Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to Bridger Aerospace Fourth Quarter and Year-end 2022 Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Eric Gerratt, I apologize, Chief Financial Officer. Thank you. Mr. begin. may you Gerratt,

Eric Gerratt

thank joining and today. you afternoon, us for Good

Director, are call Officer, and Joining and the afternoon Chief Rudisill. Chief Officer Sheehy; me on Tim this Executive Director, Founder Investment McAndrew and

call defined please XXXX. note Act facts statements this describe Before we Private that statements Securities that not as begin, do forward-looking of the contained certain in conference in are Reform historical Litigation

implied are from not differ uncertainties, from to, Commission, those expressed regarding financial statements include, but forward-looking or with expectations and such actual including those discussed are filings based materially the Exchange may the results -- differ materially Securities limited company's assumptions, that for and Since in regarding expectations excluding Factors those on XXXX. risks results to expressed could by statements. results various cause

that that only or Management Listeners reflect not place cannot control statements, assessments to of reliance many as management's will today. events should change. predict which impact results. forward-looking anticipate and on developments subsequent undue cause views our future ultimately factors We

undertake no obligation make any to or statements. we other or revise forward-looking statements any forward-looking update to However,

For presentation. by with those along today's webcast, you can joining follow

to over substitute reported reported GAAP. results that, is to our in our the adjusted can presentation our I'd a listening release, The earnings call the you under call phone, those access our statements adjusted EBITDA. website. to and today, we supplement be the this adjusted earnings financial on can is We presentation to which in under of believe non-GAAP and results and useful For for at measure found available website definition, release EBITDA to www.bridgeraerospace.com turn With Investor today's financial Throughout by tab. EBITDA of our Relations a on Tim. afternoon's Exhibit and evaluating like refer reconciliation our not will as calculation A

Timothy Sheehy

as today on symbol Thank earnings on the welcome. Global you, the Bridger Aerospace began everyone trading XX. joining on to Happy call our BAER a and Eric. January public everyone, first NASDAQ be under Good company. Market afternoon,

discuss Eric brief in public and earnings our detail of more like provide opportunity the a call Bridger moment. will this in our market While Aerospace Since XXXX first as to a overview company, is results I'd a it.

to Bridger, and a for safety SEAL same look together overseas on tasks subsequently I that in founding was to public in was Navy to support capability bring and leading force task coordinating [indiscernible] the how on operations Seeing Prior ground battlefield. I Officer discharged. BAER air teams the my air-to-ground U.S. close effective intelligence the aerial was

a founded one wildfires. surplus We Bridger we had developed map in a XXXX government system sensor to with and plan basic

one an Over the our organically first companies. the aerial is from several Blackstone firefighting we substantially. grow of when Today, investment more Bridger grew until largest XXXX nation's years, we took business to

We over it rivers, have by fires aircraft, scooping X dropping fleet on water lakes, and a Scoopers, including fight nearby or of oceans XX reservoirs fire. which CL-XXXEAF the from directly Super

most the aircraft is efficient world. family is in the and The CL-XXX aircraft it of As safest, only effective today, of platform firefighting the in the firefighting most aerial purpose-built world.

We transfer in enable to also surveillance aircraft have a that of what mapping fires time. do are fleet with immediate awareness real fire of data doing

is outstripping seasons This aviation EU the to has services rapidly early tanker with XX to XX tanker wildfires. more mid-April is typically and requirements standards U.S. as aerial around worldwide. efficiently and to by in supply standards, We Urban are for reduced Interface fire caused time, same firefighting the the XXXXs need damage ago grow well And line instituted are of because to The supply continues capabilities. over positioned address demand the longer to aircraft growing becoming At Century for combat modernization growing firefighting decades in economic air environmental today. aerial firefighting large Wildland bring and from meant mid-November. XXst that aerial aggressive, significantly

