Bristow Group, Inc. · NYSE:VTOL
Bristow — Howard Weil 42nd Annual Energy Conference 2014
39 slides from Bristow's conference presentation, Mar 24, 2014
Slide 1: Howard Weil 42nd Annual Energy Conference
Exhibit 99.1 Howard Weil 42 nd Annual Energy Conference Bristow Group Inc. March 23 - 27, 2014
Slide 2: 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 3: Bristow is the leading provider of helicopter services and a unique investment in oil field services
Bristow is the leading provider of helicopter services and is a unique investment in oil field services • Ticker: BRS; stock price* of Bristow flies crews for oil and gas $73.58/share with a market cap* companies and provides search ~$2.7 billion and rescue (SAR) services for them and governments al
Slide 4: TARGET ZERO safety program creates differentiation and client loyalty
TARGET ZERO, our industry leading safety program, creates differentiation and client loyalty • Safety is our primary core value • Bristow’s ‘Target Zero’ program is now the leading example emulated industry-wide • Safety performance accounts for 25% of management incentive compensation • Flight Safe
Slide 5: Bristow services are utilized in every phase of offshore oil and gas growth
Bristow services are utilized in every phase of offshore oil and gas growth, especially production • Largest share of revenues (>60%) relates to Typical revenues by segment oil and gas production, providing stability and Other 10% growth opportunities Exploration 20% • There are ~ 8,000 offshore pro
Slide 6: Bristow's contract structure generates predictable income and cash flow
Bristow’s contract structure generates predictable income and cash flow Significant • Two-tiered operating leverage contract structure includes both: – Fixed monthly standing charge to reserve helicopter capacity – Variable fees based on hours flown with fuel pass-through • Bristow contracts earn 65
Slide 7: Our value proposition: secular growth, financial safety and balanced return
Our value proposition will continue to be based on secular growth, financial safety and balanced return Investment: FY 2012 - 2016 Long term value for our shareholders 2. Prudent balance sheet management with ample liquidity 1. Growth not dependent 3. Capital return on economic or through dividends
Slide 8: Financial highlights YTD
Financial highlights YTD: Adjusted EPS and adjusted EBITDAR summary YTD FY13 to YTD FY14 adjusted EPS bridge $0.11 $0.10 $0.33 $2.77 $3.11 YTD FY13 Operations Corporate and Other FX Changes YTD FY14 YTD FY13 to YTD FY14 adjusted EBITDAR bridge (in millions) $5.2 $5.2 $33.0 $278.0 $311.0 YTD FY13 Ope
Slide 9: Bristow Helicopters is making an investment in Eastern Airways
CHANGE: Bristow Helicopters is making an investment in Eastern Airways, a UK regional fixed-wing oil and gas focused transport company • Bristow Helicopters Limited (Bristow Helicopters) purchased a 60% interest in the privately owned Eastern Airways International Limited (Eastern Airways) • Eastern
Slide 10: Eastern Airways provides scale, stability and positive financial impact for EBU
Eastern Airways provides scale, stability and positive financial impact (with less capital) for EBU • Bristow Helicopters and Eastern Airways are culturally aligned with shared core values of safety, quality and service • Bristow Helicopters and Eastern Airways have a long standing relationship work
Slide 11: Opportunity tracker FY15-FY19: aircraft growth opportunities identified
Opportunity tracker FY15-FY19: 558 Bristow a/c growth opportunities identified 11
Slide 12: We manage our opportunities through aircraft options and committed orders
We manage our opportunities through the purchase of 104 a/c options and committed orders • Bristow uses specific opportunities to create 558 aircraft opportunities identified our order book • Opportunities are condensed to 185 298 demand for new aircraft realistic bids 185 realistic bid • 83 high pr
Slide 13: Our TSR has been highly correlated to improvement in Bristow Value Added
Our TSR has been highly correlated to year-over- year improvement in Bristow Value Added (BVA) . . . Bristow BVA vs. Bristow TSR • Overall, BVA shows a much stronger correlation to market trading values and therefore total shareholder return (TSR) • Correlations are particularly strong for the oil f
