Bristow Group, Inc. · NYSE:VTOL
Bristow — Investor Presentation (July 2016)
27 slides from Bristow's investor presentation, Jul 12, 2016
Slide 1: Investor Presentation - London
1 Investor Presentation - London Bristow Group Inc. July 12, 2016
Slide 2: Forward-looking statements
2 Forward-looking statements Statements contained in this presentation that state 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 ea
Slide 3: Bristow company overview
3 • BRS stock price1 $11.41/share with a market cap ~$400 million • 343 aircraft (162 LACE)2 with ~4,800 employees3 • Major markets are Australia, Brazil, Canada, Nigeria, Norway, Trinidad, U.K., U.S. Gulf of Mexico • Our services are delivered in four regions: Europe Caspian (ECR) Africa (AFR)
Slide 4: Operational safety review
4 0.42 0.27 0.31 0.26 0.23 0.37 FY11 FY12 FY13 FY14 FY15 FY16 Q4 FY16 operational safety review 1) AAR includes commercial operations for Bristow Group and consolidated affiliates, Eastern Airways and Airnorth 2) FY13 AAR of 0.96 amended to include confirmed NAIB accident classification for 5N-BFF a
Slide 5: How does Brexit "leave" vote impact our business?
5 How does Brexit “leave” vote impact our business? • We conduct business in multiple currencies and strive to naturally hedge our currency exposure through client contracts when possible • In FY15 and FY16, a hypothetical 10% movement in USD/GBP foreign exchange rate would have affected our global
Slide 6: Successful diversification provides timely revenue
6 - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 FY14 FY15 FY16 U.K. SAR Fixed wing Oil and gas Successful diversification provides timely revenue and reduces the impact of the oil and gas downturn 96% 2% 88% 9% 3% Operating revenue by business line $ in mil lion s 2% 76% 13% 11% • Successful
Slide 7: U.K. SAR is a key element in our diversification strategy
7 • U.K. SAR contract is ~10 years in term with an option for a two-year extension by the U.K. government • Expected operating revenue and adjusted EBITDAR for the ~10 year contract term of $2.5 billion and $1.1 billion, respectively • Anticipated U.K. SAR EBITDAR margins in the mid-40% range • Rece
Slide 8: Cost reductions and decreased capex enhance operating cash flow and liquidity
8 267 232 253 116 0 50 100 150 200 250 300 FY13 FY14 FY15 FY16 Our focus on cost reductions and decreased capex enhances operating cash flow and liquidity 1) Adjusted EBITDAR amounts exclude gains and losses on dispositions of assets and any special items during the period 2) Liquidity is defined as
Slide 9: Improving liquidity through strong operating cash flow and lower capital spend
9 Improving liquidity through strong operating cash flow and lower capital spend Total liquidity $ i n m il li o n s $299 $360 • Cost reductions and capital efficiency initiatives improve liquidity as market remains difficult • Capital deferrals, dividend reduction and execution of three AW139 sale-
Slide 10: FY17 action plan
10 We are in control of our future with improvements to safety and financial strength underway • Continued cash flow optimization through capital deferral, prior dividend reduction, and working capital management • Execution of successful FY16 cost cutting initiatives that continue into FY17 to make
Slide 11: Investment thesis
11 Cash flow, asset values and mission critical nature underpin strong investment thesis • Leading global helicopter service provider to the offshore energy industry • Historical record of safe operations and renewed emphasis on safety culture • Focus on the production segment of the energy value ch
Slide 12: Appendix
12 Appendix
Slide 13: U.K. SAR - FY16
13 1) LACE count based on aircraft types specified in original contract U.K. SAR • Two additional bases began operating on contract in January 2016, bringing the total to nine of ten operational (including two GAP SAR bases) • Tenth and final base expected to begin operations in April 2017 • Final G
Slide 14: H225 Fleet Update
