Bristow Group Inc - FORM 8-K - EX-99.1

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8-K - 8-K - Bristow Group Inc	d815457d8k.htm

November 7, 2014

Second quarter FY15 earnings presentation

Bristow Group Inc.

Exhibit 99.1

Second quarter FY15 earnings call agenda

Introduction

CEO remarks and safety review

Operational highlights

Current and future financial performance

Closing remarks

Questions and answers

Linda McNeill, Director Investor Relations

Jonathan Baliff, President and CEO

Jeremy Akel, SVP and COO

John Briscoe, SVP and CFO

Jonathan Baliff, President and CEO

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 contract revenue, 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 September 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.

CEO remarks and safety review

Jonathan Baliff, President and CEO

Operational safety review

AAR includes consolidated commercial operations only

TRIR includes consolidated commercial operations, corporate and Bristow Academy employees

Total

Recordable

Injury

Rate

(TRIR)

per

200,000

man hours (cumulative)

Commercial

Air

Accident

Rate

(AAR)

per

100,000

flight hours (fiscal year)

0.54

0.53

0.96

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

0.11

0.00

1.00

2.00

3.00

FY10

FY11

FY12

FY13

FY14

YTD FY15

Q2 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 September 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 22 for more information regarding earnings guidance range.

***

•

Continued revenue and LACE rate growth in Q2 FY15 both-over-year and sequentially

•

Adjusted EBITDAR increased year-over-year, but adjusted EPS is down due primarily

to unfavorable changes in foreign exchange rates

•

Q2 FY15 BVA** is up $3.7 million year-over-year and up $1.6 million sequentially; with

returns growing due to excellent capital management

•

Cash flow growth has led to increased liquidity of $613 million

•

EPS guidance for the full year FY15 is reaffirmed at $4.70 -

$5.20***

•

Q2 operating revenue of $440.5M (16.3% increase from Q2 FY14, 0.7 % increase from Q1 FY15)

•

Q2 GAAP EPS of $0.73 (75.7% decrease from Q2 FY14, 40.7% decrease from Q1 FY15)

•

Q2 adjusted EPS* of $0.87 (31.5% decrease from Q2 FY14, 34.1% decrease from Q1 FY15)

•

Q2 adjusted EBITDAR* of $112.1M (3.3% increase from Q2 FY14, 12.2% decrease from Q1 FY15)

•

Recent declines in oil prices are supply oriented and expected to

be shorter term in nature, with increased finding/production costs

supporting a sustainable higher price in the long term

•

Regardless, our business model has not been impacted by short

term

commodity

price

declines,

but

from

our

clients’

short

term cost and capital restrictions; the long term outlook remains

positive

•

Global growth in helicopter demand is good, while large helicopter

supply remains constrained. Total value of identified future

helicopter opportunities is comparable to our last update

•

SAR discussions are ongoing for multiple aircraft opportunities in

various countries including Australia, Brazil, the Falklands,

Greenland, Nigeria, Norway, Trinidad and the UK

Market environment outlook

Operational highlights

Jeremy Akel, SVP and COO

•

Europe contributed 49% of Bristow operating revenue

and 54% of adjusted EBITDAR* in Q2 FY15

•

Operating revenue increased 32% to $206.3M in Q2

FY15 from $156.4M in Q2 FY14 with the net addition

of eight LACE, an overall increase in activity under

existing and new contracts over the comparable

quarter and the addition of Eastern Airways

•

Adjusted EBITDAR increased 26% to $69.5M in Q2

FY15 from $55.2M in Q2 FY14 with adjusted

EBITDAR margin of 33.7% in Q2 FY15 vs. 35.3% in

Q2 FY14

Outlook:

Higher demand for newer technology aircraft in the

Southern North Sea resulting from CAP 1145

implementation

Three LACE contracted for one year in the Falkland

Islands commencing February 2015

One LACE contracted for two and a half years in

Norway commencing January 2015

Europe (EBU)

