U.S. Senate candidate, Tim Sheehy, touts his experience as an entrepreneur as one of the major things that qualifies him for a seat in the Senate.  We’ve already pointed out the irony of the fact that his business, Bridger Aerospace, makes the vast majority of its money on government firefighting contracts.  Now The Montana Free Press is reporting that Bridger Aerospace is “deeply in the red” in a thorough story using Security Exchange Commission (SEC) reports.  https://montanafreepress.org/2024/04/09/u-s-senate-hopefuls-company-reported-losses-of-more-than-77-million-in-2023/ 

Sheehy Wearing Rose-Colored  Glasses While Pulling Wool Over Investors’ Eyes

While the filings with the SEC clearly show a company in deep financial trouble, with losses of $77 million last year, Bridger Aerospace Investor Relations issued a glowing report announcing record earnings of $67 million in 2023 (while bemoaning the lack of wildfires last year).  The report went on to say it had received record contract awards in 2023, including a $60 million exclusive contract with the Department of Interior. The report also asserts that the company is poised to grow over 80% in 2024.  

However, the disclaimer in the Investor Relations Report says in pertinent part, “Certain statements included in this press release are not historical facts but are forward-looking statements, including for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995.”  We’ll save you reading the whole thing because it is quite long containing lots of wiggle words.  Feel free to read it yourself at   https://ir.bridgeraerospace.com/news-events/press-releases/detail/37/bridger-aerospace-announces-record-2023-results-provides

Sheehy’s Filing With the SEC Tells a Different Story

The SEC filing begins with a note from the Bridger Aerospace’s own auditors which states, “As discussed in Note 1 to the financial statements, the Company has suffered recurring losses from operations, operating cash flow deficits, debt covenant violations, and insufficient liquidity to fund its operations that raise substantial doubt about its ability to continue as a going concern.”  

Montana Free Press quoted University of Montana  accounting professor Terri Herron who examined the financial reports as saying, “Management concluded that they may not be around in a year.”  

So Who Is On The Hook if Sheehy Goes Under?  You are! 

Well, actually people who live in Gallatin County. Of course stockholders stand to lose their investment but Sheehy is at risk of violating financial agreements resulting from a $160 million municipal bond agreement with Gallatin County which brought Bridger Aerospace’s long-term debt to $204.6 million.  The bond came with covenants that Bridger Aerospace must have the ability to cover debt with cash in the amount of at least $8 million.  If Sheehy defaults on the bond requirements, it appears Gallatin County could be on the hook.  

Bridger Aerospace said in the annual filing that it is out of compliance with the required debt service amount, and that it likely won’t be in compliance in the next 12 months. At the time of the report, the company apparently had the $8 million in cash but the report stated that it probably won’t in the future, because interest payments of $18.4 million are coming due soon. 

So, What Does It All Mean?

Of course all of this is complicated and confusing, so let us just boil it down a little for you.  Sheehy has a business in which 88% of his total income comes from the government in the form of firefighting contracts.  A big part of the way he has financed his operation comes from a Gallatin County bond offering.  We assume that means a lower interest rate, because they are government issued bonds.  Welcome to  “entrepreneurship” Tim Sheehy style. Step right up to the public trough and proclaim your commitment to private enterprise.  

Final Notes 

In the short time the public microscope has been on Tim Sheehy, he has not measured up.  In the last week he has admitted lying to law enforcement about an old bullet wound, and we have been treated to an inside glimpse of his business ethics. Unfortunately Montana voters don’t seem to care much about ethics, electing Ryan Zinke, Greg Gianforte, Matt Rosendale and Steve Daines, all coming from the cesspool the Republican Party has become. 

This post has been written largely with the information uncovered by the Montana Free Press and reporter Arren Kimbel-Sannit.  Though we did go through the SEC reports and Bridger Aerospace Investor Relations Report, the truth is we wouldn’t have understood most of it without Kimbel-Sannit’s reporting.