Bridger Aerospace Group Holdings Inc (BAER) 2023 Q3 法說會逐字稿

Good afternoon and welcome to the Bridger Aerospace Third Quarter 2023 conference call. All participants will be in listen only mode. (Operator Instructions)

下午好，歡迎參加 Bridger Aerospace 2023 年第三季電話會議。所有參與者將處於僅聽模式。 （操作員說明）

Please note this event is being recorded. I would now like to turn the conference over to Eric Gerratt, CFO. Please go ahead.

請注意此事件正在被記錄。我現在想將會議交給財務長 Eric Gerratt。請繼續。

Good afternoon, and thank you for joining us today. Joining me on the call this afternoon is Chief Executive Officer, Founder, and Director, Tim Sheehy.

下午好，感謝您今天加入我們。今天下午與我一起參加電話會議的是執行長、創辦人兼董事 Tim Sheehy。

Before we begin, please note that certain statements contained in this conference call that do not describe historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. While forward-looking statements are based on various assumptions, risks and uncertainties, actual results may differ materially from those expressed or implied by such statements.

在開始之前，請注意，本次電話會議中包含的某些未描述歷史事實的陳述屬於 1995 年《私人證券訴訟改革法案》中定義的前瞻性陳述。雖然前瞻性陳述基於各種假設、風險和由於存在不確定性，實際結果可能與此類聲明中明示或暗示的結果有重大差異。

Factors that could cause results to differ materially from those expressed include but are not limited to those discussed in the company's filings with the Securities and Exchange Commission, including expectations regarding financial results for 2023 and 2024. Management cannot control or predict many factors that ultimately impact future results.

可能導致結果與所表達的結果有重大差異的因素包括但不限於公司向美國證券交易委員會提交的文件中討論的因素，包括對2023 年和2024 年財務業績的預期。管理層無法控製或預測最終影響的許多因素未來的結果。

Listeners should not place undue reliance on forward-looking statements, which reflect management's views only as of today. We anticipate that subsequent events and developments will cause our assessments to change. However, we undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements.

聽眾不應過度依賴前瞻性陳述，這些陳述僅反映管理階層截至目前的觀點。我們預計後續事件和事態發展將導致我們的評估發生變化。但是，我們不承擔修改或更新任何前瞻性陳述或做出任何其他前瞻性陳述的義務。

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

在今天下午的財報發布以及今天的電話會議和演示中，我們提到了非公認會計原則財務指標，調整後的 EBITDA。調整後 EBITDA 財務報表的定義、計算和調節可以在我們網站上的收益發布的附件 A 中找到。我們認為調整後的 EBITDA 對於評估我們報告的結果非常有用，作為 GAAP 報告結果的補充而不是替代。

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

有了這個，我想把電話轉給提姆。

Thank you, Eric. Good afternoon. Thank you for joining today's call to discuss our third quarter results and recent progress, including contract wins, fleet acquisition plans, and the expansion of our aero firefighting services to new mission critical areas and geographies.

謝謝你，埃里克。午安.感謝您參加今天的電話會議，討論我們第三季度的業績和最近的進展，包括贏得合約、機隊收購計劃以及將我們的航空消防服務擴展到新的關鍵任務區域和地區。

For our third quarter update, the earnings potential of our scooper fleet was on full display in the third quarter as we experienced the highest level of utilization in the company's history. This drove our record results, including record quarterly revenue of over $50 million, and record adjusted EBITDA of nearly $39 million.

在我們的第三季更新中，我們的鏟運機車隊的獲利潛力在第三季度得到了充分展示，因為我們經歷了公司歷史上最高的利用率水平。這推動了我們創紀錄的業績，包括創紀錄的季度收入超過 5,000 萬美元，以及創紀錄的調整後 EBITDA 近 3,900 萬美元。

It was also a record quarter in terms of our territories covered as we flew from east to west coast of Canada and all the way down to Louisiana. This is a testament to the rapid adoption of our initial attack platform enabled by the super scooper's superior initial attack capabilities, and our industry-leading surveillance technology.

