Bristow Group, Inc. · NYSE:VTOL
Bristow — Howard Weil 41st Annual Energy Conference 2013
38 slides from Bristow's conference presentation, Mar 19, 2013
Slide 1: Howard Weil 41st Annual Energy Conference
Howard Weil 41 st Annual Energy Conference Bristow Group Inc. March 17-21, 2013 Exhibit 99.1
Slide 2: Forward-looking statements
Forward-looking statements
Slide 3: Bristow is the leading provider of helicopter services
Bristow is the leading provider of helicopter services and is a unique investment in oil field services $67 • ~20 countries • 556 aircraft • ~3,400 employees • Ticker: BRS • Stock price * : $59.69/share • Market cap * : ~$2.2 billion • Quarterly dividend of $0.20/share Bristow flies crews and light
Slide 4: Why Bristow?
Why Bristow? $275 • Bristow is the largest of only two global helicopter providers • Bristow is stable as we have long term contracts that serve mostly production • Bristow is growing with demand not dependent on economic or commodity cycles • Bristow’s asset values are resilient even in depressed e
Slide 5: Safety is our primary core value
• Safety is our primary core value • Bristow’s ‘Target Zero’ program is now the leading example emulated industry-wide • Safety Performance accounts for 25% of management incentive compensation • 2011 National Ocean Industries Association (NOIA) Safety in Seas Award Winner
Slide 6: Our value proposition is based on three principles
Our value proposition is based on three principles: secular growth, financial safety, and balanced return Long term value for our shareholders Investment: FY 2012 - 2016 2. Prudent Balance Sheet management with ample liquidity 1. Growth not dependent on economic or commodity cycles 3. Capital Return
Slide 7: Bristow services are utilized in every phase of offshore oil and gas activity
1. Bristow services are utilized in every phase of offshore oil and gas activity, especially production ABANDONMENT EXPLORATION SEISMIC DEVELOPMENT PRODUCTION • Largest share of revenues (>60%) relates to oil and gas production, providing stability and growth opportunities • There are ~ 8,000 offsho
Slide 8: Bristow's contract structure generates predictable cashflow
Bristow’s contract structure generates predictable cashflow: Significant operating leverage Fixed monthly 65% Variable hourly 35% Fixed monthly 70% Variable hourly 30% Revenue sources • Two tiered contract structure includes both: – Fixed monthly standing charge to reserve helicopter capacity – Vari
Slide 9: Bristow global operations deliver excellence
Bristow global operations deliver excellence Safety Reliability Service Performance Fleet management improvements for availability ongoing. Global Account Management instituted for best service. New consistent operational reporting tools being designed and implemented to track performance. Bristow A
Slide 10: EC225 Fleet update
EC225 Fleet update • During an October 2012 flight to an offshore platform, an EC225 helicopter flown by another operator performed a controlled ditching due to gear shaft failure. UK and Norwegian CAAs issued safety directives, requiring operators to suspend operations of similar aircraft. • We con
Slide 11: Growth tracker updated for FY14-FY18
Our growth tracker has been updated for FY14- FY18 with 474 a/c opportunities (11% increase)
Slide 12: Aircraft opportunities and order book management
474 aircraft opportunities identified 430 demand for new aircraft 288 realistic bid opportunities We manage our opportunities through the purchase of 118 a/c options and committed orders • Bristow uses specific opportunities to create our order book • Opportunities are condensed to 288 realistic bid
Slide 13: Bristow enjoys the strongest balance sheet in our industry
2. Bristow enjoys the strongest balance sheet in our industry with ample liquidity, cash flow and asset value Ample Liquidity Significant Cash Flow generation Prudent Balance Sheet management • BVA leads to a focus on cash and cash flows from operations. Bristow generated 5% more operating cash flow
Slide 14: Higher operating cash flow generation
Our focus on returns has yielded much higher operating cash flow generation . . . Net cash provided by operating activities* * See 10-Q for more information on cash flow provided by operating activities
Slide 15: Robust cash and liquidity position
. . . leading to a robust cash and liquidity position
Slide 16: Growth in our asset values
. . . And growth in our asset values • Our net asset value (NAV) primarily consists of the fair market value of the fleet, which has resilient value through downturns • In the past two years, Bristow has increased our NAV per share by almost 20% while maintaining prudent balance sheet management and
Slide 17: Commitment to a balanced return for shareholders
3. Bristow has a proven commitment to a balanced return for our shareholders as demonstrated in the past year Share Repurchase Regular Dividend • FY12 quarterly dividend initiated at $0.15/share • Dividend increased by 33% to $0.20/share in June 2012 quarter • Bristow has renewed its $100 million sh
Slide 18: Consistent financial performance over the past year
Bristow has also delivered consistent financial performance over the past year • Annual adjusted EPS guidance has been raised to $3.60 - $3.85 per share from $3.25 - $3.55 per share * Assuming revenue earned in same regions and same mix • Eighth consecutive quarterly dividend since the end of FY11 •
