Blade Air Mobility Inc.
11/12/2024 | Press release | Distributed by Public on 11/12/2024 06:09
Blade Air Mobility Announces Third Quarter 2024 Results
Blade Air Mobility Announces Third Quarter 2024 Results
Download as PDF November 12, 2024 7:00am EST
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Operating Cash Flow increased by $4.3 million to $6.4 million in Q3 2024; Free Cash Flow, Before Aircraft Acquisitions, increased by $2.4 million to $3.7 million in Q3 2024(1)
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Medical Segment Adjusted EBITDA improved 15.1% in Q3 2024 versus the prior year
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Passenger Segment Adjusted EBITDA increased by $2.8 million and we achieved trailing twelve month Segment Adjusted EBITDA profitability in Q3 2024, well ahead of previous guidance for full-year profitability by the end of 2025
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Net loss increased by $2.2 million versus the prior year to $(2.0) million in Q3 2024; Adjusted EBITDA improved by $3.4 million versus the prior year to $4.2 million in Q3 2024(1)
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Reaffirming guidance for positive Adjusted EBITDA in 2024 and double-digit millions of Adjusted EBITDA in 2025(2)
- Announced strategic alliance with OrganOx, utilizing Blade logistics to enable rapid deployment of their metra perfusion device to transplant centers across the United States
NEW YORK, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Blade Air Mobility, Inc. (Nasdaq: BLDE, "Blade" or the "Company"), today announced financial results for the third quarter ended September 30, 2024.
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GAAP FINANCIAL RESULTS (in thousands except percentages, unaudited) |
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| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||||
| Revenue | $ | 74,877 | $ | 71,442 | 4.8 | % | $ | 194,336 | $ | 177,702 | 9.4 | % | ||||||||||
| Cost of revenue | $ | 55,040 | $ | 55,863 | (1.5) | % | $ | 148,006 | $ | 144,590 | 2.4 | % | ||||||||||
| Software development | 800 | 1,076 | (25.7) | % | 2,441 | 3,639 | (32.9) | % | ||||||||||||||
| General and administrative | 20,412 | 19,265 | 6.0 | % | 62,757 | 53,932 | 16.4 | % | ||||||||||||||
| Selling and marketing | 2,162 | 2,686 | (19.5) | % | 6,686 | 8,025 | (16.7) | % | ||||||||||||||
| Total operating expenses | $ | 78,414 | $ | 78,890 | (0.6) | % | $ | 219,890 | $ | 210,186 | 4.6 | % | ||||||||||
| Loss from operations | $ | (3,537 | ) | $ | (7,448 | ) | (52.5) | % | $ | (25,554 | ) | $ | (32,484 | ) | (21.3) | % | ||||||
| Net (loss) income | $ | (1,954 | ) | $ | 289 | NM(3) | $ | (17,514 | ) | $ | (22,135 | ) | (20.9) | % | ||||||||
| Gross profit | $ | 14,438 | $ | 10,043 | 43.8 | % | $ | 31,626 | $ | 18,353 | 72.3 | % | ||||||||||
| Gross margin | 19.3 | % | 14.1 | % | 520bps | 16.3 | % | 10.3 | % | 600bps |
(1) See "Use of Non-GAAP Financial Measures" and "Key Metrics and Non-GAAP Financial Information" sections attached to this release for an explanation of Non-GAAP measures used and reconciliations to the most directly comparable GAAP financial measure.
(2) We have not reconciled the forward-looking Adjusted EBITDA guidance included above to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are incentive compensation (including stock-based compensation), transaction-related expenses, certain fair value measurements, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.
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NON-GAAP(1)FINANCIAL RESULTS (in thousands except percentages, unaudited) |
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| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | % Change | |||||||||||||||||
| Revenue | $ | 74,877 | $ | 71,442 | 4.8 | % | $ | 194,336 | $ | 177,702 | 9.4 | % | ||||||||||
| Cost of revenue | 55,040 | 55,863 | (1.5)% | 148,006 | 144,590 | 2.4 | % | |||||||||||||||
| Flight Profit(2) | 19,837 | 15,579 | 27.3 | % | 46,330 | 33,112 | 39.9 | % | ||||||||||||||
| Flight Margin | 26.5 | % | 21.8 | % | 469bps | 23.8 | % | 18.6 | % | 521bps | ||||||||||||
| Adjusted SG&A | 16,169 | 14,863 | 8.8 | % | 45,771 | 44,651 | 2.5 | % | ||||||||||||||
| Depreciation and amortization included in cost of revenue | 512 | 71 | NM(3) | 1,033 | 154 | NM(3) | ||||||||||||||||
| Adjusted EBITDA | $ | 4,180 | $ | 787 | 431.1 | % | $ | 1,592 | $ | (11,385 | ) | NM(3) | ||||||||||
| Adjusted EBITDA as a percentage of Revenue | 5.6 | % | 1.1 | % | 448bps | 0.8 | % | (6.4)% | 723bps | |||||||||||||
| Passenger Adjusted EBITDA | $ | 5,593 | $ | 2,777 | 101.4 | % | $ | 3,724 | $ | (2,353 | ) | NM(3) | ||||||||||
| Medical Adjusted EBITDA | $ | 3,851 | $ | 3,346 | 15.1 | % | $ | 13,784 | $ | 8,249 | 67.1 | % | ||||||||||
| Adjusted unallocated corporate expenses and software development | $ | (5,264 | ) | $ | (5,336 | ) | (1.3)% | $ | (15,916 | ) | $ | (17,281 | ) | (7.9)% |
(1) See "Use of Non-GAAP Financial Measures" and "Key Metrics and Non-GAAP Financial Information" sections attached to this release for an explanation of Non-GAAP measures used and reconciliations to the most directly comparable GAAP financial measure.
