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Q3 2014 EARNINGS CALL – Bristow Group

Bristow Group · Feb 7, 2014 · 44 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. Q3 2014 EARNINGS CALL – Bristow Group – slide 1
    Third Quarter FY14 Earnings Presentation Bristow Group Inc. February 7, 2014
  2. Q3 2014 EARNINGS CALL – Bristow Group – slide 2
    Third quarter earnings call agenda Introduction Linda McNeill, Director Investor Relations CEO remarks and operational highlights Bill Chiles, President and CEO Current and future financial performance Jonathan Baliff, SVP and…
  3. Q3 2014 EARNINGS CALL – Bristow Group – slide 3
    Chief Executive Officer comments Bill Chiles, President and CEO 4
  4. Q3 2014 EARNINGS CALL – Bristow Group – slide 4
    Operational safety review Commercial Air Accident Rate* per 100,000 Lost Work Case Rate* per 200,000 flight hours (fiscal year) man hours (cumulative) 1.5 1.26 1 0.59 0.59 0.58 3 0.40 0.44 0.41 0.36 0.32 0.5 0.19 0.17 0.16 0 J…
  5. Q3 2014 EARNINGS CALL – Bristow Group – slide 5
    Q3 FY14 highlights Q3 operating revenue of 373.6M (7.8% increase from Q3 FY13, 1.3% decrease from Q2 FY14) Q3 GAAP EPS of 0.51 (49% decrease from Q3 FY13, 83.1% decrease from Q2 FY14) Q3 adjusted EPS* of 0.85 (27.4% decrease from…
  6. Q3 2014 EARNINGS CALL – Bristow Group – slide 6
    Europe (EBU) Europe contributed 44% of Bristow operating revenue and 48% of adjusted EBITDAR* in Q3 FY14 Operating revenue increased to 158.5M in Q3 FY14 from 124.4M in Q3 FY13 with the net addition of eight LACE and an overall…
  7. Q3 2014 EARNINGS CALL – Bristow Group – slide 7
    UK SAR update From the start of the GAP SAR contract in June 1, 2013 through December 31, 2013, we have conducted 169 missions and rescued and/or assisted 151 persons Sumburgh and Stornoway bases generated 12.1M of revenue in Q3…
  8. Q3 2014 EARNINGS CALL – Bristow Group – slide 8
    CHANGE: Bristow Helicopters is making an investment in Eastern Airways, a UK regional fixed-wing oil and gas focused transport company Bristow Helicopters Limited (Bristow Helicopters) purchased a 60% interest in the privately owned…
  9. Q3 2014 EARNINGS CALL – Bristow Group – slide 9
    Eastern Airways provides scale, stability and positive financial impact (with less capital) for EBU Bristow Helicopters and Eastern Airways are culturally aligned with shared core values of safety, quality and service Bristow…
  10. Q3 2014 EARNINGS CALL – Bristow Group – slide 10
    West Africa (WASBU) Nigeria contributed 22% of Bristow operating revenue and 23% of adjusted EBITDAR* in Q3 FY14 Operating revenue increased by 3.8% to 79.4M in Q3 FY14 from 76.5M in Q3 FY13 due to improved pricing, ad hoc flying…
  11. Q3 2014 EARNINGS CALL – Bristow Group – slide 11
    North America (NABU) North America contributed 15% of Bristow operating revenue and 16% of adjusted EBITDAR* in Q3 FY14 Operating revenue decreased to 54.9M in Q3 FY14 from 59.3M in Q3 FY13 primarily due to a decline in the number…
  12. Q3 2014 EARNINGS CALL – Bristow Group – slide 12
    Australia (AUSBU) Australia contributed 10% of Bristow operating revenue and 4% of adjusted EBITDAR* in Q3 FY14 Operating revenue decreased to 34.6M in Q3 FY14 from 41.6M in Q3 FY13 due to the ending of short term contracts and the…
  13. Q3 2014 EARNINGS CALL – Bristow Group – slide 13
    Other International (OIBU) Other International contributed 9% of Bristow operating revenue and 9% of adjusted EBITDAR* in Q3 FY14 Operating revenue decreased to 30.8M in Q3 FY14 vs. 32.0M in Q3 FY13 due to a decline in aircraft on…
  14. Q3 2014 EARNINGS CALL – Bristow Group – slide 14
    Financial discussion Jonathan Baliff, SVP and CFO 15
  15. Q3 2014 EARNINGS CALL – Bristow Group – slide 15
