Bridger Aerospace Group Holdings Inc
For the period ended Sep 30, 2024. Filed Nov 13, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 13, 2024
BAER$0.20-3.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-13.
0001628280-24-036974
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-13.
0001628280-24-047665
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 208 previous paragraphs and 211 current paragraphs.
132 unchanged; 63 reworded; 16 added; 11 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
•Maintenance Repair: Consists of maintenance and repair services for return-to-service upgrades of the Spanish Scoopers as well as airframe modifications and integration solutions for government and commercial customers.
Current report
Interest Expense
Current report
Revenues increased by $10.9 million, or 20%, to $64.5 million for the three months ended September 30, 2024, from $53.6 million for the three months ended September 30, 2023.
Current report
Fire suppression revenue increased by $4.4 million, or 10%, to $50.6 million for the three months ended September 30, 2024, from $46.2 million for the three months ended September 30, 2023. The increase was primarily driven by increased flight hours for our Super Scoopers for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. In 2023, the Company actively expanded our aerial firefighting operations in Canada. The Company has had no aerial firefighting operations in Canada in 2024.
Current report
Maintenance repair was $3.8 million for the three months ended September 30, 2024, compared to none for the three months ended September 30, 2023. This amount is primarily due to the new revenues from maintenance and repair work performed by FMS and the return-to-service work performed on the Spanish Scoopers in connection with the MAB services agreement. Refer to“Note 2 – Summary of Significant Accounting Policies” of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional details.
Current report
Other services revenue increased by $2.4 million, or 2,190%, to $2.5 million for the nine months ended September 30, 2024, from $0.1 million for the nine months ended September 30, 2023. The increase was primarily due to third-party training and flight operations services utilizing our aircraft for the nine months ended September 30, 2024 that did not occur in the prior year period.
Current report
Other revenue increased by $4.5 million, or 1,556%, to $4.8 million for the three months ended September 30, 2024, from $0.3 million for the three months ended September 30, 2023. The increase was primarily due to the maintenance and repair work performed by FMS and the return-to-service work performed on the Spanish Scoopers in connection with the MAB services agreement. Refer to“Note 2 – Summary of Significant Accounting Policies” of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional details.
Current report
Flight operations expenses increased by $4.9 million, or 48%, to $15.1 million for the three months ended September 30, 2024, from $10.2 million for the three months ended September 30, 2023. The increase was primarily attributable to an increase in depreciation expense of $4.3 million, an increase in training costs of $0.3 million, and an increase of employee labor expenses of $0.3 million, in each case for the three months ended September 30, 2024 compared to the three months ended September 30, 2023.
Current report
Maintenance expenses increased by $2.2 million, or 38%, to $7.9 million for the three months ended September 30, 2024, from $5.7 million for the three months ended September 30, 2023. The increase was primarily driven by an increase in aircraft maintenance and modification expense of $1.4 million, an increase in depreciation expense of $0.5 million, an increase in subscriptions, licenses, and fees of $0.1 million, and an increase in training expenses of $0.1 million, in each case for the three months ended September 30, 2024 compared to the three months ended September 30, 2023.
Current report
Revenues increased by $17.4 million, or 27%, to $83.0 million for the nine months ended September 30, 2024, from $65.6 million for the nine months ended September 30, 2023.
Current report
Maintenance repair was $5.6 million for the nine months ended September 30, 2024, compared to none for the nine months ended September 30, 2023. This amount is primarily due to the new revenues from maintenance and repair work performed by FMS and the return-to-service work performed on the Spanish Scoopers in connection with the MAB services agreement. Refer to“Note 2 – Summary of Significant Accounting Policies” of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional details.
Current report
Other services revenue increased by $3.4 million, or 654%, to $3.9 million for the nine months ended September 30, 2024, from $0.5 million for the nine months ended September 30, 2023. The increase was primarily due to third-party training and flight operations services utilizing our aircraft for the nine months ended September 30, 2024 that did not occur in the prior year period.
Current report
Other revenue increased by $6.6 million, or 493%, to $7.9 million for the nine months ended September 30, 2024, from $1.3 million for the nine months ended September 30, 2023. The increase was primarily due to the new revenues from maintenance and repair work performed by FMS and the return-to-service work performed on the Spanish Scoopers in connection with the MAB services agreement. Refer to“Note 2 – Summary of Significant Accounting Policies” of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional details.
