Bristow Group, Inc. · NYSE:VTOL
Bristow — Q3 FY2012 Earnings Presentation
34 slides from Bristow's earnings presentation, Feb 3, 2012
Slide 1: Third Quarter FY 2012 Earnings Presentation
Exhibit 99.1 Third Quarter FY 2012 Earnings Presentation Bristow Group Inc. February 3, 2012
Slide 2: Third quarter earnings call agenda
Third quarter earnings call agenda Introduction Linda McNeill, Director Investor Relations CEO remarks and operational highlights Bill Chiles, President and CEO Current and future financial performance Jonathan Baliff, SVP and CFO - FY12 Q3 Financial discussion - Update on capital return Closing rem
Slide 3: Forward-looking statements
Forward-looking statements This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about our future business, operations, capital expenditures, fleet composition, capabilities
Slide 4: Chief Executive comments
Chief Executive comments Bill Chiles, President and CEO 4
Slide 5: Operational safety review
Operational safety review Air Accident Rate* per 100,000 Total Reportable Injury Rate per 200,000 man- Flight Hours (Fiscal Year) hours (cumulative) 0.43 0.50 0.31 0.28 0.25 0.28 0.23 0.25 2.00 0.18 0.22 0.19 0.00 0.00 0.00 J F M A M J J A S O N D FY11 YTD FY12 1.17 1.00 Lost Work Case Rate per 200,
Slide 6: Q3 FY12 highlights
Q3 FY12 highlights • Q3 operating revenue of $296.7M (5% increase from Q3 FY11, no change from Q2 FY12) • Q3 GAAP EPS of $0.70 (38% decrease from Q3 FY11, up from $0.07 in Q2 FY12) • Q3 adjusted EPS * of $0.76 (7% increase from Q3 FY11, 20.6% increase from Q2 FY12) • Q3 operating income of $43.6M (6
Slide 7: Current market environment
Current market environment • Global spending on E&P is expected to increase 10% to $600 billion in 2012 versus $544 billion in 2011; forecast to top $800 billion by 2015 • The top 20 E&P spenders globally account for nearly 57% of total spending. Of these companies, five of them are our top revenue
Slide 8: Europe (EBU)
Europe (EBU) • Europe represents 37% of total Bristow operating revenue and operating income in Q3 FY12 • Operating revenue increased to $106.8M from $100.1M in Q3 FY11 reflecting higher activity levels • Operating margin declined to 19.5% from 25.4% in prior year quarter largely as a result of labo
Slide 9: West Africa (WASBU)
West Africa (WASBU) • Nigeria represents 23% of total Bristow operating revenue and 32% of operating income in Q3 FY12 • Operating revenue of $66.9M increased from $52.6M in Q3 FY11 while operating income increased to $18.1M from $16M in the prior year quarter • Operating margin of 27.1% vs 30.4% in
Slide 10: Australia (AUSBU)
Australia (AUSBU) • Australia represented 12% of total Bristow operating revenue and 6% of operating income in Q3 FY12 • Operating revenue of $33.5M declined from $37.9M in Q3 prior year due to the previously announced lost work • Operating income decreased from $7.1M in Q3 FY11 to $3.1M in Q3 FY12
Slide 11: Other International (OIBU)
Other International (OIBU) • OIBU represented 13% of total Bristow operating revenue and 22% of operating income for Q3 FY12 • Operating revenue decreased to $37.2M versus $41.2M in Q3 FY11 due to the cessation of providing maintenance and support for aircraft in Mexico and Brazil and the ceased ope
Slide 12: North America (NABU)
