Bristow Group, Inc. · NYSE:VTOL
Bristow — Q4 FY2011 Earnings Presentation
35 slides from Bristow's earnings presentation, May 11, 2011
Slide 1: Fourth Quarter FY 2011 Earnings Presentation
Exhibit 99.1 Fourth Quarter FY 2011 Earnings Presentation Bristow Group Inc. May 11, 2011
Slide 2: Fourth quarter earnings call agenda
Fourth quarter earnings call agenda Introduction (Linda McNeill, Investor Relations Manager) CEO remarks (Bill Chiles, President and CEO) Financial discussion (Jonathan Baliff, SVP and CFO) Operational highlights (Bill Chiles, President and CEO) Questions and answers 2
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: Aviation Support Services KPI History
Aviation Support Services KPI History * Includes commercial operations only 5
Slide 6: Q4 and FY2011 highlights
Q4 and FY2011 highlights • Q4 Revenue of $310M (10% increase from Q4 FY2010, • FY 2011 Revenue of $1.233B (6% increase from FY2010) 2% decrease from Q3 FY2011) • FY 2011 EPS, excluding special items, of $3.30 (9% increase from • Q4 EPS, excluding special items, of $1.00 (37% increase FY2010) from Q4
Slide 7: Current market environment
Current market environment • Oil prices have fallen from highs but still relatively strong. Lower prices create a more sustainable economic recovery • Overall international Exploration & Production (E&P) capital expenditures and operating expenditures continue to grow • The modest growth in 2010, ha
Slide 8: Q4 2011 YOY Operational performance highlights
Q4 2011 YOY Operational performance highlights Europe Revenue and operating margin is higher year over year due to new customers, increased activity and cost management. West Africa Revenue rose because of new contracts and rate escalations on existing contracts and reduced number of aircraft mainte
Slide 9: Financial discussion
Financial discussion Jonathan Baliff, SVP and CFO 9
Slide 10: Financial highlights – Earnings per share summary
Financial highlights – Earnings per share summary 4Q FY10 to 4Q FY11 bridge FY10 to FY11 bridge 10
Slide 11: Financial highlights – EBITDA summary
Financial highlights – EBITDA summary 4Q FY10 to 4Q FY11 bridge FY10 to FY11 bridge 11
Slide 12: Reconciliation of special items Fourth Quarter FY 2011 & Full Year FY 2011
Reconciliation of special items Fourth Quarter FY 2011 & Full Year FY 2011 March 2011 Quarter Diluted Operating Net Earnings Income EBITDA Income Per Share (Unaudited) (In thousands, except per share amounts) Adjusted for special items............... $ 56,653 $ 79,905 $ 37,001 $ 1.00 Impairment of I
Slide 13: Quarterly dividend initiation
Quarterly dividend initiation • On May 4, 2011, the Board of Directors of Bristow declared a first quarter cash dividend of $0.15 per share of our common stock. • The dividend will be paid on June 10, 2011 to stockholders of record on May 20, 2011; approximately $5.4 million payment expected. • If h
Slide 14: FY 2012 earnings guidance
FY 2012 earnings guidance • Issuance of annual earnings guidance demonstrates Bristow’s confidence in our business model anchored by the underlying contractual stability serving mostly offshore production, which makes our operating performance more stable and predictable. • Our objectives in providi
Slide 15: Operational highlights
Operational highlights Bill Chiles, President and CEO 15
Slide 16: Quarter-over-quarter changes in Operating Income
Quarter-over-quarter changes in Operating Income Operating income for Q4 2011 is $50.5M Operating income for Q4 2010 is $42.8M * Excludes centralized operations, corporate, gain on sale of assets, and Bristow Academy. In Q4 FY 2011, North America was loss of $1.6 million and is not included. 16
Slide 17: Europe (EBU)
Europe (EBU) Hammerfest • Europe represents 41% of total revenue in Q4 Bergen Kristiansund FY11 and 39% of operating income Stavanger • Operating margin of 18.8% vs. 18.1% in prior year quarter • Increase in activity with new client contracts Scasta commencing generated more the $1mm in revenues • A
Slide 18: West Africa (WASBU)
West Africa (WASBU) Warri Osubi Warri Texaco Port Harcourt • Nigeria represents 18% of total revenue in Q4 FY11 and 21% of operating income • Revenue of $55.2M increased slightly from Escravos Eket $54.2M • Increased operating expense in Q4 FY2011 associated with maintenance and freight charges • Op
Slide 19: Australia (AUSBU)
Australia (AUSBU) • Australia represented 15% of total revenue in Q4 FY11 and 13% of operating income Broome Truscott Darwin BDI provide support • Revenue of $45M increased from $34M on to the Republic of strong activity levels Singapore Air Force • Operating income declined to $7.8M from Karratha O
Slide 20: Other International (OIBU)
