Bristow Group, Inc. · NYSE:VTOL
Bristow — Q4 FY2018 Earnings Presentation
37 slides from Bristow's earnings presentation, May 24, 2018
Slide 1: Fourth quarter FY18 earnings presentation
Fourth quarter FY18 earnings presentation Bristow Group Inc. May 24, 2018 Exhibit 99.1
Slide 2: Forward-looking statements
Forward-looking statements Statements contained in this presentation regarding the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. These forward-looking statements include statements regarding earnings and liquidity guid
Slide 3: Executive summary and safety review
Executive summary and safety review
Slide 4: Q4 FY18 operational safety review
Q4 FY18 operational safety review AAR prior to FY16 includes commercial helicopter operations for Bristow Group and consolidated affiliates. AAR beginning in FY16 includes all Category A and B accidents for consolidated Bristow operations, including Airnorth, Bristow Academy and Eastern Airways. AAR
Slide 5: FY18 STRIVE achievements provide a strong foundation for continued success in FY19
FY18 STRIVE achievements provide a strong foundation for continued success in FY19 Lease cost savings from the return of eight aircraft in FY18 with the ability to return 21 during FY19 Over ~$190 million of capex deferrals out of FY18 – FY20 into FY20 and beyond and fleet rationalization with the F
Slide 6: FY19 begins with liquidity of $380 million due to successful financings in FY18
FY19 begins with liquidity of $380 million due to successful financings in FY18 Total liquidity1 $ in millions At period end 370 360 357 Funded over ~$700M in new capital in FY18; repaid and terminated 2019 bank maturities First senior note debt maturity is not until FY23 Limited debt amortization o
Slide 7: Initiating FY19 guidance as of March 31, 2018
Initiating FY19 guidance as of March 31, 2018 FY19 guidance assumes FX rates as of March 31, 2018 Operating revenue, adjusted EBITDA and rent for oil and gas includes corporate and other revenue and the impact of corporate overhead expenses Adjusted EBITDA for U.K. SAR and fixed wing (Eastern/Airnor
Slide 8: Our FY19 STRIVE priorities are focused on creating a sustainable and profitable Bristow
Our FY19 STRIVE priorities are focused on creating a sustainable and profitable Bristow Macro and political trends are pushing oil prices higher with the benefits largely accruing to onshore operators. Offshore continues to show signs of stability (at low levels) with projected FID increases and mor
Slide 9: Operational highlights
Operational highlights
Slide 10: Q4 FY18 results
Q4 FY18 results Adjusted EBITDA1 $ in millions Operating revenue $ in millions Net loss Adjusted net loss 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items $ in millions $ in millions
Slide 11: Europe Caspian
Europe Caspian United Kingdom Norway Turkmenistan $ in millions $ in millions 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items Operating revenue Adjusted EBITDA1
Slide 12: Africa
Africa Nigeria Egypt $ in millions $ in millions 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items Operating revenue Adjusted EBITDA1
Slide 13: Americas
Americas United States Canada Brazil Trinidad $ in millions Guyana $ in millions 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items Operating revenue Adjusted EBITDA1
Slide 14: Líder
Líder Líder adjusted EBITDA1 1) Reconciliation of adjusted EBITDA and leverage provided in the appendix
Slide 15: Asia Pacific
Asia Pacific Russia Australia Malaysia $ in millions $ in millions 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items Operating revenue Adjusted EBITDA1
Slide 16: Appendix
Appendix
Slide 17: Organizational Chart and Fleet as of March 31, 2018
Next generation aircraft Mature aircraft Organizational Chart and Fleet as of March 31, 2018 Bristow Europe Caspian 55% Africa 14% Americas 17% Asia Pacific 14% U.K. – 66 / 34 Norway – 31 / 0 Nigeria – 41 / 4 U.S. GoM – 54 / 0 Canada – 8 / 0 Australia – 24 / 14 Brazil – 0 / 0 Egypt – 0 / 0 Russia –
Slide 18: Leased aircraft detail as of March 31, 2018
1) The percentage of LACE leased is calculated by taking the total LACE for leased aircraft divided by the total LACE for all aircraft we operate, including both owned and leased aircraft. See 10-K Note 7 “Commitments and Contingencies” for more information provided on operating leases 1 Leased airc
Slide 19: Focused on improving EBITDA through lease cost reductions with aircraft returns to lessors