Related the directly to contracts with business, our are U.S. our

well expansion. between of many we our as X to created incremental such state protection attractive and Interior Forest years. drive Service margins This and operating provisions variability. positioned Most are last unit as and XX oftentimes airports governments and Department contracts well [indiscernible] cover very commodity that aircraft fuel from with a fees, of economics, fleet providing the as costs include has

well Scooper and expansion. in as As EBITDA million can Each $X support our $XX to adding public preparation we annually. for adjusted generate between to was infrastructure personnel year of have reported million fleet as XXXX debut previously, a our

out XXXX, up XXXX, which operation, XXXX have majority the February was delivered will fire most we X% from in season. of the the Looking to for of X recent

result, year. in the we a are positioned to for place growth we this As infrastructure in significant well leverage XXXX put

in that, to With call. over We performance later this McAndrew turn talk more expect financial discuss to margins the lead and improvements I who which in to will revenue, adjusted XXXX. to in it Eric, detail EBITDA, our will significant about will

Eric Gerratt

of levels. $X.X XXXX decreased Fire high a incident $XX.X to $X.X XX% up in Aerial from XXXX. million, season number million million revenue million due compared as compared XXXX revenue Surveillance XXXX, driven suppression service for XX% the for million a full XXXX $XX.X revenue to in of to Standby Scooper XXXX. $XX.X revenue grew percentage in X was Revenue Tim. in total fires Thanks, aircraft in by XX% to XX% was in declined with additional XXXX. to from

comprised expenses contribute of not meaningfully did of revenues is of flight delivered the related $XX.X revenue Scooper year of to which the million of aircraft, the added Our of cost expenses expected million maintenance XXXX, the delivery included additional season. which compares later increase during $XX.X million and fire and $XX.X and to anticipation expenses of were maintenance and This expenses. primarily to $XX.X $XX.X to in increased The cost during expected operation of million. revenues of XX% costs in $XX.X million Super than XXXX ultimately therefore operations of million XXXX in flight was

to XXXX million and becoming for The by with services in were compared to preparation our million general connection and was public million was $X.X of XXXX company. expense the million Selling, professional expenses XXXX. million and $XX.X driven $XX.X expenses personnel combination business fees partially $XX higher a of for administrative in in $XX.X Interest XXXX. increase in compared

$X.X net $XX.X the XXXX, XXXX. company a compared reported million of For of in loss a net to million loss

EBITDA million financing development transactions Adjusted transaction debt, expenses of on the as disposal business related of extinguishment business combination. compensation, $X.X relating XXXX million to EBITDA depreciation losses amortization, legal as fees and costs as XXXX. and well items to such and discretionary on bonus Adjusted payments compared stock-based $X.X in expense, to excludes interest non-recurring in onetime was gain/loss assets,

to annual of XXXX. million fourth quarter, of to maintenance increase in period to $X.X was is Looking of deployment the early the in for to fourth the same $X.X where higher The our in our revenue fleet, million of which aircraft schedule compared the XXXX quarter was typically due activities much we compared quarter the XXXX. quarter fourth

professional business period. growth personnel $X.X in XXXX. partially and Selling, $X.X increase This fourth the third-party million was general was in company. Cost fourth $X.X quarter million in the higher to revenues in expenses $X.X the the XXXX. fourth quarter were to the compared $X.X for public of support of quarter of and preparation a for of million higher expenses and the XXXX by prior Interest compared million quarter million administrative of to the million expenses the XXXX of to was quarter of and expense $X fourth driven becoming compared fourth

loss XXXX. negative the quarter negative million For the quarter Adjusted $XX.X EBITDA of was fourth compared $XX XXXX. $X.X compared of fourth net to of was of to million XXXX, loss million the quarter in $X.X million in net fourth a

cash sheet. million. Turning with ended to balance restricted the marketable of and XXXX $XX.X We securities cash,

Our as $XXX.X the of our who discuss December Chief XXXX. million Investment XX, guidance I'll With for call Officer, to Rudisill, will that, turn outstanding over was our XXXX. McAndrew now debt

