Bristow Group, Inc. · NYSE:VTOL

Bristow — Era Group — FY2016 Earnings Presentation

19 slides from Bristow's earnings presentation, Mar 16, 2017

  1. Slide 1: Q4 and FY2016 Earnings Presentation

    Q4 and FY2016 Earnings Presentation 0March 16, 2017

  2. Slide 2: Q4 and FY2016 Earnings Call Agenda

    I. Introduction Shefali Shah, SVP and General Counsel II. Operational Highlights Chris Bradshaw, President and CEO III. Financial Review Andy Puhala, SVP and CFO IV. Concluding Remarks Chris Bradshaw, President and CEO V. Questions & Answers Q4 and FY2016 Earnings Call Agenda 1

  3. Slide 3: Cautionary Statement Regarding Forward-Looking Statements

    2 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

  4. 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 and interest expense), Taxes, Depreciation and Amortization. Adjusted EBITDA is defined as EBITDA further a

  5. Slide 5: Operational Highlights

    4 Operational Highlights

  6. Slide 6: Safety and H225 Helicopter Update

    • Safety is Era’s most important core value and highest operational priority • Following a fatal accident in April 2016 involving an Airbus Helicopters H225 (also known as a EC225LP) model helicopter operated by another helicopter company, the European Aviation Safety Agency issued an Airworthiness

  7. Slide 7: Financial Stability

    • Despite the very challenging industry conditions, Era continued to generate positive cash flow, including $12 million of cash flow from operations in Q4 2016, raising its full year 2016 total to approximately $59 million Cash Flow from Operating Activities ($mm) • During 2016, Era disposed of two

  8. Slide 8: Financial Review

    7 Financial Review

  9. Slide 9: FY2016 Highlights

    • Revenues of $247.2mm ̶ $34.6mm lower than 2015 primarily due to: ̶ lower utilization and lower average rates in the oil and gas service line; ̶ the end of certain dry-leasing contracts; and ̶ the sale of the FBO in Alaska ̶ Partially offset by increased revenues resulting from the consolidation of

  10. Slide 10: Q4 2016 Highlights

    • Revenues of $56.3mm ̶ $17.7mm lower than Q4 2015 primarily due to lower utilization and lower average rates in oil and gas, the end of certain dry-leasing contracts and fewer search and rescue subscribers ̶ Partially offset by increased revenues resulting from new contracts in Suriname • Operating

  11. Slide 11: Q4 2016 Highlights – Sequential

    • Revenues were $8.7mm lower than Q3 2016 primarily due to the end of seasonal activities in Alaska and lower utilization in oil and gas, partially offset by higher revenues from dry-leasing activities • Operating expenses down $2.6mm primarily due to lower personnel, fuel and other expenses, partia

  12. Slide 12: Impact of Aeróleo Consolidation

    11 • Prior to October 2015, revenues from Aeróleo were only recognized when Era received cash from Aeróleo and were reported in Era’s Dry-leasing line of service ̶ Aeróleo’s operating expenses and G&A expenses were not reported in Era’s financials ̶ Era’s costs to maintain the helicopters in Brazil

  13. Slide 13: Appendix

    12 Appendix

  14. Slide 14: Fleet Overview

    13 Owned(a) Leased-In Managed Total Average Age(b) Heavy: H225 9 – – 9 7 S92 2 – – 2 1 AW189 2 – – 2 1 Total Heavy 13 – – 13 Medium: AW139 36 – – 36 7 S76 C+/C++ 5 – 1 6 10 B212 7 – – 7 37 Total Medium 48 – 1 49 Light – twin engine: A109 7 – – 7 11 EC135 13 2 1 16 8 EC145 3 – 2 5 8 BK-117 – 2 – 2 N/

  15. Slide 15: Healthy Leverage Metrics and Liquidity

    14 • Era continues to generate substantial cash flow and reduced total debt and net debt by $39mm and $55mm, respectively, in FY2016 • In October 2016, Era amended its revolving credit facility to ensure access to liquidity through the downturn • Non-cancelable capital commitments can be funded via

  16. Slide 16: Operating Revenues and Flight Hours by Line of Service

    15 Operating Revenues and Flight Hours by Line of Service Note: Flight hours exclude hours flown by helicopters in the Dry-leasing line of service (a) Primarily oil and gas services, but also includes revenues and flight hours from utility services such as firefighting Revenue ($000s) 31-Dec-16 30-S

  17. Slide 17: Financial Highlights

    16(a) Adjusted EBITDA is a non-GAAP measure. See next page for Adjusted EBITDA reconciliation to Net Income (Loss) Financial Highlights Fiscal Year ($ millions) 2012 2013 2014 2015 2016 Revenue 272.9$ 299.0$ 331.2$ 281.8$ 247.2$ Operating Expenses 167.2 186.6 204.4 171.5 169.9 G&A 34.8 38.9 44.0 42.

  18. Slide 18: Adjusted EBITDA Special Items

    • Adjusted EBITDA reflects special items: – Executive severance adjustments of $0.7 million and $2.5 million in 2012 and 2014, respectively – An adjustment for IPO-related fees and expenses of $2.9 million in 2012 – A pre-tax impairment of $5.9 million related to the Company’s investment in Aeróleo

  19. Slide 19: Quarterly Reconciliation of Non-GAAP Financial Measures

    18 Quarterly Reconciliation of Non-GAAP Financial Measures Three Months Ended (US$ in thousands) 31-Dec-15 31-Mar-16 30-Jun-16 30-Sep-16 31-Dec-16 Net Loss (3,620)$ (3,950)$ (4,510)$ (802)$ (5,648)$ Depreciation 12,151 12,766 12,691 12,519 11,339 Interest Income (391) (301) (403) (466) 429 Interest

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