Bristow Group, Inc. · NYSE:VTOL
Bristow — Q1 2024 Earnings Presentation
43 slides from Bristow's earnings presentation, May 8, 2024
Slide 1: Q1 2024 Investor Presentation
Q1 2024 Investor Presentation May 8, 2024
Slide 2: Agenda
Global Offshore Helicopter 1 Q1 2024 Financial Results 5 Fleet Overview 2 Company Overview 6 2024-2026 Financial Guidance Agenda Offshore Energy 3 Services Trends 7 Investment Highlights 4 Government Services Overview 8 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 represent Bristow Group Inc.’s (the “Company’s”) current expectations or forecasts of future events. Forward-looking statements generally can be identified by
Slide 4: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation In addition to financial results calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation includes certain non-GAAP measures including EBITDA, Adjusted EBITDA, Net Debt, Free Cash Flow and Adjusted Free Cash Fl
Slide 5: Q1 2024 Results – Sequential Quarter Comparison
Q1 2024 Results – Sequential Quarter Comparison Operating revenues were $0.2 million lower than the Preceding Quarter(1) Operating Revenues primarily due to lower seasonal activity in fixed wing services, partially offset by higher revenues in offshore energy services (“OES”) and government services
Slide 6: Company Overview
Overview > c o Q = fe) O
Slide 7: Safety Note
SafetyNote Safety Note Safety is Bristow’s #1 Robust safety core value and management system highest operational (SMS) priority Bristow’s fleet is With third-party Bristow is a founding member of HeliOffshore, an industry configured with accreditation resulting association focused on safety, now wit
Slide 8: Leading Global Provider of Innovative and Sustainable Vertical Flight Solutions
Leading Global Provider of Innovative and Sustainable Vertical Flight Solutions Presence on Global Employees 6 Continents Publicly Traded on 3,280 Total Customers in NYSE (VTOL) 825 Pilots 18 Countries 843 Mechanics Aircraft Fleet(1) — 80% Owned Operating Revenues by Region(2) Operating Revenues by
Slide 9: Global Leader in Vertical Flight Solutions
Global Leader Presence on Vertical Flight Solutions 6 CONTINENTS Aircraft Types Customers in Netherlands • Rotary Wing 3 Aircraft 18 COUNTRIES • Fixed Wing Norway • Unmanned Aerial 11 AOCs United Canada Kingdom 28 Aircraft Systems (UAS) (“Air Operator Certificates”) 6 Aircraft 39 Aircraft United Ire
Slide 10: ~$4.2 Billion Contractual Backlog
Contractual Backlog ~$4.2 BILLION Total Backlog by End Market Expected Backlog By Year Fixed Wing & Other $0.5bn $30mm 1% $0.6bn $0.5bn 23% Offshore $0.4bn Energy $0.3bn Services $4.2bn $1.9bn Government Services $1.0bn $3.2bn 76% (1) As of March 31, 2024 (2) Only includes Monthly Standing Charge (“
Slide 11: ~70% of OES Contracts Yet to Reset to Current Market
Significant Upside via Opportunity to Raise Rates as Legacy OES Contracts Expire ~70% of OES Contracts Yet to Reset to Current Market OES Contracts Contracts Reset Accelerating offshore energy upcycle, coupled with tight aircraft supply, continuing to drive rates higher • Assets retired or sold to o
Slide 12: Strong Balance Sheet and Liquidity Position
Strong Balance Sheet and Liquidity Position $140.6 million of unrestricted cash and total liquidity of As of March 31, 2024, the availability under the amended ABL facility was $222.5 million(1) $81.9 million(2) In April 2024, the Company funded approximately £26 million of Unfunded capital commitme
Slide 13: Offshore Energy Services Trends
Offshore Energy Services Trends
Slide 14: Multi-year Growth in Upstream Energy Spending
Multi-year Growth in Upstream Energy Spending Upstream Spending 1980 – 2025E ~35-year cycle Beginning of a new cycle… CONTRACTION PHASE: $700 ($bn) From 2014 to 2020 spending fell by 55% GROWTH PHASE: $600 The 2000s up until 2014 were without a doubt the 'golden years' of TRANSFORMATION/ $500 the of
Slide 15: Strong Growth in Offshore Spending
Offshore Project Final Investment Decision (“FIDs”) ($bn) ’23-’26: Strong Growth $492bn 160 in Offshore Offshore FIDs taken Spending 140 Offshore FIDs expected 120 100 Offshore project FIDs are 80 expected to be above 137 142 $100bn each year from '24- 128 60 '26, totaling nearly 106 99 113 ~$500bn
