Bristow Group, Inc. · NYSE:VTOL
Bristow — Q1 2012 Earnings Presentation
38 slides from Bristow's earnings presentation, Aug 10, 2011
Slide 1: First Quarter FY 2012 Earnings Presentation
Exhibit 99.1 First Quarter FY 2012 Earnings Presentation Bristow Group Inc. August 9, 2011
Slide 2: First quarter earnings call agenda
First quarter earnings call agenda Introduction Linda McNeill, Director Investor Relations CEO remarks and operational highlights Bill Chiles, President and CEO Current and future financial performance Jonathan Baliff, SVP and CFO - FY12 Q1 Financial discussion - Introduction of Client Promise, LACE
Slide 3: Forward-looking statements
Forward-looking statements This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about our future business, operations, capital expenditures, fleet composition, capabilities
Slide 4: Chief Executive comments
Chief Executive comments Bill Chiles, President and CEO 4
Slide 5: Operational safety review
Operational safety review Air Accident Rate* per 100,000 Total Reportable Injury Rate per 200,000 man- Flight Hours (Fiscal Year) hours (cumulative) 1.00 0.40 0.38 0.43 0.50 0.32 0.33 0.34 0.34 0.31 0.28 0.25 2.00 0.00 0.00 0.00 J A S O N D J F M A M J FY11 FY12 1.17 Lost Work Case Rate per 200,000
Slide 6: Q1 FY12 highlights
Q1 FY12 highlights • Q1 Operating revenue of $286.8M (5% increase from Q1 FY11, 5% increase from Q4 FY11) • Q1 adjusted EPS * of $0.54 (same as Q1 FY11, 37% decrease from Q4 FY11) • Q1 GAAP EPS of $0.57 (same as Q1 FY11, 32% decrease from Q4 FY11) • Q1 adjusted operating income * of $35M (8% decreas
Slide 7: Current market environment
Current market environment • Brent remains above $100 in the face of EIA (U.S. Energy Information Administration) reserve release in April 2011 and the weak global economy • By the end of 2011, Global Exploration & Production (E&P) spending will have reached the 2008 pre-recession level of $500 bill
Slide 8: Quarter-over-quarter changes in Operating Income
Quarter-over-quarter changes in Operating Income Operating Income* Q1 FY12 Operating Income* Q1 FY11 Other International 4% Other International Australia 23% 16% Europe 37% Europe 44% North America Australia 11% 9% North America 3% West Africa West Africa 21% 32% Total Operating income for Q1 FY12 i
Slide 9: Europe (EBU)
Europe (EBU) Hammerfest Bergen • Europe represents 38% of total operating revenue Kristiansund in Q1 FY12 and 44% of operating income Stavanger • Operating margin of 21.5% vs 21.4% in prior year quarter Scasta • European oil and gas continues to grow with new entrants, despite experts predictions th
Slide 10: West Africa (WASBU)
West Africa (WASBU) Warri Osubi • Nigeria represents 18% of total operating Warri Texaco Port Harcourt revenue in Q1 FY12 and 21% of operating income • Operating revenue of $52.3M decreased from Escravos Eket $57.7M in Q1 FY11 • Operating income decreased to $11.2M from $15.6M • Operating margin of
Slide 11: Australia (AUSBU)
Australia (AUSBU) • Australia represented 14% of total operating Broome Truscott Darwin BDI provide support revenue in Q1 FY12 and 9% of operating to the Republic of income Singapore Air Force • Operating revenue of $40.9M increased Karratha Oakey from $33.8M primarily due to a favorable currency ex
Slide 12: Other International (OIBU)
Other International (OIBU) • OIBU represented 12% of total operating revenue and 23% of operating income for Q1 FY12 • Operating revenue increased to $34.5M from $32.6M • Operating income increased to $11.9M from $2.3M • Operating margin increased to 34.5% vs 6.9% in the prior year quarter • Signifi
Slide 13: North America (NABU)
North America (NABU) • Operating revenue fell to $43.9M from $52.1M and represented 15% of total operating revenue; • Operating income of $1.6M vs. $5.3M in the prior year quarter • Operating margin of 3.6% declined from 10.2% in the prior year quarter • 22% sequential flight hour increase (from 16,
