Bristow Group, Inc. · NYSE:VTOL
Bristow — Q3 FY2018 Earnings Presentation
42 slides from Bristow's earnings presentation, Feb 9, 2018
Slide 1: Third quarter FY18 earnings presentation
Third quarter FY18 earnings presentation Bristow Group Inc. February 9, 2018 Exhibit 99.1
Slide 2: Forward-looking statements
Forward-looking statements Statements contained in this presentation regarding the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. These forward-looking statements include statements regarding earnings and liquidity guid
Slide 3: Executive summary and safety review
Executive summary and safety review
Slide 4: Q3 FY18 operational safety review
Q3 FY18 operational safety review AAR prior to FY16 includes commercial helicopter operations for Bristow Group and consolidated affiliates. AAR beginning in FY16 includes all Category A and B accidents for consolidated Bristow operations, including Airnorth, Bristow Academy and Eastern Airways. AAR
Slide 5: Significant progress in achieving FY18 STRIVE priorities
We continue to make significant progress in achieving our FY18 STRIVE priorities ~$125M recovered in OEM costs during Q3 FY18 with ~$5M expected in Q4 FY18 Achieved annual run rate G&A of ~12% of revenues excluding restructuring costs Implementing our global safety analytics to manage and further re
Slide 6: Lower rig day rates lead to increased rig utilization and flight activity
Lower rig day rates continue to lead to increased rig utilization driving short term helicopter requirements and increased flight activity Source: 2018 IHS Markit Working Rigs (GoM, North Sea, West Africa and Australia/New Zealand) (38.5%) decrease 1.3% increase (46.7%) decrease 11.0% increase Cumul
Slide 7: Improved liquidity outlook reflects better than expected performance
Improved liquidity outlook reflects better than expected operational and financial performance during the quarter Liquidity increased ~$116M to $505M during the quarter, primarily due to: OEM cost recoveries of ~$125M, which consists of ~$30M in operating cash flows and ~$95M in investing cash flows
Slide 8: Updated FY18 guidance
Updated FY18 guidance FY18 guidance assumes FX rates as of December 31, 2017 Operating revenue, adjusted EBITDA and rent for oil and gas includes corporate and other revenue and the impact of corporate overhead expenses Adjusted EBITDA for U.K. SAR and fixed wing (Eastern/Airnorth) excludes corporat
Slide 9: Delivering on STRIVE priorities with improved liquidity
We are delivering on our STRIVE priorities with a better than expected quarter and improved liquidity In the face of continued offshore market challenges, we have delivered on a majority of the critical goals that our FY18 STRIVE priorities represent: Safety improvement Cost efficiencies Portfolio a
Slide 10: Operational highlights
Operational highlights
Slide 11: Q3 FY18 results
Q3 FY18 results Adjusted EBITDA1 $ in millions Operating revenue $ in millions Net loss Adjusted net loss 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items $ in millions $ in millions
Slide 12: Europe Caspian
Europe Caspian United Kingdom Norway Turkmenistan $ in millions $ in millions 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items Operating revenue Adjusted EBITDA1
Slide 13: Africa
Africa Nigeria Egypt $ in millions $ in millions 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items Operating revenue Adjusted EBITDA1
Slide 14: Americas
Americas United States Canada Brazil Trinidad $ in millions Guyana $ in millions 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items Operating revenue Adjusted EBITDA1
Slide 15: Líder adjusted EBITDA
Líder Líder adjusted EBITDA1 1) Reconciliation of adjusted EBITDA and leverage provided in the appendix
Slide 16: Asia Pacific
Asia Pacific Russia Australia Malaysia $ in millions $ in millions 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items Operating revenue Adjusted EBITDA1
Slide 17: Appendix
Appendix
Slide 18: Organizational chart as of December 31, 2017
Organizational chart as of December 31, 2017 Business Unit (% of current period operating revenue) Corporate Region ( # of helicopters / # of fixed wing ) Joint Venture (# of helicopters / # of fixed wing) Bristow Europe Caspian 54% Africa 14% Americas 17% Asia Pacific 15% U.K. – 65 / 32 Norway – 29
Slide 19: Fleet as of December 31, 2017
Next generation aircraft Mature aircraft Fleet as of December 31, 2017
Slide 20: Fleet as of December 31, 2017 (continued)
Fleet as of December 31, 2017 (continued) Next generation aircraft Mature aircraft
Slide 21: Leased aircraft detail as of December 31, 2017
1) The percentage of LACE leased is calculated by taking the total LACE for leased aircraft divided by the total LACE for all aircraft we operate, including both owned and leased aircraft. See 10-Q Note 5 “Commitments and Contingencies” for more information provided on operating leases 1 Leased airc
