Bristow Group, Inc. · NYSE:VTOL
Bristow — Investor Day (December 2020)
59 slides from Bristow's investor day presentation, Dec 2, 2020
Slide 1: Bristow Analyst Day December 2, 2020
Bristow Analyst Day December 2, 2020 Exhibit 99.1
Slide 2: 2020 Analyst Day Agenda
2 2020 Analyst Day Agenda I. Introduction / Overview Chris Bradshaw President and CEO II. Commercial Overview Samantha Willenbacher SVP, Chief Commercial Officer III. Operational Overview David Stepanek EVP, Chief Operating Officer IV. Financial Overview Jennifer Whalen SVP, Chief Financial Officer
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
3 Cautionary Statement Regarding Forward-Looking Statements This presentation contains “forward-looking statements.” Forward-looking statements represent Bristow Group Inc.’s (the “Company”) current expectations or forecasts of future events. Forward-looking statements generally can be identified by
Slide 4: Non-GAAP
4 Non-GAAP In addition to financial results calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation includes certain non-GAAP measures including EBITDA, Adjusted EBITDA, Net Debt, Net Leverage, Free Cash Flow and Adjusted Free Cash Flow. EBITDA and Adj
Slide 5: Safety Note
5 • Safety is Bristow’s most important core value and highest operational priority • Robust safety management system (SMS) ▪ With third-party accreditation resulting from numerous external audits • Bristow’s fleet is configured with the latest safety equipment • Bristow is a founding member of HeliO
Slide 6: Management Background
6 Name Background Chris Bradshaw President and Chief Executive Officer Christopher “Chris” Bradshaw has served as the President and Chief Executive Officer of Bristow Group Inc. since June 2020 He previously served as the President and CEO of Era Group Inc. since November 2014 and Chief Financia
Slide 7: Management Background (continued)
7 Name Background Alan Corbett SVP, Europe, Africa, Middle East, Asia, Australia and Search and Rescue Alan Corbett was appointed as Senior Vice President for Europe, Africa, Middle East, Asia (EAMEA) and Search and Rescue in June 2020 He previously served as Vice President, EAMEA from June 2017
Slide 8: Why Invest in Bristow
8 Why Invest in Bristow Strong Balance Sheet with Robust Free Cash Flow Generation Global Leader in Offshore Helicopter Operations Diverse Customer Base and End Markets Well Positioned for Additional Strategic Opportunities Meaningful Value Enhancement from Achievement of Cost Synergies
Slide 9: Global Leadership Position in Helicopter Industry
9 Global Leadership Position in Helicopter Industry Aircraft Fleet (3) Pro Forma LTM Revenue by Region (1)• Bristow and Era merged on June 11, 2020, forming a larger, more diverse industry leader ▪ Bristow was the accounting acquirer ▪ Periods prior to the merger only include operating results of le
Slide 10: Global Presence
10 Global Presence (1) Attractive Geographic Footprint Significant presence in key offshore regions: ✓ U.S. Gulf of Mexico ✓ Norway ✓ United Kingdom ✓ Brazil ✓ Nigeria ✓ Trinidad, Guyana, Suriname (1) Reflects pro forma 9/30/2020 LTM revenue $1.3 bn Operating Presence Dry Lease/PartnershipBristow He
Slide 11: Revenue by End-Market
11 Revenue by End-Market(1) Government Services Revenue UK SAR and BSEE contracts provide meaningful diversification from oil price volatility UK SAR Contract Overview UK SAR Revenue Structure ▪ In April 2015, Bristow began its UK SAR operations with a contractual term of 8 – 10 years and potential
Slide 12: Substantial and Highly Achievable Cost Synergies Identified
12 Substantial and Highly Achievable Cost Synergies Identified G&A Savings Other OpEx Savings +$45 Million Annual Run-Rate Savings Fleet Cost Savings ✓ Elimination of redundant corporate expenses ✓ Realization of operational efficiencies in the U.S. Gulf of Mexico ✓ Optimization of aircraft maintena
Slide 13: Significant Footprint Rationalization in the GoM
13 Significant Footprint Rationalization in the GoM Lake Jackson, TX Houston, TX Abbeville, LA Galliano (SAR), LA Bristow Base Bristow Headquarters Discontinued Offices & Operating Bases Bay City, TX Lake Charles, LA Houma, LA New Orleans, LA Mobile, AL New Iberia, LA •1 Post-merger Base Locations •
Slide 14: Strong Balance Sheet and Financial Flexibility
