Bristow Group, Inc. · NYSE:VTOL
Bristow — Era Group — Q2 2018 Earnings Presentation
19 slides from Bristow's earnings presentation, Aug 7, 2018
Slide 1: Q2 2018 Earnings Presentation
Exhibit 99.2 Q2 2018 Earnings Presentation August 8, 2018
Slide 2: Q2 2018 Earnings Call Agenda
Q2 2018 Earnings Call Agenda I. Introduction Tomas Johnston, Acting General Counsel II. Operational Highlights Chris Bradshaw, President and CEO III. Financial Review Jennifer Whalen, SVP and CFO IV. Market Commentary 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 has achieved its dual goals of ZERO air accidents and ZERO recordable workplace injuries YTD 2018 • Total available liquidity as of August 3, 2018 was approximately $173 million – $49 million in cash balances – $124 million of remaining availability unde
Slide 6: Primed for Free Cash Flow Generation
Primed for Free Cash Flow Generation Strong Balance Sheet Limited Debt Maturities prior to 2021 Efficient Cost Structure Free Cash Flow Generation Manageable Fixed Charge Obligations • Illustrative LTM Recurring Adjusted Free Cash Flow was +$22 million(1) No Significant Firm Capital Commitments (1)
Slide 7: Illustrative LTM Recurring Adjusted Free Cash Flow
Illustrative LTM Recurring Adjusted Free Cash Flow (1) Three Months Ended ($000s) 9/30/2017 12/31/2017 3/31/2018 6/30/2018 LTM Net cash provided by operating activities $ 4,554 $ 2,168 $ (1,030) $ 6,168 $ 11,860 Less: Changes in operating assets and liabilities (2) (758) 97 6,273 (5,950) (338) Plus:
Slide 8: Impact of Non-routine Fees and Foreign Currency Movements
Impact of Non-routine Fees and Foreign Currency Movements • Two items have made the comparison of recent quarterly results less straightforward – Non-routine professional services fees related to litigation that has now been settled – Foreign currency gains (losses), which are primarily non-cash and
Slide 9: Q2 2018 Highlights – Sequential Quarter Comparison
Q2 2018 Highlights – Sequential Quarter Comparison • Revenues were $0.4 million higher in Q2 2018 Revenues ($000s) – Higher utilization of heavy helicopters in U.S. oil and gas operations and higher dry-leasing revenues – Partially offset by lower revenues from international oil $75,000 and gas oper
Slide 10: Q2 2018 Highlights – Calendar Quarter Comparison
Q2 2018 Highlights – Calendar Quarter Comparison • Revenues were $0.2 million lower than Q2 2017 Revenues ($000s) – Primarily due to the absence of flightseeing revenues following the sale of the Company's flightseeing assets in early 2018 and the recognition of lease return charges in Q2 2017 $75,0
Slide 11: Market Commentary
Market Commentary • The offshore oil & gas market recovery has begun – But it will not be linear • Globally, there is record new demand for floating offshore drilling rigs – Currently 55 outstanding tenders for floating rigs Floater Tenders by Type Source: IHS Petrodata, Evercore ISI Research 11
Slide 12: Regional Market Commentary
Regional Market Commentary • The pace and slope of the offshore oil & gas market recovery will vary by geographic region – Over the last 12 months, we have seen a significant increase in customer activity in the U.S. Gulf of Mexico – In contrast, customer activity in our Latin American operations ha
Slide 13: Appendix
Appendix
Slide 14: Fleet Overview
Fleet Overview Average Owned Leased-In(a) Total Age(b) Heavy: S92 4 — 4 2 H225 2 — 2 9 AW189 4 — 4 2 Total Heavy 10 — 10 Medium: AW139 36 — 36 8 S76 C+/C++ 5 — 5 12 B212 5 — 5 39 Total Medium 46 — 46 Light – twin engine: A109 7 — 7 12 EC135 13 2 15 10 BK-117 — 2 2 N/A BO-105 3 — 3 29 Total Light – t
Slide 15: Healthy Leverage Metrics and Liquidity
Healthy Leverage Metrics and Liquidity June 30, 2018 ($000s) • As of August 3, 2018, Era had $49 million in cash Cash and cash equivalents $ 15,057 balances and $124 million of remaining availability under the Facility for total liquidity of Credit facility $ 12,000 approximately $173 million Promis
Slide 16: 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 31-Mar-18 31-Dec-17 30-Sep-17 30-Jun-17 (a) Oil and gas: U.S. $ 37,771 $ 36,536 $ 35,063 $ 36,566 $ 32,060 International 14,160 15,617 16,163 16,764 14,284 Total oil and gas $ 51,931 $ 52,153 $ 51,226
Slide 17: Quarterly Reconciliation of Non-GAAP Financial Measures
Quarterly Reconciliation of Non-GAAP Financial Measures Quarterly Historical EBITDA and Adjusted EBITDA (US$ in thousands) 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 30-Jun-18 Net Income (Loss) $ (3,072) $ (81,215) $ 61,459 $ (1,357) $ (10,516) Depreciation 11,978 12,103 10,101 10,354 10,116 Interest I
Slide 18: Financial Highlights
Financial Highlights Six Months Ended Fiscal Year June 30, ($ millions) 2013 2014 2015 2016 2017 2017 2018 Revenue $ 299.0 $ 331.2 $ 281.8 $ 247.2 $ 231.3 $ 112.4 $ 115.1 Operating Expenses 186.6 204.4 171.5 169.9 167.4 79.1 78.0 G&A 38.9 44.0 42.8 36.2 42.1 20.3 26.9 Depreciation 45.6 46.3 47.3 49.
Slide 19: 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 Q2 2017, respectively – A one-time charge of $2.0 million related to operating leases on certain air medical helicopters in 2013 – A