(2) Includes $512 and $71 of depreciation and amortization for owned aircraft and vehicles in the three months ended September 30, 2024 and 2023, respectively and $1,033 and $154 in the nine months ended September 30, 2024 and 2023, respectively.
(3) Not meaningful.
"We reached an important milestone this quarter in our Passenger Business, achieving positive Segment Adjusted EBITDA on a trailing twelve month basis, more than a year ahead of our investor guidance to turn profitable by the end of 2025," said Rob Wiesenthal, Blade's Chief Executive Officer. "Beyond the strength in underlying customer demand, several factors contributed to the faster path to profitability including actions we've taken to exit unprofitable business lines rapidly, early benefits from the recent restructuring of our European operations and implementation of segment-wide cost savings."
Wiesenthal added, "Blade's vertical transportation platform is now stronger than ever and we believe we are better positioned for the transition to Electric Vertical Aircraft ("EVA" or "eVTOL") than any other Urban Air Mobility company. Given the FAA's recent release of the necessary guidelines for future operations as well as the incoming administration's stated agenda of achieving adoption ahead of other countries, we believe the timeline for this transition has greater clarity."
"We're pleased to see great conversion of Adjusted EBITDA to Free Cash Flow, Before Aircraft Acquisitions, which improved to $3.7 million in Q3 2024, approximately three times the prior year period, demonstrating the cash benefits of our drive to Passenger profitability and the growth in Medical," said Will Heyburn, Chief Financial Officer. "Medical Segment Adjusted EBITDA improved 15.1% with margins expanding 70 basis points in Q3 2024 versus the prior year, despite a softer than expected Q3 for US organ transplant volumes. Regardless, October was one of the highest revenue months for Medical in company history and we continue to take market share, including two recent customer wins for high-volume transplant centers that we expect to begin flying in the coming months."
Heyburn added, "We are also excited to announce a strategic alliance with OrganOx to broaden access to their metra perfusion device. We know from speaking with our customers that demand for metra currently exceeds the supply of available machines. This partnership will enable higher utilization of available metra devices through rapid distribution, utilizing Blade's air and ground logistics, to transplant centers who need them on a case-by-case basis."
"During the quarter, we acquired two additional aircraft which we expect to enter service by early 2025, bringing our owned fleet to ten," said Melissa Tomkiel, President. "Our aircraft ownership strategy is already bearing fruit, enabling us to win new medical contracts in recent months that required asset ownership. However, lower medical flight volumes in Q3 led to negative operating leverage while above average expenses on our owned aircraft fleet, including entry into service delays, did lead to lower Medical Segment Adjusted EBITDA margins in Q3 2024 versus Q2 2024. Though quarter to quarter lumpiness in volumes and maintenance expenses may happen from time to time, we have already seen a normalization in the performance of our owned fleet Q4 to date."
Third Quarter Ended September 30, 2024 Financial Highlights
- Total revenue increased 4.8% to $74.9 million in the current quarter versus $71.4 million in the prior year period, driven primarily by growth in Medical and Short Distance partially offset by Jet and Other.
- Flight Profit(1) increased 27.3% to $19.8 million in the current quarter versus $15.6 million in the prior year period, driven by strong growth in both the Medical and Passenger segments.
- Flight Margin(1) improved to 26.5% in the current quarter from 21.8% in the prior year period, driven primarily by a strong summer season in the Northeast, improved profitability in New York Airport and benefits from restructuring actions taken in Europe and Canada in Passenger.
- Medical revenue increased 7.8% to $36.1 million in the current quarter versus $33.4 million in the prior year period. Medical revenue decreased (5.9)% sequentially versus Q2 2024 driven primarily by air trip volume that declined in line with industry transplant volumes, and a reduction in block hours per air trip as we increased the size of our dedicated fleet and positioned these aircraft closer to our largest hospital clients. This strategy reduces empty leg repositioning, improving outcomes and increasing economic efficiency for our customers while fortifying our value proposition to hospitals and making many other operators uncompetitive in these regions.
- Short Distance revenue increased 6.5% to $32.4 million in the current quarter versus $30.4 million in the prior year period. Excluding Canada, which was discontinued, Short Distance revenue increased 9.8% versus the prior year period. The increase was primarily driven by Northeast Leisure, Other Short Distance and New York Airport.
- Jet and Other revenue decreased 15.0% to $6.5 million in the current quarter versus $7.6 million in the prior year period driven by a decline in revenue per flight as charter industry pricing normalized.
- Net loss increased by $2.2 million versus the prior year to $(2.0) million in Q3 2024 driven primarily by a $6.0 million decrease in non-cash income from change in fair value of warrant liability, partially offset by a $3.9 million reduced loss from operations.
- Adjusted EBITDA(1) improved by $3.4 million year-over-year to $4.2 million in the current quarter versus $0.8 million in the prior year period, primarily due to a $2.8 million improvement in Passenger Segment Adjusted EBITDA in the quarter. Medical Segment Adjusted EBITDA increased $0.5 million year-over-year and Adjusted Unallocated Corporate Expenses and Software Development decreased (1.3)% versus the prior year period.
- Operating Cash Flow increased by $4.3 million to $6.4 million in Q3 2024. Capital expenditures of $9.9 million were driven primarily by the $7.3 million purchase of aircraft in the Medical segment. Free Cash Flow, Before Aircraft Acquisitions, which is net of all capital expenditures, including aircraft maintenance expenses, but excludes the impact of aircraft acquisitions, increased by $2.4 million to $3.7 million in Q3 2024.