14 Strong Balance Sheet and Financial Flexibility (1) Cash, Net Debt and Total Liquidity reflect preliminary results as of November 30, 2020 (2) See page 57 for reconciliation of LTM Adjusted EBITDA (3) “Net Capex” is defined as net (proceeds from)/purchases of property and equipment. See page 58 fo
Slide 15: Financial Strength
15 Financial Strength Strong Balance Sheet & Liquidity (~$365mm of Total Liquidity) Limited Near-term Debt Maturities Highly Achievable Cost Synergies (+$45mm Annual Savings) No Firm Capital Commitments Strong Free Cash Flow Generation
Slide 16: Strategic Priorities
16 Strategic Priorities Maintain Highest Safety Standards • Safety is our #1 core value and highest operational priority • We must continue to place safety first, every day, and deliver reliable customer service Be Efficient Focus on Cash Flow Generation Protect Financial Stability Consolidate to Cr
Slide 17: Commercial Overview
17 Commercial Overview
Slide 18: Offshore Oil & Gas Industry
18 • “The Covid-19 pandemic has devastated global oil and gas project sanctioning this year and will cause total committed spending to drop to around $53 billion from 2019’s $190 billion, Rystad Energy projects. Postponed plans will, however, cause the total worth of final investment decisions (FIDs
Slide 19: Offshore Oil & Gas Market Development
19 Offshore Oil & Gas Market Development • Offshore helicopter use dictated by platform distance and size • Most world regions moving towards deeper waters and larger platforms • Trend towards large capacity, long range helicopters…but every region is different • Most new projects cannot be served b
Slide 20: Asset Overview
20 Asset Overview Mission FlexibilityEnd Markets by Type HEAVY Twin Engine MEDIUM Twin Engine LIGHT Single or Twin Engine Cost: $25 – $33mm Cost: $11 – $14mm Cost: $3mm – $4mm (single) $5mm – $10mm (twin) Common Missions: Oil & Gas, SAR, VVIP Common Missions: Oil & Gas, Firefighting, VIP, Forestry,
Slide 21: How We Get Paid
21 How We Get Paid • Typical payment models include: ▪ Traditional monthly standing charge (MSC) + fixed hourly rate (FHR) ▪ Ad hoc or pay as you use ▪ Block / slot model ▪ Consortium model (like GoM SAR) • Typical contract types include: ▪ Traditional – a customer contracts for a particular duratio
Slide 22: Pro Forma Revenue
22 Pro Forma Revenue Pro Forma Revenue by Region ($mm)(1) (1) Reflects pro forma revenue by fiscal quarter; see page 59 for reconciliation
Slide 23: World Leading Client Base
23 World Leading Client Base Strong customers across the globe; servicing several of them in multiple regions Supporting Customers in Multiple Regions (1) Customer logos may not match exact location of services provided
Slide 24: Guyana / Suriname Update
24 Guyana / Suriname Update Overview of Guyana / Suriname Basin (1) “We are looking to drill about 70 development wells between Liza 2 and Payara over the next few years” - ExxonMobil September/October 2020 “World Class Guyana Ramping Up – About 120 miles offshore Guyana in northern South America, X
Slide 25: UK SAR: The Bristow Solution
25 The Bristow Solution • Between April 1, 2015 and March 31, 2020, we completed 11,728 taskings ▪ Between April 1, 2017 and March 31, 2020, we rescued 4,854 people(1) • 5x S-92A bases: ▪ Sumburgh, Stornoway, Humberside, Caernarfon, Newquay • 5x AW189 bases: ▪ Inverness, Prestwick, Lydd, Lee on Sole
Slide 26: Key Government SAR Opportunities
26 Country/Client Incumbent Aircract Required Contract Start (CY) Duration Netherlands/ Coastguard 2x Heavy 2022 10 Years Dutch Antilles/ Coastguard 2x Medium 2022 10 Years Ireland/ Coast Guard 4x - 5x Super Medium 2023 (1) 10 Years MCA (UK SAR)/ Coastguard Up to 20 mixed fleet of Medium/Heavy 2024
Slide 27: Offshore Wind Energy
27 Offshore Wind Energy • Offshore wind is a significant global opportunity over the next decade+ • Advances in offshore wind turbine technology, wind farm development, and operating costs have improved such that the industry is now cost competitive with other forms of power generation • UK, Germany
Slide 28: Operational Overview
28 Operational Overview
Slide 29: 60+ Year History in Safe Global Aviation
29 60+ Year History in Safe Global Aviation 1955 Bristow Helicopters Ltd. Founded in Doha and Nigeria 1969 1996 2006 2014 Offshore Logistics founded in Gulf of Mexico Company rebranded as Bristow Group 2009 2012 Entered Canada with Cougar Helicopters Investment 2008 IMPLEMENTATION OF TARGET ZERO CUL
