 First
quarter FY15 earnings presentation Bristow Group Inc.
August 5, 2014
Exhibit 99.1 |
 2
First quarter FY15 earnings call agenda
Introduction
CEO remarks and operational highlights
Current and future financial performance
Closing remarks
Questions and answers
Linda McNeill, Director Investor Relations
Jonathan Baliff, President and CEO
John Briscoe, SVP and CFO
Jonathan Baliff, President and CEO |
 3
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 and adjusted earnings growth guidance, expected operating
margins, cash flow stability and other financial projections; future dividends, share
repurchases and other uses of excess cash; plans, strategies and objectives of our management,
including our plans and strategies to grow earnings and our business, our general strategy going forward, our business model
and our operational excellence initiative; expected actions by us and by third parties, including our
customers, competitors and regulators; impact of grounding and the effects thereof; 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; expected input of our investment in Eastern Airways;
aircraft delivery dates 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 fluctuations in the demand for our services; fluctuations in worldwide prices of and demand for natural gas and oil;
fluctuations in levels of natural gas and oil exploration, development and production activities; the
impact of competition; actions by customers; the risk of reductions in spending on aircraft
services by governmental agencies; changes in tax and other laws and regulations; changes in
foreign exchange rates and controls; risks associated with international operations; operating risks inherent in our business,
including the possibility of declining safety performance; general economic conditions including the
capital and credit markets; our ability to obtain financing; the possibility that we may lack
sufficient liquidity to continue to repurchase shares or pay a quarterly dividend; the risk of
grounding of segments of our fleet for extended periods of time or
indefinitely; our ability to re-deploy our aircraft to regions with greater demand; our
ability to acquire additional aircraft and dispose of older aircraft through sales into the aftermarket; the possibility that we or our
suppliers will be unable to deliver new aircraft on time or on budget; the possibility that we do not
achieve the anticipated benefit of our fleet investment program; availability of employees;
political instability, war or acts of terrorism in any of the countries where we operate; and
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, 2014 and our Quarterly Report on Form 10-Q for the
quarter ended June 30, 2014. 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. |
 4
Chief Executive Officer comments
Jonathan
Baliff,
President
and
CEO |
 5
Operational safety review
1)
AAR includes consolidated commercial operations only
2)
TRIR includes consolidated commercial operations, corporate and Bristow Academy
employees Total Recordable Injury Rate
2
(TRIR) per 200,000
man hours (cumulative)
Commercial Air Accident Rate
1
(AAR) per 100,000
flight hours (fiscal year)
0.54
0.53
0.53
0.96
0.00
0.00
0.00
1.00
2.00
3.00
FY10
FY11
FY12
FY13
FY14
YTD FY15
0.59
0.42
0.27
0.31
0.26
0.07
0.00
1.00
2.00
3.00
FY10
FY11
FY12
FY13
FY14
YTD FY15 |
 6
Q1 FY15 highlights
Adjusted EPS and adjusted EBITDAR amounts exclude gains and losses on dispositions
of assets and any special items during the period. See reconciliation of these items to GAAP measures in the
appendix hereto and in our earnings release for the quarter ended June 30,
2014. Bristow Value Added (BVA) is calculated by taking gross cash flow less
the product of gross operating assets times a capital charge of 10.5%. Example calculation can be found in the appendix hereto.
