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09 August, 2022

Blade Air Mobility's Financial Results for the Q2

Blade Air Mobility, a technology-powered air mobility platform has announced financial results for the second quarter ended June 30, 2022 today, proudly showing how revenue had increased by 175% to $35.6 million. The company saw short-distance flight revenue increase 89% to $11.0 million versus $5.8 million in the same period last year, driven by the acquisition of Helijet's passenger routes in Vancouver as well as the resumption of the Blade Airport service.

"Blade delivered record revenue and Flight Profit this quarter, with strong growth across all business lines," said Rob Wiesenthal, Blade’s Chief Executive Officer. "We have seen continued strength in our consumer-facing businesses with revenue and average seat prices for both the second quarter and third quarter to-date well ahead of our 2019 and 2021 levels. Given unwavering demand from our fliers coupled with continued strong sequential growth in our MediMobility Organ Transport business, Blade has proven it is well positioned to thrive in this uncertain macroeconomic environment."

"Our strong financial performance is a testament to our success in leveraging the Blade platform across the diverse portfolio of businesses that we have built and acquired since our inception," said Will Heyburn, Blade’s Chief Financial Officer. "By deploying our brand, aircraft operator network, and technology-enabled logistics and customer service, we have significantly accelerated growth, including in our MediMobility Organ Transport business, which experienced 139% pro forma organic growth compared to the prior year period."

"We look forward to closing our acquisitions in Europe, where our roll-up of the commercial activities of three prominent urban air mobility operators will fortify Blade’s leadership in the region,” said Melissa Tomkiel, Blade's President. "Our urban air mobility alliance with JetBlue has now been launched, providing preferred pricing and other benefits for seamless air transport between Manhattan and New York area airports for the TrueBlue loyalty program membership base.”

Second Quarter Ended June 30, 2022 Financial Highlights


Total revenue increased 175% to $35.6 million versus $13.0 million in the prior year period. On a pro forma basis, assuming Blade had owned both Trinity and Helijet International Inc's ("Helijet") scheduled passenger routes in the prior year period, revenue for the second quarter ended June 30, 2022 would have been up 87%
Flight Margin of 14.3% improved sequentially versus Q1 2022, as expected, but decreased versus 23.0% in the prior year period, driven primarily by the significant revenue mix shift towards MediMobility Organ Transport and re-launch of Blade Airport service, which remained below breakeven during the ramp-up period this quarter as expected
Short Distance revenue increased 89% to $11.0 million in the current quarter versus $5.8 million in the prior year period. Growth was driven by our acquisition of Helijet's passenger routes in Vancouver, the resumption of our Blade Airport service, growth in short distance charter, and higher pricing across our network
MediMobility Organ Transport revenue increased 1,013% to $17.2 million in the current quarter versus $1.6 million in the prior year period, driven by Blade's acquisition of Trinity in September 2021. On a pro forma basis, assuming Blade had owned Trinity in the prior year period, revenue growth in MediMobility Organ Transport would have been 139% versus the prior year period, driven by a combination of new hospital clients and continued growth with existing accounts
Jet and Other revenue increased 32% to $7.4 million in the current quarter versus $5.6 million in the prior year period driven primarily by an increase in the average price per trip, and stronger demand for our seasonal BladeOne jet service between New York and South Florida
Net income increased to $8.4 million in the current quarter versus a net loss of $24.3 million in the prior year period, driven primarily by increased revenue and a favorable change in the fair value of warrant liabilities of $19.3 million (compared to an unfavorable change of $14.9 million and $1.7 million of recapitalization costs attributable to warrant liabilities in the prior year period), partially offset by a $2.3 million increase in General & Administrative costs
Adjusted EBITDA decreased to $(6.1) million in the current quarter from $(2.6) million in the prior year period. The decrease versus the prior year period is primarily attributable to additional corporate and recurring expenses related to Blade’s growth and status as a public company, partially offset by increased Flight Profit





BLADE AIR MOBILITY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2020

 

2022

 

2021

 