Slide 30: Bristow's Safety Journey
30 Bristow’s Safety Journey over the past has traversed three areas, with our Target Zero Culture, the lynchpin 1. Technology, Standards: Established ... Continuously upgrading 2. Safety Management Systems: In place ... Refining KPIs and Processes 3. Safety Culture Improvement: Measure Conversations
Slide 31: Safety Performance Update
31 Safety Performance Update Air Accident Rate (AAR1) Total Recordable Incident Rate (TRIR2) 1) AAR beginning in FY17 includes all Category A and B accidents for consolidated Bristow operations. FY19 AAR also includes Category C accidents. FY20 AAR includes all ICAO classified Air Accidents. AAR is
Slide 32: Continued Safety Operations within the COVID Environment
32 Continued Safety Operations within the COVID- 19 Environment PMO Situation Monitoring Legal / Regulatory Monitoring CommunicationsBusiness Continuity Customer Engagement Internal Policy Financial Forecasting / Stress Testing COVID Flights (this week / total) Employee Impact (A=Pos itive, B=Monito
Slide 33: AOCs and Fleet
33 AOCs and Fleet Trinidad 14 3 27 3 27 8 93 12 2 Bristow Group AOCs Dry Leasing # of Aircraft Bristow has 11 Air Operating Certificates globally, across both helicopter and fixed wing operations Note: As of 11/30/2020 18 46 3 1
Slide 34: Diverse and Technologically Advanced Fleet
34 Diverse and Technologically Advanced Fleet (1) As of 11/30/2020 Total Fleet (1) • Bristow’s fleet is concentrated in large and medium new generation aircraft • Fleet well suited for deepwater O&G services and search and rescue operations • World’s largest commercial operator of S-92, AW189 and AW
Slide 35: Owned vs. Leased
35 Owned vs. Leased Leased Fleet Owned Fleet • As of November 30, 2020, total consolidated fleet count is 257 • The owned fleet has been reduced by the sale of 46 aircraft since the close of the merger, primarily as a result of selling underutilized, legacy aircraft • The Company has returned five S
Slide 36: Scheduled Lease Expirations
36 $32mm Scheduled Lease Expirations 12 12 10 7 16 Lease Roll Off By Year (1) (2) (1) Dollar values reflect annual lease costs of those aircraft; actual lease savings would vary based on return dates (2) Lease roll off savings for FY25 and beyond (3) FY21 includes leases that have already been retur
Slide 37: Residual Value Retention
37 Residual Value Retention “Stakeholders” with OversightIllustrative Component Costs • Helicopters have extended economic and mechanical useful lives with multiple uses / end markets • Airframes can last for decades since they are not pressurized (lower altitude flight) • Many “stakeholders” exist
Slide 38: Streamlining Fleet Through Cash Generative Aircraft Sales
38 Streamlining Fleet Through Cash Generative Aircraft Sales 46 legacy aircraft sold for proceeds of ~$63 million since the close of the merger • Since the close of the merger, Bristow has sold 46 legacy and non-core aircraft • B407s had been used in Bristow’s nearshore operations, which is no longe
Slide 39: Financial Overview
39 Financial Overview
Slide 40: Q2 FY21 Results – Pro Forma Sequential Quarter Comparison
40 Q2 FY21 Results – Pro Forma Sequential Quarter Comparison Adjusted EBITDA, excl. Asset Sales(1) Operating Revenue(1) • Operating revenues were $0.9 million lower than pro forma Q1 FY21 (“Q1 FY21”)(1) ▪ Lower revenues from oil and gas services primarily due to a decrease in utilization, partially
Slide 41: Project Ruby Annualized Run-Rate Synergy Progress
41 Project Ruby Annualized Run-Rate Synergy Progress Expected by Quarter • Bristow has completed $20 million of run-rate synergy projects since the close of the merger on June 11, 2020 • The early wins have largely been driven by G&A savings in areas like the elimination of redundant corporate expen
Slide 42: Strong Free Cash Flow Generation
42 Strong Free Cash Flow Generation Bristow generated $57 million of Adj. Free Cash Flow Excluding Net Capex and $93 million of Adj. Free Cash Flow in the three months ended September 30, 2020 (1) See page 58 for reconciliation
Slide 43: Strong Balance Sheet and Liquidity Position
