Bristow Group, Inc. · NYSE:VTOL
Bristow — Q4 FY2012 Earnings Presentation
36 slides from Bristow's earnings presentation, May 24, 2012
Slide 1: Fourth Quarter FY 2012 Earnings Presentation
Exhibit 99.1 Fourth Quarter FY 2012 Earnings Presentation Bristow Group Inc. May 24, 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 - Q4 and FY12 Financial discussion - FY13 – Moving Forward Closing r
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- hours (cumulative) Air Accident Rate* per 100,000 0.3 0.25 0.28 Flight Hours (Fiscal Year) 0.23 0.25 0.22 0.23 3 0.18 0.19 0.20 0.22 0 0 2 0 A M J J A S O N D J F M FY12 1 0.78 0.78 Lost Work Case Rate per 200,000 0.54 0.53 man-
Slide 6: Q4 and FY12 highlights
Q4 and FY12 highlights • Q4 operating revenue of $318.7M (16.4% increase • FY12 operating revenue of $1.2B (7.6% increase from Q4 FY11, 7.4% increase from Q3 FY12) from FY11) • Q4 GAAP EPS of $0.39 (53.6% decrease from Q4 • FY12 GAAP EPS of $1.73 (51.9% decrease from FY11, 44.3% decrease from in Q3
Slide 7: Current market environment
Current market environment • Price of oil continues to fluctuate given political instability in the Middle East and North Africa coupled with the uncertainty in Europe • Global E & P spending remains strong with approximately 12% and 13% growth expected for 2012 and 2013, respectively • Most of our
Slide 8: Europe (EBU)
Europe (EBU) • Europe represents 39% of Bristow operating revenue and 41% of adjusted EBITDAR* in Q4 FY12 • Operating revenue increased to $121.0M from $101.2M in Q4 FY11 due to increased flying activity • Adjusted EBITDAR margin increased to 36.1% in Q4 FY12 from 34.4% in Q4 FY11 reflecting higher
Slide 9: West Africa (WASBU)
West Africa (WASBU) • Nigeria represents 22% of Bristow operating revenue and 23% of adjusted EBITDAR* in Q4 FY12 • Operating revenue of $66.2M in Q4 FY12 increased from $50.8M in Q4 FY11 due to new contracts and price increases • Adjusted EBITDAR margin of 36.6% in Q4 FY12 vs 34.3% in Q4 FY11 and 3
Slide 10: Australia (AUSBU)
Australia (AUSBU) • Australia represented 14% of Bristow operating revenue and adjusted EBITDAR* in Q4 FY12 • Operating revenue of $43.4M in Q4 FY12 increased f rom $40.8M in Q4 FY11 due to increased utilization • Adjusted EBITDAR increased to $15.5M in Q4 FY12 from $12.7M in Q4 FY11 and was $36.0M
Slide 11: Other International (OIBU)
Other International (OIBU) • Other International represented 11% of Bristow operating revenue and 14% of adjusted EBITDAR* in Q4 FY12 • Operating revenue decreased to $34.6M in Q4 FY12 vs. $36.3M in Q4 FY11 due to exiting Libya and was partially offset by new contracts • Adjusted EBITDAR margin of 4
Slide 12: North America (NABU)
North America (NABU) • • North America represents 14% of Bristow operating revenue and 8% of adjusted EBITDAR in Q4 FY12 • Adjusted EBITDAR increased to $8.2M in Q4 FY12 vs. $3.4M in Q4 FY11 • Adjusted EBITDAR margin of 19.4% in Q4 FY12 increased significantly from 8.5% in Q4 FY11; FY12 adjusted EBI
Slide 13: Financial discussion
Financial discussion Jonathan Baliff, SVP and CFO 13
Slide 14: Financial highlights: Adjusted EPS Summary
Financial highlights: Adjusted EPS Summary Q4FY11 to Q4 FY12 adjusted EPS bridge FY11 to FY12 adjusted EPS * Adjusted EPS amounts exclude gains and losses on dispositions of assets and any special items during the period. See reconciliation of these items to GAAP in our earnings release for the quar
