Bristow Group, Inc. · NYSE:VTOL
Bristow — Era Group — Q4 2014 and FY2014 Earnings Presentation
32 slides from Bristow's earnings presentation, Mar 11, 2015
Slide 1: Q4 and FY2014 Earnings Presentation
Q4 and FY2014 Earnings Presentation 0March 11, 2015 Exhibit 99.2
Slide 2: Q4 and FY2014 Earnings Call Agenda
I. Introduction Harmony Packard, Corporate Communications II. Operational Highlights Chris Bradshaw, CEO and CFO III. Financial Review Chris Bradshaw, CEO and CFO IV. Questions & Answers Q4 and FY2014 Earnings Call Agenda 1
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, interest expense and interest expense on advances from SEACOR), Taxes, Depreciation and Amortization. Adju
Slide 5: Operational Highlights
Lora Operational Highlights
Slide 6: HeliOffshore and Safety Update
5 HeliOffshore and Safety Update • In October 2014, together with four other major helicopter operators, we officially launched the new industry association HeliOffshore ̶ HeliOffshore intends to use cross-industry cooperation as a platform for enhancing the industry’s overall strong safety record b
Slide 7: Fiscal Year 2014 Highlights
$76,963 $84,674 – $50,000 $100,000 $150,000 $200,000 FY 2013 FY 2014 6 Fiscal Year 2014 Highlights Revenues ($000s) Adjusted EBITDA ($000s) Adjusted EBITDA (excl. gains) ($000s) • Record revenues ̶ Strong results from our U.S. Gulf of Mexico operations primarily due to our EC225 heavy helicopters op
Slide 8: Q4 2014 Highlights
$75,998 $74,689 $90,510 $74,689 – $25,000 $50,000 $75,000 $100,000 $125,000 Q4 2013 Q4 2014 Q3 2014 Q4 2014 7 Q4 2014 Highlights Revenues ($000s) Adjusted EBITDA (excl. gains) ($000s) Flight Hours • Revenues of $74.7mm ̶ $1.3mm lower than Q4 2013 due to conclusion of contracts in international oil &
Slide 9: Oil & Gas – Gulf of Mexico
10,304 8,514 10,594 8,514 0 5,000 10,000 15,000 Q4 2013 Q4 2014 Q3 2014 Q4 2014 8 Oil & Gas – Gulf of Mexico Revenues ($000s) Flight Hours 20% • Year-over-year revenues up modestly despite decline in total flight hours ̶ Primarily due to increased utilization of heavy helicopters • Sequential quarte
Slide 10: Oil & Gas – Alaska
$6,885 $6,496 $7,984 $6,496 – $2,000 $4,000 $6,000 $8,000 $10,000 Q4 2013 Q4 2014 Q3 2014 Q4 2014 895 560 939 560 0 500 1,000 1,500 Q4 2013 Q4 2014 Q3 2014 Q4 2014 9 Oil & Gas – Alaska Revenues ($000s) Flight Hours 40% 6% 19% 37% • Decline in revenues compared to the prior year quarter primarily due
Slide 11: Oil & Gas – International
10 Oil & Gas – International Revenues ($000s) • Year-over-year and sequential quarter revenues decreased due to conclusion of an international contract $1,228 $183 $1,514 $183 – $1,000 $2,000 Q4 2013 Q4 2014 Q3 2014 Q4 2014 85% 88%
Slide 12: Dry-Leasing
$11,566 $11,911 $12,392 $11,911 – $5,000 $10,000 $15,000 $20,000 $25,000 Q4 2013 Q4 2014 Q3 2014 Q4 2014 11 Dry-Leasing Revenues ($000s) 3% • Revenues relatively consistent due to decreased cash collections from Aeróleo offset by increased cash collections from a customer in India ̶ Aeróleo cash col
Slide 13: Search and Rescue
