BAER - Earnings call transcript Q3 2024 | Bridger Aerospace Group Holdings, Inc. Common Stock

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Operator

Good day, everyone, and welcome to today's Bridger Aerospace Third Quarter 2024 Conference Call. [Operator Instructions]. Please note, today's call will be recorded, and I will be standing by should you need any assistance.

It is now my pleasure to turn the conference over to CFO of Bridger Aerospace, Eric Gerratt. Please go ahead.

Eric Gerratt

you us thank and afternoon, for today. joining Good

this Chief Vice Executive me Founders. of on Sam is call the John Markets, Senior Joining Officer, afternoon Davis; and Capital Finance President and

differ those implied differ certain please for that describe from are or assumptions, statements from with could the are Securities These not Exchange cause discussed was are but Private the statements Factors And materially such Litigation facts results statements. and that contained filings and those this uncertainties Commission Act expressed that historical by defined conference include, as the to, statements various forward-looking results materially not results Reform including XXXX. company's based U.S. risks in Actual financial in expectations forward-looking Securities on do to call in may limited XXXX. note expressed of regarding

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

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

call adjusted EBITDA substitute today, in Exhibit financial GAAP. this to in under earnings and earnings our supplement for our useful which We is calculation EBITDA be found is refer of the reported release, believe our adjusted can on results A a as reported available release evaluating Throughout adjusted not financial to the and to afternoon's non-GAAP a EBITDA. results reconciliation we our measure and definition, The statements of website.

to turn to like I'd Sam. that, call the over With

Sam Davis

Eric. you, Thank

on who just We our veterans a begin, Veterans Bridger critical you including in at for those want of all play all operations. to recognize I service, your Day. role our I veterans thank Before today

net announce with quarter income include reaching nearly our extremely results, wildfire million, season the $XX $XX We million EBITDA million. and revenue the adjusted of third 'XX to of which of are $XX.X proud height

our Our Bridger's dedicated ready throughout operations through in team year, the facilitated latest as of season our for our was February, current Texas high ensuring of wildfire longest as history. and and early entire fleet deployment deployment in the levels fleet

of seasons trend the when attack we air financial the previous is of longer with X intense X Overall, generate more and and season, XXXX year. Bridger current particularly XXXX more can the fleet consider to wildfire typical representative and a wildfire results its scoops aircraft. compared of

the spent a which While to days U.S. we to at days XX XX start saw preparedness of a X peak Level total late as October. season, the X, in of the refer including PL we

to signifies PL potential the areas is multiple occurring with reminder, Interagency major the level, agency fire highest fire resources. are Fire all that a X and geographic Center's As National across it incidents exhaust

XXXX, compares over In X additional XX at X comparison, X. PL of November XX National. days year. X acres we year, in PL PL XX there X. was last X.X to last days XXXX X, days The acres burned Through were PL Burn of X saw with million actually and just and time X PL at of an This million only last

X.X total acres X-year million is the comparison, burned. For average

believe East whether were flight Bridger was duration impact Coast average and called. work hours days XXXX even -- above can gets slightly Bridger. for average factors year-end and the this While above the only we wildfire an accompanying of associated activity Overall,

and X our increased budgeting contracting air to attack lags strategically firefighting X and As utilization. driving of against delays, of use Super states task of day resources X for backdrop scrambled aircraft government multi-mission this X summer minimum secured agency exclusive aircraft, secure we orders the Scoopers our

wildfire critical ensuring focusing commitments, the contracts, focus and We're price guarantee smooth on associated dedicated to the securing hours. response happens on serve and of efforts goal number are months our Much also with as of these use cycles overall continue peak exclusive in fleet with to multi-year maximizing hours. and to We maximizing remains will this out the which government ] wildfire seasonality winter of budgeting groundwork revenue days underway. planning flight [ and X

season the a XXX wildfire Multi-mission XXXX piece guaranteed the grow the As extended X task or winds XXX ], days our orders for Polaris were days MMA, Aircraft to PC-XX down, [ piece. for

have activity, for additional activity We estimate for added X standby, throughout missions the threat Texas of demand nonfire-related continued growing late the also currently fire to station in season. during Scoopers work. some year positioned under the We on high