Current report
Total cost of revenues increased by $8.3 million, or 25%, to $42.1 million for the nine months ended September 30, 2024, from $33.7 million for the nine months ended September 30, 2023.
Current report
Interest Expense
Current report
Citywide Banks Loans
Removed paragraphs (11)
Previous report
Revenues increased by $1.4 million, or 12%, to $13.0 million for the three months ended June 30, 2024, from $11.6 million for the three months ended June 30, 2023.
Previous report
Fire suppression revenue decreased by $3.0 million, or 29%, to $7.5 million for the three months ended June 30, 2024, from $10.4 million for the three months ended June 30, 2023. The decrease was primarily due to less Super Scoopers deployed for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. In 2023, the Company actively expanded our aerial firefighting operations in Canada.
Previous report
Other services revenue increased by $2.0 million, or 4,630%, to $2.0 million for the three months ended June 30, 2024, from $43,000 for the three months ended June 30, 2023. The increase was primarily due to return-to-service work performed on the Spanish Scoopers in connection with the MAB services agreement. Refer to“Note 2 – Summary of Significant Accounting Policies” of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional details.
Previous report
Other revenue increased by $1.3 million, or 194%, to $2.0 million for the three months ended June 30, 2024, from $0.7 million for the three months ended June 30, 2023. The increase was primarily due to return-to-service work performed on the Spanish Scoopers in connection with the MAB services agreement. Refer to“Note 2 – Summary of Significant Accounting Policies” of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional details.
Previous report
Total cost of revenues decreased by $0.6 million, or 6%, to $9.9 million for the three months ended June 30, 2024, from $10.5 million for the three months ended June 30, 2023.
Previous report
Flight operations expenses decreased by $1.2 million, or 19%, to $5.1 million for the three months ended June 30, 2024, from $6.3 million for the three months ended June 30, 2023. The decrease was primarily due to a decrease in depreciation expense due to a decrease in flight hours for the Super Scoopers in the three months ended June 30, 2024.
Previous report
Maintenance expenses increased by $0.5 million, or 13%, to $4.8 million for the three months ended June 30, 2024, from $4.2 million for the three months ended June 30, 2023. The increase was primarily driven by an increase in employee labor expenses during the three months ended June 30, 2024.
Previous report
Revenues increased by $6.5 million, or 55%, to $18.5 million for the six months ended June 30, 2024, from $12.0 million for the six months ended June 30, 2023.
Previous report
Other services revenue increased by $2.7 million, or 654%, to $3.1 million for the six months ended June 30, 2024, from $0.4 million for the six months ended June 30, 2023. The increase was primarily due to return-to-service work performed on the Spanish Scoopers in connection with the MAB services agreement. Refer to“Note 2 – Summary of Significant Accounting Policies” of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional details.
Previous report
Other revenue increased by $2.1 million, or 199%, to $3.1 million for the six months ended June 30, 2024, from $1.1 million for the six months ended June 30, 2023. The increase was primarily due to return-to-service work performed on the Spanish Scoopers in connection with the MAB services agreement. Refer to“Note 2 – Summary of Significant Accounting Policies” of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional details.
Previous report
Rocky Mountain Bank Loans
Reworded paragraphs (63)
Previous wording
The following discussion and analysis is intended to help you understand our business, financial condition, results of operations, liquidity and capital resources. The discussion and analysis should be read together with the condensed consolidated financial statements as of June 30, 2024 and December 31, 2023, for the three and six months ended June 30, 2024 and 2023, and the related notes thereto, that are included elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”). This discussion and analysis should also be read together with the historical audited annual consolidated financial statements as of and for the years ended December 31, 2023 and 2022, included in the Annual Report on Form 10-K/A (the “Annual Report”). This discussion and analysis contains forward-looking statements based upon our current expectations, estimates and projections that involve risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements due to, among other considerations, the matters discussed in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements.”
