Bristow Group, Inc. · NYSE:VTOL
Bristow — Era Group — Q4 2017 Earnings Presentation
18 slides from Bristow's earnings presentation, Mar 9, 2018
Slide 1: Q4 and FY2017 Earnings Presentation
Q4 and FY2017 Earnings Presentation 1March 9, 2018 Exhibit 99.2
Slide 2: Q4 and FY2017 Earnings Call Agenda
Q4 and FY2017 Earnings Call Agenda I. Introduction Tomas Johnston, Acting General Counsel II. Operational Highlights Chris Bradshaw, President and CEO III. Financial Review Jennifer Whalen, SVP and CFO IV. Concluding Remarks Chris Bradshaw, President and CEO V. 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 give the Company’s current expectations or forecasts of future events. Forward-looking statements generally can be identified by the use of forward-looking te
Slide 4: Non-GAAP measures: EBITDA and Adjusted EBITDA
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 adj
Slide 5: Operational Highlights
• 2017 was Era's best safety year on record – OSHA TRIR of 0.17 – ZERO Air Accidents – Focused on continuous improvement in 2018 • In January 2018, Era made final progress payment of $2.8 million and took delivery of our fourth S92 heavy helicopter • On February 23, 2018, Era sold our flightseeing a
Slide 6: Cash flow and liquidity
• Era continued to generate positive operating cash flow in Q4 2017, raising the FY2017 total to $20.1 million – Subtracting net cash used in investing activities of $6.0 million, FY2017 net cash flows from operating and investing activities were positive $14.1 million • As of March 2018, all of the
Slide 7: Recent Tax Developments
Recent Tax Developments U.S. Tax Cuts and Jobs Act Legislation • Corporate tax rate reduced from 35% to 21% – Non-cash deferred tax benefit of approximately $70 million in Q4 2017 • Net operating losses – Pre-2018 losses – 20-yr carryforward, offset 100% of taxable income – Post-2017 losses – indefi
Slide 8: Q4 2017 Highlights – Sequential Quarter Comparison
• Revenues were $3.9mm lower than Q3 2017 – Primarily due to the end of seasonal activities in Alaska and lower utilization of light helicopters in U.S. oil & gas operations – Partially offset by higher dry-leasing revenues • Operating expenses were $0.4mm higher. – Primarily due to the accounting f
Slide 9: Q4 2017 Highlights – Calendar Quarter Comparison
• Revenues were $1.2mm higher than Q4 2016 – Primarily due to higher utilization of medium and heavy helicopters in oil & gas operations – Partially offset by the end of air medical contracts and fewer SAR subscribers • Operating expenses were $6.6mm higher – Primarily due to higher repairs and main
Slide 10: FY2017 Highlights – Full Year Comparison
• Revenues were $15.9mm lower than 2016 – Primarily due to lower revenues from emergency response services and lower utilization of light helicopters in oil & gas operations – Partially offset by higher utilization of medium and heavy helicopters in oil & gas operations and lease return charges on h
Slide 11: Appendix
11 Appendix
Slide 12: Fleet Overview
Owned Leased-In Total Average Age(a) Heavy: S92 3 — 3 2 H225 9 — 9 8 AW189 4 — 4 1 Total Heavy 16 — 16 Medium: AW139 36 — 36 8 S76 C+/C++ 5 — 5 11 B212 6 — 6 39 Total Medium 47 — 47 Light – twin engine: A109 7 — 7 12 EC135 13 2 15 9 EC145 2 — 2 9 BK-117 — 2 2 N/A BO-105 3 — 3 28 Total Light – twin e
Slide 13: NAV per Share Calculation
(in millions, except share data) 12/31/2017 + FMV of Helicopters (3rd party appraisals) $ 670 + NBV of Other PP&E 82 + Working Capital 53 + Other Net Tangible Assets 33 - Total Debt (205) - Deferred Taxes (107) Net Asset Value $ 526 Diluted Share Count 20.8 Current Share Price (3/5/2018) $ 9.43 Curr
Slide 14: Healthy Leverage Metrics and Liquidity
• In March 2018, Era entered into a Consent and Amendment to its Revolving Credit Facility that: – extended the agreement until March 31, 2021 – reduced the aggregate principal amount of revolving loan commitments from $200 million to $125 million – revised the definition of EBITDA to permit an add-
Slide 15: Operating Revenues and Flight Hours by Line of Service
Operating Revenues and Flight Hours by Line of Service Note: Flight hours exclude hours flown by helicopters in the dry-leasing line of service (a) Primarily oil and gas services, but also includes revenues and flight hours from utility services, such as firefighting, and VIP transport (b) Includes
Slide 16: Quarterly Reconciliation of Non-GAAP Financial Measures
Quarterly Reconciliation of Non-GAAP Financial Measures Quarterly Historical EBITDA and Adjusted EBITDA (US$ in thousands) 31-Dec-16 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 Net Income (Loss) $ (5,648) $ (5,787) $ (3,072) $ (81,215) $ 61,459 Depreciation 11,339 11,554 11,978 12,103 10,101 Interest In
Slide 17: Financial Highlights Fiscal Year
(a) Adjusted EBITDA is a non-GAAP measure. See next page for Adjusted EBITDA reconciliation to Net Income (Loss) Financial Highlights Fiscal Year ($ millions) 2013 2014 2015 2016 2017 Revenue $ 299.0 $ 331.2 $ 281.8 $ 247.2 $ 231.3 Operating Expenses 186.6 204.4 171.5 169.9 167.4 G&A 38.9 44.0 42.8
Slide 18: Adjusted EBITDA special items
• Adjusted EBITDA reflects special items: – Executive severance adjustments of $2.5 million and $0.6 million in 2014 and Q2 2017, respectively – A one-time charge of $2.0 million related to operating leases on certain air medical helicopters in 2013 – A pre-tax impairment charge of $2.5 million in 2