Bristow Group, Inc. · NYSE:VTOL
Bristow — Q2 FY2013 Earnings Presentation
39 slides from Bristow's earnings presentation, Nov 8, 2012
Slide 1: Second Quarter FY 2013 Earnings Presentation
Exhibit 99.1 Second Quarter FY 2013 Earnings Presentation Bristow Group Inc. November 8, 2012
Slide 2: Fourth quarter earnings call agenda
Fourth quarter earnings call agenda Introduction Linda McNeill, Director Investor Relations CEO remarks and operational highlights Bill Chiles, President and CEO Current and future financial performance Jonathan Baliff, SVP and CFO Closing remarks Bill Chiles, President and CEO Questions and answers
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 Officer comments
Chief Executive Officer comments Bill Chiles, President and CEO 4
Slide 5: Operational safety review
Operational safety review Total Recordable Injury Rate* per 200,000 man- Commercial Air Accident Rate* per 100,000 hours (cumulative) Flight Hours (Fiscal Year) 1 3 0.5 0.32 0.25 0.22 0.19 0.20 0.21 0.23 0.16 0.11 0.20 0.22 0.10 2 0 O N D J F M A M J J A S FY12 FY13 Lost Work Case Rate* per 200,000
Slide 6: Q2 FY13 Highlights
Q2 FY13 Highlights • Q2 operating revenue of $326M (9.7% increase from Q2 FY12, 1.6% increase from Q1 FY13) • Q2 GAAP EPS of $0.82 (1,071.4% increase from Q2 FY12, 26.2% increase from Q1 FY13) • Q2 adjusted EPS* of $0.80 (27.0% increase from Q2 FY12, 1.2% decrease from Q1 FY13) • Q2 adjusted EBITDAR
Slide 7: Current market environment
Current market environment • Global economic uncertainty is likely to prevail in the short term and we expect to see volatility in the price of Brent centered around $95- $110/bbl through 2015 • A cyclical upturn in global exploration and production spending, led by international growth, particularl
Slide 8: Europe (EBU)
Europe (EBU) • Europe represented 39% of Bristow operating revenue and 44% of adjusted EBITDAR* in Q2 FY13 • Operating revenue increased to $125.0M in Q2 FY13 from $113.7M in Q2 FY12 with the addition of large aircraft and increased flying activity • Adjusted EBITDAR increased to $43.2M in Q2FY13 fr
Slide 9: AS332L/EC225 Super Puma Fleet challenges
AS332L/EC225 Super Puma Fleet challenges • On October 22, 2012, during a flight to an offshore platform, the crew performed a controlled ditching in an EC225 helicopter flown by another operator. No one on board was injured and everyone was brought back to land safely. • The UK CAA issued a safety d
Slide 10: West Africa (WASBU)
West Africa (WASBU) • Nigeria represented 21% of Bristow operating revenue and 18% of adjusted EBITDAR* in Q2 FY13 • Operating revenue increased by 7% to $65.3M in Q2 FY13 from $61.1M in Q2 FY12 due to improvement in contract pricing with flight hours staying flat quarter over quarter • The high vol
Slide 11: North America (NABU)
North America (NABU) • North America represented 18% of Bristow operating revenue and 12% of adjusted EBITDAR* in Q2 FY13 • Operating revenue increased 19% to $57.0M in Q2 FY13 from $47.9M resulting from the addition of the new large a/c despite no significant change in the flight hours • Adjusted E
Slide 12: Australia (AUSBU)
Australia (AUSBU) • Australia represented 12% of Bristow operating revenue and 11% of adjusted EBITDAR* in Q2 FY13 • Operating revenue increased 26.2% to $38.4M in Q2 FY13 from $30.5M in Q2 FY12 due to increased flying activity driven by new contracts and ad hoc work • Adjusted EBITDAR more than dou
Slide 13: Other International (OIBU)
Other International (OIBU) • Other International represented 10% of Bristow operating revenue and 15% of adjusted EBITDAR* in Q2 FY13 • Operating revenue decreased to $32.1M in Q2 FY13 vs. $35.2M in Q2 FY12 due to the end of short-term contracts in Suriname and the Baltic Sea • Adjusted EBITDAR marg
Slide 14: Financial discussion
