Slide 1: Second quarter FY17 earnings presentation
Second quarter FY17 earnings presentation Bristow Group Inc. November 4, 2016 Exhibit 99.1
Slide 2: Forward-looking statements
Forward-looking statements Statements contained in this presentation regarding the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. These forward-looking statements include statements regarding earnings guidance and earni
Slide 3: Executive summary and safety review
Executive summary and safety review
Slide 4: Q2 FY17 operational safety review
Q2 FY17 operational safety review AAR prior to FY16 includes commercial helicopter operations for Bristow Group and consolidated affiliates. AAR beginning in FY16 includes all Category A and B accidents for consolidated Bristow operations, including Airnorth, Bristow Academy and Eastern Airways. FY1
Slide 5: Overview
Overview The September 2016 quarter results are consistent with our view that our global oil and gas business is bottoming with financial results in line with internal expectations Improving our liquidity through: Returning leased aircraft in Q4 FY17 with annual savings of $12M beginning in FY18 Fin
Slide 6: ~$1.5 billion of unencumbered aircraft assets provides significant value to bridge liquidity
~$1.5 billion of unencumbered aircraft assets provides significant value to bridge liquidity U.K. SAR aircraft U.K. SAR infrastructure Oil and gas aircraft and infrastructure Equipment and/or other secured financing Leveraging inherent long-term aircraft and other asset values Return of leased aircr
Slide 7: Cash flow and liquidity in line with internal expectations
Cash flow and liquidity in line with internal expectations $ in millions Net cash provided by operating activities1 Total liquidity2 $ in millions See 10-Q for more information on cash flow provided by operating activities At period end 415 530 370 360 267 232 253 116 267
Slide 8: Flexibility to reduce our leverage and fixed lease costs in future years
Flexibility to reduce our leverage and fixed lease costs in future years We intend to return the first five aircraft (all oil and gas configured S-92s) upon lease expiration in Q4 FY17 which will generate ~$12 million in annual rent savings from FY18 forward We executed new leases for three SAR conf
Slide 9: We are reaffirming FY17 guidance based on September foreign exchange rates
We are reaffirming FY17 guidance based on September 30 foreign exchange rates 1) FY17 guidance assumes FX rates as of September 30, 2016 2) EBITDAR excludes corporate overhead allocations consistent with financial reporting. EBITDAR is a non-GAAP measure of which the most comparable GAAP measure is
Slide 10: Bristow has continued to execute successfully to survive this downturn
Bristow has continued to execute successfully to survive this downturn as a global leader Primary focus remains on continuing to improve upon our safety performance from the first half of FY17 We have delivered on a number of recent actions that improve our liquidity and solidify our status as an in
Slide 11: Operational highlights
Operational highlights
Slide 12: Q2 FY17 results
Q2 FY17 results Adjusted EBITDAR1 $ in millions Operating revenue $ in millions Net loss Adjusted net income (loss) 1) Adjusted EBITDAR and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items.
Slide 13: Europe Caspian
Europe Caspian United Kingdom Norway Turkmenistan Operating revenue $ in millions Falkland Islands Adjusted EBITDAR $ in millions
Slide 14: U.K. SAR
U.K. SAR 1) LACE count based on aircraft types specified in original contract
Slide 15: Africa
Africa Nigeria Egypt $ in millions Operating revenue Adjusted EBITDAR $ in millions
Slide 16: Americas
Americas United States Canada Brazil Trinidad Operating revenue $ in millions Guyana Adjusted EBITDAR $ in millions
Slide 17: Líder update
Líder update Líder adjusted EBITDAR1 1) Reconciliation of adjusted EBITDAR, leverage and BVA provided in the appendix
Slide 18: Asia Pacific
Asia Pacific Russia Australia Malaysia Operating revenue $ in millions Adjusted EBITDAR $ in millions
Slide 19: Appendix
Appendix
Slide 20: Organizational chart as of September 30, 2016
Organizational chart as of September 30, 2016 Business Unit (% of current period operating revenue) Corporate Region ( # of aircraft ) Joint Venture (# of aircraft) Key Operated Aircraft Bristow owned and/or operated 345 aircraft Affiliated Aircraft Bristow affiliates and joint ventures operated 113
Slide 21: Fleet as of September 30, 2016
Next Generation Aircraft Mature Aircraft Fair market value of our owned fleet is ~$2.0 billion and leased fleet is ~$1.9 billion Medium capacity 12-15 passengers Large capacity 16-25 passengers Fleet as of September 30, 2016
Slide 22: Fleet as of September 30, 2016 (continued)
Mature Aircraft 1) LACE does not include held for sale, training helicopters and fixed wing Next Generation Aircraft Small capacity 4-7 passengers Training capacity 2-6 passengers Fleet as of September 30, 2016 (continued)
Slide 23: Leased aircraft detail as of September 30, 2016
Of the 115 aircraft currently leased in our fleet, 79 are commercial (66 LACE), 18 are training and 18 are fixed wing 66 LACE aircraft represent approximately 40% of our commercial fleet Our goal is for commercial fleet operating leases to account for approximately 35% of our LACE 1) The percentage