Slide 14: Financial discussion
Financial discussion Jonathan Baliff, SVP and CFO 14
Slide 15: Financial highlights - Adjusted EPS & EBITDA Summary
Financial highlights - Adjusted EPS & EBITDA* Summary Q1 FY11 to Q1 FY12 adjusted EPS bridge $0.05 $0.01 $0.04 $0.10 $0.54 $0.54 Q1FY2011 Operations Corporate and Other Taxes FX Changes Q1FY2012 Q1 FY11 to Q1 FY12 adjusted EBITDA bridge (in millions) $4.7 $6.8 $2.1 $58.1 $58.1 Q1FY2011 Operations Co
Slide 16: Wider scope of Bristow five year growth opportunities
Wider scope of Bristow five year growth opportunities… 442 aircraft Total Aircraft Opportunities Existing aircraft New growth 77 aircraft 107 24 279 56 42 5 New replacement 27 aircraft Europe 19 8 24 4 North America 30 56 Caspian, Mid-East 9 26 Libya, East Africa 113 9 6 Malaysia, Thailand Indonesia
Slide 17: Identified opportunities for the next five years while maximizing optionality
Identified opportunities for the next five years while maximizing optionality 442 aircraft opportunities identified 335 demand for New aircraft 112 expected win rate based on market share 67 built into 5 year plan 11 on large medium small order Orders* 11 0 0 Options* 24 15 0 *As of June 30, 2011 17
Slide 18: Five year cumulative cash projection with over $700 million available
Five year cumulative cash projection with over $700 million available for further growth and capital return 1,121 Operating 1,378 103 leases Operating 497 leases 238 735 116 FY11 balance Operating Asset sales Aircraft Other capex Maintain Available for cash flow purchases optimal capital dividend/ s
Slide 19: Introduction of Client Promise, LACE & BVA
Introduction of Client Promise, LACE & BVA Jonathan Baliff, SVP and CFO 19
Slide 20: We Have Enhanced Our Focus on Value
We Have Enhanced Our Focus on Value Client Promise Creating client value through differentiation LACE Rate Driving and communicating utilization and revenue productivity Bristow Value Added Delivering shareholder return above our cost of capital 20
Slide 21: The Client Promise: value through differentiation
The Client Promise: value through differentiation Target Zero accidents, downtime and complaints programs deliver value to operators. More zero-accident flight hours than anyone, more uptime than anyone, and hassle-free service creates confidence in flight. Worldwide. Lowers client’s offshore operat
Slide 22: Introduction to LACE and the LACE Rate
Introduction to LACE and the LACE Rate – Large Aircraft Equivalent (LACE) LACE Math – “LACE” normalizes revenue and is 100% per # of Large Aircraft functionally similar to BOE in the E&P +50% per # of Medium Aircraft business +25% per # of Small Aircraft – “LACE” combines Large, Medium and Small air
Slide 23: LACE and LACE Rate Historical Trends
LACE and LACE Rate Historical Trends Conslidated commercial aircraft Large Aircraft Equivalent (LACE*) LACE Rate (Annual) (in millions) 350 324 323 295 290 $7.50 300 279 $7.15 $7.00 250 $6.49 $6.50 $6.14 200 156 161 164 159 $6.00 153 $5.72 150 $5.50 $4.92 100 $5.00 50 $4.50 0 $4.00 FY07 FY08 FY09 FY
Slide 24: Phase II guidance roll out
Phase II guidance roll out Phase I • EPS guidance range (as of May 11, 2011; reaffirmed today) $3.55 - $3.90, excluding effects of asset dispositions and special items • Depreciation and amortization expense ~$85 – $90 million • SG & A expense ~ $135 - $140 million • Interest expense ~ $37 - $42 mil
Slide 25: Introducing BVA, Bristow Value Added
Introducing BVA, Bristow Value Added • BVA is the key measure to define Bristow financial success. Value • BVA is robust enough to capture: Gross Added Revenue/Pricing Cash After Tax Margins Flow Capital Asset Intensity Charge Adjusted After Reinvestment Rate Tax Operating Differentiation Gross Cash
Slide 26: Financial Indicators and BVA Trends