- Ended Q3 2024 with $136.3 million in cash and short term investments.
Business Highlights and Recent Updates
- Announced strategic alliance with OrganOx to broaden access to OrganOx's metra normothermic machine perfusion device. The metra device extends liver preservation times, aiding the identification of viable donor livers, enabling longer-distance transportation and increasing the utilization of donor organs. OrganOx will preposition metra devices at strategic locations across the United States, utilizing air and ground logistics from Blade's wholly-owned subsidiary, Trinity Medical, to enable rapid deployment to transplant centers.
- Seven of the eight previously announced aircraft acquisitions operated in Q3 2024, with the eighth aircraft entering service in October. We signed agreements to acquire two additional aircraft during Q3 2024 that are expected to enter service by early 2025. With a fleet size of ten, our owned fleet will only represent approximately one third of our Medical flying hours with the majority remaining on third-party aircraft.
- Medical's organ placement service offering ("TOPS") continues to gain market share with five contracted customers today and a strong sales pipeline.
- Completed an acquisition in Medical that expands our captive ground network and fleet of vehicles that will enable us to better serve our New York area customers.
- Restructured our European operations which is expected to improve profitability and enable stronger organizational and commercial alignment with our local partner.
- Completed exit from Canada in our Passenger business.
(1) See "Use of Non-GAAP Financial Measures" and "Key Metrics and Non-GAAP Financial Information" sections attached to this release for an explanation of Non-GAAP measures used and reconciliations to the most directly comparable GAAP financial measure.
Financial Outlook(1)
For the full year 2024, we expect:
- Revenue of $240 million to $250 million
- Positive Adjusted EBITDA
For the full year 2025, we expect:
- Double-digit Medical revenue growth
- Passenger revenue of $85 million to $95 million
- Double-digit millions of Adjusted EBITDA
Conference Call
The Company will conduct a conference call starting at 8:00 a.m. ET on Tuesday, November 12, 2024 to discuss the results for the third quarter ended September 30, 2024.
A live audio-only webcast of the call may be accessed from the Investor Relations section of the Company's website at https://ir.blade.com/. An archived replay of the call will be available on the Investor Relations section of the Company's website for one year.
(1) We have not reconciled the forward-looking Adjusted EBITDA guidance included above to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are incentive compensation (including stock-based compensation), transaction-related expenses, certain fair value measurements, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.
Use of Non-GAAP Financial Information
Blade believes that the non-GAAP measures discussed below, viewed in addition to and not in lieu of our reported U.S. Generally Accepted Accounting Principles ("GAAP") results, provide useful information to investors by providing a more focused measure of operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies. Adjusted EBITDA, Adjusted Unallocated Corporate Expenses, SG&A, Adjusted SG&A, Flight Profit, Flight Margin, Free Cash Flow and Free Cash Flow, before Aircraft Acquisitions have been reconciled to the nearest GAAP measure in the tables within this press release.
Adjusted EBITDA - Blade reports Adjusted EBITDA, which is a non-GAAP financial measure. Blade defines Adjusted EBITDA as net loss adjusted to exclude depreciation and amortization, stock-based compensation, change in fair value of warrant liabilities, interest income and expense, income tax, realized gains and losses on short-term investments, impairment of intangible assets and certain other non-recurring items that management does not believe are indicative of ongoing Company operating performance and would impact the comparability of results between periods.
Adjusted Unallocated Corporate Expenses - Blade defines Adjusted Unallocated Corporate Expenses as expenses that cannot be allocated to either of our reporting segments (Passenger and Medical) and therefore attributable to our Corporate expenses and software development, less non-cash items and certain other non-recurring items that management does not believe are indicative of ongoing Company operating performance and would impact the comparability of results between periods.
SG&A and Adjusted SG&A - Blade defines SG&A as total operating expenses excluding cost of revenue. Blade defines Adjusted SG&A as total operating expenses excluding cost of revenue and excluding non-cash items and certain other non-recurring items that management does not believe are indicative of ongoing Company operating performance and would impact the comparability of results between periods.
Flight Profit and Flight Margin - Blade defines Flight Profit as revenue less cost of revenue. Cost of revenue consists of flight costs paid to operators of aircraft and vehicles, landing fees, depreciation of aircraft and vehicles, right-of-use ("ROU") asset amortization, internal costs incurred in generating organ ground transportation revenue using the Company's owned vehicles and costs of operating our owned aircraft including fuel, management fees paid to the operator, maintenance costs and pilot salaries. Blade defines Flight Margin for a period as Flight Profit for the period divided by revenue for the same period. Blade believes that Flight Profit and Flight Margin provide an important measure of the profitability of the Company's flight and ground operations, as they focus solely on the non discretionary direct costs associated with those operations such as third party variable costs and costs of owning and operating Blade's owned aircraft.
Free Cash Flow and Free Cash Flow, before Aircraft Acquisitions - Blade defines Free Cash Flow as net cash provided by / (used in) operating activities less capital expenditures and capitalized software development costs. Blade also reports Free Cash Flow, before Aircraft Acquisitions, which is Free Cash Flow excluding cash outflows for aircraft acquisitions. Blade believes that Free Cash Flow and Free Cash Flow, before Aircraft Acquisitions provide important insights into the cash-generating capability of the business, with Free Cash Flow, before Aircraft Acquisition specifically highlighting the cash generated by our core operations before the impact of discretionary strategic investments in new aircraft.
