Bridger Aerospace Announces Record Third Quarter 2024 Results; Raises Revenue Guidance and Narrows Adjusted EBITDA Estimates
Bridger Aerospace (NASDAQ: BAER) reported record Q3 2024 results with revenue of $64.5 million, net income of $27.3 million, and Adjusted EBITDA of $47.0 million, representing year-over-year growth of 20%, 56%, and 21% respectively. The company raised its 2024 revenue guidance to $90-95 million, a 35% increase, and narrowed Adjusted EBITDA guidance to $35-40 million. Strong performance was driven by high Super Scooper fleet utilization, with operations extending into November. The company expects positive free cash flow of $5-10 million for 2024.
Bridger Aerospace (NASDAQ: BAER) ha riportato risultati record per il terzo trimestre del 2024, con ricavi di 64,5 milioni di dollari, utile netto di 27,3 milioni di dollari e EBITDA rettificato di 47,0 milioni di dollari, che rappresentano una crescita anno su anno rispettivamente del 20%, 56% e 21%. L'azienda ha rivisto al rialzo le previsioni sui ricavi per il 2024 a 90-95 milioni di dollari, un incremento del 35%, e ha ristretto le previsioni per l'EBITDA rettificato a 35-40 milioni di dollari. Le forti performance sono state sostenute da un'elevata utilizzazione della flotta Super Scooper, con operazioni che si estendono fino a novembre. L'azienda si aspetta un flusso di cassa libero positivo di 5-10 milioni di dollari per il 2024.
Bridger Aerospace (NASDAQ: BAER) reportó resultados récord para el tercer trimestre de 2024 con ingresos de 64,5 millones de dólares, un ingreso neto de 27,3 millones de dólares, y un EBITDA ajustado de 47,0 millones de dólares, lo que representa un crecimiento interanual del 20%, 56% y 21% respectivamente. La compañía aumentó su pronóstico de ingresos para 2024 a 90-95 millones de dólares, un incremento del 35%, y acotó su pronóstico de EBITDA ajustado a 35-40 millones de dólares. El sólido rendimiento estuvo impulsado por una alta utilización de la flota Super Scooper, con operaciones que se extienden hasta noviembre. Se espera un flujo de caja libre positivo de 5-10 millones de dólares para 2024.
브리저 항공 우주 (NASDAQ: BAER)가 2024년 3분기 기록적인 실적을 보고했습니다. 매출이 6450만 달러, 순이익이 2730만 달러, 조정 EBITDA가 4700만 달러로, 전년 대비 각각 20%, 56%, 21% 성장했습니다. 회사는 2024년 매출 예측을 9000-9500만 달러로 상향 조정했으며, 이는 35% 증가한 수치입니다. 조정 EBITDA의 가이던스는 3500-4000만 달러로 좁혔습니다. 강력한 성장은 높은 슈퍼 스쿠퍼 플릿 활용에 힘입은 것으로, 11월까지 운영이 진행됩니다. 회사는 2024년 동안 500만-1000만 달러의 긍정적인 자유 현금 흐름을 기대하고 있습니다.
Bridger Aerospace (NASDAQ: BAER) a annoncé des résultats record pour le troisième trimestre 2024, avec un chiffre d'affaires de 64,5 millions de dollars, un bénéfice net de 27,3 millions de dollars, et un EBITDA ajusté de 47,0 millions de dollars, représentant une croissance d'une année sur l'autre de 20%, 56% et 21% respectivement. L'entreprise a relevé sa prévision de chiffre d'affaires pour 2024 à 90-95 millions de dollars, soit une augmentation de 35%, et a affiné la prévision de l'EBITDA ajusté à 35-40 millions de dollars. Cette performance solide a été soutenue par une forte utilisation de la flotte Super Scooper, avec des opérations qui se poursuivent jusqu'en novembre. L'entreprise s'attend à un flux de trésorerie libre positif de 5 à 10 millions de dollars pour 2024.
Bridger Aerospace (NASDAQ: BAER) hat Rekordergebnisse für das dritte Quartal 2024 gemeldet, mit Einnahmen von 64,5 Millionen Dollar, einem Nettogewinn von 27,3 Millionen Dollar und einem bereinigten EBITDA von 47,0 Millionen Dollar, was ein jahreszeitliches Wachstum von 20%, 56% und 21% darstellt. Das Unternehmen hat seine Umsatzprognose für 2024 auf 90-95 Millionen Dollar angehoben, was einem Anstieg von 35% entspricht, und die Prognose für das bereinigte EBITDA auf 35-40 Millionen Dollar präzisiert. Die starke Leistung wurde durch eine hohe Auslastung der Super Scooper-Flotte unterstützt, wobei die Operationen bis in den November hinein reichen. Das Unternehmen erwartet einen positiven freien Cashflow von 5-10 Millionen Dollar für 2024.