* Operating revenue and adjusted EBITDAR percentages exclude corporate and other

FY15 adjusted EBITDAR margin expected to be

~ low thirties

UK SAR update

•

From the start of the GAP SAR contract in

June 1, 2013 through September 30, 2014, we have

conducted over 445 missions and rescued and/or

assisted over 420 people

•

Sumburgh and Stornoway bases generated $13.0M

of operating revenue in Q2 FY15 and $63.9M since

the beginning of the contract

•

Construction of the first two UK SAR bases

continues in Inverness and Humberside and

expected to become fully operational in Q1 FY16

•

Completed sale-leaseback of four GAP SAR S-92s

•

Completed lease financing of remaining UK SAR

S-92s, including two that were delivered during the

current quarter

Outlook:

UK SAR implementation and start-up are on

schedule and on budget

Expect to complete lease financing of each

AW189 upon delivery

West Africa (WASBU)

•

West Africa (Nigeria) contributed 19% of Bristow

operating revenue and 19% of adjusted EBITDAR* in

Q2 FY15

•

Operating revenue increased to $80.1M in Q2 FY15

from $75.9M in Q2 FY14 due to improved contract

terms

•

Adjusted EBITDAR increased to $24.9M in Q2 FY15

from $23.1M in Q2 FY14 and adjusted EBITDAR

margin increased to 31.1% in Q2 FY15 vs. 30.4% in

Q2 FY14 due to increased revenue and cost control

measures

Outlook:

Contracts continue to be extended

Two LACE medium term extension

Introduction of new fixed wing service in Q4 FY15

to meet client demand

* Operating revenue and adjusted EBITDAR percentages exclude corporate and other

FY15 adjusted EBITDAR margin expected to be

~ low thirties

•

North America contributed 13% of Bristow operating

revenue and 14% of adjusted EBITDAR* in Q2 FY15

•

Operating revenue decreased slightly to $56.0M in

Q2 FY15 from $60.4M in Q2 FY14 primarily due to

the planned closure of our Alaska operations and a

decline in the number of small aircraft on contract

•

Adjusted EBITDAR decreased slightly to $18.1M in

Q2 FY15 vs. $18.7M in Q2 FY14 while adjusted

EBITDAR margin increased to 32.4% from 31.0% in

Q2 FY14, driven by a change in the contracted fleet

mix

Outlook:

Two LACE moving into GOM in second half of

FY15 to service client demand

Additional LACE in Canada in Q3 FY15

Secured $1.1 billon contract in Canada for up to

nine LACE (two new LACE) beginning in FY16

Facility improvements remain on schedule and

on budget

FY15 adjusted EBITDAR margin

expected to be ~ low-to-mid thirties

North America (NABU)

* Operating revenue and adjusted EBITDAR percentages exclude corporate and other

Bristow operated bases

Cougar operated bases

Australia (AUSBU)

•

Australia contributed 11% of Bristow operating

revenue and 8% of adjusted EBITDAR* in

Q2 FY15

•

Operating revenue increased by 33.6% to $47.2M

in Q2 FY15 from $35.3M in Q2 FY14

•

Adjusted EBITDAR increased 44.2% to $10.7M in

Q2 FY15 from $7.4M in Q2 FY14 and adjusted

EBITDAR margin increased to 22.6% in Q2 FY15

from 21% in Q2 FY14 due to the ramp up of the

INPEX contract, offset by the conclusion of certain

short term contracts

Outlook:

Inpex operations continue to ramp up with an

oil and gas SAR LACE that commenced in

October and one additional LACE commencing

in November

One LACE contracted for one year beginning in

Q1 FY16

Full EC225 fleet has returned to service

FY15 adjusted EBITDAR margin expected to

be ~ low twenties

* Operating revenue and adjusted EBITDAR percentages exclude corporate and other

Great

Australian

Bight

Karratha

Exmouth

Learmonth

Varanus Is

Barrow Is

Australia

Perth

Essendon

Tooradin

Broome

Truscott

Darwin

BDI provide support

to the Republic of

Singapore Air Force

Oakey

Warrnambool

•

Other International contributed 8% of Bristow operating

revenue and 5% of adjusted EBITDAR* in Q2 FY15

•

Operating revenue increased to $35.8M in Q2 FY15 vs.

$32.2M in Q2 FY14 due to addition of a contract in

Tanzania and increased activity in Trinidad

•

Adjusted EBITDAR decreased to $6.6M in Q2 FY15 vs.

