Bristow Group, Inc. · NYSE:VTOL
Bristow — Q4 FY2013 Earnings Presentation
43 slides from Bristow's earnings presentation, May 23, 2013
Slide 1: Fourth Quarter FY13 Earnings Presentation
Exhibit 99.1 Fourth Quarter FY13 Earnings Presentation Bristow Group Inc. May 23, 2013
Slide 2: Fourth quarter earnings call agenda
Fourth 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 Closing remarks Bill Chiles, President and CEO Questions and answers
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: Forward-looking statements (continued)
Forward-looking statements (continued) changes in foreign exchange rates and controls; risks associated with international operations; operating risks inherent in our business, including the possibility of declining safety performance; general economic conditions including the capital and credit mar
Slide 5: Chief Executive Officer comments
Chief Executive Officer comments Bill Chiles , President and CEO 5
Slide 6: Operational safety review
Operational safety review Total Recordable Injury Rate* per 200,000 Commercial Air Accident Rate* per 100,000 man-hours (cumulative) Flight Hours (Fiscal Year) 1 3 0.5 0.32 0.35 0.31 0.28 0.28 0.26 0.16 0.11 0.22 0.12 0.10 0.13 0 2 A M J J A S O N D J F M FY13 1 0.96 Lost Work Case Rate* per 200,000
Slide 7: Q4 and FY13 highlights
Q4 and FY13 highlights • Q4 operating revenue of $350.7M (10% increase • FY13 operating revenue of $1.3B (12.1% increase from Q4 FY12, 1.2% increase from Q3 FY13) from FY12) • Q4 GAAP EPS of $1.11 (184.6% increase from Q4 • FY13 GAAP EPS of $3.57 (106.4% increase from FY12, 11% increase from Q3 FY13
Slide 8: Market environment outlook
Market environment outlook • Despite continued volatility, Brent prices remain above $100 per barrel for the foreseeable future • Offshore/deepwater and harsh environment remains a primary driver of IOC and NOC production growth • Exploration success due to technological advances continues to unlock
Slide 9: EC225 fleet update
EC225 fleet update • ~80 EC225 continue to be suspended from operations globally with 16 Bristow aircraft affected, mainly located in Aberdeen • Eurocopter has indicated that they have determined the root causes of the gear shaft failure • The definitive solution to the problem will be a redesign of
Slide 10: Europe (EBU)
Europe (EBU) • Europe represented 39% of Bristow operating revenue and 42% of adjusted EBITDAR* in Q4 FY13 • Operating revenue increased to $129.3M in Q4 FY13 from $121.0M in Q4 FY12 despite decreased flying activity • Adjusted EBITDAR increased to $49.5M in Q4 FY13 from $43.7M in Q4 FY12 and adjust
Slide 11: UK SAR update
UK SAR update • Ten bases equipped with 22 Stornoway technologically-advanced Sumburgh helicopters Inverness • Two training aircraft are scheduled to be delivered in Prestwick FY15 with the revenue anticipated to build between FY16 to FY18 as operational aircraft come on station Humberside • Contrac
Slide 12: West Africa (WASBU)
West Africa (WASBU) • Nigeria represented 22% of Bristow operating revenue and 20% of adjusted EBITDAR* in Q4 FY13 • Operating revenue increased by 11.8% to $74.0M in Q4 FY13 from $66.2M in Q4 FY12 due to an increase in flight hours from new contracts and ad hoc work • Adjusted EBITDAR decreased sli
Slide 13: North America (NABU)
North America (NABU) • North America represented 17% of Bristow operating revenue and 14% of adjusted EBITDAR* in Q4 FY13 • Operating revenue increased 33% to $56.3M in Q4 FY13 from $42.3M in Q4 FY12 as a result of a shift toward larger a/c and improved terms • Eight aircraft dry leased to Cougar in
Slide 14: Australia (AUSBU)
Australia (AUSBU) • Australia represented 12% of Bristow operating revenue and 9% of adjusted EBITDAR* in Q4 FY13 • Operating revenue decreased 6.4% to $40.6M in Q4 FY13 from $43.4M in Q4 FY12 due to short-term contract roll-off • Adjusted EBITDAR decreased to $10.6M in Q4 FY13 from $15.5M in Q4 FY1
Slide 15: Other International (OIBU)
Other International (OIBU) • Other International represented 10% of Bristow operating revenue and 15% of adjusted EBITDAR* in Q4 FY13 • Operating revenue stayed flat at $34.8M in Q4 FY13 vs $34.6M in Q4 FY12 • Adjusted EBITDAR increased 21.2% to $18.0M in Q4 FY13 vs $14.8M in Q4 FY12 and adjusted EB
Slide 16: Financial discussion
