Bristow Group, Inc. · NYSE:VTOL
Bristow — Q1 FY2013 Earnings Presentation
36 slides from Bristow's earnings presentation, Aug 7, 2012
Slide 1: First Quarter FY 2013 Earnings Presentation
Exhibit 99.1 First Quarter FY 2013 Earnings Presentation Bristow Group Inc. August 7, 2012
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 - Q1 FY13 financial results discussion - New contract awards Closing
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 Officer comments
Chief Executive Officer comments Bill Chiles, President and CEO 4
Slide 5: Operational safety review
Operational safety review Total Recordable Injury Rate* per 200,000 man- 1 hours (cumulative) Commercial Air Accident Rate* per 100,000 Flight Hours (Fiscal Year) 0.5 0.32 0.28 0.23 0.25 0.18 0.22 0.19 0.2 0.21 0.23 0.16 0.11 3 0 J A S O N D J F M A M J FY12 FY13 2 Lost Work Case Rate* per 200,000 1
Slide 6: Q1 FY13 Highlights
Q1 FY13 Highlights • Q1 operating revenue of $320.7M (12% increase from Q1 FY12, 1% increase from Q4 FY12) • Q1 GAAP EPS of $0.65 (14% increase from Q1 FY12, 67% increase from Q4 FY12) • Q1 adjusted EPS* of $0.81 (50% increase from Q1 FY12, 34% decrease from Q4 FY12) • Q1 adjusted EBITDAR* of $84.3M
Slide 7: Current market environment
Current market environment • Global E & P spending is expected to rise by 11% in 2012 even in the face of worldwide economic uncertainty and upcoming U.S. presidential elections • Supermajors continue to earmark deepwater and ultra deepwater projects, especially in response to weakness in the natura
Slide 8: Europe (EBU)
Europe (EBU) • Europe represented 39% of Bristow operating revenue and 42% of adjusted EBITDAR* in Q1 FY13 • Operating revenue increased to $123.2M in Q1 FY13 from $108.3M in Q1 FY12 with the addition of four large aircraft and increased activity with existing clients and new contracts in NNS and No
Slide 9: West Africa (WASBU)
West Africa (WASBU) • Nigeria represented 21% of Bristow operating revenue and 22% of adjusted EBITDAR* in Q1 FY13 • Operating revenue of $66.4M in Q1 FY13 increased 27% from $52.3M in Q1 FY12 due to strong activity and a 12% increase in flight hours compared to Q1 FY12 • Adjusted EBITDAR increased
Slide 10: North America (NABU)
North America (NABU) • • North America represented 17% of Bristow operating revenue and 13% of adjusted EBITDAR* in Q1 FY13 • Adjusted EBITDAR almost doubled to $12.2M in Q1 FY13 vs. $6.3M in Q1 FY12 and adjusted EBITDAR margin of 23.2% in Q1 FY13 increased significantly from 14.3% in Q1 FY12 • Sequ
Slide 11: Australia (AUSBU)
Australia (AUSBU) • Australia represented 12% of Bristow operating revenue and 11% of adjusted EBITDAR* in Q1 FY13 • Operating revenue of $38.2M in Q1 FY13 decreased from $40.9M in Q1 FY12 due to a decrease in overall flight activity • Adjusted EBITDAR increased to $10.3M in Q1 FY13 from $8.3M in Q1
Slide 12: Other International (OIBU)
Other International (OIBU) • Other International represented 11% of Bristow operating revenue and 12% of adjusted EBITDAR* in Q1 FY13 • Operating revenue decreased to $33.2M in Q1 FY13 vs. $34.5M in Q1 FY12 due to decrease in activity in Ghana and the end of a contract in the Baltic Sea • Adjusted E
Slide 13: Financial discussion
Financial discussion Jonathan Baliff, SVP and CFO 13
Slide 14: Financial highlights: Adjusted EPS and EBITDAR Summary
Financial highlights: Adjusted EPS and EBITDAR Summary Q1FY2012 to Q1FY2013 adjusted EPS bridge $0.08 $0.09 $0.28 $0.81 $0.54 Q1FY2012 Operations Corporate and Other FX Changes Q1FY2013 Q1FY2012 to Q1FY2013 adjusted EBITDAR bridge (in millions) $5.4 $4.0 $15.9 $84.3 $67.0 Q1FY2012 Operations Corpora