North America (NABU) • Operating revenue of $42.4M represents 15% of total Bristow operating revenue • Operating income relatively flat $1.8M vs. $1.9M in the prior year quarter • Operating margin of 4.3% relatively flat compared to 4.2% prior year quarter • Ability to maintain operating income and
Slide 13: Financial discussion
Financial discussion Jonathan Baliff, SVP and CFO 13
Slide 14: Financial highlights: Adjusted EPS & EBITDA Summary
Financial highlights: Adjusted EPS & EBITDA Summary Q3 FY11 to Q3 FY12 adjusted EPS bridge $0.09 $0.03 $0.01 $0.71 $0.76 Q3FY2011 Operations Corporate and Other FX Changes Q3FY2012 Q3 FY11 to Q3 FY12 adjusted EBITDA bridge (in millions) $5.2 $1.5 $0.8 $64.4 $68.9 Q3FY2011 Operations Corporate and Ot
Slide 15: LACE and LACE rate
LACE and LACE rate Consolidated commerical aircraft Large Aircraft Equivalent (LACE) 165 LACE 7.42 8 7.15 LACE Rate 6.49 7 350 323 324 162 5.72 6.14 295 290 300 279 277 6 159 4.92 250 5 200 156 164 4 156 161 164 159 153 155 161 150 3 153 159 100 156 2 155 150 153 50 1 0 147 0 FY07 FY08 FY09 FY10 FY1
Slide 16: Absolute BVA – Six Quarters
Absolute BVA – Six Quarters Sequential quarterly improvement needs to continue Absolute BVA Q2 FY11Q3 – FY12 See 10-Q/10-K for more information on BVA 16
Slide 17: Financial highlights: Strong operating cash flow generation
Financial highlights: Strong operating cash flow generation We generated 68% more operating cash flow through Q3 FY12 compared to the same period last year Net cash provided by operating activities Nine months ended December 31 17
Slide 18: Lowering the cost of capital proactively
Lowering the cost of capital proactively • Increased revolving credit facility to $200 million, the term loan to $250 million, extended the maturity date to December 2016 and lowered the credit spread by 62.5 basis points (26% reduction) • Demonstrating our belief in the value of our company, we ini
Slide 19: Operating lease strategy – opportunistically entering market
Operating lease strategy – opportunistically entering market • Aircraft leasing market is very attractive to Bristow, offering lower rates and better terms than previously anticipated • Our initial goal is to utilize this financing strategy for up to 20-30 percent of our LACE aircraft over the next
Slide 20: Financial highlights: Revised FY12 guidance
Financial highlights: Revised FY12 guidance • EPS guidance range $2.90 - $3.10, excluding aircraft sales and special items • Depreciation and amortization expense ~ $90 – $95 million • SG & A expense ~ $130 - $135 million • Interest expense ~ $35 - $40 million • Tax ~ 20% - 24 % (assuming revenue ea
Slide 21: Conclusions
Conclusions • We have just announced major commercial and operational changes that will enhance our operational execution and ensure that we deliver on our promises • Our key objective is to improve our safe and reliable operations while creating acceptable returns in our base business • Cash flow g
Slide 22: Appendix
Appendix BEC ERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 23: Organizational Chart - as of December 31, 2011
Organizational Chart - as of December 31, 2011 Bristow NABU EBU WASBU AUSBU OIBU BRS Academy 15%* 37% 21% 12% 12% 3% U.S. GoM – 80/7 UK –38/4 Nigeria – 48/7 Australia – 30/10 Mexico – 16/5 Florida – 54/1 Louisiana – 15/1 Alaska – 13/3 Brazil –10/9 Netherlands – 4/1 U. K. – 2/1 Trinidad – 10/1 Norway
Slide 24: Aircraft Fleet – Medium and Large
