22,626 | ) | |||||
Interest expense | (6,042 | ) | (7,027 | ) | (23,218 | ) | (20,020 | ) | |||||
Other income | 800 | 660 | 3,053 | 521 | |||||||||
Loss before income taxes | (31,127 | ) | (17,066 | ) | (77,660 | ) | (42,125 | ) | |||||
Income tax (expense) benefit | (12 | ) | - | 302 | - | ||||||||
Net loss | $ | (31,139 | ) | $ | (17,066 | ) | $ | (77,358 | ) | $ | (42,125 | ) | |
Series A Preferred Stock – adjustment for deemed dividend upon Closing | $ | - | $ | - | $ | (48,300 | ) | $ | - | ||||
Series A Preferred Stock – adjustment to eliminate 50% multiplier | $ | - | $ | - | $ | 156,363 | $ | - | |||||
Series A Preferred Stock – adjustment to maximum redemptions value | $ | (6,053 | ) | $ | - | $ | (22,181 | ) | $ | - | |||
Legacy Bridger Series A Preferred Shares – adjustment for redemption, extinguishment and accrued interest | $ | - | $ | - | $ | - | $ | (85,663 | ) | ||||
Legacy | $ | - | $ | (5,805 | ) | $ | - | $ | (202,689 | ) | |||
Net (loss) income attributable to Common stockholders - basic and diluted | $ | (37,192 | ) | $ | (22,871 | ) | $ | 8,524 | $ | (330,477 | ) | ||
Net (loss) income per Common Stock - basic | $ | (0.80 | ) | $ | (0.57 | ) | $ | 0.19 | $ | (8.20 | ) | ||
Net (loss) income per Common Stock - diluted | $ | (0.80 | ) | $ | (0.57 | ) | $ | 0.11 | $ | (8.20 | ) | ||
Weighted average Common Stock outstanding – basic | 46,256 | 40,301 | 45,269 | 40,287 | |||||||||
Weighted average Common Stock outstanding – diluted | 46,256 | 40,301 | 78,908 | 40,287 | |||||||||
BRIDGER AEROSPACE GROUP HOLDINGS, INC. | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(in thousands) | ||||||
(Unaudited) | ||||||
As of | As of | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 22,956 | $ | 30,163 | ||
Restricted cash | 13,981 | 12,297 | ||||
Investments in marketable securities | 1,009 | 54,980 | ||||
Accounts and note receivable | 4,113 | 29 | ||||
Aircraft support parts | 488 | 1,761 | ||||
Prepaid expenses and other current assets | 2,648 | 1,835 | ||||
Deferred offering costs | - | 5,800 | ||||
Total current assets | 45,195 | 106,865 | ||||
Property, plant and equipment, net | 196,611 | 192,092 | ||||
Intangible assets, net | 1,730 | 208 | ||||
13,163 | 2,458 | |||||
Other noncurrent assets | 16,771 | 4,356 | ||||
Total assets | $ | 273,470 | $ | 305,979 | ||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIT | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 3,978 | $ | 3,170 | ||
Accrued expenses and other current liabilities | 17,168 | 18,670 | ||||
Operating right-of-use current liability | 2,153 | 21 | ||||
Current portion of long-term debt, net of debt issuance costs | 2,099 | 2,446 | ||||
Total current liabilities | 25,398 | 24,307 | ||||
Long-term accrued expenses and other noncurrent liabilities | 10,777 | 46 | ||||
Operating right-of-use noncurrent liability | 5,779 | 755 | ||||
Long-term debt, net of debt issuance costs | 204,585 | 205,471 | ||||
Total liabilities | $ | 246,539 | $ | 230,579 | ||
COMMITMENTS AND CONTINGENCIES | ||||||
MEZZANINE EQUITY | ||||||
Series A Preferred Stock | 354,840 | - | ||||
Legacy | - | 489,022 | ||||
STOCKHOLDERS’ DEFICIT | ||||||
Common Stock | 5 | 4 | ||||
Additional paid-in capital | 84,771 | - | ||||
Accumulated deficit | (413,672 | ) | (415,304 | ) | ||
Accumulated other comprehensive income | 987 | 1,678 | ||||
Total stockholders’ deficit | (327,909 | ) | (413,622 | ) | ||
Total liabilities, mezzanine equity, and stockholders’ deficit | $ | 273,470 | $ | 305,979 | ||
BRIDGER AEROSPACE GROUP HOLDINGS, INC. | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in thousands) | |||||||
(Unaudited) | |||||||
For the Year Ended | |||||||
2023 | 2022 | ||||||
Cash Flows from Operating Activities: | |||||||
Net loss | $ | (77,358 | ) | $ | (42,125 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities, net of acquisitions: | |||||||
Depreciation and amortization | 11,089 | 9,091 | |||||
Stock based compensation expense | 47,796 | 9 | |||||
Impairment of long-lived assets | 2,529 | - | |||||
Amortization of debt issuance costs | 968 | 601 | |||||
