Bristow Group, Inc. · NYSE:VTOL
Bristow — Era Group — Q3 2015 Earnings Presentation
27 slides from Bristow's earnings presentation, Nov 5, 2015
Slide 1: Q3 2015 Earnings Presentation
Q3 2015 Earnings Presentation 0November 5, 2015
Slide 2: Q3 2015 Earnings Call Agenda
I. Introduction Shefali Shah, SVP and General Counsel II. Operational Highlights Chris Bradshaw, President and CEO III. Financial Review Andy Puhala, SVP and CFO IV. Questions & Answers Q3 2015 Earnings Call Agenda 1
Slide 3: Cautionary Statement Regarding Forward Looking Statements
2 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
Slide 4: EBITDA and Adjusted EBITDA supplemental measures
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
Lora Operational Highlights
Slide 6: Q3 2015 Highlights
14,625 12,970 11,667 12,970 0 5,000 10,000 15,000 20,000 Q3 2014 Q3 2015 Q2 2015 Q3 2015 $90,510 $69,741 $70,738 $69,741 – $25,000 $50,000 $75,000 $100,000 $125,000 Q3 2014 Q3 2015 Q2 2015 Q3 2015 $24,886 $17,087 $20,259 $17,087 – $10,000 $20,000 $30,000 $40,000 Q3 2014 Q3 2015 Q2 2015 Q3 2015 • Rev
Slide 7: Oil & Gas – Gulf of Mexico
$52,870 $42,132 $41,821 $42,132 – $25,000 $50,000 $75,000 Q3 2014 Q3 2015 Q2 2015 Q3 2015 10,594 9,435 8,717 9,435 0 5,000 10,000 15,000 Q3 2014 Q3 2015 Q2 2015 Q3 2015 6 Oil & Gas – Gulf of Mexico Revenues ($000s) Flight Hours • Year-over-year revenues and flight hours down primarily due to lower u
Slide 8: Oil & Gas – Alaska
939 797 732 797 0 500 1,000 1,500 Q3 2014 Q3 2015 Q2 2015 Q3 2015 $7,984 $5,429 $6,009 $5,429 – $2,000 $4,000 $6,000 $8,000 $10,000 Q3 2014 Q3 2015 Q2 2015 Q3 2015 7 Oil & Gas – Alaska Revenues ($000s) Flight Hours 15% 9% 32% • Year-over-year revenues and flight hours down primarily due to lower uti
Slide 9: Oil & Gas – International
8 Oil & Gas – International • Year-over-year revenues decreased due to conclusion of a contract • The integration of Sicher Helicopters, our consolidated Colombian joint venture, continues, and we are preparing for the launch of offshore operations in 2016
Slide 10: Dry-Leasing
$12,392 $11,925 $12,233 $11,925 – $5,000 $10,000 $15,000 $20,000 $25,000 Q3 2014 Q3 2015 Q2 2015 Q3 2015 9 Dry-Leasing Revenues ($000s) • Revenues decreased year-over-year due to contracts that ended subsequent to the prior year quarter, partially offset by increased cash collections from Aeróleo ̶
Slide 11: Search and Rescue
$5,666 $4,418 $4,989 $4,418 – $2,500 $5,000 $7,500 $10,000 Q3 2014 Q3 2015 Q2 2015 Q3 2015 348 265 260 265 0 250 500 750 1,000 Q3 2014 Q3 2015 Q2 2015 Q3 2015 10 Search and Rescue Revenues ($000s) Flight Hours • Decrease in revenues over the prior year quarter and sequential quarter primarily due to
Slide 12: Air Medical
$2,569 $1,854 $1,914 $1,854 – $1,000 $2,000 $3,000 $4,000 $5,000 Q3 2014 Q3 2015 Q2 2015 Q3 2015 1,239 949 826 949 0 500 1,000 1,500 Q3 2014 Q3 2015 Q2 2015 Q3 2015 11 • Year-over-year decline in revenues and flight hours primarily due to the conclusion of a contract subsequent to the prior year qua
Slide 13: Flightseeing
$4,043 $3,923 $3,118 $3,923 – $2,500 $5,000 $7,500 $10,000 Q3 2014 Q3 2015 Q2 2015 Q3 2015 1,505 1,502 1,118 1,502 0 500 1,000 1,500 2,000 2,500 Q3 2014 Q3 2015 Q2 2015 Q3 2015 12 • Decrease in revenues over the prior year quarter due to reduced customer bookings • Increase in revenue and flight hou
Slide 14: Financial Review
13 Financial Review
Slide 15: Quarter Period Over Period Comparison
14 Quarter Period Over Period Comparison Three Months Ended September 30, 2015 2014 $ Change % Variance ($000s) Operating revenues 69,741$ 90,510$ (20,769)$ (23%) Operating expenses 43,007 54,282 (11,275) 21% G&A expenses 11,238 12,941 (1,703) 13% Depreciation 12,186 11,746 440 (4%) Gains on asset d
Slide 16: Sequential Quarter Comparison
