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Bridger Aerospace refutes political accusations of financial instability

EditorNatashya Angelica
Published 20/05/2024, 18:48
BAER
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BELGRADE, Mont. - Bridger Aerospace Group Holdings, Inc. (NASDAQ: BAER, BAERW), a leading American aerial firefighting company, today addressed recent negative media coverage questioning its financial health, which the company attributes to politically-driven attacks.

The company clarified that its reported net loss in 2023 was significantly impacted by non-cash, stock-based compensation expenses, which were part of equity grants to its employees, aligning with the company's philosophy of employee ownership.

The company also emphasized that the net loss included one-off costs related to becoming a public company and investments in its fleet, which it views as crucial for its long-term health. Bridger Aerospace pointed out the seasonal nature of its business, with higher earnings typically in the second and third quarters, coinciding with peak wildfire season, and lower earnings in the off-season when fleet maintenance occurs and revenue is reduced.

Despite the criticism, Bridger Aerospace highlighted its significant contribution to the Montana economy since its founding by veterans in 2014. The company has created hundreds of jobs, generated substantial revenue for the state, and actively engaged in community service. Bridger reported its highest revenue to date in 2023, amounting to $67 million, along with its largest operating geography and adjusted EBITDA.

The company recently celebrated the first anniversary of its NASDAQ listing and is currently engaged in combating wildfires, including the Smokehouse Creek Fire in Texas. Bridger Aerospace is optimistic about its 2024 outlook, with expectations for a record year and a projected adjusted EBITDA of $35 million to $51 million.

Bridger Aerospace, based in Belgrade, Montana, stands as one of the nation's largest aerial firefighting companies, serving federal and state agencies, including the United States Forest Service, and offering its services internationally.

This news article is based on a press release statement from Bridger Aerospace Group Holdings, Inc.

InvestingPro Insights

Bridger Aerospace Group Holdings, Inc. (NASDAQ: BAER, BAERW) has been navigating a challenging financial landscape, as indicated by several metrics and InvestingPro Tips. The company's market capitalization stands at a modest $202.1M, reflecting investor sentiment and the size of the company in the broader market.

Despite Bridger Aerospace's optimistic outlook for 2024, with expectations for a record year, there are concerns about its profitability. Over the last twelve months, the company has not been profitable, which is a point of consideration for investors looking at the long-term viability of the company.

InvestingPro Tips suggest that Bridger Aerospace may face difficulties in making interest payments on its debt, a situation that can be exacerbated if the company continues to operate at a loss. Moreover, the stock has seen a decline over the last month, with a price total return of -14.78%. This underperformance is part of a broader trend, with the stock falling by -19.42% over the last three months, potentially indicating market skepticism about the company's financial recovery.

On a positive note, Bridger Aerospace has reported a significant revenue growth of 53.91% over the last twelve months as of Q1 2024, a testament to the company's ability to increase sales. Still, this growth is juxtaposed with a high revenue valuation multiple, suggesting that the stock might be trading at a premium compared to its actual revenue generation capacity. Investors might want to exercise caution and consider whether the company's growth prospects justify the current valuation.

For those looking for more detailed analysis and additional InvestingPro Tips, Bridger Aerospace's profile on InvestingPro offers 3 more tips that could provide further insights into the company's financial health and stock performance. Interested readers can find this information at https://www.investing.com/pro/BAER and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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