$5,417 $5,650 $5,666 $5,650 – $2,500 $5,000 $7,500 $10,000 Q4 2013 Q4 2014 Q3 2014 Q4 2014 305 355 348 355 0 250 500 750 1,000 Q4 2013 Q4 2014 Q3 2014 Q4 2014 12 Search and Rescue Revenues ($000s) Flight Hours 4% 16% 2% • Increase in revenues over the prior year quarter due to higher subscription ra
Slide 14: Air Medical
$3,135 $2,301 $2,569 $2,301 – $1,000 $2,000 $3,000 $4,000 $5,000 Q4 2013 Q4 2014 Q3 2014 Q4 2014 1,059 831 1,239 831 0 500 1,000 1,500 Q4 2013 Q4 2014 Q3 2014 Q4 2014 13 • Decline in revenues primarily due to the conclusion of a contract • Currently operate three contracts with a mix of helicopters
Slide 15: FBO Revenues
$2,434 $2,403 $3,562 $2,403 – $2,500 $5,000 $7,500 $10,000 Q4 2013 Q4 2014 Q3 2014 Q4 2014 14 • Decline in revenues primarily due to decreased fuel sales • Era operates a fixed based operation (“FBO”) at Ted Stevens Anchorage International Airport that sells fuel on an ad-hoc basis and leases hangar
Slide 16: Brazil Update: Aeroleo Fleet Plan
15 Aeroleo Fleet Plan Rio de Janeiro • By the end of March, Aeroleo’s existing helicopters are expected to be fully utilized for the first time • Aeroleo was the low bidder on multiple lots in Petrobras’ recent tender for heavy and medium helicopters ̶ 4 x EC225 commencing July 2015 for 5 years ̶ 1
Slide 17: Helicopter Order and Options Book
16 C u r r e n t O r d e r B o o k O p t i o n s Delivery Class Type Number Remaining Amount Firm Cancellable 2015 Heavy AW189 5 $42.1 $14.8 2015 Heavy S92 2 $11.7 – 2016 Heavy AW189 3 – $45.4 2016 Heavy S92 2 $45.3 – 2017 Heavy AW189 2 – $30.9 TBD Light Twin AW169 5 – $38.3 19 $99.1 $129.4 Note: Ca
Slide 18: Houma Base Expansion
17 Houma Base Expansion • Houma, LA base expansion project progressing ̶ When completed, it will be the premier helicopter operating facility in the Gulf Coast area • Expected total cost of $22mm ̶ $16mm incurred to date (customers funding portion of capital cost) • Strategic benefits ̶ Customer sus
Slide 19: Financial Review
18 Financial Review
Slide 20: FY Period Over Period Comparison
19 FY Period Over Period Comparison Twelve Months Ended December 31, 2014 2013 $ Change % Variance ($000s) Operating revenues 331,222$ 298,959$ 32,263$ 11% Operating expenses 204,373 186,612 17,761 (10%) G&A expenses 43,987 38,924 5,063 (13%) Depreciation 46,312 45,561 751 (2%) Gains on asset dispos
Slide 21: Q4 2014 vs Q4 2013 Comparison
Three Months Ended December 31, 2014 2013 $ Change % Variance ($000s) Operating revenues 74,689$ 75,998$ (1,309)$ (2%) Operating expenses 45,772 45,213 559 (1%) G&A expenses 9,647 10,562 (915) 9% Depreciation 11,854 11,129 725 (7%) Gains on asset dispositions 29 464 (435) (94%) Operating income 7,44
Slide 22: Q4 2014 vs Q3 2014 Comparison
Three Months Ended 31‐Dec 30‐Sep $ Change % Variance ($000s) Operating revenues 74,689$ 90,510$ (15,821)$ (17%) Operating expenses 45,772 54,282 (8,510) 16% G&A expenses 9,647 12,941 (3,294) 25% Depreciation 11,854 11,746 108 (1%) Gains on asset dispositions 29 42 (13) (31%) Operating income 7,445 1
Slide 23: Healthy Leverage Metrics and Ample Liquidity