Please see our earnings release and slide 21 for more information regarding earnings
guidance range. *
**
***
•
Excellent revenue growth in Q1 FY15 contributed to GAAP EPS up 66.2% and
adjusted EPS up 32.0% year-over-year
•
Adjusted EBITDAR increased both year-over-year and sequentially
reflecting increases in LACE, LACE rate, operational scale and the
favorable impact of foreign exchange
•
Q1
FY15
absolute
BVA
is
positive
$24.5M,
$23.0M
increase
from
Q1
FY14,
with
cash flow from operations of $37.3 million, up ~ 2.6% year-over-year**
•
EPS
guidance
for
the
full
FY15
is
reaffirmed
at
$4.70
-
$5.20***
•
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 from Q1 FY14, 2.2%
decrease from Q4 FY14) •
Q1
adjusted
EBITDAR*
of
$127.6M
(24.5%
increase
from
Q1
FY14,
3.8%
increase
from
Q4
FY14) |
 7
•
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 average rate of 4% per annum
•
Offshore exploration projects still have momentum however
planning and procurement lead times are extending
•
Petrobras issued tenders with start-up from mid CY15 to mid
CY16
requiring
31
aircraft
(3
-
7
incremental)
contributing
to
further tightness in supply
•
We continue to receive search and rescue inquiries
Market environment outlook
Source: Industry reports and internal research |
 8
•
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 increase in activity under
existing and new contracts over the comparable
quarter
•
Adjusted EBITDAR increased 65.5% to $68.7M in Q1
FY15 from $41.5M in Q1 FY14 with adjusted
EBITDAR margin of 34.1% in Q1 FY15 vs. 30.3% in
Q1 FY14
Outlook:
Synergistic opportunities are being identified with
Eastern
Two year contract for ½
LACE with options to
extend commencing in Q2 FY15
Three year contract with a new client for one LACE
commencing in Q4 FY15
Europe (EBU)
* Operating revenue and adjusted EBITDAR percentages exclude corporate and
other FY15 adjusted EBITDAR margin expected to be
~ low thirties due to Eastern Airways addition |
 9
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 revenue in Q1 FY15 and $50.8M since
the beginning of the contract
•
Construction of the first two new UK SAR bases
continues in Inverness and Humberside and due to
become fully operational in Q1 FY16
Outlook:
UK SAR implementation and start-up are on
schedule and on budget
Expect to complete lease financing of the 11
SAR S-92s in Q2 FY15 and several AW189s by
Q4 FY15 |
 10
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 decreased to $20.4M in Q1 FY15
from $23.7M in Q1 FY14 and adjusted EBITDAR
margin decreased to 25.6% in Q1 FY15 vs. 31.3% in
Q1 FY14 due to salary costs related to unplanned
maintenance and the introduction of a new aircraft
type
Outlook:
Extensions of contracts are expected to continue
We are introducing new technology medium
aircraft into this region in FY15
High level of training costs in Q1 associated with
the introduction of the new aircraft type is not
expected to continue
* Operating revenue and adjusted EBITDAR percentages exclude corporate and
other FY15 adjusted EBITDAR margin expected to be
~ low thirties |
 •
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 closure of our Alaska operations
•
Adjusted EBITDAR increased 34.3% to $22.9M in
Q1 FY15 vs. $17.0M in Q1 FY14 and adjusted
EBITDAR margin increased to 39.7% vs. 29.2% in
Q1 FY14,
driven by a change in the contracted fleet
mix and the reversal of bad debt expense
Outlook:
Deepwater drilling activity continues to increase
in GoM
GoM restructuring success evidenced through
awards of two additional LACE in the past six
months
Facility improvements are on schedule and on
budget
North America (NABU)
* Operating revenue and adjusted EBITDAR percentages exclude corporate and
other Bristow operated bases
Cougar operated bases
FY15 adjusted EBITDAR margin
expected to be ~ low-to-mid thirties
11 |
 12
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 $11.0M in
Q1 FY15 from $6.7M in Q1 FY14 and adjusted
EBITDAR margin increased to 23.7% in Q1 FY15
from 17.7% in Q1 FY14 due to the start of INPEX
and other new contracts
Outlook:
Business underpinned by longer term contracts,
including contracts that have not commenced
Additional ½
LACE to start in August 2015
under one year contract
Continue to retire old technology LACE as part
of our fleet plan
* Operating revenue and adjusted EBITDAR percentages exclude corporate and
other Great
Australian
Bight
FY15 adjusted EBITDAR margin expected to
be ~ low twenties |
 13
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 contract in
Tanzania and increased activity in Trinidad
•
Adjusted EBITDAR decreased to $14.7M in Q1 FY15
vs. $22.2M in Q1 FY14 and adjusted EBITDAR margin
decreased to 41.4% in Q1 FY15 from 67.4% in Q1 FY14
primarily due to a decrease in earnings from
unconsolidated affiliates and aircraft dry lease contracts
ending in Malaysia
•
Unconsolidated earnings from Líder decreased to $4.4M
in Q1 FY15 from $8.6M in Q1 FY14
* Operating revenue and adjusted EBITDAR percentages exclude corporate and
other Consolidated in OIBU
Unconsolidated Affiliate
Outlook:
FY15 adjusted EBITDAR margin expected to be ~ low forties
New opportunities in Brazil, Ghana, Malta, Mozambique and Russia
One LACE new contract for up to one year in Suriname/Guyana
starting in Q1 FY16
½
LACE new contract in Trinidad for nine months that started in Q1 FY15
|
 14
Líder update
Líder update
* Reconciliation of adjusted EBITDAR, leverage and BVA provided in the
appendix Líder adjusted EBITDAR*
•
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 Líder
was $3.6M* in Q1 FY15 (June 30, 2014)
•
Adjusted debt to TTM adjusted EBITDAR
increased to 3.1x as of June 30, 2014 from 2.8x
as of September 30, 2013
Outlook:
New contracts starting in CY14
Petrobras is pressing ahead with
changing its fleet mix to large
aircraft
0
20
40
60
80
100
120
140
CY09
CY10
CY11
CY12
CY13
YTD CY14
Comparable period
Full year
51.0
56.0
59.1
70.5
123.2
69.5
60.3 |
 15
Financial discussion
John
Briscoe
,
SVP
and
CFO |
 16
$1.00
$1.32
$0.20
$0.15
$0.03
Q1 FY14
Operations
Corporate and Other
FX Changes
Q1 FY15
Financial highlights:
Adjusted EPS and adjusted EBITDAR summary year-over-year
Q1 FY14 to Q1 FY15 adjusted EPS bridge
$102.5
$127.6
$22.0
$5.9
$2.8
Q1 FY14
Operations
Corporate and Other
FX Changes
Q1 FY15
Q1 FY14 to Q1 FY15 adjusted EBITDAR bridge (in millions)
Note: Adjusted EPS and adjusted EBITDAR amounts exclude gains and losses on
dispositions of assets and any special items during the period. See reconciliation of these items
to GAAP in our earnings release for the quarter ended June 30, 2014.
