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Q1 2015 EARNINGS CALL – Bristow Group

Bristow Group · Aug 5, 2014 · 45 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 2015 EARNINGS CALL – Bristow Group – slide 1
    First quarter FY15 earnings presentation Bristow Group Inc. August 5, 2014
  2. Q1 2015 EARNINGS CALL – Bristow Group – slide 2
    First quarter FY15 earnings call agenda Introduction Linda McNeill, Director Investor Relations CEO remarks and operational highlights Jonathan Baliff, President and CEO Current and future financial performance John Briscoe, SVP…
  3. Q1 2015 EARNINGS CALL – Bristow Group – slide 3
    Chief Executive Officer comments Jonathan Baliff, President and CEO 4
  4. Q1 2015 EARNINGS CALL – Bristow Group – slide 4
    Operational safety review Commercial Air Accident Rate1 (AAR) per 100,000 Total Recordable Injury Rate2 (TRIR) per 200,000 flight hours (fiscal year) man hours (cumulative) 3.00 3.00 2.00 2.00 0.96 1.00 1.00 0.59 0.54 0.53…
  5. Q1 2015 EARNINGS CALL – Bristow Group – slide 5
    Q1 FY15 highlights Q1 operating revenue of 437.3M (21.6% increase from Q1 FY14, 8.1% increase from Q4 FY14) Q1 GAAP EPS of 1.23 (66.2% increase from Q1 FY14, 48.2% increase from Q4 FY14) Q1 adjusted EPS* of 1.32 (32.0% increase…
  6. Q1 2015 EARNINGS CALL – Bristow Group – slide 6
    Market environment outlook We continue to see growth in helicopter demand globally Large helicopter supply continues to be tight with production lines sold out until CY16 while helicopter demand is expected to grow steadily at an…
  7. Q1 2015 EARNINGS CALL – Bristow Group – slide 7
    Europe (EBU) Europe contributed 48% of Bristow operating revenue and 50% of adjusted EBITDAR* in Q1 FY15 Operating revenue increased 47% to 201.7M in Q1 FY15 from 137.2M in Q1 FY14 with the net addition of four LACE and an overall…
  8. Q1 2015 EARNINGS CALL – Bristow Group – slide 8
    UK SAR update From the start of the GAP SAR contract in June 1, 2013 through June 30, 2014, we have conducted over 340 missions and rescued and/or assisted over 320 people Sumburgh and Stornoway bases generated 13.0M of operating…
  9. Q1 2015 EARNINGS CALL – Bristow Group – slide 9
    West Africa (WASBU) Nigeria contributed 19% of Bristow operating revenue and 15% of adjusted EBITDAR* in Q1 FY15 Operating revenue increased to 80.0M in Q1 FY15 from 75.8M in Q1 FY14 due to improved LACE rates Adjusted EBITDAR…
  10. Q1 2015 EARNINGS CALL – Bristow Group – slide 10
    North America (NABU) North America contributed 14% of Bristow operating revenue and 17% of adjusted EBITDAR* in Q1 FY15 Operating revenue decreased slightly to 57.5M in Q1 FY15 from 58.2M in Q1 FY14 primarily due to the planned…
  11. Q1 2015 EARNINGS CALL – Bristow Group – slide 11
    Australia (AUSBU) Australia contributed 11% of Bristow operating revenue and 8% of adjusted EBITDAR* in Q1 FY15 Operating revenue increased by 21.7% to 46.5M in Q1 FY15 from 38.2M in Q1 FY14 Adjusted EBITDAR increased 62.5% to…
  12. Q1 2015 EARNINGS CALL – Bristow Group – slide 12
    Other International (OIBU) Other International contributed 8% of Bristow operating revenue and 10% of adjusted EBITDAR* in Q1 FY15 Operating revenue increased to 35.5M in Q1 FY15 vs. 32.9M in Q1 FY14 due to the start-up of a…
  13. Q1 2015 EARNINGS CALL – Bristow Group – slide 13
    Lder update First half of CY14 adjusted EBITDAR decreased 13.2% year-over-year due to delayed contract start-ups and lower fixed wing sales Absolute BVA contribution to Bristow from Lder was 3.6M* in Q1 FY15 (June 30, 2014)…
  14. Q1 2015 EARNINGS CALL – Bristow Group – slide 14
    Financial discussion John Briscoe, SVP and CFO 15
  15. Q1 2015 EARNINGS CALL – Bristow Group – slide 15
    Financial highlights: Adjusted EPS and adjusted EBITDAR summary year-over-year Q1 FY14 to Q1 FY15 adjusted EPS bridge 0.15 0.20 0.03 1.32 1.00 Q1 FY14 Operations Corporate and Other FX Changes Q1 FY15 Q1 FY14 to Q1…
  16. Q1 2015 EARNINGS CALL – Bristow Group – slide 16
