Bristow Group, Inc. · NYSE:VTOL
Bristow — Barclays CEO Energy-Power Conference 2012
38 slides from Bristow's conference presentation, Sep 4, 2012
Slide 1: Barclays CEO Energy-Power Conference
Exhibit 99.1 Barclays CEO Energy-Power Conference Bristow Group Inc. September 4-6, 2012
Slide 2: 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 3: Bristow is the leading provider of helicopter services and a unique investment in oil field services
Bristow is the leading provider of helicopter services and is a unique investment in oil field services Bristow flies crews and light cargo to production platforms, vessels and rigs • ~20 countries • 551 aircraft • ~3,400 employees • Ticker: BRS • Stock price *: $46.89/share • Market cap *: ~$1.7 bi
Slide 4: TARGET ZERO, our industry leading safety program, creates differentiation and client loyalty
TARGET ZERO, our industry leading safety program, creates differentiation and client loyalty • 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 Nation
Slide 5: Why Bristow? Changes like Client Promise and BVA generate cash for growth
Why Bristow? Changes like Client Promise and BVA generate cash for organic and external growth • Bristow has changed its client and capital allocation approach (Client Promise/Bristow Value Added) to generate better cash returns and fund it’s growth • Bristow is enjoying improved pricing for its ser
Slide 6: Bristow is making an investment in Cougar, Canada's premier helicopter services provider
CHANGE: Bristow is making an investment in Cougar, Canada’s premier helicopter services provider • Bristow has reached agreement with Canadian owned VIH Aviation Group (VIHAG) to invest in its subsidiary Cougar Helicopters Inc. (Cougar) • Cougar is Canada’s largest and leading offshore oil & gas and
Slide 7: Cougar provides scale, stability and growth to our North American Business Unit
Cougar provides scale, stability and growth to our North American Business Unit • Bristow gains exposure to the Canadian market through this alliance where Cougar has successfully operated for 15 years with unmatched infrastructure and skills • Cougar is best positioned as the search for energy expa
Slide 8: Our equity investment and purchase of eight modern aircraft is prudently financed and accretive
Our equity investment and purchase of eight modern aircraft is prudently financed and immediately accretive • Bristow’s strong liquidity position makes the investment both financially attractive and financeable within our prudent balance sheet management principles without issuing equity • The inves
Slide 9: BV and FMV per share updated for the Cougar Investment including eight S-92s
BV and FMV per share updated for the Cougar Investment including eight S-92s BV and FMV per Share ($) 58 55.29 53 48 45.94 43 42.29 38 J A S O N D J F M A M J Book value of equity per share FMV of assets per share Avg Closing Price Note: June’s numbers are June’s actual adjusted for the investment i
Slide 10: CONCLUSION: Bristow enjoys the strongest balance sheet in our industry
CONCLUSION: Bristow enjoys the strongest balance sheet in our industry with ample cash flow for EPS Growth Prudent • Adjusted Debt/Capital Ratio less than 45% with a BBB- Balance rating from Standard & Poor’s for secured debt Sheet • Operating lease strategy used to finance growth with a management
Slide 11: Appendix
Appendix BEC ERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 12: Bristow's Client Promise initiative is gaining traction
CHANGE: Bristow’s Client Promise initiative is gaining traction and is behind our organic margin improvement Target Zero accidents, downtime and complaints programs deliver value to operators. More zero-accident flight hours than anyone, more uptime than anyone, and hassle-free service creates confi
Slide 13: Bristow Value Added (BVA) makes employees treat the cost of capital like any other expense
CHANGE: Bristow Value Added (BVA) makes employees treat the cost of capital like any other expense . . . • BVA is the key measure to define Bristow’s financial success and charges managers for the capital they use every day • BVA has changed i) the way working capital is managed, and ii) has led to