從我們從加拿大東海岸飛往西海岸，一直飛往路易斯安那州的覆蓋範圍來看，這個季度也創下了紀錄。這證明了我們的初始攻擊平台得到了快速採用，這得益於超級鏟子卓越的初始攻擊能力和我們行業領先的監控技術。

With one of the nation's largest aerial firefighting fleets and our long-standing customer relationships with federal and state agencies, we continue to be a beneficiary of the trend for government outsourcing of aerial firefighting services. This quarter, we were awarded a 10-year aerotech contract for up $166 million from the US Forest Service to provide various fixed wing missions for aero supervision, incident awareness, fire detection and reconnaissance. This contract is separate from the previously disclosed contract with the US Department of Interior awarded in July 2023, which included two five-year exclusive use contracts worth up to $24 million each and one culminated contract worth up to $20 million for high-resolution surveillance and intelligence operations using a specialized aerotech asset.

憑藉全國最大的空中消防機隊之一以及與聯邦和州機構的長期客戶關係，我們繼續成為政府外包空中消防服務趨勢的受益者。本季度，我們從美國林務局獲得了一份價值 1.66 億美元的 10 年期航空技術合同，為航空監管、事故感知、火災探測和偵察提供各種固定翼任務。該合約與先前披露的2023 年7 月與美國內政部簽訂的合約不同，其中包括兩份為期五年的獨家使用合同，每份價值高達2400 萬美元，以及一份價值高達2000 萬美元的高分辨率監控和監控合約。使用專門的航空技術資產進行情報行動。

The award is based in part on the architecture of Bridger's proprietary data platform. As a small business with leading edge sensor and mapping capabilities and historic contract performance, we are well-positioned to support our federal and state and international lines in the growing battle against wildfires.

該獎項部分基於 Bridger 專有數據平台的架構。作為一家擁有領先感測器和測繪能力以及歷史性合約履行情況的小型企業，我們處於有利地位，可以在日益激烈的抗擊野火的鬥爭中支持我們的聯邦、州和國際線路。

Speaking of our fire intelligence assets in September, we completed the acquisition of Ignis Technologies to expand our wildland fire software offerings. We issued $3 million of restricted stock at the close, and there will be additional contingent earnout consideration of up to $9 million also to be paid in restricted shares.

談到我們九月的火災情報資產，我們完成了對 Ignis Technologies 的收購，以擴展我們的荒地火災軟體產品。我們在收盤時發行了 300 萬美元的限制性股票，並且還將以限制性股票的形式支付高達 900 萬美元的額外或有收益對價。

Ignis delivers mission-critical intelligence and technology solutions, and maximizes the value of our investments in fire intelligence SaaS assets. Through collaborative development with federal, state and local fire organizations, Ignis aimed at developing a pioneering mobile and web platform that elevates firefighter situational awareness, creates an inter-operable common operating picture across firefighting units, and produces real-time high value data in conjunction with our proprietary fire direct software. It presents the clearest path to executing on our shared mission to equip firefighters with the critical technology they need to reduce the number of lives, properties, and natural habitats lost to wildfire.

Ignis 提供關鍵任務情報和技術解決方案，並最大限度地提高我們在消防情報 SaaS 資產方面的投資價值。透過與聯邦、州和地方消防組織的合作開發，Ignis 旨在開發一個開創性的移動和網絡平台，提高消防員的態勢感知能力，創建跨消防單位可互操作的通用操作畫面，並結合生成實時高價值數據使用我們專有的消防直接軟體。它為執行我們的共同使命提供了最清晰的途徑，即為消防員配備所需的關鍵技術，以減少野火造成的生命、財產和自然棲息地的損失。

We also continue to pursue opportunities to further expand our fleet, both in the US and abroad. As we announced September, we successfully bid to be a public tender process to purchase four Canadair CL-215T Amphibious Aircraft from the Spanish Ministry. We are working to complete the acquisition process, and we'll have an update soon.