Slide 19: Conclusions
Conclusions • Safety continues to be our number one priority as we strive to achieve Target Zero • We see continued improvement in revenue generation through new contract awards across all business units coupled with an ongoing effective cost management focus • Higher year-over-year EBITDAR and BVA
Slide 20: Contact us
Contact us Bristow Group Inc. (NYSE: BRS) 2103 City West Blvd., 4 th Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com
Slide 21: Zero accidents / zero downtime / zero complaints
BROS ‘ZERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS:
Slide 22: Organizational Chart
Organizational Chart - as of December 31, 2012 Business Unit (% of FY13 Operating Revenue) Corporate Region ( # of Aircraft / # of Locations) Joint Venture (# of aircraft) Key Operated Aircraft Bristow owned and/or operated 356 aircraft as of December 31, Affiliated Aircraft Bristow affiliates and j
Slide 23: Aircraft Fleet – Medium and Large
Aircraft Fleet – Medium and Large As of December 31, 2012 Fair market value of our owned fleet is $2.0 billion and leased fleet is $400 million Next Generation Aircraft Medium capacity 12-16 passengers Large capacity 18-25 passengers Mature Aircraft Models Aircraft Type No. of PAX Engine Consl Uncon
Slide 24: Aircraft Fleet – Small, Training and Fixed
Aircraft Fleet – Small, Training and Fixed As of December 31, 2012 (continued) Next Generation Aircraft Mature Aircraft Models Small capacity 4-7 passengers Training capacity 2-6 passengers 1) LACE does not include held for sale, training and fixed wing helicopters 2) Order book is as of March 7, 20
Slide 25: Operating lease strategy
Operating lease strategy: lowering the cost and amount of capital needed to grow • Of the 61 aircraft currently leased in our fleet, 31 are training and 30 are commercial (22 LACE) • 22 LACE aircraft represent approximately 14% of our commercial fleet • Our goal is for commercial fleet operating lea
Slide 26: Consolidated fleet changes and aircraft sales
Consolidated fleet changes and aircraft sales for Q3 FY13 See 10-Q Note 6 “Commitments and contingencies” for more information provided on operating leases Small Medium Large Total EBU - WASBU - - NABU - - - - AUSBU - - OIBU - - Total - Held for sale aircraft in consolidated fleet Small Medium Large
Slide 27: Operating revenue, LACE and LACE Rate by BU
Operating revenue, LACE and LACE Rate by BU 1) $ in millions 2) LACE Rate is annualized 3) $ in millions per LACE
Slide 28: Historical LACE and LACE Rate by BU
Historical LACE and LACE Rate by BU 1) $ in millions 2) LACE Rate is annualized Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 EBU WASBU NABU AUSBU OIBU Consolidated Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 EBU $8.20 $8.50 $7.90 $8.40 $9.80 $9.60 $9.63 $10.09 $10.60 11.03 9.74 WASBU 9.70 9.40 10.70 9.90 9.10 10.30 11.17
Slide 29: Order and options book
Order and options book as of March 7, 2013
Slide 30: Adjusted EBITDAR margin trend
Adjusted EBITDAR margin* trend * Adjusted EBITDAR excludes special items and asset dispositions and calculated by taking adjusted EBITDAR divided by operating revenue Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year EBU 31.2% 31.7% 31.9% 28.0% 30.8% 29.8% 31.5% 34.6% 34.4% 32.7% WASBU 31.7% 36.8% 33.7% 3
Slide 31: Adjusted EBITDAR reconciliation
Adjusted EBITDAR* reconciliation * Adjusted EBITDAR excludes special items and asset dispositions ($ in millions) Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD 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 1
Slide 32: Bristow Value Added (BVA) sample calculation
Bristow Value Added (BVA) Sample calculation for Q3 FY13 and Q3 FY12 Bristow Value Added = Gross Cash Flow – (Gross Operating Assets X Capital Charge) Bristow Value Added calculation for Q3 FY13 Bristow Value Added calculation for Q3 FY12 * Reconciliation for these items follows right after this sli
Slide 33: Gross Cash Flow Reconciliation
Gross Cash Flow Reconciliation (in millions) Gross Cash Flow Reconciliation Q3 FY13 Q3 FY12 Net Income $36 $26 Depreciation and Amortization Interest Expense Interest Income (0) (0) Rent Other Income/expense-net Earnings of Discontinued Operations - - Gain/loss on Asset Sale (7) Special Items - - Ta
Slide 34: Gross Operating Asset Reconciliation
Gross Operating Asset Reconciliation
Slide 35: GAAP Reconciliation
GAAP Reconciliation Three Months Ended Nine Months Ended December 31, December 31, (In thousands) Adjusted operating income $ 66,724 $ 46,418 $ 160,000 $ 119,900 Gain (loss) on disposal of assets 7,396 (2,865) (3,060) Special items — — (27,287) Operating income $ 74,120 $ 43,553 $ 161,441 $ 89,553 A
Slide 36: Leverage Reconciliation
Leverage Reconciliation \ *Adjusted EBITDAR exclude gains and losses on dispositions of assets Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of December 31, 2012 900.6 $ 1,616.8 $ 2,517.4 $ 35.8% Adjust for: Unfunded Pension Liability 115.7 115.7 NPV of Lease Ob
Slide 37: Net Asset Value (NAV) Comparison
Net Asset Value (NAV) Comparison: 12/31/2003 to 12/31/2012
Slide 38: Contact Us
Contact Us Bristow Group Inc. (NYSE: BRS) 2103 City West Blvd., 4 th Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com
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