 Bristow Group Inc.
November 10, 2011
Analyst Day 2011
Exhibit 99.1 |
 2
Forward-looking statements
This
presentation
may
contain
“forward-looking
statements”
within
the
meaning
of
the
Private
Securities
Litigation
Reform
Act
of
1995.
Forward-looking
statements
include
statements
about
our
future
business,
operations,
capital
expenditures,
fleet
composition,
capabilities
and
results;
modeling
information,
earnings
guidance,
expected
operating
margins
and
other
financial
projections;
future
dividends,
share
repurchase
and
other
uses;
plans,
strategies
and
objectives
of
our
management,
including
our
plans
and
strategies
to
grow
earnings
and
our
business,
our
general
strategy
going
forward
and
our
business
model;
expected
actions
by
us
and
by
third
parties,
including
our
customers,
competitors
and
regulators;
share
repurchase
and
other
uses
of
excess
cash;
the
valuation
of
our
company
and
its
valuation
relative
to
relevant
financial
indices;
assumptions
underlying
or
relating
to
any
of
the
foregoing,
including
assumptions
regarding
factors
impacting
our
business,
financial
results
and
industry;
and
other
matters.
Our
forward-looking
statements
reflect
our
views
and
assumptions
on
the
date
of
this
presentation
regarding
future
events
and
operating
performance.
They
involve
known
and
unknown
risks,
uncertainties
and
other
factors,
many
of
which
may
be
beyond
our
control,
that
may
cause
actual
results
to
differ
materially
from
any
future
results,
performance
or
achievements
expressed
or
implied
by
the
forward-looking
statements.
These
risks,
uncertainties
and
other
factors
include
those
discussed
under
the
captions
“Risk
Factors”
and
“Management’s
Discussion
and
Analysis
of
Financial
Condition
and
Results
of
Operations”
in
our
Annual
Report
on
Form
10-K
for
the
fiscal
year
ended
March
31,
2011
and
our
Quarterly
Report
on
Form
10-Q
for
the
quarter
ended
September
30,
2011.
We
do
not
undertake
any
obligation,
other
than
as
required
by
law,
to
update
or
revise
any
forward-
looking statements, whether as a result of new information, future events or
otherwise. |
 3
Map of emergency exits |
 4
Agenda
•
Introduction
•
The Bristow vision: gaining altitude
CEO)
•
The future opportunity
•
Global operations update and business units future strategies
(Richard Burman, SVP Operations)
•
Understanding
our
unique
investment
thesis
SVP
and
Chief
Financial
Officer)
•
Moving forward with Bristow
•
Lunch
(Greg Milano, Fortuna Advisors)
(Linda McNeill, Investor Relations Director)
(Bill Chiles, President and
(Mark Duncan, SVP Commercial)
(Bill Chiles)
(Jonathan Baliff, |
 5
The Bristow Vision: Gaining Altitude
Bill Chiles, President and CEO |
 6
Objectives for today
•
Discuss Bristow’s expanding growth
opportunities and Client Promise
•
Operations update and business unit future
strategies
•
Detail new financial initiatives to create a
unique, balanced and more valuable
investment vehicle
•
Close intrinsic valuation gap |
 7
Bristow is the leading provider of helicopter
transportation services to the global offshore industry
•
~20 countries
•
552 aircraft
•
~3,400 employees
•
Ticker: BRS
•
Stock price
*
: $51.19
•
Market cap
*
: ~$1.9 billion
•
2011 TSR: 8.9%
$67
* Based on 36.8 million fully diluted weighted average shares outstanding for
the three months ended 09/30/2011 and stock price as of 10/28/2011
Bristow flies crews and light cargo to production platforms, vessels and rigs
|
 8
Mission and Core Values
Clients choose Bristow because we add more value and
provide Confidence in flight. Worldwide.
Our mission is to provide the safest and
most efficient helicopter services and
aviation support worldwide.
achieve this by focusing on and committing
to:
•
Working in innovative partnerships with
customers
•
Further developing highly professional
workforce
•
Expanding business and extending horizons
Through these commitments, we will provide
industry-leading value to our customers,
employees and shareholders while remaining
true to our core values
Bristow’s values represent core beliefs about
how to conduct business:
•
Safety
–
unwavering focus on safety and
maintaining a “Target Zero”
goal of no accidents
•
Quality
and
Excellence
–
set
and
achieve
high standards in all operations
•
Integrity
–
“do the right thing”
•
Fulfillment
–
develop talents and enjoy work
•
Teamwork
–
communicate openly and
respect each other
•
Profitability
–
make wise decisions and grow the
business
Our Mission
Our Values
We will |
 9
Bristow goals are represented by our “Strategy Temple”
|
 10
2.79
2.27
0.39
Industry leading safety record creates marketing and
cost advantage
•
Safety is our primary core value
•
Bristow’s
‘Target
Zero’
program
is
now
the
leading example emulated industry-wide
•
the average rates for the oil and gas
industry and all civil helicopters
•
Safety Performance accounts for 25% of
management incentive compensation
* Averages for most recently available three-year period: Helicopter
Association International 2007-2009, International Oil & Gas Producers 2005-2007, Bristow Group, 2009-
2011, excluding Bristow Academy
3-year average air
accident rates
*
per 100K flight hours
Bristow
Oil & Gas industry
All civil helicopters
one fifth
Bristow accident rate is less than |
 11
Bristow services are utilized in every phase of
offshore oil and gas activity
•
Largest share of revenues (>60%) relates to
oil and gas production, ensuring stability and
growth
•
There are ~ 8,000 offshore production
installations worldwide—compared with >600
exploratory drilling rigs
•
~ 1,700 helicopters servicing oil and gas
industry of which Bristow’s fleet is
approximately one third
•
Bristow revenues primarily driven by
operating expenditures
Typical revenues by segment
Exploration
20%
Development
10%
Production
60%
Other 10%
H e l i c o p t e r t r a n s p o r t a t i o
n s e r v i c e s ABANDONMENT
SEISMIC
DEVELOPMENT
PRODUCTION
EXPLORATION |
 12
Bristow’s contract and operations structure results in a more
predictable income with significant operating leverage
Revenue sources
•
Our run-rate capex is low as we expense almost all of our
overhaul and maintenance
•
Bristow contracts earn 65% of revenue without flying in most market
•
Two tiered contract structure includes both:
–
Fixed or monthly standing charge to reserve helicopter capacity
–
Variable fees based on hours flown
Operating income
Fixed
monthly
65%
Variable
hourly
35%
Fixed
monthly
70%
Variable
hourly
30% |
 13
Although Bristow has delivered value to
shareholders in 2011 . . .
01/01/11
02/18/11
04/11/11
05/31/11
07/20/11
09/08/11
10/28/11
60
70
80
90
100
110
120
130
(17.8%)
(1.3%)
2.2%
8.9%
Oil Service Index
S&P 500
Simmons Offshore Transportation Service Index
Bristow
Source: Factset.
