Bristow Group Reports First Quarter Fiscal Year 2019 Results
HOUSTON, Aug. 2, 2018 /PRNewswire/ -- Bristow Group Inc. (NYSE: BRS) today reported the following results for the three months ended June 30, 2018. All amounts shown are dollar amounts in thousands unless otherwise noted:
Three Months Ended
June 30,
2018 2017 % Change
---- ---- --------
Operating revenue $350,987 $339,729 3.3%
Net loss
attributable to
Bristow Group (32,108) (55,275) 41.9%
Diluted loss per
share (0.90) (1.57) 42.7%
Adjusted EBITDA
(1) 26,769 15,203 76.1%
Adjusted net loss
(1) (29,123) (29,138) 0.1%
Adjusted diluted
loss per share
(1) (0.82) (0.83) 1.2%
Operating cash
flow (44,119) (51,179) 13.8%
Capital
expenditures 8,895 12,553 (29.1)%
Rent expense 50,081 58,675 (14.6)%
June 30, March 31, % Change
2018 2018
---- ----
Cash $316,550 $380,223 (16.7)%
Undrawn borrowing
capacity on ABL
Facility (2) 25,216 - *
------ ---
Total liquidity $341,766 $380,223 (10.1)%
======== ========
* percentage change too large to be
meaningful or not applicable
(1) A full reconciliation of non-GAAP
financial measurements is included
at the end of this news release
(2) Our new $75 million Asset-Backed
Revolving Credit Facility ("ABL
Facility") closed on April 17, 2018
and, therefore, availability under
such facility is not included in
liquidity as of March 31, 2018.
"The New Bristow delivered improved revenue and adjusted EBITDA performance both compared to the prior year's first fiscal quarter and sequentially, led by our Search and Rescue and fixed-wing businesses in the U.K. and higher adjusted EBITDA in Australia," said Jonathan Baliff, President and Chief Executive Officer of Bristow Group. "Our first quarter results continue to reflect our global team's delivery of excellent aviation safety performance in an environment that remains challenging in our oil and gas footprint. Our global team continues to execute our fiscal 2019 STRIVE priorities with a focus on being a leader in every market we serve and a return to profitability."
BUSINESS AND FINANCIAL HIGHLIGHTS
-- Net loss was $32.1 million ($0.90 per diluted share) for the June 2018
quarter compared to a net loss of $55.3 million ($1.57 per diluted
share) for the June 2017 quarter.
-- Adjusted net loss was $29.1 million ($0.82 per diluted share) for the
June 2018 quarter compared to an adjusted net loss of $29.1 million
($0.83 per diluted share) for the June 2017 quarter.
-- Adjusted EBITDA for the June 2018 quarter of $26.8 million was up 76%
over the June 2017 quarter, and up 17% over the March 2018 quarter,
benefiting from $12.2 million of original equipment manufacturer ("OEM")
cost recoveries.
-- We are reaffirming our fiscal 2019 adjusted EBITDA guidance of $90
million - $140 million provided in May 2018.
-- After principal and interest payments in the June 2018 quarter of $38.8
million, we had $341.8 million of total liquidity as of June 30, 2018,
including $25.2 million of undrawn borrowing capacity on our new ABL
Facility.
"We continue to operate in a short-cycle offshore market characterized this fiscal year by an uneven recovery both quarter to quarter and geographically. We have seen a stronger than expected recovery in the U.S. Gulf of Mexico and Africa as utilization on existing assets has improved. These markets reflect our overall lower cost structure and more responsive, regionally focused businesses," said Jonathan Baliff. "Bristow's previous refinancings have enhanced our liquidity profile and we are well-positioned to take advantage of the beginning of an offshore investment cycle as seismic activity has increased and more exploration rigs are going to work."
