Bristow Group, Inc. · NYSE:VTOL
Bristow — Era Group — Q4 2019 Earnings Presentation
19 slides from Bristow's earnings presentation, Mar 5, 2020
Slide 1: Q4 and FY2019 Earnings Presentation
Exhibit 99.2 Q4 and FY2019 Earnings Presentation March 6, 20201
Slide 2: Q4 and FY2019 Earnings Call Agenda
Q4 and FY2019 Earnings Call Agenda I. Introduction Crystal Gordon, SVP, General Counsel and CAO II. Operational Highlights Chris Bradshaw, President and CEO III. Financial Review Jennifer Whalen, SVP and CFO IV. Concluding Remarks Chris Bradshaw, President and CEO V. Questions & Answers 2
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation contains “forward-looking statements.” Forward-looking statements give the Company’s current expectations or forecasts of future events. Forward-looking statements generally can be identified by the use of forward-looking te
Slide 4: Disclosure Regarding the Merger
Disclosure Regarding the Merger Additional Information and Where to Find It In connection with the proposed transaction, Era intends to file with the SEC a registration statement on Form S-4 (the “Registration Statement”) that will include a joint proxy statement of Era and Bristow that also constit
Slide 5: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation This presentation includes EBITDA and Adjusted EBITDA as supplemental measures of the Company’s operating performance. EBITDA is defined as Earnings before Interest (includes interest income and interest expense), Taxes, Depreciation and Amortization. Adjus
Slide 6: Safety Update
Safety Update • Safety is Era's most important core value and highest operational priority • Era achieved its dual goals of ZERO air accidents and ZERO recordable workplace incidents in FY2019 and YTD 2020 – ZERO air accidents in trailing three year period – Over 890 consecutive days without a recor
Slide 7: Strong Balance Sheet and Financial Flexibility
Strong Balance Sheet and Financial Flexibility • Total available liquidity as of December 31, 2019 was approximately $242 million – $117 million in cash balances – $124 million of remaining availability under the Company’s credit facility • Net debt of $45 million as of December 31, 2019 • • Era gen
Slide 8: Q4 2019 Highlights – Sequential Quarter Comparison
Q4 2019 Highlights – Sequential Quarter Comparison • Revenues were $1.5 million higher than Q3 2019 – Primarily due to higher utilization of helicopters in U.S. Revenues ($000s) oil & gas operations and new emergency response services contracts – Partially offset by lower revenues from international
Slide 9: Q4 2019 Highlights – Calendar Quarter Comparison
Q4 2019 Highlights – Calendar Quarter Comparison • Revenues were $8.4 million higher than Q4 2018 – Primarily due to higher utilization of helicopters in oil and gas Revenues ($000s) operations and the commencement of new emergency response services and dry-leasing contracts $75,000 +16% 60,377 • Op
Slide 10: Fiscal Year 2019 Highlights
Fiscal Year 2019 Highlights • Revenues were $4.4 million higher than 2018 – Primarily due to the commencement of new emergency Revenues ($000s) response services and dry-leasing contracts – Partially offset by lower utilization in oil and gas operations $300,000 +2% • Operating expenses were $3.0 mi
Slide 11: Appendix
Appendix
Slide 12: Fleet Overview
Fleet Overview Average Helicopters Age Heavy: S92 4 3 H225 1 12 AW189 4 4 Total Heavy 9 Medium: AW139 36 10 S76 C+/C++ 5 13 B212 3 38 Total Medium 44 Light – twin engine: A109 7 14 EC135 10 10 BO-105 3 30 Total Light – twin engine 20 Light – single engine: A119 13 13 AS350 17 22 Total Light – single
Slide 13: NAV per Share Calculation
NAV per Share Calculation (in millions, except share data) 12/31/2019 + FMV of helicopters (3rd party appraisals) $ 580 + NBV of other PP&E 42 + Working capital 163 + Other net tangible assets 3 - Total debt (160) - Deferred taxes (104) Net asset value $ 524 Diluted share count 21.0 Current Price Cu
Slide 14: Healthy Leverage Metrics and Liquidity
Healthy Leverage Metrics and Liquidity December 31, 2019 ($000s) Cash and cash equivalents $ 117,366 • As of December 31, 2019, Era had $117 million in cash balances and $124 million of remaining Credit facility $ — availability under its credit facility for total liquidity Promissory notes 18,317 o
Slide 15: Operating Revenues and Flight Hours by Line of Service
Operating Revenues and Flight Hours by Line of Service Three Months Ended Revenue ($000s) 31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 (a) Oil and gas: U.S. $ 33,876 $ 32,466 $ 33,270 $ 36,226 $ 37,462 International 13,357 13,616 14,499 14,740 13,655 Total oil and gas $ 47,233 $ 46,082 $ 47,769
Slide 16: Quarterly Reconciliation of Non-GAAP Financial Measures
Quarterly Reconciliation of Non-GAAP Financial Measures Quarterly Historical EBITDA and Adjusted EBITDA (US$ in thousands) 31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 Net income (loss) $ (5,948) $ (6,085) $ 4,874 $ (2,059) $ (811) Depreciation 9,530 9,450 9,520 9,312 9,337 Interest income (818
Slide 17: Financial Highlights
Financial Highlights Fiscal Year ($ millions) 2015 2016 2017 2018 2019 Revenue $ 281.8 $ 247.2 $ 231.3 $ 221.7 $ 226.1 Operating expenses 171.5 169.9 167.4 151.5 154.5 G&A 42.8 36.2 42.1 45.1 38.3 Depreciation 47.3 49.3 45.7 39.5 37.6 Gains on asset dispositions 6.0 4.8 4.5 1.6 3.7 Litigation settle
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures • Adjusted EBITDA reflects special items: – Executive severance adjustments of $0.6 million in 2017 – A pre-tax gain of $12.9 million on the sale of the Company’s FBO in Alaska in 2015 – A pre-tax charge of $1.9 million on the impairment of goodwill in 2
Slide 19: Reconciliation of Free Cash Flow and Free Cash Flow Yields
Reconciliation of Free Cash Flow and Free Cash Flow Yields ($ thousands) 2015 2016 2017 2018 2019 Net cash provided by operating activities $ 44,456 $ 58,504 $ 20,096 $ 54,354 $ 27,553 Plus: Proceeds from disposition of property and equipment 25,328 28,609 9,392 29,590 13,252 Less: Purchases of prop