Note: Simmons Offshore Transportation Service Index includes: Bourbon,
Dockwise, DOF, Farstad Shipping, Gulfmark, Hornbeck, Kirby Corp, PHI, Seacor, Sevan Marine, Solstad Offshore and Tidewater. |
 14
. . . we are also making changes to address issues with
our commercial, operational and financial profile
•
Safety and pursuit of Target Zero will remain our top priority
•
Bristow will remain the premier service provider with excellent secular expansion
opportunities, but the growth will be executed with care and
discipline •
Client Promise ensures differentiation
•
BVA creates capital allocation discipline
commercial and operation managers push performance
•
Bristow operations will be the model of cost efficiency in helicopter
services •
Bristow will become the unique investment in oilfield services by balancing
growth and capital return
with premium value added services
with a single financial metric that helps
Expand margins and revenue growth
Deepen client relationships with premium market share with the premium
clients Push capital efficiency and revenue per asset
Proactive reduction of our capital charge
Bristow will maintain its commitment to prudent balance sheet management
Bristow will grow the dividend
Bristow will demonstrate a balanced return for our investors by using market price
signals to grow or harvest our businesses |
 15
The future opportunity
Mark Duncan, SVP Commercial |
 16
•
Market outlook and
expending growth
opportunities
•
Unique equity
partnerships
Lider
FBH
•
Client Promise
#1
#1
Market outlook for the next five years
FY 2012 -
2016 |
 17
Market outlook and expanding growth |
 18
•
Total Offshore CAPEX to reach 2008 levels by 2011, ~ $520 billion
•
At
a
lower
cost
base,
higher
spending
translate
into
even
higher
activity
levels
Total spending will recover progressively to 2014
lower costs and high prices drive new developments
Source: PFC Energy E&P Spending Model
2008 levels |
 19
•
OPEC country expenses have been rising
•
Middle East unrest has caused large amounts of new spending by governments, which
is raising need for oil revenue
•
Members
are
aligned
on
the
need
for
$100
per
barrel
Brent
prices
at
a
minimum
OPEC
countries
need
higher
oil
prices
to
create
political
stability
0
20
40
60
80
100
120
$/b
OPEC Current Account Threshold Prices
2005
2010
2011F
2012F
2010 Brent actual
2011, 12 Brent forecast |
 20
Offshore reserves remain more open to IOCs than
onshore …
particularly in deepwater
Source: PFC Energy Service Strategies Service; NOCS Service
|
 21
Spending in deepwater will see the highest growth
during the next decade
2001-2010
2011-2020
Net
Growth
ONSHORE
2,142
4,266
99.2%
SHALLOW WATER
1,064
1,560
46.6%
DEEPWATER
541
1,245
130.3%
3,747
7,071
88.7%
Source: PFC Energy E&P Spending Model
ONSHORE
2,142
57%
SHALLOW
1,064
28%
DEEP
541
15%
Total CAPEX 2001-2010
$3,747 billion
ONSHORE
4,266
60%
SHALLOW
1,560
22%
DEEP
1,245
18%
Total CAPEX 2011-2020
$7,071 billion |
 22
•
The U.S. GoM, Brazil and Australia will show a significant evolution to farther
facilities as new assets are developed
•
Other
regions
–
i.e.
Northwest
Europe,
West
Africa
and
the
Middle
East
–
will
not
see
too
much
of
a
change
New deepwater infrastructure is moving farther from shore
in most regions –
new technology helicopters needed
Source: PFC Energy Offshore Platform model
Evolution of Distance-to-Shore of Offshore Infrastructure
0
50
100
150
200
250
300
350
400
USGOM
LATAM
MEXICO
BRAZIL
NW E
SSAFR
NIGERIA
MEAST
APAC
AUSTR
Pre 1990
1990
-
2004
2005
2010
2011+
Max |
 23
What clients are saying?
•
Newer assets will be required
•
Pursuing highest operational standard and will require that of contractors
•
Higher levels of inspection required to award contracts
•
Certification of training and personnel competency needed
•
Bids will call for higher specs than needed to perform the actual job
•
“Every bid now seems to need partner approvals”
Our clients have sharply increased their focus on risk
related to contractor capabilities, personnel and equipment
These requirements favor Bristow’s business model because of
its financial strength and demonstrated premier service
|
 24
Small
Medium
Large
Opportunity Tracker FY2012-FY2016
441 Bristow growth opportunities indentified . . .
Source: Bristow business development October 2011
North America
Brazil, Peru,
Trinidad
Gulf of Guinea
Europe
Mid East, East Africa,
India, Bangladesh
Malaysia, Thailand
Indonesia
Australia
Total Opportunities *
Total Aircraft Opportunities
New replacement
aircraft
Existing
aircraft
New growth
aircraft
106
56
279
24 |
 25
•
Deepwater discoveries have continued and are expected to drive growth
•
Brazil, U.S., Australia, Angola and Norway dominated deepwater discoveries
•
But, Equatorial Margin, Asia Pacific and East Africa also rose
Source: PFC Energy Global Deepwater Competition Service
Note: Discovery count includes all finds; commerciality of some is
yet-to-be determined 182 Deepwater
Discoveries
Announced
2009
–
June
2011 *
Opportunity Tracker FY2017 and beyond
. . . With a wider scope of Bristow growth in the future
|
 26
So what’s changed concerning the growth cycle
this time around for Bristow?
•
Higher levels of activity post-recession than the pre-recession
levels
•
Concentration on new technology for more tenders
•
More volume per overall level of spend advantages
helicopter services
•
Helicopter supply and demand balance is different
•
Fleet age is significantly younger with better large aircraft
capability
•
Client Promise positions Bristow for premier services, not
necessarily all tenders
•
Bristow’s financial strength is more pronounced
|
 27
Unique Equity
Partnerships |
 28
Current
Opportunity
Lider Aviação:
Positioned in largest growth market
•
Brazilian aviation services company focused on two business lines:
Offshore helicopter services:
50 helicopters
Annual Revenue: ~ $240
M
•
Extensive infrastructure throughout Brazil (key differentiator) with over
30% market share in helicopter services
•
42.5% equity ownership required in May 2009
•
EBITDA growth from $33M in 2009 to over $48M projected in 2011
•
Offshore helicopter market continues double digit growth
•
Corporate aviation ac count correlates to GDP: investment climate,
GDP growth, Olympics, World Cup
•
Limited space at airports gives first movers sustainable competitive
advantage
Corporate/general aviation and other services:
31 charter aircraft
Annual revenue: ~ $150 M
28 |
 29
Going
Forward
(Lider)
Lider Aviação:
Outlook
Going
Forward
(Bristow)
•
Strengthen corporate aviation position
•
Maintain integrated company structure to maximize overhead
allocation
•
Leverage partner relationships to access capital or equipment required
for growth
•
Invest in initiatives to create market differentiation in both segments
•
Invest in the significant growth of the offshore helicopter sector through
deployment of our helicopters at acceptable BVA accretion
•
Restructure investment to free capital and improve overall equity
returns
29 |
 30
Current
Opportunity
FB Heliservices is a well-known brand in the UK
government services with opportunities to expand
•
JV with Cobham (a FTSE 4.8B GBP company)
•
Exclusive vehicle for owners to provide military/government helicopter services
Engineering support
Logistics support
63 helicopters flying over 45,000 hours per year
•
Bristow has approximately $12M equity investment in FBH with $10-12M
in dividends and earnings received in each of the
past two years Aircrew (pilots and rear crew)
Search and rescue operations
•
Revenue underpinned by UK Defence Helicopter Flying School
(DHFS) contract. 3-5 year extension by direct negotiation
•
Bid process ongoing for $1.6B DHFS contract replacement (known as
MFTS) starting 2016
•
Militaries are upgrading fleets and need increased training
•
Continue
to
expand
government contracted Search and Rescue business (TTAG
and Dutch Antilles recent successes)
•
Expand further into Eastern Europe & Middle East
•
Evaluate U.S. foreign military work requiring U.S. style capability and license
(in conjunction with Bristow Academy)
30 |
 31
Client Promise |
 32
Introduction of the Client Promise
Completed
•
Internal assessment
and client research
•
New Brand Promise
was launched at
Heli-Expo March
2011
Underway
•
New sales, pricing and
contract negotiations
training
•
Reliability and client
service program
initiatives
•
Regional client forums
and value chain labs
•
Global Key
Performance
Indicators (KPIs) being
captured and published
Outcome
Increasing
market share and higher pricing
by delivering additional
value
to clients |
 33
Price: the least important decision factor when
choosing helicopter transportation services
Safety, equipment availability and reliability, and
client service are the top three deciding factors
when choosing helicopter transportation services. |
 34
Client promise moves Bristow from being operations
driven to service driven
Client
value:
Lowering
risk
and
operating
cost
and
improving
productivity through the safest and most reliable service.