|
 17
LACE and LACE rate continue to increase led by new
technology aircraft and improved utilization/terms
($ in millions)
* See appendix hereto for more information on LACE and LACE
rate. Consolidated commercial aircraft, LACE and LACE rate exclude Bristow Academy, affiliate aircraft, fixed
wing aircraft, aircraft held for sale, aircraft construction in progress, and
reimbursable revenue FY15 average LACE guidance range reaffirmed at 161 - 167 and average LACE
rate guidance range of $9.50
- $10.50 million
279
264
261
241
241
153
149
158
158
163
0
50
100
150
200
250
300
FY11
FY12
FY13
FY14
YTD FY15
Consolidated commercial aircraft
Large Aircraft Equivalent (LACE)*
153
149
158
158
163
$7.15
$7.89
$8.35
$9.34
$9.55
$-
$2
$4
$6
$8
$10
$12
140
150
160
170
FY11
FY12
FY13
FY14
YTD FY15
LACE*
LACE Rate* |
 18
Bristow Value Added (BVA) drives improving Gross Cash
Flow (GCF) performance
•
Q1
FY15
absolute
BVA
is
positive
$24.5M,
$23.0M
increase
from
Q1
FY14
•
Year-over-year change in BVA is driven by:
Excellent revenue growth
Margin improvement
Capital efficiency efforts
•
EBU and NABU are key improved performers year-over-year
Note: BVA is computed by subtracting a capital charge (10.5%) for the use of gross
invested capital from after tax operating cash flow. GCF Return % is based
on trailing twelve months after tax operating cash flows (Gross Cash Flow) over average quarterly gross invested capital (Gross Operating Assets).
Refer to the appendix for additional details.
0
10
20
30
40
50
60
70
80
90
100
Q1 FY14
Q2 FY14
Q3 FY14
Q4 FY14
Q1 FY15
$1.5
$22.4
$12.1
$28.7
$24.5
11.2%
11.8%
11.8%
12.4%
13.0%
0%
3%
6%
9%
12%
15% |
 19
Our progress on BVA yields stronger liquidity for growth,
dividends and share repurchases . . .