Slide 15: LACE rate increased with overall LACE declining due to sales of less productive aircraft
LACE rate increased with overall LACE declining due to sales of less productive aircraft Consolidated commerical aircraft Large Aircraft Equivalent (LACE) 350 8.55 350 9 7.89 295 290 8 300 279 300 7.15 268 263 6.49 7 6.14 250 250 6 LACE 200 200 5 164 LACE Rate 159 153 149 147 ($ in millions) 150 150
Slide 16: BVA – Six Quarters
BVA – Six Quarters Year over year improvement for Q1 FY13 • Q1 FY13 BVA is $1.9M, BVA* Q4 FY11 Q1 – FY13 which is a $17.3M 20 improvement over Q1 13.6 FY12 15 • Positive year-over-year 10 change in BVA is driven 1.1 1.9 5 by: 0 Revenue growth in Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Europe
Slide 17: Our progress on BVA continues with stronger operating cash flow generation in Q1 FY13
Our progress on BVA continues with stronger operating cash flow generation in Q1 FY13 Net cash provided by operating activities 320 231.3 280 240 195.4 200 151.4 127.9 160 120 80 40 52.9 55.4 29.6 35.0 25.7 0 FY09 FY10 FY11 FY12 Q1 FY13 See 10-Q for more information on cash flow provided by operatin
Slide 18: Recently announced contract awards provide growth and demonstrate success of Client Promise
Recently announced contract awards provide growth and demonstrate the success of Bristow’s Client Promise Norway: UK: 20 large aircraft • Contract renewal for four • New contract for one 4 = Existing contract extensions S-92s starting Sep 2014 for seven-year term with S-92 starting in July 16 = Incr
Slide 19: Financial highlights: FY13 guidance reaffirmed
Financial highlights: FY13 guidance reaffirmed • EPS guidance range $3.25 - $3.55, excluding aircraft sales and special items • Depreciation and amortization expense ~ $90 – $95 million • SG & A expense ~ $135 - $140 million • Interest expense ~ $38 - $43 million • Tax ~ 20% - 24 % (assuming revenue
Slide 20: Conclusions
Conclusions • Our focus on execution is delivering results with Target Zero / Client Promise being the top priority • Strong financial profile with liquidity, and prudent balance sheet management (our adjusted debt to equity is 71% vs. peer* average of 248%) • We are delivering a balanced shareholde
Slide 21: Appendix
Appendix YRETG 7ERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 22: Organizational Chart - as of June 30, 2012
Organizational Chart - as of June 30, 2012 Operated Aircraft Bristow owned and/or operated 357 aircraft as of June 30, 2012 Affiliated Aircraft Key Bristow affiliates and joint ventures operated 194 aircraft Corporate as of June 30, 2012 Business Unit (% of FY13 Operating Revenue) Region ( # of Airc
Slide 23: Aircraft Fleet – Medium and Large
Aircraft Fleet – Medium and Large As of June 30, 2012 Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Medium capacity 12-16 passengers Large Helicopters AS332L Super Puma 18 Twin Turbine 23 - 23 - AW189 16 Twin Turbine - - - 6 EC225 25 Twin Turbine 18 - 18 - Mil MI 8 20 Twin Turbine 7 -
Slide 24: Aircraft Fleet – Small, Training and Fixed
Aircraft Fleet – Small, Training and Fixed As of June 30, 2012 (continued) Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Small Helicopters Bell 206B 4 Turbine 1 2 3 - Bell 206 L-3 6 Turbine 4 6 10 - Small capacity 4-7 passengers Bell 206 L-4 6 Turbine 29 1 30 - Bell 407 6 Turbine 39 -
Slide 25: Operating lease strategy: lowering the cost and amount of capital needed to grow
