Bristow Group, Inc. · NYSE:VTOL
Bristow — Era Group — Q2 2019 Earnings Presentation
16 slides from Bristow's earnings presentation, Jul 30, 2019
Slide 1: Q2 2019 Earnings Presentation
Exhibit 99.2 Q2 2019 Earnings Presentation July 31, 2019
Slide 2: Q2 2019 Earnings Call Agenda
Q2 2019 Earnings Call Agenda I. Introduction Crystal Gordon, SVP, General Counsel and CAO II. Operational Highlights Chris Bradshaw, President and CEO III. Financial Review Jennifer Whalen, SVP and CFO IV. Concluding Remarks Chris Bradshaw, President and CEO V. Questions & Answers 2
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation contains “forward-looking statements.” Forward-looking statements give the Company’s current expectations or forecasts of future events. Forward-looking statements generally can be identified by the use of forward-looking te
Slide 4: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation This presentation includes EBITDA and Adjusted EBITDA as supplemental measures of the Company’s operating performance. EBITDA is defined as Earnings before Interest (includes interest income and interest expense), Taxes, Depreciation and Amortization. Adjus
Slide 5: Safety Update and Financial Flexibility
Safety Update and Financial Flexibility • Era achieved its dual goals of ZERO air accidents and ZERO recordable workplace incidents YTD 2019 – ZERO air accidents in trailing three year period – Over 675 consecutive days without a recordable workplace incident • Total available liquidity as of June 3
Slide 6: Free Cash Flow Profile and Capital Allocation Update
Free Cash Flow Profile and Capital Allocation Update • Era generated $7.3 million of free cash flow in the first six months of 2019 – Continues track record of positive free cash flow since 2015 • From June 1 through July 26, 2019, the Company repurchased approximately 1.0 million ERA shares for gro
Slide 7: Q2 2019 Highlights – Sequential Quarter Comparison
Q2 2019 Highlights – Sequential Quarter Comparison • Revenues were $4.2 million higher than Q1 2019 Revenues ($000s) – Primarily due to the commencement of new dry- leasing and emergency response services contracts $75,000 and higher utilization in oil and gas operations 55,480 • Operating expenses
Slide 8: Q2 2019 Highlights – Calendar Quarter Comparison
Q2 2019 Highlights – Calendar Quarter Comparison • Revenues were $2.2 million lower than Q2 2018 Revenues ($000s) – Primarily due to lower utilization in U.S. oil and gas operations $75,000 – Partially offset by higher utilization in international oil 57,728 55,480 and gas operations and the commenc
Slide 9: Appendix
Appendix
Slide 10: Fleet Overview
Fleet Overview Average Helicopters Age Heavy: S92 4 3 H225 1 11 AW189 4 3 Total Heavy 9 Medium: AW139 36 9 S76 C+/C++ 5 12 B212 5 40 Total Medium 46 Light – twin engine: A109 7 13 EC135 (1) 13 11 BO-105 3 30 Total Light – twin engine 23 Light – single engine: A119 13 12 AS350 17 21 Total Light – sin
Slide 11: Healthy Leverage Metrics and Liquidity
Healthy Leverage Metrics and Liquidity June 30, 2019 ($000s) Cash and cash equivalents $ 88,430 • As of June 30, 2019, Era had over $88 million in Credit facility $ — cash balances and $124 million of remaining Promissory notes 19,148 availability under the credit facility for total liquidity Total
Slide 12: Operating Revenues and Flight Hours by Line of Service
Operating Revenues and Flight Hours by Line of Service Three Months Ended Revenue ($000s) 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19 (a) Oil and gas: U.S. $ 37,771 $ 35,473 $ 33,876 $ 32,466 $ 33,270 International 14,160 13,665 13,357 13,616 14,499 Total oil and gas $ 51,931 $ 49,138 $ 47,233
Slide 13: Quarterly Reconciliation of Non-GAAP Financial Measures
Quarterly Reconciliation of Non-GAAP Financial Measures Quarterly Historical EBITDA and Adjusted EBITDA ($ thousands) 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19 Net Income (Loss) $ (10,516) $ 31,279 $ (5,948) $ (6,085) $ 4,874 Depreciation 10,116 9,541 9,530 9,450 9,520 Interest income (346)
Slide 14: Historical Financial Highlights
Historical Financial Highlights Six Months Ended Fiscal Year June 30th ($ millions) 2014 2015 2016 2017 2018 2018 2019 Revenue $ 331.2 $ 281.8 $ 247.2 $ 231.3 $ 221.7 $ 115.1 $ 106.8 Operating expenses 204.4 171.5 169.9 167.4 151.5 78.0 75.5 G&A 44.0 42.8 36.2 42.1 45.1 26.9 17.8 Depreciation 46.3 4
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures • Adjusted EBITDA reflects special items: – Executive severance adjustments of $2.5 million and $0.6 million in 2014 and 2017, respectively – A pre-tax impairment charge of $2.5 million in 2014 representing a reserve against a note receivable – A pre-tax
Slide 16: Reconciliation of Free Cash Flow and Free Cash Flow Yields
Reconciliation of Free Cash Flow and Free Cash Flow Yields ($ thousands) 2015 2016 2017 2018 LTM Net cash provided by operating activities $ 44,456 $ 58,504 $ 20,096 $ 54,354 $ 59,066 Plus: Proceeds from disposition of property and equipment 25,328 28,609 9,392 29,590 93 Less: Purchases of property