261
415
402
530
331
1)
See 10-Q for more information on cash flow provided by operating
activities 2)
At period end
0
50
100
150
200
250
300
151
267
232
231
26
53
55
36
37
FY11
FY12
FY13
FY14
YTD FY15
Comparable quarter
Full year
100
200
300
400
500
600
116
262
216
204
134
144
140
199
326
198
FY11
FY12
FY13
FY14
YTD FY15
Undrawn borrowing capacity
Cash
Net cash provided by operating activities
1
Total liquidity
2 |
 20
. . . as we execute on our capital deployment strategy
* Reinvestment rate equals capex divided by adjusted EBITDAR less tax
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
•
Q1 TTM gross cash flow returns 13% and trending up
•
Target 10 to 15% annual adjusted EPS growth
Create an efficient capital structure
•Retire high cost debt
•Target leasing at 30-35% of LACE
Reinvest at rates above our cost of capital
•
High reinvestment rates correlate to high TSR rates
•
Reinvested
over
100%
in
past
3
years
–
FY14
~165%*
before
accretive
M&A
Return cash to shareholders
•
Target 20 to 30% dividend payout ratio of forward adjusted EPS
•
Opportunistic
share
repurchases
based
on
intrinsic
value
or
fair
value |
 21
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:
* Assuming FY15 revenue earned in same regions and same mix as in FY14
Long term adjusted EPS growth of 10 -
15% combined with a 20 -
30%
dividend payout policy based on forward adjusted EPS reflects
management’s commitment to deliver a stable, growing and predictable total
return for shareholders
Average LACE (Large AirCraft
Equivalent)
~161 - 167
Interest expense
~ $30 - $35M
Average LACE Rate
~ $9.50 - $10.50M
Rent expense (a/c only)
~$137 - $142M
G & A expense (all inclusive)
~ $190 - $200M
Tax rate*
~ 21 - 25%
Depreciation expense
~ $97 - $102M
Adj. EPS guidance
$4.70 - $5.20
FY15 guidance |
 22
. . . 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 Bristow’s exceptional services continues to be
strong
•
Strong BVA and operating cash flow performance continues
•
UK SAR implementation and start-up are on schedule and on
budget
•
Bristow’s fiscal year 2015 adjusted EPS guidance range
reaffirmed at $4.70 -
$5.20 |
 23
Appendix |
 24
Organizational chart -
as of June 30, 2014
Business Unit
(% of FY15 operating revenue)
Corporate
Region
( # of aircraft / # of locations)
Joint Venture
(# of aircraft)
Key
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
* Includes corporate and other
Bristow
NABU
13%
U.S. GoM
–
61/6
Trinidad
–
11/1
Mexico –
2/1
Brazil –
11/4
Lider -
86
UK
–
79/6
Norway
–
21/4
Nigeria –
47/6
Australia
–
29/10
Other –
7/1
Russia
–
7/3
Egypt –
–/
–
Turkmenistan
–
2/1
PAS -
45
AUSBU
11%
EBU
46
%
Florida –
54/1
Louisiana
–
13/1
U.K.
–
3/1
WASBU
18%
OIBU
8%
BRS Academy
4%*
Canada
–
8/2
Malaysia -
2/1
Nevada
–
3/1
Tanzania
–
3/1 |
  25
Aircraft Fleet –
medium and large
as of June 30, 2014
Next Generation Aircraft
Medium capacity 12-15 passengers
Large capacity 16-25 passengers
Mature Aircraft
Fair
market
value
of
our
owned
fleet
is
~$2.2
billion
and
leased
fleet
is
~$900
million
Aircraft
Type
No. of PAX
Engine
Consl
Unconsl
Total
Ordered
Large Helicopters
AS332 L Super Puma
18
Twin Turbine
18
-
18
-
AW189
16
Twin Turbine
2
-
2
15
EC175
16
Twin Turbine
-
-
-
5
EC225
19
Twin Turbine
22
-
22
2
Mil Mi 8
20
Twin Turbine
7
-
7
-
Sikorsky S-61
18
Twin Turbine
2
-
2
-
Sikorsky S-92
19
Twin Turbine
60
7
67
8
111
7
118
30
LACE
105
Medium Helicopters
AW139
12
Twin Turbine
18
2
20
-
Bell 212
12
Twin Turbine
-
14
14
-
Bell 412
13
Twin Turbine
25
19
44
-
EC155
13
Twin Turbine
1
-
1
-
Sikorsky S-76A/A++
12
Twin Turbine
3
5
8
-
Sikorsky S-76C/C++
12
Twin Turbine
51
34
85
-
Sikorsky S-76D
12
Twin Turbine
3
-
3
7
101
74
175
7
LACE
48 |
 26
Aircraft Fleet –
small, training and fixed
as of June 30, 2014 (continued)
Mature Aircraft
Small capacity 4-7 passengers
Training capacity 2-6 passengers
* LACE does not include held for sale, training helicopters and fixed wing
Next Generation Aircraft
Aircraft
Type
No. of PAX
Engine
Consl
Unconsl
Total
Ordered
Small Helicopters
Agusta A109
6
Twin Turbine
-
1
1
AS 350BB
4
Turbine
-
2
2
Bell 206B
4
Turbine
1
2
3
-
Bell 206 L Series
6
Turbine
5
6
11
-
Bell 407
6
Turbine
35
-
35
-
BK-117
7
Twin Turbine
2
-
2
-
EC135
7
Twin Turbine
2
3
5
-
45
14
59
-
LACE
11
Training Helicopters
Agusta A109
6
Twin Turbine
1
-
1
-
AS 355
5
Twin turbine
2
-
2
-
Bell 206B
4
Turbine
12
-
12
-
Robinson R22
2
Piston
7
-
7
-
Robinson R44
4
Piston
8
-
8
-
Sikorsky 300CB/CBi
2
Piston
42
-
42
-
Fixed Wing
1
-
1
-
73
-
73
-
Fixed Wing
33
36
69
-
Total
363
131
494
37
TOTAL LACE (Large Aircraft Equivalent)*
163 |
 27
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
4
18
11
33
33%
AUSBU
2
2
4
8
6
23
24%
OIBU
-
-
-
-
-
25
-
Total
3
17
29
49
38
163
23%
Operating lease strategy: lowering the cost and amount of
capital needed to grow
•
Of the 91 aircraft currently leased in our fleet, 49 are commercial (38 LACE), 29
are training and 13 fixed wing
•
38 LACE aircraft represent approximately 23% of our commercial fleet
•
Our
goal
is
for
commercial
fleet
operating
leases
to
account
for
approximately
30-35% of our LACE
Leased aircraft as of June 30, 2014
*
* The percentage of LACE leased is calculated by taking the total LACE for leased aircraft divided by
the total LACE for all aircraft we operate, including both owned and leased aircraft.