Current wording
The following discussion and analysis is intended to help you understand our business, financial condition, results of operations, liquidity and capital resources. The discussion and analysis should be read together with the condensed consolidated financial statements as of September 30, 2024 and December 31, 2023, for the three and nine months ended September 30, 2024 and 2023, and the related notes thereto, that are included elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”). This discussion and analysis should also be read together with the historical audited annual consolidated financial statements as of and for the years ended December 31, 2023 and 2022, included in the Annual Report on Form 10-K/A (the “Annual Report”). This discussion and analysis contains forward-looking statements based upon our current expectations, estimates and projections that involve risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements due to, among other considerations, the matters discussed in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements.”
Previous wording
Bridger provides aerial wildfire surveillance, relief and suppression and aerial firefighting services using next-generation technology and environmentally friendly and sustainable firefighting methods primarily throughout the United States. Our mission is to save lives, property and habitats threatened by wildfires, leveraging our high-quality team, specialized aircraft and innovative use of technology and data. We are meeting an underserved and growing need for next-generation full-service aerial firefighting platforms.
Current wording
Bridger provides aerial wildfire surveillance, relief and suppression and aerial firefighting services using next-generation technology and environmentally friendly and sustainable firefighting methods primarily throughout the United States, as well as airframe modification and integration solutions for governmental and commercial customers. Our mission is to save lives, property and habitats threatened by wildfires, leveraging our high-quality team, specialized aircraft and innovative use of technology and data. We are meeting an underserved and growing need for next-generation full-service aerial firefighting platforms.
Previous wording
Our portfolio is organized across two core offerings:
Current wording
Our portfolio is organized across three core offerings:
Previous wording
We have made and will continue to make significant investments in capital expenditures to build and expand our aerial forest fire management technologies. We expect that our existing cash and cash equivalents as well as cash generated from our operations and potential additional sales of our common stock, par value $0.0001 per share (“Common Stock”), through our at-the-market offering and other offerings will be sufficient to meet our current working capital and capital expenditure requirements for a period of at least 12 months from the date of this Quarterly Report, depending on the cash generated from our seasonal firefighting operations in 2024 and 2025. Refer to the Liquidity and Capital Resources section below and“Note 1 – Organization and Basis of Presentation” of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional details on management’s assessment of the Company’s ability to continue as a going concern.
Current wording
We have made and will continue to make significant investments in capital expenditures to build and expand our integrated response solutions. We expect that our existing cash and cash equivalents as well as cash generated from our operations and potential additional sales of our common stock, par value $0.0001 per share (“Common Stock”), through our at-the-market offering and other offerings will be sufficient to meet our current working capital and capital expenditure requirements for a period of at least 12 months from the date of this Quarterly Report, depending on the cash generated from our seasonal firefighting operations in 2025. Refer to the“Liquidity and Capital Resources” section below and“Note 1 – Organization and Basis of Presentation” of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional details on management’s assessment of the Company’s ability to continue as a going concern.
Previous wording
On January 24, 2023 (the “Closing Date”), Jack Creek Investment Corp (“JCIC”) completed the reverse recapitalization (the “Closing” and the “Reverse Recapitalization”) with the Company’s predecessor, Bridger Aerospace Group Holdings, LLC and its subsidiaries (collectively, “Legacy Bridger”). As a result of the Reverse Recapitalization, Legacy Bridger and JCIC each became wholly-owned subsidiaries of the Company, and the JCIC shareholders and the equity holders of Legacy Bridger converted their equity ownership in JCIC and Legacy Bridger, respectively, into equity ownership in the Company. Legacy Bridger has been determined to be the accounting acquirer with respect to the Reverse Recapitalization, which will be accounted for as a reverse recapitalization, with no goodwill or other intangible assets recorded, in accordance with GAAP.
Current wording
On January 24, 2023 (the “Closing Date”), Jack Creek Investment Corp (“JCIC”) completed the reverse recapitalization (the “Closing” and the “Reverse Recapitalization”) with the Company’s predecessor, Bridger Aerospace Group Holdings, LLC and its subsidiaries (collectively, “Legacy Bridger”). As a result of the Reverse Recapitalization, JCIC and Legacy Bridger each became wholly-owned subsidiaries of a new public company that was renamed Bridger Aerospace Group Holdings, Inc, and JCIC shareholders and Legacy Bridger equity holders converted their equity ownership in JCIC and Legacy Bridger, respectively, into equity ownership in Bridger. Legacy Bridger was determined to be the accounting acquirer as of the Closing Date with respect to the Reverse Recapitalization, which has been accounted for as a reverse recapitalization, with no goodwill or other intangible assets recorded, in accordance with GAAP.
