Bridger Aerospace Group Holdings, Inc. Q2 FY2024 earnings call

• Sam Davis provided background on his tenure at Bridger and recent CEO transition.
• Second quarter activity moderated but they secured exclusive-use task orders for aircraft, extended MMA task orders, and Daher Kodiak 100s are under exclusive-use task orders.
• Acquired FMS Aerospace on June 28, 2024, which is equity-only, generates ~$10.5M revenue annually, and is expected to be accretive to earnings.
• International expansion into Spain is on schedule with Spanish subsidiary Albacete Aero overseeing return to service work on four Super Scoopers for 2025 fire season.
• Launched Ignis Technologies mobile app for wildland firefighters, with free and paid versions, and exploring integration with aerial surveillance technology.
• Third quarter wildfire season remains active with continued demand for aerial surveillance and suppression services.

In the second quarter of 2024, revenue was $13 million, up 12% from $11.6 million in the second quarter of 2023. Revenue benefited from $1.8 million related to return-to-service work on Spanish Super Scoopers. Cost of revenues was $9.9 million, down 6% from $10.5 million in the prior year. For the first six months of 2024, revenue was $18.5 million compared to $12 million in the first six months of 2023. Cost of revenues for the first six months of 2024 was $19.1 million, and SG&A expenses were $19.5 million compared to $48.4 million in the first six months of 2023.

• Adjusted EBITDA is expected to be $35 million to $51 million on revenue of $70 million to $86 million for 2024, consistent with prior guidance.
• International expansion into Spain is on schedule and expected to provide operational and revenue growth in future years.
• Will fine-tune the guidance range after reporting third quarter results in November.

Q: Talk about Bridger's cash needs and estimated upgrade costs for the four Spanish Super Scoopers.

A: Bridger's operating cash flow is positive, with cash collections in Q3 expected to sustain operations until next fire season. Return to service budget for Spanish Scoopers is factored into the deal with Marathon and Avenue, and they're on budget and on time.

Q: Will the Ignis contracts be won at federal, state, or local level?

A: Over mostly at the state and local level, with plan to land larger federal contracts as the application is built out.

Q: Ballpark estimate on subscription pricing for Ignis app?

A: Working on optimizing pricing, with introductory pricing to build out and scale based on features, functionality, and user base