$12.6M in Q2 FY14 and adjusted EBITDAR margin

decreased to 18.5% in Q2 FY15 from 39.3% in Q2 FY14

primarily due to a decrease in earnings from

unconsolidated affiliates and the end of a contract in

Malaysia, partially offset by activity in Trinidad and

Tanzania

•

Unconsolidated earnings from Líder decreased $5.5M

primarily due to unfavorable changes in foreign

exchange rates

* Operating revenue and adjusted EBITDAR percentages exclude corporate and other

Consolidated in OIBU

Unconsolidated Affiliate

Other International (OIBU)

Outlook:

New opportunities in Africa, the Black Sea and Brazil

Additional long term opportunity for 1/2 LACE in Trinidad

Developing opportunities to introduce new technology LACE in emerging markets

FY15 adjusted EBITDAR margin expected to ~ mid thirties

Líder update

* Reconciliation of adjusted EBITDAR, leverage and BVA provided in the appendix

Líder adjusted EBITDAR*

•

YTD CY14 adjusted EBITDAR decreased 8.5%

year-over-year due primarily due to unfavorable

changes in foreign currency rates

•

Absolute BVA contribution to Bristow from Líder

was $3.9M* in Q2 FY15 (September 30, 2014)

•

Adjusted debt to TTM adjusted EBITDAR

increased to 3.2x as of September 30, 2014 from

2.8x as of September 30, 2013

Outlook:

96.9

88.7

51.0

56.0

59.1

70.5

123.2

100

120

140

CY09

CY10

CY11

CY12

CY13

YTD CY14

Comparable period

Full year

One LACE renewal for two years

Petrobras is pressing ahead with

changing its fleet mix to large

aircraft

Additional long term LACE

requirements anticipated

Current and future financial

performance

John Briscoe, SVP and CFO

$1.27

$0.87

$0.04

$0.33

$0.11

Q2 FY14

Operations

Corporate and Other

FX Changes

Q2 FY15

Financial highlights:

Adjusted EPS and adjusted EBITDAR summary year-over-year

Q2 FY14 to Q2 FY15 adjusted EPS bridge

$108.5

$112.1

$17.2

$8.3

$5.3

Q2 FY14

Operations

Corporate and Other

FX Changes

Q2 FY15

Q2 FY14 to Q2 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 September 30, 2014.

LACE and LACE rate continue to increase led by new

technology aircraft and improved utilization/terms

* 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

$2.28

$2.19

$0.24

$0.02

$0.35

YTD Q2 FY14

Operations

Corporate and Other

FX Changes

YTD Q2 FY15

Financial highlights:

Adjusted EPS and adjusted EBITDAR summary year-over-year

YTD Q2 FY14 to YTD Q2 FY15 adjusted EPS bridge

$211.8

$239.7

$39.1

$0.7

$11.9

YTD Q2 FY14

Operations

Corporate and Other

FX Changes

YTD Q2 FY15

YTD Q2 FY14 to YTD Q2 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 September 30, 2014.

Bristow Value Added (BVA) drives improving Gross Cash

Flow (GCF) performance

•

Q2 FY15 absolute BVA is positive $26.1M, a $3.7M increase from Q2 FY14

•

Year-over-year change in BVA is driven by:

Excellent revenue growth

Margin improvement

Capital efficiency efforts

•

EBU and NABU generated key improvements 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.

Our progress on BVA yields stronger liquidity for growth,

dividends and share repurchases . . .

See 10-Q for more information on cash flow provided by operating activities

At period end

261

402

415

530

613

151

231

267

232

Net

cash

provided

operating

activities

Total liquidity

FY15 guidance reaffirmed . . .

•

FY15

adjusted

EPS

guidance

range

reaffirmed

$4.70

$5.20,

excluding special items and aircraft sales. Other specific items

include:

*Assuming

FY15

revenue

earned

same

regions

and

same

mix

FY14

Highlighted figures have changed since the last earnings release. FY15 guidance as presented last quarter is included in the appendix for reference.