Financial Indicators and BVA Trends Gross Revenue Gross Cash Flow and Capital Charge $1,400 (in millions) (in millions) $1,233 $300 $1,168 GCF $267 $1,200 $1,134 $257 $244 $1,040 $250 Capital Charge $212 $218 $1,000 $898 $189 $200 $174 $173 $800 $150 $128 $132 $600 $400 $100 $200 $50 $0 $0 FY07 FY08
Slide 27: Driving BVA… Driving Shareholder Value
Driving BVA… Driving Shareholder Value Strategic Initiative LACE Rate The Client Promise ($ per aircraft per year) Revenue ($) Changes in Investing in Fleet LACE BVA Expansion ($) = (aircraft) Gross Cash Shareholder Cost Efficiency Flow Margin Total Return (%) BVA Margin ($) ($) Asset Capital Intens
Slide 28: Conclusions
Conclusions • Front-loaded compensation, professional, and training costs in the first quarter masked significant growth in the Other International Business Unit • Reaffirmation of annual EPS guidance of $3.55 - $3.90 for this fiscal year • Dividend of $0.15 approved for payment on September 12, 201
Slide 29: Appendix
Appendix WEA 7ERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 30: Organizational Chart - as of June 30, 2011
Organizational Chart - as of June 30, 2011 Bristow NABU EBU WASBU AUSBU OIBU BRS Academy 15%* 38% 18% 14% 12% 2% U.S. GoM – 81/7 UK – 35/4 Nigeria – 49/7 Australia – 32/10 Mexico – 18/5 Florida – 52/1 Brazil – 6/9 Louisiana – 13/1 Alaska – 14/3 Netherlands – 5/1 California – 6/1 Trinidad – 8/1 Norwa
Slide 31: Aircraft Fleet – Medium and Large
Aircraft Fleet – Medium and Large As of June 30, 2011 Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Medium capacity 12-16 passengers Large Helicopters AS332L Super Puma 18 Twin Turbine 30 - 30 - Bell 214ST 18 Twin Turbine - - - - EC225 25 Twin Turbine 17 - 17 3 Mil MI 8 20 Twin Turbine
Slide 32: Aircraft Fleet – Small, Training and Fixed
Aircraft Fleet – Small, Training and Fixed As of June 30, 2011 (continued) Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Small Helicopters Bell 206B 4 Turbine 2 2 4 - Bell 206 L-3 6 Turbine 4 6 10 - Small capacity 4-7 passengers Bell 206 L-4 6 Turbine 31 2 33 - Bell 407 6 Turbine 42 1
Slide 33: Consolidated Fleet Changes and Aircraft Sales for Q1 FY12
Consolidated Fleet Changes and Aircraft Sales for Q1 FY12 Q 1 FY12 Total # of A/C Cash Fleet Count Beginning Period 373 373 Sold Received* Gain/ Loss* Delivered Q1 FY 12 3 2,478 1,525 EC225 2 2 0 Totals 3 2,478 1,525 Total Delivered 2 2 * Amounts stated in thousands Removed Sales (3) (3) Other* - To
Slide 34: Gross Cash Flow Presentation
Gross Cash Flow Presentation (in millions) Gross Cash Flow Reconciliation FY2007 FY2008 FY2009 FY2010 FY2011 Net Income 74 104 123 112 132 Depreciation and Amortization 43 54 66 75 91 Interest Expense 11 24 35 42 46 Interest Income (9) (13) (6) (1) (1) Rent 19 23 21 18 29 Other Income/expense-net 9
Slide 35: Gross Operating Asset Presentation
Gross Operating Asset Presentation (in millions) Adjusted Gross Operating Assets Reconciliation FY2007 FY2008 FY2009 FY2010 FY2011 Total Assets 1,506 1,977 2,335 2,495 2,663 Accumulated Depreciation 300 317 351 404 446 Capitalized Operating Leases 61 63 90 97 132 Cash and Cash Equivalents (184) (290
Slide 36: Operating margin trend
Operating margin trend As reported in prior periods (operating income/gross revenue) 2008 2009 2010 2011 2012 Full Year Full Year Full Year Q1 Q2 Q3 Q4 FY Q1 EBU 23.6% 19.3% 17.0% 18.0% 18.4% 19.6% 18.8% 18.8% 17.3% WASBU 17.9% 21.5% 28.5% 26.5% 29.5% 29.8% 24.0% 27.4% 20.6% NABU 14.5% 12.1% 6.1% 10
Slide 37: Leverage Reconciliation
Leverage Reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of June 30, 2011 $ 732.4 $ 1,538.7 $ 2,271.1 32.2% Adjust for: Unfunded Pension Liability 98.1 98.1 NPV of GE and Norsk Lease Obligations 39.6 39.6 Adjusted $ 870.1 (d) $ 1,538.7 $ 2,408.8 36.
Slide 38: Contact Us
Contact Us Bristow Group Inc. (NYSE: BRS) 2000 West Sam Houston Parkway South Suite 1700, Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com 38