Slide 24: Consolidated fleet changes and aircraft sales
See 10-Q Note 5 “Commitments and Contingencies” for more information provided on operating leases. * Includes writeoffs, lease returns, and commencements Consolidated fleet changes and aircraft sales * Includes writeoffs, lease returns, and commencements
Slide 25: Held for sale and leased fleet by region
See 10-Q Note 5 “Commitments and Contingencies” for more information provided on operating leases. Held for sale and leased fleet by region
Slide 26: Operating revenue, LACE and LACE rate by region
Operating revenue, LACE and LACE rate by region 4 $ in millions LACE rate is annualized $ in millions per LACE Excludes Bristow Academy, Airnorth and Eastern Airways
Slide 27: Historical LACE by region
Historical LACE by region LACE FY13 FY14 FY15 Qi Q2 Q3 a4 Qi Q2 Q3 a4 Qi Q2 Q3 a4 Europe Caspian 48 46 52 56 58 60 60 57 62 68 70 72 Africa 23 23 21 21 21 22 23 24 24 24 22 21 mericas 48 46 53 52 51 48 48 47 47 45 46 45 Asia Pacific 29 28 28 30 30 30 34 30 31 29 31 29 Consolidated 147° 142) «154158
Slide 28: Historical LACE rate by region
Historical LACE rate by region $ in millions LACE rate calculated as YTD revenue annualized divided by period ending LACE count
Slide 29: Order and options book as of September 30, 2016
Order and options book as of September 30, 2016 Orders that can be cancelled prior to delivery date
Slide 30: Net asset FMV
NOTE: The company derives market value from observable market data if available and may require utilization of estimates, applications of significant judgment and reliance upon valuation specialists’ and third party analysts’ reports. When using third party reports, the market value is as of the dat
Slide 31: Net asset FMV reconciliation
Net asset FMV reconciliation
Slide 32: Adjusted EBITDAR margin trend by region
Adjusted EBITDAR margin trend by region Adjusted EBITDAR excludes special items and asset dispositions and margin is calculated by taking adjusted EBITDAR divided by operating revenue
Slide 33: Historical U.K. SAR performance
Historical U.K. SAR performance GAP and U.K. SAR operating results are included within our Europe-Caspian region results. EBITDAR excludes corporate overhead allocations consistent with financial reporting. EBITDAR is a non-GAAP measure of which the most comparable GAAP measure is net income (loss).
Slide 34: Historical fixed wing performance
Historical fixed wing performance Fixed wing operating results are included within their respective regional results. EBITDAR excludes corporate overhead allocations consistent with financial reporting. EBITDAR is a non-GAAP measure of which the most comparable GAAP measure is net income (loss). We
Slide 35: Adjusted EBITDAR reconciliation
Adjusted EBITDAR reconciliation Adjusted EBITDAR excludes special items and asset dispositions
Slide 36: Adjusted EBITDAR regional reconciliation
Adjusted EBITDAR regional reconciliation Adjusted EBITDAR excludes special items and asset dispositions
Slide 37: GAAP reconciliation
GAAP reconciliation See information about special items in 10-Q or earnings release for Q2FY17 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 share impa
Slide 38: Bristow Value Added (BVA)
Bristow Value Added (BVA) BVA is computed by subtracting a capital charge (10.5%) for the use of gross invested capital from after tax operating cash flow. GCF Return % is based on trailing twelve months after tax operating cash flows (Gross Cash Flow) over average quarterly gross invested capital (
Slide 39: Bristow Value Added (BVA) sample calculation
Bristow Value Added (BVA) Sample calculation for Q2 FY17 and Q2 FY16 Bristow Value Added = Gross Cash Flow – (Gross Operating Assets X Capital Charge) BVA = GCF – (GOA x 10.5%1) Bristow Value Added calculation for Q2 FY17 $(17.4) = $82.1 – ($3,788* x 2.625%1) Bristow Value Added calculation for Q2 F
Slide 40: Líder Bristow Value Added (BVA) sample calculation
Líder Bristow Value Added (BVA) Sample calculation for Q2 FY17 and Q2 FY16 Bristow Value Added = Gross Cash Flow – (Gross Operating Assets X Capital Charge) BVA = GCF – (GOA x 10.5%1) Bristow Value Added calculation for Q2 FY17 $0.7 = $5.2 – ($171* x 2.625%1) Bristow Value Added calculation for Q2 F
Slide 41: Líder's adjusted EBITDAR reconciliation
Líder's adjusted EBITDAR reconciliation Adjusted EBITDAR excludes special items and asset dispositions
Slide 42: Líder leverage
Líder leverage Adjusted EBITDAR excludes special items and asset dispositions
Slide 43: Bank financial covenants
Bank financial covenants s inn a September 30,2016 $ in millions September 30, 2016 $322 ‘$526 Total covenant debt TTM Adj EBITDAR Non-cash stock comp expense Cash proceeds from assets sales (max: $20M) Non-cash FX impact, Other adjustm« Total omen asses 6 200 Less: assi (40) 233 Revolver avai vali
Slide 44: Total leverage reconciliation
1) Adjusted EBITDAR excludes gains and losses on dispositions of assets Total leverage reconciliation
Slide 45: Bristow Group Inc. contact us
Bristow Group Inc. (NYSE: BRS) 2103 City West Blvd., 4th Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com Contact us