Strata Critical Medical, Inc. · NASDAQ:SRTA
Strata Critical Medical — Blade Air Mobility — Q1 2024 Earnings Presentation
53 slides from Strata Critical Medical's earnings presentation, May 7, 2024
Slide 1: Investor Presentation May 2024
Investor Presentation May 2024
Slide 2: Forward Looking Statements
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
Slide 3: Blade is a Global Leader in Air Mobility
Blade is a Global Leader in Air Mobility Trailing Twelve Months Revenue ($ in mm) Blade Air Mobility provides air transportation and $190 $216 $225 $231 $165 logistics for hospitals across the United States, $107 $133 $146 41% $85 where it is one of the largest transporters of $67 $39 $51 $29 59% Pa
Slide 4: Key Business Segments
Key Business Segments Medical Segment Passenger Segment Trailing Twelve Months Trailing Twelve Months Revenue Flight Profit Segment Adj EBITDA(1) Revenue Flight Profit Segment Adj EBITDA(1) $136mm $26mm $13.3mm $96mm $19mm $(4.6)mm 58% YoY Growth 19% Margin 119% YoY Growth 21% YoY Growth 20% Margin
Slide 5: Operating Leverage
Blade’s Aircraft Capacity Blade’s Third-party, without Differentiated commitment • Owned and operated by third-parties • Fly at fixed hourly rates, paying only for flights actually flown Asset-Light Model • • Blade provides no guarantee to operator • Lacks fixed cost leverage or efficiencies from in
Slide 6: Operators
Blade’s Network of Fuel & Insurance Pilots and Pilot Training Maintenance & Hangars Aircraft Operators Provide ~90% Owned by Third-Parties(1) Third-Party Operators Access to Our Brand Strategic Infrastructure Fliers and Terminal Network All Blade flights are operated by third-party operators that ar
Slide 7: Blade Financial Drivers
Blade Financial Drivers Blade generates revenue from a combination of by-the-seat, full aircraft charter, and ancillary products and services By-The-Seat Products Charter / Medical Products Other Revenue • Upgrades (Meet & Greet, Car Services, Seats Sold Flights Sold Flexible Fares) Revenue • Gift C
Slide 8: Medical Business Overview
Medical Business Overview Medical Segment Trailing Twelve Month Revenues Key Value Proposition ($ in mm) • Largest dedicated air transporter of Non-Correlated human organs for transplant, providing a Demand nationwide, end-to-end solution Transplant $136 incorporating fixed-wing aircraft, transporta
Slide 9: Blade's Medical Service Offerings
Blade’s Medical Service Offerings Blade primarily transports hearts, livers, and lungs as the very short time these organs can survive outside of a human body often makes flying the only viable option. Transplants typically follow the process below. ORGAN PLACEMENT SERVICES LOGISTICS LOGISTICS (TOPS
Slide 10: Short Distance Overview
Short Distance Overview Key Products Short Distance Trailing Twelve Month Revenues • Passenger flights primarily Airport ($ in mm) between Blade terminals in New By-the-Seat York, Vancouver, and Southern Service between Manhattan and New York Europe $71 area airports and between $69 $70 Monaco and N
Slide 11: Short Distance Footprint in Markets with Significant Congestion or Geographic Challenges
Short Distance Footprint in Markets with Significant Congestion or Geographic Challenges Blade sees significant value in its short-distance air services for busy travel corridors that face significant congestion or geographic challenges Market Snapshot: Market Snapshot: Manhattan <> JFK and EWR Airp
Slide 12: Illustrative By-The-Seat Unit Economics For Blade Airport
Illustrative By-The-Seat Unit Economics For Blade Airport A typical Blade Airport flight from the West 30th Street Heliport to JFK can cost $500 per flight including landing fees Illustrative Unit Economics at Various Passenger Load Factors Key Cost Components Base Ticket Price Seats Sold 1 2 3 4 5
Slide 13: Jet & Other Overview
Jet & Other Overview Jet and Other Trailing Twelve Months Revenue Key Products ($ in mm) • Jet charter, primarily in the 0 1 0 United States 29 29 2 2 BladeOne (1) 2 discontinued $30 $31 $30 22 Payments from brand in Q2 2023 $29 • Jet Charter 21 $26 $29 $28 $28 $28 $25 Asset-light charter 17 partner
Slide 14: Blade Safety Overview