Operating revenue from external customers by line of service was as follows:
Three Months Ended
June 30,
2018 2017 % Change
---- ---- --------
(in thousands, except percentages)
Oil and gas
services $227,771 $234,775 (3.0)%
U.K. SAR
services 66,320 52,587 26.1%
Fixed wing
services 56,707 50,677 11.9%
Corporate
and other 189 1,690 (88.8)%
--- -----
Total
operating
revenue $350,987 $339,729 3.3%
======== ========
The year-over-year increase in operating revenue was primarily driven by increases in U.K. SAR and fixed wing services revenue in our Europe Caspian and Africa regions. The increase in U.K. SAR services revenue included the one-time benefit of $7.6 million in OEM cost recoveries recognized in the June 2018 quarter. Additionally, revenue increased by $10.5 million compared to the June 2017 quarter due to changes in foreign currency exchange rates, primarily related to the strengthening of the British pound sterling versus the U.S. dollar.
The year-over-year change in GAAP net loss and diluted loss per share were primarily driven by higher revenue in the June 2018 quarter as discussed above, lower rent expense, lower general and administrative expense and a more favorable effective tax rate. These favorable changes were partially offset by higher interest expense and higher loss on unconsolidated affiliates in the June 2018 quarter.
The GAAP net loss and diluted loss per share for the June 2018 quarter included organizational restructuring costs of $1.7 million ($1.7 million net of tax), or $0.05 per share, included in direct cost and general and administrative expense, which resulted from separation programs across our global organization designed to increase efficiency and reduce costs.
Additionally, we had a loss on disposal of assets of $1.7 million ($1.3 million net of tax), or $0.04 per share, during the June 2018 quarter from the sale or disposal of aircraft and other equipment.
The June 2018 quarter results benefited from the impact of $12.2 million of OEM cost recoveries realized in the June 2018 quarter that resulted in the one-time benefit of $7.6 million in U.K. SAR operating revenue discussed above, a $3.5 million reduction in rent expense and a $1.1 million reduction in direct costs. The OEM cost recoveries described above are included within adjusted net income, adjusted earnings per share and adjusted EBITDA in the June 2018 quarter.
Adjusted EBITDA, adjusted net loss and adjusted diluted loss per share benefited from the increase in revenue, decrease in rent and general and administrative expense and favorable impact of changes in foreign currency exchange rates compared to the June 2017 quarter. These items were mostly offset by increased interest expense, resulting in no significant change in adjusted net loss and adjusted diluted loss per share year-over-year. The increase in revenue and decrease in rent expense includes the OEM cost recoveries described above.
The June 2017 quarter was also impacted by special items as reflected in the table at the end of this release.
LIQUIDITY AND FINANCIAL FLEXIBILITY
Don Miller, Senior Vice President and Chief Financial Officer, commented, "On the heels of the success we had in fiscal 2018 in terms of improving our liquidity runway, we finished the June 2018 quarter with almost $350 million in liquidity including the completion of our ABL facility in April. We remain focused on revenue growth, cost reduction and improved returns, including the return of seven leased aircraft in the June quarter with the ability to return another 18 aircraft over the remainder of fiscal 2019."
REGIONAL PERFORMANCE
Europe Caspian
Three Months Ended
June 30,
2018 2017 % Change
---- ---- --------
(in thousands, except percentages)
Operating
revenue $210,986 $184,478 14.4%
Operating
income $21,928 $4,371 *
Operating
margin 10.4% 2.4% 333.3%
Adjusted
EBITDA $35,650 $16,152 120.7%
Adjusted
EBITDA
margin 16.9% 8.8% 92.0%
Rent
expense $31,996 $36,453 (12.2)%
* percentage change too large
to be meaningful or not
applicable
The increase in operating revenue in the June 2018 quarter primarily resulted from an increase of $13.7 million in U.K. SAR revenue, including a one-time benefit of OEM cost recovery of $7.6 million, an increase in Norway primarily due to an increase in activity and short-term contracts and an increase in fixed wing revenue from Eastern Airways. Additionally, revenue in this region benefited from a favorable year-over-year impact of changes in foreign currency exchange rates of $10.8 million. Eastern Airways contributed $34.8 million and $27.9 million in operating revenue for the June 2018 quarter and June 2017 quarter, respectively.