Slide 16: Positive Offshore Market Dynamics
Positive Offshore Market Dynamics Global Floating Rig Demand Expected to Grow 32% Between 2023 - 2028E Global Floater Demand by Work Type Global Floater Demand by Oil Price Sensitivity Rig years Rig years 180 180 154 156 160 160 150 140 140 140 32 30 127 126 33 119 118 7 120 120 107 110 38 7 Explora
Slide 17: Government Services Overview
Government Services Overview
Slide 18: Government Services
Government Awarded Every Major GOVSAR Contract Over The Past 24 Months Services Country/Client Aircraft Required Contract Start Duration The duration of these contracts generally lasts for ten or more UKSAR2G/ 12x Heavy 10 Years years, with additional one-to-three year extension options Q4 2024 MCA
Slide 19: Advancing Government SAR
Advancing Government SAR 2nd Generation UK SAR Contract (UKSAR2G) Irish Coast Guard Contract (IRCG) Significant Addition to Bristow’s An Effective Transition Plan Government Services Offering Investing capital to ensure a successful transition of operations to the new £1.6 billion UKSAR2G contract T
Slide 20: Government SAR – A Timeline of Investment & Returns
Government SAR – A Timeline of Investment & Returns Time Contracts 2022 2023 2024 2025 2026 2027-2032 2033-2038 UKSAR-H UKSAR2G NLSAR DCCG Falklands Acquisition Retender IRCG Tender Investment Period Base Contract Option Period Cash Yield 20
Slide 21: Global Offshore Helicopter Fleet Overview
Global Offshore Helicopter Fleet Overview
Slide 22: Leading Operator of Offshore Helicopters
220 200 180 160 Leading 140 # of Helicopters Operator of 120 Offshore Helicopters 100 201 80 60 108 104 40 74 51 20 42 39 33 31 30 0 Bristow CHC PHI Omni Gulf Lider ADA NHV PAS Weststar 1) As of March 31, 2024 2) Reflects estimated fleet size for the listed operators. Excludes PHI Air Medical config
Slide 23: Heavy / Medium Helicopter Fleet Snapshot
Heavy / Medium Helicopter Fleet Snapshot S92 AW189 H175 AW139 Market Bristow Market Bristow Market Bristow Market Bristow Total Avg. Total Avg. Total Avg. Total Avg. Total Avg. Total Avg. Total Avg. Total Avg. # Age # Age # Age # Age # Age # Age # Age # Age Market 286 12yrs 67 13yrs 87 7yrs 21 8yrs
Slide 24: A Snapshot of Newbuilds and Capacity
A Snapshot of Newbuilds and Capacity New deliveries to the offshore helicopter industry reduced Very little available capacity in the market at this time significantly following the last downturn in offshore energy Most recent deliveries have gone to closed system markets This tightness in the equip
Slide 25: The S92 Heavy Helicopter Model
The S92 Heavy Estimated S92 Attrition Over Time Helicopter Model 200 180 S92s have a 30,000-flight hour life span 160 140 120 The earliest deliveries of S92s began in 2004, so 100 the oldest models are approaching 20 years of age 80 60 40 The average age of Bristow owned S92s is 14 years, and the ol
Slide 26: Tightening Asset Market in Offshore Helicopters
Tightening Asset Market in Offshore Helicopters “Super-medium offshore types are at full utilisation… new orders will take 18 months (at least) to build.” “Requirements for additional heavy / super-medium aircraft can therefore only be met by use of inactive S92s. The ability to reactivate AOG will
Slide 27: Upgrading Fleet with New AW189 Helicopters
Upgrading Fleet with New AW189 Helicopters to Meet Customer Demand and Boost Profitability About the Order The AW189 Bristow's strategic fleet expansion will drive EBITDA growth at attractive returns Bristow's order for 10 new OES configured AW189 helicopters underscores the Company's commitment to
Slide 28: 2024-2026 Financial Guidance
2024-2026 Financial Guidance
Slide 29: Guidance
AFFIRMED NEW NEW Operating revenues (in USD, millions) 2024E(1)(2) 2025E(1)(2) 2026T(1)(2) Offshore energy services $850 - $970 $860 - $1,020 $965 - $1,155 Affirm 2024 Government services $335 - $360 $405 - $445 $430 - $460 Outlook and Issue 2025 Fixed wing services $100 - $120 $120 - $140 $125 - $1
Slide 30: Significant Growth
Adjusted EBITDA, excl. Asset Sales & Foreign Exchange $350 $300 $305 22+% $250 CAGR $ in millions Significant $228 Growth… $200 $205 $171 $150 $137 $100 $50 (1) The outlook projections provided for 2024, 2025 and 2026 are based on estimates and are not a guarantee of future performance. Please refer