43 Strong Balance Sheet and Liquidity Position ✓ In November, Bristow repurchased $12.1 million of the 7.75% Senior Unsecured Notes, and the Company intends to repay $17 million of Promissory Notes, in cash, at the end of December ✓ Pro forma for these debt repurchases and repayments, Bristow has ~$
Slide 44: FY21 Debt and Interest Payments
44 FY21 Debt and Interest Payments ~$58 million of debt service remaining in FY21 including the payoff of ~$17 million Promissory Notes (1) (1) Includes repurchase of $12.1 million of the 7.75% Senior Unsecured Notes in November 2020
Slide 45: Global Currency Exposures and Mitigants
45 Global Currency Exposures and Mitigants Cash by Currency in US Dollars (1) ($mm) Total Cash ~$310mm • ~65% of total cash is held in U.S. Dollars while ~26% is in GBP • Bristow hedges ~£60mm annually to mitigate FX risk • Most other currencies are effectively naturally hedged(2) (1) Cash as of Nov
Slide 46: Calendar Year 2020 Capital Expenditures
46 Calendar Year 2020 Capital Expenditures (1) Amounts reflected are inclusive of Legacy Era Capex (2) Other includes Buildings and Land, CIP, Global Mods, IT, and Tools/Equipment (2) Capital Expenditures ($mm) (1) • Other capex is primarily composed of IT- related costs • Bristow has orders to purc
Slide 47: Conclusion
47 Conclusion
Slide 48: VTOL Share Price Performance Since Merger Close
48 VTOL Share Price Performance Since Merger Close $23.88 +49.1% 11/27/20 S h a re P ri c e Source: FactSet Market data as of November 27, 2020 (1) Pro Forma LTM Adjusted EBITDA of $186 million (see page 57) and FY21E EBITDA of $193 million per Evercore ISI Equity Research Bristow is currently tradi
Slide 49: Equity Market Capitalization
49 Equity Market Capitalization as of November 27th If it was included in the OSX index, Bristow would have the 12th largest equity market capitalization (1) Market capitalization as of 11/27/2020
Slide 50: Capital Allocation Priorities
50 Capital Allocation Priorities Protect the Balance Sheet Participate in Value Accretive M&A Return Capital to Shareholders Capital Expenditures • Protecting the Balance Sheet is our top financial objective • Plan to pay down the $17mm Promissory Notes with cash • Will opportunistically repurchase
Slide 51: Why Invest in Bristow
51 Why Invest in Bristow Strong Balance Sheet with Robust Free Cash Flow Generation Global Leader in Offshore Helicopter Operations Diverse Customer Base and End Markets Well Positioned for Additional Strategic Opportunities Meaningful Value Enhancement from Achievement of Cost Synergies
Slide 52: Q&A
52 Q&A
Slide 53: Appendix
53 Appendix
Slide 54: Fleet Overview
54 Fleet Overview (1) As of 11/30/2020 Owned Aircraft Leased Aircraft Aircraft Held For Sale Consolidated Aircraft Heavy Helicopters: S-92 35 28 — 63 S-92 U.K. SAR 3 7 — 10 H225 — — 2 2 AW189 6 1 — 7 AW189 U.K. SAR 11 — — 11 55 36 2 93 Medium Helicopters: AW139 53 8 — 61 S-76 C+/C++ 26 — — 26 S-76D
Slide 55: Quarterly Reconciliation of Non-GAAP Financial Measures
55 Quarterly Reconciliation of Non-GAAP Financial Measures Successor Predecessor Three Months Ended Three Months Ended Adjusted EBITDA reconciliation ($000s) September 30, 2020 June 30, 2020 September 30, 2019 Net income (loss) $ (27,992) $ 71,404 $ (162,919) Depreciation and amortization 18,537 16,
Slide 56: Pro Forma Q1 FY21 Reconciliation
56 Pro Forma Q1 FY21 Reconciliation Old Bristow Era Group Inc. Legacy Era Pro Forma Three Months Ended June 30, 2020 April 1, 2020 - June 11, 2020 June 12 - 30, 2020 Three Months Ended June 30, 2020 Net income (loss) $ 75,708 $ (18,059) $ (4,305) $ 53,344 Depreciation and amortization 15,914 7,818 4
Slide 57: Reconciliation of Pro Forma LTM Adjusted EBITDA
57 Reconciliation of Pro Forma LTM Adjusted EBITDA Old Bristow Era Group Inc. Legacy Era Bristow Group Inc. Pro Forma October 1, 2019 - June 30, 2020 October 1, 2019 - June 11, 2020 June 12 - 30, 2020 QTD September 30, 2020 LTM September 30, 2020 Net income (loss) $ (289,416) $ (26,159) $ (4,305) $
Slide 58: Reconciliation of Adjusted Free Cash Flow
58 Reconciliation of Adjusted Free Cash Flow Successor Three Months Ended September 30, 2020 Three Months Ended June 30, 2020 Net cash provided by (used in) operating activities $ 41,857 $ (6,866) Plus: Proceeds from disposition of property and equipment 40,475 11,665 Less: Purchases of property and
Slide 59: Reconciliation of Pro Forma LTM Operating Revenues
59 Reconciliation of Pro Forma LTM Operating Revenues