Bristow Group, Inc. · NYSE:VTOL
Bristow — Q3 FY2017 Earnings Presentation
46 slides from Bristow's earnings presentation, Feb 3, 2017
Slide 1: Third quarter FY17 earnings presentation
Third quarter FY17 earnings presentation Bristow Group Inc. February 3, 2017 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: Q3 FY17 operational safety review
Q3 FY17 operational safety review AAR prior to FY16 includes commercial helicopter operations for Bristow Group and consolidated affiliates. AAR beginning in FY16 includes all Category A and B accidents for consolidated Bristow operations, including Airnorth, Bristow Academy and Eastern Airways. FY1
Slide 5: Overview
Overview The December 2016 quarter results reflect the continued pressure on our oil and gas operations due to the industry downturn; however, they were above our internal expectations Improving our liquidity runway by $630 million through: Funding of $200 million Lombard seven-year equipment financ
Slide 6: Liquidity runway including $630 million equipment financings improves financial flexibility
Liquidity runway including $630 million equipment financings significantly improves our financial flexibility in this downturn We expect new leased aircraft will offset rent savings from returned aircraft in the short term as we manage fleet operations We continue to reduce incremental lease costs F
Slide 7: Cash flow and liquidity
Cash flow and liquidity $ in millions Net cash provided by operating activities1 Total liquidity2 $ in millions See 10-Q for more information on cash flow provided by operating activities At period end Announced/closed but unfunded financings plus reported liquidity as of December 31, 2016 ($90M Lom
Slide 8: Updated guidance as of December 31, 2016
Updated guidance as of December 31, 2016 FY17 guidance assumes FX rates as of December 31, 2016 EBITDA excludes corporate overhead allocations consistent with financial reporting. EBITDA is a non-GAAP measure of which the most comparable GAAP measure is net income (loss). We have not provided a reco
Slide 9: Bristow continues to execute successfully to maintain leadership position during this downturn
Bristow continues to execute successfully to maintain leadership position during this downturn Primary focus remains on continuing to improve upon our safety performance Like our offshore services peers, we expect offshore E&P spend to be down again in FY18; we remain laser focused on improving our
Slide 10: Operational highlights
Operational highlights
Slide 11: Q3 FY17 results
Q3 FY17 results Adjusted EBITDA1 $ in millions Operating revenue $ in millions Net income (loss) Adjusted net income (loss) 1) Adjusted EBITDA and adjusted net income (loss) excludes gains (losses) on asset dispositions and special items.
Slide 12: Europe Caspian
Europe Caspian United Kingdom Norway Turkmenistan Operating revenue $ in millions Falkland Islands Adjusted EBITDA $ in millions Adjusted EBITDA excludes gains (losses) on asset dispositions and special items.
Slide 13: U.K. SAR
U.K. SAR 1) LACE count based on aircraft types specified in original contract
Slide 14: Africa
Africa Nigeria Egypt $ in millions Operating revenue Adjusted EBITDA $ in millions Adjusted EBITDA excludes gains (losses) on asset dispositions and special items.
Slide 15: Americas
Americas United States Canada Brazil Trinidad Operating revenue $ in millions Guyana Adjusted EBITDA $ in millions Adjusted EBITDA excludes gains (losses) on asset dispositions and special items.
Slide 16: Líder update
Líder update Líder adjusted EBITDA1 1) Reconciliation of adjusted EBITDA, leverage and BVA provided in the appendix
Slide 17: Asia Pacific
Asia Pacific Russia Australia Malaysia Operating revenue $ in millions Adjusted EBITDA $ in millions Adjusted EBITDA excludes gains (losses) on asset dispositions and special items.