Bristow
value:
Improving
our
ability
to
generate
higher
BVA
and
revenue growth.
Future Value
Driving markets
Sparking innovation
Customer value
Bristow value
Create the future and deliver today
Today’s Value
Higher revenue from
sales, pricing and
communications programs |
 35
The Client Promise –
expanding Target Zero
Target Zero accidents, downtime and complaints
programs deliver value to operators.
More zero-accident flight hours than anyone,
more uptime than anyone,
and hassle-free service
creates Confidence in flight. Worldwide.
Lowers client’s offshore operating costs
and improves productivity.
Earns us more profitable business
to improve Bristow Value Added (BVA). |
 36
Client Promise = Focused on value
•
Specialized sales and negotiation training
in each business unit
•
More Value Chain Labs with clients
•
Expand scope of VCLs to incorporate
suppliers
•
Strategic clients targeted through direct
communications
•
Continued growth expected from this
initiative
Successes
•
Client Promise training undertaken in every
BU
•
Five Value Chain Labs (VCLs) undertaken
with different Clients, each has generated
a growth opportunity for Bristow
•
Global Key Performance Indicators (KPIs)
rolled out, first results being delivered
•
UK Client contract awarded at higher
rates, based on superior availability
performance
•
Australia secured contract based on ability
to demonstrate better performance metrics
•
Direct negotiation of five-year contract
What future holds |
 37
Client Promise
Delivering Value
Bristow Group Inc.
October-11
MTD
YTD
Goal
Total Recordable Incident Rate (TRIR)
0.22
0.22
0.20
Air Accident Rate (AAR)
0.00
0.91
0.20
All On Time Departure (OTD)
97.6%
96.0%
97%
Bristow On Time Departure (BOT)
99.4%
98.9%
97%
Service Availability (SAV)
99.7%
99.4%
95%
Total Flights delayed (TFD)
1,230
6,508
8,033
Total Lost minutes by Bristow (TLM)
18,409
107,541
120,500
Accolades (TAR)
1.92
1.06
1.00
Complaints (TCR)
0.58
0.36
0.50
Current Year
Client Value Added Scorecard |
 38
(0.5)
5.5
13
92.6
111.1
-10
10
30
50
70
90
110
130
Expense
Est. current
incremental
value
Identified future
value
Achieved client
savings
Total value
added
Already delivered significant value added for our clients
Current known five year outlook as of October, 2011
Additional client value benefits Bristow |
 39
Global operations update and business
units future strategies
Richard Burman, SVP Operations |
 40
One typical day (video overview) |
 Operations outlook for the next five years
•
Safety
•
Operating framework
•
Business Unit strategies and
outlook
•
Year to date performance
•
Summary
FY 2012 -
2016
41 |
 Safety Culture
•
Safety is the first and most important operations value
•
Systems and processes are important, leadership and culture
are essential
•
Aviation safety paramount
•
Our safety
vision
reflects
our
belief
that
we
can,
and
will,
achieve:
Zero Accidents
•
Zero harm to people
•
Zero harm to the environment
42 |
 Helicopter
Flight
Analysis
Profile
(HFDM)
playback
enhances understanding
43 |
 Target Zero (2011)
•
Local (example: Pigeon English) computer based training implemented
•
HFDM process globalised
•
Working at height policy embedded (use of protective head gear)
•
Just Culture initiative launched
•
One aviation “accident”
(yet to be classified)
•
Three Lost Work Cases (LWCs) year to date
•
Total Reportable Injury Rate (TRIR) (Group) 0.22
44 |
 Operating philosophy / framework is based on decentralized
Business Units with common values and priorities
•
The Business Units are self sufficient with responsibility and
accountability for all key business functions and activities
•
Safety is the number one priority
•
Client Promise and BVA performance are also a priority: to drive
market
share,
higher
prices
and
better returns
•
The five regional Business Units are supported by:
Central Operation (COBU) provides heavy maintenance,
supply chain, technical records, fleet support, and our design
& modification unit
Quality, Health, Safety, Environmental (QHSE) group and other
support functions
45 |
 46
Bristow is well diversified with 552 aircraft in over 20
countries spread across all continents
Business Unit
Corporate
Region
Joint Venture
Key
Operated Aircraft
Bristow owns and/or operates 366
aircraft as of September 30, 2011
Affiliated Aircraft
Bristow affiliates and joint
ventures operate 186 aircraft
as of September 30, 2011
(* % of Q2 FY12 Operating Revenue)
(
#
of
Aircraft
/
#
of
Locations)
(No. of aircraft) |
 47
Our experienced Global Operations Leadership Team
has been working together for a while
Richard Burman
Senior Vice President
Operations
Jessie Wheeler
Executive Assistant
to SVP Operations
Danny
Holder
Director
North
America
Business
Unit
(New Iberia,
USA)
Jeremy
Akel
Director
Other Int’l
Business
Unit
(Houston,
USA)
Mike
Imlach
Director
Europe
Business
Unit
(Aberdeen,
UK)
Akin Oni
Director
West
Africa
Business
Unit
(Lagos,
Nigeria)
John
Cloggie
Director
Centralised
Operations
Business
Unit
(Aberdeen,
UK)
Allan
Blake
Director
Australia
Business
Unit
(Perth,
Australia)
Christine
Scholes
Director
Human
Resources
(Redhill, UK)
Andrew
Magowan
Legal
Director
(Redhill, UK)
Jonathan
Stripling
Director
Quality,
Safety,
Standards
& Training
(Aberdeen,
UK)
George
Bruce
Finance
Director
Global
Operations
(Aberdeen,
UK)
Mark Duncan
Senior Vice President
Commercial
Hilary Ware
Senior Vice President
Administration |
 48
Europe (EBU) is our largest BU with significant growth
opportunities to both diversify and increase market share
Netherlands
Norway
Norwich
Aberdeen
Scasta
Stavanger
Den Helder
Bergen
Hammerfest
Esbjerg
Humberside
Kristiansund
•
Diverse client base with multi year
contracts managed as three operating
units (Northern North Sea, Southern
North Sea, and Norway)
•
Stable oil and gas market with good
returns. Tender activity for 2012 and
beyond has significantly increased in
current year
•
Growth opportunities in Search and
Rescue (UK Gap SAR and SAR-H),
Norway, West of Shetland
•
Northern
North
Sea
and
Norway
–
Large
aircraft market (37 ac); mature long
established market; marginal field
development in NNS has changed
operator profiling
•
Southern
North
Sea
–
Mainly
medium
types (21 ac)
•
75% of fleet new generation ac |
 49
EBU Outlook:
Growth is surprisingly resilient
Business Overview:
•
Annual Revenue ~ $550 million
•
# of LACE: 46 (41 Heavy, 17 Medium)
•