Financial Results
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BLADE AIR MOBILITY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data, unaudited) |
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September 30, 2024 |
December 31, 2023 |
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| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 20,028 | $ | 27,873 | |||
| Restricted cash | 1,378 | 1,148 | |||||
| Accounts receivable, net of allowance of $224 and $98 at September 30, 2024 and December 31, 2023, respectively | 24,481 | 21,005 | |||||
| Short-term investments | 116,310 | 138,264 | |||||
| Prepaid expenses and other current assets | 9,563 | 17,971 | |||||
| Total current assets | 171,760 | 206,261 | |||||
| Non-current assets: | |||||||
| Property and equipment, net | 30,550 | 2,899 | |||||
| Intangible assets, net | 13,957 | 20,519 | |||||
| Goodwill | 42,952 | 40,373 | |||||
| Operating right-of-use asset | 22,813 | 23,484 | |||||
| Other non-current assets | 913 | 1,402 | |||||
| Total assets | $ | 282,945 | $ | 294,938 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 16,028 | $ | 23,859 | |||
| Deferred revenue | 6,681 | 6,845 | |||||
| Operating lease liability, current | 4,472 | 4,787 | |||||
| Total current liabilities | 27,181 | 35,491 | |||||
| Non-current liabilities: | |||||||
| Warrant liability | 2,692 | 4,958 | |||||
| Operating lease liability, long-term | 19,271 | 19,738 | |||||
| Deferred tax liability | 302 | 451 | |||||
| Total liabilities | 49,446 | 60,638 | |||||
| Stockholders' Equity | |||||||
| Preferred stock, $0.0001 par value, 2,000,000 shares authorized; no shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively | - | - | |||||
| Common stock, $0.0001 par value; 400,000,000 authorized; 78,314,023 and 75,131,425 shares issued at September 30, 2024 and December 31, 2023, respectively | 7 | 7 | |||||
| Additional paid in capital | 406,424 | 390,083 | |||||
| Accumulated other comprehensive income | 4,173 | 3,964 | |||||
| Accumulated deficit | (177,105 | ) | (159,754 | ) | |||
| Total stockholders' equity | 233,499 | 234,300 | |||||
| Total Liabilities and Stockholders' Equity | $ | 282,945 | $ | 294,938 |
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BLADE AIR MOBILITY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data, unaudited) |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 74,877 | $ | 71,442 | $ | 194,336 | $ | 177,702 | ||||||||
| Operating expenses | ||||||||||||||||
| Cost of revenue | 55,040 | 55,863 | 148,006 | 144,590 | ||||||||||||
| Software development | 800 | 1,076 | 2,441 | 3,639 | ||||||||||||
| General and administrative | 20,412 | 19,265 | 62,757 | 53,932 | ||||||||||||
| Selling and marketing | 2,162 | 2,686 | 6,686 | 8,025 | ||||||||||||
| Total operating expenses | 78,414 | 78,890 | 219,890 | 210,186 | ||||||||||||
| Loss from operations | (3,537 | ) | (7,448 | ) | (25,554 | ) | (32,484 | ) | ||||||||
| Other non-operating income (expense) | ||||||||||||||||
| Interest income | 1,764 | 2,147 | 5,624 | 6,178 | ||||||||||||
| Change in fair value of warrant liabilities | (299 | ) | 5,719 | 2,266 | 3,823 | |||||||||||
| Realized loss from sales of short-term investments | - | - | - | (95 | ) | |||||||||||
| Total other non-operating income | 1,465 | 7,866 | 7,890 | 9,906 | ||||||||||||
| (Loss) income before income taxes | (2,072 | ) | 418 | (17,664 | ) | (22,578 | ) | |||||||||
| Income tax (benefit) expense | (118 | ) | 129 | (150 | ) | (443 | ) | |||||||||
| Net (loss) income | $ | (1,954 | ) | $ | 289 | $ | (17,514 | ) | $ | (22,135 | ) | |||||
| Net (loss) income per share: | ||||||||||||||||
| Basic | $ | (0.03 | ) | $ | - | $ | (0.23 | ) | $ | (0.30 | ) | |||||
| Diluted | $ | (0.03 | ) | $ | - | $ | (0.23 | ) | $ | (0.30 | ) | |||||
| Weighted-average number of shares outstanding: | ||||||||||||||||
| Basic | 78,044,254 | 74,139,422 | 77,151,361 | 73,108,263 | ||||||||||||
| Diluted | 78,044,254 | 81,006,859 | 77,151,361 | 73,108,263 |
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BLADE AIR MOBILITY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Cash Flows From Operating Activities: | |||||||||||||||
| Net (loss) income | $ | (1,954 | ) | $ | 289 | $ | (17,514 | ) | $ | (22,135 | ) | ||||
| Adjustments to reconcile net loss to net cash and restricted cash used in operating activities: | |||||||||||||||