Previous wording
Our primary source of revenues is from providing services, which are disaggregated into fire suppression, aerial surveillance and other services. Revenues and growth for our fire suppression and aerial surveillance services are driven by climate trends, specifically the intensity and timing of the North American fire season. Other services primarily consist of extraneous fulfillment of contractual services such as extended availability and mobilizations. Other services also include maintenance services performed externally for third parties.
Current wording
Our primary source of revenues is from providing services, which are disaggregated into fire suppression, aerial surveillance, maintenance repair and other services. Revenues and growth for our fire suppression and aerial surveillance services are driven by climate trends, specifically the intensity and timing of the North American fire season. Maintenance repair includes revenue from return-to-service and maintenance repair services performed externally for third parties. Other services primarily consist of extraneous fulfillment of contractual services such as extended availability and mobilizations.
Previous wording
We charge daily and hourly rates depending upon the type of firefighting service rendered and under which contract the services are performed. The recognition of revenues for our services are primarily split into flight, standby and other revenues. Flight revenue is primarily earned at an hourly rate when the engines of the aircraft are cycled, upon request of the customer. Standby revenue is primarily earned as a daily rate when aircraft are available for use at a fire base, awaiting request from the customer for flight deployment. Other revenue consists of additional contractual items that can be charged to the customer, such as leasing revenues for facilities, as well as maintenance, repair and return-to-service work performed on customer aircraft.
Current wording
We charge daily and hourly rates depending upon the type of firefighting service rendered and under which contract the services are performed. The recognition of revenues for our services are primarily split into flight, standby and other revenues. Flight revenue is primarily earned at an hourly rate when the engines of the aircraft are cycled, upon request of the customer. Standby revenue is primarily earned as a daily rate when aircraft are available for use at a fire base, awaiting request from the customer for flight deployment. Maintenance repair consists of maintenance, repair and return-to-service work performed on customer aircraft. Other revenue consists of additional contractual items that can be charged to the customer, such as leasing revenues for facilities.
Previous wording
Cost of revenues includes costs incurred directly related to flight operations including expenses associated with operating the aircraft on revenue generating contracts. These include labor, depreciation, subscriptions and fees, travel and fuel. Cost of revenues also includes routine aircraft maintenance expenses and repairs, consisting primarily of labor, parts, consumables, travel and subscriptions unique to each airframe.
Current wording
Cost of revenues includes costs incurred directly related to flight operations including expenses associated with operating the aircraft on revenue generating contracts. These include labor, depreciation, subscriptions and fees, travel and fuel. Cost of revenues also includes routine aircraft maintenance expenses and repairs, including maintenance and modification repair work for third-party aircraft, consisting primarily of labor, parts, consumables, travel and subscriptions unique to each airframe.
Previous wording
Aerial surveillance increased by $2.4 million, or 213%, to $3.5 million for the three months ended June 30, 2024, from $1.1 million for the three months ended June 30, 2023. The increase was primarily due to the higher rate of the Pilatus aircraft operating for the three months ended June 30, 2024 compared to the Twin Commander aircraft operating for three months ended June 30, 2023.
Current wording
Aerial surveillance increased by $0.3 million, or 4%, to $7.6 million for the three months ended September 30, 2024, from $7.4 million for the three months ended September 30, 2023. The increase was primarily due to the higher rate of the Pilatus aircraft operating for the three months ended September 30, 2024 compared to the Twin Commander aircraft operating for three months ended September 30, 2023.
Previous wording
Flight revenue decreased by $1.3 million, or 23%, to $4.5 million for the three months ended June 30, 2024, from $5.8 million for the three months ended June 30, 2023. The decrease in flight revenue was primarily due to less Super Scoopers deployed for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. In 2023, the Company actively expanded our aerial firefighting operations in Canada. The Company has had no aerial firefighting operations in Canada in 2024.
Current wording
Flight revenue increased by $5.6 million, or 20%, to $34.0 million for the three months ended September 30, 2024, from $28.3 million for the three months ended September 30, 2023. The increase in flight revenue was primarily driven by increased flight hours for our Super Scoopers for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. In 2023, the Company actively expanded our aerial firefighting operations in Canada. The Company has had no aerial firefighting operations in Canada in 2024.