Blade Safety Overview Blade partners with third-party aircraft operators who are vetted quarterly by Blade’s safety team • Each core operator must pass comprehensive safety Safety Leadership Team evaluations including: • Brings 25+ years of active-duty experience • In-person audits of flight departm
Slide 15: Business Highlights
Business Highlights ~~. _* 4
Slide 16: Blade is a Global Urban Air Mobility Platform
Blade is a Global Urban Air Mobility Platform Long-Term Contracts with Medical Global Footprint with Proprietary Technology and Customers Strategic Infrastructure Logistics Platform Given the urban air mobility ecosystem we have built, we believe no company is better positioned to benefit as traditi
Slide 17: Contracted, Mission-Critical Medical Business
Contracted, Mission-Critical Medical Business United States Heart, Liver, Lung Transplants by Year(2) • Blade’s Medical business serves 70+ transplant center hospitals and Organ Procurement Organizations across the 18,231 United States pursuant to two-to-three-year contracts. 16,331 Hospitals pay Bl
Slide 18: Global Footprint in Highly Strategic Urban Air Mobility Markets
Global Footprint in Highly Strategic Urban Air Mobility Markets United States Europe • Short Distance service primarily between • Short Distance service Manhattan, New York between key European airports and Long Island destinations including Nice, • MediMobility organ transport Monaco, Cannes, Saint
Slide 19: Strategic Infrastructure and Terminal Network
Strategic Infrastructure and Terminal Network Blade’s strategic infrastructure, terminal network, and nationwide vehicle hub enable security, health and safety, and passenger management 30 vehicles in eight hubs across the US Manhattan East 34 th St Manhattan Hudson Yards Newark International Airpor
Slide 20: Blade's Proprietary Technology and Logistics Platform
Blade’s Proprietary Technology and ogistics Platform Blade built a Customer-to-Cockpit urban air mobility technology platform enabling us to manage hundreds of flights per day 1 2 3 4 Automated Flier Consumer Communications Consumer Facing App Includes in-app portal for flight Intuitive interface al
Slide 21: Brand Experience
Brand Experience Tech-Enabled Booking Process Seasoned Flier Experience Team Blade has created a unique brand and flier experience We’ve made “Blade” into a verb in the markets we fly Trusted Safety on Tarmac and in the Air Seamless Multi-Modal Connectivity 21
Slide 22: Brands Partner with Blade
Brands Partner with Blade Blade works with brand partners on a category exclusive basis to amplify flier exposure across our suite of services and geographies. Deals can be for cash, products, or services in-kind Food & Beverages Technology Entertainment/Sports Hospitality/Retail Transportation Fash
Slide 23: Enabling Seamless Transition to Electric Vertical Aircraft
Enabling Seamless Transition to Electric • Blade hasVertical partnered Aircraft Given anticipated lower costs, quiet operation, and zero emissions, EVA are expected to enhance Blade’s business and significantly increase Blade’s total addressable market, with several leading manufacturers targeting c
Slide 24: Financial Overview
Financial Overview
Slide 25: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights Revenue Trailing 12 Month Revenue $52m $231m 14% YoY reported growth ~59% from Medical Medical YoY Medical YoY Revenue Growth Flight Profit Growth 35% 85% Flight Margin Adjusted EBITDA 20% ($3.5m) Up 385 bps YoY Improved $4.2m YoY Note: See “Use of Non-GAAP Information”
Slide 26: Q1 2024 Financial Highlights (continued)
Q1 2024 Financial Highlights (continued) Total Revenue MediMobility Organ Short Distance Jet & Other ($ in millions) ($ in millions) Transport ($ in millions) ($ in millions) +14% +35% (6%) $51.5 (30%) $45.3 $36.0 $26.8 $10.4 $9.8 $8.1 $5.7 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Growth driv
Slide 27: Q1 2024 – Revenue and Adjusted EBITDA Overview
Q1 2024 – Revenue and Adjusted EBITDA Overview Three Months Ended March 31, ($ in millions) 2023 2024 %Δ vs 2023 Passenger Revenue $18.5 $15.5 (16.3%) Medical Revenue 26.8 36.0 34.6% Passenger Revenue and Flight Profit decrease driven by driven by the discontinuation of Total Revenue $45.3 $51.5 13.