LACE Rate (annualized): $9.75 million
•
Market Share: circa 35%
Outlook:
•
Positive, but we must remain cost effective
•
New incremental work contracted
•
Fleet transitioning to all new generation aircraft
•
Market share gains and new tender activity yield need for over 15 new
aircraft
UK Gap SAR bid
Norway
West of Shetlands
•
SAR-H longer term opportunity
•
Wind farms diversification
FY12 operating margin expected to be ~ low twenties
Long-term operating margins should remain in the low twenties
|
 50
West Africa (WASBU) strategy is to maintain the
proven and consistent premier brand
Nigeria
Lagos
Escravos
Port Harcourt
Warri Osubi
Eket
Calabar
•
50+ year history in Nigeria
•
Strong market share
•
Stability returning to Delta Region, PIB
awaited –
delay in approval of bill is
hampering inward investment in the oil
and gas sector
•
Local Content Bill –
move to indigenize
the sector and emergence of local
competitors changing market dynamics
•
Restructuring taking place to create an
AMO entity and to make one of the
existing entities a 100% Nigerian
company
•
Focused on leveraging:
•
Our reputation/safety record/global
brand
•
PAN African’s 100% Nigerian content
•
Availability of heavies and deep water
experience
Warri Texaco |
 51
WASBU Outlook: Increased offshore deepwater
development and competition
and competition
Business Overview:
•
Annual Revenue: circa $250 million
•
# of LACE: 22 (mostly medium/small aircraft)
•
LACE Rate (annualized): circa $10.3 million
•
Market Share: circa 60%
Outlook:
•
Competition re-emerging in the medium term
•
Introduction of large new technology aircraft to market with increased activity
planned •
Deep-water
opportunities
-
greater
barriers
of
entry
•
Twelve month renewal of key Chevron contract
•
Major bids from Agip, ExxonMobil, and Chevron
•
Restructuring continues
FY12 operating margin expected to be low to mid twenties
Long-term operating margins should remain in the mid twenties
|
 52
Exmouth
Varanus Is
Barrow Is
Australia (AUSBU) strategy entails a focus on the
organic growth and the Client Promise
Australia
Perth
Dongara
Essendon
Tooradin
Broome
Truscott
Darwin
BDI provide support
to the Republic of
Singapore Air Force
Oakey
Karratha
•
Geographically diverse fleet
distribution and client base
•
Organic growth envisaged (30%
fleet expansion anticipated by 2014)
•
Fleet composition evolving to new
generation fleet types
•
Opportunity to expand maintenance
support business by branching into
other government/military type
support contracts (Air 9000 project)
•
Strong tender activity, outlook is
positive for oil and gas
•
Competitive landscape is changing,
emergence of competition in oil and
gas marketplace
•
Service delivery will be key
differentiator |
 53
AUSBU Outlook: Mid and Long term outlook is positive
Expansion delayed in 1HFY12
Business Overview:
•
Annual Revenue: circa $160 million
•
# of LACE: 20
•
LACE Rate (annualized): circa $7.3 million
•
Market Share: circa 65%
Outlook:
•
Some work delayed until second half FY12; expecting strong activity in Q4
•
Total market size is increasing as new projects come on line, driven by demand
for gas for Asian markets
•
Additional new technology work confirmed with key operators Woodside and BP
•
Major bids for Shell, Total, Inpex and Australian military
FY12 operating margin expected to be mid teens
Long-term operating margins should remain in high teens
|
 54
Other International (OIBU) strategy is to develop new
markets through geographic R&D and partnerships
Consolidated in OIBU
Unconsolidated Affiliate
•
Focused on new and emerging
markets as a means to generate
and ensure growth and
sustainable business levels for the
future
•
Strong focus on growth in Brazil,
Trinidad, Equatorial Guinea and
SE Asia
•
Business model and nationalistic
influence often requires
partnerships with local entities; this
leads to focus on dry leases in
some cases, and always requires
skill in management of JV partners
•
Periods between contracts often
require significant “cost carry”, and
investment in start ups |
 55
OIBU Outlook:
Lost work in 1HFY12 replaced by emerging growth
Business Overview:
•
Annual Revenue: circa $141 million
•
# of LACE: 38
•
LACE Rate (annualized): $3.7 million
•
Multiple countries and joint ventures
Outlook:
•
Work in Equatorial Guinea, Bangladesh, as well as increased rates in Trinidad, set
to positively impact second half of FY12
•
Expansion of medium and large work with Lider in Brazil
•
Ongoing dry lease business with Heliservicio, Mexico and MHS, Malaysia
FY12 operating margin expected to be low twenties
Long-term operating margins should remain in the low to mid twenties
|
 56
North America (NABU) strategy is to focus on key
“must win”
contracts
•
Focused on growth of deep water
Gulf of Mexico high end medium
& heavy business
•
Focused on key “must win”, Gulf
of Mexico contracts
•
Build upon or exit Alaska
•
Consider sale of highly
competitive, high risk, low return
single engine Gulf of Mexico
business
•
Continue to focus on cost
controls and efficiencies
•
Look to partner where it makes
sense to do so |
 57
NABU Outlook:
Slow but steady improvement
Business Overview:
•
Annual Revenue: circa $180-200 million
•
# of LACE: 29
•
LACE Rate (annualized): $6.3 million
•
Market Share: 28%
Outlook:
•
FY12 GoM and Alaska drilling permits continue to be issued but at a slow
rate with Large aircraft demand slowly increasing
•
Well positioned to benefit from accelerated return of activity
•
Two new S-92s to arrive GoM in Q3/Q4 for multi-year contracted work
•
Expect more exploration and development drilling to accelerate in FY13 with
large contracts coming up for renewal
FY12 operating margin expected to be singles digits
Long-term
operating
margins
should
increase
to
low
-
mid
teens |
 58
Support and Maintenance
Strategy
•
Prepare for moving out of legacy fleets
Outsourcing capability ahead of the planned decline in fleet
Managing internal capability and capacity, particularly in New Iberia
Optimising direct and indirect staff
•
Consider alternative support options for new types
•
EC225, S-92A, AW139, TM, GE
Exiting Power-by-the-Hour (PbH) on a case-by-case basis
Hybrid PbH or changes to traditional Repair and Overhaul (R&O)
Competitive outsourcing of R&O and other support functions
•
Maximising consignment inventory where appropriate |
 59
Year to date performance
•
Has been disappointing!
