Skip to main content Q1 FY 2016 Earnings Call – Bristow Group Investor Presentation | Shale Experts
Loading...
Pm

Q1 FY 2016 Earnings Call – Bristow Group

Bristow Group · Aug 7, 2015 · 47 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q1 FY 2016 Earnings Call – Bristow Group – slide 1
    First quarter FY16 earnings presentation Bristow Group Inc. August 7, 2015
  2. Q1 FY 2016 Earnings Call – Bristow Group – slide 2
    First quarter FY16 earnings call agenda Introduction Linda McNeill, Director Investor Relations CEO remarks and safety review Jonathan Baliff, President and CEO Operational highlights Jeremy Akel, SVP and COO Current and future…
  3. Q1 FY 2016 Earnings Call – Bristow Group – slide 3
    CEO remarks and safety review Jonathan Baliff, President and CEO
  4. Q1 FY 2016 Earnings Call – Bristow Group – slide 4
    Q1 FY16 operational safety review Air Accident Rate1 (AAR) per 100,000 Continued Target Zero air flight hours (fiscal year) safety for over two years 0.96 through Q1 FY16 0.53 0.53 Q1 FY16 Total Recordable 0 0 0 Injury Rate of…
  5. Q1 FY 2016 Earnings Call – Bristow Group – slide 5
    Bristow is proactively repositioning for a longer downturn Industry-wide overcapacity continues with fundamental changes occurring in the North Sea as clients aggressively rebase cost structures Our initial cost management (75 to 95…
  6. Q1 FY 2016 Earnings Call – Bristow Group – slide 6
    Bristow has substantial advantages to enhance our competitiveness in an extended downturn Modern fleet (average age of 9 years), allows for deferral of new aircraft deliveries reducing capex needs without compromising safety or client…
  7. Q1 FY 2016 Earnings Call – Bristow Group – slide 7
    Operational highlights Jeremy Akel, SVP and COO 8
  8. Q1 FY 2016 Earnings Call – Bristow Group – slide 8
    Europe Caspian Operating revenue and adjusted EBITDAR margin 250 200 207 204 204 in millions 150 180 Norway 100 50 United 34.1% 32.0% 30.8% 32.0% Kingdom 0 Turkmenistan Challenging market will continue; recent…
  9. Q1 FY 2016 Earnings Call – Bristow Group – slide 9
    U.K. SAR update U.K. SAR start up continues as Caernarfon began operations July 1, 2015 with additional bases starting up during the remainder of the fiscal year Operations are meeting contractual availability thresholds and financial…
  10. Q1 FY 2016 Earnings Call – Bristow Group – slide 10
    Africa Operating revenue and adjusted EBITDAR margin 100 in millions 80 85 77 80 77 60 Egypt 40 20 25.9% 29.4% 48.6% 29.4% Nigeria 0 Tanzania Market uncertainty continues and smaller clients are under pressure as…
  11. Q1 FY 2016 Earnings Call – Bristow Group – slide 11
    Americas Operating revenue and adjusted EBITDAR margin 100 80 90 86 80 80 in millions 60 40 Canada 20 44.7% 41.8% 40.5% 41.8% United 0 States Trinidad GoM small and medium aircraft activity decline partially offset…
  12. Q1 FY 2016 Earnings Call – Bristow Group – slide 12
    Lder Absolute BVA contribution to Bristow from Lder was 3.9M* in Q1 FY16 Adjusted debt to TTM adjusted EBITDAR increased to 3.9x as of June 30, 2015 from 3.3x as of March 31, 2015 Current market activity is down but tempered…
  13. Q1 FY 2016 Earnings Call – Bristow Group – slide 13
    Asia Pacific Operating revenue and adjusted EBITDAR margin 80 75 75 60 69 Russia in millions 54 40 20 23.5% 22.8% 29.2% 22.8% 0 37.2% Malaysia Incremental short term wins; expansion into new countries Australia…
  14. Q1 FY 2016 Earnings Call – Bristow Group – slide 14
    Current financial performance and guidance for the future John Briscoe, SVP and CFO
  15. Q1 FY 2016 Earnings Call – Bristow Group – slide 15
    Q1 FY16 highlights U.K. SAR execution led to increased Operating revenue and revenue and partially offset margin adjusted EBITDAR margin declines in oil and gas both sequentially and over prior year 500 Adjusted EBITDAR margins…
  16. Q1 FY 2016 Earnings Call – Bristow Group – slide 16
    Financial highlights: Adjusted EBITDAR and adjusted EPS summary year-over-year Q1 FY15 to Q1 FY16 adjusted EBITDAR bridge (in millions) 3.6 127.6 2.5 0.5 121.0 Q1 FY15 Operations Corporate and Other FX Changes Q1 FY16 Q1…