Slide 28: FY 2023 – Revenue and Adjusted EBITDA Overview
FY 2023 – Revenue and Adjusted EBITDA Overview Year Ended December 31, ($ in millions) 2022 2023 %Δ vs 2022 Passenger Revenue $74.3 $98.6 32.6% Medical Revenue 71.8 126.6 76.4% Margin expansion attributable to (i) increased use of dedicated aircraft and owned vehicles in the Medical business, which
Slide 29: Track Record of Significant Revenue Growth with Positive Flight Margin
Track Record of Significant Revenue Growth with Positive Flight Margin Passenger revenue and flight margin seasonally stronger in Q2 & Q3 Quarterly Revenue ($ in millions) Quarterly Flight Margin 71.4 23.0% 22.0% 21.8% 20.6% 61.0 19.7% 19.0% 17.0% 51.5 15.9% 16.0% 15.8% 47.5 45.7 45.3 14.3% 14.3% 38
Slide 30: Well Capitalized with Significant Liquidity
Well Capitalized with Significant Liquidity As of March 31, 2024, Blade had $151mm in cash and short-term investments • Blade believes its current cash balance provides sufficient liquidity to fund the company’s growth plan without the need to raise additional capital • Blade seeks to deploy capital
Slide 31: How Blade Creates Value via M&A: Trinity Air Medical Case Study
How Blade Creates Value via M&A: Trinity Air Medical Case Study Since acquiring Trinity, Blade has significantly accelerated growth in the business, enhancing returns for shareholders Quarterly Revenue • Blade acquired Trinity in September 2021 for ($ in mm) $23mm $40 • Trinity’s trailing twelve-mon
Slide 32: Electric Vertical Aircraft (EVA) Opportunity
Electric Vertical Aircraft (“EVA”) Opportunity
Slide 33: Blade Expects EVA to Catalyze Demand for Urban Air Mobility
Blade Expects EVA to Catalyze Demand for Urban Air Mobility Given anticipated lower costs, lower noise footprints, and zero emissions, Electric Vertical Aircraft are poised to enhance Blade’s business once certified and available for commercial service, which some manufacturers expect in 202 Expecte
Slide 34: Over $6 Billion Has Been Invested in Electric Vertical Aircraft
Over $6 Billion Has Been Invested in Electric Vertical Aircraft Blade is encouraged by the enormous amount of financial and intellectual capital being deployed to certify EVA Partners • Investor in Blade • Approximately • Approximately • Partnership with • Received $450mm in • Developing airspace $1
Slide 35: Blade Has Partnerships with Leading EVA Manufacturers
Blade Has Partnerships with Leading EVA Manufacturers Though Blade remains manufacturer-agnostic, we have cultivated a strong and growing list of strategic partners to ensure a seamless transition to EVA once certified Partner Date Details • Investor in Blade since 2018 March 2018 • Recently unveile
Slide 36: Components of Aircraft Operating Costs
Components of Aircraft Operating Costs Given the fixed costs associated with operating any aircraft, along with the need for infrastructure owners to make profits from fuel / electricity sales and landing fees, we anticipate that early EVA will produce modest improvements in unit economics Operator
Slide 37: Illustrative EVA Fixed Costs
Illustrative EVA Fixed Costs We estimate that the fixed costs associated with EVA operation will largely resemble helicopter / fixed wing costs, equating to ~$600-$900 per hour assuming 1,000-1,500 hours flown per machine, per year (2) Category Assumption Annualized Per Hour Vs. Heli These costs may
Slide 38: Illustrative EVA Unit Economics
Illustrative EVA Unit Economics Management estimates that EVA will initially enable a modest reduction in flying cost on key routes, with further savings expected over time Illustrative West 30th Street to JFK Economics Hourly Rate $1,500 ~$900 ~$600 ~$1,500 * Duration of Flight 0.2 Hours Traditiona
Slide 39: Appendix
Appendix
Slide 40: Blade Management
Blade Management Rob Wiesenthal Melissa Tomkiel Will Heyburn Founder and Chief Executive Officer President and General Counsel Chief Financial Officer • Founder and Chief Executive Officer of • Previously President and General • Previously at RedBird Capital Partners BLADE Urban Air Mobility, Inc. C