| Depreciation and amortization | 1,279 | 1,843 | 4,432 | 5,305 | |||||||||||
| Stock-based compensation | 5,402 | 3,330 | 15,367 | 9,348 | |||||||||||
| Change in fair value of warrant liabilities | 299 | (5,719 | ) | (2,266 | ) | (3,823 | ) | ||||||||
| Excess of lease liability over operating right-of-use assets | - | - | (123 | ) | - | ||||||||||
| Gain on lease modification | (22 | ) | - | (75 | ) | - | |||||||||
| Realized loss from sales of short-term investments | - | - | - | 95 | |||||||||||
| Realized foreign exchange loss | (4 | ) | 1 | - | 6 | ||||||||||
| Accretion of interest income on held-to-maturity securities | (823 | ) | (1,692 | ) | (3,120 | ) | (4,716 | ) | |||||||
| Deferred tax (benefit) expense | (118 | ) | 129 | (150 | ) | (443 | ) | ||||||||
| Impairment of intangible assets | - | - | 5,759 | - | |||||||||||
| Gain on disposal of property and equipment | (6 | ) | - | (6 | ) | - | |||||||||
| Bad debt expense | (34 | ) | 171 | 168 | 171 | ||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||
| Prepaid expenses and other current assets | 2,354 | 1,521 | 8,312 | (1,104 | ) | ||||||||||
| Accounts receivable | 3,356 | 1,251 | (3,611 | ) | (10,379 | ) | |||||||||
| Other non-current assets | 26 | 16 | 492 | (8 | ) | ||||||||||
| Operating right-of-use assets/lease liabilities | 42 | 44 | 81 | 421 | |||||||||||
| Accounts payable and accrued expenses | (811 | ) | 3,999 | (8,336 | ) | 4,086 | |||||||||
| Deferred revenue | (2,631 | ) | (3,160 | ) | (177 | ) | 147 | ||||||||
| Net cash provided by / (used in) operating activities | 6,355 | 2,023 | (767 | ) | (23,029 | ) | |||||||||
| Cash Flows From Investing Activities: | |||||||||||||||
| Acquisitions, net of cash acquired | (2,230 | ) | - | (2,230 | ) | - | |||||||||
| Capitalized software development costs | (604 | ) | - | (1,660 | ) | - | |||||||||
| Purchase of property and equipment | (9,313 | ) | (695 | ) | (26,292 | ) | (2,085 | ) | |||||||
| Proceeds from disposal of property and equipment | 6 | - | 6 | - | |||||||||||
| Purchase of short-term investments | - | - | - | (135 | ) | ||||||||||
| Proceeds from sales of short-term investments | - | - | - | 20,532 | |||||||||||
| Purchase of held-to-maturity investments | (65,715 | ) | (135,690 | ) | (142,766 | ) | (265,835 | ) | |||||||
| Proceeds from maturities of held-to-maturity investments | 65,210 | 133,350 | 167,950 | 264,537 | |||||||||||
| Net cash (used in) / provided by investing activities | (12,646 | ) | (3,035 | ) | (4,992 | ) | 17,014 | ||||||||
| Cash Flows From Financing Activities: | |||||||||||||||
| Proceeds from the exercise of common stock options | 11 | 9 | 124 | 63 | |||||||||||
| Taxes paid related to net share settlement of equity awards | (742 | ) | (15 | ) | (1,765 | ) | (116 | ) | |||||||
| Repurchase and retirement of common stock | - | - | (244 | ) | - | ||||||||||
| Net cash used in financing activities | (731 | ) | (6 | ) | (1,885 | ) | (53 | ) | |||||||
| Effect of foreign exchange rate changes on cash balances | 62 | (101 | ) | 29 | (81 | ) | |||||||||
| Net decrease in cash and cash equivalents and restricted cash | (6,960 | ) | (1,119 | ) | (7,615 | ) | (6,149 | ) | |||||||
| Cash and cash equivalents and restricted cash - beginning | 28,366 | 39,393 | 29,021 | 44,423 | |||||||||||
| Cash and cash equivalents and restricted cash - ending | $ | 21,406 | $ | 38,274 | $ | 21,406 | $ | 38,274 | |||||||
| Reconciliation to the unaudited interim condensed consolidated balance sheets | |||||||||||||||
| Cash and cash equivalents | $ | 20,028 | $ | 36,815 | $ | 20,028 | $ | 36,815 | |||||||
| Restricted cash | 1,378 | 1,459 | 1,378 | 1,459 | |||||||||||
| Total cash, cash equivalents and restricted cash | $ | 21,406 | $ | 38,274 | $ | 21,406 | $ | 38,274 | |||||||
| Non-cash investing and financing activities | |||||||||||||||
| New leases under ASC 842 entered into during the period(1) | $ | 2,187 | $ | 1,608 | $ | 8,545 | $ | 8,920 | |||||||
| Common stock issued for settlement of earn-out previously in accounts payable and accrued expenses(1) | - | - | 3,022 | 1,785 | |||||||||||
| Purchases of PPE and capitalized software in accounts payable and accrued expenses | (154 | ) | - | 3,479 | - | ||||||||||
| Derecognition of ROU assets | - | - | (6,367 | ) | - | ||||||||||
| Derecognition of lease liabilities | - | - | 6,367 | - |
(1) Prior year amounts have been updated to conform to current period presentation.