    Financial highlights Q3: Adjusted EPS and adjusted EBITDAR summary Q3 FY13 to Q3 FY14 adjusted EPS bridge 0.01 0.25 0.08 1.17 0.85 Q3 FY13 Operations Corporate and Other FX Changes Q3 FY14 Q3 FY13 to Q3 FY14 adjusted…
  16. Q3 2014 EARNINGS CALL – Bristow Group – slide 16
    Financial highlights YTD: Adjusted EPS and adjusted EBITDAR summary YTD FY13 to YTD FY14 adjusted EPS bridge 0.11 0.10 0.33 2.77 3.11 YTD FY13 Operations Corporate and Other FX Changes YTD FY14 YTD FY13 to YTD FY14…
  17. Q3 2014 EARNINGS CALL – Bristow Group – slide 17
    LACE and LACE rate continue to increase led by new technology a/c and improved utilization/terms 350 Consolidated commercial aircraft Large Aircraft Equivalent (LACE)* 170 ( in millions) LACE* LACE rate* 10 8.97 8.35 290 7.89 300…
  18. Q3 2014 EARNINGS CALL – Bristow Group – slide 18
    Combination of revenue growth and capital efficiency drives quarterly BVA improvement Absolute BVA* Q3 FY12 Q3 FY14 25 22.4 20 15 13.6 in millions 12.1 10 9.4 9.3 5 1.1 1.9 2.1 1.5 0 Q3 FY12 Q4 FY12 Q1 FY13 Q2…
  19. Q3 2014 EARNINGS CALL – Bristow Group – slide 19
    Our progress on BVA yields stronger liquidity for growth . . . Net cash provided by operating activities* Total liquidity 300 700 267 617 600 250 231 500 in millions 200 195 in millions 323 415 402 400 151…
  20. Q3 2014 EARNINGS CALL – Bristow Group – slide 20
    with FY14 guidance reaffirmed FY14 adjusted EPS guidance reaffirmed to 4.25 - 4.55, excluding special items and a/c sales. Other specific items include: FY14 guidance Average LACE 160 - 164 Interest expense 30 - 35M Average…
  21. Q3 2014 EARNINGS CALL – Bristow Group – slide 21
    Moving forward with Operational Excellence: The efforts have been ongoing at Bristow since 2012 Since February 2012, we have focused on an integrated company-wide project to move Bristow towards Operational Excellence through…
  22. Q3 2014 EARNINGS CALL – Bristow Group – slide 22
    Conclusions Safety continues to be our 1 core value as we strive to achieve Target Zero and participate in industry efforts to share best practices Revenue growth continues as clients turn to Bristow as their provider of choice due…
  23. Q3 2014 EARNINGS CALL – Bristow Group – slide 23
    Appendix 24
  24. Q3 2014 EARNINGS CALL – Bristow Group – slide 24
    Organizational chart - as of December 31, 2013 Operated Aircraft Affiliated Aircraft Bristow owned and/or operated 345 Bristow affiliates and joint aircraft as of December 31, 2013 ventures operated 126 aircraft as of December…
  25. Q3 2014 EARNINGS CALL – Bristow Group – slide 25
    Aircraft Fleet medium and large as of December 31, 2013 Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Large capacity 16-25 passengers Large Helicopters AS332 L Super Puma 18 Twin Turbine 19 - 19 - AW189 16 Twin Turbine -…
  26. Q3 2014 EARNINGS CALL – Bristow Group – slide 26
    Aircraft Fleet small, training and fixed as of December 31, 2013 (continued) Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Small capacity 4-7 passengers Small Helicopters AS350BB 4 Turbine - 2 2 - Bell 206B 4 Turbine…
  27. Q3 2014 EARNINGS CALL – Bristow Group – slide 27
    Operating lease strategy: lowering the cost and amount of capital needed to grow Leased aircraft as of December 31, 2013 Small Medium Large Total Leased LACE Total LACE % Leased EBU - 1 21 22 22 59 37% WASBU - 1 1 2 2 22 7% NABU 4…
  28. Q3 2014 EARNINGS CALL – Bristow Group – slide 28
    Consolidated fleet changes and aircraft sales for Q3 FY14 Fleet changes Q1 FY14 Q2 FY14 Q3 FY14 YTD Held for sale aircraft in consolidated fleet Fleet Count Beginning 351 353 350 351 Small Medium Large Training Total Delivered EBU…
  29. Q3 2014 EARNINGS CALL – Bristow Group – slide 29
    Operating revenue, LACE and LACE rate by BU Operating Revenue, LACE, and LACE rate by BU as of December 31, 2013 1 2,3 Op revenue LACE LACE rate EBU 452 59 10.30 WASBU 231 22 14.17 NABU 174 34 6.75 AUSBU 108 20 7.21 OIBU 95…