Other International (OIBU) • OIBU represented 12% of total revenue and 27% of operating income for Q4 FY11 • Revenue increased to $37.3 from $32.1M • Operating income to $17.1M from $0.6M • Operating margin was 45.8% vs 1.9% in the prior year quarter • Increased revenue from the Baltic Sea, Suriname
Slide 21: North America (NABU)
North America (NABU) • Revenue fell to $40.1M from $45.5M and represented 13% of total revenue • Operating loss of $1.6M vs. operating income of $1M • Operating margin of negative 4% declined from 2.2% in the prior year quarter • Gulf of Mexico outlook • BP work concluded in February 2011 • Continue
Slide 22: Summary
Summary • Bristow had an excellent FY2011 with promises made and kept in safety, operations and financial performance. • Strong cash flow generation has supported dividend initiation to common shareholders. • We see expansion for FY2012 and FY2013. Our medium to long term outlook remains strong give
Slide 23: Appendix
Appendix sO] ZERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 24: Organizational Chart - as of March 31, 2011
Organizational Chart - as of March 31, 2011 Operated Aircraft Bristow owns and/or operates 373 aircraft as of March 31, 2011 Affiliated Aircraft Key Bristow affiliates and joint ventures operate 196 aircraft Corporate as of March 31,2011 Business Unit (* % of FY11 Revenues) Region ( # of Aircraft /
Slide 25: Aircraft Fleet – Medium and Large
Aircraft Fleet – Medium and Large As of March 31, 2011 Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Medium capacity 12-16 passengers Medium Helicopters AW139 12 Twin Turbine 7 4 11 - Bell 212 12 Twin Turbine 3 22 25 - Bell 412 13 Twin Turbine 39 46 85 - EC155 13 Twin Turbine 4 - 4 - S
Slide 26: Aircraft Fleet – Small, Training and Fixed
Aircraft Fleet – Small, Training and Fixed As of March 31, 2011 (continued) Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Small Helicopters Small capacity 4-7 passengers Bell 206B 4 Turbine 2 2 4 - Bell 206 L-3 6 Turbine 4 6 10 - Bell 206 L-4 6 Turbine 31 2 33 - Bell 407 6 Turbine 42 1
Slide 27: Consolidated Fleet Changes and Aircraft Sales for FY 2011
Consolidated Fleet Changes and Aircraft Sales for FY 2011 Q 1 FY11 Q2 FY 11 Q 3 FY11 Q4 FY 11 Total # of A/C Cash Gain/ (1) (1) Fleet Count Beginning Period 390 384 379 378 390 Sold Received Loss Delivered Q1 FY 11 5 3,770 1,585 Agusta AW 139 1 1 2 4 Q2 FY 11 4 4,350 1,842 Sikorsky S-76 C++ 3 3 Q3 F
Slide 28: Reconciliation of Special Items Fourth Quarter FY2010 & Full Year FY2010
Reconciliation of Special Items Fourth Quarter FY2010 & Full Year FY2010 March 2010 Quarter Diluted Operating Net Earnings Income EBITDA Income Per Share (Unaudited) (In thousands, except per share amounts) Adjusted for special items............... $ 39,920 $ 60,385 $ 26,630 $ 0.73 Allowance for rec
Slide 29: Reconciliation of Special Items Notes
Reconciliation of Special Items Notes (1) Represents additional depreciation expense recorded as a result of the impairment of previously capitalized internal software costs as the related project was abandoned in the March 2011 quarter. (2) Represents additional depreciation expense recorded as a r
Slide 30: EBITDA and EBITDAR Reconciliations
EBITDA and EBITDAR Reconciliations ($ in millions) March 31, 2000 2001 2002 2003 2004 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 Subt
Slide 31: ROCE Reconciliation
ROCE Reconciliation Fiscal Year 2007 31-Mar-06 30-Jun-06 30-Sep-06 31-Dec-06 31-Mar-07 Numerator: Total assets $ 1,176.4 $ 1,239.8 $ 1,469.1 $ 1,517.8 $ 1,505.8 EBITDA 163.5 (-) Assets discountinued operations (27.4) (28.4) (23.8) (26.0) (26.2) Minority Interest 1.2 (-) Cash (122.5) (109.6) (268.3)
Slide 32: ROCE Reconciliation
ROCE Reconciliation Fiscal Year 2009 31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 Numerator: Total assets $ 1,977.4 $ 2,354.5 $ 2,306.3 $ 2,342.9 $ 2,334.6 EBITDA 276.7 (-) Cash (290.1) (527.4) (399.1) (364.7) (301.0) (-) Progress payments for aircraft and other (182.9) (229.6) (296.2) (322.0)
Slide 33: ROCE Reconciliation
ROCE Reconciliation Fiscal Year 2011 31-Mar-10 30-Jun-10 30-Sep-10 31-Dec-10 31-Mar-11 Numerator: Total assets $ 2,494.6 $ 2,504.7 $ 2,606.9 $ 2,638.7 $ 2,662.6 EBITDA 277.5 (-) Cash (77.8) (73.9) (108.5) (100.9) (116.4) (-) Progress payments for aircraft and other (152.8) (161.2) (168.6) (121.4) (1
Slide 34: Leverage Reconciliation
Leverage Reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) As of March 31, 2011 $ 707.5 $ 1,518.8 $ 2,226.3 31.8% Adjust for: Unfunded Pension Liability 99.6 99.6 NPV of GE and Norsk Lease Obligations 40.5 40.5 Adjusted $ 847.6 (d) $ 1,518.8 $ 2,366.4 35.8% Calculatio
Slide 35: 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 35