15 Sequential Quarter Comparison Three Months Ended 30-Sep 30-Jun $ Change % Variance ($000s) Operating revenues 69,741$ 70,738$ (997)$ (1%) Operating expenses 43,007 39,784 3,223 (8%) G&A expenses 11,238 10,779 459 (4%) Depreciation 12,186 11,398 788 (7%) Gains (losses) on asset dispositions, net 1
Slide 17: Year-to-date Comparison
16 Year-to-date Comparison Nine Months Ended September 30, 2015 2014 $ Change % Variance ($000s) Operating revenues 207,894$ 256,533$ (48,639)$ (19%) Operating expenses 126,396 158,601 (32,205) 20% G&A expenses 31,760 34,340 (2,580) 8% Depreciation 35,186 34,458 728 (2%) Gains on asset dispositions,
Slide 18: Equity and Debt Repurchases
17 Equity and Debt Repurchases Equity Repurchases • During the quarter, we repurchased 131,984 shares of our common stock for $2.1mm ̶ Average price per share of $15.65 ̶ Repurchase of common stock was funded with existing cash balances, cash from operating activities and proceeds from asset disposi
Slide 19: Healthy Leverage Metrics and Ample Liquidity
18 Leverage Metrics Total Liquidity (US$mm)(a) Healthy Leverage Metrics and Ample Liquidity Note: As reported GAAP basis (a) At period end $149 $164 $176 $136 $244 $244 $244 $214 $209 $219 $227 $25 $28 $32 $31 $25 $15 $40 $41 $34 $17 $14 $174 $193 $209 $167 $270 $259 $285 $255 $243 $236 $241 – $50 $
Slide 20: Appendix
19 Appendix
Slide 21: Fleet Overview
20 Owned(a) Joint Ventured Leased-In Managed Total Average Age(b) Heavy: H225 9 – – – 9 5 Total Heavy 9 – – – 9 Medium: AW139 38 1 – – 39 6 B212 8 – – – 8 36 B412 2 – – – 2 34 S76 A/A++ 2 – – – 2 25 S76 C+/C++ 5 – – 1 6 9 Total Medium 55 1 – 1 57 Light – twin engine: A109 7 – – – 7 9 BK-117 – – 2 1
Slide 22: Capitalization and Debt as of September 30, 2015
September 30, 2015 ($000s) Cash and cash equivalents $13,808 Credit facility $70,000 Promissory notes 25,335 Total secured debt $95,335 7.750% Senior Notes $175,100 Other 119 Total debt $270,554 Net debt $256,746 Shareholders' Equity $473,724 Total capitalization $744,278 Total Debt / Adjusted EBITD
Slide 23: Historical Gains on Helicopter Sales
22 Historical Gains on Helicopter Sales (a) Indexed resale value of several helicopter types by vintage, inflation adjusted to 2011 dollars. Source: HeliValue$, Cowen and Co. (b) Index includes: Augusta Westland 109A Widebody (1988 model), Bell 212 (1979 model), Bell 412 (1984 model), Eurocopter BK
Slide 24: Operating Revenues and Flight Hours by Line of Service
23 Operating Revenues and Flight Hours by Line of Service Note: Flight hours do not include hours flown by helicopters in our dry-leasing line of service (a) Primarily oil and gas services, but also includes revenues and flight hours from activities such as firefighting and utility support Three Mon
Slide 25: Financial Highlights
24 (a) See next page for Adjusted EBITDA reconciliation to Net Income (Loss) Financial Highlights Fiscal Year 9 Mos. Ended Sept 30, ($ millions) 2010 2011 2012 2013 2014 2014 2015 Revenue 235.4$ 258.1$ 272.9$ 299.0$ 331.2$ 256.5$ 207.9$ Operating Expenses 147.2 162.7 167.2 186.6 204.4 158.6 126.4 G&
Slide 26: Adjusted EBITDA special items
• Adjusted EBITDA reflects special items: – Executive severance adjustments of $0.4 million, $4.2 million, and $0.7 million in FY 2010, 2011 and 2012, respectively, and $2.5 million in Q3 2014 – An adjustment for IPO related fees and expenses of $2.9 million in FY 2012 – Impairment of our investment
Slide 27: Quarterly Reconciliation of Non-GAAP Financial Measures
26 Quarterly Reconciliation of Non-GAAP Financial Measures Quarterly Historical EBITDA and Adjusted EBITDA Three Months Ended (USD$ in thousands) 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 30-Sep-15 Net Income (Loss) 4,311 3,140 (239) 11,105 653 Depreciation 11,746 11,854 11,602 11,398 12,186 Interest