Key Metrics and Non-GAAP Financial Information
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DISAGGREGATED REVENUE BY PRODUCT LINE (in thousands, unaudited) |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2024 | 2023 | 2024 | 2023 | ||||||||
| Passenger segment | |||||||||||
| Short Distance | $ | 32,352 | $ | 30,388 | $ | 63,070 | $ | 59,997 | |||
| Jet and Other | 6,463 | 7,607 | 20,837 | 23,092 | |||||||
| Total | $ | 38,815 | $ | 37,995 | $ | 83,907 | $ | 83,089 | |||
| Medical segment | |||||||||||
| MediMobility Organ Transport | $ | 36,062 | $ | 33,447 | 110,429 | 94,613 | |||||
| Total | $ | 36,062 | $ | 33,447 | $ | 110,429 | $ | 94,613 | |||
| Total Revenue | $ | 74,877 | $ | 71,442 | $ | 194,336 | $ | 177,702 |
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SEGMENT INFORMATION: REVENUE, FLIGHT PROFIT, FLIGHT MARGIN, ADJUSTED EBITDA WITH RECONCILIATION TO TOTAL ADJUSTED EBITDA (in thousands except percentages, unaudited) |
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|
Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Passenger Revenue | $ | 38,815 | $ | 37,995 | $ | 83,907 | $ | 83,089 | |||||||
| Medical Revenue | 36,062 | 33,447 | 110,429 | 94,613 | |||||||||||
| Total Revenue | $ | 74,877 | $ | 71,442 | $ | 194,336 | $ | 177,702 | |||||||
| Passenger Flight Profit | $ | 12,329 | $ | 9,410 | $ | 21,755 | $ | 16,864 | |||||||
| Medical Flight Profit | 7,508 | 6,169 | 24,575 | 16,248 | |||||||||||
| Total Flight Profit(1) | $ | 19,837 | $ | 15,579 | $ | 46,330 | $ | 33,112 | |||||||
| Passenger Flight Margin | 31.8 | % | 24.8 | % | 25.9 | % | 20.3 | % | |||||||
| Medical Flight Margin | 20.8 | % | 18.4 | % | 22.3 | % | 17.2 | % | |||||||
| Total Flight Margin | 26.5 | % | 21.8 | % | 23.8 | % | 18.6 | % | |||||||
| Passenger Adjusted EBITDA | $ | 5,593 | $ | 2,777 | $ | 3,724 | $ | (2,353 | ) | ||||||
| Medical Adjusted EBITDA | 3,851 | 3,346 | 13,784 | 8,249 | |||||||||||
| Adjusted unallocated corporate expenses and software development | (5,264 | ) | (5,336 | ) | (15,916 | ) | (17,281 | ) | |||||||
| Total Adjusted EBITDA | $ | 4,180 | $ | 787 | $ | 1,592 | $ | (11,385 | ) |
(1) Includes $512 and $71 of depreciation and amortization for owned aircraft and vehicles in the three months ended September 30, 2024 and 2023, respectively and $1,033 and $154 in the nine months ended September 30, 2024 and 2023, respectively.
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LAST TWELVE MONTHS PASSENGER ADJUSTED EBITDA (in thousands, unaudited) |
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| Three Months Ended | |||||||||||||||||
|
Last Twelve Months |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
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| Passenger Adjusted EBITDA | $ | 1,089 | $ | 5,593 | $ | 782 | $ | (2,651 | ) | $ | (2,635 | ) |
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SEATS FLOWN - ALL PASSENGER FLIGHTS (unaudited) |
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|
Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2024 | 2023 | 2024 | 2023 | ||||
| Seats flown - all passenger flights | 45,977 | 50,821 | 117,722 | 121,008 |
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REVENUE, FLIGHT PROFIT, FLIGHT MARGIN, ADJUSTED SG&A, ADJUSTED EBITDA (in thousands except percentages, unaudited) |
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|
Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 74,877 | $ | 71,442 | $ | 194,336 | $ | 177,702 | |||||||
| Flight Profit(1) | 19,837 | 15,579 | 46,330 | 33,112 | |||||||||||
| Flight Margin | 26.5 | % | 21.8 | % | 23.8 | % | 18.6 | % | |||||||
| Adjusted SG&A | 16,169 | 14,863 | 45,771 | 44,651 | |||||||||||
| Adjusted SG&A as a percentage of revenue | 21.6 | % | 20.8 | % | 23.6 | % | 25.1 | % | |||||||
| Depreciation and amortization included in cost of revenue | 512 | 71 | 1,033 | 154 | |||||||||||
| Adjusted EBITDA | $ | 4,180 | $ | 787 | $ | 1,592 | $ | (11,385 | ) | ||||||
| Adjusted EBITDA as a percentage of revenue | 5.6 | % | 1.1 | % | 0.8 | % | (6.4) | % |
(1) Includes $512 and $71 of depreciation and amortization for owned aircraft and vehicles in the three months ended September 30, 2024 and 2023, respectively and $1,033 and $154 in the nine months ended September 30, 2024 and 2023, respectively.
|
RECONCILIATION OF REVENUE LESS COST OF REVENUE TO FLIGHT PROFIT AND GROSS PROFIT (in thousands except percentages, unaudited) |
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|
Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 74,877 | $ | 71,442 | $ | 194,336 | $ | 177,702 | |||||||
| Less: | |||||||||||||||
| Cost of revenue(1) | 55,040 | 55,863 | 148,006 | 144,590 | |||||||||||
| Depreciation and amortization(2) | 558 | 1,627 | 2,769 | 4,742 | |||||||||||
| Stock-based compensation | 36 | 44 | 149 | 124 | |||||||||||
| Other(3) | 4,805 | 3,865 | 11,786 | 9,893 | |||||||||||
| Gross Profit | $ | 14,438 | $ | 10,043 | $ | 31,626 | $ | 18,353 | |||||||
| Gross Margin | 19.3 | % | 14.1 | % | 16.3 | % | 10.3 | % | |||||||
| Gross Profit | $ | 14,438 | $ | 10,043 | $ | 31,626 | $ | 18,353 | |||||||
| Reconciling items: | |||||||||||||||
| Depreciation and amortization(2) | 558 | 1,627 | 2,769 | 4,742 | |||||||||||
| Stock-based compensation | 36 | 44 | 149 | 124 | |||||||||||
| Other(3) | 4,805 | 3,865 | 11,786 | 9,893 | |||||||||||
| Flight Profit | $ | 19,837 | $ | 15,579 | $ | 46,330 | $ | 33,112 | |||||||
| Flight Margin | 26.5 | % | 21.8 | % | 23.8 | % | 18.6 | % |
(1) Cost of revenue consists of flight costs paid to operators of aircraft and vehicles, landing fees, depreciation of aircraft and vehicles, ROU asset amortization, internal costs incurred in generating organ ground transportation revenue using the Company's owned vehicles and costs of operating our owned aircraft including fuel, management fees paid to the operator, maintenance costs and pilot salaries.
