Bristow Group, Inc. · NYSE:VTOL
Bristow — Q2 FY2012 Earnings Presentation
31 slides from Bristow's earnings presentation, Nov 8, 2011
Slide 1: Second Quarter FY 2012 Earnings Presentation
Second Quarter FY 2012 Earnings Presentation Bristow Group Inc. November 8, 2011 Exhibit 99.1
Slide 2: Second quarter earnings call agenda
Second quarter earnings call agenda Introduction CEO remarks and operational highlights Current and future financial performance - FY12 Q2 Financial discussion - Update on capital return Closing remarks Questions and answers Linda McNeill, Director Investor Relations Bill Chiles, President and CEO J
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
Slide 5: Operational safety review
Operational safety review 0.33 0.34 0.34 0.31 0.28 0.43 0.00 0.00 0.25 0.18 0.27 0.22 0.00 0.50 1.00 O N D J F M A M J J A S 1.17 0.78 0.78 0.00 0.00 1.02 0.54 0.00 1.00 2.00 YTD 2012 * Includes consolidated commercial operations only 0.16 0.13 0.16 0.14 0.13 0.15 0.14 0.13 0.23 0.18 0.20 0.17 0.00
Slide 6: Q2 FY12 highlights
Q2 FY12 highlights • Quarterly performance was negatively affected by a non-cash inventory write down, a decrease in earnings from unconsolidated affiliates, an impairment charge resulting from a base closure, and the loss on the disposal of a fixed wing aircraft • Strong cash flow generation allows
Slide 7: Current market environment
Current market environment • Brent remains above $100 in the face of weak global economy. OPEC expected to defend $90/b - $100/b Brent • Momentum continues to build in the U.S. Gulf of Mexico with restart of deepwater drilling • International oil service up-cycle is continuing to steadily unfold; ho
Slide 8: BRR@ ead AUCIBENTS / ZERG DOWNTIME J ZERO COMPLAINTS 2F Bristow
BRR@ ead AUCIBENTS / ZERG DOWNTIME J ZERO COMPLAINTS 2F Bristow
Slide 9: i i i H H H H H i i i i i i
i i i H H H H H i i i i i i i i i H H H fi BAGG) rena accioents / 2eR0 QOWRTIWE / ZERG COMPLAINTS 2 Bristow
Slide 10: BAGG lend ACCIDENTS / ZERO DOWNTIME / ZERG COMPLAINTS A Bristow
BAGG lend ACCIDENTS / ZERO DOWNTIME / ZERG COMPLAINTS A Bristow
Slide 11: Other International (OIBU)
Other International (OIBU) Consolidated in OIBU Unconsolidated Affiliate • OIBU represented 12% of total Bristow operating revenue and 5% of operating income for Q2 FY12 • Operating revenue of $35.2M slightly lower than Q2 FY11 of $36M; Operating income, excluding Lider, is $9M same as Q2 prior year
Slide 12: North America (NABU)
North America (NABU) • • Operating revenue of $47.9M represents 16% of total Bristow operating revenue • Operating income decreased to $2.6M vs. $8.9M in the prior year quarter • Operating margin of 5.4% compared to 16.4% prior year quarter, which was higher due to increased flying associated with o
Slide 13: Financial discussion
Financial discussion Jonathan Baliff, SVP and CFO
Slide 14: Financial highlights: Adjusted EPS & EBITDA Summary
Financial highlights: Adjusted EPS & EBITDA Summary Q2 FY11 to Q2 FY12 adjusted EPS bridge Q2 FY11 to Q2 FY12 adjusted EBITDA bridge (in millions) * Adjusted EPS, adjusted operating income and adjusted EBITDA amounts exclude gains and losses on dispositions of assets and any special items during the
Slide 15: Financial highlights: Inventory write-down and special items
Financial highlights: Inventory write-down and special items • There has been a marked acceleration in our client’s desire for newer equipment in FY12 • Bristow will continue to be proactive with new technology as the premier service provider following through on the Client Promise • So in 2QFY12, o
Slide 16: Absolute BVA – Six Quarters
Absolute BVA – Six Quarters Sequential quarterly improvement needs to continue Absolute BVA Q1FY11 - Q2FY12 -15.4 0.0 -3.6 -1.1 +4.2 -8.6 -20 -15 -10 -5 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12
Slide 17: Financial highlights: Strong operating cash flow generation
Financial highlights: Strong operating cash flow generation - 1HFY08 1HFY09 1HFY10 1HFY11 1HFY12 We generated 69% more operating cash flow in the first half of FY12 compared to the same period last year
Slide 18: Commitment to balanced shareholder returns: Up to $100 million share repurchase