2020

Revenue

$

35,633

 

 

$

12,951

 

 

$

3,438

 

 

$

62,263

 

 

$

22,224

 

 

$

9,892

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue(1)

 

30,522

 

 

 

9,976

 

 

 

2,814

 

 

 

54,229

 

 

 

17,773

 

 

 

8,686

 

Software development(1)

 

1,062

 

 

 

323

 

 

 

273

 

 

 

1,897

 

 

 

612

 

 

 

592

 

General and administrative(1)

 

12,144

 

 

 

9,808

 

 

 

1,546

 

 

 

26,122

 

 

 

14,633

 

 

 

4,402

 

Selling and marketing(1)

 

1,638

 

 

 

615

 

 

 

281

 

 

 

3,438

 

 

 

1,202

 

 

 

1,036

 

Total operating expenses

 

45,366

 

 

 

20,722

 

 

 

4,914

 

 

 

85,686

 

 

 

34,220

 

 

 

14,716

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

(9,733

)

 

 

(7,771

)

 

 

(1,476

)

 

 

(23,423

)

 

 

(11,996

)

 

 

(4,824

)

 

 

 

 

 

 

 

 

 

 

 

 

Other non-operating income (expense)

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of warrant liabilities

 

19,266

 

 

 

(14,913

)

 

 

 

 

 

21,816

 

 

 

(14,913

)

 

 

 

Realized loss from sales of short term investments

 

(1,576

)

 

 

 

 

 

 

 

 

(1,712

)

 

 

 

 

 

 

Recapitalization costs attributable to warrant liabilities

 

 

 

 

(1,742

)

 

 

 

 

 

 

 

 

(1,742

)

 

 

 

Interest income, net

 

455

 

 

 

140

 

 

 

151

 

 

 

719

 

 

 

144

 

 

 

90

 

Other non-operating income (expense)

 

18,145

 

 

 

(16,515

)

 

 

151

 

 

 

20,823

 

 

 

(16,511

)

 

 

90

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

8,412

 

 

$

(24,286

)

 

$

(1,325

)

 

$

(2,600

)

 

$

(28,507

)

 

$

(4,734

)

__________
(1) Prior period amounts have been updated to conform to current period presentation.

 

BLADE AIR MOBILITY, INC.
RECONCILIATION OF REVENUE LESS COST OF REVENUE TO FLIGHT PROFIT
(in thousands except percentages, unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2020

 

2022

 

2021

 

2020

Revenue

$

35,633

 

 

$

12,951

 

 

$

3,438

 

 

$

62,263

 

 

$

22,224

 

 

$

9,892

 

Cost of revenue(1)

 

30,522

 

 

 

9,976

 

 

 

2,814

 

 

 

54,229

 

 

 

17,773

 

 

 

8,686

 

Flight Profit

$

5,111

 

 

$

2,975

 

 

$

624

 

 

$

8,034

 

 

$

4,451

 

 

$

1,206

 

Flight Margin

 

14

%

 

 

23

%

 

 

18

%

 

 

13

%

 

 

20

%

 

 

12

%

__________
(1) Cost of revenue consists of flight costs paid to operators of aircraft and cars, landing fees and internal costs incurred in generating ground transportation revenue using the Company's owned cars. Prior period amounts have been updated to conform to current period presentation.

 

BLADE AIR MOBILITY, INC.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(in thousands, unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2020

 

2022

 

2021

 

2020

Net income (loss)

$

8,412

 

 

$

(24,286

)

 

$

(1,325

)

 

$

(2,600

)

 

$

(28,507

)

 

$

(4,734

)

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

1,844

 

 

 

2,518

 

 

 

90

 

 

 

3,942

 

 

 

4,422

 

 

 

177

 

Depreciation and amortization

 

1,155

 

 

 

140

 

 

 

133

 

 

 

2,300

 

 

 

266

 

 

 

264

 

Interest income, net

 

(455

)

 

 

(140

)

 

 

(151

)

 

 

(719

)

 

 

