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Third quarter FY15 earnings presentation – Bristow Group

Bristow Group · Feb 6, 2015 · 51 slides

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Slides

  1. Third quarter FY15 earnings presentation – Bristow Group – slide 1
    Third quarter FY15 earnings presentation Bristow Group Inc. February 6, 2015
  2. Third quarter FY15 earnings presentation – Bristow Group – slide 2
    Third quarter FY15 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. Third quarter FY15 earnings presentation – Bristow Group – slide 3
    CEO remarks and safety review Jonathan Baliff, President and CEO
  4. Third quarter FY15 earnings presentation – Bristow Group – slide 4
    Operational safety review Commercial Air Accident Rate1 (AAR) per 100,000 Total Recordable Injury Rate2 (TRIR) per flight hours (fiscal year) 200,000 man hours (cumulative) 3.00 3.00 2.00 2.00 0.96 1.00 1.00 0.54 0.59 0.53…
  5. Third quarter FY15 earnings presentation – Bristow Group – slide 5
    HeliOffshore: Safety through collaboration Interest is very strong. Since its launch in October 2014, enrollment has grown to more than 20 members, with an additional 50 in process Global engagement is underway. Membership interest…
  6. Third quarter FY15 earnings presentation – Bristow Group – slide 6
    Q3 FY15 highlights Q3 operating revenue of 430.3M (15.2% increase from Q3 FY14, 2.3% decrease from Q2 FY15) Q3 GAAP EPS loss of 0.03 (105.9% decrease from Q3 FY14, 104.1% decrease from Q2 FY15) Q3 adjusted EPS* of 0.70 (17.6%…
  7. Third quarter FY15 earnings presentation – Bristow Group – slide 7
    Bristow market perspectives Clients are only at the start of a three phase response in this downturn: retrenching, recalibration, and (eventually) renewal The strength of the U.S. dollar has impacted Bristows current financial Overall…
  8. Third quarter FY15 earnings presentation – Bristow Group – slide 8
    Operational highlights Jeremy Akel, SVP and COO 9
  9. Third quarter FY15 earnings presentation – Bristow Group – slide 9
    Europe (EBU) Europe contributed 46% of Bristow operating revenue and 47% of adjusted EBITDAR* in Q3 FY15 Operating revenue increased 22.3% to 193.8M in Q3 FY15 from 158.5M in Q3 FY14 with the net addition of eleven LACE, the…
  10. Third quarter FY15 earnings presentation – Bristow Group – slide 10
    UK SAR update From the start of the GAP SAR contract on June 1, 2013 through December 31, 2014, we have conducted 519 missions and rescued and/or assisted 520 people Sumburgh and Stornoway bases generated 11.9M of operating revenue in…
  11. Third quarter FY15 earnings presentation – Bristow Group – slide 11
    West Africa (WASBU) West Africa (Nigeria) contributed 19% of Bristow operating revenue and 20% of adjusted EBITDAR* in Q3 FY15 Operating revenue increased to 80.5M in Q3 FY15 from 79.4M in Q3 FY14 due to increased activity levels…
  12. Third quarter FY15 earnings presentation – Bristow Group – slide 12
    North America (NABU) North America contributed 15% of Bristow operating revenue and 18% of adjusted EBITDAR* in Q3 FY15 Operating revenue increased to 62.4M in Q3 FY15 from 54.9M in Q3 FY14 primarily due to an increase in the number…
  13. Third quarter FY15 earnings presentation – Bristow Group – slide 13
    Australia (AUSBU) Australia contributed 12% of Bristow operating revenue and 10% of adjusted EBITDAR* in Broome Truscott Darwin BDI provide support Q3 FY15 to the Republic of Operating revenue increased by 51.5% to 52.4M Karratha…
