Bristow Group, Inc. · NYSE:VTOL
Bristow — Era Group — Barclays CEO Energy-Power Conference 2014
22 slides from Bristow's conference presentation, Sep 3, 2014
Slide 1: Barclays CEO Energy-Power Conference
Barclays CEO Energy-Power Conference 0 September 3, 2014
Slide 2: Forward-looking statements
1 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 terminology such as “may,” “will,” “expect,” “intend,” “es
Slide 3: Non-GAAP Financial Measures
2 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, interest expense and interest expense on advances from SEACOR), Taxes, Depreciation and Amortization. Adju
Slide 4: Company Overview
• Founded in Alaska in 1948, Era is the longest-serving helicopter transport company in the U.S. • Announced CEO change on August 28, 2014, with Chris Bradshaw assuming the role of Acting CEO • NYSE:ERA – $525mm market capitalization(a) • 166 helicopters(b) supporting two primary businesses – Operat
Slide 5: Areas of Operation
Areas of Operation Australia Continental United States Sweden Aircraft in Region (# of aircraft) Spain Canada India Mexico 1 UK 3 Norway Brazil Training Center Joint Venture 17 2 1 102 3 Joint Ventures Australia 12 24 Alaska 4 1 Colombia Note: As of 6/30/14. Map excludes one AW139 (medium) helicopte
Slide 6: Fleet Snapshot
Heavy, 9, 5% Medium, 61, 37% Light Twin, 37, 22% Light Single, 59, 36% 5 Fleet Snapshot • On a dollar-weighted basis: − Heavy and medium helicopters represent 80% of fleet value − Average age of the fleet is 4 years(a) Fleet by Type Fleet by Ownership A119 AS350 AW139 Bell 212 Bell 412 S76A/A++ S76C
Slide 7: Helicopter Order and Options Book
6 C ur re nt O rd er B oo k O pt io ns Delivery Class Type Number Remaining Amount Firm Cancellable 2014 Heavy AW189 3 $35.8 – 2015 Heavy AW189 2 $14.1 $16.6 2015 Heavy S92 1 $17.2 – 2016 Heavy AW189 3 – $51.0 2016 Heavy S92 2 $51.3 – 2017 Heavy AW189 2 – $34.7 2017 Heavy S92 1 $26.4 – TBD Light Twi
Slide 8: Aeroleo investment in Brazil
• Era initially invested in Aeroleo in July 2011 (50% economic interest) – Shortly after mobilizing 4 AW139s to Brazil in 2011, Petrobras cancelled the contract award due to an AW139 accident at one of Aeroleo’s competitors – Beginning in late 2012 and continuing through most of 2013, Aeroleo’s 3 EC
Slide 9: Houma Base Expansion
• Significant expansion of our Houma, LA base is currently underway with completion expected in Q4 – When completed, it will be the premier helicopter operating facility in the Gulf Coast area • Strategic benefits – Customer sustainability, including future growth – Increased passenger terminal capa
Slide 10: Investment Highlights
Investment Highlights 9 Sound Industry Structure Stable and Growing End Markets Strong Customer Relationships Residual Value Retention Attractive Growth Profile Substantial Net Asset Value
Slide 11: Stable and Growing End Markets
10 Stable and Growing End Markets Demand has grown through periods of economic and price volatility Global Deepwater Platform With Helipad Count Offshore Spending(a) ($bn) (a) Excludes costs for capital equipment, offshore and subsea infrastructure and seismic exploration Source: IHS, Wall Street re
Slide 12: Residual Value Retention
11 Residual Value Retention (a) Indexed resale value of several helicopter types by vintage, inflation adjusted to 2011 dollars. Source: HeliValue$, Cowen and Co. (b) Index includes: Augusta Westland 109A Widebody (1988 model), Bell 212 (1979 model), Bell 412 (1984 model), Eurocopter BK 117A-4 (1988
Slide 13: Historical Financial Performance
Historical Financial Performance 12 Revenue Adjusted EBITDA (Gains on Asset Sales) Margin Fiscal Year ending December 31 $215 $249 $236 $235 $258 $273 $299 $48 $52 $68 $62 $82 $79 $95 22% 21% 29% 26% 32% 29% 32% 10% 15% 20% 25% 30% 35% 40% 45% $0 $50 $100 $150 $200 $250 $300 $350 ($ in m ill io ns )
Slide 14: Free cash flow and capitalization
13 • Era continues to generate substantial free cash flow before growth capex • Flexibility to deploy capital for attractive opportunities ̶ growth via organic capex or strategic acquisitions ̶ return of capital to shareholders • On August 14, 2014, Era announced that its Board of Directors authoriz
Slide 15: Net Asset Value
14 Net Asset Value $15 $20 $25 $30 $35 $40 $45 $50 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 May-14 Aug-14 NAV per Share (excl. deferred taxes) Stock Price NAV per Share (net of deferred taxes) Book Value per Share
Slide 16: Appendix
Ore GROUP INC. Appendix
Slide 17: Fleet Overview
16 Owned Joint Ventured Leased-In Managed Total Average Age(a) Heavy: EC225 9 – – – 9 4 Total Heavy 9 – – – 9 Medium: AW139 37 1 – – 38 4 B212 9 – – – 9 36 B412 6 – – – 6 33 S76 A/A++ 2 – – – 2 24 S76 C+/C++ 5 – – 1 6 7 Total Medium 59 1 – 1 61 Light – twin engine: A109 7 – – 2 9 8 BK-117 – – 2 1 3
Slide 18: NAV per Share Calculation
17 Notes: 1) NAV calculation only includes fair market value of helicopters that we own; it does not include any value for leased-in or managed helicopters that we operate 2) Helicopter fair market values based on annual desktop appraisal performed by Ascend Worldwide; new helicopters delivered subs
Slide 19: Operating Revenues by Line of Service
18 (a) Primarily oil and gas services, but also includes revenues from activities such as firefighting and utility support Operating Revenues by Line of Service Three Months Ended ($000s) 30-Jun-14 31-Mar-14 31-Dec-13 30-Sep-13 30-Jun-13 Oil and gas:(a) U.S. Gulf of Mexico $51,715 $49,141 $45,435 $4
Slide 20: Flight Hours by Line of Service
19 Note: Does not include hours flown by helicopters in our dry-leasing line of service (a) Primarily oil and gas services, but also includes revenues from activities such as firefighting and utility support Flight Hours by Line of Service Three Months Ended 30-Jun-14 31-Mar-14 31-Dec-13 30-Sep-13 3
Slide 21: Adjusted EBITDA reconciliation
20 (a) See next page for Adjusted EBITDA reconciliation to Net Income (Loss) Fiscal Year 3 Mos. Ended June 30, ($ millions) 2009 2010 2011 2012 2013 2014 2013 Revenue 235.7$ 235.4$ 258.1$ 272.9$ 299.0$ 86.6$ 74.2$ Operating Expenses 148.0 147.2 162.7 167.2 186.6 54.7 46.9 G&A 21.4 25.8 31.9 34.8 38.
Slide 22: Adjusted EBITDA notes
• Historically, SEACOR charged its corporate costs and overhead charges to all of its operating divisions − These charges have been excluded from Adjusted EBITDA to more accurately reflect Era’s historical results if we had not been a SEACOR subsidiary • Effective as of the spin-off, Era pays SEACOR
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