On November 13, 2023, Bridger Aerospace Group Holdings Inc (BAER, Financial) released its 8-K filing, announcing a record-breaking third quarter for 2023. The company, a leading aerial firefighting service provider, reported unprecedented growth in revenue, net income, and Adjusted EBITDA, despite facing a shorter-than-average North American wildfire season.
Fiscal Summary and Performance Highlights
Bridger Aerospace Group Holdings Inc (BAER, Financial) achieved a remarkable third quarter with revenue surging to $53.6 million, a significant increase from $32.5 million in the same quarter of the previous year. This 65% year-over-year growth was attributed to the highest utilization levels of BAER's Super Scooper fleet in the company's history. Net income for the quarter stood at $17.5 million, a substantial improvement from a net loss of $5.7 million in Q3 2022. Adjusted EBITDA also saw a dramatic rise to $38.7 million, compared to $19.1 million in the prior-year period.
Financial Tables Summary
Cost of revenues for Q3 2023 was $15.2 million, with flight operations and maintenance expenses accounting for $9.7 million and $5.5 million, respectively. This represents an increase from Q3 2022, primarily due to the addition of two Super Scooper aircraft. Selling, general, and administrative expenses (SG&A) decreased to $15.8 million from $18.1 million in Q3 2022, mainly due to lower transaction-related bonuses and offering costs. Interest expense also decreased to $6.0 million from $7.0 million in the same quarter last year.
Year to Date and Business Outlook
For the first nine months of 2023, BAER's revenue was $65.6 million, up from $45.3 million in the same period of 2022. The company reported a net loss of $46.2 million for the first nine months of 2023, which was larger than the $25.1 million net loss in the same period last year, primarily due to non-cash stock-based compensation expense. Adjusted EBITDA for the first nine months was $29.0 million, more than double the $12.2 million in 2022.
However, due to the shorter wildfire season, BAER has revised its full-year 2023 revenue guidance from the previous range of $84 million to $96 million to a new range of $66 million to $68 million. The company also anticipates negative Adjusted EBITDA of $10.0 million to $11.0 million for Q4 2023 and has projected full-year 2023 Adjusted EBITDA to be between $18 million and $19 million, down from the prior estimate of $37 million to $45 million.
Acquisition and Conference Call Updates
BAER is in the process of acquiring four Spanish Super Scoopers, which is expected to contribute to revenue and cash flow growth in the coming years. The company has also mutually agreed to terminate the purchase agreement with Big Horn Airways, Inc., with no break-up fee involved.
Bridger Aerospace will hold an investor conference call to discuss these results, its current financial position, and business outlook. Interested parties can access the call details on the company's Investor Relations website.
Conclusion
Despite the challenges posed by a shorter wildfire season, Bridger Aerospace Group Holdings Inc (BAER, Financial) has demonstrated resilience with its record Q3 2023 performance. The company's strategic acquisitions and cost management initiatives are expected to bolster its financial standing and operational capabilities in the long term.
Investors and stakeholders are encouraged to review the detailed financial statements and listen to the conference call for a comprehensive understanding of BAER's financial health and future prospects.
Explore the complete 8-K earnings release (here) from Bridger Aerospace Group Holdings Inc for further details.