Loss on disposal of fixed assets | 1,183 | 1,770 | |||||
Change in fair value of the Warrants | (267 | ) | - | ||||
Change in fair value of freestanding derivative | 51 | 3 | |||||
Change in fair value of earnout consideration | 167 | - | |||||
Realized gain on investments in marketable securities | (794 | ) | - | ||||
Change in fair value of embedded derivative | (155 | ) | 1,039 | ||||
Deferred tax benefit | (342 | ) | - | ||||
Loss on extinguishment of debt | - | 845 | |||||
Change in fair value of Legacy Bridger Series A Preferred Shares | - | 3,919 | |||||
Interest accrued on Legacy Bridger Series B Preferred Shares | - | 3,587 | |||||
Changes in operating assets and liabilities, net: | |||||||
Accounts receivable | (1,085 | ) | 6 | ||||
Aircraft support parts | 1,273 | 183 | |||||
Prepaid expense and other current and noncurrent assets | (2,381 | ) | (372 | ) | |||
Accounts payable, accrued expenses and other liabilities | (9,482 | ) | 11,526 | ||||
Net cash used in operating activities | (26,808 | ) | (9,918 | ) | |||
Cash Flows from Investing Activities: | |||||||
Proceeds from sales and maturities of marketable securities | 55,406 | 5,500 | |||||
Purchases of marketable securities | (999 | ) | (60,207 | ) | |||
Investment in equity securities | (4,000 | ) | - | ||||
Purchases of property, plant and equipment | (20,738 | ) | (25,582 | ) | |||
Sale of property, plant and equipment | 817 | 286 | |||||
Expenditures for capitalized software | (328 | ) | - | ||||
Issuance of note receivable | (3,000 | ) | - | ||||
Investments in construction in progress – buildings | - | (9,810 | ) | ||||
Net cash provided by (used in) investing activities | 27,158 | (89,813 | ) | ||||
Cash Flows from Financing Activities: | |||||||
Costs incurred related to the Closing | (6,794 | ) | - | ||||
Proceeds from the Closing | 3,194 | - | |||||
Repayments on debt | (2,201 | ) | (2,036 | ) | |||
Payment of finance lease liability | (30 | ) | (27 | ) | |||
Payment to Legacy Bridger Series A Preferred Shares members | - | (236,250 | ) | ||||
Payment to Legacy Bridger Series B Preferred Shares members | - | (69,999 | ) | ||||
Borrowings from Legacy | - | 288,517 | |||||
Borrowings from 2022 Taxable Industrial Revenue Bond | - | 160,000 | |||||
Extinguishment of 2021 Taxable Industrial Revenue Bond | - | (7,550 | ) | ||||
Borrowings from vehicle loans | - | 202 | |||||
Payment of debt issuance costs | - | (4,418 | ) | ||||
Payment of offering costs | - | (3,509 | ) | ||||
Net cash (used in) provided by financing activities | (5,831 | ) | 124,930 | ||||
Effects of exchange rate changes | (42 | ) | - | ||||
Net change in cash, cash equivalents and restricted cash | (5,523 | ) | 25,199 | ||||
Cash, cash equivalents and restricted cash – beginning of the period | 42,460 | 17,261 | |||||
Cash, cash equivalents and restricted cash – end of the period | $ | 36,937 | $ | 42,460 | |||
Less: Restricted cash – end of the period | 13,981 | 12,297 | |||||
Cash and cash equivalents – end of the period | $ | 22,956 | $ | 30,163 | |||
EXHIBIT A
Non-GAAP Results and Reconciliations
Although Bridger believes that net income or loss, as determined in accordance with
Each of the profitability measures described below are not recognized under GAAP and do not purport to be an alternative to net income or loss determined in accordance with GAAP as a measure of our performance. Such measures have limitations as analytical tools and you should not consider any of such measures in isolation or as substitutes for our results as reported under GAAP. EBITDA and Adjusted EBITDA exclude items that can have a significant effect on our profit or loss and should, therefore, be used only in conjunction with our GAAP net income or loss for the period. Bridger’s management compensates for the limitations of using non-GAAP financial measures by using them to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. Because not all companies use identical calculations, these measures may not be comparable to other similarly titled measures of other companies.