See 10-Q Note 5 “Commitments and Contingencies” for more information provided on
operating leases. |
 28
Consolidated fleet changes and aircraft sales for
Q1 FY15
See
10-Q
Note
5
“Commitments
and
Contingencies”
for
more
information
provided
on
operating
leases
* Includes writeoffs, lease returns and commencements
# of a/c Sold
Cash
received*
Q1 FY15
4
4.7
$
Total
4
4.7
$
* Amounts stated in millions
Small
Medium
Large
Training
Total
EBU
-
-
5
-
5
WASBU
-
2
-
-
2
NABU
-
-
-
-
-
AUSBU
-
-
1
-
1
OIBU
2
4
-
-
6
Academy
-
-
-
1
1
Total
2
6
6
1
15
Held for sale aircraft in consolidated fleet
Small
Medium
Large
Training
Fixed wing
Total
EBU
-
1
20
-
13
34
WASBU
-
1
1
-
-
2
NABU
1
13
4
-
-
18
AUSBU
2
2
4
-
-
8
OIBU
-
-
-
-
-
-
Academy
-
-
-
29
-
29
Total
3
17
29
29
13
91
Leased aircraft in consolidated fleet
Q1 FY15
Fleet Count Beginning
363
Delivered
Large
6
Medium
3
Total Delivered
9
Removed
Sales
(4)
Other*
(5)
Total Removed
(9)
363
Fleet changes |
 29
Operating revenue, LACE and LACE rate by BU
4
1)
$ in millions
2)
LACE rate is annualized
3)
$ in millions per LACE
4)
Excludes Bristow Academy and Eastern Airways
Op revenue
1
LACE
LACE Rate
2,3
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
Total
$390
163
$9.55
Operating Revenue, LACE, and LACE Rate by BU
as of June 30, 2014 |
 30
Historical LACE by BU
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
20
19
20
20
19
OIBU
36
34
34
35
33
33
33
38
39
38
38
34
Consolidated
163
158
161
160
157
158
159
154
154
154
155
149
FY15
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
EBU
47
45
51
55
57
59
59
56
61
WASBU
22
22
20
21
21
21
22
23
23
NABU
30
31
39
37
37
33
34
34
33
AUSBU
18
17
17
19
19
19
20
22
23
OIBU
32
28
27
27
27
28
28
24
25
Consolidated
147
142
154
158
161
160
162
158
163
LACE
FY11
FY12
FY10
FY13
FY14 |
 31
Historical LACE rate by BU
1) $ in millions
2) LACE rate is annualized
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
5.05
5.44
5.26
5.23
5.40
6.10
6.00
6.60
5.80
6.30
5.89
5.79
AUSBU
5.38
5.56
5.59
5.67
6.80
6.00
6.00
7.50
8.60
7.10
6.96
7.78
OIBU
3.66
4.09
4.06
3.78
3.90
4.10
4.40
3.90
3.50
3.70
3.78
4.22
Consolidated
$6.31
$6.52
$6.49
$6.45
$6.70
$6.90
$6.90
$7.10
$7.30
$7.40
$7.43
$7.89
FY15
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
EBU
$10.60
$11.03
$9.74
$9.13
$9.63
$9.95
$10.30
$10.84
$10.60
WASBU
12.35
12.24
13.71
13.28
14.26
14.62
14.17
13.99
14.21
NABU
7.05
7.11
5.84
6.12
6.34
7.13
6.75
6.84
7.02
AUSBU
8.48
9.29
9.55
8.58
8.04
7.74
7.21
6.76
8.27
OIBU
4.22
4.62
4.76
4.94
4.97
4.73
4.58
5.57
5.80
Consolidated
$8.55
$8.95
$8.49
$8.35
$8.78
$9.07
$8.97
$9.34
$9.55
LACE Rate
1,2
FY10
FY11
FY12
FY13
FY14 |
 32
#
Helicopter
Class
Delivery Date
Location
Contracted
1
Large
September 2014
EBU
2
Large
September 2014
EBU
1
Large
September 2014
AUSBU
1 of 1
1
Large
September 2014
NABU
1 of 1
1
Large
December 2014
NABU
1 of 1
1
Medium
December 2014
NABU
6
Medium
December 2014
WASBU
2
Large
March 2015
EBU
1
Large
June 2015
EBU
1
Large
September 2015
NABU
1 of 1
1
Large