(144

)

 

 

(90

)

Change in fair value of warrant liabilities

 

(19,266

)

 

 

14,913

 

 

 

 

 

 

(21,816

)

 

 

14,913

 

 

 

 

Realized loss from sales of short term investments

 

1,576

 

 

 

 

 

 

 

 

 

1,712

 

 

 

 

 

 

 

Recapitalization costs attributable to warrant liabilities

 

 

 

 

1,742

 

 

 

 

 

 

 

 

 

1,742

 

 

 

 

Consulting costs related to initial public listing

 

 

 

 

2,038

 

 

 

 

 

 

 

 

 

2,038

 

 

 

 

Offering documents expenses

 

 

 

 

324

 

 

 

 

 

 

 

 

 

324

 

 

 

 

Recruiting fees related to initial public listing

 

 

 

98

 

 

 

 

 

 

 

 

 

98

 

 

 

 

M&A transaction costs

 

451

 

 

 

80

 

 

 

 

 

 

1,424

 

 

 

80

 

 

 

 

One-time legal and regulatory advocacy fees

 

164

 

 

 

 

 

 

 

 

 

1,911

 

 

 

 

 

 

 

Adjusted EBITDA

$

(6,119

)

 

$

(2,573

)

 

$

(1,253

)

 

$

(13,846

)

 

$

(4,768

)

 

$

(4,383

)

 

BLADE AIR MOBILITY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data, unaudited)

 

 

June 30,
2022

 

December 31,
2021

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

186,556

 

 

$

2,595

 

Restricted cash

 

1,690

 

 

 

630

 

Accounts receivable

 

9,672

 

 

 

5,548

 

Short-term investments (cost: June 30, 2022 - $70,308; December 31, 2021 - $280,263)

 

69,607

 

 

 

279,374

 

Prepaid expenses and other current assets

 

10,700

 

 

 

6,798

 

Total current assets

 

278,225

 

 

 

294,945

 

 

 

 

 

Non-current assets:

 

 

 

Property and equipment, net

 

2,304

 

 

 

2,045

 

Investment in joint venture

 

200

 

 

 

200

 

Intangible assets, net

 

22,743

 

 

 

24,421

 

Goodwill

 

13,328

 

 

 

13,328

 

Operating right-of-use asset

 

6,003

 

 

 

713

 

Other non-current assets

 

1,384

 

 

 

232

 

Total assets

$

324,187

 

 

$

335,884

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued expenses

$

7,648

 

 

$

6,369

 

Deferred revenue

 

8,500

 

 

 

5,976

 

Operating lease liability, current

 

2,364

 

 

 

438

 

Total current liabilities

 

18,512

 

 

 

12,783

 

 

 

 

 

Non-current liabilities:

 

 

 

Warrant liability

 

9,492

 

 

 

31,308

 

Operating lease liability, long-term

 

3,748

 

 

 

278

 

Deferred tax liability

 

144

 

 

 

144

 

Total liabilities

 

31,896

 

 

 

44,513

 

 

 

 

 

Stockholders' Equity

 

 

 

Preferred stock, $0.0001 par value, 2,000,000 shares authorized at June 30, 2022 and December 31, 2021. No shares issued and outstanding at June 30, 2022 and December 31, 2021.

 

 

 

 

 

Common stock, $0.0001 par value; 400,000,000 authorized; 71,397,326 and 70,667,381 shares issued at June 30, 2022 and December 31, 2021, respectively.