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

~ $28 - $32M

Average LACE Rate

~ $9.50 - $10.50M

Rent expense (a/c only)

~$140 - $145M

G & A expense (all inclusive)

~ $220 - $225M

Tax rate*

~ 20 - 23%

Depreciation expense

~ $100 - $105M

Adj. EPS guidance

$4.70 - $5.20

FY15 guidance

. . . as we continue to deliver strong results in FY15

•

Declines in recent oil prices have not impacted our production

and infrastructure oriented business model

•

We continue to work with clients to identify cost effective

logistics solutions with Bristow’s global fleet and stable

balance sheet driving demand for our services

•

$4.3 billion of contracts are being implemented on schedule

and on budget starting in FY16

•

Macro economic volatility did impact Q2 FY15 adjusted EPS,

but strong BVA and cash flow performance continues

•

Our fiscal year 2015 adjusted EPS guidance range reaffirmed

at $4.70 -

$5.20

Appendix

Organizational chart -

as of September 30, 2014

Business

Unit

FY15

operating

revenue)

Corporate

Region

( # of aircraft / # of locations)

Joint

Venture

aircraft)

Key

Operated Aircraft

Bristow owned and/or operated 363

aircraft as of September 30, 2014

Affiliated Aircraft

Bristow affiliates and joint

ventures operated 131 aircraft

as of September 30, 2014

* Includes corporate and other

Bristow

EBU

46%

WASBU

18%

NABU

13%

AUSBU

11%

OIBU

BRS Academy

4%*

UK –

85/6

Norway –

21/4

Nigeria –

47/6

U.S.

GoM

–

59/6

Canada

–

8/2

Australia –

29/12

Brazil –

11/5

Egypt –

0/0

Malaysia –

1/1

Mexico –

2/1

Russia –

7/3

Tanzania –

3/1

Trinidad –

10/1

Turkmenistan –

2/1

Florida –

54/1

Louisiana –

13/1

Nevada –

3/1

UK –

4/1

Lider –

PAS –

Other –

4/1

Aircraft fleet –

medium and large

as of September 30, 2014

Next Generation Aircraft

Medium capacity 12-15 passengers

Large capacity 16-25 passengers

Mature Aircraft

Fair

market

value

our

owned

fleet

~$1.8

billion

and

leased

fleet

~$1.4

billion

Aircraft

Type

No. of PAX

Engine

Consl

Unconsl

Total

Ordered

Large Helicopters

AS332 L Super Puma

Twin Turbine

AW189

Twin Turbine

EC175

Twin Turbine

EC225

Twin Turbine

Mil Mi 8

Twin Turbine

Sikorsky S-61

Twin Turbine

Sikorsky S-92

Twin Turbine

117

125

LACE

110

Medium Helicopters

AW139

Twin Turbine

Bell 212

Twin Turbine

Bell 412

Twin Turbine

EC155

Twin Turbine

Sikorsky S-76A/A++

Twin Turbine

Sikorsky S-76C/C++

Twin Turbine

Sikorsky S-76D

Twin Turbine

172

LACE

Aircraft fleet –

small, training and fixed

as of September 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

AW109

Twin Turbine

AS 350BB

Turbine

Bell 206B

Turbine

Bell 206 L Series

Turbine

Bell 407

Turbine

BK-117

Twin Turbine

EC135

Twin Turbine

LACE

Training Helicopters

AW109

Twin Turbine

AS 355

Twin turbine

Bell 206B

Turbine

Robinson R22

Piston

Robinson R44

Piston

Sikorsky 300CB/CBi

Piston

Fixed Wing

Total

363

131

494

TOTAL LACE (Large Aircraft Equivalent)*

166

Operating lease strategy: lowering the cost and amount of

capital needed to grow

•

Of the 110 aircraft currently leased in our fleet, 67 are commercial (56 LACE), 30

are training and 13 fixed wing

•

56 LACE aircraft represent approximately 34% of our commercial fleet

•

Our

goal

for

commercial

fleet

operating

leases

account

for

approximately

30-35% of our LACE

Leased aircraft as of September 30, 2014

Small

Medium

Large

Total

Leased LACE

Total LACE

% Leased

EBU

53%

WASBU

NABU

36%

AUSBU

35%

OIBU

Total

166

34%

* 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.