September 2015
EBU
1
Large
September 2015
EBU
1
Large
December 2015
NABU
1
Large
December 2015
AUSBU
1 of 1
1
Large
December 2015
OIBU
1
Large
March 2016
NABU
1
Large
March 2016
EBU
2
Large
June 2016
NABU
1
Large
June 2016
EBU
1
Large
September 2016
NABU
28
6 of 28
ORDER BOOK
1
Order and options book as of June 30, 2014
1)
Five
large
aircraft
on
order
and
seven
large
aircraft
on
option
are
subject
to
the
successful
development
and
certification
of
the
aircraft
2)
The aircraft that are indicated in grey italic will be leased upon delivery
3)
One aircraft is LIM SAR configured
4)
SAR configured
#
Helicopter
Class
Delivery Date
1
Large
September 2015
1
Medium
September 2015
1
Large
December 2015
2
Medium
December 2015
2
Large
March 2016
3
Medium
March 2016
3
Large
June 2016
3
Medium
June 2016
3
Large
September 2016
2
Medium
September 2016
5
Large
December 2016
1
Medium
December 2016
3
Large
March 2017
1
Medium
March 2017
4
Large
June 2017
1
Medium
June 2017
3
Large
September 2017
1
Medium
September 2017
4
Large
December 2017
3
Medium
December 2017
1
Large
March 2018
2
Medium
March 2018
1
Large
June 2018
51
OPTIONS BOOK
2, 3
4
4
4
1 of 2 |
 33
Order and options book as of June 30, 2014 (continued)
#
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 of 2
2
Large
December 2014
EBU
2 of 2
2
Large
March 2015
EBU
2 of 2
2
Large
March 2015
EBU
2 of 2
2
Large
June 2015
EBU
2 of 2
2
Large
September 2015
EBU
2 of 2
2
Large
September 2015
EBU
2 of 2
2
Large
December 2015
EBU
2 of 2
18
18 of 18
The aircraft that are indicated in grey italic will be leased upon delivery
UK SAR CONFIGURED ORDER BOOK |
 34
Adjusted EBITDAR margin* trend
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%
14.8%
19.4%
17.3%
23.2%
20.7%
29.1%
29.5%
25.7%
AUSBU
20.2%
14.4%
23.5%
35.6%
24.3%
27.0%
28.0%
27.3%
26.0%
27.1%
OIBU
48.1%
19.1%
47.8%
42.9%
39.5%
36.2%
44.2%
55.7%
51.6%
46.6%
Consolidated
23.4%
24.0%
27.6%
31.2%
26.6%
26.3%
26.1%
31.5%
29.4%
28.3%
FY15
Q1
Q2
Q3
Q4
Full Year
Q1
EBU
30.3%
35.3%
35.3%
37.3%
34.7%
34.1%
WASBU
31.3%
30.4%
33.5%
33.2%
32.1%
25.6%
NABU
29.2%
31.0%
33.1%
35.4%
32.1%
39.7%
AUSBU
17.7%
21.0%
15.0%
24.0%
19.6%
23.7%
OIBU
67.4%
39.3%
33.2%
53.3%
47.7%
41.4%
Consolidated
28.5%
28.7%
27.0%
30.4%
28.6%
29.2%
FY13
FY14
FY12
* Adjusted EBITDAR excludes special items and asset dispositions and margin is calculated by taking
adjusted EBITDAR divided by operating revenue |
 35
Adjusted EBITDAR* reconciliation
* Adjusted EBITDAR excludes special items and asset dispositions
($ 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
14.2
6.2
8.3
7.8
12.7
35.0
Interest expense
9.0
9.5
9.8
10.0
38.1
8.8
8.6
14.7
10.3
42.4
Gain on disposal of assets
-1.4
1.6
2.9
28.6
31.7
5.3
1.3
-7.4
-7.2
-8.1
Depreciation and amortization
22.7
25.4
22.7
25.3
96.1
21.4
23.3
24.9
26.7
96.3
Special items
0.0
24.6
0.0
3.4
28.1
2.2
-2.3
14.9
1.9
16.2
Adjusted EBITDA Subtotal
58.1
62.1
68.9
84.3
273.4
68.0
69.6
91.6
84.8
313.5
Rental expense
9.0
9.1
12.8
15.1
46.0
16.3
15.3
17.6
18.3