Slide 14: Three year total shareholder return over 90% since adopting BVA
. . .with Bristow’s three year total shareholder return (TSR) over 90% since adopting BVA Source: Factset 14
Slide 15: Strong cash generation for a balanced return
. . . and strong cash generation for a balanced return as demonstrated in the past several years. . . • FY12 quarterly dividend initiated at $0.15/share • Dividend increased by 33% to $0.20/share in June Regular 2012 quarter and increased by another 25% to dividend $0.25/share in August 2013 • Brist
Slide 16: FY14 guidance reaffirmed
… with FY14 guidance reaffirmed • FY14 adjusted EPS guidance reaffirmed on February 7, 2014 to $4.25 - $4.55, excluding special items and a/c sales. Other specific items include: FY14 guidance Average LACE ~160 - 164 Interest expense ~ $30 - $35M Average LACE rate ~ $8.95 - $9.25M Rent expense (a/c
Slide 17: Conclusions
Conclusions • Safety continues to be our #1 core value as we strive to achieve Target Zero and participate in industry efforts to share best practices. Bristow believes the UK CAA CAP1145 safety mandate will make the helicopter industry safer as we continue to serve our clients’ logistics needs • De
Slide 18: Appendix
Appendix WRG 2ERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 19: Organizational chart - as of December 31, 2013
Organizational chart - as of December 31, 2013 Operated Aircraft Affiliated Aircraft Bristow owned and/or operated 345 Bristow affiliates and joint aircraft as of December 31, 2013 ventures operated 126 aircraft as of December 31, 2013 Key Corporate Business Unit (% of Q3 FY14 operating revenue) Reg
Slide 20: Aircraft Fleet – medium and large
Aircraft Fleet – medium and large as of December 31, 2013 Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Large capacity 16-25 passengers Large Helicopters AS332 L Super Puma 18 Twin Turbine 19 - 19 - AW189 16 Twin Turbine - - - 17 EC175 16 Twin Turbine - - - 5 EC225 19 Twin Turbine 20 -
Slide 21: Aircraft Fleet – small, training and fixed
Aircraft Fleet – small, training and fixed as of December 31, 2013 (continued) Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Small capacity 4-7 passengers Small Helicopters AS350BB 4 Turbine - 2 2 - Bell 206B 4 Turbine 1 2 3 - Bell 206 L Series 6 Turbine 19 6 25 - Bell 407 6 Turbine 36
Slide 22: Operating lease strategy: lowering the cost and amount of capital needed to grow
Operating lease strategy: lowering the cost and amount of capital needed to grow Leased aircraft as of December 31, 2013 Small Medium Large Total Leased LACE Total LACE % Leased EBU - 1 21 22 22 59 37% WASBU - 1 1 2 2 22 7% NABU 4 13 3 20 11 34 31% AUSBU 2 2 4 8 6 20 28% OIBU - - - - - 28 - Total 6
Slide 23: Consolidated fleet changes and aircraft sales for Q3 FY14
Consolidated fleet changes and aircraft sales for Q3 FY14 Fleet changes Q1 FY14 Q2 FY14 Q3 FY14 YTD Held for sale aircraft in consolidated fleet Fleet Count Beginning 351 353 350 351 Small Medium Large Training Total Delivered EBU - - 2 - 2 Large 3 2 4 9 Medium 2 3 3 8 WASBU - 2 - - 2 Total Delivere
Slide 24: Operating revenue, LACE and LACE rate by BU
Operating revenue, LACE and LACE rate by BU Operating Revenue, LACE, and LACE rate by BU as of December 31, 2013 1 2,3 Op revenue LACE LACE rate EBU $452 59 $10.30 WASBU 231 22 14.17 NABU 174 34 6.75 AUSBU 108 20 7.21 OIBU 95 28 4.58 4 Total $1,091 162 $8.97 1) $ in millions 2) LACE rate is annualiz
Slide 25: Historical LACE by BU
Historical LACE by BU LACE FY10 FY11 FY12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBU 45 45 45 42 42 43 48 46 44 46 46 45 WASBU 23 23 24 25 24 24 21 22 23 22 22 22 NABU 39 36 36 36 39 35 34 29 30 29 30 30 AUSBU 20 20 22 22 20 23 24 20 19 20 20 19 OIBU 36 34 34 35 33 33 33 38 39 38 38 34 Consolidated 163
Slide 26: Historical LACE rate by BU
Historical LACE rate by BU LACE rate1,2 FY10 FY11 FY12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBU $8.36 $8.28 $8.40 $8.76 $8.20 $8.50 $7.90 $8.40 $9.80 $9.60 $9.63 $10.09 WASBU 9.08 8.81 8.66 8.34 9.70 9.40 10.70 9.90 9.10 10.30 11.17 11.46 NABU 5.05 5.44 5.26 5.23 5.40 6.10 6.00 6.60 5.80 6.30 5.89 5.