Slide 15: Financial highlights: Adjusted EBITDAR Summary
Financial highlights: Adjusted EBITDAR Summary Q4FY11 to Q4 FY12 adjusted EBITDAR bridge (in millions) FY11 to FY12 adjusted EBITDAR bridge (in millions) * Adjusted EBITDAR amounts exclude gains and losses on dispositions of assets and any special items during the period. See reconciliation of these
Slide 16: BVA – Six Quarters
BVA – Six Quarters Sequential quarterly improvement • FY12 consolidated BVA is -$0.7M, representing 8.4M BVA Q3 FY11 Q4 – FY12 year-over-year increase • Positive change in BVA driven is by: Revenue growth in Europe, West Africa, and North America Capital efficiency through leasing of aircraft and wo
Slide 17: LACE rate increases drove BVA and cash flow improvement
LACE rate increases drove BVA and cash flow improvement as overall LACE declined due to aircraft sales Consolidated commerical aircraft Large Aircraft Equivalent (LACE) 168 9 7.89 350 324 165 8 7.15 295 290 6.49 300 279 162 7 268 6.14 5.72 250 159 6 LACE 156 5 LACE Rate 200 161 164 159 ($ in million
Slide 18: Adjusted EBITDAR margin has returned to pre-recession levels
Adjusted EBITDAR margin has returned to pre- recession levels Calculated by taking adjusted EBITDAR divided by operating revenue; adjusted EBITDAR excludes special items and asset dispositions 18
Slide 19: Our progress on BVA has yielded increased operating cash flow generation in FY12
Our progress on BVA has yielded increased operating cash flow generation in FY12 Bristow generated 53% more operating cash flow in FY12 compared to FY11 280 Net cash provided by operating activities 240 231.3 195.4 200 160 151.4 127.9 120 87.6 80 40 0 FY08 FY09 FY10 FY11 FY12 See 10-K for more infor
Slide 20: Operating lease strategy: lowering the cost and amount of capital needed to grow
Operating lease strategy: lowering the cost and amount of capital needed to grow Leased aircraft as of March 31, 2012 Large Medium Small Total Leased LACE Total LACE % Leased EBU 9 - - 9 9 45 20.0% WASBU - 1 - 1 1 22 2.3% AUSBU 1 - 2 3 2 19 10.5% OIBU 1 - - 1 1 33 3.0% NABU 2 11 1 14 8 30 25.8% Tota
Slide 21: Changes in fleet strategy have been driven by Client Promise and BVA initiatives
Changes in fleet strategy have been driven by Client Promise and BVA initiatives • In Q2 FY12, management updated our global fleet strategy Inventory which incorporated aspects of Client Promise and BVA review • Subsequent pre-tax inventory written down $25.9M (non-cash) • Excellent year for aircraf
Slide 22: All of these efforts have led to a robust cash and liquidity position at year end
All of these efforts have led to a robust cash and liquidity position at year end • Total liquidity, including cash on Total liquidity as of March 31 hand and unused revolver capacity, has increased by more than 50% from FY11 • In FY12 cash on hand increased by ~ 125% • In Q4 FY12 we have also paid
Slide 23: Financial highlights: FY13 guidance
Financial highlights: FY13 guidance • EPS guidance range $3.25 - $3.55 excluding aircraft sales and special items • Depreciation and amortization expense ~ $90 – $95 million • SG & A expense ~ $135 - $140 million • Interest expense ~ $38 - $43 million • Tax ~ 20% - 24 % (assuming revenue earned in s
Slide 24: Conclusions
Conclusions • We have built a great company – now the focus is on execution • Target Zero / Client Promise is the top priority • Smarter growth with a prudent capital structure, low cost and capital efficient financings • Strong financial profile with liquidity, cash flow and a commitment to credit