  14. Third quarter FY15 earnings presentation – Bristow Group – slide 14
    Bristow has acquired Airnorth, Northern Australias largest regional airline Bristow acquired an 85% interest in the privately owned Airnorth Airnorth is an Australian regional fixed-wing operator with a balanced portfolio of charter…
  15. Third quarter FY15 earnings presentation – Bristow Group – slide 15
    Airnorth provides scale, stability and positive financial impact for Bristow Bristow Helicopters and Airnorth are culturally aligned with shared core values of safety, quality and service Together, Bristow Helicopters and Airnorth…
  16. Third quarter FY15 earnings presentation – Bristow Group – slide 16
    Other International (OIBU) Other International contributed 8% of Bristow operating revenue and 5% of adjusted EBITDAR* in Q3 FY15 Operating revenue increased to 32.6M in Q3 FY15 vs. 30.8M in Q3 FY14 due to addition of a contract in…
  17. Third quarter FY15 earnings presentation – Bristow Group – slide 17
    Lder update CY14 adjusted EBITDAR was flat year-over-year despite unfavorable changes in foreign currency rates Absolute BVA contribution to Bristow from Lder was 5.1M* in Q3 FY15 (December 31, 2014) Adjusted debt to TTM adjusted…
  18. Third quarter FY15 earnings presentation – Bristow Group – slide 18
    Current and future financial performance John Briscoe, SVP and CFO
  19. Third quarter FY15 earnings presentation – Bristow Group – slide 19
    Financial highlights: Adjusted EPS and adjusted EBITDAR summary year-over-year Q3 FY14 to Q3 FY15 adjusted EPS bridge 0.43 0.30 0.85 0.28 0.70 Q3 FY14 Operations Corporate and Other FX Changes Q3 FY15 Q3 FY14 to Q3 FY15…
  20. Third quarter FY15 earnings presentation – Bristow Group – slide 20
    LACE and LACE rate continue to increase led by new technology aircraft and improved utilization/terms Consolidated commercial aircraft Large Aircraft Equivalent (LACE)* 300 279 180 LACE* LACE Rate* ( in millions) 12 264 261 241…
  21. Third quarter FY15 earnings presentation – Bristow Group – slide 21
    Bristow Value Added (BVA) drives improving Gross Cash Flow (GCF) performance 14.0% 70.0 13.0% 13.1% 13.2% 12.0% 60.0 12.4% 11.8% 10.0% TTM GCF reutrn % BVA in millions 50.0 8.0% 40.0 28.7 6.0% 30.0 24.5 26.1 19.7…
  22. Third quarter FY15 earnings presentation – Bristow Group – slide 22
    Our progress on BVA yields stronger operating cash flow for growth, dividends and share repurchases Net cash provided by operating activities1 600 Total liquidity2 300 530 267 500 250 231 232 64 415 204 412 37 402 400…
  23. Third quarter FY15 earnings presentation – Bristow Group – slide 23
    FY15 guidance updated . . . FY15 adjusted EPS guidance range is reduced to 4.05 - 4.45, excluding special items and aircraft sales. FY15 guidance includes: FY15 guidance as of December 31, 2014 Average LACE (Large AirCraft 165-170…
  24. Third quarter FY15 earnings presentation – Bristow Group – slide 24
    . . . as we continue to invest for Bristows future Our Q3 FY15 financial performance is similar to our last quarter: excellent BVA and operating cash flow, with adjusted EPS lower than expectations Declines in recent oil prices with…
  25. Third quarter FY15 earnings presentation – Bristow Group – slide 25
    Appendix
  26. Third quarter FY15 earnings presentation – Bristow Group – slide 26