  17. Q1 FY 2016 Earnings Call – Bristow Group – slide 17
    LACE and LACE rate Consolidated commercial aircraft Large Aircraft equivalent (LACE)* 300 264 261 LACE* LACE Rate* ( in millions) 180 12 250 241 242 234 9.34 9.33 9.25 10 200 170 7.89 8.35 166 164 8 158 158 149 150 160 6…
  18. Q1 FY 2016 Earnings Call – Bristow Group – slide 18
    Bristow Value Added (BVA) drives Gross Cash Flow (GCF) performance 14.0% 70.0 13.0% 13.1% 13.2% 13.2% 12.0% 12.8% 60.0 10.0% TTM GCF reutrn % BVA in millions 50.0 8.0% 40.0 29.3 6.0% 30.0 24.5 26.1 19.7 20.0 4.0%…
  19. Q1 FY 2016 Earnings Call – Bristow Group – slide 19
    Cash flow and liquidity 600 Net cash provided by operating activities1 Total liquidity2 530 300 500 266 253 250 415 231 232 204 402 400 370 365 200 in millions in millions 216 104 300 120 152 211 150 262 178 216…
  20. Q1 FY 2016 Earnings Call – Bristow Group – slide 20
    FY16 guidance revised FY16 adjusted EPS guidance range is lowered to 3.10 - 3.75, excluding special items and aircraft sales. FY16 guidance includes: FY16 guidance as of June 30, 2015 Average LACE count 165-175 Interest expense 25 -…
  21. Q1 FY 2016 Earnings Call – Bristow Group – slide 21
    Bristow is committed to maintaining our financial strength and strategic flexibility in this downturn Safety is and will remain our number one priority, as we build on two consecutive years of Target Zero air safety and continue to…
  22. Q1 FY 2016 Earnings Call – Bristow Group – slide 22
    Appendix
  23. Q1 FY 2016 Earnings Call – Bristow Group – slide 23
    New organizational chart - as of June 30, 2015 Bristow Europe BRS Academy Africa Americas Asia Pacific Caspian 1%* 18% 18% 17% 46% U.K. 84 Nigeria 53 U.S. GoM 51 Australia 39 Florida 54 Norway 22 Tanzania 3 Canada 8 Russia 7…
  24. Q1 FY 2016 Earnings Call – Bristow Group – slide 24
    Aircraft fleet medium and large as of June 30, 2015 Type Capacity Engine Cons Unconsl Total Large capacity 16-25 passengers Large Helicopters AS332 L Super Puma 18 Twin Turbine 4 - 4 AW189 16 Twin Turbine 5 - 5 H175 16 Twin Turbine -…
  25. Q1 FY 2016 Earnings Call – Bristow Group – slide 25
    Aircraft fleet small, training and fixed as of June 30, 2015 (continued) Type Capacity Engine Cons Unconsl Total Small capacity 4-7 passengers Small Helicopters AS 350BB 4 Turbine - 2 2 Bell 206B 4 Turbine 1 2 3 Bell 206 L Series 6…
  26. Q1 FY 2016 Earnings Call – Bristow Group – slide 26
    Operating lease strategy: lowering the cost and amount of capital needed to grow Leased aircraft as of June 30, 2015 Small Medium Large Total Leased LACE Total LACE % Leased Europe Caspian - 5 38 43 41 74 55% Africa - 1 1 2 2 22 7%…
  27. Q1 FY 2016 Earnings Call – Bristow Group – slide 27
    Consolidated fleet changes and aircraft sales for Q1 FY16 Fleet changes Q1 FY16 of aircraft Cash Fleet Count Beginning 371 sold received* Delivered Q1 FY16 9 9.3 Large 1 Medium 1 Total 9 9.3 Total Delivered 2 * Amounts stated in…
  28. Q1 FY 2016 Earnings Call – Bristow Group – slide 28
    Held for sale and leased fleet by region as of Q1 2016 Held for sale aircraft in consolidated fleet Small Medium Large Training Total Europe Caspian - - 2 - 2 Africa - 5 - - 5 Americas - 6 - - 6 Asia Pacific - - 2 - 2 Academy - - -…
  29. Q1 FY 2016 Earnings Call – Bristow Group – slide 29
    Operating revenue, LACE and LACE rate by region Operating revenue, LACE, and LACE rate by region as of June 30, 2015 FY16 op revenue1 LACE LACE Rate2,3,4 Europe Caspian 169 74 9.16 Africa 77 22 14.42 Americas 76 41 7.41 Asia…
  30. Q1 FY 2016 Earnings Call – Bristow Group – slide 30
    Historical LACE by region LACE FY13 FY14 FY15 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…
  31. Q1 FY 2016 Earnings Call – Bristow Group – slide 31
    Historical LACE rate by region LACE Rate1,2 FY13 FY14 FY15 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…
  32. Q1 FY 2016 Earnings Call – Bristow Group – slide 32
