Bristow Group, Inc. · NYSE:VTOL
Bristow — Q3 FY2013 Earnings Presentation
41 slides from Bristow's earnings presentation, Feb 5, 2013
Slide 1: Third Quarter FY 2013 Earnings Presentation
Third Quarter Bristow FebruaryGroup 5, 2013 FY Inc.2013 Earnings Presentation
Slide 2: Earnings call agenda
Fourthremarks Introduction CEO Current Closing Questions 2 quarter and remarks and future Linda and answers earnings Bill operational financial McNeill, Chiles, call agenda performance Director President highlights Investor and Bill Jonathan CEOChiles, Relations Baliff, President SVP and and CEO CFO
Slide 3: Forward-looking statements
Forward-looking This future other and grounding assumptions presentation actual those year-ended any 3 our forward-looking presentation financial discussed results business, business, and March regarding toprojections; the under differ operations, statements may our effects 31,statements, general th
Slide 4: Chief Executive Officer comments
ChiefChiles, Bill 4 Executive President Officer andcomments CEO
Slide 5: Operational and commercial safety review
3 Operational Commercial 2 1 1.25 0.54 0 FY09 Total 0 0.32 0.53 safety Air Recordable FY10 0.53 FY11Accident review Injury FY12 Rate* Rate* FY13 per per YTD 100,000 200,000 Flight AHours man-hours (Fiscal Year) Lost 0.5 0.23 FY13 * 5 Work 0.21 YTD0.35 Case 0.31 Includes 0.16 Rate* 0.110.22 0.14per 0
Slide 6: Q3 highlights
•Q3 appendix ** *** 6 Adjusted YTD Q3 Continued Increasing Bristow FY13 Please operating GAAP adjusted cash consolidated hereto Highlights EPS see Value flow EPS and strong EPS* EBITDAR* our revenue and and narrowing from of Added earnings operating $1.00 adjusted of BVA** in operations $1.17 our of
Slide 7: Market outlook
•Market 7 The Brentnumber Offshore EC225 prices environment suspension production of aredeep expected of outlook water continues operations todrilling remain tofurther comprise rigs above and tightens $100 afloating large per theand production barrel supply/demand growingplatforms portion balance ou
Slide 8: EC225 update
EC225 •safety importantly, 8 We During Currently Bristow continue directives, Fleet an isno has October not react update increased the to client operating actively requiring financial quickly 2012 contracts utilization support ato flight strength operators total provide have to of the of an to 16 be
Slide 9: Europe outlook: FY13
Europe •Outlook: FY13 * 9 Adjusted Europe Operating Current Bristow adjusted (EBU) Operating represented restrictions isEBITDAR revenue oneEBITDAR ofrevenue the increased 37% on increased final EC225 of margin and bidders Bristow to adjusted continue to$124.4M expected $49.1M inoperating the EBITDAR
Slide 10: West Africa outlook: FY13
West increase •Outlook: FY13 * 10Adjusted A Nigeria Operating Local Opportunities new Africa adjusted content Operating entrant inrepresented EBITDAR salaries revenue (WASBU) EBITDAR becoming to starting add revenue and increased 23% increased more maintenance operations increasingly margin of and m
Slide 11: North America outlook: FY13
North •Outlook: FY13 * Adjusted NorthAmerica Operating Eight Clients Future adjusted aircraft America Operating growth continue EBITDAR revenue EBITDAR dry (NABU) opportunities represented to revenue leased increased shift more toward to margin and than Cougar 18% in 39.8% adjusted deep doubled medi