    Organizational chart - as of December 31, 2014 Bristow EBU WASBU NABU AUSBU OIBU BRS Academy 46% 18% 13% 11% 8% 4%* UK 92/7 Nigeria 47/6 U.S. GoM 58/6 Australia 31/12 Brazil 9/4 Florida 54/1 Norway 21/4 Canada 9/2 Egypt 0/0…
  27. Third quarter FY15 earnings presentation – Bristow Group – slide 27
    Aircraft fleet medium and large as of December 31, 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 17 - 17 - AW189 16 Twin Turbine 2…
  28. Third quarter FY15 earnings presentation – Bristow Group – slide 28
    Aircraft fleet small, training and fixed as of December 31, 2014 (continued) Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Small capacity 4-7 passengers Small Helicopters AW109 6 Twin Turbine - 1 1 AS 350BB 4 Turbine…
  29. Third quarter FY15 earnings presentation – Bristow Group – slide 29
    Operating lease strategy: lowering the cost and amount of capital needed to grow Leased aircraft as of December 31, 2014 Small Medium Large Total Leased LACE Total LACE % Leased EBU - 3 37 40 39 70 55% WASBU - 1 1 2 2 20 8% NABU 1…
  30. Third quarter FY15 earnings presentation – Bristow Group – slide 30
    Consolidated fleet changes and aircraft sales for Q3 FY15 Fleet changes Held for sale aircraft in consolidated fleet Q1 FY15 Q2 FY15 Q3 FY15 Small Medium Large Training Total Fleet Count Beginning 363 363 363 EBU - - 8 - 8…
  31. Third quarter FY15 earnings presentation – Bristow Group – slide 31
    Operating revenue, LACE and LACE rate by BU Operating Revenue, LACE, and LACE Rate by BU as of December 31, 2014 YTD op revenue1 LACE LACE Rate2,3 EBU 487 70 9.33 WASBU 241 20 16.04 NABU 176 34 7.00 AUSBU 146 24 8.29 OIBU 104…
  32. Third quarter FY15 earnings presentation – Bristow Group – slide 32
    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…
  33. Third quarter FY15 earnings presentation – Bristow Group – slide 33
    Historical LACE rate by BU LACE Rate1,2 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 NABU…
  34. Third quarter FY15 earnings presentation – Bristow Group – slide 34
    Order and options book as of December 31, 2014 1 OPTIONS BOOK ORDER BOOK Helicopter Helicopter Class Delivery Date Class Delivery Date Location Contracted 2 Large June-16 3 Medium March-15 IBU 3 of 3 3 Medium June-16 3 Medium…
  35. Third quarter FY15 earnings presentation – Bristow Group – slide 35
    Order and options book as of December 31, 2014 (continued) UK SAR CONFIGURED ORDER BOOK Helicopter Class Delivery Date Location Contracted 5 Large March-15 EBU 5 of 5 2 Large June-15 EBU 2 of 2 2 Large June-15 EBU 2 of 2 2 Large…
  36. Third quarter FY15 earnings presentation – Bristow Group – slide 36
    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 90.75 85 80.62 75 65 63.24 55 54.55 48.30 45 35 NOTE: The gray shaded area…
  37. Third quarter FY15 earnings presentation – Bristow Group – slide 37
    Net asset FMV reconciliation as of December 31, 2014 December 31, 2014 (in millions) Including leases Excluding leases (+) FMV of aircraft 1,944 1,944 (+) FMV of leased aircraft 1,564 - (+) NBV of PPE without aircraft 576 576 (+)…
  38. Third quarter FY15 earnings presentation – Bristow Group – slide 38
    UK SAR net asset FMV reconciliation UK SAR contribution (in millions) December 31, 2014 FY16 - FY17 Implied (+) FMV of aircraft 1,944 79 2,023 (+) FMV of leased aircraft 1,564 172 1,737 (+) NBV of PPE without aircraft 576 113 689 (+)…
  39. Third quarter FY15 earnings presentation – Bristow Group – slide 39
    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%…
