Bristow Group, Inc. · NYSE:VTOL
Bristow — Era Group — Q1 2020 Earnings Presentation
17 slides from Bristow's earnings presentation, May 5, 2020
Slide 1: Q1 2020 Earnings Presentation
Exhibit 99.2 Q1 2020 Earnings Presentation May 6, 2020
Slide 2: Q1 2020 Earnings Call Agenda
Q1 2020 Earnings Call Agenda I. Introduction Tomas Johnston, Assistant General Counsel II. Operational Highlights Chris Bradshaw, President and CEO III. Financial Review Jennifer Whalen, SVP and CFO IV. Concluding Remarks Chris Bradshaw, President and CEO V. Questions & Answers 2
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements 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 te
Slide 4: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation 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 and interest expense), Taxes, Depreciation and Amortization. Adjus
Slide 5: Disclosure Regarding the Merger
Disclosure Regarding the Merger Additional Information and Where to Find It In connection with the proposed merger with Bristow Group Inc. (“Bristow”), on April 3, 2020, Era filed with the SEC a preliminary registration statement on Form S-4, as amended by Amendment No. 1 thereto filed on April 23,
Slide 6: Safety Update
Safety Update • Safety is Era's most important core value and highest operational priority • Era achieved its dual goals of ZERO air accidents and ZERO recordable workplace incidents YTD 2020 – ZERO air accidents in trailing four year period – Over 950 consecutive days without a recordable workplace
Slide 7: Strong Balance Sheet, Financial Flexibility and Capital Allocation Update
Strong Balance Sheet, Financial Flexibility and Capital Allocation Update • Total available liquidity as of March 31, 2020 was approximately $238 million – $114 million in cash balances – $124 million of remaining availability under the Company’s credit facility • Net debt of $48 million as of March
Slide 8: Q1 2020 Highlights – Sequential Quarter Comparison
Q1 2020 Highlights – Sequential Quarter Comparison • Revenues were $3.3 million lower than Q4 2019 Revenues ($000s) – Due to the end of contracts in emergency response and dry-leasing services and lower revenues from oil and gas services $75,000 60,377 57,056 • Operating expenses were $1.0 million l
Slide 9: Q1 2020 Highlights – Calendar Quarter Comparison
Q1 2020 Highlights – Calendar Quarter Comparison • Revenues were $5.8 million higher than Q1 2019 Revenues ($000s) – Primarily due to higher utilization in U.S. oil and gas operations and the commencement of a new $75,000 emergency response services contract 57,056 • Operating expenses were $1.8 mil
Slide 10: Appendix
Appendix
Slide 11: Fleet Overview
Fleet Overview Average Helicopters Age Heavy: S92 4 4 H225 1 12 AW189 4 4 Total Heavy 9 Medium: AW139 36 10 S76 C+/C++ 5 13 B212 3 38 Total Medium 44 Light – twin engine: A109 6 13 EC135 10 10 BO-105 3 31 Total Light – twin engine 19 Light – single engine: A119 13 13 AS350 17 22 Total Light – single
Slide 12: Healthy Leverage Metrics and Liquidity
Healthy Leverage Metrics and Liquidity March 31, 2020 ($000s) • As of March 31, 2020, Era had $114 million in cash balances and $124 million of remaining Cash and cash equivalents $ 113,518 availability under the credit facility for total liquidity of approximately $238 million Credit facility $ — –
Slide 13: Operating Revenues and Flight Hours by Line of Service
Operating Revenues and Flight Hours by Line of Service Three Months Ended Revenue ($000s) 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 (a) Oil and gas: U.S. $ 32,466 $ 33,270 $ 36,226 $ 37,462 $ 37,054 International 13,616 14,499 14,740 13,655 13,281 Total oil and gas $ 46,082 $ 47,769 $ 50,966
Slide 14: Quarterly Reconciliation of Non-GAAP Financial Measures
Quarterly Reconciliation of Non-GAAP Financial Measures Quarterly Historical EBITDA and Adjusted EBITDA ($ thousands) 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 Net income (loss) $ (6,085) $ 4,874 $ (2,059) $ (811) $ (7,289) Depreciation 9,450 9,520 9,312 9,337 9,507 Interest income (752) (93
Slide 15: Historical Financial Highlights
Historical Financial Highlights Fiscal Year 3 Mos. Ended Mar 31, ($ millions) 2015 2016 2017 2018 2019 2019 2020 Revenue $ 281.8 $ 247.2 $ 231.3 $ 221.7 $ 226.1 $ 51.3 $ 57.1 Operating expenses 171.5 169.9 167.4 151.5 154.5 36.7 38.5 G&A 42.8 36.2 42.1 45.1 38.3 8.9 12.7 Depreciation 47.3 49.3 45.7
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures • Adjusted EBITDA reflects special items: – Executive severance adjustments of $0.6 million in 2017 – A pre-tax gain of $12.9 million on the sale of the Company’s FBO in Alaska in 2015 – A pre-tax charge of $1.9 million on the impairment of goodwill in 2
Slide 17: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow ($ thousands) 2015 2016 2017 2018 2019 LTM Net cash provided by operating activities $ 44,456 $ 58,504 $ 20,096 $ 54,354 $ 27,553 $ 22,786 Plus: Proceeds from disposition of property and equipment 25,328 28,609 9,392 29,590 13,252 13,252 Less: Purchases of property a