Previous wording
Standby revenue increased by $1.4 million, or 27% to $6.5 million for the three months ended June 30, 2024, from $5.1 million for the three months ended June 30, 2023. The increase was primarily due to the higher rate of the Pilatus aircraft operating for the three months ended June 30, 2024 compared to the Twin Commander aircraft operating for three months ended June 30, 2023.
Current wording
Standby revenue increased by $0.7 million, or 3% to $25.7 million for the three months ended September 30, 2024, from $25.0 million for the three months ended September 30, 2023. The increase was primarily due to the higher rate of the Pilatus aircraft operating for the three months ended September 30, 2024 compared to the Twin Commander aircraft operating for three months ended September 30, 2023.
Previous wording
Total cost of revenues increased by $1.3 million, or 7%, to $19.1 million for the six months ended June 30, 2024, from $17.8 million for the six months ended June 30, 2023.
Current wording
Total cost of revenues increased by $7.0 million, or 44%, to $23.0 million for the three months ended September 30, 2024, from $16.0 million for the three months ended September 30, 2023.
Previous wording
Selling, general and administrative expense decreased by $7.3 million, or 48%, to $7.9 million for the three months ended June 30, 2024, from $15.2 million for the three months ended June 30, 2023. The decrease was primarily attributable to a decrease in the market value of the Warrants of $3.0 million. The decrease was partially attributable to the decrease in stock-based compensation of $2.9 million associated with RSUs issued to senior management and employees of Bridger. The decrease was also partially attributable to a decrease in professional service fees of approximately $0.8 million due to higher costs associated with becoming a public company in January 2023. The remaining decrease is primarily attributable to a loss on disposal of $0.6 million related to an aging surveillance aircraft recorded in the three months ended June 30, 2023.
Current wording
Selling, general and administrative expense decreased by $6.4 million, or 43%, to $8.6 million for the three months ended September 30, 2024, from $15.1 million for the three months ended September 30, 2023. The decrease was primarily attributable to a decrease in the market value of the Warrants of $4.3 million. The decrease was partially attributable to the decrease in stock-based compensation of $3.0 million associated with RSUs issued to senior management and employees of Bridger.
Previous wording
Other income decreased by $0.4 million, or 23%, to $1.3 million for the six months ended June 30, 2024, from Other income of $1.7 million for the six months ended June 30, 2023. The decrease was primarily driven by realized gains on available-for-sale securities of $0.7 million. Refer to “Note 4 – Cash Equivalents and Investment in Marketable Securities” of the Notes to Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report for additional details. The decrease was offset primarily by an increase in dividend income of $0.3 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
Current wording
Other income decreased by $0.1 million, or 16%, to $0.5 million for the three months ended September 30, 2024, from $0.6 million for the three months ended September 30, 2023. The decrease was primarily driven by realized gains on available-for-sale securities of $0.1 million. Refer to “Note 4 – Cash Equivalents and Investment in Marketable Securities” of the Notes to Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report for additional details.
Previous wording
Income tax benefit increased to $0.5 million for the six months ended June 30, 2024, from zero for the six months ended June 30, 2023. The increase was attributable to a discrete benefit generated from the FMS Acquisition during 2024.
Current wording
Income tax benefit decreased by $0.3 million to zero for the three months ended September 30, 2024, from $0.3 million for the nine months ended September 30, 2023. The decrease was driven by a discrete benefit generated from the Ignis Acquisition for the three months ended September 30, 2023.
Previous wording
Comparison of the Six Months Ended June 30, 2024 to the Six Months Ended June 30, 2023
Current wording
Comparison of the Nine Months Ended September 30, 2024 to the Nine Months Ended September 30, 2023
Previous wording
The following table sets forth our unaudited condensed consolidated statements of operations information for the six months ended June 30, 2024 and 2023 and should be reviewed in conjunction with the financial statements and notes included elsewhere in this Quarterly Report.
Current wording
The following table sets forth our unaudited condensed consolidated statements of operations information for the nine months ended September 30, 2024 and 2023 and should be reviewed in conjunction with the financial statements and notes included elsewhere in this Quarterly Report.