•
Total flight hours more or less as anticipated but with shortfalls in NABU and
AUSBU •
Results impacted by:
•
Higher general and salary inflation
•
Failure to recover all of that inflation from contract escalation clauses
•
Project delays, especially in OIBU and AUSBU (personnel carry costs and
aircraft utilization issues)
•
Unprecedented
number
of
aircraft
movements
(9)
and
country
start
ups
in
OIBU (actual $ cost, plus management time, focus and $)
•
A large
number
of
somewhat
extraordinary
items
and
costs
–
most
of
which
could not have been anticipated and will not recur in H2FY12
|
 60
Year to date performance:
Extraordinary items and costs
New type aircraft training costs from prior year
$1.1M
Norwegian pension actuarial change
$2.1M (ongoing)
Norwegian Engineers work to rule salary costs
$1.5M
Lost business resulting from work to rule
$1.5M
Back dated pay review Engineers Norway
$0.7M
GAAP change to vacation liability Norway
$1.3M (upfront cost)
Change from ops to finance leases Norway
$1.6M (ongoing)
S-92 hard landing Scatsta
$0.9M
Closure of the Creole base/write down of facility
$2.7M
FX impact on Lider embedded derivative
$3.9M ($6.6m Q2)
Extraordinary aircraft damage/insurance claims
$0.9M
Loss of Libya work and associated costs
$0.7M
Pilot/Engineer recruitment costs Nigeria (Caverton)
$2.5M
Total YTD
$21.4M
Plus OIBU extraordinary fleet movement (largely Q2) and carry
costs between work |
 61
Year to date performance:
What are we doing about it?
•
Global cost reduction initiative implemented for remainder of FY12
•
Cost efficiencies being sought in UK and New Iberia through Human
Resources shared services
•
Already exploiting additional work in AUSBU and OIBU (commenced after
September 30)
•
Strengthening management team in Norway
•
Switching Finance Managers in Europe
•
Reducing overhead in AUSBU by $500,000 (office and management)
•
Implementing different management support model in OIBU (done) and
consolidating the entire team in Redhill, U.K. (next summer)
|
 62
Summary: Operations
•
Ongoing focus on Safety as we continue to strive for Target Zero
•
The first half of the year has been negatively impacted by several factors,
most of which will not recur in the second half of the year
•
With those issues largely behind us and market share gains/increased
activity already in place, and/or scheduled for the second half of the year,
operational performance will improve in Q3 and especially Q4 (and beyond)
•
New medium and heavy aircraft will be introduced into the fleet strategically
to leverage existing infrastructure and maximize returns
•
Client Promise and a tightness in certain fleets (especially the
heavies), will
lead to higher prices for quality services
•
We will look to innovate in the areas of maintenance, inventory,
and supply
chain if business improvement opportunities warrant it
|
 63
Understanding our unique investment
thesis
Jonathan Baliff, SVP and CFO |
 64
Bristow’s new unique investment thesis and
commitment to our shareholders for the next 5 years
Internal Strategy
Temple:
FY 2012 -
2016
Our New Balanced
and Unique
Investment Thesis
Prudent
Balance Sheet
Management
Growth
Capital Return
External
Commitment:
FY 2012 -
2016 |
 65
Growth: Understanding LACE |
 66
Growth: introduction to LACE and the LACE rate to
describe revenue growth and productivity
•
Large
Aircraft
Equivalent
(LACE)
•
“LACE”
normalizes revenue
and is functionally similar to
BOE in the E&P business
•
“LACE”
combines Large,
Medium and Small aircraft into
a simple and similar form of
revenue producing asset
•
“LACE Rate”, Revenue/LACE,
will become the “Day Rate”
equivalent for our business
LACE Math
100%
per # of Large Aircraft
+50%
per # of Medium Aircraft
+25%
per # of Small Aircraft
=
Total # of LACE Aircraft
x
LACE Rate (Revenue/LACE)
=
Revenue |
 67
LACE and LACE Rate:
historical trends demonstrate Bristow growth
LACE and LACE Rate excludes Bristow Academy, affiliate aircraft,
aircraft held for sale, aircraft construction in progress, and reimbursable
revenue
*LACE calculated for end of year
LACE Rate (Annual)
(in millions)
$4.92
$5.72
$6.14
$6.49
$7.15
$4.00
$4.50
$5.00
$5.50
$6.00
$6.50
$7.00
$7.50
FY07
FY08
FY09
FY10
FY11
323
324
295
290
279
156
161
164
159
153
0
50
100
150
200
250
300
350
FY07
FY08
FY09
FY10
FY11
Consolidated commercial aircraft
Large Aircraft Equivalent (LACE*) |
 68
LACE simplifies fleet description across regions and
time periods
EBU
WASBU
AUSBU
OIBU
NABU
TOTAL
FY07*
37
19
12
35
48
156
FY08
43
20
17
32
49
161
FY09
46
23
22
34
40
164
FY10
42
25
22
35
36
159
FY11
45
22
19
37
31
153
Sept 30, 2011
46
22
20
38
29
155
30%
14%
13%
24%
19%
100%
* Centralized Operations Business Unit had six aircraft in FY07
LACE
The FY07 to FY11 LACE decline is due to the fleet renewal program’s
impacts; FY12 shows LACE growing for the first time in 3
years |
     69
0
2
4
6
8
10
12
FY07
FY08
FY09
FY10
FY11
The general upward LACE Rate trend confirms higher
productivity for newer technology aircraft
WASBU
EBU
AUSBU
NABU
OIBU*
LACE Rate by business unit (annual)
(in $ millions)
($ millions)
EBU
WASBU
AUSBU
OIBU
NABU
TOTAL
FY07
$6.36
$6.45
$5.79
$2.83
$4.65
$4.92
FY08
$6.75
$7.88
$5.52
$3.89
$4.75
$5.72
FY09
$6.95
$8.08
$4.97
$4.30
$6.02
$6.14
FY10
$8.87
$8.34
$5.67
$3.84
$5.23
$6.49
FY11
$8.63
$9.99
$7.92
$3.92
$6.16
$7.15
*As of September 30, 2011 16 LACE aircraft in OIBU were dry leased.
|
 70
Capital allocation and cash flow
generation: Understanding BVA |
 Creating cash thesis: BVA simplified
71 |
 Introducing Bristow Value Added (BVA)
Treat capital like any other cost
•
BVA is the key measure to define financial success
•
BVA is robust enough to captures all trade-offs:
Revenue
After Tax Margins
Asset Intensity
Reinvestment Rate
Bristow Value Added = Gross Cash Flow –
(Gross Operating Assets X Capital Charge)
BVA
= GCF -
(
GOA X 10.5% )
Bristow Value Added calculation for FY2011
$(10.1)
=
$257 -
( $2,543*
X 10.5% )
Differentiation
Sustainability
Risk
* Represents the average gross operating assets for FY2011
72 |
 73
Improvement in BVA year-over-year is proven to drive
share price appreciation
•
Cash flow based and
consistent with discount
cash flow valuation
•
Enterprise Value (EV)
equals Assets + PV(BVA)
•
PV(BVA) estimated as
simply capitalized BVA
•
Explanation of valuation is
strong in the capital markets
Based on largest 1000 US Non-Financial Companies, January 2011
|
 BVA
calculation: Gross Cash Flow (GCF) is analogous to after tax EBITDA
•
Gross Cash Flow (GCF) is similar to after tax EBITDA. Empirical research
demonstrates that Gross Cash Flow (rather than accounting profit
measures
such as operating income or earnings) better relate to how investor’s value
companies over time.