Consolidated fleet changes and aircraft sales for

Q2 FY15

Small

Medium

Large

Training

Total

EBU

WASBU

NABU

AUSBU

OIBU

Academy

Total

Held for sale aircraft in consolidated fleet

Small

Medium

Large

Training

Fixed wing

Total

EBU

WASBU

NABU

AUSBU

OIBU

Academy

Total

110

Leased aircraft in consolidated fleet

# of a/c Sold

Cash

received*

Q1 FY15

4.7

Q2 FY15

8.2

Total

12.9

* Amounts stated in millions

Q1 FY15

Q2 FY15

Fleet Count Beginning

363

Delivered

Large

Medium

Total Delivered

Removed

Sales

(4)

(7)

Other*

(5)

Total Removed

(9)

(2)

363

* Includes writeoffs, lease returns and commencements

Fleet changes

See 10-Q Note 5 “Commitments and Contingencies” for more information provided on operating leases

Operating revenue, LACE and LACE rate by BU

$ in millions

LACE rate is annualized

$ in millions per LACE

Excludes Bristow Academy and Eastern Airways

Op revenue

LACE

LACE Rate

2,3

EBU

$328

$9.78

WASBU

160

14.23

NABU

113

7.04

AUSBU

8.72

OIBU

6.20

Total

$784

166

$9.43

Operating Revenue, LACE, and LACE Rate by BU

as of September 30, 2014

Historical LACE by BU

EBU

WASBU

NABU

AUSBU

OIBU

Consolidated

163

158

161

160

157

158

159

154

155

149

EBU

WASBU

NABU

AUSBU

OIBU

Consolidated

147

142

154

158

161

160

162

158

163

166

LACE

FY11

FY12

FY10

FY13

FY14

FY15

Historical LACE rate by BU

1) $ in millions

2) LACE rate is annualized

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

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

$7.10

$7.30

$7.40

$7.43

$7.89

EBU

$10.60

$11.03

$9.74

$9.13

$9.63

$9.95

$10.30

$10.84

$10.60

$9.78

WASBU

12.35

12.24

13.71

13.28

14.26

14.62

14.17

13.99

14.21

14.23

NABU

7.05

7.11

5.84

6.12

6.34

7.13

6.75

6.84

7.02

7.04

AUSBU

8.48

9.29

9.55

8.58

8.04

7.74

7.21

6.76

8.27

8.72

OIBU

4.22

4.62

4.76

4.94

4.97

4.73

4.58

5.57

5.80

6.20

Consolidated

$8.55

$8.95

$8.49

$8.35

$8.78

$9.07

$8.97

$9.34

$9.55

$9.43

LACE Rate

1,2

FY10

FY11

FY12

FY13

FY14

FY15

Order and options book as of September 30, 2014

Helicopter

Class

Delivery Date

Large

September 2015

Large

December 2015

Medium

December 2015

Large

March 2016

Medium

March 2016

Large

June 2016

Medium

June 2016

Large

September 2016

Medium

September 2016

Large

December 2016

Medium

December 2016

Large

March 2017

Medium

March 2017

Large

June 2017

Medium

June 2017

Large

September 2017

Medium

September 2017

Large

December 2017

Medium

December 2017

Large

March 2018

Medium

March 2018

Large

June 2018

Large

September 2018

Large

December 2018

OPTIONS BOOK

Helicopter

Class

Delivery Date

Location

Contracted

Large

December-14

AUSBU

1 of 1

Large

March-15

EBU

Medium

June-15

WASBU

Large

June-15

EBU

Medium

June-15

NABU

Medium

September-15

WASBU

Large

September-15

EBU

Large

September-15

NABU

1 of 1

Large

December-15

AUSBU

1 of 1

Large

December-15

AUSBU

1 of 1

Large

December-15

EBU

Large

December-15

IBU

Large

March-16

EBU

Large

June-16

EBU

Large

June-16

NABU

Large

September-16

NABU

Large

December-16

NABU

4 of 24

ORDER BOOK

Five large aircraft on order and seven large aircraft on option are subject to the successful development and certification of the aircraft

SAR configured

The aircraft that are indicated in grey italic will be leased upon delivery

Order and options book as of September 30, 2014 (continued)