Slide 25: Appendix
Appendix BEC ERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 26: Organizational Chart - as of March 31, 2012
Organizational Chart - as of March 31, 2012 Operated Aircraft Bristow owns and/or operates 361 aircraft as of March 31, 2012 Affiliated Aircraft Key Bristow affiliates and joint ventures operate 195 aircraft Corporate as of March 31, 2012 Business Unit (* % of FY12 Operating Revenue) Region ( # of A
Slide 27: Aircraft Fleet – Medium and Large
Aircraft Fleet – Medium and Large As of March 31, 2012 Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Medium capacity 12-16 passengers Large Helicopters AS332L Super Puma 18 Twin Turbine 25 - 25 - AW189 16 Twin Turbine - - - 6 EC225 25 Twin Turbine 18 - 18 - Mil MI 8 20 Twin Turbine 7 -
Slide 28: Aircraft Fleet – Small, Training and Fixed
Aircraft Fleet – Small, Training and Fixed As of March 31, 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 29: Consolidated Fleet Changes and Aircraft Sales for Q4 FY12
Consolidated Fleet Changes and Aircraft Sales for Q4 FY12 Fleet changes Q 1 FY12 Q 2 FY12 Q 3 FY12 Q 4 FY12 YTD Aircraft held for sale by BU Fleet Count Beginning Period 373 372 366 364 373 Delivered EBU WASBU AUSBU OIBU NABU Total * EC225 2 1 3 Large 3 - 3 1 - 7 S-92 2 3 1 6 Medium 2 1 1 6 - 10 Bel
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 March 31, 2012 Op revenue* LACE LACE Rate* AUSBU 148.3 19 7.78 NABU 176.5 30 5.79 WASBU 246.3 22 11.46 EBU 449.9 45 10.10 IBU 141.5 34 4.22 Total 1,162.5 149 7.89 * $ in millions 30
Slide 31: Order and options book as of March 31, 2012
Order and options book as of March 31, 2012 ORDER BOOK* OPTIONS BOOK Helicopter Helicopter # Class Delivery Date Location Contracted # Class Delivery Date 1 Large June 2012 OIBU 1 of 1 1 Medium June 2013 1 Large June 2012 WASBU 1 of 1 2 Medium September 2013 5 Large December 2012 EBU 3 of 5 1 Large
Slide 32: Adjusted EBITDAR margin trend and reconciliation
Adjusted EBITDAR margin* trend and reconciliation 2010 2011 2012 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD EBU 31.2%31.7%31.9%28.0%30.8% 29.8%31.5%34.6%34.4%32.7% 33.0%31.4%30.7%36.1%32.9% WASBU 31.7%36.8%33.7%39.1%36.0% 33.7%36.9%35.8%34.3%35.2% 29.5%35.5%37.2%36.6%35.0% NABU 18.3%20.0%14.9%1
Slide 33: GAAP reconciliation
GAAP reconciliation Three Months Ended Fiscal Year Ended March 31, March 31, 2012 2011 2012 2011 (Unaudited) (In thousands, except per share amounts) Adjusted EBITDAR ......................................................... $ 99,458 $ 81,055 $ 319,488 $ 297,714 Gain (loss) on disposal of assets....
Slide 34: Special items reconciliation
Special items reconciliation Three Months Ended March 31, 2012 Adjusted Adjusted Diluted Operating Adjusted Adjusted Earnings Income EBITDAR Net Income Per Share (Unaudited) (In thousands, except per share amounts) (1) Impairment of inventories .............. $ (1,309) $ (1,309) $ (934) $ (0.03) (2)
Slide 35: Leverage Reconciliation
Leverage Reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of March 31, 2012 $ 757.2 $ 1,521.8 $ 2,279.1 33.2% Adjust for: Unfunded Pension Liability 111.7 111.7 NPV of Lease Obligations 190.2 190.2 Guarantees 16.0 16.0 Letters of credit 1.5 1.5 Adjus
Slide 36: 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 36