Aircraft Fleet – Medium and Large As of December 31, 2011 Aircraft Medium capacity 12-16 passengers Type No. of PAX Engine Consl Unconsl Total Ordered Large Helicopters AS332L Super Puma 18 Twin Turbine 30 - 30 - AW189 16 Twin Turbine - - - 6 EC225 25 Twin Turbine 18 - 18 - Mil MI 8 20 Twin Turbine
Slide 25: Aircraft Fleet – Small, Training and Fixed
Aircraft Fleet – Small, Training and Fixed As of December 31, 2011 (continued) Small capacity 4-7 passengers Training capacity 2-6 passengers Next Generation Aircraft Mature Aircraft Models •LACE does not include held for sale, training and fixed wing helicopters 25
Slide 26: Consolidated Fleet Changes and Aircraft Sales for Q3 FY12
Consolidated Fleet Changes and Aircraft Sales for Q3 FY12 Aircraft held for sale by BU Fleet changes EBU WASBU AUSBU OIBU NABU Total Large 3 - 3 - - 6 Medium 2 1 1 3 1 8 Q 1 FY12 Q 2 FY12 Q 3 FY12 YTD Small - 2 - - - 2 Fleet Count Beginning Period 373 372 366 373 Total 5 3 4 3 1 16 Delivered EC225 2
Slide 27: Order and options book as of December 31, 2011
Order and options book as of December 31, 2011 ORDER BOOK* OPTIONS BOOK Helicopter Helicopter # Class Delivery Date Location Contracted # Class Delivery Date Location 1 Large March 2012 EBU 1 of 1 4 Medium June 2012 EBU 1 Large June 2012 OIBU 1 of 1 1 Medium December 2012 OIBU 1 Large June 2012 WASB
Slide 28: Adjusted EBITDAR margin trend
Adjusted EBITDAR margin trend 27.0% 26.7% 26.4% 26.5% 26.0% 25.6% 25.5% 25.0% 9 Mos Ended 12/31 Full Year 25.0% 24.5% 24.0% 24.0% 23.5% 23.0% 22.5% 2008 2009 2010 2011 2012 1) Calculated by taking adjusted EBITDAR divided by operating revenue 2) Adjusted EBITDAR excludes special items and asset disp
Slide 29: Adjusted EBITDAR reconciliation
Adjusted EBITDAR reconciliation ($ in millions) March 31, 2006 2007 2008 2009 Income from continuing operations $54.5 $72.5 $107.7 $125.5 Income tax expense $14.7 $38.8 $44.5 $50.5 Interest expense $14.7 $10.9 $23.8 $35.1 Gain on disposal of assets ($0.1) ($10.6) ($9.4) ($9.1) Depreciation and amort
Slide 30: Operating margin trend
Operating margin trend Bristow Group Operating Margin Trend Actual 2008 2009 2010 2011 2012 As Reported Full Year Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 EBU 23.6% 19.3% 17.2% 16.7% 16.1% 18.1% 17.0% 18.0% 18.4% 19.6% 18.8% 18.8% 17.3% 16.8% 15.5% WASBU 17.9% 21.5% 24.9% 29.3% 25.4% 34.7% 2
Slide 31: GAAP reconciliation
GAAP reconciliation Three Months Ended Nine Months Ended December 31, December 31, 2011 2010 2011 2010 (In thousands, except per share amounts) Adjusted EBITDA .............................................................................. $ 68,933 $ 64,435 $ 189,132 $ 195,221 Gain (loss) on disposal
Slide 32: Special items reconciliation
Special items reconciliation Three Months Ended December 31, 2010 Adjusted Diluted Adjusted Earnings Operating Adjusted Adjusted Per Income EBITDA Net Income Share (In thousands, except per share amounts) Power-by-the-hour credit................................ $ 3,500 $ 3,500 $ 2,894 $ 0.08 Retirem
Slide 33: Leverage Reconciliation
Leverage Reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of December 31, 2011 $ 832.8 $ 1,523.5 $ 2,356.3 35.3% Adjust for: Unfunded Pension Liability 97.2 97.2 NPV of Lease Obligations 165.0 165.0 Guarantees 15.5 15.5 Letters of credit 1.7 1.7 Adju
Slide 34: Contact Us
Contact Us Bristow Group Inc. (NYSE: BRS) th 2103 City West Blvd., 4 Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com 34