Bristow Group, Inc. · NYSE:VTOL
Bristow — Q1 FY2017 Earnings Presentation
42 slides from Bristow's earnings presentation, Aug 5, 2016
Slide 1: First quarter FY17 earnings presentation
First quarter FY17 earnings presentation Bristow Group Inc. August 5, 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: Q1 FY17 operational safety review
Q1 FY17 operational safety review AAR includes commercial operations for Bristow Group and consolidated affiliates, Eastern Airways and Airnorth FY13 AAR of 0.96 amended to include confirmed NAIB accident classification for 5N-BFF accident in October 2012 TRIR beginning in FY15 includes consolidated
Slide 5: Market overview and outlook
Market overview and outlook Bristow operating revenue impacted by 27% drop in year over year oil and gas revenue; down 1% sequentially from Q4 Asia Pacific and U.S. GoM markets were challenged by reductions in utilization and completion of contracts Bristow is capitalizing on our global S-92 fleet t
Slide 6: FX headwinds intensify due to Brexit; minimal impact from Nigerian naira
FX headwinds intensify due to Brexit; minimal impact from Nigerian naira Brexit is not expected to have any operational impact on our North Sea business The depreciation of the GBP in late June had limited impact on our Q1 FY17 operating results as the change occurred late in the quarter If the USD/
Slide 7: Oil and gas rotary revenue declines partially offset by U.K. SAR and fixed wing
Oil and gas rotary revenue declines are partially offset by U.K. SAR and fixed wing contribution Oil and gas: Five LACE renewal for five years in ECR beginning Q1 FY18 1½ LACE for five years in ECR beginning Q3 FY17 Two LACE on short term contracts in Norway Ending of several contracts in AMR and AP
Slide 8: Anticipated deferral of ~$95 million of oil and gas aircraft capex
Anticipated deferral of ~$95 million of oil and gas aircraft capex into FY19 and beyond 30 64 Deferral out of FY17/FY18 and into future periods We are finalizing an over 40% reduction in aircraft capital expenditures in FY17 and FY18 We sold six aircraft and other assets for total proceeds of ~$12 m
Slide 9: Updated FY17 guidance
Updated FY17 guidance 1) FY17 guidance assumes FX rates as of June 30, 2016 2) EBITDAR excludes corporate overhead allocations and is consistent with financial reporting FY17 guidance as of June 30, 20161 U.K. SAR Revenue ~$195M - $225M G&A expense ~$195M - $215M EBITDAR2 ~$85M - $105M Depreciation
Slide 10: Bristow has proven resources to survive this downturn as a global sector leader
Bristow has proven resources to survive this downturn as a global sector leader Primary focus remains on reinforcing Target Zero programs and improving safety performance The P&L impact of the GBP depreciation will be realized in future periods if the USD/GBP rate remains at current levels or deprec
Slide 11: Operational highlights
Operational highlights
Slide 12: Q4 FY16 highlights
Q4 FY16 highlights Adjusted EBITDAR $ in millions Operating revenue $ in millions
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 AW189 full icing protection system certified by EASA in late June, allowing us to deliver the contracted solution of 11 S-92s and 11 AW189s Operating bases expected to transition to AW189s ~six months after aircraft delivery 1) LACE count based on aircraft types specified in original contra
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 EBITDAR Petrobras operation of H225 remains suspended Potential opportunities to extend current contracts due to H225 grounding Líder is the official ground handler provider for executive aviation in Rio de Janeiro during Olympics New FBO at Rio de Janeiro International A
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 June 30, 2016
Organizational chart - as of June 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 333 aircraft as of June 30, 2016 Affiliated Aircraft Bristow affiliates and joint vent
Slide 21: Fleet – as of June 30, 2016
Next Generation Aircraft Mature Aircraft Fair market value of our owned fleet is ~$2.0 billion and leased fleet is ~$1.7 billion Medium capacity 12-15 passengers Large capacity 16-25 passengers Fleet – as of June 30, 2016
Slide 22: Fleet – as of June 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 June 30, 2016 (continued)
Slide 23: Leased aircraft detail as of June 30, 2016
Of the 109 aircraft currently leased in our fleet, 75 are commercial (63 LACE), 18 are training and 16 are fixed wing 63 LACE aircraft represent approximately 39% 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 is annualized Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Europe Caspian $10.49 $10.94 $9.69 $9.10 $9.59 $9.92 $10.27 $10.82 $10.55 $9.74 $9.37 $8.95 Africa 11.54 11.70 13.06 13.28 14.26 13.95 13.25 13.34 14.10 14.11 15.86 15.81 Americas 6.10 6.38 5.82
Slide 29: Order and options book as of June 30, 2016
Order and options book as of June 30, 2016
Slide 30: 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 31: Fair market value of owned fleet
NOTE: The gray shaded area represents the range of FMV with and without the impact of leased aircraft (upper range includes leased aircraft and related NPV of lease payments; lower range excludes FMV of leased aircraft as well as the NPV of lease payments). The company derives market value from obse
Slide 32: Net asset FMV reconciliation as of June 30, 2016
Net asset FMV reconciliation as of June 30, 2016
Slide 33: 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 34: Adjusted EBITDAR reconciliation
Adjusted EBITDAR reconciliation Adjusted EBITDAR excludes special items and asset dispositions
Slide 35: Bristow Value Added (BVA) sample calculation
Bristow Value Added (BVA) Sample calculation for Q1 FY17 and Q1 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 Q1 FY17 $(10.2) = $88.8 – ($3,772* x 2.625%1) Bristow Value Added calculation for Q1 F
Slide 36: Líder Bristow Value Added (BVA) sample calculation
Líder Bristow Value Added (BVA) Sample calculation for Q1 FY17 and Q1 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 Q1 FY17 $0.9 = $6.1 – ($195* x 2.625%1) Bristow Value Added calculation for Q1 F
Slide 37: Líder's adjusted EBITDAR reconciliation
Líder's adjusted EBITDAR reconciliation Adjusted EBITDAR excludes special items and asset dispositions
Slide 38: GAAP reconciliation
GAAP reconciliation See information about special items in 10-K or earnings release for Q4 FY16 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 imp
Slide 39: Covenant calculations
Current rati $ in millions ‘June 30, 2016 $ in mil June 30, 2016 Term loan $329 Total current assets $604 Term loan credit facility 200 Less: assets HFS (41) Revolving credit facility 207 Revolver availabilty less $25M 167 Covenant PV of leases. 558 Total covenant current assets 3731 Letters of 1 To
Slide 40: Total leverage reconciliation
Adjusted EBITDAR excludes gains and losses on dispositions of assets Total leverage reconciliation
Slide 41: Líder leverage reconciliation
Líder leverage reconciliation
Slide 42: Bristow Group Inc. contact details
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