Commitment to balanced shareholder returns: Up to $100 million share repurchase authorization • We are confident in the underlying ability of Bristow to generate cash flow while growing the business across the globe and maintaining a prudent financial profile • The $100 million share buyback authori
Slide 19: Financial highlights: Revising and narrowing of FY12 guidance
Financial highlights: Revising and narrowing of FY12 guidance Phase I Revision • EPS guidance range (as of November 8, 2011) $3.05 - $3.30, excluding aircraft sales and special items • Depreciation and amortization expense ~$87 – $93 million • SG & A expense ~ $135 - $140 million • Interest expense
Slide 20: Conclusions
Conclusions • Client Promise is advancing and will have far reaching impacts on growth, fleet management and our valuable service offerings • Operating expenses this quarter were incurred in anticipation of future revenue growth, and resulted in disappointing 2QFY12 performance • We are revising our
Slide 21: WRG) rewn accinewts / 26R0 DOWRTINE / ZERO COMPLAINTS
WRG) rewn accinewts / 26R0 DOWRTINE / ZERO COMPLAINTS
Slide 22: Organizational Chart - as of September 30, 2011
Organizational Chart - as of September 30, 2011 Business Unit (* % of Q2 FY12 Operating Revenue) Corporate Region ( of Aircraft / of Locations) Joint Venture (No. of aircraft) Key Operated Aircraft Bristow owns and/or operates 366 aircraft as of September 30, 2011 Affiliated Aircraft Bristow affilia
Slide 23: Aircraft Fleet – Medium and Large
Aircraft Fleet – Medium and Large As of September 30, 2011 Next Generation Aircraft Medium capacity 12-16 passengers Large capacity 18-25 passengers Mature Aircraft Models Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Large Helicopters AS332L Super Puma Twin Turbine - - Bell 214ST Twin
Slide 24: Aircraft Fleet – Small, Training and Fixed
Aircraft Fleet – Small, Training and Fixed As of September 30, 2011 (continued) Training Helicopters AS355 Twin Turbine - - Bell 206B Single Engine - - Robinson R22 Piston - - Robinson R44 Piston - - Sikorsky 300CB/Cbi Piston - - AS350BB Turbine - - Fixed Wing - - - - Fixed Wing - Total TOTAL LACE (
Slide 25: Consolidated Fleet Changes and Aircraft Sales for Q2 FY12
Consolidated Fleet Changes and Aircraft Sales for Q2 FY12 Q 1 FY12 Q 2 FY12 YTD Fleet Count Beginning Period Delivered EC225 S-92 Total Delivered Removed Sales (3) (5) (8) Other* (4) (4) Total Removed (3) (9) (12) * Includes net lease returns and commencements # of A/C Sold Cash Received* Gain/ Loss
Slide 26: Order and options book as of September 30, 2011
Order and options book as of September 30, 2011 Helicopter Class Delivery Date Location Contracted Helicopter Class Delivery Date Location Large December 2011 NABU Medium December 2012 EBU Large December 2011 EBU Large December 2012 EBU Large March 2012 EBU Medium June 2013 EBU Large June 2012 EBU L
Slide 27: Operating margin trend
Operating margin trend As Reported Full Year Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 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% WASBU 17.9% 21.5% 24.9% 29.3% 25.4% 34.7% 28.5% 26.5% 29.5% 29.8% 24.0% 27.4% 20.6% 25.2% NABU 14.5% 12.1% 8.9% 9.7% 3.3%
Slide 28: EBIDTAR reconciliation
EBIDTAR reconciliation ($ in millions) Income from continuing operations $8.8 $27.9 $42.5 $40.3 $49.6 Income tax expense 3.8 13.3 19.1 17.5 18.5 Interest expense 18.5 18.4 15.8 14.9 16.8 Depreciation and amortization 32.0 33.1 33.9 37.5 39.4 EBITDA Subtotal 63.1 92.7 111.4 110.2 124.3 Aircraft renta
Slide 29: EBIDTAR reconciliation (continued)
EBIDTAR reconciliation (continued) ($ in millions) Income from continuing operations $113.5 $133.3 Income tax expense $29.0 $7.1 Interest expense $42.4 $46.2 Gain on disposal of assets (18.7) (10.2) Depreciation and amortization 74.7 90.9 EBITDA Subtotal 240.9 267.3 Aircraft rental expense 9.1 5.9 E
Slide 30: Adjusted EBITDA
Adjusted EBITDA Gain (loss) on disposal of assets Special items Interest expense Depreciation and amortization Benefit (provision) for income taxes Net income Adjusted operating incorne Gain (loss) on disposal of assets Special items Operating income Adjusted net income Gain (loss) on disposal of as
Slide 31: Contact Us
Contact Us Bristow Group Inc. (NYSE: BRS) 2000 West Sam Houston Parkway South Suite 1700, Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com