•
The use of GCF, rather than an income measure, ensures BVA is a cash
based measure.
•
GCF is designed to be consistent with our definition of Gross Operating
Assets and the capital charge.
“Adjustments”
to GCF:
•
Plus: Rent (Add Back to Reverse
the Charge)
•
Less: Taxes
•
Plus (Less): Strategic Equity
Investments
“Exclusions”
from GCF:
•
D&A
•
Interest Expense (Income)
•
Gain/Loss on Sale of Assets
•
Equity Earnings
74 |
 BVA
calculation: Gross Operating Assets (GOA) is aligned with GCF
•
Gross Operating Assets (GOA) is a
measure of the tangible resources
deployed into the business
•
They are the assets which contribute to
Bristow’s GCF generation and ongoing
operations.
“Adjustments”
to GOA
•
Gross Book Value PP&E
•
Capitalized Operating Leases
•
Strategic Equity Investments
•
Gains/Losses on Sale of Aircraft
“Exclusions”
from GOA
•
Cash
•
Goodwill and Intangibles
•
Equity Investments
75 |
 BVA
calculation: Our current capital charge is 10.5%
•
Core concept: investors require a minimum rate
of return on their investment in Bristow
•
Bristow’s Capital charge relates but is higher
than this minimum rate of return so for
purposes of calculating BVA, the current Capital
Charge has been designated at 10.5%
•
By fixing the Capital Charge, operating
managers can “focus”
on the operational levers
available to improve BVA without worrying
about shifts in the capital markets
•
The Capital Charge sets a baseline, but what
really matters is the CHANGE in BVA year-on
year, as some regions earn higher than this
10.5%
76 |
 BVA
implementation at Bristow has taken a Five Step Process and has been ongoing
for 7 months 1
Define BVA
Performance
Drivers
2
Integrate BVA into
Business
Management
3
Capital Advisory
Review Board
4
Implement BVA
Incentives
5
Conduct
Practical BVA
Training
Comprehensive
Understandable
Objective
Considerations:
-
Asset Values
-
Leases
-
Investments
-
Taxes
Required Return
Business plans
Budgets
Forecasts
Capex
Pricing
M&A
Diagnostic tools
Team of BVA
experts to help
reverse rising asset
intensity
BVA cash on cash
analytics:
-
Region
-
Customer
-
A/C Class
Improvements via
capital deployment,
asset sales and
inventory control
Emphasize BVA
Continuous
Improvement
Considerations:
-
BVA Goals
-
Sensitivity
-
BU vs Corp
-
Other Factors
-
etc.
Practical, case
based training on
how BVA should
affect decisions
Three Rounds:
-
Introduce BVA
-
BVA Roll Out with
Incentives
-
BVA Lessons
Learned (6-9 months
later)
77 |
 Example: BVA is “Beyond ROCE”
•
Capital deployment timing is critical to long term value
creation and is ignored in ROCE:
Sales
Margin
Cash Flow
Capital
% ROCE
Cash Flow
10% Capital Charge
BVA
$2500
10%
$250
$1,000
25%
$250
$(100)
$150
Analysis simplified for illustration purposes
“THE PAST”
evaluation of
a new $2000
investment
Evaluation
Using BVA
$2000
5%
$100
$500
20%
$100
$(50)
$50
$4500
7.8%
$350
$1,500
23.3%
$350
$(150)
$200
Today
New
Combined
78 |
 Prudent balance sheet management:
Understanding our new financing
strategy
79 |
 Bristow needs to combine capital efficiency with
our historic commitment to capital prudency
FY11 select financial metrics
•
Bristow is well capitalized, but is not currently creating adequate
value because our returns on capital do not exceed the 10.5% capital
charge
Adjusted Debt / Adjusted Total Capital
35.8%
EBITDAR / (Interest + Rent)
3.0x
Bristow Value Added (BVA)
$(10.1)
Adjusted EPS
$3.07
•
Incremental leverage and operating leases are a way to help
operations earn more positive BVA and increase competitiveness
80 |
 81
Capital efficiency and prudent balance sheet
management: Where we want to go
•
Reduce construction in progress (CIP*)
•
Use more operating leases for aircraft
•
Faster sale of unprofitable aircraft and
redeployment of cash balances
•
Increased BVA by committing less capital for
same cash flow generated
•
Increased competitiveness as capital efficiency
reduces our cost structure
* CIP (Construction in Progress) payments made to aircraft manufacturers before
aircraft is delivered. Methods for
change
Expected
outcomes |
 82
Capital efficiency and prudent balance sheet
management: How we get there
Liquidity
Capital Return
Capex vs
Leases
•
Minimum total liquidity of $200M
•
Quarterly dividend growth of 10-15% per annum
•
Excess cash may be distributed to shareholders with
specifics approved by Board of Directors
•
Balance use of operating cash flow + a/c sales with leases
for a/c purchases and other capex
Capital
Structure
•
Leases used for initially no more than 20-30% of total
Bristow LACE
•
Adjusted Debt/Capital Ratio less than 45% |
 83
Operating leases reduce capital commitment,
create optionality, and increase competitiveness
•
Basic lease terms are more value
added than in the past
•
Pre-delivery payments to be
made by lessor to reduce CIP
•
End of lease term options –
renewal options, purchase or
return
•
Lease rental cost compares very
favorably to our WACC given
Bristow under-exposure to market
•
Rule of Thumb: lease capital
commitment and imputed debt
amount is about half of a total A/C
purchase price |
 84
Capital efficiency and prudent balance sheet management:
Capital return perspectives
Share
Repurchase
Regular
Dividend
•
Signals management confidence in future
