Bristow Group, Inc. · NYSE:VTOL
Bristow — Era Group — Q3 2014 Earnings Presentation
30 slides from Bristow's earnings presentation, Nov 5, 2014
Slide 1: Q3 2014 Earnings Presentation
Q3 2014 Earnings Presentation 0November 5, 2014 Exhibit 99.2
Slide 2: Q3 2014 Earnings Call Agenda
I. Introduction Ben Slusarchuk, VP Finance II. Operational Highlights Chris Bradshaw, Acting CEO and CFO III. Financial Review Chris Bradshaw, Acting CEO and CFO IV. Questions & Answers Q3 2014 Earnings Call Agenda 1
Slide 3: Forward-looking statements
2 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 4: EBITDA and Adjusted EBITDA definitions
3 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 5: Operational Highlights
LPro* GROUP INC. Operational Highlights
Slide 6: Q3 2014 Highlights
10% 5 Q3 2014 Highlights Revenue ($000s) Adjusted EBITDA (excl. gains) ($000s) Flight Hours 12% 5% Unchanged • Record revenue of $90.5mm • Record Adjusted EBITDA excluding gains ̶ Special items included charges related to the accelerated recognition of compensation for our former CEO • Net income of
Slide 7: Oil & Gas – Gulf of Mexico
6 Oil & Gas – Gulf of Mexico Revenue ($000s) Flight Hours 4% 6%31% 2% • Record revenue of $52.9mm • The year-over-year comparison benefitted from our EC225s operating for a full quarter compared to partial quarter in prior year and increased charter activity at higher rates for medium helicopters •
Slide 8: Oil & Gas – Alaska
7 Oil & Gas – Alaska Revenue ($000s) Flight Hours 16% 43% 14% 67% • Decline in revenue over the prior year quarter due to a smaller fleet and lower utilization • Sequential quarter decline primarily due to lower utilization of medium helicopters $14,003 $7,984 $9,305 $7,984 – $5,000 $10,000 $15,000
Slide 9: Oil & Gas – International
$1,248 $1,514 $173 $1,514 – $1,000 $2,000 Q3 2013 Q3 2014 Q2 2014 Q3 2014 8 Oil & Gas – International Revenue ($000s) • Increase in revenue over the prior year quarter primarily due to higher rates • Sequential quarter increase due to the start of a short-term contract ̶ This contract concluded subs
Slide 10: Dry Leasing
9 Dry Leasing Revenue ($000s) 19% 8% • Increased revenues due to increased cash collections from Aeroleo ̶ Aeroleo cash collections increased $3.1mm over prior year quarter and $2.3mm over Q2 2014 ̶ Partially offset by leases which ended subsequent to prior year quarter • In addition to Aeroleo, we
Slide 11: Search and Rescue
10 Search and Rescue Revenue ($000s) Flight Hours 23% 11% 17% 35% • Increase in revenues over the prior year quarter due to higher subscription rates related to a third AW139 SAR helicopter placed into service • Sequential quarter increase primarily due to charter flights with non-subscription custo
Slide 12: Air Medical
11 • Decline in revenues primarily due to contract which ended on June 30, 2014 • Currently operate three contracts with a mix of helicopters owned by Era, leased-in by Era or owned by the hospitals ̶ New England ̶ Maine ̶ North Carolina Air Medical Revenue ($000s) Flight Hours 1% 13% 22% 18% $3,288
Slide 13: Flightseeing
12 • Decline in revenues over the prior year quarter due to reduced activity primarily driven by adverse weather conditions • Sequential quarter increase driven by normal seasonality • Seasonal business which operate AS350s out of bases in Juneau and Denali, Alaska from mid- May to mid-September dur
Slide 14: FBO
13 • Strong operating revenues this quarter primarily due to increased fuel sales • Era operates a fixed based operation (“FBO”) at Ted Stevens Anchorage International Airport that sells fuel on an ad-hoc basis and leases hangar and office space FBO 33% 25% Revenue ($000s) $2,671 $3,562 $2,858 $3,56
Slide 15: Helicopter Order and Options Book