 

7

 

 

 

7

 

Additional paid in capital

 

371,690

 

 

 

368,680

 

Accumulated other comprehensive loss

 

(388

)

 

 

(898

)

Accumulated deficit

 

(79,018

)

 

 

(76,418

)

Total stockholders' equity

 

292,291

 

 

 

291,371

 

 

 

 

 

Total Liabilities and Stockholders' Equity

$

324,187

 

 

$

335,884

 

 

BLADE AIR MOBILITY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2020

 

2022

 

2021

 

2020

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

8,412

 

 

$

(24,286

)

 

$

(1,325

)

 

$

(2,600

)

 

$

(28,507

)

 

$

(4,734

)

Adjustments to reconcile net loss to net cash and restricted cash used in operating activities:

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

1,155

 

 

 

140

 

 

 

133

 

 

 

2,300

 

 

 

266

 

 

 

264

 

Stock-based compensation

 

1,844

 

 

 

2,518

 

 

 

90

 

 

 

3,942

 

 

 

4,422

 

 

 

177

 

Change in fair value of warrant liabilities

 

(19,266

)

 

 

14,913

 

 

 

 

 

 

(21,816

)

 

 

14,913

 

 

 

 

Realized loss from sales of short term investments

 

1,576

 

 

 

 

 

 

 

 

 

1,712

 

 

 

 

 

 

 

Unrealized foreign exchange gain / losses

 

 

 

 

 

 

 

 

 

 

(5

)

 

 

 

 

 

 

Recapitalization costs attributable to warrant liabilities

 

 

 

 

1,742

 

 

 

 

 

 

 

 

 

1,742

 

 

 

 

Loss on disposal of property and equipment

 

65

 

 

 

 

 

 

 

 

 

65

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

 

(2,197

)

 

 

(4,917

)

 

 

226

 

 

 

(3,902

)

 

 

(5,745

)

 

 

34

 

Accounts receivable

 

(3,659

)

 

 

(640

)

 

 

(70

)

 

 

(4,124

)

 

 

(167

)

 

 

(240

)

Other non-current assets

 

(504

)

 

 

(106

)

 

 

(70

)

 

 

(1,152

)

 

 

(32

)

 

 

(12

)

Operating right-of-use assets/lease liabilities

 

105

 

 

 

20

 

 

 

2

 

 

 

106

 

 

 

18

 

 

 

7

 

Accounts payable and accrued expenses

 

(1,361

)

 

 

547

 

 

 

(89

)

 

 

1,275

 

 

 

2,419

 

 

 

(915

)

Deferred revenue

 

2,220

 

 

 

851

 

 

 

532

 

 

 

2,524

 

 

 

848

 

 

 

74

 

Net cash used in operating activities

 

(11,610

)

 

 

(9,218

)

 

 

(571

)

 

 

(21,675

)

 

 

(9,823

)

 

 

(5,345

)

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

(189

)

 

 

(144

)

 

 

(13

)

 

 

(626

)

 

 

(197

)

 

 

(23

)

Purchase of short-term investments

 

(188

)

 

 

(303,163

)

 

 

 

 

 

(453

)

 

 

(303,163

)

 

 

 

Proceeds from sales of short-term investments

 

197,001

 

 

 

 

 

 

 

 

 

208,700

 

 

 

 

 

 

 

Net cash provided by / (used in) investing activities

 

196,624

 

 

 

(303,307

)

 

 

(13

)

 

 

207,621

 

 

 

(303,360

)

 

 

(23

)

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

Proceeds from the exercise of common stock options

 

58

 

 

 

5

 

 

 

 

 

 

79

 

 

 

22

 

 

 

 

Taxes paid related to net share settlement of equity awards

 

(1,006

)

 

 

 

 

 

 

 

 

(1,011

)

 

 

 

 

 

 

Proceeds from note payable

 

 

 

 

 

 

 

1,165

 

 

 

 

 

 

 

 

 

1,165

 

Repayment of note payable

 

 

 

 

(1,165

)

 

 

 

 

 

 

 

 

(1,165

)

 

 

 

Proceeds from recapitalization of EIC, net of issuance costs

 

 

 

 

216,758

 

 

 

 

 

 

 

 

 

214,988

 

 

 

 

Proceeds from sale of common stock in PIPE, net of issuance costs

 

 

 

 

119,634

 

 

 

 

 

 

 

 

 

119,634

 

 

 

 

Net cash (used in) / provided by financing activities

 

(948

)

 

 

335,232

 

 

 

1,165

 

 

 

(932

)

 