(2) Depreciation and amortization included within general and administrative expenses.
(3) Other costs include credit card processing fees, staff costs, commercial costs and establishment costs.
|
RECONCILIATION OF TOTAL OPERATING EXPENSES TO ADJUSTED SG&A (in thousands except percentages, unaudited) |
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| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 74,877 | $ | 71,442 | $ | 194,336 | $ | 177,702 | |||||||
| Total operating expenses | 78,414 | 78,890 | 219,890 | 210,186 | |||||||||||
| Subtract: | |||||||||||||||
| Cost of revenue | 55,040 | 55,863 | 148,006 | 144,590 | |||||||||||
| SG&A | $ | 23,374 | $ | 23,027 | $ | 71,884 | $ | 65,596 | |||||||
| SG&A as percentage of Revenue | 31.2 | % | 32.2 | % | 37.0 | % | 36.9 | % | |||||||
| Adjustments to reconcile SG&A to Adjusted SG&A | |||||||||||||||
| Subtract: | |||||||||||||||
| Depreciation and amortization included in SG&A | 767 | 1,772 | 3,399 | 5,151 | |||||||||||
| Stock-based compensation | 5,345 | 3,330 | 15,434 | 9,348 | |||||||||||
| Legal and regulatory advocacy fees(1)(2) | 165 | 217 | 427 | 640 | |||||||||||
| Executive severance costs | 140 | - | 140 | 265 | |||||||||||
| SOX readiness costs | 220 | 145 | 302 | 180 | |||||||||||
| Contingent consideration compensation (earn-out)(3) | - | 2,700 | - | 5,361 | |||||||||||
| M&A transaction costs | 85 | - | 169 | - | |||||||||||
| Impairment of intangible assets | - | - | 5,759 | $ | - | ||||||||||
| Restructuring costs-Blade Europe(4) | 483 | - | 483 | $ | - | ||||||||||
| Adjusted SG&A | $ | 16,169 | $ | 14,863 | $ | 45,771 | $ | 44,651 | |||||||
| Adjusted SG&A as percentage of Revenue | 21.6 | % | 20.8 | % | 23.6 | % | 25.1 | % |
(1) For the three and nine months ended September 30, 2024, represents legal advocacy fees related to the Drulias lawsuit that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business.
(2) For the three and nine months ended September 30, 2023, represents certain legal and regulatory advocacy fees for certain proposed restrictions at East Hampton Airport and potential operational restrictions on large jet aircraft at Westchester Airport, that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business.
(3) Trinity's contingent consideration, 2023 was the last year subject to an earn-out payment.
(4) Includes severance, retention, legal and other one-time restructuring costs associated with a reorganization of Blade Europe.
|
RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA (in thousands except percentages, unaudited) |
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| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net (loss) income | $ | (1,954 | ) | $ | 289 | $ | (17,514 | ) | $ | (22,135 | ) | ||||
| Depreciation and amortization | 1,279 | 1,843 | 4,432 | 5,305 | |||||||||||
| Stock-based compensation | 5,345 | 3,330 | 15,434 | 9,348 | |||||||||||
| Change in fair value of warrant liabilities | 299 | (5,719 | ) | (2,266 | ) | (3,823 | ) | ||||||||
| Realized loss from sales of short-term investments | - | - | - | 95 | |||||||||||
| Interest income | (1,764 | ) | (2,147 | ) | (5,624 | ) | (6,178 | ) | |||||||
| Income tax (benefit) expense | (118 | ) | 129 | (150 | ) | (443 | ) | ||||||||
| Legal and regulatory advocacy fees(1)(2) | 165 | 217 | 427 | 640 | |||||||||||
| Executive severance costs | 140 | - | 140 | 265 | |||||||||||
| SOX readiness costs | 220 | 145 | 302 | 180 | |||||||||||
| Contingent consideration compensation (earn-out)(3) | - | 2,700 | - | 5,361 | |||||||||||
| M&A transaction costs | 85 | - | 169 | - | |||||||||||
| Impairment of intangible assets | - | - | 5,759 | - | |||||||||||
| Restructuring costs-Blade Europe(4) | 483 | - | 483 | - | |||||||||||
| Adjusted EBITDA | $ | 4,180 | $ | 787 | $ | 1,592 | $ | (11,385 | ) | ||||||
| Revenue | $ | 74,877 | $ | 71,442 | $ | 194,336 | $ | 177,702 | |||||||
| Adjusted EBITDA as a percentage of Revenue | 5.6 | % | 1.1 | % | 0.8 | % | (6.4)% |
(1) For the three and nine months ended September 30, 2024, represents legal advocacy fees related to the Drulias lawsuit that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business.
(2) For the three and nine months ended September 30, 2023, represents certain legal and regulatory advocacy fees for certain proposed restrictions at East Hampton Airport and potential operational restrictions on large jet aircraft at Westchester Airport, that we do not consider representative of legal and regulatory advocacy costs that we will incur from time to time in the ordinary course of our business.
(3) Trinity's contingent consideration, 2023 was the last year subject to an earn-out payment.