Slide 14: Operating lease initiative: lowering the cost and amount of capital needed to grow
. . . leading to our operating lease initiative: lowering the cost and amount of capital needed to grow Leased aircraft as of June 30, 2012 Large Medium Small Total Leased LACE Total LACE % Leased EBU 8 - - 8 8 47 17% WASBU - 1 - 1 1 22 2% NABU 2 11 1 14 8 30 26% AUSBU 1 - 2 3 2 18 11% OIBU - - - -
Slide 15: Our focus on BVA has yielded much higher operating cash flow generation
CHANGE: Our focus on BVA has yielded much higher operating cash flow generation . . . Net cash provided by operating activities 320 231.3 280 240 195.4 200 151.4 127.9 160 120 80 40 52.9 55.4 29.6 35.0 25.7 0 FY09 FY10 FY11 FY12 Q1 FY13 See June 30, 2012 10-Q for more information on cash flow provid
Slide 16: Combined with leasing, creates a significantly higher cash and liquidity position
. . . And when combined with leasing, creates a significantly higher cash and liquidity position Total Liquidity 450 402 400 387 350 300 261 262 227 250 200 178 116 150 78 100 145 160 140 50 100 0 31-Mar-10 31-Mar-11 31-Mar-12 30-Jun-12 Undrawn borrowing capacity Cash 16
Slide 17: Larger scope of organic growth identified between FY13 and FY17
. . . Which allows us to pursue the larger scope of organic growth identified between FY13 and FY17 Old Technology 80 3 5 69 Russia / Caspian 348 33 7 24 27 Europe New Technology 12 10 5 20 North America 30 56 31 Mid East, East Africa, India, Bangladesh 8 9 Malaysia, Thailand 109 5 Indonesia Gulf of
Slide 18: With the market outlook even better in FY13
. . . With the market outlook even better in FY13 • The overall market both in terms of tender activity and pricing is improving Overall activity • North Sea tender activity remains at historic levels above pre- • Aircraft supply is tightening with significant search and rescue 2008 levels (SAR) req
Slide 19: Unique combination of growth and balanced return opportunities
…Providing investors with a unique combination of growth and balanced return opportunities in various market environments We can provide a balanced return, but some years we will “Go Faster” depending on price signals The “Growth Price Signal” is provided The “Capital Return Price Signal” is by the
Slide 20: Europe (EBU)
Europe (EBU) • Europe represented 39% of Bristow operating revenue and 42% of adjusted EBITDAR* in Q1 FY13 • Operating revenue increased to $123.2M in Q1 FY13 from $108.3M in Q1 FY12 with the addition of four large aircraft and increased activity with new and existing contracts in the UK and Norway
Slide 21: West Africa (WASBU)
West Africa (WASBU) • Nigeria represented 21% of Bristow operating revenue and 22% of adjusted EBITDAR* in Q1 FY13 • Operating revenue of $66.4M in Q1 FY13 increased 27% from $52.3M in Q1 FY12 due to strong activity and a 12% increase in flight hours compared to Q1 FY12 • Adjusted EBITDAR increased
Slide 22: North America (NABU)
North America (NABU) • • North America represented 17% of Bristow operating revenue and 13% of adjusted EBITDAR* in Q1 FY13 • Adjusted EBITDAR doubled to $12.2M in Q1 FY13 vs. $6.3M in Q1 FY12 and adjusted EBITDAR margin was 23.2% in Q1 FY13 versus 14.3% in Q1 FY12 • Sequential improvement of almost
Slide 23: Australia (AUSBU)
Australia (AUSBU) • Australia represented 12% of Bristow operating revenue and 11% of adjusted EBITDAR* in Q1 FY13 • Operating revenue of $38.2M in Q1 FY13 decreased from $40.9M in Q1 FY12 due to a decrease in overall flight activity • Adjusted EBITDAR increased to $10.3M in Q1 FY13 from $8.3M in Q1
Slide 24: Other International (OIBU)
Other International (OIBU) • Other International represented 11% of Bristow operating revenue and 12% of adjusted EBITDAR* in Q1 FY13 • Operating revenue decreased to $33.2M in Q1 FY13 vs. $34.5M in Q1 FY12 due to decrease in activity in Ghana and the end of a contract in the Baltic Sea • Adjusted E
Slide 25: Organizational chart - as of June 30, 2012
Organizational chart - as of June 30, 2012 Bristow NABU EBU WASBU AUSBU OIBU BRS Academy 16% 39% 21% 12% 10% 2% U.S . GoM – 79/7 UK – 32/ 4 Nigeria – 45/7 Australia – 28 /10 Mexico – 12/5 Florida – 58/1 Louisiana – 14/1 Alaska – 12/3 Norway – 26/ 3 Brazil – 10/9 U.K. – 5/1 Trinidad – 10 /1 Operated