Slide 22: Consolidated fleet changes and aircraft sales
See 10-Q Note 5 “Commitments and Contingencies” for more information provided on operating leases Consolidated fleet changes and aircraft sales *Includes write offs and lease returns and sale of Bristow Academy in November 2017
Slide 23: Operating revenue, LACE and LACE rate by region
Operating revenue, LACE and LACE rate by region 4 $ in millions LACE rate is annualized $ in millions per LACE Excludes assets held for sale, Bristow Academy, Airnorth and Eastern Airways
Slide 24: Historical LACE count by region
Historical LACE count by region
Slide 25: Historical LACE rate by region
Historical LACE rate by region $ in millions LACE rate calculated as YTD revenue annualized divided by period ending LACE count
Slide 26: Order and options book as of December 31, 2017
Order and options book as of December 31, 2017 Orders that can be cancelled prior to delivery date
Slide 27: Net asset fair market value
NOTE: The company derives market value from observable market data if available and may require utilization of estimates, applications of significant judgment and reliance upon valuation specialists’ and third party analysts’ reports. When using third party reports, the market value is as of the dat
Slide 28: Net asset FMV reconciliation
Net asset FMV reconciliation The net asset FMV disclosed herein includes the pre-grounding value for 16 owned H225s totaling ~$340 million (NBV of ~ $209 million) that has not been updated as third party appraisal sources are no longer publishing values for these oil and gas configured aircraft. Exc
Slide 29: Adjusted EBITDA margin trend by region
Adjusted EBITDA margin trend by region Adjusted EBITDA excludes special items and asset dispositions and margin is calculated by taking adjusted EBITDA divided by operating revenue
Slide 30: Historical U.K. SAR performance (1)
Historical U.K. SAR performance (1) GAP and U.K. SAR operating results are included within our Europe-Caspian region results. Adjusted EBITDA excludes corporate overhead allocations consistent with financial reporting. Adjusted EBITDA is a non-GAAP measure of which the most comparable GAAP measure i
Slide 31: Historical U.K. SAR performance (2)
Historical U.K. SAR performance (2) GAP and U.K. SAR operating results are included within our Europe-Caspian region results. Adjusted EBITDA excludes corporate overhead allocations consistent with financial reporting. Adjusted EBITDA is a non-GAAP measure of which the most comparable GAAP measure i
Slide 32: Historical fixed wing performance (1)
Historical fixed wing performance (1) Fixed wing operating results are included within their respective regional results. Adjusted EBITDA excludes corporate overhead allocations consistent with financial reporting. Adjusted EBITDA is a non-GAAP measure of which the most comparable GAAP measure is ne
Slide 33: Historical fixed wing performance (2)
Historical fixed wing performance (2) Fixed wing operating results are included within their respective regional results. Adjusted EBITDA excludes corporate overhead allocations consistent with financial reporting. Adjusted EBITDA is a non-GAAP measure of which the most comparable GAAP measure is ne
Slide 34: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Adjusted EBITDA excludes special items and asset dispositions
Slide 35: Adjusted EBITDA regional reconciliation
Adjusted EBITDA regional reconciliation Adjusted EBITDA excludes special items and asset dispositions
Slide 36: Rent by region
Rent by region $in millions Qi Q2 Q3 Qt Q2 13 Europe Caspian $18.9 $20.9 $30.2 $33.3] $1033) $347 $35.0 $33.4 19 2.0 15 16 7.0 18 7 25 Americas 5.0 5.1 5.6 5.0 20.7 54 58 5.0 Asia Pacific 5.1 5.2 69 8.0 25.2 94 9.2 92 Ce te 23 24 19 8.6 27 26 1 orporat . Consolidated $33.1 $35.4 $46.3 $49.9| $1648 $
Slide 37: GAAP reconciliation
GAAP reconciliation See information about special items in 10-Q or earnings release for Q3 FY18 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 share imp
Slide 38: Líder adjusted EBITDA and leverage
Líder adjusted EBITDA and leverage Adjusted EBITDA excludes special items and asset dispositions
Slide 39: Debt repayments and amortization as of December 31, 2017
Debt repayments and amortization as of December 31, 2017
Slide 40: Bank financial covenants
Bank financial covenants Includes a $12.4 million standby letter of credit issued under Bristow Group Inc.’s Revolving Credit Facility as support for Airnorth letters of credit issued by an Australian bank
Slide 41: Total leverage reconciliation
Adjusted EBITDA excludes gains and losses on dispositions of assets Debt does not include unamortized debt issuance cost Total leverage reconciliation
Slide 42: Bristow Group Inc. contact details
Bristow Group Inc. (NYSE: BRS) 2103 City West Blvd., 4th Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com Contact us