business stability and cash generation
•
Cash flow generation allows for 10-15%
annual increase in dividends
•
Payout ratio and dividend coverage to be
monitored as part of increases
•
Signals management confidence in value of
business
•
Value is key to decision with net book value
being one goal post |
 85
Bristow will be a unique, balanced investment
The “Growth Price Signal”
is provided
by the commercial markets and outlook
for ANNUAL EPS Growth
Cash
Flow Yield
=
OCF + A/C sales –
Depreciation
Market Capitalization
FY07 –
FY11 EPS
Growth
We will aim to provide a balanced return, but some
years we will “hit the gas”
depending on price signals
The “Capital Return Price Signal”
is
provided by the financial markets and
our current free cash flow yield
Today this equals 4.5 %
7.1 %
=
FY12 EPS Guidance: $3.05 -
$3.30 |
 86
Operating
leases
Operating
leases
Putting it all together for FY12-16:
Over $700 million available for further growth and capital return
116
735
1,378
103
1,121
238
497
FY11 balance
Operating cash flow
Asset sales
Aircraft purchases
Other capex
Maintain optimal
capital structure
Available for
dividend/growth/other
capital return |
 87
Moving forward
Bill Chiles, President and CEO |
 88
Today’s key takeaways
•
Secular growth opportunities that were identified for the
next five years underpin Bristow’s value creation
•
Client Promise will enhance Bristow’s premier brand and
drive value creation
•
Disciplined capital allocation through BVA and prudent
balance sheet management will provide Bristow’s firm
foundation for this growth and value creation
•
Bristow will balance growth and capital return to create a
unique investment vehicle in the oil services sector |
 89
Appendix |
 90
Aircraft Fleet –
Medium and Large
As of September 30, 2011
Next Generation Aircraft
Medium capacity 12-16 passengers
Large capacity 18-25 passengers
Mature Aircraft Models
Aircraft
Type
No. of PAX
Engine
Consl
Unconsl
Total
Ordered
Large Helicopters
AS332L Super Puma
18
Twin Turbine
30
-
30
-
Bell 214ST
18
Twin Turbine
-
-
-
-
EC225
25
Twin Turbine
18
-
18
2
Mil MI 8
20
Twin Turbine
7
-
7
-
Sikorsky S-61
18
Twin Turbine
2
-
2
-
Sikorsky S-92
19
Twin Turbine
25
2
27
8
82
2
84
10
LACE
76
Medium Helicopters
AW139
12
Twin Turbine
7
5
12
-
Bell 212
12
Twin Turbine
3
22
25
-
Bell 412
13
Twin Turbine
36
35
71
-
EC155
13
Twin Turbine
4
-
4
-
Sikorsky S-76 A/A++
12
Twin Turbine
20
6
26
-
Sikorsky S-76 C/C++
12
Twin Turbine
54
28
82
-
124
96
220
-
LACE
57 |
 91
Training Helicopters
AS355
4
Twin Turbine
2
-
2
-
Bell 206B
6
Single Engine
8
-
8
-
Robinson R22
2
Piston
11
-
11
-
Robinson R44
2
Piston
2
-
2
-
Sikorsky 300CB/Cbi
2
Piston
46
-
46
-
AS350BB
4
Turbine
-
36
36
-
Fixed Wing
1
-
1
-
70
36
106
-
-
Fixed Wing
3
38
41
-
Total
366
186
552
10
TOTAL LACE (Large Aircraft Equivalent)*
154
10
Aircraft Fleet –
Small, Training and Fixed
As of September 30, 2011 (continued)
Next Generation Aircraft
Mature Aircraft Models
Small capacity 4-7 passengers
Training capacity 2-6 passengers
•LACE does not include held for sale, training and fixed wing
helicopters Aircraft
Type
No. of PAX
Engine
Consl
Unconsl
Total
Ordered
Small Helicopters
Bell 206B
4
Turbine
2
2
4
-
Bell 206 L-3
6
Turbine
4
6
10
-
Bell 206 L-4
6
Turbine
30
1
31
-
Bell 407
6
Turbine
41
-
41
-
BK 117
7
Twin Turbine
2
-
2
-
BO-105
4
Twin Turbine
2
-
2
-
EC135
7
Twin Turbine
6
3
9
-
Agusta 109
8
Twin Turbine
-
2
2
-
87
14
101
-
LACE
21 |
 92
Consolidated Fleet Changes and Aircraft Sales for
Q2 FY12
Q 1 FY12
Q 2 FY12
YTD
Fleet Count Beginning Period
373
372
373
Delivered
EC225
2
2
4
S-92
1
1
Total Delivered
2
3
5
Removed
Sales
(3)
(5)
(8)
Other*
(4)
(4)
Total Removed
(3)
(9)
(12)
372
366
366
* Includes net lease returns and commencements
# of A/C
Sold
Cash
Received*
Gain/ Loss*
Q1 FY 12
3
2,478
1,525
Q2 FY 12
5
13,152
3,004
Totals
8
15,630
4,529
* Amounts stated in thousands
Aircraft held for sale by BU
EBU
WASBU
AUSBU
OIBU
NABU
Total
Large
3
-
3
-
-
6
Medium
2
1
4
2
2
11
Small
-
2
-
-
-
2
Total
5
3
7
2
2
19
|
 93
#
Helicopter
Class
Delivery Date
Location
Contracted
#
Helicopter
Class
Delivery Date
Location
2
Large
December 2011
NABU
2 of 2
2
Medium
December 2012
EBU
1
Large
December 2011
EBU
1 of 1
3
Large
December 2012
EBU
1
Large
March 2012
EBU
1 of 1
2
Medium
June 2013
EBU
2
Large
June 2012
EBU
2 of 2
1
Large
September 2013
AUSBU
4
Large
September 2012
EBU
1
Medium
December 2013
OIBU
6 of 10
4
Large
December 2013
EBU
1
Large
December 2013
OIBU
1
Medium
March 2014
OIBU
1
Large
March 2014
OIBU
2
Medium
June 2014
OIBU
1
Large
June 2014
EBU
1
Medium
September 2014
OIBU
1
Medium
September 2014
AUSBU
1
Large
September 2014
AUSBU
2
Medium
December 2014
AUSBU
1
Large
December 2014
AUSBU
1
Large
March 2015
AUSBU
1
Large
June 2015
AUSBU
1
Large
September 2015
EBU
1
Large
December 2015
EBU
1
Large
March 2016
OIBU
1
Large
June 2016
EBU
1
Large
September 2016
OIBU
1
Large
December 2016
EBU
1
Large
March 2017
OIBU
1
Large
June 2017
EBU
1
Large
September 2017
OIBU
1
Large
December 2017
OIBU
37
ORDER BOOK
OPTIONS BOOK
Order and options book as of September 30, 2011
Our order and options book reflects
future contracted and line-of-sight
work for the next five years with 10
large aircraft ordered and 25 large
and 12 medium aircraft on option.
