Release Date: May 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Record first quarter revenue of $5.5 million, significantly higher than the $365,000 in the first quarter of 2023, driven by early deployment of aircraft.
- Successful early deployment of multi-mission aircraft and super scoopers, indicating strong operational capabilities and readiness.
- Expansion into new markets, including ongoing projects in Canada and Europe, which diversifies revenue sources and reduces geographical risk.
- Reduction in selling, general, and administrative expenses from $33.2 million in Q1 2023 to $11.6 million in Q1 2024, improving cost efficiency.
- Improved adjusted EBITDA to negative $6.9 million from negative $10.7 million in the first quarter of 2023, showing better financial management.
Negative Points
- Net loss of $20.1 million in Q1 2024, although improved, still indicates significant financial challenges.
- Increase in cost of revenues to $9.2 million in Q1 2024 from $7.2 million in Q1 2023, reflecting higher operational costs.
- Interest expenses increased to $5.9 million in Q1 2024 from $5.7 million in Q1 2023, adding to the financial burden.
- Seasonal nature of business leads to significant fluctuations in quarterly revenue and earnings, impacting predictability and financial stability.
- Despite improvements, the company still reported negative adjusted EBITDA, indicating ongoing challenges in achieving profitability.
Q & A Highlights
Q: Can you provide an overview of Bridger Aerospace's financial performance in the first quarter of 2024?
A: Eric Gerratt, CFO - In the first quarter of 2024, Bridger Aerospace reported a record revenue of $5.5 million, a significant increase from $365,000 in the same quarter last year. This increase was primarily due to early deployment of super scooper and surveillance aircraft in Texas and Oklahoma. However, the company also reported a net loss of $20.1 million, which is an improvement from a net loss of $44.7 million in the first quarter of 2023.
Q: What were the main operational highlights for Bridger Aerospace in this quarter?
A: Tim Sheehy, CEO and Founder - This quarter, we experienced the earliest seasonal deployment in company history due to dry and arid weather in Oklahoma and Texas, leading to significant early wildfire activity. We deployed our multi-mission aircraft and super scoopers earlier than ever, which contributed to our record first quarter revenue.
Q: How is Bridger Aerospace planning to handle the anticipated active wildfire season in 2024?
A: Tim Sheehy, CEO and Founder - We are prepared for a very active 2024 wildfire season, driven by drier and warmer conditions. Our strategy includes expanding our aerial firefighting services to new mission-critical areas and geographies, including ongoing expansions in Canada and plans to move into Europe.
Q: What are the financial expectations for Bridger Aerospace for the rest of 2024?
A: Eric Gerratt, CFO - For 2024, Bridger Aerospace projects to generate adjusted EBITDA of $35 million to $51 million on revenue of $70 million to $86 million. This guidance reflects the impact of recent cost structure adjustments and excludes any impact from the Spanish super scoopers currently undergoing maintenance.
Q: Can you discuss any significant changes in the cost structure in the first quarter of 2024?
A: Eric Gerratt, CFO - The cost of revenues increased by 27% to $9.2 million due to higher flight operation expenses and additional super scooper aircraft service. However, selling, general, and administrative expenses decreased significantly to $11.6 million from $33.2 million in the first quarter of 2023, mainly due to lower noncash stock-based compensation expense and professional services fees.
Q: What strategic moves did Bridger Aerospace make regarding its fleet and technology in this quarter?
A: Tim Sheehy, CEO and Founder - We continue to invest in our fleet and technology. Notably, we completed the purchase of four super scoopers from the Spanish government and are on schedule with the maintenance work. Additionally, we are enhancing our mobile and web platforms to improve situational awareness and data management for wildfire fighting.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