 

333,479

 

 

 

1,165

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of foreign exchange rate changes on cash balances

 

4

 

 

 

 

 

 

 

 

 

7

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents and restricted cash

 

184,070

 

 

 

22,707

 

 

 

581

 

 

 

185,021

 

 

 

20,296

 

 

 

(4,203

)

Cash and cash equivalents and restricted cash - beginning

 

4,176

 

 

 

7,926

 

 

 

12,584

 

 

 

3,225

 

 

 

10,337

 

 

 

17,368

 

Cash and cash equivalents and restricted cash - ending

$

188,246

 

 

$

30,633

 

 

$

13,165

 

 

$

188,246

 

 

$

30,633

 

 

$

13,165

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to the unaudited interim condensed consolidated balance sheets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

186,556

 

 

$

30,003

 

 

$

13,049

 

 

$

186,556

 

 

$

30,003

 

 

$

13,049

 

Restricted cash

 

1,690

 

 

 

630

 

 

 

116

 

 

 

1,690

 

 

 

630

 

 

 

116

 

Total

$

188,246

 

 

$

30,633

 

 

$

13,165

 

 

$

188,246

 

 

$

30,633

 

 

$

13,165

 

Non-cash investing and financing activities

 

 

 

 

 

 

 

 

 

 

 

New leases under ASC 842 entered into during the period

$

5,456

 

 

$

1

 

 

$

21

 

 

$

5,871

 

 

$

13

 

 

$

21

 

 

BLADE AIR MOBILITY, INC.
SEATS FLOWN - ALL PASSENGER FLIGHTS
(unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2020

 

2022

 

2021

 

2020

Seats flown – all passenger flights(1)

28,241

 

5,971

 

696

 

46,735

 

8,226

 

5,274

__________
(1) Prior period amounts have been updated to conform to current period presentation.

BLADE AIR MOBILITY, INC.
RECONCILIATION OF REPORTED REVENUE TO PRO FORMA REVENUE
(in thousands except percentages, unaudited)

The following unaudited pro forma financial information presents what our revenue would have been had Trinity and the exclusive rights to Helijet International, Inc's scheduled passenger routes in Canada been acquired and purchased, respectively, on January 1, 2021.

 

Three months ended June 30

 

 

 

 

 

 

 

 

Total

 

Short Distance

 

MediMobility
Organ Transport

 

Jet and Other

Reported Revenue three months ended June 30, 2021

$

12,951

 

 

$

5,798

 

 

$

1,550

 

 

$

5,603

 

Impact of Trinity

 

5,669

 

 

 

 

 

 

5,669

 

 

 

 

Impact of Canada

 

390

 

 

 

390

 

 

 

 

 

 

 

Pro forma Revenue

$

19,010

 

 

$

6,188

 

 

$

7,219

 

 

$

5,603

 

 

 

 

 

 

 

 

 

Reported Revenue three months ended June 30, 2022

$

35,633

 

 

$

10,963

 

 

$

17,249

 

 

$

7,421

 

Pro forma change in revenue

 

87

%

 

 

77

%

 

 

139

%

 

 

32

%

 

Six months ended June 30

 

 

 

 

 

 

 

 

Total

 

Short Distance

 

MediMobility
Organ Transport

 

Jet and Other

Reported Revenue six months ended June 30, 2021

$

22,224

 

 

$

6,849

 

 

$

2,885

 

 

$

12,490

 

Impact of Trinity

 

9,995

 

 

 

 

 

 

9,995

 

 

 

 

Impact of Canada

 

828

 

 

 

828

 

 

 

 

 

 

 

Pro forma Revenue

$

33,047

 

 

$

7,677

 

 

$

12,880

 

 

$

12,490

 

 

 

 

 

 

 

 

 

Reported Revenue six months ended June 30, 2022

$

62,263

 

 

$

15,166

 

 

$

29,924

 

 

$

17,173

 

Pro forma change in revenue

 

88

%

 

 

98

%

 

 

132

%

 

 

37

%