* Subsequent to September 30, 2011, we entered into agreements to purchase or lease
8 new technology large aircraft for approximately $144 million that are not
reflected in the table above. Fair market value of our fleet is ~$1.9
billion as of September 30, 2011. |
 94
Gross Cash Flow Presentation
(in millions)
Gross Cash Flow Reconciliation
FY2007
FY2008
FY2009
FY2010
FY2011
Net Income
74
104
123
112
132
Depreciation and Amortization
43
54
66
75
91
Interest Expense
11
24
35
42
46
Interest Income
(9)
(13)
(6)
(1)
(1)
Rent
19
23
21
18
29
Other Income/expense-net
9
(2)
(3)
(3)
4
Earnings of Discontinued Operations
0
4
0
0
0
Gain/loss on Asset Sale
(11)
(9)
(45)
(19)
(10)
Tax Effect from Special Items
2
2
10
4
(15)
Earnings (losses) from Unconsolidated Affiliates, Net
(11)
(13)
(13)
(12)
(20)
Non-controlling Interests
1
(0)
2
1
1
Gross Cash Flow
$128
$174
$189
$218
$257 |
 95
Gross Operating Asset Presentation
(in millions)
Adjusted Gross Operating Assets Reconciliation
FY2007
FY2008
FY2009
FY2010
FY2011
Total Assets
1,506
1,977
2,335
2,495
2,663
Accumulated Depreciation
300
317
351
404
446
Capitalized Operating Leases
61
63
90
97
132
Cash and Cash Equivalents
(184)
(290)
(301)
(78)
(116)
Assets from Discontinued Operations
(26)
0
0
0
0
Investment in Unconsolidated Entities
(47)
(52)
(20)
(205)
(209)
Goodwill
(7)
(16)
(45)
(32)
(32)
Prepaid Pension Cost
0
0
0
0
0
Intangibles
(3)
(3)
(10)
(9)
(7)
Assets Held for Sale: Net
(8)
(6)
(4)
(17)
(32)
Assets Held for Sale: Gross
13
11
11
39
71
Accounts Payable
(40)
(50)
(45)
(49)
(57)
Accrued Maintenance and Repairs
(12)
(13)
(10)
(11)
(16)
Other Accrued Taxes
(9)
(2)
(3)
(3)
(4)
Accrued Wages, Benefits and Related Taxes
(36)
(36)
(40)
(36)
(35)
Other Accrued Liabilities
(17)
(22)
(20)
(15)
(20)
Income Taxes Payable
(3)
(6)
0
(2)
(3)
Deferred Revenue
(16)
(15)
(18)
(19)
(10)
ST Deferred Taxes
(18)
(9)
(6)
(10)
(12)
LT Deferred Taxes
(76)
(92)
(120)
(143)
(148)
Adjusted Gross Operating Assets before Lider
$1,376
$1,757
$2,144
$2,408
$2,611 |
 96
Operating margin trend
2008
2009
As Reported
Full Year
Full Year
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
FY
Q1
Q2
EBU
23.6%
19.3%
17.2%
16.7%
16.1%
18.1%
17.0%
18.0%
18.4%
19.6%
18.8%
18.8%
17.3%
16.8%
WASBU
17.9%
21.5%
24.9%
29.3%
25.4%
34.7%
28.5%
26.5%
29.5%
29.8%
24.0%
27.4%
20.6%
25.2%
NABU
14.5%
12.1%
8.9%
9.7%
3.3%
2.2%
6.1%
10.1%
16.1%
4.2%
-4.0%
7.5%
3.6%
5.3%
AUSBU
17.2%
5.9%
20.1%
23.1%
24.5%
24.5%
23.2%
22.5%
16.3%
17.2%
17.4%
18.2%
10.0%
1.7%
OIBU
17.3%
27.0%
21.8%
35.1%
15.5%
1.8%
19.2%
6.9%
30.6%
27.7%
45.8%
28.4%
33.6%
5.8%
Consolidated
16.0%
17.8%
15.4%
18.4%
13.1%
15.2%
15.5%
13.6%
17.1%
14.7%
16.1%
15.4%
11.3%
2.9%
New methodology (operating income/operating revenue)
2008
2009
Revised *
Full Year
Full Year
Q1
Q2
Q3
Q4
FY
Q1
Q2
Q3
Q4
FY
Q1
Q2
EBU
29.2%
24.3%
20.9%
20.5%
19.8%
22.4%
20.8%
21.4%
22.1%
25.4%
23.6%
23.6%
21.5%
20.7%
WASBU
19.4%
22.8%
26.8%
30.0%
27.3%
35.7%
29.9%
27.1%
30.5%
30.4%
26.1%
28.6%
21.5%
26.4%
NABU
14.5%
12.2%
8.9%
9.7%
3.3%
2.2%
6.2%
10.2%
16.4%
4.2%
-4.0%
7.6%
3.6%
11.0%
AUSBU
17.9%
6.3%
21.0%
24.5%
25.5%
25.6%
24.3%
23.6%
17.8%
18.8%
19.1%
19.8%
11.1%
1.9%
OIBU
17.4%
27.3%
21.9%
35.9%
15.3%
1.9%
19.4%
6.9%
30.9%
28.2%
47.1%
28.8%
34.5%
5.9%
Consolidated **
16.4%
14.7%
15.9%
17.4%
14.2%
13.9%
15.3%
14.0%
18.0%
15.3%
18.3%
16.4%
12.2%
13.0%
* - All amounts revised to exclude reimbursable revenue from denominator.
** - Revised to exclude aircraft sales from numerator.
2012
2010
2011
2012
2010
2011 |
 97
EBIDTAR reconciliation
($ in millions)
2000
2001
2002
2003
2004
Income from continuing operations
$8.8
$27.9
$42.5
$40.3
$49.6
Income tax expense
3.8
13.3
19.1
17.5
18.5
Interest expense
18.5
18.4
15.8
14.9
16.8
Depreciation and amortization
32.0
33.1
33.9
37.5
39.4
EBITDA Subtotal
63.1
92.7
111.4
110.2
124.3
Aircraft rental expense
–
–
–
–
–
EBITDAR
$63.1
$92.7
$111.4
$110.2
$124.3
($ in millions)
2005
2006
2007
2008
2009
Income from continuing operations
$49.2
$54.5
$72.5
$107.7
$125.5
Income tax expense
$20.4
$14.7
$38.8
$44.5
$50.5
Interest expense
$15.7
$14.7
$10.9
$23.8
$35.1
Gain on disposal of assets
($0.1)
($10.6)
($9.4)
($9.1)
Depreciation and amortization
40.5
42.1
42.5
54.1
65.5
EBITDA Subtotal
125.8
125.8
154.1
220.7
267.6
Aircraft rental expense
–
2.1
6.3
6.3
8.2
EBITDAR
$125.8
$127.9
$160.4
$227.0
$275.8
March 31,
March 31, |
 98
EBIDTAR reconciliation (continued)
($ in millions)
2010
2011
Income from continuing operations
$113.5
$133.3
Income tax expense
$29.0
$7.1
Interest expense
$42.4
$46.2
Gain on disposal of assets
(18.7)
(10.2)
Depreciation and amortization
74.7
90.9
EBITDA Subtotal
240.9
267.3
Aircraft rental expense
9.1
5.9
EBITDAR
$250.1
$273.2
($ in millions)
YTD FY11
YTD FY12
TTM as of
9/30/2010
9/30/2011
9/30/2011
Income from continuing operations
$59.8
$24.2
$97.7
Income tax expense
11.9
4.7
(0.1)
Interest expense
22.5
18.4
42.1
Gain on disposal of assets
(3.6)
0.2
(6.4)
Depreciation and amortization
40.3
48.1
98.7
EBITDA Subtotal
130.8
95.6
232.1
Aircraft rental expense
3.0
2.8
5.8
EBITDAR
$133.7
$98.4
$237.9
March 31, |
 99
GAAP reconciliation |
 100
Bristow Group Inc. (NYSE: BRS)
2000 West Sam Houston Parkway South
Suite 1700, Houston, Texas 77042
t
713.267.7600
f
713.267.7620
bristowgroup.com
Contact Us |