Slide 18: Appendix
Appendix
Slide 19: Financing update
Financing update Executed credit agreement $200 million equipment financing secured by 20 oil and gas aircraft Lease five oil and gas aircraft as part of overall financing and to manage fleet operations Five-year borrowing at Libor + 5.35% Fully funded $200 million secured aircraft equipment financi
Slide 20: Organizational chart as of December 31, 2016
Organizational chart as of December 31, 2016 Business Unit (% of current period operating revenue) Corporate Region ( # of helicopters / # of fixed wing ) Joint Venture (# of aircraft) Key Operated Aircraft Bristow owned and/or operated 345 aircraft Affiliated Aircraft Bristow affiliates and joint v
Slide 21: Fleet as of December 31, 2016
Next Generation Aircraft Mature Aircraft Fair market value of our owned fleet is ~$2.1 billion and leased fleet is ~$1.9 billion Medium capacity 12-15 passengers Large capacity 16-25 passengers Fleet as of December 31, 2016
Slide 22: Fleet as of December 31, 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 December 31, 2016 (continued)
Slide 23: Leased aircraft detail as of December 31, 2016
Of the 117 aircraft currently leased in our fleet, 81 are commercial (68 LACE), 17 are training and 19 are fixed wing 68 LACE aircraft represent approximately 40% 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. Consolidated fleet changes and aircraft sales
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 assets held for sale, Bristow Academy, Airnorth and Eastern Airways
Slide 27: Historical LACE by region
Historical LACE by region LACE FY13 FY14 FY15 a a @ @ a @ a 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 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 «158 161 160 165 158 163 166 168 16
Slide 28: Historical LACE rate by region
Historical LACE rate by region $ in millions LACE rate calculated as YTD revenue annualized divided by period ending LACE count
Slide 29: Order and options book as of December 31, 2016
Order and options book as of December 31, 2016 Orders that can be cancelled prior to delivery date
Slide 30: Net asset FMV and book value per share
NOTE: The company derives market value from observable market data if available and may require utilization of estimates, applications of significant judgment and reliance upon valuation specialists’ and third party analysts’ reports. When using third party reports, the market value is as of the dat
Slide 31: Net asset FMV reconciliation
Net asset FMV reconciliation
Slide 32: Adjusted EBITDA margin trend by region
Adjusted EBITDA margin trend by region Adjusted EBITDA excludes special items and asset dispositions and margin is calculated by taking adjusted EBITDA divided by operating revenue
Slide 33: Historical U.K. SAR performance
Historical U.K. SAR performance GAP and U.K. SAR operating results are included within our Europe-Caspian region results. EBITDA excludes corporate overhead allocations consistent with financial reporting. EBITDA is a non-GAAP measure of which the most comparable GAAP measure is net income (loss). W
Slide 34: Historical fixed wing performance
Historical fixed wing performance Fixed wing operating results are included within their respective regional results. EBITDA excludes corporate overhead allocations consistent with financial reporting. EBITDA is a non-GAAP measure of which the most comparable GAAP measure is net income (loss). We ha
Slide 35: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation Adjusted EBITDA excludes special items and asset dispositions
Slide 36: Adjusted EBITDA regional reconciliation
Adjusted EBITDA regional reconciliation Adjusted EBITDA excludes special items and asset dispositions
Slide 37: Rent by region
Rent by region Adjusted EBITDA excludes special items and asset dispositions and margin is calculated by taking adjusted EBITDA divided by operating revenue
Slide 38: GAAP reconciliation
GAAP reconciliation See information about special items in 10-Q or earnings release for Q3 FY17 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: 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 40: Bristow Value Added (BVA) sample calculation
Bristow Value Added (BVA) Sample calculation for Q3 FY17 and Q3 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 Q3 FY17 $(14.2) = $85.6 – ($3,801* x 2.625%1) Bristow Value Added calculation for Q3 F
Slide 41: Líder Bristow Value Added (BVA) sample calculation
Líder Bristow Value Added (BVA) Sample calculation for Q3 FY17 and Q3 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 Q3 FY17 $2.3 = $7.1 – ($183* x 2.625%1) Bristow Value Added calculation for Q3 F
Slide 42: Líder's adjusted EBITDA reconciliation
Líder's adjusted EBITDA reconciliation Adjusted EBITDA excludes special items and asset dispositions
Slide 43: Líder leverage
Líder leverage Adjusted EBITDA excludes special items and asset dispositions
Slide 44: Bank financial covenants
Bank financial covena Senior secured leverage rati a in millions December 31,2016 $ in millions December 31, 2016 rm loan $315 Total current assets $502 tem loan credit facility 200 Less: assets HFS (38) evolving credit facility 190 Revolver availability less $25M_ 184 pitied PV of leases 555 Total
Slide 45: Total leverage reconciliation
Adjusted EBITDA excludes gains and losses on dispositions of assets Debt does not include unamortized debt issuance cost Total leverage reconciliation 2
Slide 46: Bristow Group Inc. contact us
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