Slide 31: Investments and Accelerating Upcycle Driving EBITDA Growth
Investments and Accelerating Upcycle Driving EBITDA Growth Full Year Impacts of new contracts commenced in prior year Attractive Leading-Edge Rates New and renewing contracts expected to be at more favorable rates compared to expiring contracts and continuing to reset well into 2026 Investment in Fl
Slide 32: Capital Allocation Strategy
Capital Allocation Strategy A Disciplined and Focused Approach Priority Balance Sheet Growth Shareholder Capital Returns • Protect and maintain • Pursue organic growth in new and existing markets • Return capital to shareholders strong balance sheet by evaluating share buybacks • Assess other growth
Slide 33: Summary
01 Global Leader in Vertical Flight Solutions Accelerating Multi-Year Growth Cycle in Offshore 02 Energy Services Investing to Grow and Diversify Highly Profitable Summary Government Services Business Meaningful Value Enhancement from End Market 04 Diversification Strong Balance Sheet with Robust Fr
Slide 34: Appendix
Appendix 1 Fleet Overview 2 NAV 3 ESG 4 Reconciliation of Adjusted EBITDA 5 Adjusted Free Cash Flow Reconciliation Operating Revenues, Seasonality, and Flight Hours by 6 Line of Service 34
Slide 35: Fleet Overview
NUMBER OF AIRCRAFT(1) AVERAGE AGE TYPE OWNED AIRCRAFT LEASED AIRCRAFT TOTAL AIRCRAFT (YEARS)(2) Heavy Helicopters: S92 38 29 67 14 AW189 17 4 21 8 S61 2 — 2 53 57 33 90 Medium Helicopters: AW139 49 4 53 13 S76 D/C++ 15 — 15 12 Fleet AS365 1 65 — 4 1 69 34 Overview Light—Twin Engine Helicopters: AW10
Slide 36: Adjusted Fleet
NUMBER OF AIRCRAFT ADDITIONS / AS ADJUSTED TYPE TOTAL AIRCRAFT(1) LEASE RETURNS RETIREMENTS(2) AIRCRAFT(3) Heavy Helicopters: S92 67 (2) (11) 54 AW189 21 15 36 S61 2 (2) - 90 90 Medium Helicopters: Adjusted AW139 S76 D/C++ AS365 53 15 1 6 (1) 59 15 - Fleet Light—Twin Engine Helicopters: 69 74 AW109
Slide 37: NAV per Share Calculation
NAV per Share Calculation (in $ millions, except share data) 03/31/2024 FMV of Owned Helicopters $ 1,313 NBV of Other PP&E 178 Working Capital 234 Other Assets, Net 138 Total Debt (544) Deferred Taxes, Net (31) Net Asset Value $ 1,288 Diluted Share Count 29.23 NAV per Share (excl. Leased Helicopters
Slide 38: ESG Highlights
ESG Highlights Calculated our Baseline Scope 1 and 2 Emissions Transitioning towards electric ground vehicles in the in 2021, 2022 and 2023(1) UK, Norway, and the U.S. ISO 140001 certification in our Brazil and Environmental UK operations, as well as U.S. Corporate Entered into 8 innovative partners
Slide 39: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Three Months Ended March 31, December 31, September 30, June 30, ($000s) 2024 2023 2023 2023 LTM Net income (loss) $ 6,632 $ (8,103) $ 4,345 $ (1,637) $ 1,237 Depreciation and amortization expense 17,169 17,007 17,862 18,292 70,330 Interest expense, net 9,472 11,274
Slide 40: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Three Months Ended March 31, December 31, September 30, June 30, ($000s) 2024 2023 2023 2023 LTM Net cash provided by (used in) operating activities $ 26,679 $ (9,499) $ 16,711 $ 18,210 $ 52,101 Less: Maintenance capital expenditures (4,949) (4,277) (4,656) (2,
Slide 41: Seasonality of Operations
Certain of our Operations are Subject to Seasonality: Operations in Nigeria are subject to seasonality as the Harmattan, a dry and Our operations in the Americas region are subject to seasonality where fewer dusty trade wind, blows between the end of December and the middle of hours of daylight in t
Slide 42: Operating Revenues and Flight Hours by Line of Service
Operating Revenues and Flight Hours by Line of Service Three Months Ended March 31, December 31, September 30, June 30, 2024 2023 2023 2023 LTM Operating revenues ($000s) Offshore energy services: Europe $ 99,530 $ 99,066 $ 94,346 $ 87,331 $ 380,273 Americas 88,515 89,200 91,099 80,884 349,698 Afric
Slide 43: LTM Operating Revenues by Region
LTM Operating Revenues by Region Three Months Ended March 31, December 31, September 30, June 30, (in millions) 2024 2023 2023 2023 LTM Revenues Europe $ 178.9 $ 177.3 $ 176.8 $ 170.7 $ 703.7 Americas 96.9 97.4 99.7 89.9 383.9 Africa 34.2 34.2 29.9 29.9 128.2 Asia Pacific 19.4 20.7 23.9 21.0 85.0 To