  40. Third quarter FY15 earnings presentation – Bristow Group – slide 40
    Adjusted EBITDAR* reconciliation Fiscal year ended, 3/31/2012 3/31/2013 ( in millions) Q1 Q2 Q3 Q4 FY12 Q1 Q2 Q3 Q4 FY13 Net income 21 3 26 15 65 24 30 37 40 132 Income tax expense 7 -2 7 2 14 6 8 8 13 35 Interest expense 9 9 10…
  41. Third quarter FY15 earnings presentation – Bristow Group – slide 41
    Bristow Value Added (BVA) Sample calculation for Q3 FY15 and Q3 FY14 Bristow Value Added = Gross Cash Flow (Gross Operating Assets X Capital Charge) BVA = GCF (GOA x 10.5%**) Bristow Value Added calculation for Q3 FY15 19.7 =…
  42. Third quarter FY15 earnings presentation – Bristow Group – slide 42
    Bristow gross cash flow reconciliation (in millions) Gross cash flow reconciliation Q3 FY14 Q3 FY15 Net income 19 (1) Depreciation and amortization 24 24 Interest expense 7 7 Interest income (0) (0) Rent 28 46 Other…
  43. Third quarter FY15 earnings presentation – Bristow Group – slide 43
    Bristow adjusted gross operating assets reconciliation (in millions) Adjusted gross operating assets reconciliation Q3 FY14 Q3 FY15 Total assets 3,277 3,180 Accumulated depreciation 530 495 Capitalized operating leases 419 660 Cash…
  44. Third quarter FY15 earnings presentation – Bristow Group – slide 44
    Lder Bristow Value Added (BVA) Sample calculation for Q3 FY15 and Q3 FY14 Bristow Value Added = Gross Cash Flow (Gross Operating Assets X Capital Charge) BVA = GCF (GOA x 10.5%** ) Bristow Value Added calculation for Q3 FY15…
  45. Third quarter FY15 earnings presentation – Bristow Group – slide 45
    Lder gross cash flow reconciliation ( in millions) Gross cash flow reconciliation Q3 FY13 Q3 FY15 Net income (loss) 7.1 (6.5) Depreciation and amortization 3.6 3.5 Rent 6.5 7.4 Interest expense 3.7 4.4 Interest income (1.2)…
  46. Third quarter FY15 earnings presentation – Bristow Group – slide 46
    Lder adjusted gross operating assets reconciliation ( in millions) Adjusted gross operating assets reconciliation Q3 FY14 Q3 FY15 Total assets 589 611 Cash and cash equivalents (100) (67) Accumulated depreciation 75 80 Capitalized…
  47. Third quarter FY15 earnings presentation – Bristow Group – slide 47
    Lder's adjusted EBITDAR* reconciliation ( in millions) Q4 CY13 Q1 CY14 Q2 CY14 Q3 CY14 Q4 CY14 Gross revenue 119.3 121.2 113.7 116.4 100.9 (-) Revenue deductions (7.6) (5.9) (7.3) (7.7) (6.1) Net operating revenue 111.3 115.3 106.4…
  48. Third quarter FY15 earnings presentation – Bristow Group – slide 48
    GAAP reconciliation Three months ended Nine months ended December 31, December 31, 2014 2013 2014 2013 (In thousands, except per share amounts) Adjusted operating income 43,564 49,056 161,303 165,293 Gain (loss) on disposal of…
  49. Third quarter FY15 earnings presentation – Bristow Group – slide 49
    Bristow leverage reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of December 31, 2014 818.2 1,694.2 2,512.4 32.6% Adjust for: Unfunded Pension Liability 62.1 62.1 NPV of Lease…
  50. Third quarter FY15 earnings presentation – Bristow Group – slide 50
    Lder leverage reconciliation (in millions) Dec-13 Dec-14 Total book debt 279 310 NPV of leases 69 46 Total adjusted debt 348 356 TTM adjusted EBITDAR 123 124 Adjusted debt / TTM adj. EBITDAR 2.8x 2.9x 51
  51. Third quarter FY15 earnings presentation – Bristow Group – slide 51
    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 52

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