Bridger does not provide a reconciliation of forward-looking measures where Bridger believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and is unable to reasonably predict certain items contained in the GAAP measures without unreasonable efforts, such as acquisition costs, integration costs and loss on the disposal or obsolescence of aging aircraft. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of Bridger’s control or cannot be reasonably predicted. For the same reasons, Bridger is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
EBITDA and Adjusted EBITDA
EBITDA is a non-GAAP profitability measure that represents net income or loss for the period before the impact of the interest expense, income tax expense (benefit) and depreciation and amortization of property, plant and equipment and intangible assets. EBITDA eliminates potential differences in performance caused by variations in capital structures (affecting financing expenses), the cost and age of tangible assets (affecting relative depreciation expense) and the extent to which intangible assets are identifiable (affecting relative amortization expense).
Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before certain items that are considered to hinder comparison of the performance of our businesses on a period-over-period basis or with other businesses. During the periods presented, we exclude from Adjusted EBITDA certain costs that are required to be expensed in accordance with GAAP, including stock-based compensation, business development and integration expenses, offering costs, loss on disposal of fixed assets and non-cash impairment charges, non-cash adjustments to the fair value of earnout consideration, non-cash adjustments to the fair value of Warrants issued in connection with the Reverse Recapitalization, loss on extinguishment of debt, and discretionary bonuses to employees and executives. Our management believes that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future.
The following table reconciles net loss, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA for the three months and years ended
(in thousands) | For the three months ended | For the year ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net loss | $ | (31,139 | ) | $ | (17,066 | ) | $ | (77,358 | ) | $ | (42,125 | ) | |||
Income tax expense (benefit) | 12 | - | (302 | ) | - | ||||||||||
Depreciation and amortization | 855 | 529 | 11,089 | 9,091 | |||||||||||
Interest expense | 6,042 | 7,027 | 23,218 | 20,020 | |||||||||||
EBITDA | (24,230 | ) | (9,510 | ) | (43,353 | ) | (13,014 | ) | |||||||
Stock-based compensation(1) | 8,048 | 2 | 47,796 | 9 | |||||||||||
Business development & integration expenses(2) | 4,132 | 369 | 5,687 | 954 | |||||||||||
Offering costs(3) | 1,844 | 413 | 5,773 | 2,962 | |||||||||||
Loss on disposals and non-cash impairment charges(4) | 1,817 | 182 | 2,869 | 1,770 | |||||||||||
Change in fair value of earnout consideration(5) | 167 | - | 167 | - | |||||||||||
Change in fair value of Warrants(6) | (2,132 | ) | - | (266 | ) | - | |||||||||
Loss on extinguishment of debt(7) | - | - | - | 845 | |||||||||||
Discretionary bonuses to employees and executives(8) | - | - | - | 10,137 | |||||||||||
Adjusted EBITDA | $ | (10,354 | ) | $ | (8,544 | ) | $ | 18,673 | $ | 3,663 | |||||
- Represents stock-based compensation expense associated with employee and non-employee equity awards.
- Represents expenses related to potential acquisition targets and additional business lines.
- Represents one-time costs primarily for professional service fees related to the preparation for potential offerings that have been expensed during the period.
- Represents loss on the disposal and non-cash impairment charges on aircraft associated with our plan to phase out our use of certain aging aircraft platforms in our aerial surveillance operations.
- Represents the fair value adjustment for earnout consideration issued in connection with the Ignis Acquisition.
- Represents the fair value adjustment for Warrants issued in connection with the Reverse Recapitalization.
- Represents loss on extinguishment of debt related to the Series 2021 Bond.
- Represents one-time discretionary bonuses to certain employees and executives of Bridger in connection with the issuance of the Legacy
Bridger Series C Preferred Shares, the issuance of the Series 2022 Bonds, execution of the Transaction Agreements and the initial filing of the proxy/statement/prospectus prepared in connection with the Reverse Recapitalization.
Source:
2024 GlobeNewswire, Inc., source