While is of season. utilization it this in as boost to serves revenue shoulder revenue, some profitable in-season than the

to FMS. Turning

acquisition June on a the we closed XX. As reminder,

and separate this firefighting hope these has us safety. of already created base And ground leading-edge aircraft So enhance seasonal exciting and also performance, technologies Bridger modifications solidify FMS's to engineering. a revenue. to for engineering gear it opportunities more defense and build $X.X customer advantage as of to nature contributed the our aircraft to FMS to and sensor continues areas to mission-critical aerospace quarter and Bridger we our manufacturing part reliability as Bridger million strong systems and support and competitive business. FMS's was offset well help diversify to approximately first opportunities projects will incorporate capabilities modifications to add modification as Adding to revenue a enable Bridger such as pipeline in growth

on Technologies. update quick Ignis A

Several launched year incident field. team app. and support Our the to software the mobile this its in are currently piloting subsidiary firefighters management counties, cruise form

to with a pricing and features. for organization expected size on As model wildfire based flexible we move forward, to these season are many the XXXX subscription-based of transition organizations

Management real-time [ ground. ] a both Marathon to focus and app, with situational seamless Scoopers linking of the development data to from Sustainable operational promises last A and fall. levels multi-mission, sensor and from which the government with major in to with plan flow new Spanish contracts air Solutions remain We unlock Avenue's our the Asset Ignis effectiveness awareness, capability LP creating safety. aviation imagery through Super Europe supporting enhancing port Fund, into Bridger's partnership track is This on stand completed

the We managed recognized process all Arrow, also progress service to as XXXX Spanish in quarter of season. for and million $X.X scoopers during line into schedule the to We them hitting are with return we wildfire to subsidiary, to well. the revenue that the service by return our X this be remain our on approximately pleased available of related work cost with

the will operating the determine all into business. point, remain while best in sourcing of we how of these At assets high-margin are services contracts X that We high these to demand. their for aircraft process in bring

quarter, parts ahead fourth use of dropped into to Bridger have season the look Year-to-date, we we of see of October of million in the certain water. wildfire intensity into continued as just aircraft shy November country. of and we extended gallons nationally the As the X

cash we record capital positive generation the after free flow expect a and As including expenditures, debt service. of year, result, a maintenance

now turn me Let our will it about performance back the who Eric, quarter. talk financial for to

Eric Gerratt

Sam. Thanks,

for related third as from quarter well XX% $XX.X as FMS. well million of results increased as Spanish return subsidiary $X.X revenue to the Aero approximately million million service buyer, of XXXX third of as higher third Revenue of the [ the to from at agreement XXXX, in acquisition to in flight benefited $XX.X the XXXX. partnership quarter Super performed of work quarter revenue revenue Looking the approximately ] million with of approximately Scoopers our part June LLC company's Albacete on MAB $X.X Spanish as Funding from

year. reflected this expenses, of third increased The and quarter operation flight maintenance the $XX as was of were is in compared in higher quarter the increased last in well some to of XXXX, hours FMS Spanish expenses expenses, expenses of year quarter travel up $X.X is in the comprised the in of of the XXXX XXXX. expenses the as was quarter $XX.X revenue utilization from the $XX which Cost service and million and addition increase $XX.X to the flight to revenues cost primarily million compares expenses depreciation, in for flight to the inflationary revenues associated quarter third the largely Cost XXXX resulting of field. third the maintenance $X.X to of million. with third scoopers of operation quarter third pass-through maintenance work of Also tied in for churn. return million of million million third This of due and

XXXX the the the noncash of was stock-based quarter to the and the administrative expenses the end third XXXX of in third were XXXX general $X.X of quarter third partially third of increase in compensation value quarter in expense rent quarter the XXXX. was of of Selling, outstanding in to compared year. lower attributable The fair third quarter to decrease last million third quarter compared The also to decline of million to a XXXX. $XX.X primarily due as of compared

Interest the third $X the XXXX. year. in of the in last XXXX third of million quarter this to income million third $X.XX million quarter quarter year reported of the expense compared $X.X Bridger an for quarter third [ to ] also in was $X compared

third loss For driven reported diluted A earlier of in in of million of fleet XXXX. was or million $XX.X distributed release the $X.XX in third quarter income utilization quarter income XXXX. of Adjusted $XX.X strong per to to today. quarter net included share earnings third was per income reconciliation or net in A the or Exhibit diluted income million adjusted in quarter primarily million of is of XXXX. EBITDA EBITDA $XX $XX.X we of share XXXX, net $X.XX to the increase compared The third the by of compared net our

the net adjusted in season. first the company seasonality, quarters a typically our and in generated primarily EBITDA with Due quarter fourth majority loss third wildfire to EBITDA each coinciding the the our and generates with negative the U.S. of

also Looking of first XXXX. for the maintenance $XX.X fair XXXX, million of $XX.X of X of first The was declined compensation the $XX.X to revenues was partially months X of was only XXXX compared Cost million. $XX.X of months of in compared months revenue $XX.X $XX.X $XX.X operation stock-based of of at of flight XXXX, million the million, X noncash revenues months $XX.X flight expenses million of operation comprised months attributable of first expenses to months $XX.X our first for an RSUs million and expenses XXXX. the decrease compared warrants. expenses to XXXX million comprised included expenses was which value million. of million outstanding for to for in even X SG&A first expense of million, of $XX Cost million and $XX maintenance X million X the results $XX.X to the of in first

