Bristow Group, Inc. · NYSE:VTOL
Bristow — Era Group — Q3 2017 Earnings Presentation
15 slides from Bristow's earnings presentation, Nov 9, 2017
Slide 1: Q3 2017 Earnings Presentation
Q3 2017 Earnings Presentation 0November 10, 2017
Slide 2: Q3 2017 Earnings Call Agenda
1 Q3 2017 Earnings Call Agenda I. Introduction Shefali Shah, SVP and General Counsel II. Operational Highlights Chris Bradshaw, President and CEO III. Financial Review Jennifer Whalen, VP and Acting CFO IV. Concluding Remarks Chris Bradshaw, President and CEO V. Questions & Answers
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 non-GAAP 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 and interest expense), Taxes, Depreciation and Amortization. Adjusted EBITDA is defined as EBITDA further a
Slide 5: H225 Update
4 H225 Update • Due to an accident in April 2016 involving an Airbus Helicopters H225 model helicopter (also known as an EC225LP) operated by another helicopter operator, the vast majority of the offshore oil and gas fleet of H225 and AS332 L2 model helicopters remains on operational suspension − Th
Slide 6: Financial Stability
5 Financial Stability • Era continued to generate positive operating cash flow of $4.6 million in Q3 2017, raising the year-to- date total to $17.9 million − Subtracting net cash used in investing activities of $3.1 million, YTD net cash flows from operating and investing activities are positive $14
Slide 7: Q3 2017 Highlights – Sequential Quarter Comparison
6 Q3 2017 Highlights – Sequential Quarter Comparison • Revenues were $3.5mm higher than Q2 2017 ̶ Primarily due to higher utilization in oil & gas operations ̶ Partially offset by the absence of the benefit from lease return charges recognized in Q2 2017 • Operating expenses were $2.7mm higher prima
Slide 8: Q3 2017 Highlights – Calendar Quarter Comparison
7 Revenues ($000s) Adjusted EBITDA ($000s) Q3 2017 Highlights – Calendar Quarter Comparison • Revenues were $3.6mm lower than Q3 2016 ̶ Primarily due to the end of air medical contracts, fewer SAR subscribers and lower utilization of light helicopters in U.S. oil & gas operations ̶ Partially offset
Slide 9: Appendix
8 Appendix
Slide 10: Fleet Overview
9 Fleet Overview Owned Leased-In Total Average Age(a) Heavy: S92 3 – 3 2 H225 9 – 9 7 AW189 4 – 4 1 Total Heavy 16 – 16 Medium: AW139 36 – 36 8 S76 C+/C++ 5 – 5 11 B212 6 – 6 38 Total Medium 47 – 47 Light – twin engine: A109 7 – 7 11 EC135 13 2 15 9 EC145 3 – 3 9 BK-117 – 2 2 N/A BO-105 3 – 3 28 Tot
Slide 11: Credit facility and liquidity
10 • In October 2016, Era amended its revolving credit facility to ensure access to liquidity through the downturn • Non-cancelable capital commitments can be funded via combination of cash-on-hand, cash flow from operations and borrowings under the credit facility • Total available liquidity of $15
Slide 12: Operating Revenues and Flight Hours by Line of Service
11 Revenue ($000s) 30-Sep-17 30-Jun-17 31-Mar-17 31-Dec-16 30-Sep-16 Oil and gas:(a) U.S. $36,578 $32,081 $30,341 $31,709 $35,961 International 16,764 14,284 17,167 14,881 17,306 Total oil and gas $53,342 $46,365 $47,508 $46,590 $53,267 Dry-leasing 2,558 6,606 3,279 3,719 2,664 Emergency Response Se
Slide 13: Financial Highlights
12 Financial Highlights (a) Adjusted EBITDA is a non-GAAP measure. See next page for Adjusted EBITDA reconciliation to Net Income (Loss) Fiscal Year ($ millions) 2012 2013 2014 2015 2016 2016 2017 Revenue 272.9$ 299.0$ 331.2$ 281.8$ 247.2$ 190.9$ 173.8$ Operating Expenses 167.2 186.6 204.4 171.5 169
Slide 14: Reconciliation of Non-GAAP Financial Measures
13 Reconciliation of Non-GAAP Financial Measures • Adjusted EBITDA reflects special items: – Executive severance adjustments of $0.7 million, $2.5 million and $0.6 million in 2012, 2014 and Q2 2017, respectively – An adjustment for IPO-related fees and expenses of $2.9 million in 2012 – A pre-tax im
Slide 15: Quarterly Reconciliation of Non-GAAP Financial Measures
14 Quarterly Reconciliation of Non-GAAP Financial Measures (US$ in thousands) 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 30-Sep-17 Net Loss (802)$ (5,648)$ (5,787)$ (3,072)$ (81,215)$ Depreciation 12,519 11,339 11,554 11,978 12,103 Interest Income (466) 429 (250) (185) (206) Interest Expense 4,003 4,44