Helicopter

Class

Delivery Date

Location

Contracted

Large

December-14*

EBU

1 of 1

Large

December-14

EBU

2 of 2

Large

March-15

EBU

3 of 3

Large

March-15

EBU

2 of 2

Large

June-15

EBU

2 of 2

Large

June-15

EBU

1 of 1

Large

September-15

EBU

2 of 2

Large

September-15

EBU

1 of 1

Large

December-15

EBU

2 of 2

16 of 16

The aircraft that are indicated in grey italic will be leased upon delivery

UK SAR CONFIGURED ORDER BOOK

*This aircraft was delivered on October 8, 2014

Total net asset FMV with and without leased aircraft FMV

NOTE: The gray shaded area represents the range of FMV with and without the impact of leased aircraft (upper range includes leased aircraft and related NPV of lease payments; lower

range excludes FMV of leased aircraft as well as the NPV of lease payments).

$87.99

49.19

70.12

$76.55

53.79

$35

$45

$55

$65

$75

$85

$95

Net asset FMV per share

Book value of equity per share

Average stock price

The reconciliation for net asset FMV per share (shaded area) and net asset FMV per share implied by our UK SAR aircraft (

) is provided on the following pages

Net asset FMV reconciliation as of September 30, 2014

(in millions)

Including leases

Excluding leases

(+) FMV of a/c

1,829

(+) FMV of leased a/c

1,415

(+) NBV of PPE w/o a/c

581

(+) Working capital

350

(-) LT debt

(766)

(-) Leased imputed debt

(602)

(-) Pension liability

(72)

Net asset FMV

2,735

1,922

# of common shares

35.7

Net asset FMV per share

76.55

53.79

September 30, 2014

UK SAR net asset FMV reconciliation

UK SAR contribution

(in millions)

September 30, 2014

FY16 - FY17

Implied

(+) FMV of a/c

1,829

1,908

(+) FMV of leased a/c

1,415

289

1,704

(+) NBV of PPE w/o a/c

581

113

694

(+) Working capital

350

174

524

(-) LT debt

(766)

(88)

(854)

(-) Leased imputed debt

(602)

(158)

(760)

(-) Pension liability

(72)

Net asset FMV

2,735

409

3,144

# of common shares

35.7

Net asset FMV per share

76.55

11.44

87.99

Adjusted EBITDAR margin* trend

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%

Full Year

EBU

30.3%

35.3%

37.3%

34.7%

34.1%

33.7%

WASBU

31.3%

30.4%

33.5%

33.2%

32.1%

25.6%

31.1%

NABU

29.2%

31.0%

33.1%

35.4%

32.1%

39.7%

32.4%

AUSBU

17.7%

21.0%

15.0%

24.0%

19.6%

23.7%

22.6%

OIBU

67.4%

39.3%

33.2%

53.3%

47.7%

41.4%

18.5%

Consolidated

28.5%

28.7%

27.0%

30.4%

28.6%

29.2%

25.4%

FY13

FY14

FY12

FY15

Adjusted EBITDAR excludes special items and asset dispositions and margin is calculated by taking adjusted EBITDAR divided by operating revenue

Adjusted EBITDAR* reconciliation

* Adjusted EBITDAR excludes special items and asset dispositions

($ in millions)

FY12

FY13

Net income

$21

$26

$15

$65

$24

$30

$37

$40

$132

Income tax expense

-$2

$14

$13

$35

Interest expense

$10

$38

$15

$10

$42

Gain on disposal of assets

-$1

$29

$32

-$7

-$8

Depreciation and amortization

$23

$25

$23

$25

$96

$21

$23

$25

$27

$96

Special items

$25

$28

-$2

$15

$16

Adjusted EBITDA Subtotal

$58

$62

$69

$84

$273

$68

$70

$92

$85

$314

Rental expense

$13

$15

$46

$16

$15

$18

$67

Adjusted EBITDAR

$67

$71

$82

$99

$319

$84

$85

$109

$103

$381

($ in millions)

