Slide 1: Second quarter FY15 earnings presentation
Exhibit 99.1 Second quarter FY15 earnings presentation Bristow Group Inc. November 7, 2014
Slide 2: Second quarter FY15 earnings call agenda
Second quarter FY15 earnings call agenda Introduction Linda McNeill, Director Investor Relations CEO remarks and safety review Jonathan Baliff, President and CEO Operational highlights Jeremy Akel, SVP and COO Current and future financial performance John Briscoe, SVP and CFO Closing remarks Jonatha
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: CEO remarks and safety review
CEO remarks and safety review Jonathan Baliff, President and CEO
Slide 5: Operational safety review
Operational safety review 1 2 Commercial Air Accident Rate (AAR) per 100,000 Total Recordable Injury Rate (TRIR) per 200,000 flight hours (fiscal year) man hours (cumulative) 3.00 3.00 2.00 2.00 0.96 1.00 1.00 0.54 0.53 0.53 0.59 0.42 0.27 0.31 0.26 0.11 0.00 0.00 0.00 0.00 FY10 FY11 FY12 FY13 FY14
Slide 6: Q2 FY15 highlights
Q2 FY15 highlights • Q2 operating revenue of $440.5M (16.3% increase from Q2 FY14, 0.7 % increase from Q1 FY15) • Q2 GAAP EPS of $0.73 (75.7% decrease from Q2 FY14, 40.7% decrease from Q1 FY15) • Q2 adjusted EPS* of $0.87 (31.5% decrease from Q2 FY14, 34.1% decrease from Q1 FY15) • Q2 adjusted EBITD
Slide 7: Market environment outlook
Market environment outlook • Recent declines in oil prices are supply oriented and expected to be shorter term in nature, with increased finding/production costs supporting a sustainable higher price in the long term • Regardless, our business model has not been impacted by short term commodity pric
Slide 8: Operational highlights
Operational highlights Jeremy Akel, SVP and COO
Slide 9: Europe (EBU)
Europe (EBU) • Europe contributed 49% of Bristow operating revenue and 54% of adjusted EBITDAR* in Q2 FY15 • Operating revenue increased 32% to $206.3M in Q2 FY15 from $156.4M in Q2 FY14 with the net addition of eight LACE, an overall increase in activity under existing and new contracts over the co
Slide 10: UK SAR update
UK SAR update • From the start of the GAP SAR contract in June 1, 2013 through September 30, 2014, we have conducted over 445 missions and rescued and/or assisted over 420 people • Sumburgh and Stornoway bases generated $13.0M of operating revenue in Q2 FY15 and $63.9M since the beginning of the con
Slide 11: West Africa (WASBU)
West Africa (WASBU) • West Africa (Nigeria) contributed 19% of Bristow operating revenue and 19% of adjusted EBITDAR* in Q2 FY15 • Operating revenue increased to $80.1M in Q2 FY15 from $75.9M in Q2 FY14 due to improved contract terms • Adjusted EBITDAR increased to $24.9M in Q2 FY15 from $23.1M in Q
Slide 12: North America (NABU)
North America (NABU) • North America contributed 13% of Bristow operating revenue and 14% of adjusted EBITDAR* in Q2 FY15 • Operating revenue decreased slightly to $56.0M in Q2 FY15 from $60.4M in Q2 FY14 primarily due to the planned closure of our Alaska operations and a decline in the number of sm
Slide 13: Australia (AUSBU)
Australia (AUSBU) • Australia contributed 11% of Bristow operating revenue and 8% of adjusted EBITDAR* in BDI provide support Broome Truscott Darwin Q2 FY15 to the Republic of Singapore Air Force • Operating revenue increased by 33.6% to $47.2M Karratha in Q2 FY15 from $35.3M in Q2 FY14 Oakey • Adju
Slide 14: Other International (OIBU)
Other International (OIBU) • Other International contributed 8% of Bristow operating revenue and 5% of adjusted EBITDAR* in Q2 FY15 • Operating revenue increased to $35.8M in Q2 FY15 vs. $32.2M in Q2 FY14 due to addition of a contract in Tanzania and increased activity in Trinidad • Adjusted EBITDAR
Slide 15: Líder update
Líder update • YTD CY14 adjusted EBITDAR decreased 8.5% year-over-year due primarily due to unfavorable changes in foreign currency rates • Absolute BVA contribution to Bristow from Líder was $3.9M* in Q2 FY15 (September 30, 2014) • Adjusted debt to TTM adjusted EBITDAR increased to 3.2x as of Septe