Focused on improving EBITDA through lease costs reductions with aircraft returns to lessors Of our original 11 leased H225s, four have been returned to lessors through May 2018 with another three expected to be returning during the remainder of FY19 and four in FY21 Rent expense was reduced by OEM c
Slide 20: Consolidated fleet changes and aircraft sales
See 10-K Note 7 “Commitments and Contingencies” for more information provided on operating leases Consolidated fleet changes and aircraft sales *Includes write offs and lease returns and sale of Bristow Academy in November 2017
Slide 21: Operating revenue, LACE and LACE rate by region
Operating revenue, LACE and LACE rate by region 4 $ in millions LACE rate is annualized $ in millions per LACE Excludes assets held for sale, Airnorth and Eastern Airways
Slide 22: Historical LACE count by region
Historical LACE count by region
Slide 23: Historical LACE rate by region
Historical LACE rate by region $ in millions LACE rate calculated as YTD revenue annualized divided by period ending LACE count
Slide 24: Order and options book as of March 31, 2018
Order and options book as of March 31, 2018 Orders that can be cancelled prior to delivery date
Slide 25: Net asset fair market value
NOTE: The company derives market value from observable market data if available and may require utilization of estimates, applications of significant judgment and reliance upon valuation specialists’ and third party analysts’ reports. When using third party reports, the market value is as of the dat
Slide 26: Net asset FMV reconciliation
Net asset FMV reconciliation The net asset FMV disclosed herein includes the Company’s current NBV of 16 owned H225s totaling ~$207 million. Excluding these aircraft, net asset FMV per share would decrease by $5.76 to $21.09. The pre-grounding value for the H225s totaled ~$340 million. NBV of PPE wi
Slide 27: Adjusted EBITDA margin trend by region
Adjusted EBITDA margin trend by region Adjusted EBITDA excludes special items and asset dispositions and margin is calculated by taking adjusted EBITDA divided by operating revenue
Slide 28: Historical U.K. SAR performance
Historical U.K. SAR performance GAP and U.K. SAR operating results are included within our Europe-Caspian region results. Adjusted EBITDA excludes corporate overhead allocations consistent with financial reporting. Adjusted EBITDA is a non-GAAP measure of which the most comparable GAAP measure is ne
Slide 29: Historical fixed wing performance
Historical fixed wing performance Fixed wing operating results are included within their respective regional results. Adjusted EBITDA excludes corporate overhead allocations consistent with financial reporting. Adjusted EBITDA is a non-GAAP measure of which the most comparable GAAP measure is net in
Slide 30: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Adjusted EBITDA excludes special items and asset dispositions
Slide 31: Adjusted EBITDA regional reconciliation
Adjusted EBITDA regional reconciliation Adjusted EBITDA excludes special items and asset dispositions
Slide 32: Rent by region
Rent by region Q3 Q4) FY15) $ in millions Qt Q2 Qt Q2 Europe Caspian $18.9 $20.9 $30.2 $33.3] $103.3) $347 $35.0 19 2.0 15 16 7.0 18 7 Americas 5.0 5.1 5.6 5.0 20.7 54 58 Asia Pacific 5.1 5.2 69 8.0 25.2 94 9.2 Ce te 23 24 19 8.6 27 26 ‘orporat : ; Consolidated $33.1 $35.4 $46.3 $49.9 $164.8) $53.9
Slide 33: GAAP reconciliation
GAAP reconciliation See information about special items in 10-K or earnings release for Q4 FY18 These amounts are presented after applying the appropriate tax effect to each item and dividing by the weighted average shares outstanding during the related period to calculate the earnings per share imp
Slide 34: Líder adjusted EBITDA and leverage
Líder adjusted EBITDA and leverage Adjusted EBITDA excludes special items and asset dispositions
Slide 35: Debt repayments and amortization as of March 31, 2018
Debt repayments and amortization as of March 31, 2018 ($ in millions) Balance 3/31/18 FY19 FY20 FY21 FY22 FY23 FY24+ 8.75% Secured Senior Notes 350.0 - - - - 350.0 - 4.5% Convertible Senior Notes 143.8 - - - - - 143.8 6.25% Senior Unsecured Notes 401.5 - - - - 401.5 - Macquarie Debt 185.0 14.0 14.0
Slide 36: Total leverage reconciliation
Adjusted EBITDA excludes gains and losses on dispositions of assets Debt does not include unamortized debt issuance cost Total leverage reconciliation
Slide 37: Bristow Group Inc. contact us
Bristow Group Inc. (NYSE: BRS) 2103 City West Blvd., 4th Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com Contact us