Operating lease strategy: lowering the cost and amount of capital needed to grow Leased aircraft as of June 30, 2012 Large Medium Small Total Leased LACE Total LACE % Leased EBU 8 - - 8 8 47 17% WASBU - 1 - 1 1 22 2% NABU 2 11 1 14 8 30 26% AUSBU 1 - 2 3 2 18 11% OIBU - - - - - 32 0% Total 11 12 3 2
Slide 26: Consolidated Fleet Changes and Aircraft Sales for Q1 FY13
Consolidated Fleet Changes and Aircraft Sales for Q1 FY13 Fleet changes Aircraft held for sale by BU Q 1 FY13 EBU WASBU NABU AUSBU OIBU Total Fleet Count Beginning Period 361 Large 3 - - 3 - 6 Delivered S-92 2 Medium 2 1 - 1 7 11 Small - - - - - - Total Delivered 2 Total 5 1 - 4 7 17 Removed Sales (
Slide 27: Operating Revenue, LACE and LACE rate by BU
Operating Revenue, LACE and LACE rate by BU Operating Revenue, LACE, and LACE Rate by BU as of June 30, 2012 Operating revenue 1 LACE LACE Rate 2,3 EBU 123.2 47 10.60 WASBU 66.4 22 12.35 NABU 52.6 30 7.05 AUSBU 38.2 18 8.48 OIBU 4 33.2 32 4.22 Total 313.6 147 8.55 1) $ in millions 2) LACE Rate is an
Slide 28: Order and options book as of June 30, 2012
Order and options book as of June 30, 2012 ORDER BOOK* OPTIONS BOOK Helicopter Helicopter # Class Delivery Date Location Contracted # Class Delivery Date 3 Large December 2012 EBU 3 1 Large September 2013 2 Large December 2012 WASBU 0 1 Large December 2013 2 Large March 2013 EBU 2 1 Large March 2014
Slide 29: Adjusted EBITDAR margin trend
Adjusted EBITDAR margin* trend 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% AUSBU 26.5%36.7%34.4%31.3% 32.4% 33.2%
Slide 30: Adjusted EBITDAR reconciliation
Adjusted EBITDAR* reconciliation Fiscal year ended, 3/31/2010 3/31/2011 ($ in millions) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Net income $24.0 $33.7 $27.1 $28.7 $113.5 $20.9 $38.8 $42.3 $31.2 $133.3 Income tax expense 9.5 11.2 5.7 2.6 29.0 8.5 3.3 -11.8 7.1 7.1 Interest expense 10.0 10.6 11.0
Slide 31: Bristow Value Added (BVA) Sample calculation
Bristow Value Added (BVA) Sample calculation Bristow Value Added = Gross Cash Flow – (Gross Operating Assets X Capital Charge) BVA = GCF - ( GOA X 10.5%** ) Bristow Value Added calculation for Q1 FY12 ($15.4) = $60* - ( $2,874* X 2.625%** ) Bristow Value Added calculation for Q1 FY13 $1.9 = $80* - (
Slide 32: Gross Cash Flow Presentation
Gross Cash Flow Presentation (in millions) Gross Cash Flow Reconciliation Q1 FY12 Q1 FY13 Net Income 21 24 Depreciation and Amortization 23 21 Interest Expense 9 9 Interest Income (0) (0) Rent 9 16 Other Income/expense-net (0) 1 Gain/loss on Asset Sale (1) 5 Special Items 0 2 Tax Effect from Special
Slide 33: Gross Operating Asset Presentation
Gross Operating Asset Presentation (in millions) Adjusted Gross Operating Assets Reconciliation Q1 FY12 Q1 FY13 Total Assets 2,701 2,740 Accumulated Depreciation 463 468 Capitalized Operating Leases 136 194 Cash and Cash Equivalents (117) (227) Investment in Unconsolidated Entities (210) (201) Goodw
Slide 34: GAAP reconciliation
GAAP reconciliation Three Months Ended June 30, 2012 2011 (In thousands, except per share amounts) Adjusted operating income .................................................. 47,470 $ 34,989 Gain (loss) on disposal of assets ..................................... (5,315) 1,416 Severance costs for te
Slide 35: Leverage Reconciliation
Leverage Reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of June 30, 2012 $ 736.3 $ 1,540.7 $ 2,277.0 32.3% Adjust for: Unfunded pension liability 109.8 109.8 NPV of all lease obligations 217.0 217.0 Letters of credit 1.5 1.5 Adjusted $ 1,064.6 (d)
Slide 36: Contact Us
Contact Us Bristow Group Inc. (NYSE: BRS) 2103 City West Blvd., 4th Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com 36