  30. Q3 2014 EARNINGS CALL – Bristow Group – slide 30
    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…
  31. Q3 2014 EARNINGS CALL – Bristow Group – slide 31
    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…
  32. Q3 2014 EARNINGS CALL – Bristow Group – slide 32
    Order and options book as of December 31, 2013 ORDER BOOK1 OPTIONS BOOK Helicopter Helicopter Class Delivery Date Location Contracted Class Delivery Date 1 Medium March 2014 OIBU 1 of 1 2 Medium March 2015 1 Medium March 2014 NABU 1…
  33. Q3 2014 EARNINGS CALL – Bristow Group – slide 33
    Order and options book as of December 31, 2013 (continued) UK SAR CONFIGURED ORDER BOOK Helicopter Class Delivery Date Location Contracted 3 Large September 2014 EBU 3 of 3 2 Large March 2015 EBU 2 of 2 2 Large June 2015 EBU 2 of 2…
  34. Q3 2014 EARNINGS CALL – Bristow Group – slide 34
    Adjusted EBITDAR margin* trend FY11 FY12 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year EBU 29.8% 31.5% 34.6% 34.4% 32.7% 33.0% 31.4% 30.7% 36.1% 32.9% WASBU 33.7% 36.9% 35.8% 34.3% 35.2% 29.5% 35.5% 37.2% 36.6% 35.0% NABU 20.8%…
  35. Q3 2014 EARNINGS CALL – Bristow Group – slide 35
    Adjusted EBITDAR* reconciliation Fiscal year ended, 3/31/2011 3/31/2012 ( in millions) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Net income 20.9 38.8 42.3 31.2 133.3 21.2 3.0 26.5 14.6 65.2 Income tax expense 8.5 3.3 -11.8 7.1…
  36. Q3 2014 EARNINGS CALL – Bristow Group – slide 36
    Bristow stock price reflects improved operational performance and increasing shareholder returns 80.00 76.47 75.00 70.00 67.71 65.00 60.00 55.00 50.00 47.90 45.00 40.00 35.00 Mar-11 Jun-11 Sep-11 Dec-11…
  37. Q3 2014 EARNINGS CALL – Bristow Group – slide 37
    Net asset fair market value (FMV) per share calculation as of December 31, 2013 (in millions) (+) FMV of a/c 1,949 (+) FMV of leased a/c 873 (+) NBV of PPE w/o a/c 540 (+) Working capital 481 (-) LT debt (833) (-) Leased imputed…
  38. Q3 2014 EARNINGS CALL – Bristow Group – slide 38
    Bristow Value Added (BVA) Sample calculation for Q2 FY14 and Q2 FY13 Bristow Value Added = Gross Cash Flow (Gross Operating Assets X Capital Charge) BVA = GCF - ( GOA X 10.5%** ) Bristow Value Added calculation for Q2 FY14…
  39. Q3 2014 EARNINGS CALL – Bristow Group – slide 39
    Bristow Value Added (BVA) Sample calculation for Q3 FY14 and Q3 FY13 Bristow Value Added = Gross Cash Flow (Gross Operating Assets X Capital Charge) BVA = GCF - ( GOA X 10.5%** ) Bristow Value Added calculation for Q3 FY14…
  40. Q3 2014 EARNINGS CALL – Bristow Group – slide 40
    Gross cash flow reconciliation (in millions) Gross cash flow reconciliation Q2 FY13 Q3 FY13 Q2 FY14 Q3 FY14 Net Income 29.7 36.4 110.6 18.9 Depreciation and amortization 23.3 24.9 23.9 23.7 Interest expense 8.6 14.7 9.1 7.3…
  41. Q3 2014 EARNINGS CALL – Bristow Group – slide 41
    Adjusted gross operating assets reconciliation (in millions) Adjusted gross operating assets reconciliation Q2 FY13 Q3 FY13 Q2 FY14 Q3 FY14 Total assets 2,785 3,051 3,166 3,277 Accumulated depreciation 464 480 518 530 Capitalized…
  42. Q3 2014 EARNINGS CALL – Bristow Group – slide 42
    GAAP reconciliation Three Months Ended Nine Months Ended December 31, December 31, 2013 2012 2013 2012 (In thousands, except per share amounts) Adjusted operating income 49,056 66,724 165,293 160,000 Gain (loss) on disposal of…
  43. Q3 2014 EARNINGS CALL – Bristow Group – slide 43
    Leverage reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of December 31, 2013 841.6 1,762.9 2,604.5 32.3% Adjust for: Unfunded Pension Liability 125.0 125.0 NPV of Lease…
  44. Q3 2014 EARNINGS CALL – Bristow Group – slide 44
    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 45

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