(4) Includes severance, retention, legal and other one-time restructuring costs associated with a reorganization of Blade Europe.
|
RECONCILIATION OF NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW AND FREE CASH FLOW BEFORE AIRCRAFT ACQUISITIONS (in thousands, unaudited) |
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| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net cash provided by / (used in) operating activities | $ | 6,355 | $ | 2,023 | $ | (767 | ) | $ | (23,029 | ) | |||||
| Capitalized software development costs | (604 | ) | - | (1,660 | ) | - | |||||||||
| Purchase of property and equipment | (9,313 | ) | (695 | ) | (26,292 | ) | (2,085 | ) | |||||||
| Free Cash Flow | (3,562 | ) | 1,328 | (28,719 | ) | (25,114 | ) | ||||||||
| Aircraft Acquisition Capital Expenditures(1) | 7,288 | - | 21,923 | - | |||||||||||
| Free Cash Flow, before Aircraft Acquisitions | $ | 3,726 | $ | 1,328 | $ | (6,796 | ) | $ | (25,114 | ) |
(1) Represents capital expenditures for aircraft acquisitions, excluding capitalized maintenance subsequent to initial acquisition.
|
LAST TWELVE MONTHS DISAGGREGATED REVENUE BY PRODUCT LINE (in thousands, unaudited) |
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| Three Months Ended | |||||||||||||||
|
Last Twelve Months |
September 30, 2024 |
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
|||||||||||
| Product Line: | |||||||||||||||
| Short Distance | $ | 73,773 | $ | 32,352 | $ | 20,908 | $ | 9,810 | $ | 10,703 | |||||
| Jet and Other | 25,621 | 6,463 | 8,696 | 5,678 | 4,784 | ||||||||||
| MediMobility Organ Transport | 142,420 | 36,062 | 38,341 | 36,026 | 31,991 | ||||||||||
| Total Revenue | $ | 241,814 | $ | 74,877 | $ | 67,945 | $ | 51,514 | $ | 47,478 |
About Blade Air Mobility
Blade Air Mobility provides air transportation and logistics for hospitals across the United States, where it is one of the largest transporters of human organs for transplant, and for passengers, with helicopter and fixed wing services primarily in the Northeast United States and Southern Europe. Based in New York City, Blade's asset-light model, coupled with its exclusive passenger terminal infrastructure and proprietary technologies, is designed to facilitate a seamless transition from helicopters and fixed-wing aircraft to Electric Vertical Aircraft ("EVA" or "eVTOL"), enabling lower cost air mobility that is both quiet and emission-free.
For more information, visit www.blade.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and may be identified by the use of words such as "will", "anticipate," "believe," "could," "continue," "expect," "estimate," "may," "plan," "outlook," "future," "target," and "project" and other similar expressions and the negatives of those terms. These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to Blade's future prospects, developments and business strategies. In particular, such forward-looking statements include statements concerning Blade's future financial and operating performance (including the discussion of 2024 and 2025 financial outlook and guidance), the composition and performance of its fleet, results of operations, industry environment and growth opportunities, new product lines and partnerships, and the development and adoption of EVA technology. These statements are based on management's current expectations and beliefs, as well as a number of assumptions concerning future events. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.
Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Blade's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include: our continued incurrence of significant losses; failure of the markets for our offerings to grow as expected, or at all; our ability to effectively market and sell air transportation as a substitute for conventional methods of transportation; reliance on certain customers in our Passenger segment revenue; the inability or unavailability to use or take advantage of the shift, or lack thereof, to EVA technology; our ability to successfully enter new markets and launch new routes and services; any adverse publicity stemming from accidents involving small aircraft, helicopters or charter flights and, in particular, any accidents involving our third-party operators; any change to the ownership of our aircraft and the challenges related thereto; the effects of competition; harm to our reputation and brand; our ability to provide high-quality customer support; our ability to maintain a high daily aircraft usage rate; changes in consumer preferences, discretionary spending and other economic conditions; impact of natural disasters, outbreaks and pandemics, economic, social, weather, geopolitical, growth constraints, and regulatory conditions or other circumstances on metropolitan areas and airports where we have geographic concentration; the effects of climate change, including potential increased impacts of severe weather and regulatory activity; the availability of aircraft fuel; our ability to address system failures, defects, errors, or vulnerabilities in our website, applications, backend systems or other technology systems or those of third-party technology providers; interruptions or security breaches of our information technology systems; our placements within mobile applications; our ability to protect our intellectual property rights; our use of open source software; our ability to expand and maintain our infrastructure network; our ability to access additional funding; the increase of costs and risks associated with international expansion; our ability to identify, complete and successfully integrate future acquisitions; our ability to manage our growth; increases in insurance costs or reductions in insurance coverage; the loss of key members of our management team; our ability to maintain our company culture; our reliance on contractual relationships with certain transplant centers and Organ Procurement Organizations; effects of fluctuating financial results; our reliance on third-party operators; the availability of third-party operators; disruptions to third-party operators; increases in insurance costs or reductions in insurance coverage for our third-party aircraft operators; the possibility that our third-party aircraft operators may illegally, improperly or otherwise inappropriately operate our branded aircraft; our reliance on third-party web service providers; changes in our regulatory environment; risks and impact of any litigation we may be subject to; regulatory obstacles in local governments; the expansion of domestic and foreign privacy and security laws; the expansion of environmental regulations; our ability to remediate any material weaknesses or maintain internal controls over financial reporting; our ability to maintain effective internal controls and disclosure controls; changes in the fair value of our warrants; and other factors beyond our control. Additional factors can be found in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, each as filed with the U.S. Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and Blade undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise.
Contacts
For Investor Relations
Mathew Schneider
[email protected]
For Media Relations
Lee Gold
[email protected]
Source: Blade Air Mobility, Inc.
Released November 12, 2024