Net million months X same was months loss of to X loss for the compared X XXXX. $XX.X the last of XXXX. X net the to million months first the first months of of $XX.X in the Bridger in million $X.X compared first year. X compared million million first XXXX expense was million the months year other XXXX the in X Interest million in of $XX for first of for $XX.X the first income $X.X of reported of months first for XXXX months this EBITDA to million Adjusted $XX.X X last also was compared to year. a of period $X.X

ended as expected in Turning the $XX cash coming XXXX, the of We of sheet. and are trade million and increase total million. the months. third the cash to $XX.X of further XX, quarter balance unbilled restricted with receivables Outstanding cash September to balance over

guidance. John to XXXX With the now I'd over to that, to discuss our like turn call

Unknown Executive

Thank you, Eric.

As to of operating and to refine in in into Bridger U.S. the the multiple come its record November. a even the position in and is supported dry results end, led to season the Western quarter by guidance. continued weather aircraft bulk that has wildfire has third October an

revenue XX% in between increasing increase our to to our guidance We are in and revenue an expect of now guidance. $XX to $XX $XX increase our This We over million. XX% from XXXX of million. range reported a XXXX is revenue million initial be an and million of $XX

service which [ our subsidiary note work important of performed by as XXXX Albacete that XXXX Spanish to X the of on well of million acquisition also $X $X our return million included Super June neither scoopers range. to anticipated to relates Spanish pass-through Aero, initial to as is was in the revenue guidance FMS ] approximately It Aerospace,

third its the the year typically and wildfire largely the of of seasonality EBITDA majority Given Bridger in fixed during of revenue, bulk cost adjusted generates season. the the quarter each company's

$XX EBITDA adjusted last by guidance range million initial million, XX% XXXX As over to a to compared provided result, first to to of $XX grow a to $XX is range of the million expected million adjusted November. and $XX company's EBITDA

from exit benefits kept programs of the realized assets aviation certain fully subscription support fire a targeted for not reductions in leasing and that year have to activity. This of that the We to structure costs maintenance estimated we the level ago. our includes place cost high we

Collectively, reaching EBITDA. also us the these expected of XXXX adjusted initial We our high prevent from experienced some inflationary are for end pressures. guidance factors to range

we focus also to benefit nonfire seasonality, addition, opportunities on pivoted In EBITDA growth expected revenue to smooth to our are operations. which from of some boosting help XXXX

latest Based Free defined sensor first aircraft capital expenditures. positive This high and report expect $XX to aviation increased utilization, on history customer as contracts Bridger opportunities, satisfaction less and range for on debt work work the time is brand increased free awareness. and $X flow of cash we flow EBITDA, guidance, intends find this in adjusted to capabilities of portion opportunity and less to provide put a customer this service Bridger's download million capital cash maintenance for in million. and multiyear will a that includes benefit opportunities. and to investments enhancements additional low-cost, new revenue expanded modifications for new to

I comments. that, Sam would the for to call like turn back final With to

Sam Davis

year on conditions lines of the some to fellow protect serve numerous our XXX lives, at worked see preventing threat on the fires mission work is large for to lightning becoming of loss wildfires. facing protect and core harshest on This Bridger early readily stories others property of and habitat the supporting in provided the from loss long from when the and makeup. support At of John. you, by the firefighters unshakable hard employees rising Bridger the Americans heart remains Being able the results focus days Thank of success nights of suppression to threatened preventing front to Bridger's incidents. states gathered and to while XX from structures major strikes fires detection, small Aerospace the wildfires.

commendable What highly Bridger contested motivated onslaught makes Regardless as former the employees, public its executing of effort a the was and company's to the while to property. politically customers of torrent a political to the speculative as record our even a endured boating mission efforts were partners subject a affiliation, company Bridger more reputation on save we designed for laudable tarnish ran in of and sabotage for deliver team CEO attacks race. office lives to and critical results of

and at life its where Bridger's crucial to integrity we mission employees, to our customers a for let And exceeding protect Ultimately, will efforts from to has confidently the investors answer has guided continue Today, protecting the continue habitat. speak finally into we by negative our be to the out we expectations in of stepped of and our that its period those around through cycle, strength and to wildfires team -- lives, property themselves. voices of and to mischaracterize it attempt defame carry Bridger's leadership ready or able Board fight stride country. call

the Governance and U.S. both former Nominating comprehensive Tim is the Senate, and commenced the our and Admiral officially the Committee decided Rare that has election Board CEO, and been will has elected a Sheehy, Howard candidates. Founder internal Corporate committee. to external Wyman search Now lead search CEO and process of consider our