- Record Q3 revenue of $64.5M, up 20% YoY
- Net income increased 56% YoY to $27.3M
- Adjusted EBITDA grew 21% to $47.0M
- Cash position improved to $42.6M from $22.5M in Q2
- Revenue guidance raised by 35% to $90-95M
- Expected positive free cash flow of $5-10M for 2024
- Experiencing inflationary pressures affecting costs
- Cost of revenues increased to $23.0M from $16.0M YoY
- Yet to realize all benefits from targeted cost reductions
Insights
The Q3 2024 results demonstrate exceptional performance with
The company's improved operational efficiency is evident in the reduced SG&A expenses, dropping from
The record utilization of Bridger's Super Scooper fleet reflects the increasing demand for aerial firefighting services amid persistent wildfire conditions. The strategic expansion into Spain and acquisition of FMS Aerospace diversifies revenue streams and reduces geographical concentration risk.
The extended operational season into November and high fleet utilization rates suggest a structural shift in wildfire patterns, potentially leading to longer revenue-generating periods. The
BELGRADE, Mont., Nov. 11, 2024 (GLOBE NEWSWIRE) -- Bridger Aerospace Group Holdings, Inc. (“Bridger”, “the Company” or “Bridger Aerospace”), (NASDAQ: BAER, BAERW), one of the nation’s largest aerial firefighting companies, today reported record results for the third quarter ended September 30, 2024, raising its 2024 revenue guidance and narrowing its Adjusted EBITDA guidance.
Highlights:
- Achieved record quarterly revenue, net income, and Adjusted EBITDA of
$64.5 million ,$27.3 million and$47.0 million , respectively, in the third quarter of 2024, representing growth over the third quarter of 2023 of approximately20% ,56% and21% , respectively. - The Company expects to generate positive free cash flow for 2024
- Bridger’s Super Scooper fleet experienced its highest level of utilization during the third quarter with multiple Super Scoopers flying into November
- Recently acquired FMS Aerospace (“FMS”) contributed
$1.6 million of revenue in the third quarter and is pursuing new business opportunities expected to benefit 2025 and 2026 results - International expansion into Spain on track with the first two Super Scoopers nearing completion of their return-to-service work
- Raising 2024 revenue guidance by over
35% to$90 million to$95 million and narrowing 2024 adjusted EBITDA guidance to a range of$35 million to$40 million - The Company anticipates 2024 adjusted EBITDA to grow by over
85% from 2023 adjusted EBITDA
Third Quarter 2024 Results
“Bridger’s Super Scooper fleet was in strong demand during the 2024 wildfire season, driving record revenue, net income and adjusted EBITDA in the third quarter,” commented Sam Davis, Bridger’s Chief Executive Officer. “This strong performance of our six Super Scoopers and six Air Attack aircraft during the 2024 wildfire season validates our business model and, with some of our aircraft still deployed, positions us for a record year, including an approximate doubling of Adjusted EBITDA from 2023 and the generation of positive free cash flow after maintenance capital expenditures and debt service.”
Revenue for the third quarter of 2024 increased approximately
Cost of revenues was
Selling, general and administrative expenses (“SG&A”) were
Interest expense for the third quarter of 2024 was
Bridger reported net income of
Definitions and reconciliations of net loss to EBITDA and Adjusted EBITDA, are attached as Exhibit A to this release.
At September 30, 2024, cash, cash equivalents and restricted cash rose to
Year to Date Results
Revenue for the first nine months of 2024 was
Cost of revenues was
SG&A expenses were
Interest expense for the first nine months of 2024 increased to
Bridger reported a net loss of
Business Outlook
The Company achieved record results in the third quarter of 2024 and continued dry weather in the western U.S. kept multiple aircraft operating into November. As a result, we are increasing our 2024 revenue guidance to a range of
Given the Company’s largely fixed cost structure and seasonality of its revenue, Bridger typically generates the majority of its Adjusted EBITDA in the third quarter each year, during the bulk of the wildfire season. As a result, the Company anticipates its 2024 adjusted EBITDA to grow by over
Definitions and reconciliations of net loss to EBITDA and Adjusted EBITDA, are attached as Exhibit A to this release.