McAndrew Rudisill

projected XX combination. $XX Eric. you, fleet with XXXX. connection projected with to consistent over million is Thank in Super growth in revenue $XX business of projections current revenue to generate This Scoopers our of aircraft, million X is including the Bridger's public

in However, of are it we seventh Scooper XXXX. to have which and Scooper #X Scooper fleet #X cost much cost any to in improve latest in projected include as previously the over a equivalent. from to embedded With EBITDA already additions, referred potential margins our does XX% support Adjusted Scoopers, X% not XXXX the X structure. to

to As impact the excluding any million a projected million potential additions. in XXXX, adjusted $XX fleet to EBITDA range from is result, again, of $XX

M&A opportunities growing continue to further expand see XXXX. a We our during of to fleet through number

explore these and or opportunities plans. one We this and M&A growth year, we'll to of more anticipate these continue on our acting acquisitions

expansion, We if potential revenue adjusted guidance transaction EBITDA and from fleet any, our to expect upon add to future closings.

guidance, season mentioned, from mid-April Tim we to While the specific quarterly won't as fire typically provide mid-November. runs

a revenue. are negative offsetting fourth most we in quarters ready quarters. the significant and amount This As our to year means that, quarters the with of profitable minimal be consist typically of second and first EBITDA for will first training and a each we third off-season recertification result, and questions. maintenance, quarters, activities expect operator, report fourth the With while

Timothy Sheehy

contracts, as through process. questions last no around from shareholder firefighting our given aviation and received is gone unique contracts Okay. the different have the other realms. a and investors Many of We'll frequent over revolved that of couple industry than a we've With are course questions aerial the contracts answer aerospace quite months of questions. generally the several have we've relatively we and

and depending revenue rates structured quantity XX There the the paid sometimes these are are by firefighting standby contracts years, daily contracts charge indefinite are into U.S. primarily within hourly and the rendered, paradigm are code. type multiyear and by indefinite multiyear, Acquisition X as services the classified split paid We flight as and Federal our the way The hour under of long years. revenue, day. delivery, on services so

upon exist technical have contracts have based do ratio. a life XX-year contract compliance. renewal to we in over These Bridger's annual cycle, criteria horizon far reaward XXX% Thus and X- performance a and

contracts between state to of side and DOI heavily the being is majority federal Additionally, between weighted revenue federal and with our the our the mix U.S.

roughly Service XX% our rent Forest at of revenue.

XXXX have a related to guidance I'll comment/questions Why from or of previously changed $XX reported more couple was we the has guidance. what million? provided in EBITDA answer

currently. for reduced Bridger the it actually not is stands business base as Guidance

In fact, it aircraft seventh I to last Scooper M&A, appropriate bit as year. to or as business acquisitions felt our what through opposed if previously updated was our to which today fleet base the potential assuming for not aircraft guidance is our exists higher we in current had than base estimates equivalent. in as additions We Bridger a more line, on referred

add will the there As of expansion we further close. expand opportunities year have the these said, future are number fleet fleet impact throughout of guidance we once to M&A, through our a our to transactions and

related The key of M&A focus reinvested be primarily our can differentiation ground. for metrics support cash and for our to will technical in the and related firefighting mapping, how line technical fireflies as for innovation free wildfire for the sharing to active business transactions as and generation of specific data on aerial the that incidents us and business business. to imaging to growth well fire bottom accretive technologies to fire the our to flow on relate

further number call further the M&A other our and of in as company of latest and completion you our Scoopers to diversification. Thank well today's public for in growing of no questions geographic for a for and opportunities support the your fleet becoming delivery through as participating With expand a queue.

you to are our look Have great progress shareholder federal XXXX growing when our drive against day. well on quarter see first supporting results the forward May. in in fiscal wildfires. significant a growth clients battle returns and We while positioned we updating and government report state our to We year

Operator

participation. this Ladies teleconference. your and you conclude does gentlemen, for Thank today's

and You time, have wonderful may disconnect your day. lines a at this

Eric Gerratt	CFO
Timothy Sheehy	Founder, CEO & Director
McAndrew Rudisill	CIO & Director

Bridger Aerospace Group Holdings, Inc. Common Stock (BAER) 20 Mar 232022 Q4 Earnings call transcript