Financial discussion Jonathan Baliff, SVP and CFO 14
Slide 15: Financial highlights Q2
Financial highlights Q2: Adjusted EPS and EBITDAR Summary Q2FY2012 to Q2FY2013 adjusted EPS bridge $0.13 $0.19 $0.15 $0.80 $0.63 Q2FY2012 Operations Corporate and Other FX Changes Q2FY2013 Q2FY2012 to Q2FY2013 adjusted EBITDAR bridge (in millions) $7.4 $5.2 $84.9 $11.5 $71.2 Q2FY2012 Operations Corp
Slide 16: Financial highlights YTD
Financial highlights YTD: Adjusted EPS and EBITDAR Summary YTD FY2012 to YTD FY2013 adjusted EPS bridge $0.05 $0.03 $0.40 $1.60 $1.18 YTD FY2012 Operations Corporate and Other FX Changes YTD FY2013 YTD FY2012 to YTD FY2013 adjusted EBITDAR bridge (in millions) $3.0 $1.1 $28.5 $168.7 $138.3 YTD FY201
Slide 17: Multi-year contracts for large aircraft with improved rates
We continue to renew and add new multi-year contracts for large aircraft with improved rates Lider (Petrobras) 4 X LARGE OIBU Lider (Petrobras) 1 X LARGE BRS LEASED TO LIDER AUSBU INPEX 6 X LARGE WITH AN OPTION TO ADD A LONG TERM SAR A/C PREVIOUSLY ANNOUNCED NEW UK North Sea 2 X LARGE CONTRACTS WITH
Slide 18: LACE rate continues to increase
LACE rate continues to increase as new aircraft and contracts replace less productive aircraft Consolidated commerical aircraft Large Aircraft Equivalent (LACE)* 170 8.95 10 350 295 7.89 LACE* 290 279 7.15 8 300 268 253 160 LACE Rate * 6.14 6.49 250 ($ in millions) 6 200 164 159 150 153 149 142 164
Slide 19: BVA – Six Quarters
BVA – Six Quarters Year over year improvement for Q2 FY13 • Q2 FY13 BVA is $2.1M, which is a BVA* Q1 FY12 Q2 – FY13 $2.1M improvement over Q2 FY12 20 13.6 • YTD FY13 consolidated BVA is 15 positive $4.0M, a $19.4M increase from same period FY12 10 • Positive year-over-year change in 5 1.9 2.1 BVA is
Slide 20: Stronger operating cash flow generation in Q2 FY13
Our progress on BVA continues with stronger operating cash flow generation in Q2 FY13 Net cash provided by operating activities* 231 300 195 Full fiscal year 250 YTD (from Apr 1 to Sep 30) 151 200 128 150 100 135 117 50 94 69 55 0 FY09 FY10 FY11 FY12 YTD FY13 * See 10-Q for more information on cash
Slide 21: Financial highlights: FY13 guidance reaffirmed
Financial highlights: FY13 guidance reaffirmed • EPS guidance range of $3.25 - $3.55, excluding aircraft sales and special items. We anticipate a better overall second half of FY13 compared to the first half LACE (Large AirCraft Equivalent) 152 - 156 Depreciation expense ~ $90 - 95M LACE Rate ~ $8.2
Slide 22: Conclusions
Conclusions • Continued improvement in revenue generation through new contract awards across all business units • Stronger year-over-year EBITDAR and BVA margins show strength of business model and commercial leadership • Unmatched financial profile allows Bristow to capitalize on consolidation (Cou
Slide 23: Appendix
Appendix BEC ERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 24: Organizational Chart - as of September 30, 2012
Organizational Chart - as of September 30, 2012 Operated Aircraft Bristow owned and/or operated 349 aircraft as of September 30, 2012 Affiliated Aircraft Key Bristow affiliates and joint ventures operated 197 aircraft Corporate as of September 30, 2012 Business Unit (% of FY13 Operating Revenue) Reg
Slide 25: Aircraft Fleet – Medium and Large
Aircraft Fleet – Medium and Large As of September 30, 2012 Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered* Large Helicopters AS332L Super Puma 18 Twin Turbine 19 - 19 - Medium capacity 12-16 passengers AW189 16 Twin Turbine - - - 6 EC225 25 Twin Turbine 19 - 19 3 Mil MI 8 20 Twin Turbin
Slide 26: Aircraft Fleet – Small, Training and Fixed
Aircraft Fleet – Small, Training and Fixed As of September 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
Slide 27: Operating lease strategy