22 Leverage Metrics Total Liquidity (US$mm)(a) Healthy Leverage Metrics and Ample Liquidity to Pursue Opportunities Note: As reported GAAP basis (a) At period end $149 $164 $176 $136 $244 $244 $244 $214 $25 $28 $32 $31 $25 $15 $40 $41 $174 $193 $209 $167 $270 $259 $285 $255 – $50 $100 $150 $200 $250
Slide 24: Appendix
23 Appendix
Slide 25: Fleet Overview
24 Owned Joint Ventured Leased-In Managed Total Average Age(a) Heavy: EC225 9 – – – 9 5 Total Heavy 9 – – – 9 Medium: AW139 38 1 – – 39 5 B212 9 – – – 9 36 B412 6 – – – 6 33 S76 A/A++ 2 – – – 2 25 S76 C+/C++ 5 – – 1 6 8 Total Medium 60 1 – 1 62 Light – twin engine: A109 7 – – 2 9 9 BK-117 – – 2 1 3
Slide 26: Capitalization
December 31, 2014 ($000s) Cash and cash equivalents $40,867 Credit facility $85,000 Promissory notes 27,426 Total secured debt $112,426 7.750% Senior Notes $200,000 Total debt $312,426 Net debt $271,559 Shareholders' Equity $460,364 Total capitalization $772,790 Total Debt / Adjusted EBITDA 3.4x Adj
Slide 27: Net Asset Value
26 Net Asset Value Notes: 1) Chart above reflects FMV deprecation of all existing helicopter values at 1% per quarter for NAV calculation purposes, consistent with our depreciation policy, for quarters between annual 3rd party appraisals, which we typically receive at the end of each of year (see ne
Slide 28: NAV per Share Calculation
27 Notes: 1) NAV calculation only includes fair market value of helicopters that we own; it does not include any value for leased-in or managed helicopters that we operate 2) Helicopter fair market values based on annual desktop appraisal performed by Ascend Worldwide; new helicopters delivered subs
Slide 29: Operating Revenues and Flight Hours by Line of Service
28 Operating Revenues and Flight Hours by Line of Service Three Months Ended Revenue ($000s) 31-Dec-14 30-Sep-14 30-Jun-14 31-Mar-14 31-Dec-13 Oil and gas:(a) U.S. Gulf of Mexico $45,837 $52,870 $51,715 $49,141 $45,435 Alaska 6,496 7,984 9,305 6,197 6,885 International 183 1,514 173 1,245 1,228 Tota
Slide 30: Financial Highlights
29 (a) See next page for Adjusted EBITDA reconciliation to Net Income (Loss) Financial Highlights Fiscal Year ($ millions) 2010 2011 2012 2013 2014 Revenue 235.4$ 258.1$ 272.9$ 299.0$ 331.2$ Operating Expenses 147.2 162.7 167.2 186.6 204.4 G&A 25.8 31.9 34.8 38.9 44.0 Depreciation 43.4 42.6 42.5 45.
Slide 31: Adjusted EBITDA notes
• Historically, SEACOR charged its corporate costs and overhead charges to all of its operating divisions − These charges have been excluded from Adjusted EBITDA to more accurately reflect Era’s historical results if we had not been a SEACOR subsidiary • Effective as of the spin-off, Era pays SEACOR
Slide 32: Quarterly Reconciliation of Non-GAAP Financial Measures
Quarterly Historical EBITDA and Adjusted EBITDA Three Months Ended (USD$ in thousands) 31-Dec-13 31-Mar-14 30-Jun-14 30-Sep-14 31-Dec-14 Net Income (Loss) 1,677 4,374 5,196 4,311 3,140 Depreciation 11,129 11,287 11,425 11,746 11,854 Interest Income (139) (145) (143) (130) (122) Interest Expense 4,31