    Order and options book as of June 30, 2015 ORDER BOOK1 OPTIONS BOOK Helicopter Helicopter Delivery Date Class Delivery Date Location Contracted 1 Large September-15 Americas 1 of 1 1 Large September-16 1 Large September-15 Europe…
  33. Q1 FY 2016 Earnings Call – Bristow Group – slide 33
    Total net asset FMV with and without leased aircraft FMV 95 Net asset FMV per share Book value of equity per share Average stock price 85 76.24 75 65 56.22 55 45.92 45 45.85 35 NOTE: The gray shaded area…
  34. Q1 FY 2016 Earnings Call – Bristow Group – slide 34
    Net asset FMV reconciliation as of June 30, 2015 June 30, 2015 (in millions) Including leases Excluding leases (+) FMV of aircraft 1,967 1,967 (+) FMV of leased aircraft 1,712 - (+) NBV of PPE without aircraft 413 413 (+) Working…
  35. Q1 FY 2016 Earnings Call – Bristow Group – slide 35
    Adjusted EBITDAR margin* trend by region FY13 FY14 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% 35.0% Africa 31.5% 26.5% 35.0% 32.0% 31.4% 34.1% 30.1% 31.7% 36.6%…
  36. Q1 FY 2016 Earnings Call – Bristow Group – slide 36
    Adjusted EBITDAR* reconciliation Fiscal year ended, 3/31/2013 3/31/2014 ( 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…
  37. Q1 FY 2016 Earnings Call – Bristow Group – slide 37
    Bristow Value Added (BVA) Sample calculation for Q1 FY16 and Q1 FY15 Bristow Value Added = Gross Cash Flow (Gross Operating Assets X Capital Charge) BVA = GCF (GOA x 10.5%**) Bristow Value Added calculation for Q1 FY16 9.7 =…
  38. Q1 FY 2016 Earnings Call – Bristow Group – slide 38
    Bristow gross cash flow reconciliation (in millions) Gross cash flow reconciliation Q1 FY15 Q1 FY16 Net income 44 (3) Depreciation and amortization 25 37 Interest expense 7 8 Loss on extinguishment of debt 0 Interest income (0)…
  39. Q1 FY 2016 Earnings Call – Bristow Group – slide 39
    Bristow adjusted gross operating assets reconciliation (in millions) Adjusted gross operating assets reconciliation Q1 FY15 Q1 FY16 Total assets 3,541 3,243 Accumulated depreciation 536 507 Capitalized operating leases 423 674 Cash…
  40. Q1 FY 2016 Earnings Call – Bristow Group – slide 40
    Lder Bristow Value Added (BVA) Sample calculation for Q1 FY16 and Q1 FY15 Bristow Value Added = Gross Cash Flow (Gross Operating Assets X Capital Charge) BVA = GCF (GOA x 10.5%** ) Bristow Value Added calculation for Q1 FY16 3.9…
  41. Q1 FY 2016 Earnings Call – Bristow Group – slide 41
    Lder gross cash flow reconciliation ( in millions) Gross cash flow reconciliation Q1 FY15 Q1 FY16 Net income (loss) 13 (7) Depreciation and amortization 3 3 Rent 7 6 Interest expense 4 3 Interest income (1) (1) FX (gains) losses…
  42. Q1 FY 2016 Earnings Call – Bristow Group – slide 42
    Lder adjusted gross operating assets reconciliation ( in millions) Adjusted gross operating assets reconciliation Q1 FY15 Q1 FY16 Total assets 623 553 Cash and cash equivalents (76) (74) Accumulated depreciation 80 64 Capitalized…
  43. Q1 FY 2016 Earnings Call – Bristow Group – slide 43
    Lder's adjusted EBITDAR* reconciliation ( in millions) Q2 CY14 Q3 CY14 Q4 CY14 Q1 CY15 Q2 CY15 Gross revenue 113.7 116.4 100.9 80.2 82.7 (-) Revenue deductions (7.3) (7.7) (6.1) (4.5) (4.9) Net operating revenue 106.4 108.7 94.8…
  44. Q1 FY 2016 Earnings Call – Bristow Group – slide 44
    GAAP reconciliation Three months ended June 30, 2015 2014 (In thousands, except per share amounts) Adjusted operating income 36,467 69,304 Gain (loss) on disposal of assets (7,695) 610 Special items 1 (23,938) (4,722) Operating…
  45. Q1 FY 2016 Earnings Call – Bristow Group – slide 45
    Bristow leverage reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of June 30, 2015 945.2 1,613.8 2,559.0 36.9% Adjust for: Unfunded pension liability 101.9 101.9 NPV of lease…
  46. Q1 FY 2016 Earnings Call – Bristow Group – slide 46
    Lder leverage reconciliation (in millions) Jun-14 Jun-15 Total book debt 290 338 NPV of leases 59 39 Total adjusted debt 349 378 TTM adjusted EBITDAR 114 97 Adjusted debt / TTM adj. EBITDAR 3.1x 3.9x 47
  47. Q1 FY 2016 Earnings Call – Bristow Group – slide 47
    We are Bristow 48

From the store

Browse maps, data & reports in the Shale Experts store