Previous wording
Revenues by service offering for the six months ended June 30, 2024 and 2023 were as follows:
Current wording
Revenues by service offering for the nine months ended September 30, 2024 and 2023 were as follows:
Previous wording
Fire suppression revenue increased by $0.9 million, or 9%, to $11.3 million for the six months ended June 30, 2024, from $10.4 million for the six months ended June 30, 2023. The increase was primarily due to an earlier start to the 2024 wildfire season in March and April of 2024, compared to the six months ended June 30, 2023, which led to more aircraft operating for the six months ended June 30, 2024.
Current wording
Fire suppression revenue increased by $5.0 million, or 9%, to $61.6 million for the nine months ended September 30, 2024, from $56.6 million for the nine months ended September 30, 2023. The increase was primarily due to an earlier start to the 2024 wildfire season in March and April of 2024 and increased flight hours for our Super Scoopers, compared to the nine months ended September 30, 2023.
Previous wording
Aerial surveillance revenue increased by $3.0 million, or 265%, to $4.1 million for the six months ended June 30, 2024, from $1.1 million for the six months ended June 30, 2023. The increase was primarily due to the higher rate of the Pilatus aircraft operating for the six months ended June 30, 2024 compared to the Twin Commander aircraft operating for the six months ended June 30, 2023. The increase was partially due to an earlier start to the 2024 wildfire season in March and April of 2024, compared to the six months ended June 30, 2023, which led to more aircraft operating for the six months ended June 30, 2024.
Current wording
Aerial surveillance revenue increased by $3.5 million, or 41%, to $12.0 million for the nine months ended September 30, 2024, from $8.5 million for the nine months ended September 30, 2023. The increase was primarily due to the higher rate of the Pilatus aircraft operating for the nine months ended September 30, 2024 compared to the Twin Commander aircraft operating for the nine months ended September 30, 2023. The increase was partially due to an earlier start to the 2024 wildfire season in March and April of 2024, compared to the nine months ended September 30, 2023, which led to more aircraft operating for the nine months ended September 30, 2024.
Previous wording
Revenues by type for the six months ended June 30, 2024 and 2023 were as follows:
Current wording
Revenues by type for the nine months ended September 30, 2024 and 2023 were as follows:
Previous wording
Flight revenue decreased by $0.4 million, or 7%, to $5.4 million for the six months ended June 30, 2024, from $5.8 million for the six months ended June 30, 2023. The decrease in flight revenue was primarily due to less flight hours for our Super Scoopers in the six months ended June 30, 2024 compared to the six months ended June 30, 2023. In 2023, the Company actively expanded our aerial firefighting operations in Canada. The Company has had no aerial firefighting operations in Canada in 2024.
Current wording
Flight revenue increased by $5.2 million, or 15%, to $39.4 million for the nine months ended September 30, 2024, from $34.1 million for the nine months ended September 30, 2023. The increase in flight revenue was primarily driven by increased flight hours for our Super Scoopers in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. In 2023, the Company actively expanded our aerial firefighting operations in Canada. The Company has had no aerial firefighting operations in Canada in 2024.
Previous wording
Standby revenue increased by $4.8 million, or 94%, to $10.0 million for the six months ended June 30, 2024, from 5.1 million for the six months ended June 30, 2023. The increase was primarily due to the higher rate of the Pilatus aircraft operating for the six months ended June 30, 2024 compared to the Twin Commander aircraft operating for the six months ended June 30, 2023. The increase was also attributable to the early deployment of two Super Scoopers in March and April of 2024.
Current wording
Standby revenue increased by $5.6 million, or 19%, to $35.7 million for the nine months ended September 30, 2024, from 30.1 million for the nine months ended September 30, 2023. The increase was primarily due to the higher rate of the Pilatus aircraft operating for the nine months ended September 30, 2024 compared to the Twin Commander aircraft operating for the nine months ended September 30, 2023. The increase was also attributable to the early deployment of two Super Scoopers in March and April of 2024.