Slide 12: Australia outlook: FY13
Australia combined •Outlook: FY13 * 12Australia Adjusted Additional Three Operating Introduction adjusted EC225 Operating (AUSBU) effect EBITDAR represented revenue new of EBITDAR a/c of S-92 projects revenue were improved increased increased to12% affected the inmargin and of Northwest business rev
Slide 13: Other International outlook: FY13
Other •Outlook: FY13 * 13Adjusted As Other Operating Potential One Lider expected, AS332 International adjusted operates International Operating new EBITDAR revenue aircraft, Lider EBITDAR opportunities only revenue (OIBU) decreased is represented S92s previously stayed performing margin in andflat
Slide 14: Financial discussion
Financial Baliff, Jonathan 14 discussion SVP and CFO
Slide 15: Financial highlights Q3: adjusted EPS and EBITDAR bridge
Financial Adjusted $0.43 $0.07 $0.76 $1.17 $5.5 $29.8 Q3FY2012 $81.8 * and 15Adjusted in$3.1 $0.09 $109.2 ourEPS highlights earnings EPS to Q3FY2013 Operations and andEBITDAR release Q3: EBITDAR Corporate adjusted forSummary the amounts and quarter EPS EBITDAR Other bridge exclude ended FXbridge Cha
Slide 16: Financial highlights YTD: adjusted EPS and EBITDAR bridge
Financial Adjusted $0.15 $5.5 YTD * GAAP 16Adjusted $6.2 FY2012 $0.12 in EPS the highlights $57.3 EPS $0.87 appendix to Operations and $278.0 and YTD $2.77 EBITDAR YTD: EBITDAR FY2013 hereto $220.0 $1.93 Corporate and Summary adjusted amounts in and our EBITDAR EPS earnings Other exclude bridge FXga
Slide 17: Large Aircraft Equivalent (LACE) Rate
LACE Consolidated 300 350 256 268 200 F 0 50 100 170 7.15 7.89 8.49 160 6.49 6 17Y09 164 LACE* 150 153 154 140 149 FY09 ** YTD *See 295 250 149 10 46.14 8appendix reimbursable YTD02159 rate LACE290 154 LACE FY10 ($ continues FY13 in279 150 commerical FY11 Rate Rate revenue. millions) LACE hereto to
Slide 18: Bristow Value Added (BVA)
BVA •Year BVA* 13.6 20 10 5 18 1.1 ?Q1 * AUSBU YTD Q3 Positive Increase can 9.3 15 FY13 over –?Q1 FY13 Seven 5Bristow 10 15 15.4 FY12 1.9 be year-over-year year of and FY12 found 2.1 BVA 20Q2 ~$40M consolidated Quarters ValueNABU improvement –is Q3 millions in FY12 the positive Added0inin FY13 are G
Slide 19: Net cash provided by operating activities
Our Net 250 231 200 millions 128 150 151 in 1 $ 50 115 F 0 * 1963 Y09 194 104 cash YTD Full 195 progress FY10 See 100 fiscal provided (from 10-Q FY11 203 onyear Apr BVA for by FY12 1more operating yields to YTD Dec information stronger 31) FY13 activities* operating on cash cash flow flow provided g
Slide 20: Book value per share and net asset value
•Bristow’s 55.00 Dec?10 35.00 40.00 $44.06 45.00 50.00 $52.89 Book 20 As This Ourthe In shown net value $53.60 combination past Mar?11 asset creates previously, per twovalue share Jun?11 years, value of(NAV), NAV asset Bristow management through Sep?11 per growth primarily share has Dec?11 disciplin
Slide 21: Financial highlights: FY13 guidance
Financial LACE •Depreciation * 21EPS guidance Eighth Repurchased (Large Assuming consecutive highlights: expense AirCraft $1.2 range revenue million quarterly FY13 ~ ofEquivalent) $90—95M $3.60—$3.85, earned guidance of shares dividend in156—158 Interest same revised in excluding Q3 since regions FY