Slide 27: Order and options book as of December 31, 2013
Order and options book as of December 31, 2013 ORDER BOOK¹ OPTIONS BOOK Helicopter Helicopter # Class Delivery Date Location Contracted # Class Delivery Date 1 Medium March 2014 OIBU 1 of 1 2 Medium March 2015 1 Medium March 2014 NABU 1 Large June 2015 2 Large March 2014 EBU 1 of 2 3 Medium June 201
Slide 28: Order and options book (continued) - UK SAR configured order book
Order and options book as of December 31, 2013 (continued) UK SAR CONFIGURED ORDER BOOK Helicopter # Class Delivery Date Location Contracted 1 Large June 2014 EBU 1 of 1 3 Large September 2014 EBU 3 of 3 2 Large December 2014 EBU 2 of 2 2 Large March 2015 EBU 2 of 2 2 Large March 2015 EBU 2 of 2 2 L
Slide 29: Adjusted EBITDAR margin trend
Adjusted EBITDAR margin* trend FY11 FY12 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year EBU 29.8% 31.5% 34.6% 34.4% 32.7% 33.0% 31.4% 30.7% 36.1% 32.9% WASBU 33.7% 36.9% 35.8% 34.3% 35.2% 29.5% 35.5% 37.2% 36.6% 35.0% NABU 20.8% 25.8% 15.9% 8.5% 18.5% 14.3% 20.6% 14.8% 19.4% 17.3% AUSBU 33.2% 26.1% 27.
Slide 30: Adjusted EBITDAR reconciliation
Adjusted EBITDAR* reconciliation Fiscal year ended, 3/31/2011 3/31/2012 ($ in millions) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Net income $20.9 $38.8 $42.3 $31.2 $133.3 $21.2 $3.0 $26.5 $14.6 $65.2 Income tax expense 8.5 3.3 -11.8 7.1 7.1 6.6 -1.9 7.1 2.4 14.2 Interest expense 11.1 11.5 13.8 9.
Slide 31: Bristow stock price reflects improved operational performance and increasing shareholder returns
Bristow stock price reflects improved operational performance and increasing shareholder returns Note: The net asset FMV per share does not include our UK SAR aircraft 31
Slide 32: Net asset fair market value per share calculation
Net asset fair market value (FMV) per share calculation as of December 31, 2013 (in millions) (+) FMV of a/c $ 1,949 (+) FMV of leased a/c 873 (+) NBV of PPE w/o a/c 540 (+) Working capital 481 (-) LT debt (833) (-) Leased imputed debt (394) (-) Pension liability (125) Net asset FMV $ 2,492 # of com
Slide 33: Bristow Value Added sample calculation for Q2 FY14 and Q2 FY13
Bristow Value Added (BVA) Sample calculation for Q2 FY14 and Q2 FY13 Bristow Value Added = Gross Cash Flow – (Gross Operating Assets X Capital Charge) BVA = GCF - ( GOA X 10.5%** ) Bristow Value Added calculation for Q2 FY14 $22.4 = $109.2* - ( $3,309* X 2.625%**) Bristow Value Added calculation for
Slide 34: Bristow Value Added sample calculation for Q3 FY14 and Q3 FY13
Bristow Value Added (BVA) Sample calculation for Q3 FY14 and Q3 FY13 Bristow Value Added = Gross Cash Flow – (Gross Operating Assets X Capital Charge) BVA = GCF - ( GOA X 10.5%** ) Bristow Value Added calculation for Q3 FY14 $12.1 = $100.8* - ( $3,378* X 2.625%**) Bristow Value Added calculation for
Slide 35: Gross cash flow reconciliation
Gross cash flow reconciliation 35
Slide 36: Adjusted gross operating assets reconciliation
Adjusted gross operating assets reconciliation (in millions) Adjusted gross operating assets reconciliation Q2 FY13 Q3 FY13 Q2 FY14 Q3 FY14 Total assets $2,785 $3,051 $3,166 $3,277 Accumulated depreciation 464 480 518 530 Capitalized operating leases 225 244 373 419 Cash and cash equivalents (348) (
Slide 37: GAAP reconciliation
GAAP reconciliation (i) See information about special items in 10-Q or earnings release for Q3 FY14 (ii) 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
Slide 38: Leverage reconciliation
Leverage reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of December 31, 2013 $ 841.6 $ 1,762.9 $ 2,604.5 32.3% Adjust for: Unfunded Pension Liability 125.0 125.0 NPV of Lease Obligations 393.6 393.6 Letters of credit 2.4 2.4 Adjusted $ 1,362.6 (d)
Slide 39: Contact Us
Contact Us Bristow Group Inc. (NYSE: BRS) 2103 City West Blvd., 4 th Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com 39
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