14 H225 Fleet Update • On Friday April 29, 2016, during a flight returning from an offshore platform in Norway, an accident occurred involving another operator’s H225LP resulting in 13 fatalities • Both the U.K. CAA and the Norway CAA issued safety directives requiring operators to suspend all opera
Slide 15: Significant investment in owned new technology aircraft
15 Significant investment in owned new technology aircraft and additional infrastructure1 • Significant investment to upgrade fleet and for U.K. SAR contract has substantially increased the fleet FMV Built for purpose new technology oil and gas aircraft position Company for harsh environment and d
Slide 16: Reduced projected capex
16 286 50 66 60 109 55 58 - 50 100 150 200 250 300 350 FY16A FY17E FY18E FY19E FY20E+ $ in mi llio ns U.K. SAR Oil and gas aircraft Bristow has meaningfully reduced projected capex to enhance financial flexibility Non-SAR aircraft capex is primarily dedicated to 17 H175 aircraft to be delivered in F
Slide 17: Bank financial covenants
17 Bank financial covenants $ in millions March 31, 2016 Term loan $336 Term loan credit facility 200 Revolving credit facility 144 Covenant PV of leases 604 Letters of credit (secured) 1 Total covenant debt $1,285 TTM Adj EBITDAR $417 Non-cash stock comp expense 21 Cash proceeds from assets sales (
Slide 18: Flexibility to reduce fixed lease costs
18 Bristow has the flexibility to reduce our fixed lease costs in future years without interrupting operations or current revenue • Modern fleet (average age ~8 years) of 162 LACE aircraft requires limited ongoing renewal capital investment • Our mix of owned and leased aircraft gives us the option
Slide 19: Operating revenue, LACE and LACE rate by region
19 FY16 op revenue1 LACE LACE Rate2,3,4 Europe Caspian $699 76 $9.26 Africa 249 19 12.95 Americas 282 40 7.02 Asia Pacific 197 27 7.30 Total $1,434 162 $8.85 as of March 31, 2016 Operating revenue, LACE, and LACE rate by region Operating revenue, LACE and LACE rate by region 4 1) $ in millions 2) LA
Slide 20: Historical LACE by region
20 Historical LACE by region Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 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 Americas 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 147 142 154 158 161 160 165 158 16
Slide 21: Historical LACE rate by region
21 Historical LACE rate by region 1) $ in millions 2) 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 $8.95 Africa 11.54 11.70 13.06 13.28 14.26 13.95 13.25 13.34 14.10 14.11 15.86 15.81 Americas 6.10 6
Slide 22: Order and options book as of March 31, 2016
22 Order and options book as of March 31, 2016 # Helicopter Class Delivery Date Location 2 Large June-16 Europe Caspian 2 Large September-16 Europe Caspian 2 Large September-17 Europe Caspian 2 Large March-18 Europe Caspian 8 U.K. SAR CONFIGURED ORDER BOOK # Helicopter Class Delivery Date Location 6
Slide 23: Adjusted EBITDAR margin trend by region
23 Adjusted EBITDAR margin trend by region Adjusted EBITDAR excludes special items and asset dispositions and margin is calculated by taking adjusted EBITDAR divided by operating revenue Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Europe Caspian 32.0% 34.4% 39.2% 35.8% 35.4% 30.4% 35.3% 35.6% 37.8%
Slide 24: Adjusted EBITDAR reconciliation
24 Adjusted EBITDAR reconciliation Adjusted EBITDAR excludes special items and asset dispositions ($ in millions) Q1 Q2 Q3 Q4 FY13 Q1 Q2 Q3 Q4 FY14 Net income 24$ 30$ 37$ 40$ 132$ 27$ 110$ 19$ 32$ 188$ Income tax expense 6 8 8 13 35 8 41 3 6 57 Interest expense 9 9 15 10 42 20 9 7 8 45 Gain on dispo
Slide 25: GAAP reconciliation
25 GAAP reconciliation 1) See information about special items in the earnings release for Q4 FY16 2) 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 shar
Slide 26: Total leverage reconciliation
26 Adjusted EBITDAR excludes gains and losses on dispositions of assets Total leverage reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of March 31, 2016 1,140.9$ 1,503.3$ 2,644.2$ 43.1% Adjust for: Unfunded pension liability 70.1 70.1 NPV of lease o
Slide 27: Contact us
27 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