Bristow Group, Inc. · NYSE:VTOL
Bristow — Q3 FY2011 Earnings Presentation
34 slides from Bristow's earnings presentation, Feb 3, 2011
Slide 1: Third Quarter FY 2011 Earnings Presentation
Third Quarter FY 2011 Earnings Presentation Bristow Group Inc. February 3, 2011 Exhibit 99.1
Slide 2: Third quarter earnings call agenda
Third quarter earnings call agenda • Introduction (Linda McNeill, Investor Relations Manager) • CEO Remarks (Bill Chiles, President and CEO) • Financial highlights (Jonathan Baliff, SVP and CFO) • Operational highlights (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 comments
Chief Executive comments Bill Chiles, President and CEO
Slide 5: Operational safety review
Operational safety review Air Accident Rate* per 100,000 Flight Hours (Fiscal Year) 1.17 0.78 0.78 0.00 0.53 0.00 0.00 1.00 2.00 2011 YTD FY11 Total Reportable Injury Rate per 200,000 manhours (cumulative) 0.32 0.16 0.52 0.40 0.32 0.39 0.33 0.34 0.34 0.00 0.50 1.00 A M J J A S O N D J F M FY11 Lost
Slide 6: 3Q FY2011 highlights
3Q FY2011 highlights • YTD Earnings per share of $2.77 • 19.4% increase from 9 months ended 3QFY10 • YTD Operating income of $139.9M • 1.3% increase from 9 months ended 3QFY10 • YTD EBITDA of $200M • Relatively flat from 9 months ended 3QFY10 • Improving margins for most of our business units with s
Slide 7: Current market environment
Current market environment • Oil price strength continues for multiple reasons • Overall international Exploration & Production (E&P) capital expenditure and operating expenditure growth • Recovered in calendar 2010, modest in 2011, and expanding in 2012 • Balanced across non-U.S. geographies althou
Slide 8: Operational performance highlights
Operational performance highlights • Europe Revenue is higher year over year due to better contracting with better operational margins due to efficiency gains and higher equity earnings • West Africa Revenue down, but margins are intact through lower costs even though the lost contract is not fully
Slide 9: Consolidated Fleet Changes as of December 31, 2010
Consolidated Fleet Changes as of December 31, 2010 (1) Includes aircraft sales, net lease returns/commencements and operated returns Q1 FY2011 Q2 FY2011 Q3 FY2011 Total Fleet Count Beginning Period Delivered Agusta AW 139 Sikorsky S-92 Added Removed (1) (7) (6) (4) (17) Total
Slide 10: Financial highlights
Financial highlights Jonathan Baliff, SVP and CFO
Slide 11: Earnings per share summary 3Q FY10 to 3Q FY11 bridge
Financial highlights – Earnings per share summary 3Q FY10 to 3Q FY11 bridge 9 months Q3 FY10 to 9 months Q3 FY11 bridge $0.74 $1.00 $1.21 $1.13 $1.13 $0.74 $2.32 $2.63 $2.82 $2.77 $2.77 $2.32 $0.26 $0.46 $0.25 $0.08 Q3FY2010 Operations Taxes Corporate and Other FX Changes Q3FY2011 $0.31 $0.68 $0.49
Slide 12: EBITDA summary 3Q FY10 to 3Q FY11 bridge
Financial highlights – EBITDA summary 3Q FY10 to 3Q FY11 bridge 9 months Q3 FY10 to 9 months Q3 FY11 bridge $64.4 $69.6 $65.6 $65.6 $64.4 $220.7 $204.6 $200.0 $200.0 $200.2 $12.4 $7.2 $4.0 Q3FY2010 Operations Corporate and Other FX Changes Q3FY2011 $20.5 $16.1 $4.6 9 Mos FY2010 Operations Corporate
Slide 13: Historical cash flow from operations less capex
Historical cash flow from operations less all capex Historical cash flow from operations less capex ($ millions) ($101) ($122) ($61) ($43) ($51) $9 ($45) ($24) ($4) $9 ($13) Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 • Historically, Bristow has employed cash flow fr
Slide 14: New $375 million secured bank credit facility
Our new $375 million secured bank credit facility aligns well with our financial strategy • $175 million 5-year revolver and $200 million 5-year term loan with a $100 million accordion feature • Term loan proceeds and revolver borrowings were used to repay $230 million 6 1/8% senior notes due 2013 o
Slide 15: Prudent balance sheet management
$1.5 billion Equity Prudent balance sheet management Total capitalization $2.2 billion (December 31, 2010) • Cash on hand at December 31, 2010: $100.9 million • YTD FY11 EBITDAR of $204.4 million • Undrawn borrowing capacity ($132 million revolving credit facility) • Total liquidity : $232.9 million
Slide 16: Other financial information and guidance revisions
Other financial information and guidance revisions • Capital allocation framework • Prudent balance sheet management is a core principle • Total liquidity maintained at $200-$250 million • Best risk/return opportunities attract Bristow capital • Balance shareholder return between capital appreciatio