Slide 26: Aircraft fleet – medium and large
Aircraft fleet – medium and large as of June 30, 2012 Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Medium capacity 12-16 passengers Large Helicopters AS332L Super Puma 18 Twin Turbine 23 - 23 - AW189 16 Twin Turbine - - - 6 EC225 25 Twin Turbine 18 - 18 - Mil MI 8 20 Twin Turbine 7 -
Slide 27: Aircraft fleet – small, training and fixed
Aircraft fleet – small, training and fixed as of June 30, 2012 (continued) Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Small Helicopters Bell 206B 4 Turbine 1 2 3 - Bell 206 L-3 6 Turbine 4 6 10 - Small capacity 4-7 passengers Bell 206 L-4 6 Turbine 29 1 30 - Bell 407 6 Turbine 39 -
Slide 28: Order and options book as of June 30, 2012
Order and options book as of June 30, 2012 ORDER BOOK* OPTIONS BOOK Helicopter Helicopter # Class Delivery Date Location Contracted # Class Delivery Date 3 Large December 2012 EBU 3 1 Large September 2013 2 Large December 2012 WASBU 0 1 Large December 2013 2 Large March 2013 EBU 2 1 Large March 2014
Slide 29: Consolidated fleet changes and aircraft sales for Q1 FY13
Consolidated fleet changes and aircraft sales for Q1 FY13 Fleet changes Aircraft held for sale by BU Q 1 FY13 EBU WASBU NABU AUSBU OIBU Total Fleet Count Beginning Period 361 Large 3 - - 3 - 6 Delivered Medium 2 1 - 1 7 11 S-92 2 Small - - - - - - Total Delivered 2 Total 5 1 - 4 7 17 Removed Sales (
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 June 30, 2012 Operating revenue1 LACE LACE Rate 2, 3 EBU $123.2 47 $10.60 WASBU 66.4 22 12.35 NABU 52.6 30 7.05 AUSBU 38.2 18 8.48 OIBU 4 33.2 32 4.22 Total $313.6 147 $8.55 1) $ in millions 2) LACE Rate i
Slide 31: Historical LACE and LACE Rate by BU
Historical LACE and LACE Rate by BU LACE 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 EBU 42 43 48 46 44 46 46 45 47 WASBU 24 24 21 22 23 22 22 22 22 NABU 39 35 34 29 30 29 30 30 30 AUSBU 20 23 24 20 19 20 20 19 18 OIBU 33 33 33 38 39 38 38 34 32 Consolidated 157 158 159 154 154 154 155 149 147 LACE Ra
Slide 32: Adjusted EBITDAR margin trend
Adjusted EBITDAR margin* trend 2010 2011 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%39.1% 36.0% 33.7%36.9%35.8%34.3% 35.2% NABU 18.3%20.0%14.9%17.7% 17.8% 20.8%25.8%15.9% 8.5% 18.5% AUSBU 26.5%36.7%34.4%31.3% 32.4% 33.2%
Slide 33: Adjusted EBITDAR reconciliation
Adjusted EBITDAR* reconciliation Fiscal year ended 3/31/2010 3/31/2011 ($ in millions) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Net income $24.0 $33.7 $27.1 $28.7 $113.5 $20.9 $38.8 $42.3 $31.2 $133.3 Income tax expense 9.5 11.2 5.7 2.6 29.0 8.5 3.3 -11.8 7.1 7.1 Interest expense 10.0 10.6 11.0 1
Slide 34: Gross cash flow presentation
Gross cash flow presentation ($ in millions) Gross Cash Flow Reconciliation Q1 FY12 Q1 FY13 Net Income $21 $24 Depreciation and Amortization 23 21 Interest Expense 9 9 Interest Income (0) (0) Rent 9 16 Other Income/expense-net (0) 1 Gain/loss on Asset Sale (1) 5 Special Items 0 2 Tax Effect from Spe
Slide 35: GAAP reconciliation
GAAP reconciliation Three Months Ended June 30, 2012 2011 (In thousands, except per share amounts) Adjusted operating income ......................................... $ 47,470 $ 34,989 Gain (loss) on disposal of assets .............................. (5,315) 1,416 Severance costs for termination of a
Slide 36: Gross operating asset presentation
Gross operating asset presentation ($ in millions) Adjusted Gross Operating Assets Reconciliation Q1 FY12 Q1 FY13 Total Assets $2,701 $2,740 Accumulated Depreciation 463 468 Capitalized Operating Leases 136 194 Cash and Cash Equivalents (117) (227) Investment in Unconsolidated Entities (210) (201) G
Slide 37: Leverage reconciliation
Leverage reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of June 30, 2012 $ 736.3 $ 1,540.7 $ 2,277.0 32.3% Adjust for: Unfunded pension liability 109.8 109.8 NPV of all lease obligations 217.0 217.0 Letters of credit 1.5 1.5 Adjusted $ 1,064.6 (d)
Slide 38: Contact us
Contact us Bristow Group Inc. (NYSE: BRS) th 2103 City West Blvd., 4 Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com 38
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