Conference Call
Bridger Aerospace will hold an investor conference call on Monday, November 11, 2024, at 5:00 p.m. Eastern Time (3:00 p.m. Mountain Time) to discuss these results and its business outlook. Interested parties can access the conference call by dialing 800-225-9448 or 203-518-9708. The conference call will also be broadcast live on the Investor Relations section of our website at https://ir.bridgeraerospace.com. An audio replay will be available through November 18, 2024, by calling 844-512-2921 or 412-317-6671 and using the passcode 11157311. The replay will also be accessible at https://ir.bridgeraerospace.com.
About Bridger Aerospace
Based in Belgrade, Montana, Bridger Aerospace Group Holdings, Inc. is one of the nation’s largest aerial firefighting companies. Bridger provides aerial firefighting and wildfire management services to federal and state government agencies, including the United States Forest Service, across the nation, as well as internationally. More information about Bridger Aerospace is available at https://www.bridgeraerospace.com.
Investor Contacts
Alison Ziegler
Darrow Associates
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, including references to Bridger’s acquisition of FMS Aerospace and the anticipated benefits therefrom, and increased deployment of Bridger’s aircraft fleet, including references to Bridger’s acquisition of and/or right to use the four Spanish Scoopers, including the expected closing timings thereof, the anticipated benefits therefrom, and the ultimate structure of such acquisitions and/or right to use arrangements and anticipated operational and revenue growth in Spain; (2) Bridger’s business and growth plans, including the timing of any international expansion, if any, and the potential jurisdictions in which Bridger may generate revenue; (3) Bridger’s future financial performance, including the collection of any outstanding receivables; (4) the magnitude, timing, and benefits from any cost reduction actions; (5) current and future demand for aerial firefighting services, including the duration or severity of any domestic or international wildfire seasons; 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: 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 any 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 filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 20, 2024, as amended by Amendment No. 1 to Bridger’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2023, filed with the SEC on July 12, 2024, and Bridger’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 filed with the SEC on August 12, 2024. If any of these risks materialize or Bridger management's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. The risks and uncertainties above are not exhaustive, and there may be additional risks that Bridger presently does not know or that Bridger currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Bridger’s expectations, plans or forecasts of future events and views as of the date of this press release. Bridger anticipates that subsequent events and developments will cause Bridger’s assessments to change. However, while Bridger may elect to update these forward-looking statements at some point in the future, Bridger specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Bridger’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements contained in this press release.
| BRIDGER AEROSPACE GROUP HOLDINGS, INC. | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||
| (unaudited) | |||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues | $ | 64,507 | $ | 53,619 | $ | 83,028 | $ | 65,600 | |||||||
| Cost of revenues: | |||||||||||||||
| Flight operations | 15,122 | 10,248 | 25,237 | 20,280 | |||||||||||
| Maintenance | 7,879 | 5,723 | 16,837 | 13,450 | |||||||||||
| Total cost of revenues | 23,001 | 15,971 | 42,074 | 33,730 | |||||||||||
| Gross income | 41,506 | 37,648 | 40,954 | 31,870 | |||||||||||
| Selling, general and administrative expense | 8,641 | 15,064 | 28,153 | 63,480 | |||||||||||
| Operating income (loss) | 32,865 | 22,584 | 12,801 | (31,610 | ) | ||||||||||
| Interest expense | (5,989 | ) | (5,970 | ) | (17,766 | ) | (17,176 | ) | |||||||
| Other income | 470 | 560 | 1,773 | 2,253 | |||||||||||
| Income (loss) before income taxes | 27,346 | 17,174 | (3,192 | ) | (46,533 | ) | |||||||||
| Income tax benefit | - | 314 | 470 | 314 | |||||||||||
| Net Income (loss) | $ | 27,346 | $ | 17,488 | $ | (2,722 | ) | $ | (46,219 | ) | |||||
| Series A Preferred Stock – adjustment for deemed dividend upon Closing | - | - | - | (48,300 | ) | ||||||||||
| Series A Preferred Stock – adjustment to eliminate | - | - | - | 156,362 | |||||||||||