Slide 22: Long term adjusted EPS growth guidance
Financial •Long 3.9 3.3 9.7% 3.5 3.7 3.73 FY09 2.5 2.58 2.7 2.69 2.9 3.1 3.08 3.12 FY13 * regarding 22Today This Our Bristow’s This 5 Year CAGR term 5guidance FY10 range guidance year we highlights: earnings Historical adjusted historic are FY11 is historical above initiating represents FY12 guidanc
Slide 23: Conclusions
•Conclusions 23 We Safety Higher Prudent anticipate continues year-over-year balance continued sheet to be allows our EBITDAR improvement # 1us priority toand respond BVA as in revenue weto demonstrate strive andgeneration successfully to achieve the strength through Target manageZero of newthrough
Slide 24: Appendix
Appendix BEG ERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 25: Organizational chart as of December 31, 2012
Organizational Operated Bristow Key Business Joint 25 Corporate Venture owned Unit Aircraft (# (% Chart—as and/or ofAffiliated ofaircraft) FY13 operated ofOperating Aircraft December Bristow Revenue) 31, affiliates 2012Region and joint ( # of 356Aircraft aircraft/ #asofofLocations) December 31, vent
Slide 26: Aircraft fleet: large and medium
Type Aircraft Large AS332L AW189 EC225 Mil 91 LACE Medium AW139 Bell EC155 Sikorsky Next Mature Fair 26 7MI market 212 412 98 Generation No. capacity 89 25 13 Aircraft 827 16 12 Fleet Super capacity 12 13 S-61 S-92 S-76A/A++ S-76C/C++ S-76D 20 of Twin Twin value Twin PAX Twin –19 18 18-25 Puma Mediu
Slide 27: Aircraft fleet: small, training and fixed wing
Type Aircraft Small Twin 80 LACE Training Bell —12—Robinson 78 Next TOTAL * 27 12412 64206B Generation No. Turbine 92— 142— capacity Helicopters 20 LACE LACE Fleet Helicopters capacity 13 of4 Twin PAX Turbine 6–does 4-7 (Large 3Small, Aircraft R22 9— Turbine—8 Engine 2-6 passengers not 1passengers 2
Slide 28: Operating leased aircraft
Operating Leased Small EBU—10 WASBU—1—1 NABU AUSBU Total •OIBU———27— See 28 Of 10-Q 22 OurLACE the 3goal Medium 12 aircraft 161 2—3 11 Note lease 10 15 isaircraft 2for 10 30 14 56as Large strategy: 4commercial 51 122 “Commitments 8of 17 20 currently 39 represent 20% 154 December 21% 3% Total 20% 14%
Slide 29: Consolidated fleet changes Q1-Q3 FY13
Consolidated # Q1 Q2 Q3 Totals ** Held EBU—2 Total—15 OIBU—8—8 AUSBU—4—4 NABU—— Leased Small NABU WASBU—1—1 EBU—10—10 AUSBU Academy——31 OIBU——— Total See 29ofAmounts FY13 10-Q A/C for 3Medium 13 12 aircraft 1sale 2—3—5 Sold 211 $Note 515 42443.0 $17 16.5 7.5 2—14 stated aircraft 19.0 fleet 31 Receiv
Slide 30: Operating revenue and LACE rate by business unit
Operating Op EBU WASBU NABU AUSBU IBU Total 1) 2) 30 $revenue1 LACE in 97 373 965 millions 169 27 118 208 Rate 51 154 revenue, Revenue, 4.76 39 9.74 17 LACE 20 8.49 is 5.84 9.55 13.71 annualized LACE LACE, LACEand Rate2,3 and 3) LACE $LACE in millions Rate Ratebyper byBUBU LACE YTD FY13
Slide 31: Historical LACE and LACE rate by business unit
Historical LACE 2011 Q1 EBU WASBU NABU AUSBU OIBU Consolidated 1) 2) 31 $Q2 LACE in2012 42 $8.20 33 3.90 Rate1,2 millions Q3 39 5.40 43 20 6.80 24 9.70 Rate 33 LACE 35 Q4 2013 4.10 48 $8.50 23 24 6.10 33 157 6.70 34 6.00 9.40 Q1 46 is 24 21 384.40 29 annualized and 6.00 44 $7.90 158 Q2 20 22 6.90 6.