    LACE and LACE rate continue to increase led by new technology aircraft and improved utilization/terms Consolidated commercial aircraft Large Aircraft Equivalent (LACE)* 170 LACE* LACE Rate* ( in millions) 12 300 279 264 261 9.55…
  17. Q1 2015 EARNINGS CALL – Bristow Group – slide 17
    Bristow Value Added (BVA) drives improving Gross Cash Flow (GCF) performance 100 15% 13.0% 90 12.4% 11.8% 11.8% 80 11.2% 12% 70 TTM GCF Return % 60 9% BVA 'M 50 40 6% 28.7 30 24.5 22.4 20 3% 12.1 10 1.5 0 0%…
  18. Q1 2015 EARNINGS CALL – Bristow Group – slide 18
    Our progress on BVA yields stronger liquidity for growth, dividends and share repurchases . . . Net cash provided by operating activities1 Total liquidity2 300 600 267 530 250 500 231 232 415 402 204 in millions 200 400…
  19. Q1 2015 EARNINGS CALL – Bristow Group – slide 19
    . . . as we execute on our capital deployment strategy Maintain a strong balance sheet for opportunities Repurchase debt opportunistically Improve cash flow and meet leverage targets Focus on cash returns, cash margins and growth…
  20. Q1 2015 EARNINGS CALL – Bristow Group – slide 20
    FY15 guidance reaffirmed. . . FY15 adjusted EPS guidance range is reaffirmed at 4.70 - 5.20, excluding special items and aircraft sales. Other specific items include: FY15 guidance Average LACE (Large AirCraft 161 - 167 Interest…
  21. Q1 2015 EARNINGS CALL – Bristow Group – slide 21
    . . . as we continue to deliver strong results in FY15 Bristow will continue to proactively participate in UK and industry-wide efforts to dramatically improve safety Demand for Bristows exceptional services continues to be strong…
  22. Q1 2015 EARNINGS CALL – Bristow Group – slide 22
    Appendix 23
  23. Q1 2015 EARNINGS CALL – Bristow Group – slide 23
    Organizational chart - as of June 30, 2014 Operated Aircraft Bristow owned and/or operated 363 aircraft as of June 30, 2014 Affiliated Aircraft Bristow affiliates and joint ventures operated 131 aircraft as of June 30, 2014…
  24. Q1 2015 EARNINGS CALL – Bristow Group – slide 24
    Aircraft Fleet medium and large as of June 30, 2014 Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Large capacity 16-25 passengers Large Helicopters AS332 L Super Puma 18 Twin Turbine 18 - 18 - AW189 16 Twin Turbine 2 - 2…
  25. Q1 2015 EARNINGS CALL – Bristow Group – slide 25
    Aircraft Fleet small, training and fixed as of June 30, 2014 (continued) Aircraft Small capacity 4-7 passengers Type No. of PAX Engine Consl Unconsl Total Ordered Small Helicopters Agusta A109 6 Twin Turbine - 1 1 AS 350BB 4…
  26. Q1 2015 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, 2014 Small Medium Large Total Leased LACE Total LACE % Leased EBU - 1 20 21 21 61 34% WASBU - 1 1 2 2 23 7% NABU 1 13…
  27. Q1 2015 EARNINGS CALL – Bristow Group – slide 27
    Consolidated fleet changes and aircraft sales for Q1 FY15 Fleet changes Held for sale aircraft in consolidated fleet Small Medium Large Training Total Q1 FY15 Fleet Count Beginning 363 EBU - - 5 - 5 Delivered WASBU - 2 - - 2 Large…
  28. Q1 2015 EARNINGS CALL – Bristow Group – slide 28
    Operating revenue, LACE and LACE rate by BU Operating Revenue, LACE, and LACE Rate by BU as of June 30, 2014 1 2,3 Op revenue LACE LACE Rate EBU 162 61 10.60 WASBU 80 23 14.21 NABU 58 33 7.02 AUSBU 47 23 8.27 OIBU 36 25 5.80…
  29. Q1 2015 EARNINGS CALL – Bristow Group – slide 29
    Historical LACE by BU LACE FY10 FY11 FY12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBU 45 45 45 42 42 43 48 46 44 46 46 45 WASBU 23 23 24 25 24 24 21 22 23 22 22 22 NABU 39 36 36 36 39 35 34 29 30 29 30 30 AUSBU 20 20 22 22 20 23 24…
  30. Q1 2015 EARNINGS CALL – Bristow Group – slide 30
    Historical LACE rate by BU 1,2 LACE Rate FY10 FY11 FY12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBU 8.36 8.28 8.40 8.76 8.20 8.50 7.90 8.40 9.80 9.60 9.63 10.09 WASBU 9.08 8.81 8.66 8.34 9.70 9.40 10.70 9.90 9.10 10.30 11.17 11.46…
  31. Q1 2015 EARNINGS CALL – Bristow Group – slide 31