Operating income, operating margin, adjusted EBITDA and adjusted EBITDA margin increased in the June 2018 quarter primarily due to the increase in operating revenue discussed above, the benefit to rent expense and direct costs in the June 2018 quarter related to OEM cost recoveries, the benefit of the return of leased aircraft and favorable year-over-year impacts from changes in foreign currency exchange rates. These benefits were partially offset by increased salaries and benefits and maintenance expense year-over-year due to the increase in activity. Eastern Airways contributed a negative $0.1 million and positive $0.1 million in adjusted EBITDA for the June 2018 quarter and June 2017 quarter, respectively.
Africa
Three Months Ended
June 30,
2018 2017 % Change
---- ---- --------
(in thousands, except percentages)
Operating
revenue $34,915 $49,981 (30.1)%
Operating
income $1,141 $10,048 (88.6)%
Operating
margin 3.3% 20.1% (83.6)%
Adjusted
EBITDA $5,319 $13,383 (60.3)%
Adjusted
EBITDA
margin 15.2% 26.8% (43.3)%
Rent
expense $2,122 $2,200 (3.5)%
Operating revenue for Africa decreased in the June 2018 quarter primarily due to a contract that expired on March 31, 2018, which was partially offset by an increase in activity from other oil and gas customers as we have seen a stronger than expected recovery as utilization on existing assets has improved. Additionally, fixed wing services in Africa generated $2.2 million and $1.8 million of operating revenue for the June 2018 quarter and June 2017 quarter, respectively.
Operating income, operating margin, adjusted EBITDA and adjusted EBITDA margin decreased as a result of the decrease in operating revenue in the June 2018 quarter, which was only partially offset by a decrease in direct costs and general and administrative expense. Additionally, during the June 2018 quarter we incurred $1.5 million of demobilization costs related to the contract that expired on March 31, 2018.
Americas
Three Months Ended
June 30,
2018 2017 % Change
---- ---- --------
(in thousands, except percentages)
Operating
revenue $53,810 $57,783 (6.9)%
Earnings
from
unconsolidated
affiliates $(2,907) $(535) *
Operating
income $(7,587) $(1,256) *
Operating
margin (14.1)% (2.2)% *
Adjusted
EBITDA $(407) $6,176 *
Adjusted
EBITDA
margin (0.8)% 10.7% *
Rent
expense $6,598 $6,994 (5.7)%
* percentage change too large
to be meaningful or not
applicable
Operating revenue decreased in the June 2018 quarter primarily due to a decrease in operating revenue in Canada and Trinidad due to lower activity, partially offset by an increase in activity with our U.S. Gulf of Mexico oil and gas customers as we have seen a stronger than expected recovery as utilization on existing assets has improved.
Earnings from unconsolidated affiliates, net of losses, decreased to a loss of $2.9 million primarily due to a decrease in earnings from our investment in Líder in Brazil due to an unfavorable change in exchange rates and decline in activity.
The decreases in operating income, operating margin, adjusted EBITDA and adjusted EBITDA margin were driven by the decreases in operating revenue and earnings from unconsolidated affiliates discussed above, partially offset by a decrease in rent expense.
Asia Pacific
Three Months Ended
June 30,
2018 2017 % Change
---- ---- --------
(in thousands, except percentages)
Operating
revenue $54,404 $49,127 10.7%
Operating
loss $(971) $(12,530) 92.3%
Operating
margin (1.8)% (25.5)% 92.9%
Adjusted
EBITDA $2,086 $(5,720) *
Adjusted
EBITDA
margin 3.8% (11.6)% *
Rent
expense $8,117 $10,954 (25.9)%
* percentage change too large
to be meaningful or not
applicable
Operating revenue increased in the June 2018 quarter primarily due to an increase in operating revenue in Australia due to new contracts and increased activity with oil and gas customers, partially offset by a decrease from our fixed wing operations as Airnorth contributed $19.7 million and $21.0 million in operating revenue for the June 2018 quarter and June 2017 quarter, respectively.