FY14

Net income

$27

$110

$19

$32

$188

$45

$28

Income tax expense

$41

$57

$12

Interest expense

$20

$45

Gain on disposal of assets

-$4

-$1

Depreciation and amortization

$23

$24

$26

$96

$25

$28

Special items

-$102

$24

$20

-$59

Adjusted EBITDA Subtotal

$79

$85

$72

$92

$328

$95

$77

Rental expense

$23

$28

$31

$106

$33

$35

Adjusted EBITDAR

$102

$109

$101

$123

$434

$128

$112

Fiscal year ended,

3/31/2012

3/31/2013

3/31/2014

3/31/2015

Fiscal year ended,

Bristow Value Added (BVA)

Sample calculation for Q2 FY15 and Q2 FY14

Bristow

Value

Added

Gross

Cash

Flow

–

(Gross

Operating

Assets

Capital

Charge)

BVA = GCF -

( GOA X 10.5%** )

Bristow Value Added calculation for Q2 FY15

$26.1

= $120.0* -

( $3,575* X 2.625%**)

Bristow Value Added calculation for Q2 FY14

$22.4

$109.2*

(

$3,309*

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%

Bristow gross cash flow reconciliation

(in millions)

Gross cash flow reconciliation

Q2 FY14

Q2 FY15

Net income

111

Depreciation and amortization

Interest expense

Interest income

(1)

(0)

Rent

Other income/expense-net

(105)

Gain/loss on asset sale

(0)

Special items

Tax effect from special items

(2)

Earnings (losses) from unconsolidated affiliates, net

(3)

Non-controlling interests

(1)

Gross cash flow before Lider

$98

$109

Gross cash flow - Lider proportional

Gross cash flow after Lider

$109

$120

Bristow adjusted gross operating assets reconciliation

(in millions)

Adjusted gross operating assets reconciliation

Q2 FY14

Q2 FY15

Total assets

3,166

3,280

Accumulated depreciation

518

511

Capitalized operating leases

373

610

Cash and cash equivalents

(314)

(264)

Current assets from discontinued operations

Long-term assets from discontinued operations

Assets from discontinued operations

Investment in unconsolidated entities

(272)

(261)

Goodwill

(30)

(56)

Prepaid pension cost

Intangibles

(2)

(17)

Assets held for sale: net

(27)

(32)

Assets held for sale: gross

Adj. for gains & losses on assets sales

(8)

Accounts payable

(70)

(80)

Accrued maintenance and repairs

(17)

(20)

Other accrued taxes

(10)

(11)

Accrued wages, benefits and related taxes

(49)

(63)

Other accrued liabilities

(24)

(184)

Income taxes payable

(33)

(9)

Deferred revenue

(21)

(30)

ST deferred taxes

(2)

(12)

LT deferred taxes

(155)

(166)

Adjusted gross operating assets before Lider

$3,079

$3,296

Adjusted gross operating assets - Lider proportional

230

279

Adjusted gross operating assets after Lider

3,309

3,575

Líder Bristow Value Added (BVA)

Sample calculation for Q2 FY15 and Q2 FY14

Bristow

Value

Added

Gross

Cash

Flow

–

(Gross

Operating

Assets

Capital

Charge)

BVA = GCF -

( GOA X 10.5%** )

Bristow Value Added calculation for Q2 FY15

$3.9

$11.3*

(

$279*

2.625%**)

Bristow Value Added calculation for Q2 FY14

$5.6

$11.6*

(

$230*

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%

Líder gross cash flow reconciliation

($ in millions)

Gross cash flow reconciliation

Q2 FY14

Q2 FY15

Net income (loss)

22.1

11.7

Depreciation and amortization

4.1

3.5

Rent

6.6

7.3

Interest expense

3.7

4.1

Interest income

(0.9)

(1.5)

FX (gains) losses

(10.6)

2.4

Other income/expense-net

(2.0)

(0.2)

Special Adjustment- remove Lider tax per income stmt.

12.0

3.7

Earnings (losses) from unconsolidated affiliates, net

0.3

Non-controlling Interests

(0.3)

(0.8)

Gross cash flow

34.9

30.2

Special item outside of Lider - add Bristow tax calc.