| Series A Preferred Stock – adjustment to maximum redemptions value | (6,476 | ) | (6,048 | ) | (18,861 | ) | (16,128 | ) | |||||||
| Earnings (loss) earnings attributable to Common stockholders - basic | $ | 20,870 | $ | 11,440 | $ | (21,583 | ) | $ | 45,715 | ||||||
| Change in fair value of embedded derivative | - | (179 | ) | - | 45 | ||||||||||
| Dilutive adjustments to (Loss) earnings attributable to Common stockholders - basic | 6,476 | 6,048 | - | (91,934 | ) | ||||||||||
| Earnings (loss) attributable to Common stockholders - diluted | $ | 27,346 | $ | 17,309 | $ | (21,583 | ) | $ | (46,174 | ) | |||||
| Earnings (loss) earnings per share - basic | $ | 0.39 | $ | 0.25 | $ | (0.43 | ) | $ | 1.02 | ||||||
| Earnings (loss) per share - diluted | $ | 0.31 | $ | 0.22 | $ | (0.43 | ) | $ | (0.60 | ) | |||||
| Weighted average Common Stock outstanding – basic | 52,935 | 45,906 | 49,633 | 44,937 | |||||||||||
| Weighted average Common Stock outstanding – diluted | 87,956 | 79,478 | 49,633 | 76,645 | |||||||||||
| BRIDGER AEROSPACE GROUP HOLDINGS, INC. | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands) | |||||||
| (Unaudited) | |||||||
| As of September 30, 2024 | As of December 31, 2023 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 33,328 | $ | 22,956 | |||
| Restricted cash | 9,262 | 13,981 | |||||
| Investments in marketable securities | - | 1,009 | |||||
| Accounts and note receivable | 27,267 | 4,113 | |||||
| Aircraft support parts | 799 | 488 | |||||
| Prepaid expenses and other current assets | 3,656 | 2,648 | |||||
| Total current assets | 74,312 | 45,195 | |||||
| Property, plant and equipment, net | 185,390 | 196,611 | |||||
| Intangible assets, net | 6,217 | 1,730 | |||||
| Goodwill | 24,813 | 13,163 | |||||
| Other noncurrent assets | 16,580 | 16,771 | |||||
| Total assets | $ | 307,312 | $ | 273,470 | |||
| LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIT | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 3,723 | $ | 3,978 | |||
| Accrued expenses and other current liabilities | 13,570 | 17,168 | |||||
| Operating right-of-use current liability | 2,332 | 2,153 | |||||
| Current portion of long-term debt, net of debt issuance costs | 2,121 | 2,099 | |||||
| Total current liabilities | 21,746 | 25,398 | |||||
| Long-term accrued expenses and other noncurrent liabilities | 7,318 | 10,777 | |||||
| Operating right-of-use noncurrent liability | 5,852 | 5,779 | |||||
| Long-term debt, net of debt issuance costs | 203,045 | 204,585 | |||||
| Total liabilities | $ | 237,961 | $ | 246,539 | |||
| COMMITMENTS AND CONTINGENCIES | |||||||
| MEZZANINE EQUITY | |||||||
| Series A Preferred Stock | 373,701 | 354,840 | |||||
| STOCKHOLDERS’ DEFICIT | |||||||
| Common Stock | 6 | 5 | |||||
| Additional paid-in capital | 111,288 | 84,771 | |||||
| Accumulated deficit | (416,394 | ) | (413,672 | ) | |||
| Accumulated other comprehensive income | 750 | 987 | |||||
| Total stockholders’ deficit | (304,350 | ) | (327,909 | ) | |||
| Total liabilities, mezzanine equity, and stockholders’ deficit | $ | 307,312 | $ | 273,470 | |||
| BRIDGER AEROSPACE GROUP HOLDINGS, INC. | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (in thousands) | |||||||
| (Unaudited) | |||||||
| For the nine months ended September 30, | |||||||
| 2024 | 2023 | ||||||
| Cash Flows from Operating Activities: | |||||||
| Net loss | $ | (2,722 | ) | $ | (46,219 | ) | |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities, net of acquisition: | |||||||
| Depreciation and amortization | 14,759 | 10,234 | |||||
| Stock based compensation expense | 13,719 | 38,651 | |||||
| Amortization of debt issuance costs | 692 | 726 | |||||
| Loss on disposal of fixed assets | 251 | 423 | |||||
| Deferred tax benefit | (490 | ) | - | ||||
| Impairment of long-lived assets | - | 627 | |||||
| Change in fair value of the Warrants | (3,997 | ) | 1,865 | ||||
| Change in fair value of freestanding derivative | - | 51 | |||||
| Change in fair value of earnout consideration | 479 | - | |||||
| Realized gain on investments in marketable securities | (16 | ) | (562 | ) | |||
| Change in fair value of embedded derivative | (885 | ) | (45 | ) | |||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (20,453 | ) | (25,373 | ) | |||
| Aircraft support parts | (46 | ) | 1,273 | ||||
| Prepaid expense and other current and noncurrent assets | 1,303 | (4,058 | ) | ||||
| Accounts payable, accrued expenses and other liabilities | (2,428 | ) | (19,084 | ) | |||
| Net cash provided by (used in) operating activities | 166 | (41,491 | ) | ||||
| Cash Flows from Investing Activities: | |||||||
| Proceeds from sales and maturities of marketable securities | 1,055 | 53,089 | |||||
| Purchases of property, plant and equipment | (3,099 | ) | (18,054 | ) | |||