Operating income, operating margin, adjusted EBITDA and adjusted EBITDA margin improved in the June 2018 quarter primarily due to an increase in operating revenue discussed above, a decrease in salaries and benefits due to headcount reductions and a reduction to rent expense related to OEM cost recoveries and lease returns. Adjusted EBITDA and adjusted EBITDA margin were negatively impacted by a $2.6 million unfavorable impact of foreign currency exchange rate changes. Airnorth contributed $0.2 million and $0.9 million in adjusted EBITDA for the June 2018 quarter and June 2017 quarter, respectively.
Corporate and other
Three Months Ended
June 30,
2018 2017 % Change
---- ---- --------
(in thousands, except percentages)
Operating revenue $190 $1,712 (88.9)%
Operating loss $(16,631) $(25,950) 35.9%
Adjusted EBITDA $(15,879) $(14,788) (7.4)%
Rent expense $1,248 $2,074 (39.8)%
Operating revenue decreased in the June 2018 quarter primarily due to the sale of Bristow Academy on November 1, 2017.
Operating loss decreased in the June 2018 quarter primarily due to the inclusion of $8.3 million related to organizational restructuring costs in the June 2017 quarter and $1.2 million of inventory impairment charges in the June 2017 quarter, both of which are excluded from adjusted EBITDA. Adjusted EBITDA decreased primarily due to an increase of $1.1 million in foreign currency transaction losses year-over-year.
GUIDANCE
Guidance for selected financial measures is included in the tables that follow.
CONFERENCE CALL
Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Friday, August 3, 2018 to review financial results for the fiscal year 2019 first quarter ended June 30, 2018. This release and the most recent investor slide presentation are available in the investor relations area of our web page at www.bristowgroup.com. The conference call can be accessed as follows:
Via Webcast:
-- Visit Bristow Group's investor relations Web page at
www.bristowgroup.com
-- Live: Click on the link for "Bristow Group Fiscal 2019 First Quarter
Earnings Conference Call"
-- Replay: A replay via webcast will be available approximately one hour
after the call's completion and will be accessible for approximately 90
days.
Via Telephone within the U.S.:
-- Live: Dial toll free 1-877-404-9648
Via Telephone outside the U.S.:
-- Live: Dial 1-412-902-0030
ABOUT BRISTOW GROUP INC.
Bristow Group Inc. is the leading global industrial aviation services provider offering helicopter transportation, search and rescue (SAR) and aircraft support services, including maintenance, to government and civil organizations worldwide. Bristow has major transportation operations in the North Sea, Nigeria and the U.S. Gulf of Mexico, and in most of the other major offshore oil and gas producing regions of the world, including Australia, Brazil, Canada, Russia and Trinidad. Bristow provides SAR services to the private sector worldwide and to the public sector for all of the U.K. on behalf of the Maritime and Coastguard Agency. For more information, visit bristowgroup.com.
FORWARD-LOOKING STATEMENTS DISCLOSURE
Statements contained in this news release that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. These forward-looking statements include statements regarding executing 2019 STRIVE priorities, earnings guidance, expected contract revenue, capital deployment strategy, operational and capital performance, expected cost management activities, expected capital expenditure deferrals, shareholder return, liquidity and market and industry conditions. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Risks and uncertainties include without limitation: fluctuations in the demand for our services; fluctuations in worldwide prices of and supply and demand for oil and natural gas; fluctuations in levels of oil and natural gas production, exploration and development activities; the impact of competition; actions by customers and suppliers; the risk of reductions in spending on industrial aviation 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 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 do not achieve the anticipated benefit of our fleet investment program; availability of employees; and political instability, war or acts of terrorism in any of the countries where we operate. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's annual report on Form 10-K for the fiscal year ended March 31, 2018. Bristow Group Inc. disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.