我們也將繼續尋求機會進一步擴大我們在美國和海外的機隊。正如我們在 9 月宣布的那樣，我們成功透過公開招標從西班牙外交部購買了四架加拿大航空 CL-215T 兩棲飛機。我們正在努力完成收購過程，我們很快就會收到最新消息。

While we remain on good terms with Bighorn Airways, we have mutually agreed to terminate the existing purchase and sale agreement, which was announced in July. We remain hopeful that there will be opportunities to reengage in future.

雖然我們與 Bighorn Airways 保持著良好的關係，但我們雙方同意終止 7 月宣布的現有購買和銷售協議。我們仍然希望未來有機會重新參與。

While the wildfire season will always remain unpredictable, we see continued demand for our services and look forward to supporting the needs of our customers. We are also receiving an unprecedented influx of requests from multiple foreign governments for wildfire suppression services. This is due both to the global demand for super scoopers fed by the limited supply of functional super scoopers, and the heightened awareness of the effectiveness of these purpose-built aircraft.

雖然野火季節始終難以預測，但我們看到對我們服務的持續需求，並期待支持客戶的需求。我們也收到了多個外國政府前所未有的大量山火撲滅服務請求。這是由於功能性超級鏟運機的供應有限而滿足了全球對超級鏟運機的需求，以及人們對這些專用飛機的有效性的認識提高。

We're just taking steps to strategically position its assets to serve these needs and to match multi-continent weather exposure to diversify this customer base and facilitate year-round firefighting operations.

我們只是採取措施，策略性地定位其資產，以滿足這些需求，並適應多洲的天氣狀況，使客戶群多樣化，並促進全年消防行動。

I'll now turn the call back over to Eric, who will update you about our financial performance in the third quarter.

現在我將把電話轉回給埃里克，他將向您介紹我們第三季財務業績的最新情況。

Thanks, Tim. Revenue for the third quarter of 2023 was $53.6 million compared to $32.4 million in the third quarter of 2022, up 65%. The increase was the result of record utilization of the company's growing scooper fleet despite a slower than average North American wildfire season. Cost of revenues was $15.2 million in the third quarter of 2023, and was comprised of flight operation expenses of $9.7 million and maintenance expenses of $5.5 million.

謝謝，蒂姆。 2023 年第三季的營收為 5,360 萬美元，較 2022 年第三季的 3,240 萬美元成長 65%。這一增長是由於儘管北美野火季節慢於平均水平，但該公司不斷增長的鏟運機車隊的利用率卻創歷史新高。 2023 年第三季的收入成本為 1,520 萬美元，其中包括 970 萬美元的航班營運費用和 550 萬美元的維護費用。

This compares to cost of revenues of $12.6 million in the third quarter of 2022, which included $7.1 million of flight operations expenses and $5.5 million of maintenance expenses. The increase primarily relates to higher depreciation, maintenance, and other expenses related to the two additional super scooper aircraft that were placed into service in September 2022 and February 2023, respectively.

相較之下，2022 年第三季的收入成本為 1,260 萬美元，其中包括 710 萬美元的飛行營運費用和 550 萬美元的維護費用。這一增長主要與分別於 2022 年 9 月和 2023 年 2 月投入使用的另外兩架超級直升機相關的折舊、維護和其他費用增加有關。

Selling, general and administrative expenses were $15.8 million in the third quarter of 2023 compared to $18.1 million in the third quarter last year. The decrease was primarily due to transaction related bonuses for employees and executives, and higher operating costs were recorded in the third quarter of 2022. These decreases were partially offset by higher noncash stock-based compensation expense in the third quarter of 2023 compared to the third quarter of 2022.

2023 年第三季的銷售、一般和管理費用為 1,580 萬美元，而去年第三季為 1,810 萬美元。減少的主要原因是員工和高管的交易相關獎金，以及 2022 年第三季度營運成本增加。與第三季度相比，2023 年第三季度非現金股票薪酬費用增加部分抵消了這些減少。2022 年第四季。

Interest expense for the third quarter of 2023 decreased to $6 million, down from $7 million in the third quarter of 2022, primarily due to lower interest expense for the Series A preferred stock year over year. The decrease was partially offset by additional interest expense for the Gallatin municipal bond that closed in the third quarter of 2022.

