Bristow Group, Inc. · NYSE:VTOL
Bristow — Era Group — Q3 2019 Earnings Presentation
17 slides from Bristow's earnings presentation, Nov 5, 2019
Slide 1: Q3 2019 Earnings Presentation
Exhibit 99.2 Q3 2019 Earnings Presentation November 6, 2019
Slide 2: Q3 2019 Earnings Call Agenda
Q3 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
Safety Update • Safety is Era's most important core value and highest operational priority • 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 770 consecutive days without a recordable workplac
Slide 6: Strong Balance Sheet and Financial Flexibility
Strong Balance Sheet and Financial Flexibility • Total available liquidity as of September 30, 2019 was approximately $232 million – $108 million in cash balances – $124 million of remaining availability under the Company’s credit facility • Net debt of $55 million as of September 30, 2019 • Continu
Slide 7: Free Cash Flow Profile
Free Cash Flow Profile • Era generated $26.5 million of free cash flow in the last twelve months ended September 30, 2019 – Continues track record of positive free cash flow since 2015 Free Cash Flow Yield(a) Adjusted Free Cash Flow Yield(a) % 39.3% % 25.2% 23.1% 23.1% 13.5% 12.9% 13.5% 12.9% 9.6% 5
Slide 8: Q3 2019 Highlights – Sequential Quarter Comparison
Q3 2019 Highlights – Sequential Quarter Comparison Revenues ($000s) • Revenues were $3.4 million higher than Q2 2019 – Primarily due to higher utilization in U.S. oil and gas +6% operations $75,000 58,909 • Operating expenses were $0.7 million higher primarily due 55,480 to increased personnel, insu
Slide 9: Q3 2019 Highlights – Calendar Quarter Comparison
Q3 2019 Highlights – Calendar Quarter Comparison • Revenues were $4.3 million higher than Q3 2018 Revenues ($000s) – Primarily due to higher utilization in oil and gas operations and the commencement of new dry-leasing $75,000 +8% and emergency response services contracts 58,909 54,610 • Operating e
Slide 10: Appendix
Appendix
Slide 11: Fleet Overview
Fleet Overview Average Helicopters Age Heavy: S92 4 3 H225 1 11 AW189 4 3 Total Heavy 9 Medium: AW139 36 10 S76 C+/C++ 5 13 B212 5 40 Total Medium 46 Light – twin engine: A109 7 13 EC135 10 10 BO-105 3 30 Total Light – twin engine 20 Light – single engine: A119 13 13 AS350 17 22 Total Light – single
Slide 12: Healthy Leverage Metrics and Liquidity
Healthy Leverage Metrics and Liquidity September 30, 2019 ($000s) Cash and cash equivalents $ 107,736 • As of September 30, 2019, Era had $108 million Credit facility $ — in cash balances and $124 million of remaining Promissory notes 18,732 availability under the credit facility for total liquidity
Slide 13: Operating Revenues and Flight Hours by Line of Service
Operating Revenues and Flight Hours by Line of Service Three Months Ended Revenue ($000s) 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19 (a) Oil and gas: U.S. $ 35,473 $ 33,876 $ 32,466 $ 33,270 $ 36,226 International 13,665 13,357 13,616 14,499 14,740 Total oil and gas $ 49,138 $ 47,233 $ 46,082
Slide 14: Quarterly Reconciliation of Non-GAAP Financial Measures
Quarterly Reconciliation of Non-GAAP Financial Measures Quarterly Historical EBITDA and Adjusted EBITDA ($ thousands) 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19 30-Sep-19 Net income (loss) $ 31,279 $ (5,948) $ (6,085) $ 4,874 $ (2,059) Depreciation 9,541 9,530 9,450 9,520 9,312 Interest income (732) (8
Slide 15: Historical Financial Highlights
Historical Financial Highlights Nine Months Ended Fiscal Year September 30th ($ millions) 2014 2015 2016 2017 2018 2018 2019 Revenue $ 331.2 $ 281.8 $ 247.2 $ 231.3 $ 221.7 $ 169.7 $ 165.7 Operating expenses 204.4 171.5 169.9 167.4 151.5 114.5 115.0 G&A 44.0 42.8 36.2 42.1 45.1 35.7 26.9 Depreciatio
Slide 16: 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 $2.5 million in 2014 representing a reserve against a note receivable – A pre-tax
Slide 17: Reconciliation of Free Cash Flow and Free Cash Flow Yields
Reconciliation of Free Cash Flow and Free Cash Flow Yields ($ thousands) 2015 2016 2017 2018 LTM Net cash provided by operating activities $ 44,456 $ 58,504 $ 20,096 $ 54,354 $ 23,847 Plus: Proceeds from disposition of property and equipment 25,328 28,609 9,392 29,590 9,322 Less: Purchases of proper