67.4
Adjusted EBITDAR
$67.0
$71.2
$81.8
$99.5
$319.5
$84.3
$84.9
$109.2
$103.0
$381.0
Fiscal year
3/31/2015
($ in millions)
Q1
Q2
Q3
Q4
Full Year
Q1
Net income
$26.9
$109.9
$19.0
$32.0
$187.8
$45.0
Income tax expense
7.6
41.1
2.9
5.5
57.2
11.8
Interest expense
20.4
9.1
7.3
8.2
44.9
7.4
Gain on disposal of assets
1.7
3.1
-4.0
-0.1
0.7
-0.6
Depreciation and amortization
22.8
23.9
23.7
25.6
96.0
25.3
Special items
0.0
-101.8
23.5
20.5
-58.7
5.6
Adjusted EBITDA Subtotal
79.4
85.2
72.4
91.8
327.9
94.5
Rental expense
23.1
23.3
28.3
31.1
105.8
33.1
Adjusted EBITDAR
$102.5
$108.5
$100.7
$122.9
$433.7
$127.6
Fiscal year ended,
3/31/2012
3/31/2013
3/31/2014
Fiscal year ended, |
 36
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
$24.5
= $121.2* -
( $3,683*
X 2.625%**) Bristow Value Added
calculation for Q1 FY14 $1.5
=
$90.6*
( $3,394*
X 2.625%**)
* Reconciliation for these items follows right after this
slide ** Quarterly capital charge of 2.625% is based on annual
capital charge of 10.5% - |
 37
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
Other income/expense-net
1.4
1.2
Gain/loss on asset sale
1.7
(0.6)
Special items
0.0
4.7
Tax effect from special items
(3.2)
(1.1)
Earnings (losses) from unconsolidated affiliates, net
(14.0)
(4.3)
Non-controlling interests
0.0
0.9
Gross cash flow (before Líder)
$79.0
$110.5
Gross cashflow -Líder proportional
11.6
10.7
Gross cash flow after Líder
$90.6
$121.2 |
 38
Bristow adjusted gross operating assets reconciliation
(in millions)
Adjusted gross operating assets reconciliation
Q1 FY14
Q1 FY15
Total assets
$3,058
$3,541
Accumulated depreciation
507
536
Capitalized operating leases
315
423
Cash and cash equivalents
(160)
(134)
Investment in unconsolidated entities
(277)
(266)
Goodwill
(29)
(58)
Intangibles
(3)
(18)
Assets held for sale: net
(14)
(30)
Assets held for sale: gross
33
74
Adj. for gains and losses on assets sales
84
(12)
Accounts Payable
(73)
(102)
Accrued maintenance and repairs
(16)
(18)
Other accrued taxes
(8)
(8)
Accrued wages, benefits and related taxes
(48)
(68)
Other accrued liabilities
(20)
(222)
Income taxes payable
(7)
(0)
Deferred revenue
(24)
(30)
ST deferred taxes
(4)
(14)
LT deferred taxes
(160)
(179)
Adjusted gross operating assets before Líder
$3,156
$3,414
Adjusted gross operating assets-Líder proportional
237
269
Adjusted gross operating assets after Líder
$3,394
$3,683 |
 39
Líder 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
$3.6
= $10.7* -
( $269*
X 2.625%**) Bristow Value Added
calculation for Q1 FY14 $5.3
=
$11.6*
-
(
$237*
X
2.625%**)
* Reconciliation for these items follows right after this
slide ** Quarterly capital charge of 2.625% is based on annual
capital charge of 10.5% |
 40
Líder gross cash flow reconciliation
($ 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)
FX (gains) losses
0.1
1.1
Other income/expense-net
(0.1)
(0.2)
Earnings of discontinued operations
0.0
0.0
Gain/loss on asset sale
0.0
0.0
Special adjustment- remove Lider tax per income stmt.