Slide 16: Current and future financial performance
Current and future financial performance John Briscoe, SVP and CFO
Slide 17: Financial highlights: Q2 adjusted EPS and EBITDAR bridges
Financial highlights: Adjusted EPS and adjusted EBITDAR summary year-over-year Q2 FY14 to Q2 FY15 adjusted EPS bridge $0.04 $0.33 $0.11 $1.27 $0.87 Q2 FY14 Operations Corporate and Other FX Changes Q2 FY15 Q2 FY14 to Q2 FY15 adjusted EBITDAR bridge (in millions) $17.2 $8.3 $5.3 $108.5 $112.1 Q2 FY14
Slide 18: LACE and LACE rate continue to increase
LACE and LACE rate continue to increase led by new technology aircraft and improved utilization/terms FY15 average LACE guidance range reaffirmed at 161 - 167 and average LACE rate guidance range of $9.50 - $10.50 million * See appendix hereto for more information on LACE and LACE rate. Consolidated
Slide 19: Financial highlights: YTD bridges
Financial highlights: Adjusted EPS and adjusted EBITDAR summary year-over-year YTD Q2 FY14 to YTD Q2 FY15 adjusted EPS bridge $0.24 $0.02 $0.35 $2.28 $2.19 YTD Q2 FY14 Operations Corporate and Other FX Changes YTD Q2 FY15 YTD Q2 FY14 to YTD Q2 FY15 adjusted EBITDAR bridge (in millions) $39.1 $0.7 $1
Slide 20: Bristow Value Added drives improving Gross Cash Flow performance
Bristow Value Added (BVA) drives improving Gross Cash Flow (GCF) performance • Q2 FY15 absolute BVA is positive $26.1M, a $3.7M increase from Q2 FY14 • Year-over-year change in BVA is driven by: Excellent revenue growth Margin improvement Capital efficiency efforts • EBU and NABU generated key impro
Slide 21: Our progress on BVA yields stronger liquidity
Our progress on BVA yields stronger liquidity for growth, dividends and share repurchases . . . Net cash provided by operating activities 1 Total liquidity 2 267 613 231 232 530 415 402 151 261 1) See 10-Q for more information on cash flow provided by operating activities 2) At period end 21
Slide 22: FY15 guidance reaffirmed
FY15 guidance reaffirmed . . . • FY15 adjusted EPS guidance range is reaffirmed at $4.70 - $5.20, excluding special items and aircraft sales. Other specific items include: FY15 guidance Average LACE (Large AirCraft ~161 - 167 Interest expense ~ $28 - $32M Equivalent) Average LACE Rate ~ $9.50 - $10.
Slide 23: As we continue to deliver strong results in FY15
. . . as we continue to deliver strong results in FY15 • Declines in recent oil prices have not impacted our production and infrastructure oriented business model • We continue to work with clients to identify cost effective logistics solutions with Bristow’s global fleet and stable balance sheet dr
Slide 24: Appendix
Appendix
Slide 25: Organizational chart - as of September 30, 2014
Organizational chart - as of September 30, 2014 Bristow EBU WASBU NABU AUSBU OIBU BRS Academy 46% 18% 13% 11% 8% 4%* UK – 85/6 Nigeria – 47/6 U.S. GoM – 59/6 Australia – 29/12 Brazil – 11/5 Florida – 54/1 Norway – 21/4 Canada – 8/2 Egypt – 0/0 Louisiana – 13/1 Malaysia – 1/1 Nevada – 3/1 Mexico – 2/
Slide 26: Aircraft fleet – medium and large
Aircraft fleet – medium and large as of September 30, 2014 Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Large capacity 16-25 passengers Large Helicopters AS332 L Super Puma 18 Twin Turbine 18 - 18 - AW189 16 Twin Turbine 2 - 2 15 EC175 16 Twin Turbine - - - 5 EC225 19 Twin Turbine 23
Slide 27: Aircraft fleet – small, training and fixed
Aircraft fleet – small, training and fixed as of September 30, 2014 (continued) Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Small capacity 4-7 passengers Small Helicopters AW109 6 Twin Turbine - 1 1 AS 350BB 4 Turbine - 2 2 Bell 206B 4 Turbine 1 2 3 - Bell 206 L Series 6 Turbine 5 6
Slide 28: Operating lease strategy