Operating lease strategy: lowering the cost and amount of capital needed to grow Leased aircraft as of September 30, 2012 Small Medium Large Total Leased LACE Total LACE % Leased EBU - - 7 7 7 45 16% WASBU - 1 - 1 1 22 2% NABU 1 11 2 14 8 31 25% AUSBU 2 - 3 5 4 17 21% OIBU - - - - - 28 0% Total 3 12
Slide 28: Consolidated fleet changes and aircraft sales for Q2 FY13
Consolidated fleet changes and aircraft sales for Q2 FY13 Fleet changes Held for sale aircraft in consolidated fleet Q 1 FY13 Q 2 FY13 YTD Small Medium Large Total Fleet Count Beginning 361 357 361 Delivered - EBU - 2 3 5 S-92 2 2 WASU - 1 - 1 EC225 1 1 NABU - - - - Total Delivered 2 1 3 AUSBU - 2 1
Slide 29: Operating revenue, LACE and LACE rate by BU
Operating revenue, LACE and LACE rate by BU Operating Revenue, LACE, and LACE Rate by BU YTD FY13 Op revenue* LACE LACE Rate* EBU 248 45 11.03 WASBU 132 22 12.24 NABU 109 31 7.11 AUSBU 77 17 9.29 IBU 65 28 4.62 Total 631 142 8.95 1) $ in millions 2) LACE Rate is annualized 3) $ in millions per LACE
Slide 30: Operating revenue, LACE and LACE rate by BU
Operating revenue, LACE and LACE rate by BU LACE 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 EBU 42 43 48 46 44 46 46 45 47 45 WASBU 24 24 21 22 23 22 22 22 22 22 NABU 39 35 34 29 30 29 30 30 30 31 AUSBU 20 23 24 20 19 20 20 19 18 17 OIBU 33 33 33 38 39 38 38 34 32 28 Consolidated 157 158 159 154 1
Slide 31: Order and options book as of November 7, 2012
Order and options book as of November 7, 2012 ORDER BOOK* OPTIONS BOOK Helicopter Helicopter # Class Delivery Date Location Contracted # Class Delivery Date 5 Large December 2012 EBU 5 of 5 1 Large June 2014 2 Large March 2013 EBU 2 of 2 1 Large September 2014 4 Large September 2013 NABU 1 of 4 3 La
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.
Slide 33: Adjusted EBITDAR reconciliation
Adjusted EBITDAR* reconciliation Fiscal year ended, 3/31/2010 3/31/2011 ($ in millions) Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD 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 10.8 42.4 11
Slide 34: Bristow Value Added sample calculation
Bristow Value Added (BVA) Sample calculation for Q2 FY13 and Q2 FY12 Bristow Value Added = Gross Cash Flow – (Gross Operating Assets X Capital Charge) BVA = GCF - ( GOA X 10.5%** ) Bristow Value Added calculation for Q2 FY13 $2.1 = $79* - ( $2,922* X 2.625%** ) Bristow Value Added calculation for Q2
Slide 35: Gross Cash Flow Presentation
Gross Cash Flow Presentation (in millions) Gross Cash Flow Reconciliation FY12Q2 FY13Q2 Net Income 3 30 Depreciation and Amortization 25 23 Interest Expense 9 9 Interest Income (0) (0) Rent 9 15 Other Income/expense-net (1) 0 Earnings of Discontinued Operations - - Gain/loss on Asset Sale 2 1 Specia
Slide 36: Gross Operating Asset Presentation
Gross Operating Asset Presentation (in millions) Adjusted Gross Operating Assets Reconciliation Q2 FY12 Q2 FY13 Total Assets 2,700 2,785 Accumulated Depreciation 465 464 Capitalized Operating Leases 129 225 Cash and Cash Equivalents (140) (348) Investment in Unconsolidated Entities (202) (215) Goodw
Slide 37: GAAP reconciliation
GAAP reconciliation Three Months Ended Six Months Ended September 30, September 30, 2012 2011 2012 2011 (In thousands) Adjusted operating income $ 46,274 $ 38,493 $ 93,276 $ 73,482 Loss on disposal of assets (1,262) (1,611) (6,577) (195) Special items 2,316 (27,287) 622 (27,287) Operating income $ 4
Slide 38: Leverage Reconciliation
Leverage Reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of September 30, 2012 $ 734.7 $ 1,580.2 $ 2,314.9 31.7% Adjust for: Unfunded Pension Liability 112.2 112.2 NPV of Lease Obligations 224.8 224.8 Letters of credit 1.5 1.5 Adjusted $ 1,073.2 (d)
Slide 39: 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 39