2.5
2.3
Tax effect from special items
0.0
0.0
Earnings (losses) from unconsolidated affiliates, net
0.3
0.0
Non-controlling interests
(0.5)
(0.5)
Gross cash flow
31.6
28.4
Special item outside of Lider- add Bristow tax calc.
(4.3)
(3.3)
Gross cash flow
27.4
25.1
42.5% Lider proportional consolidation - GCF
11.6
$
10.7
$ |
 41
Líder 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 operating leases
127
149
Assets from discontinued operations
0
0
Investments and escrow deposits
(33)
(44)
Goodwill
0
0
Prepaid pension cost
0
0
Intangibles
(6)
(6)
Intangibles, amortization
4
4
Other, non operating assets
(3)
(17)
Assets held for sale: net
0
0
Assets held for sale: gross
0
0
Adj. for gains and losses on assets sales
0
0
Accounts payable
(35)
(35)
Other payables
(4)
(3)
Other accrued taxes
(1)
(6)
Accrued wages, benefits and related taxes
(20)
(21)
Income taxes payable
(5)
(4)
Deferred revenue
(17)
(10)
ST deferred taxes
0
0
LT deferred taxes
(35)
0
Adjusted gross operating assets
559
633
42.5 % Lider proportional consolidation GOA
237
$
269
$ |
 42
Líder's adjusted EBITDAR* reconciliation
* Adjusted EBITDAR excludes special items and asset dispositions
($ 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 products and services
(84.2)
(87.0)
(90.8)
(79.5)
Gross profit
26.0
24.6
24.5
26.9
(-) Selling and administrative expenses
(10.3)
(9.6)
(7.0)
(7.5)
(+) Equity income of associates
0.4
(0.0)
0.5
0.8
(+) Other operating income/expenses
1.2
0.7
0.2
0.2
Operating result
17.3
15.7
18.3
20.4
(+) Depreciation and amortization - cost
3.4
3.2
3.2
3.3
(+) Depreciation and amortization - expenses
0.2
0.2
0.2
0.2
EBITDA
21.0
19.2
21.6
23.9
Leasing costs
6.5
7.3
7.4
7.3
Adjusted EBITDAR
27.4
$
26.4
$
29.1
$
31.2
$ |
 43
GAAP reconciliation
(i) See information about special items in 10-Q or earnings release for Q1
FY15 (ii)
These amounts are presented after applying the appropriate tax effect to each item
and dividing by the weighted average shares outstanding during the related period to calculate the earnings per share impact
Three Months Ended
June 30,
2014
2013
(In thousands, except per
share amounts)
Adjusted operating
income........................................................................
$
69,304
$
57,840
Gain (loss) on disposal of
assets........................................................
610
(1,721)
Special items
(i)
...................................................................................
(4,722
)
—
Operating income
.......................................................................................
$
65,192
$
56,119
Adjusted EBITDAR
...................................................................................
$
127,623
$
102,473
Gain (loss) on disposal of
assets.........................................................
610
(1,721)
Special items
(i)
.....................................................................................
(5,594
)
—
Depreciation and amortization
.............................................................
.
(25,334)
(22,819)
Rent
expense.........................................................................................
(33,116)
(23,061)
Interest
expense....................................................................................
(7,363
)
(20,370)
Provision for income taxes
..................................................................
(11,823)
(7,590)
Net income
..................................................................................................
$
45,003
$
26,912
Adjusted net income
..................................................................................
$
47,369
$
36,504
Gain (loss) on disposal of assets
(ii)
....................................................
483
(1,342)
Special items
(i) (ii)
................................................................................
(3,743
)
(8,276)
Net income attributable to Bristow Group
.................................................
$
44,109
$
26,886
Adjusted diluted earnings per share
..........................................................
$
1.32
$
1.00
Gain (loss) on disposal of assets
(ii)
....................................................
0.01
(0.04)
Special items
(i) (ii)
................................................................................
(0.10)
(0.23)
Diluted earnings per share
................................................................…......
1.23
0.74 |
 44
Bristow leverage reconciliation
*Adjusted EBITDAR excludes gains and losses on dispositions of assets
(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 credit
2.2
2.2
Adjusted
1,431.0
$
(d)
1,783.4
$
3,214.4
$
44.5%
Calculation of debt to adjusted EBITDAR multiple
TTM Adjusted EBITDAR*:
FY 2015
458.8
$
(e)
= (d) / (e)
3.1:1 |
 45
Líder 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 |
 46
Bristow Group Inc. (NYSE: BRS)
2103 City West Blvd., 4 Floor
Houston, Texas 77042
t
713.267.7600
f
713.267.7620
bristowgroup.com
Contact us
th |