Release Date: August 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue increased by 12% to $13 million in Q2 2024 compared to $11.6 million in Q2 2023.
- Cost of revenues decreased by 6% from $10.5 million in Q2 2023 to $9.9 million in Q2 2024.
- Secured exclusive-use task orders for multiple aircraft, ensuring guaranteed minimum periods of deployment.
- Acquisition of FMS Aerospace expected to be immediately accretive to earnings and bring critical capabilities in-house.
- International expansion into Europe on track, with four super scoopers expected to be operational by the 2025 fire season.
Negative Points
- Net loss of $10 million in Q2 2024, although an improvement from a $19 million net loss in Q2 2023.
- Adjusted EBITDA decreased to $0.2 million in Q2 2024 from $1 million in Q2 2023.
- Interest expense increased to $5.9 million in Q2 2024 from $5.5 million in Q2 2023.
- Lower flight revenue compared to last year due to fewer flight hours in Q2 2024.
- High selling, general, and administrative expenses of $7.9 million in Q2 2024, although down from $15.2 million in Q2 2023.
Q & A Highlights
Q: Can you talk about Bridger's cash needs and the estimated upgrade costs for the four Spanish Super Scoopers?
A: Bridger's operating cash flow is positive, and the return to service budget for the Spanish scoopers is factored into the deal with Marathon and Avenue. We are on budget and on time to complete the refurbishment.
Q: Will the Ignis contracts be won at the federal and state level or at the local level?
A: Mostly at the state and local level. We plan to land larger federal contracts as we build out the application, starting with state and local firefighting teams.
Q: Do you have any ballpark estimate on what you would charge for a subscription to an organization for the Ignis app?
A: We are currently optimizing the pricing. We are working with a strong pipeline of customers and offering introductory pricing to build out the application and scale the pricing based on features, functionality, and user base.
Q: Can you provide more details on the financial performance and guidance for the year?
A: Revenue for Q2 2024 was $13 million, up 12% from Q2 2023. Cost of revenues decreased by 6%, and SG&A expenses decreased significantly. Net loss for Q2 2024 was $10 million, down from $19 million in Q2 2023. Adjusted EBITDA was $0.2 million. We have increased confidence in our outlook of adjusted EBITDA of $35 million to $51 million on revenue of $70 million to $86 million for 2024.
Q: What is the strategy behind the acquisition of FMS Aerospace?
A: The FMS transaction was an equity-only deal valued at approximately $21 million. FMS generates around $10.5 million in revenue annually with $2.5 million in net income. The acquisition brings critical capabilities in-house, allowing us to grow in mission-critical areas and potentially land larger contracts, including Department of Defense work as early as 2025.
Q: How is Bridger's international expansion progressing?
A: Our partnership with Marathon Asset Management and Avenue Sustainable Solutions Fund led to the purchase of four super scoopers from the Spanish government. Our Spanish subsidiary, Albacete Aero, is overseeing the return to service work, and we are on schedule for all four scoopers to be available by the 2025 fire season.
Q: Can you provide an update on the Ignis Technologies mobile app?
A: The Ignis mobile app for wildland firefighters was launched in June. The free version offers real-time wildfire updates and essential tools, while the paid version provides additional features for fire crews and organizations. We are exploring integration with our aerial surveillance technology to enhance safety and operational effectiveness.
Q: What are the expectations for the third quarter and the rest of the wildfire season?
A: The wildfire season remains very active, continuing the trend of larger wildfires and longer fire seasons. We expect strong demand for our aerial surveillance and suppression services. Year-to-date, we have dropped nearly 5 million gallons of water on wildfires, and we expect to report a strong third quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