Financial discussion Jonathan Baliff , SVP and CFO 16
Slide 17: Financial highlights: Adjusted EPS Summary
Financial highlights: Adjusted EPS Summary Q4 FY12 to Q4 FY13 adjusted EPS bridge $0.08 $0.27 $0.02 $1.22 $1.01 Q4 FY12 Operations Corporate and Other FX Changes Q4 FY13 FY12 to FY13 adjusted EPS bridge $0.39 $0.10 $0.95 $3.78 $3.12 FY12 Operations Corporate and Other FX Changes FY13 * Adjusted EPS
Slide 18: Financial highlights: Adjusted EBITDAR Summary
Financial highlights: Adjusted EBITDAR Summary Q4 FY12 to Q4 FY13 adjusted EBITDAR bridge (in millions) $7.9 $1.3 $12.7 $103.0 $99.5 Q4 FY12 Operations Corporate and Other FX Changes Q4 FY13 FY12 to FY13 adjusted EBITDAR bridge (in millions) $4.8 $13.3 $70.0 $381.0 $319.5 FY12 Operations Corporate a
Slide 19: LACE and LACE rate continue to increase
LACE and LACE rate continue to increase led by new technology a/c and improved utilization/terms Consolidated commerical aircraft Large Aircraft Equivalent (LACE)* 350 170 10 295 290 8.35 300 279 7.89 268 271 7.15 8 250 6.49 6.14 160 200 6 164 159 158 153 149 LACE* 150 164 4 LACE Rate * 150 159 100
Slide 20: Continuous improvement delivered stronger adj. EBITDAR
Continuous commercial and operational improvement delivered stronger adj. EBITDAR 400 29% 381 28% 350 319 27% 298 300 26% 268 25% 247 250 24% 200 23% FY09 FY10 FY11 FY12 FY13 Adj. EBITDAR Adj. EBITDAR margin 20
Slide 21: Recent quarterly and yearly BVA
Recent quarterly and yearly BVA Significant year-over-year improvement in FY13 Absolute BVA* Q1 FY12Q4 – FY13 • Q4 FY13 BVA is positive $9.4M 20 15 13.6 • FY13 consolidated BVA is 10 9.3 9.4 positive $22.7M, a $23.4M 5 0 1.1 1.9 2.1 increase from FY12 0 Q1 FY12Q2 FY12Q3 FY12Q4 FY12Q1 FY13Q2 FY13Q3 F
Slide 22: Progress on BVA yields stronger cash flow and liquidity
Our progress on BVA yields stronger operating cash flow generation and better liquidity Net cash provided by operating activities* Total liquidity as of March 31, 300 450 415 267 402 400 250 231 350 195 300 216 200 261 262 250 151 150 128 200 116 178 100 150 78 100 199 50 144 140 50 100 0 - FY09 FY1
Slide 23: Financial highlights: FY14 guidance
Financial highlights: FY14 guidance • FY14 adjusted EPS guidance range of $4.20 - $4.50, excluding special items and a/c sales LACE (Large AirCraft Equivalent) ~ 173 - 177 Interest expense ~ $30 - $35M LACE Rate ~ $8.30 - $8.60M Rent expense (a/c only) ~ $85 - $90M G & A expense (all inclusive) ~ $1
Slide 24: Long term adjusted earnings guidance
Financial highlights: Long term adjusted earnings guidance UK SAR expected to contribute • Bristow’s 5 year historical adj. ~$1.00 to adj. EPS by FY18 EPS of 10% growth shows resiliency through economic downturns • Our FY13 adj. EPS growth of 21% benefitted from the accelerating shift to deeper wate
Slide 25: Conclusions
Conclusions • Safety continues to be our #1 priority as we strive to achieve Target Zero • Record year-over-year revenue, cash flow and bottom line earnings in FY13 demonstrate the uniqueness and strength of our business model and balance sheet • Bristow’s largest share of revenue is increasingly re
Slide 26: Appendix
Appendix BEC ERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 27: Organizational chart - as of March 31, 2013
Organizational chart - as of March 31, 2013 Operated Aircraft Affiliated Aircraft Bristow owned and/or operated Bristow affiliates and joint 351 aircraft as of March 31, 2013 ventures operated 201 aircraft as of March 31, 2013 Key Corporate Business Unit (% of FY13 Operating Revenue) Region ( # of a
Slide 28: Aircraft Fleet – Medium and Large
Aircraft Fleet – Medium and Large as of March 31, 2013 Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Large Helicopters Large capacity 18-25 passengers AS332L Super Puma 18 Twin Turbine 20 - 20 - AW189 16 Twin Turbine - - - 6 EC175 16 Twin Turbine - - - 5 EC225 25 Twin Turbine 20 - 20 3
Slide 29: Aircraft Fleet – Small, Training and Fixed
Aircraft Fleet – Small, Training and Fixed as of March 31, 2013 (continued) Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Small Helicopters Small capacity 4-7 passengers Bell 206B 4 Turbine 1 2 3 - Bell 206 L-3 6 Turbine 4 6 10 - Bell 206 L-4 6 Turbine 28 1 29 - Bell 407 6 Turbine 37 -
Slide 30: Operating lease strategy