2023 年第三季的利息支出從 2022 年第三季的 700 萬美元下降至 600 萬美元，主要是由於 A 輪優先股的利息支出較去年同期下降。這一下降被 2022 年第三季結束的加勒廷市政債券的額外利息支出部分抵消。

The company also reported other income of $0.6 million for the third quarter of 2023, primarily comprised of interest income for the embedded derivative of our preferred equity of $0.4 million. For the third quarter of 2023, net income was $17.5 million compared to a net loss of $5.7 million in the third quarter of 2022, driven by strong fleet utilization in the third quarter this year.

該公司還報告了 2023 年第三季的其他收入 60 萬美元，主要包括我們優先股嵌入衍生性商品的利息收入 40 萬美元。由於今年第三季機隊利用率強勁，2023 年第三季淨利為 1,750 萬美元，而 2022 年第三季淨虧損為 570 萬美元。

Adjusted EBITDA was $38.7 million compared to $19.1 million in the third quarter of 2022. Adjusted EBITDA excludes income tax benefit, interest expense, depreciation and amortization, stock-based compensation, gains and losses on disposal of assets, offering costs related to financing and other transactions, business development integration expenses, as well as loss on extinguishment of debt and one-time discretionary bonuses to employees and executives.

調整後EBITDA 為3,870 萬美元，而2022 年第三季為1,910 萬美元。調整後EBITDA 不包括所得稅優惠、利息費用、折舊和攤提、股票薪酬、資產處置損益、與融資相關的發行成本和其他費用交易、業務發展整合費用，以及債務清償損失以及向員工和高階主管發放的一次性酌情花紅。

Looking at our results for the first nine months of 2023, revenue was $65.6 million compared to $45.3 million in the first nine months of 2022. Cost of revenues was $33 million compared to $28.6 million in the first nine months last year. SG&A expenses were $64.2 million compared to $28.6 million in the first nine months of 2022, with the increase being driven primarily by noncash stock-based compensation expense this year.

從我們 2023 年前 9 個月的業績來看，收入為 6560 萬美元，而 2022 年前 9 個月為 4530 萬美元。收入成本為 3300 萬美元，而去年前 9 個月為 2860 萬美元。 SG&A 費用為 6,420 萬美元，而 2022 年前 9 個月為 2,860 萬美元，成長主要是由於今年非現金股票薪酬費用。

Interest expense for the first nine months increased to $17.2 million from $13 million in the first nine months of 2022. Bridger also reported other income of $2.3 million for the first nine months of '23 compared to $0.2 million of other expenses for the first nine months of 2022. Net loss was $46.2 million in the first nine months of 2023 compared to $25.1 million in the first nine months of 2022, with adjusted EBITDA at $29 million for the first nine months this year compared to $12.2 million in the same period last year.

前9 個月的利息支出從2022 年前9 個月的1,300 萬美元增加到1,720 萬美元。Bridger 還報告稱，2023 年前9 個月的其他收入為230 萬美元，而前9 個月的其他支出為20 萬美元2022 年前9 個月的淨虧損為4,620 萬美元，而2022 年前9 個月的淨虧損為2,510 萬美元，今年前9 個月調整後的EBITDA 為2,900 萬美元，而去年同期為1220 萬美元。

Turning to our balance sheet, we ended the third quarter with cash, restricted cash, and short-term investments of $33.9 million, up from $25.7 million at June 30, 2023, driven by seasonality and the strong third quarter performance. While the company saw record results in the third quarter after the late start to the wildfire season, the last two weeks of September brought cooler, wet weather to the US and Canada.

談到我們的資產負債表，受季節性因素和第三季強勁業績的推動，第三季末我們的現金、限制性現金和短期投資為3,390 萬美元，高於2023 年6 月30 日的2570萬美元。雖然該公司在野火季節較晚開始後第三季取得了創紀錄的業績，但 9 月的最後兩週為美國和加拿大帶來了涼爽潮濕的天氣。

With limited wildfire activity in the first part of our seasonally slower fourth quarter, we now expect the shortest North American fire season in the past 10 years. As a result, we are reducing our previous annual 2023 revenue guidance of $84 million to $96 million to a range of $66 million to $68 million.