(7.6)

(3.4)

Gross cash flow

27.4

26.9

42.5% Lider proportional consolidation - GCF

11.6

11.3

Líder adjusted gross operating assets reconciliation

($ in millions)

Adjusted gross operating assets reconciliation

Q2 FY14

Q2 FY15

Total assets

595.2

641.7

Cash and cash equivalents

(98.2)

(64.5)

Accumulated depreciation

71.8

85.8

Capitalized operating leases

132.2

146.7

Investments & escrow deposits

(31.8)

(49.8)

Intangibles

(5.2)

(5.8)

Intangibles, amortization

4.0

4.4

Other, non operating assets

(24.1)

(9.7)

Adj. for gains & losses on assets sales

Accounts payable

(27.0)

(43.0)

Other payables

(2.4)

(2.1)

Other accrued taxes

(3.5)

Accrued wages, benefits and related taxes

(20.0)

(19.7)

Income taxes payable

(6.3)

(4.9)

Deferred revenue

(14.0)

(9.8)

LT deferred taxes

(33.5)

Adjusted gross operating assets

540.8

665.8

42.5% Lider proportional consolidation GOA

229.8

278.8

Líder's adjusted EBITDAR* reconciliation

* Adjusted EBITDAR excludes special items and asset dispositions

($ in millions)

Q3 CY13

Q4 CY13

Q1 CY14

Q2 CY14

Q3 CY14

Gross revenue

116.8

119.3

121.2

113.7

116.4

(-) Revenue deductions

(6.6)

(7.6)

(5.9)

(7.3)

(7.7)

Net operating revenue

110.2

111.3

115.3

106.4

108.7

(-) Cost of products and services

(84.2)

(87.0)

(90.8)

(79.5)

(82.0)

Gross profit

26.0

24.6

24.5

26.9

26.6

(-) Selling and administrative expenses

(10.3)

(9.6)

(7.0)

(7.5)

(8.8)

(+) Equity income of associates

0.4

(0.0)

0.5

0.8

(0.6)

(+) Other operating income/expenses

1.2

0.7

0.2

Operating result

17.3

15.7

18.3

20.4

17.5

(+) Depreciation and amortization - cost

3.4

3.2

3.3

(+) Depreciation and amortization - expenses

0.2

EBITDA

21.0

19.2

21.6

23.9

21.0

Leasing costs

6.5

7.3

7.4

7.3

7.4

Adjusted EBITDAR

27.4

26.4

29.1

31.2

28.4

GAAP reconciliation

(i) See information about special items in 10-Q or earnings release for Q2 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

Bristow leverage reconciliation

*Adjusted EBITDAR excludes gains and losses on dispositions of assets

Debt

Investment

Capital

Leverage

(a)

(b)

(a) / (c)

(in millions)

As of September 30, 2014

779.5

1,757.5

2,537.0

30.7%

Adjust for:

Unfunded Pension Liability

71.8

NPV of Lease Obligations

602.2

Letters of credit

2.6

Adjusted

1,456.1

(d)

1,757.5

3,213.6

45.3%

Calculation of debt to adjusted EBITDAR multiple

TTM Adjusted EBITDAR*:

FY 2015

461.5

(e)

Líder leverage reconciliation

(in millions)

Sep-13

Sep-14

Total book debt

279

317

NPV of leases

Total adjusted debt

354

368

TTM adjusted EBITDAR

125

115

Adjusted debt / TTM adj. EBITDAR

2.8x

3.2x

FY15 guidance

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 as of June 30, 2014

Average LACE (Large AirCraft

Equivalent)

~161 -

167

Interest expense

~ $28 -

$32M

Average LACE Rate

~ $9.50 -

$10.50M

Rent expense (a/c only)

~$140 -

$145M

G & A expense (all inclusive)

~ $220 -

$225M

Tax rate*

~ 20 -

23%

Depreciation expense

~ $100 -

$105M

Adj. EPS guidance

$4.70 -

$5.20

FY15 guidance as of September 30, 2014

Bristow Group Inc. (NYSE: BRS)

2103 City West Blvd., 4

Floor

Houston, Texas 77042

713.267.7600

713.267.7620

bristowgroup.com

Bristow Group Inc - FORM 8-K - EX-99.1 - November 7, 2014

Attached files

Bristow Group Inc Reports