Previous wording
Flight operations expenses increased by $0.1 million, or 1%, to $10.1 million for the six months ended June 30, 2024, from $10.0 million for the six months ended June 30, 2023. The increase was primarily attributable to an increase of employee labor expenses of $0.9 million, an increase in aircraft lease expense of approximately $0.7 million due to two Pilatus operating leases commencing in July 2023 and a Twin Otter operating lease commencing in April 2023, and an increase in training costs of $0.3 million. The increase was partially offset by a decrease of $1.8 million in depreciation expense due to a decrease in flight hours for the Super Scoopers in the six months ended June 30, 2024.
Current wording
Flight operations expenses increased by $5.0 million, or 24%, to $25.2 million for the nine months ended September 30, 2024, from $20.3 million for the nine months ended September 30, 2023. The increase was primarily attributable to an increase in depreciation expense of $2.5 million, an increase in aircraft lease expense of approximately $0.8 million due to two Pilatus operating leases commencing in July 2023 and a Twin Otter operating lease commencing in April 2023, an increase in training costs of $0.6 million, and an increase of employee labor expenses of $0.6 million, in each case for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.
Previous wording
Maintenance expenses increased by $1.2 million, or 16%, to $9.0 million for the six months ended June 30, 2024, from $7.7 million for the six months ended June 30, 2023. The increase was primarily driven by an increase in salaries and wages of $0.6 million, increase in depreciation expense of $0.4 million, and higher subscriptions, licenses, and fees of $0.2 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
Current wording
Maintenance expenses increased by $3.4 million, or 25%, to $16.8 million for the nine months ended September 30, 2024, from $13.5 million for the nine months ended September 30, 2023. The increase was primarily driven by an increase in aircraft maintenance and modification expense of $1.3 million, an increase depreciation expense of $1.0 million, an increase in salaries and wages of $0.8 million, and an increase subscriptions, licenses, and fees of $0.3 million, in each case for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.
Previous wording
Selling, general and administrative expense decreased by $28.9 million, or 60%, to $19.5 million for the six months ended June 30, 2024, from $48.4 million for the six months ended June 30, 2023. The decrease was primarily attributable to the decrease in stock-based compensation of $22.8 million primarily associated with the immediate vesting of RSUs issued to executives and senior management of Bridger in connection with the Reverse Recapitalization in January 2023. The remaining decrease is partially attributable to a decrease in professional service fees of $2.0 million due to higher costs associated with becoming a public company in the first six months of 2023 and a decrease in the market value of the Warrants of $1.7 million.
Current wording
Selling, general and administrative expense decreased by $35.3 million, or 56%, to $28.2 million for the nine months ended September 30, 2024, from $63.5 million for the nine months ended September 30, 2023. The decrease was primarily attributable to the decrease in stock-based compensation of $25.9 million primarily associated with the immediate vesting of RSUs issued to executives and senior management of Bridger in connection with the Reverse Recapitalization in January 2023. The remaining decrease is partially attributable to a decrease in the market value of the Warrants of $6.0 million and a decrease in professional service fees of $2.2 million due to higher costs associated with becoming a public company in the first nine months of 2023.
Previous wording
Interest expense increased by $0.6 million, or 5%, to $11.8 million for the six months ended June 30, 2024, from $11.2 million for the six months ended June 30, 2023. The increase was primarily driven by lower capitalized interest associated with the financing of the construction of fixed assets for the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
Current wording
Interest expense increased by $0.6 million, or 3%, to $17.8 million for the nine months ended September 30, 2024, from $17.2 million for the nine months ended September 30, 2023. The increase was primarily driven by lower capitalized interest associated with the financing of the construction of fixed assets for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.
Previous wording
Other income decreased by $0.5 million, or 76%, to $0.1 million for the three months ended June 30, 2024, from $0.6 million for the three months ended June 30, 2023. The decrease was primarily driven by realized gains from available-for-sale securities of $0.3 million. Refer to “Note 4 – Cash Equivalents and Investment in Marketable Securities” of the Notes to Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report for additional details. The decrease was also partially attributable to interest income for the embedded derivative of Legacy Bridger Series C Preferred Shares of $0.2 million. Refer to “Note 17 – Mezzanine Equity” of the Notes to Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report for additional details.
Current wording
Other income decreased by $0.5 million, or 21%, to $1.8 million for the nine months ended September 30, 2024, from Other income of $2.3 million for the nine months ended September 30, 2023. The decrease was primarily attributable to interest income for the embedded derivative of Legacy Bridger Series C Preferred Shares of $1.2 million. Refer to “Note 17 – Mezzanine Equity” of the Notes to Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report for additional details. The decrease was offset primarily by an increase in interest income of $0.6 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.