Operating lease strategy: lowering the cost and amount of capital needed to grow Leased aircraft as of September 30, 2014 Small Medium Large Total Leased LACE Total LACE % Leased EBU - 1 35 36 36 67 53% WASBU - 1 1 2 2 23 7% NABU 1 13 5 19 12 32 36% AUSBU 2 2 6 10 8 22 35% OIBU - - - - - 23 - Total
Slide 29: Consolidated fleet changes and aircraft sales for Q2 FY15
Consolidated fleet changes and aircraft sales for Q2 FY15 Fleet changes Held for sale aircraft in consolidated fleet Small Medium Large Training Total Q1 FY15 Q2 FY15 Fleet Count Beginning 363 363 EBU - - 5 - 5 Delivered WASBU - 2 - - 2 Large 6 2 NABU - - - - - Medium 3 - Total Delivered 9 2 AUSBU -
Slide 30: 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 September 30, 2014 1 2,3 Op revenue LACE LACE Rate EBU $328 67 $9.78 WASBU 160 23 14.23 NABU 113 32 7.04 AUSBU 94 22 8.72 OIBU 71 23 6.20 4 Total $784 166 $9.43 1) $ in millions 2) LACE rate is annualized
Slide 31: Historical LACE by BU
Historical LACE by BU LACE FY10 FY11 FY12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBU 45 45 45 42 42 43 48 46 44 46 46 45 WASBU 23 23 24 25 24 24 21 22 23 22 22 22 NABU 39 36 36 36 39 35 34 29 30 29 30 30 AUSBU 20 20 22 22 20 23 24 20 19 20 20 19 OIBU 36 34 34 35 33 33 33 38 39 38 38 34 Consolidated 163
Slide 32: Historical LACE rate by BU
Historical LACE rate by BU LACE Rate1,2 FY10 FY11 FY12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBU $8.36 $8.28 $8.40 $8.76 $8.20 $8.50 $7.90 $8.40 $9.80 $9.60 $9.63 $10.09 WASBU 9.08 8.81 8.66 8.34 9.70 9.40 10.70 9.90 9.10 10.30 11.17 11.46 NABU 5.05 5.44 5.26 5.23 5.40 6.10 6.00 6.60 5.80 6.30 5.89 5.
Slide 33: Order and options book as of September 30, 2014
Order and options book as of September 30, 2014 1 OPTIONS BOOK ORDER BOOK Helicopter Helicopter # Class Delivery Date # Class Delivery Date Location Contracted 1 Large September 2015 1 Large December-14 AUSBU 1 of 1 1 Large December 2015 1 Large March-15 EBU 1 Medium December 2015 2 Medium June-15 W
Slide 34: Order and options book (continued)
Order and options book as of September 30, 2014 (continued) UK SAR CONFIGURED ORDER BOOK Helicopter # Class Delivery Date Location Contracted 1 Large December-14* EBU 1 of 1 2 Large December-14 EBU 2 of 2 3 Large March-15 EBU 3 of 3 2 Large March-15 EBU 2 of 2 2 Large June-15 EBU 2 of 2 1 Large June
Slide 35: Total net asset FMV with and without leased aircraft FMV
Total net asset FMV with and without leased aircraft FMV $95 Net asset FMV per share Book value of equity per share Average stock price $87.99 $85 $76.55 $75 70.12 $65 $55 53.79 49.19 $45 $35 NOTE: The gray shaded area represents the range of FMV with and without the impact of leased aircraft (upper
Slide 36: Net asset FMV reconciliation as of September 30, 2014
Net asset FMV reconciliation as of September 30, 2014 September 30, 2014 (in millions) Including leases Excluding leases (+) FMV of a/c $ 1,829 $ 1,829 (+) FMV of leased a/c 1,415 - (+) NBV of PPE w/o a/c 581 581 (+) Working capital 350 350 (-) LT debt (766) (766) (-) Leased imputed debt (602) - (-)
Slide 37: UK SAR net asset FMV reconciliation
UK SAR net asset FMV reconciliation UK SAR contribution (in millions) September 30, 2014 FY16 - FY17 Implied (+) FMV of a/c 1,829 79 1,908 (+) FMV of leased a/c 1,415 289 1,704 (+) NBV of PPE w/o a/c 581 113 694 (+) Working capital 350 174 524 (-) LT debt (766) (88) (854) (-) Leased imputed debt (60
Slide 38: Adjusted EBITDAR margin trend
Adjusted EBITDAR margin* trend FY12 FY13 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year EBU 33.0% 31.4% 30.7% 36.1% 32.9% 32.2% 34.6% 39.5% 38.3% 36.2% WASBU 29.5% 35.5% 37.2% 36.6% 35.0% 31.9% 26.5% 35.0% 31.8% 31.5% NABU 14.3% 20.6% 14.8% 19.4% 17.3% 23.2% 20.7% 29.1% 29.5% 25.7% AUSBU 20.2% 14.4% 23
Slide 39: Adjusted EBITDAR reconciliation
Adjusted EBITDAR* reconciliation Fiscal year ended, 3/31/2012 3/31/2013 ($ in millions) Q1 Q2 Q3 Q4 FY12 Q1 Q2 Q3 Q4 FY13 Net income $21 $3 $26 $15 $65 $24 $30 $37 $40 $132 Income tax expense $7 -$2 $7 $2 $14 $6 $8 $8 $13 $35 Interest expense $9 $9 $10 $10 $38 $9 $9 $15 $10 $42 Gain on disposal of a