Slide 32: Aircraft order book and options
Order ORDER # Helicopter 4 2 1 3 2 Classand Delivery BOOK* options Large March Date book 2013 Location September as2013 of EBUDecember Contracted 4 of 4 1 31, NABU EBU WASBU IBU of 22012 1 3 2 1 Large December Large March March June 2014 June 2015 2014 September December 2015 2013 EBUEBU 2014 2014 E
Slide 33: Adjusted EBITDAR margin trend
Adjusted (fiscal 2010 2012 Q1 EBU WASBU NABU AUSBU OIBU Consolidated * 33Adjusted Q233.0% 2011 31.2% 2013 34.4% 48.1% year Q3 18.3% 14.3% 26.5% 20.2% 31.7% 29.5% EBITDAR Q4 EBITDAR ended) 31.7% 31.4% 37.6% 19.1% 24.7% 23.4% Full 20.0% 20.6% 36.7% 14.4% 36.8% 35.5% Year 31.9% 30.7% 25.9% 47.8% 27.8%
Slide 34: Adjusted EBITDAR reconciliation
Fiscal 3/31/2010 3/31/2012 ($ Net Income Interest Gain Depreciation Special EBITDA Rental Adjusted * 34 inincome millions) on year expense items Adjusted tax expense disposal Subtotal EBITDAR* EBITDAR 3/31/2011 3/31/2013 ended, expense $24.0 $21.2 and 2.5—2.4—1.2 0.0 Q1 7.0 9.0 10.0 9.0 of EBITDAR a
Slide 35: Sample Bristow Value Added calculation
Sample Bristow 2.625%** * 35 ** Reconciliation calculation Value ) Bristow Quarterly Added capitalfor Value (BVA) = for Q3 Gross charge these FY13 Added of Cash items and calculation 2.625%Flow Q3 follows is FY12 – (Gross basedfor right onQ3 Operating after FY12 annual this $1.1 slide Assets capital
Slide 36: Gross cash flow reconciliation
(in millions) Net Depreciation Interest Rent Other Gain/loss Special Tax Earnings Non?controlling Gross 36 Income Effect 18 Income/expense?net Operating Ca Cashflow Cash Items Expense Income 13 of (losses) Flow on from Flow Discontinued $36 Asset and ? (beforesh ?(0) Special ?Lider $26 Asset Interes
Slide 37: Gross operating assets reconciliation
Gross (in Total Accumulated Capitalized Cash Investment Goodwill Intangibles Assets Adj. Accounts Accrued Other Income Deferred ST LT Adjusted $3,269 37 millions) Deferred for Assets and Accrued Operating Held $2,892 Taxes gains Wages, Maintenance Revenue Gross Cash Payable (30) in (4) Operating for
Slide 38: GAAP to adjusted earnings reconciliation
GAAP Three December 2012 (In Operating Depreciation Rent Interest Provision Net Adjusted Gain Special Diluted (i) share 38 These thousands) income expense (loss) 2011 impact. Months reconciliation items expense earnings amounts operating EBITDAR net diluted for income 31, 2012 on $income attributabl
Slide 39: Adjusted leverage calculation
Leverage Debt (a) 39 (in As AdjustInvestment Unfunded NPV Letters Adjusted Calculation TTM FY = *Adjusted (d) (b) (e)$$Reconciliation millions) of 2013 /offor: of (c) Adjusted December Lease =EBITDAR*: credit 3.35:1 Pension(a) EBITDAR 377.4 1,262.7Capital +2013 (b) of Obligations debt 2.6 31, $ Leve
Slide 40: Net asset value per share comparison
Net Asset Dec 15.00 25.00 35.00 $44.06 45.00 $52.89 55.00 $53.60 65.00 Book 40 03value DecValue per 04 Dec share (NAV) 05NAV Dec Comparison: per 06 Dec share07Average 12/31/2003 Dec 08stock Decto09 price 12/31/2012 Dec 10 Dec 11 Dec 12
Slide 41: Contact Us
Contact Us Bristow 41 Group Inc. (NYSE: BRS) 2103 City West Blvd., 4th Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com