Previous wording
Income tax benefit increased to $0.5 million for the three months ended June 30, 2024, from zero for the three months ended June 30, 2023. The increase was attributable to a discrete benefit generated from the FMS Acquisition during 2024.
Current wording
Income tax benefit increased by $0.2 million, or 50%, to $0.5 million for the nine months ended September 30, 2024, from $0.3 million for the nine months ended September 30, 2023. The increase was attributable to a discrete benefit generated from the FMS Acquisition during 2024.
Previous wording
Each of the profitability measures described below are not recognized under GAAP and do 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 should not be considered 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. Our 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.
Current wording
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 should not be considered 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. Our 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.
Previous wording
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 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).
Current wording
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).
Previous wording
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 certain costs that are required to be expensed in accordance with GAAP, including non-cash stock-based compensation, business development and integration expenses, offering costs, gain on disposal of fixed assets, non-cash adjustments to the fair value of earnout consideration, and non-cash adjustments to the fair value of Warrants issued in connection with the Reverse Recapitalization. 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.
Current wording
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 certain costs that are required to be expensed in accordance with GAAP, including non-cash stock-based compensation, business development and integration expenses, offering costs, gains and losses on disposal of fixed assets, non-cash adjustments to the fair value of earnout consideration, and non-cash adjustments to the fair value of Warrants issued in connection with the Reverse Recapitalization. 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.
Previous wording
The reconciliation of Net loss, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA for the three months ended June 30, 2024 and 2023 is as follows:
Current wording
The reconciliation of Net income, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA for the three months ended September 30, 2024 and 2023 is as follows:
Previous wording
2 Represents expenses related to potential acquisition targets and additional business lines.
Current wording
2 Represents expenses related to integration costs for completed acquisitions and expenses related to potential acquisition targets and additional business lines.
Previous wording
3 Represents non-cash fair value adjustment for earnout consideration issued in connection with the acquisition of Ignis Technologies, Inc.
Current wording
3 Represents non-cash fair value adjustment for earnout consideration issued in connection with the acquisitions of Ignis Technologies, Inc. and Flight Test & Mechanical Solutions, Inc.
Previous wording
7 Net loss margin calculated as Net loss divided by Total revenue and Adjusted EBITDA margin calculated as Adjusted EBITDA divided by Total revenue.
Current wording
6 Net income margin calculated as Net income divided by Total revenue and Adjusted EBITDA margin calculated as Adjusted EBITDA divided by Total revenue.
Previous wording
The reconciliation of Net loss, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA for the six months ended June 30, 2024 and 2023 is as follows:
Current wording
The reconciliation of Net loss, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA for the nine months ended September 30, 2024 and 2023 is as follows:
Previous wording
2 Represents expenses related to potential acquisition targets and additional business lines.
Current wording
2 Represents expenses related to integration costs for completed acquisitions and expenses related to potential acquisition targets and additional business lines.
Previous wording
3 Represents non-cash fair value adjustment for earnout consideration issued in connection with the acquisition of Ignis Technologies, Inc.
Current wording
3 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.
Previous wording
For the six months ended June 30, 2024, the Company had an operating loss of $20.1 million, net loss of $30.1 million and cash flow used in operating activities of $22.6 million. In addition, as of June 30, 2024, the Company had unrestricted cash and investments of $8.5 million.
Current wording
For the nine months ended September 30, 2024, the Company had an operating income of $12.8 million, net loss of $2.7 million and cash flow provided by operating activities of $0.2 million. In addition, as of September 30, 2024, the Company had unrestricted cash and investments of $33.3 million.
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Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Interest expense increased by $0.3 million, or 6%, to $5.9 million for the three months ended June 30, 2024, from $5.5 million for the three months ended June 30, 2023. The increase was primarily driven by lower capitalized interest associated with the financing of the construction of fixed assets for the three months ended June 30, 2024 compared to the three months ended June 30, 2023.
Previous report — wording carried elsewhere
6 Represents loss on the disposal of an aging aircraft and the non-cash impairment charges on a retired aircraft.