Slide 41: Blade Board of Directors
Blade Board of Directors Eric Affeldt Edward Philip Susan Lyne Kenneth Lerer Chairman of Board of Directors Chair of Audit Committee Chair of Compensation Committee Member of Board of Directors • Former Chief Executive Officer of • Chairman of United Airlines • Co-Founder and General Partner of • Ma
Slide 42: Blade Historical Disaggregated Revenue By Product Line
Blade Historical Disaggregated Revenue By Product Line BLADE AIR MOBILITY, INC. DIS AGGREGATED REVENUE BY PRODUCT LINE ($ in thousands, unaudited) Three Months Ended March 31, December 31, S eptember June 30, March 31, December 31, S eptember June 30, March 31, December 31, S eptember June 30, March
Slide 43: Use Of Non-GAAP Information (Continued)
Use Of Non-GAAP Information (Continued) 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 cars, landing fees, depreciation for cars, ROU asset amortization and internal costs incur
Slide 44: Use Of Non-GAAP Information
Use Of Non-GAAP Information Adjusted EBITDA - To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), Blade reports Adjusted EBITDA, which is a non-GAAP financial measure. Blade defines Adjusted
Slide 45: Use Of Non-GAAP Information
Use Of Non-GAAP Information Adjusted EBITDA - To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), Blade reports Adjusted EBITDA, which is a non-GAAP financial measure. Blade defines Adjusted
Slide 46: Use Of Non-GAAP Information (Continued)
Use Of Non-GAAP Information (Continued) We operate our business as two reportable segments - Passenger and Medical. Adjusted EBITDA and Segment Adjusted EBITDA - Blade reports Adjusted EBITDA, which is a non-GAAP financial measure. Blade defines Adjusted EBITDA as net loss adjusted to exclude deprec
Slide 47: Use Of Non-GAAP Information (Continued)
Use Of Non-GAAP Information (Continued) We operate our business as two reportable segments - Passenger and Medical. Adjusted EBITDA and Segment Adjusted EBITDA - Blade reports Adjusted EBITDA, which is a non-GAAP financial measure. Blade defines Adjusted EBITDA as net loss adjusted to exclude deprec
Slide 48: Use Of Non-GAAP Information (Continued)
Use Of Non-GAAP Information (Continued) We operate our business as two reportable segments - Passenger and Medical. Adjusted EBITDA and Segment Adjusted EBITDA - Blade reports Adjusted EBITDA, which is a non-GAAP financial measure. Blade defines Adjusted EBITDA as net loss adjusted to exclude deprec
Slide 49: Use Of Non-GAAP Information (Continued)
Use Of Non-GAAP Information (Continued) We operate our business as two reportable segments - Passenger and Medical. Adjusted EBITDA and Segment Adjusted EBITDA - Blade reports Adjusted EBITDA, which is a non-GAAP financial measure. Blade defines Adjusted EBITDA as net loss adjusted to exclude deprec
Slide 50: Use Of Non-GAAP Information (Continued)
Use Of Non-GAAP Information (Continued) We operate our business as two reportable segments - Passenger and Medical. Adjusted EBITDA and Segment Adjusted EBITDA - Blade reports Adjusted EBITDA, which is a non-GAAP financial measure. Blade defines Adjusted EBITDA as net loss adjusted to exclude deprec
Slide 51: Use Of Non-GAAP Information (Continued)
Use Of Non-GAAP Information (Continued) We operate our business as two reportable segments - Passenger and Medical. Segment 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 cars,
Slide 52: Use Of Non-GAAP Information (Continued)
Use Of Non-GAAP Information (Continued) We operate our business as two reportable segments - Passenger and Medical. Segment 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 cars,
Slide 53: Trinity Air Medical, Inc. Historical Quarterly Revenue
Trinity Air Medical, Inc. Historical Quarterly Revenue Note: The figures below reflect Trinity Air Medical, Inc.’s unaudited revenues for the twelve months ended June 30, 2021, which were prepared by Trinity and provided to Blade. TRINITY AIR MEDICAL, INC. HISTORICAL QUARTERLY REVENUE FOR TWELVE MON