| Sale of property, plant and equipment | 505 | 817 | |||||
| Expenditures for capitalized software | (973 | ) | - | ||||
| Cash acquired through acquisition | 2,592 | - | |||||
| Net cash provided by investing activities | 80 | 35,852 | |||||
| Cash Flows from Financing Activities: | |||||||
| Repayments on debt | (2,210 | ) | (1,482 | ) | |||
| Payment of issuance costs for Common Stock in offerings | (1,006 | ) | - | ||||
| Payment of finance lease liability | (20 | ) | (23 | ) | |||
| Restricted stock units settled in cash | (694 | ) | - | ||||
| Proceeds from issuance of Common Stock in the at-the-market offering | 168 | - | |||||
| Proceeds from issuance of Common Stock in the registered direct offering | 9,169 | - | |||||
| Proceeds from the Closing | - | 3,194 | |||||
| Costs incurred related to the Closing | - | (6,794 | ) | ||||
| Net cash provided by (used in) financing activities | 5,407 | (5,105 | ) | ||||
| Effects of exchange rate changes | - | (44 | ) | ||||
| Net change in cash, cash equivalents and restricted cash | 5,653 | (10,788 | ) | ||||
| Cash, cash equivalents and restricted cash – beginning of the period | 36,937 | 42,460 | |||||
| Cash, cash equivalents and restricted cash – end of the period | $ | 42,590 | $ | 31,672 | |||
| Less: Restricted cash – end of the period | 9,262 | 12,293 | |||||
| Cash and cash equivalents – end of the period | $ | 33,328 | $ | 19,379 | |||
EXHIBIT A
Non-GAAP Results and Reconciliations
Although Bridger believes that net income or loss, as determined in accordance with GAAP, is the most appropriate earnings measure, we use EBITDA and Adjusted EBITDA as key profitability measures to assess the performance of our business. Bridger believes these measures help illustrate underlying trends in our business and use the measures to establish budgets and operational goals, and communicate internally and externally, in managing our business and evaluating its performance. Bridger also believes these measures help investors compare our operating performance with its results in prior periods in a way that is consistent with how management evaluates such performance.
Each of the profitability measures described below is not recognized under GAAP and does 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 profit 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 gains and losses on disposals of assets, and offering costs related to financing and other transactions, which include costs that are required to be expensed in accordance with GAAP. In addition, we exclude from Adjusted EBITDA non-cash stock-based compensation, business development and integration expenses, the change in the fair value of earnout consideration and the change in the fair value of warrants. 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 income (loss), the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023.
| (in thousands) | For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income (loss) | $ | 27,346 | $ | 17,488 | $ | (2,722 | ) | $ | (46,219 | ) | |||||
| Income tax benefit | - | (314 | ) | (470 | ) | (314 | ) | ||||||||
| Depreciation and amortization | 11,471 | 5,248 | 14,759 | 10,234 | |||||||||||
| Interest expense | 5,989 | 5,970 | 17,766 | 17,176 | |||||||||||
| EBITDA | 44,806 | 28,392 | 29,333 | (19,123 | ) | ||||||||||
| Stock-based compensation(1) | 3,369 | 6,605 | 13,718 | 39,749 | |||||||||||
| Business development & integration expenses(2) | 287 | 680 | 748 | 1,553 | |||||||||||
| Offering costs(3) | 105 | 662 | (44 | ) | 3,930 | ||||||||||
| Loss on disposal(4) | - | - | - | 1,052 | |||||||||||
| Change in fair value of earnout consideration(5) | 272 | - | 479 | - | |||||||||||
| Change in fair value of Warrants(6) | (1,865 | ) | 2,399 | (3,997 | ) | 1,866 | |||||||||
| Adjusted EBITDA | $ | 46,974 | $ | 38,738 | $ | 40,237 | $ | 29,027 | |||||||
- Represents non-cash stock-based compensation expense associated with employee and non-employee equity awards.
- Represents expenses related to integration costs for completed acquisitions and potential acquisition targets and additional business lines.
- Represents one-time costs for professional service fees related to the preparation for potential offerings that have been expensed during the period.
- Represents loss on the disposal of an aging aircraft and the non-cash impairment charges on a retired aircraft.
- Represents non-cash fair value adjustment for earnout consideration issued in connection with the acquisition of Ignis Technologies, Inc. and Flight Test & Mechanical Solutions, Inc.
- Represents the non-cash fair value adjustment for the outstanding warrants.
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