Slide 17: Operational highlights
Operational highlights Bill Chiles, President and CEO
Slide 18: Quarterly changes
Quarterly changes Quarter on quarter changes: • 3% increase in the operating income in Europe is due to higher equity earnings from our military training unconsolidated affiliate, price escalations and renegotiated rates. We added three new clients since the prior year quarter • 4% decrease in the o
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Slide 20: Target Zero
TARGET, ZERO Sa
Slide 21: Slide 21
Slide 22: Other International (OIBU)
Other International (OIBU) Consolidated in OIBU Unconsolidated Affiliate • OIBU represented 13% of total revenue and 19% of operating income for Q3FY11 • Operating margin was 27.7% vs. 15.5% for the prior year quarter • Revenue increased to $41.9 from $33.3M • Operating income to $11.6M from $5.2M •
Slide 23: North America (NABU)
North America (NABU) • Represented 15% of total revenue and 3% of operating income in Q3 FY11 • Operating margin of 4.2% for Q3 FY11 up from 3.3% for the prior year quarter • Revenue of $45.6M flat from $45.7M • Operating income of $1.9M vs. $1.5M • Gulf of Mexico • Continues to be in a state of flu
Slide 24: Summary
Summary Open for Q and A Bristow continues to deliver on our FY2011 promises with third quarter earnings performance improving both year over year and sequentially. Our medium to long term outlook remains strong given better market dynamics
Slide 25: Target Zero Bristow
TARGET, 4 Bristow
Slide 26: Organizational Chart - as of December 31, 2010
Organizational Chart - as of December 31, 2010 Bristow NABU 15 %* AUSBU 13 % EBU 39 % WASBU 17 % OIBU 14 % BRS Academy 2 % U . S . GoM – / Trinidad – / Alaska – / Mexico – / Brazil – / Lider - HC - UK – / Netherlands – / Norway – / FBH - Nigeria – / Australia – / Other – / Russia – / Egypt – – / – I
Slide 27: Aircraft Fleet – Medium and Large
Aircraft Fleet – Medium and Large As of December 31, 2010 Next Generation Aircraft Mature Aircraft Models Medium capacity 12-16 passengers Large capacity 18-25 passengers Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Medium Helicopters AW139 Twin Turbine - Bell 212 Twin Turbine - Bell
Slide 28: Aircraft Fleet – Small, Training and Fixed Wing
Aircraft Fleet – Small, Training and Fixed As of December 31, 2010 (continued) Next Generation Aircraft Mature Aircraft Models Small capacity 4-7 passengers Training capacity 2-6 passengers Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Small Helicopters Bell 206B Turbine - Bell 206 L-3
Slide 29: EBITDA and EBITDAR Reconciliations
EBITDA and EBITDAR Reconciliations 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD FY10 YTD FY11 ($ in millions) Income from continuing operations $8.8 $27.9 $42.5 $40.3 $49.6 Income tax expense 3.8 13.3 19.1 17.5 18.5 Interest expense 18.5 18.4 15.8 14.9 16.8 Depreciation and amortizatio
Slide 30: Return on capital employed reconciliation
BMor06__20-hn-06__20S0p06__H1-Dse-6 __31Mard7_——_Numeretor: Total asses 3 tier 3 12Re S 1491S 1578 3 1568 EBITDA 1635 () Assets iscantirued operations (74) (84) B20) 26.2)—_Mrrty terest 12 (can (223) (08) TB) (84) TH () Pagros paymerts fr seat nd oher (35) (685) (BAA (1458) (1878) () Curentibies (i6
Slide 31: Fiscal Year 2008
Fiscal Year 2008 SHMarO8_ _ 30n-08__3E-Sep-08__34-Dec-08 __SfeMar09 Numerator: Total assets $ 19774 $ 235 $ 23065 $§ 23989 $ 2365 EBITDA 767 ().Cesh (20.1) (6214) (90.1) (964.7) (01.2) () Progress paymerts fr ina andoher (18292288) (2062) (3220) —80.1) () Curent iabilties (185.0) (1629) (1808) (184.
Slide 32: Fiscal Year 2011
Fiscal Year 2014 3HMart0__3Jun-f0__30-Sopt0__34-Doc-10__ 31-Mar-41 Numerator: Total assets S 24046 § 25K7 § 28069 $ 26387 EBITDA 2887 (Gash a (39) (085) (1009) (4 Pragess payments fo ira and other (1528 (1812) (1886) (1284) (4 Curent bites (1661) (16.1) (1686) (1686) (1) Shontem deferedtiax 102 101
Slide 33: Leverage Reconciliation
Leverage Reconciliation Annualized 363.4 $ Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) As of December 31, 2010 725.5 $ 1,476.1 $ 2,201.6 $ 33.0% Adjust for: Unfunded Pension Liability 112.2 112.2 NPV of GE and Norsk Lease Obligations 42.6 42.6 Adjusted 880.3 $ (d) 1,476.1 $ 2,
Slide 34: Contact Us
Contact Us Bristow Group Inc. (NYSE: BRS) 2000 West Sam Houston Parkway South Suite 1700, Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com/investorrelations