14 C u r r e n t O r d e r B o o k O p t i o n s Delivery Class Type Number Remaining Amount Firm Cancellable 2014 Heavy AW189 3 $33.2 – 2015 Heavy AW189 2 $13.2 $15.5 2015 Heavy S92 1 $17.2 – 2016 Heavy AW189 3 – $47.4 2016 Heavy S92 2 $51.3 – 2017 Heavy AW189 2 – $32.2 2017 Heavy S92 1 $26.4 – TBD
Slide 16: Brazil Update – An Inflection Point
2011 2012 2013 2014 2015 Model Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun AW139 AW139 AW139 AW139 AW139 AW139 AW139 AW139 AW139 AW139 AW139 EC225 EC225
Slide 17: Houma Base Expansion
16 Houma Base Expansion Base Plan Construction Progress • Houma, LA base expansion project progressing ̶ When completed, it will be the premier helicopter operating facility in the Gulf Coast area • Expected total cost of $22mm ̶ $11mm incurred to date ̶ Customers funding portion of capital cost
Slide 18: Financial Review
17 Financial Review
Slide 19: Period Over Period Comparison
18 Period Over Period Comparison Three Months Ended September 30, 2014 2013 $ Change % Variance ($000s) Operating revenues 90,510$ 80,997$ 9,513$ 12% Operating expenses 54,282 51,338 2,944 (6%) G&A expenses 12,941 9,683 3,258 (34%) Depreciation 11,746 11,340 406 (4%) Gains on asset dispositions 42 2
Slide 20: Sequential Quarter Comparison
19 Sequential Quarter Comparison Three Months Ended 30‐Sep 30‐Jun $ Change % Variance ($000s) Operating revenues 90,510$ 86,580$ 3,930$ 5% Operating expenses 54,282 54,679 (397) 1% G&A expenses 12,941 10,065 2,876 (29%) Depreciation 11,746 11,425 321 (3%) Gains on asset dispositions 42 3,139 (3,097)
Slide 21: Healthy Leverage Metrics and Ample Liquidity
20 Leverage Metrics Total Liquidity (US$mm)(a) Healthy Leverage Metrics and Ample Liquidity to Pursue Opportunities Note: As reported GAAP basis (a) At period end $149 $164 $176 $136 $244 $244 $244 $25 $28 $32 $31 $25 $15 $40 $174 $193 $209 $167 $270 $259 $285 – $50 $100 $150 $200 $250 $300 Mar-13 J
Slide 22: Appendix
Lr GROUP INC. Appendix
Slide 23: Fleet Overview
22 Owned Joint Ventured Leased-In Managed Total Average Age(a) Heavy: EC225 9 – – – 9 4 Total Heavy 9 – – – 9 Medium: AW139 38 1 – – 39 5 B212 9 – – – 9 36 B412 6 – – – 6 33 S76 A/A++ 2 – – – 2 24 S76 C+/C++ 5 – – 1 6 8 Total Medium 60 1 – 1 62 Light – twin engine: A109 7 – – 2 9 8 BK-117 – – 2 1 3
Slide 24: Capitalization and Financial Policy
23 • 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 • Existing capital commitments can be funded via combination of cash-on-
Slide 25: NAV per Share Calculation
24 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 26: Operating Revenues by Line of Service
25 (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-Sep-14 30-Jun-14 31-Mar-14 31-Dec-13 30-Sep-13 Oil and gas:(a) U.S. Gulf of Mexico $52,870 $51,715 $49,141 $4
Slide 27: Flight Hours by Line of Service
26 Note: Does not include hours flown by helicopters in our dry-leasing line of service (a) Primarily oil and gas services, but also includes revenues from activities such as firefighting and utility support Flight Hours by Line of Service Three Months Ended 30-Sep-14 30-Jun-14 31-Mar-14 31-Dec-13 3
Slide 28: Financial Highlights
27 (a) See next page for Adjusted EBITDA reconciliation to Net Income (Loss) Financial Highlights Fiscal Year 9 Mos. Ended Sept. 30, ($ millions) 2009 2010 2011 2012 2013 2014 2013 Revenue 235.7$ 235.4$ 258.1$ 272.9$ 299.0$ 256.5$ 223.0$ Operating Expenses 148.0 147.2 162.7 167.2 186.6 158.6 141.4 G
Slide 29: 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
Slide 30: Quarterly Reconciliation of Non-GAAP Financial Measures
29 Quarterly Reconciliation of Non-GAAP Financial Measures Quarterly Historical EBITDA and Adjusted EBITDA Three Months Ended (USD$ in thousands) 31-Mar-13 30-Jun-13 30-Sep-13 31-Dec-13 31-Mar-14 30-Jun-14 30-Sep-14 Net Income (Loss) 6,589 4,950 5,088 1,677 4,374 5,196 4,311 Depreciation 11,661 11,4