in I'm time Board's confident in is of a and shareholders. part I'm process, expected the While completed that committed be XXXX. fully no of search the the line will interest to ultimate specified for to Bridger's decision being completion, be the best

to the thank the continued firefighting support in steadfast avoid brother, to substantial future. XX such any nation's in service I the us investments as piece the to the and to forward XXXX. look conflicts bonding our as Sheehy, interest, resigned honored the support team, in with a of and continuing critical pursue him company I Matt proud company. incredibly is business well tireless in allegations in of have talented XX firefighting plans lead of Bridger network our Board, execute aerial and to aircraft his XX an months to and of years. potential is deployed out am his further Additionally, of over past has of from we Tim's

that, like With call up I to the open questions. for would

Operator

Instructions]. Austin with [Operator question Moeller Canaccord. a from take I'll

Austin Moeller

Congrats on everyone. the quarter,

question or detail first was the more like little compensation, guidance? a think here. fuel costs? bit in EBITDA in my about Just aftermarket into pilot the the should we go quarter And Can that that? inflation you maintenance How about

Sam Davis

Thanks I'll pressures? inflationary turn to wouldn't question. for some of to mind one the Eric, speaking the this over if you

Eric Gerratt

Yes. Sure, Austin.

few. So a yes, mentioned you

we of in terms pressure of in companies costs efforts of and inventory of our try as to to make possible the terms side. done and side all crews fire on parts as those saw well to and we incur in during some support impacts the at addition especially and mechanics in We're some opportunities with our inflationary to of going wages, that labor piece also to in pressures our pressures over travel the travel, parts as kind costs have that some most looking we in definitely things puzzle efficient small and inflationary use. season replacement reduce benefits, on travel to we various of like the there. those things and maintenance, of So kind and saw manage as terms differently -- salaries, country of try some

We a leverage we things some housing looked some also crew have that. done like at things some have where in areas

not So and things hotels always nature. that we're in of

a been decent there's those pressures managing job done definitely there. of we've but So it,

Austin Moeller

issue? that on funds? do the the the on bipartisan you firefighting forest and Interior committees service the of view impact That's helpful. Presumably, Department How administration's or this federal the oversee new

Sam Davis

Yes. one. that take I'll Yes.

we strategy is is this on more speak, rising time, there's a it's East we've issue we the what terms talking everybody which legislative effect will to national Coast and different right, with days getting because core affect and a a of now, solve done the our forefront of guaranteed is we what because all contracts what and that speak as Jersey. to on Even year-over-year. slide, New right fires are threat. to York exclusive lot Bridger always done, do with on wildfires very the at to these in bipartisan of a trying do be threat the and has and they as of administration New everybody work continue one you're of some increase outside and So the the this committees in to we

So problem. may this potential on committees is Bridger to work, especially those a that the rising the meeting becoming to with the continues chanting some solutions will but we off-season There be folks we being changes do forefront of that live, and in have.

Austin Moeller

more, may. expect we be required in getting revenue just And I Should Great. a as the structure, improved other work? services volumes might government one see if in now costs some operating cost that reduction off-season and you you up to

Sam Davis

we of beyond. John, I'll been year guidance one this and the to over for at Yes. this, on the who's working turn look end especially as

Unknown Executive

to 'XX XXXX in effect that's XXXX, I and expect see XXXX. into the we lower Austin, P&L OpEx also would a flight that and rationalization the that of levels great winter. rationalization, really Yes, starting the throughout impact with in company the put of the go down question. going place cost half in back to the cost into seeing Absolutely, comment into we're that

travel over mentioned some have Eric So professional personnel vendors, rationalization cost services. we policy and

will reduce the throughout we We significantly things OpEx we that winter. have some believe

the helping assets seasonality. aviation revenue nonfire side, QX, with has company fire year. contracts on QX, service winning deliver its and with throughout contracts FMS to this and absolutely work the been successful engineering Also, has continues reduce to been On a

core significant business So QX in the expect this year. we revenue from

quarters, in and change levels fire the significant season very outside a with QX. revenue So QX of

Operator

there back I'd And appear further are time. Davis any no it to questions like remarks. Sam it that for to or now closing at does this turn additional

Sam Davis

has for progress Relations We you. annual forward out updating results to when our report please anyone final we again Thanks questions, Thank any our conference you reach call today. directly. And joining to our look Investor our in if follow-up March. on

Operator

today's conclude for your does you program. Thank This participation.

and time, You may have disconnect any wonderful evening. a at

Bridger Aerospace Group Holdings, Inc. Common Stock (BAER) 11 Nov 242024 Q3 Earnings call transcript