Slide 40: Bristow Value Added sample calculation
Bristow Value Added (BVA) Sample calculation for Q2 FY15 and Q2 FY14 Bristow Value Added = Gross Cash Flow – (Gross Operating Assets X Capital Charge) BVA = GCF - ( GOA X 10.5%** ) Bristow Value Added calculation for Q2 FY15 $26.1 = $120.0* - ( $3,575* X 2.625%**) Bristow Value Added calculation for
Slide 41: Bristow gross cash flow reconciliation
Bristow gross cash flow reconciliation (in millions) Gross cash flow reconciliation Q2 FY14Q2 FY15 Net income 111 26 Depreciation and amortization 24 28 Interest expense 9 8 Interest income (1) (0) Rent 23 35 Other income/expense-net (105) 3 Gain/loss on asset sale 3 (0) Special items 3 6 Tax effect
Slide 42: Bristow adjusted gross operating assets reconciliation
Bristow adjusted gross operating assets reconciliation (in millions) Adjusted gross operating assets reconciliation Q2 FY14 Q2 FY15 Total assets 3,166 3,280 Accumulated depreciation 518 511 Capitalized operating leases 373 610 Cash and cash equivalents (314) (264) Current assets from discontinued op
Slide 43: Líder Bristow Value Added sample calculation
Líder Bristow Value Added (BVA) Sample calculation for Q2 FY15 and Q2 FY14 Bristow Value Added = Gross Cash Flow – (Gross Operating Assets X Capital Charge) BVA = GCF - ( GOA X 10.5%** ) Bristow Value Added calculation for Q2 FY15 $3.9 = $11.3* - ( $279* X 2.625%**) Bristow Value Added calculation f
Slide 44: Líder gross cash flow reconciliation
Líder gross cash flow reconciliation ($ in millions) Gross cash flow reconciliation Q2 FY14 Q2 FY15 Net income (loss) $ 22.1 $ 11.7 Depreciation and amortization 4.1 3.5 Rent 6.6 7.3 Interest expense 3.7 4.1 Interest income (0.9) (1.5) FX (gains) losses (10.6) 2.4 Other income/expense-net (2.0) (0.2
Slide 45: Líder adjusted gross operating assets reconciliation
Líder adjusted gross operating assets reconciliation ($ in millions) Adjusted gross operating assets reconciliation Q2 FY14 Q2 FY15 Total assets $ 595.2 $ 641.7 Cash and cash equivalents (98.2) (64.5) Accumulated depreciation 71.8 85.8 Capitalized operating leases 132.2 146.7 Investments & escrow de
Slide 46: Líder's adjusted EBITDAR reconciliation
Líder's adjusted EBITDAR* reconciliation ($ in millions) Q3 CY13 Q4 CY13 Q1 CY14 Q2 CY14 Q3 CY14 Gross revenue 116.8 119.3 121.2 113.7 116.4 (-) Revenue deductions (6.6) (7.6) (5.9) (7.3) (7.7) Net operating revenue 110.2 111.3 115.3 106.4 108.7 (-) Cost of products and services (84.2) (87.0) (90.8)
Slide 47: GAAP reconciliation
GAAP reconciliation (i) See information about special items in 10-Q or earnings release for Q2 FY15 (ii) These amounts are presented after applying the appropriate tax effect to each item and dividing by the weighted average shares outstanding during the related period to calculate the earnings per
Slide 48: Bristow leverage reconciliation
Bristow leverage reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of September 30, 2014 $ 779.5 $ 1,757.5 $ 2,537.0 30.7% Adjust for: Unfunded Pension Liability 71.8 71.8 NPV of Lease Obligations 602.2 602.2 Letters of credit 2.6 2.6 Adjusted $ 1,456
Slide 49: Líder leverage reconciliation
Líder leverage reconciliation (in millions) Sep-13 Sep-14 Total book debt $ 279 $ 317 NPV of leases 75 51 Total adjusted debt 354 368 TTM adjusted EBITDAR $ 125 $ 115 Adjusted debt / TTM adj. EBITDAR 2.8x 3.2x 49
Slide 50: FY15 guidance
FY15 guidance FY15 guidance as of June 30, 2014 Average LACE (Large AirCraft ~161 - 167 Interest expense ~ $30 - $35M Equivalent) Average LACE Rate ~ $9.50 - $10.50M Rent expense (a/c only) ~$137 - $142M G & A expense (all inclusive) ~ $190 - $200M Tax rate* ~ 21 - 25% Depreciation expense ~ $97 - $
Slide 51: 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 51