    Order and options book as of June 30, 2014 1 ORDER BOOK OPTIONS BOOK Helicopter Helicopter Class Delivery Date Location Contracted Class Delivery Date 1 Large September 2014 EBU 1 Large September 2015 2 Large September 2014 EBU 1…
  32. Q1 2015 EARNINGS CALL – Bristow Group – slide 32
    Order and options book as of June 30, 2014 (continued) UK SAR CONFIGURED ORDER BOOK Helicopter Class Delivery Date Location Contracted 1 Large September 2014 EBU 1 of 1 1 Large September 2014 EBU 1 of 1 2 Large December 2014 EBU 2…
  33. Q1 2015 EARNINGS CALL – Bristow Group – slide 33
    Adjusted EBITDAR margin* trend FY12 FY13 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year EBU 33.0% 31.4% 30.7% 36.1% 32.9% 32.2% 34.6% 39.5% 38.3% 36.2% WASBU 29.5% 35.5% 37.2% 36.6% 35.0% 31.9% 26.5% 35.0% 31.8% 31.5% NABU 14.3% 20.6%…
  34. Q1 2015 EARNINGS CALL – Bristow Group – slide 34
    Adjusted EBITDAR* reconciliation Fiscal year ended, 3/31/2012 3/31/2013 ( in millions) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Net income 21.2 3.0 26.5 14.6 65.2 24.2 30.4 36.7 40.4 131.7 Income tax expense 6.6 -1.9 7.1 2.4…
  35. Q1 2015 EARNINGS CALL – Bristow Group – slide 35
    Bristow Value Added (BVA) Sample calculation for Q1 FY15 and Q1 FY14 Bristow Value Added = Gross Cash Flow (Gross Operating Assets X Capital Charge) BVA = GCF - ( GOA X 10.5%** ) Bristow Value Added calculation for Q1 FY15…
  36. Q1 2015 EARNINGS CALL – Bristow Group – slide 36
    Bristow gross cash flow reconciliation (in millions) Gross cash flow reconciliation Q1 FY14 Q1 FY15 Net Income 26.9 44.1 Depreciation and amortization 22.8 25.3 Interest expense 20.4 7.4 Interest income (0.1) (0.2) Rent 23.1 33.1…
  37. Q1 2015 EARNINGS CALL – Bristow Group – slide 37
    Bristow adjusted gross operating assets reconciliation (i n mi l l i ons) Adjusted gross operating assets reconciliation Q1 FY14 Q1 FY15 Total assets 3,058 3,541 Accumulated depreciation 507 536 Capitalized operating leases 315 423…
  38. Q1 2015 EARNINGS CALL – Bristow Group – slide 38
    Lder Bristow Value Added (BVA) Sample calculation for Q1 FY15 and Q1 FY14 Bristow Value Added = Gross Cash Flow (Gross Operating Assets X Capital Charge) BVA = GCF - ( GOA X 10.5%** ) Bristow Value Added calculation for Q1 FY15…
  39. Q1 2015 EARNINGS CALL – Bristow Group – slide 39
    Lder gross cash flow reconciliation ( in millions) Gross cash flow reconciliation Q1 FY14 Q1 FY15 Net income (loss) 16.6 12.5 Depreciation and amortization 4.3 3.4 Rent 6.4 7.4 Interest expense 3.8 3.7 Interest income (1.7) (1.5)…
  40. Q1 2015 EARNINGS CALL – Bristow Group – slide 40
    Lder adjusted gross operating assets reconciliation ( in millions) Adjusted gross operating assets reconciliation Q1 FY14 Q1 FY15 Total assets 594 623 Cash and cash equivalents (87) (76) Accumulated depreciation 77 80 Capitalized…
  41. Q1 2015 EARNINGS CALL – Bristow Group – slide 41
    Lder's adjusted EBITDAR* reconciliation ( in millions) Q3 CY13 Q4 CY13 Q1 CY14 Q2 CY14 Gross revenue 116.8 119.3 121.2 113.7 (-) Revenue deductions (6.6) (7.6) (5.9) (7.3) Net operating revenue 110.2 111.3 115.3 106.4 (-) Cost of…
  42. Q1 2015 EARNINGS CALL – Bristow Group – slide 42
    GAAP reconciliation Three Months Ended June 30, 2014 2013 (In thousands, except per share amounts) Adjusted operating income ...................................................................... 69,304 57,840 Gain (loss) on…
  43. Q1 2015 EARNINGS CALL – Bristow Group – slide 43
    Bristow leverage reconciliation (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of June 30, 2014 955.1 1,783.4 2,738.5 34.9% Adjust for: Unfunded Pension Liability 82.4 82.4 NPV of Lease Obligations 391.3 391.3 Letters of…
  44. Q1 2015 EARNINGS CALL – Bristow Group – slide 44
    Lder leverage reconciliation (in millions) Sep-13 Jun-14 Total book debt 279 290 NPV of leases 75 59 Total adjusted debt 354.0 348.6 TTM adjusted EBITDAR 124.6 114.0 Adjusted debt / TTM adj. EBITDAR 2.8x 3.1x 45
  45. Q1 2015 EARNINGS CALL – Bristow Group – slide 45
    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 46

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