Operating lease strategy: lowering the cost and amount of capital needed to grow Leased aircraft as of March 31, 2013 Small Medium Large Total Leased LACE Total LACE % Leased EBU - 1 16 17 17 55 30% WASBU - 1 - 1 1 21 2% NABU 1 11 2 14 8 37 21% AUSBU 2 - 3 5 4 19 19% OIBU - - - - - 27 - Total 3 13 2
Slide 31: Consolidated fleet changes and aircraft sales for Q4 FY13
Consolidated fleet changes and aircraft sales for Q4 FY13 Fleet changes Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 YTD Fleet Count Beginning 361 357 349 356 361 Held for sale aircraft in consolidated fleet Delivered - B412EP 1 1 Small Medium Large Total S-92 2 10 3 15 EBU - - - - EC225 1 1 1 3 Total Delivered
Slide 32: Operating revenue, LACE and LACE Rate by BU
Operating revenue, LACE and LACE Rate by BU Operating Revenue, LACE, and LACE Rate by BU FY13 1 2,3 Op revenue LACE LACE Rate EBU 502 55 9.13 WASBU 282 21 13.28 NABU 225 37 6.12 AUSBU 159 19 8.58 IBU 132 27 4.94 Total 1,300 158 8.35 1) $ in millions 2) LACE Rate is annualized 3) $ in millions per LA
Slide 33: Historical LACE and LACE Rate by BU
Historical LACE and LACE Rate by BU LACE 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBU 42 43 48 46 44 46 46 45 47 45 51 55 WASBU 24 24 21 22 23 22 22 22 22 22 20 21 NABU 39 35 34 29 30 29 30 30 30 31 39 37 AUSBU 20 23 24 20 19 20 20 19 18 17 17 19 OIBU 33 33 33 38 39 38 38 34 32 28 27 27 Co
Slide 34: Order and options book as of March 31, 2013
Order and options book as of March 31, 2013 ORDER BOOK* OPTIONS BOOK Helicopter Helicopter # Class Delivery Date Location Contracted # Class Delivery Date 1 Large June 2013 EBU 4 of 4 1 Large June 2014 2 Large September 2013 NABU 1 of 2 1 Large September 2014 1 Large September 2013 EBU 3 Large Decem
Slide 35: Adjusted EBITDAR margin trend
Adjusted EBITDAR margin* trend (fiscal year ended) 2010 2011 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year EBU 31.2% 31.7% 31.9% 28.0% 30.8% 29.8% 31.5% 34.6% 34.4% 32.7% WASBU 31.7% 36.8% 33.7% 39.1% 36.0% 33.7% 36.9% 35.8% 34.3% 35.2% NABU 18.3% 20.0% 14.9% 17.7% 17.8% 20.8% 25.8% 15.9% 8.5% 18.5% A
Slide 36: Adjusted EBITDAR reconciliation
Adjusted EBITDAR* reconciliation * Adjusted EBITDAR excludes special items and asset dispositions. 36
Slide 37: Bristow Value Added (BVA) sample calculation
Bristow Value Added (BVA) Sample calculation for Q4 FY13 and Q4 FY12 Bristow Value Added = Gross Cash Flow – (Gross Operating Assets X Capital Charge) BVA = GCF - ( GOA X 10.5%** ) Bristow Value Added calculation for Q4 FY13 $9.4 = $94.5* - ( $3,241* X 2.625%**) Bristow Value Added calculation for Q
Slide 38: Gross cash flow reconciliation
Gross cash flow reconciliation (in millions) Gross Cash Flow Reconciliation Q4 FY13 Q4 FY12 Net Income 40.4 14.2 Depreciation and Amortization 26.7 25.3 Interest Expense 10.3 10.0 Interest Income (0.3) (0.1) Rent 18.3 15.1 Other Income/expense-net (0.4) (0.6) Earnings of Discontinued Operations - -
Slide 39: Adjusted gross operating asset reconciliation
Adjusted gross operating asset reconciliation (in millions) Adjusted Gross Operating Assets Reconciliation Q4 FY13 Q4 FY12 Total Assets 2,951 2,740 Accumulated Depreciation 494 458 Capitalized Operating Leases 327 190 Cash and Cash Equivalents (216) (262) Investment in Unconsolidated Entities (272)
Slide 40: GAAP reconciliation
GAAP reconciliation Three Months Ended Fiscal Year Ended March 31, March 31, 2013 2012 2013 2012 (In thousands, except per share amounts) (Unaudited) Adjusted EBITDAR $ 103,016 $ 99459 $ 380,966 $ 319,488 Gain (loss) on disposal of assets 7,249 (28,610) 8,068 (31,670) Special items (1,894) (3,451) (
Slide 41: Leverage reconciliation
Leverage reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of March 31, 2013 $ 787.3 $ 1,611.0 $ 2,398.2 32.8% Adjust for: Unfunded Pension Liability 126.6 126.6 NPV of Lease Obligations 301.9 301.9 Letters of credit 2.6 2.6 Adjusted $ 1,218.4 (d) $ 1
Slide 42: Bristow net asset FMV expected to remain resilient
Bristow net asset FMV including UK SAR aircraft are expected to remain resilient and higher than current net asset FMV/share 75.00 ~71.00 The UK SAR aircraft are expected to add 70.00 significant net asset FMV in FY18, even after 65.00 netting the imputed leases 60.90 60.00 54.63 55.00 50.00 43.98 4
Slide 43: 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 43