由於季節性放緩的第四季前半段野火活動有限，我們現在預計北美火災季節將是過去 10 年來最短的。因此，我們將先前 2023 年的收入指引從 8,400 萬美元至 9,600 萬美元下調至 6,600 萬美元至 6,800 萬美元。

Given the company's largely fixed cost structure, Bridger typically generates negative EBITDA in the fourth quarter. In response to the shorter 2023 wildfire season and reduced revenue, we've identified reductions to our cost structure, which will benefit the fourth quarter as well as the full year of 2024. Even with these cost reductions, the company expects to report negative EBITDA of $10 million to $11 million in the fourth quarter of 2023, which brings full year 2023 adjusted EBITDA to a range of $18 million to $19 million.

鑑於公司基本固定的成本結構，Bridger 通常在第四季度產生負 EBITDA。為了應對 2023 年野火季節縮短和收入減少，我們已經確定了成本結構的削減，這將使第四季度以及 2024 年全年受益。即使有這些成本削減，該公司預計仍將出現負 EBITDA 2023 年第第四季將達到1,000 萬至1,100 萬美元，這使得2023 年全年調整後EBITDA 達到1,800 萬至1,900 萬美元。

This compares to our prior estimate of $37 million to $45 million. These current estimates assume wildfire conditions will remain unchanged for the remainder of the fourth quarter, and additional aircraft will not be deployed.

相比之下，我們先前的估計為 3700 萬至 4500 萬美元。目前的估計假設第四季度剩餘時間內野火狀況將保持不變，並且不會部署額外的飛機。

Looking at Bridger's standalone operations for the full year 2024, which excludes the impact of any acquisitions, and accounts for the estimated $16 million of annual reduction with the company's fixed cost structure. 2024 adjusted EBITDA is anticipated to range from $35 million to $51 million, a gain of at least 84% on revenue of $70 million to $86 million. The low end of this guidance range is consistent with the unusually short 2023 fire season, with the high end being consistent with a longer more normal fire season.

看看 Bridger 2024 年全年的獨立營運情況，其中不包括任何收購的影響，並且由於公司的固定成本結構，預計每年減少 1600 萬美元。 2024 年調整後 EBITDA 預計為 3,500 萬美元至 5,100 萬美元，相對於 7,000 萬美元至 8,600 萬美元的營收至少成長 84%。此指導範圍的下限與異常短暫的 2023 年火災季節一致，上限與較長且正常的火災季節一致。

With that, I'd like to turn the call back to Tim for final comments.

至此，我想將電話轉回蒂姆以徵求最終意見。

Thank you, Eric, and thank you to everyone for joining us on today's call and for your support. While this year has been full of challenges thus far, with a profitable business model, strong fundamentals, strict cost controls, and a growing number of opportunities to expand our fleet, we are well positioned to see significant growth and drive shareholder returns while supporting our federal, state and international clients in the growing battle against wildfires.

謝謝艾瑞克，也謝謝大家參加今天的電話會議並感謝大家的支持。儘管今年迄今為止充滿了挑戰，但憑藉盈利的商業模式、強勁的基本面、嚴格的成本控制以及越來越多的擴大機隊的機會，我們處於有利位置，可以看到顯著的增長並推動股東回報，同時支持我們的業務。聯邦、州和國際客戶參與日益激烈的野火鬥爭。

We look forward to updating you on our progress. We will also be attending the Wolfe Research first annual Small and Mid Cap Conference, which is scheduled for December 6 and 7 in New York, and hope to see some of you there.

我們期待向您通報我們的最新進展。我們還將參加 Wolfe Research 首屆年度中小型股會議，該會議定於 12 月 6 日至 7 日在紐約舉行，希望在那裡見到你們中的一些人。

Thank you.

謝謝。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。