(financial tables follow)
Investor Relations
Linda McNeill
Director, Investor Relations
+1 713.267.7622
Global Media Relations
Adam Morgan
Director, Global Communications
+1 281.253.9005
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts and percentages)
(Unaudited)
Three Months Ended
June 30,
2018 2017
---- ----
Revenue:
Operating revenue from non-
affiliates $338,466 $322,118
Operating revenue from
affiliates 12,521 17,611
Reimbursable revenue from
non-affiliates 16,907 12,380
------ ------
367,894 352,109
Operating expense:
Direct cost 280,051 285,580
Reimbursable expense 15,904 12,226
Depreciation and amortization 30,941 31,056
General and administrative 40,101 46,707
------ ------
366,997 375,569
Loss on impairment - (1,192)
Loss on disposal of assets (1,678) 699
Earnings from unconsolidated
affiliates, net of losses (3,017) (665)
------ ----
Operating loss (3,798) (24,618)
Interest expense, net (27,144) (16,021)
Other income (expense), net (3,950) (1,616)
------ ------
Loss before provision for
income taxes (34,892) (42,255)
Benefit (provision) for
income taxes 2,851 (13,491)
----- -------
Net loss (32,041) (55,746)
Net loss attributable to
noncontrolling interests (67) 471
Net loss attributable to
Bristow Group $(32,108) $(55,275)
======== ========
Loss per common share:
Basic $(0.90) $(1.57)
Diluted $(0.90) $(1.57)
Non-GAAP measures:
Adjusted EBITDA $26,769 $15,203
Adjusted EBITDA margin 7.6% 4.5%
Adjusted net loss $(29,123) $(29,138)
Adjusted diluted loss per
share $(0.82) $(0.83)
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, March 31,
2018 2018
---- ----
ASSETS
Current assets:
Cash and cash equivalents $316,550 $380,223
Accounts receivable from non-affiliates 246,886 233,386
Accounts receivable from affiliates 12,914 13,594
Inventories 125,681 129,614
Assets held for sale 23,502 30,348
Prepaid expenses and other current
assets 49,584 47,234
------ ------
Total current assets 775,117 834,399
Investment in unconsolidated affiliates 114,609 126,170
Property and equipment - at cost:
Land and buildings 242,068 250,040
Aircraft and equipment 2,493,370 2,511,131
--------- ---------
2,735,438 2,761,171
Less - Accumulated depreciation and
amortization (715,496) (693,151)
-------- --------
2,019,942 2,068,020
Goodwill 19,175 19,907
Other assets 118,955 116,506
------- -------
Total assets $3,047,798 $3,165,002
========== ==========
LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current liabilities:
Accounts payable $100,299 $101,270
Accrued wages, benefits and related
taxes 49,030 62,385
Income taxes payable 6,142 8,453
Other accrued taxes 8,573 7,378
Deferred revenue 18,729 15,833
Accrued maintenance and repairs 30,440 28,555
Accrued interest 16,388 16,345
Other accrued liabilities 51,325 65,978
Short-term borrowings and current
maturities of long-term debt 53,723 56,700
------ ------
Total current liabilities 334,649 362,897
Long-term debt, less current maturities 1,410,083 1,429,834
Accrued pension liabilities 30,526 37,034
Other liabilities and deferred credits 32,302 36,952
Deferred taxes 114,645 115,192
Stockholders' investment:
Common stock 385 382
Additional paid-in capital 856,826 852,565
Retained earnings 759,929 793,783
Accumulated other comprehensive loss (313,918) (286,094)
Treasury shares (184,796) (184,796)
-------- --------
Total Bristow Group stockholders'
investment 1,118,426 1,175,840
Noncontrolling interests 7,167 7,253
----- -----
Total stockholders' investment 1,125,593 1,183,093
--------- ---------
Total liabilities and stockholders'
investment $3,047,798 $3,165,002
========== ==========
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
June 30,
2018 2017
---- ----
Cash flows from operating activities:
Net loss $(32,041) $(55,746)
Adjustments to reconcile net loss to
net cash used in operating
activities:
Depreciation and amortization 30,941 31,056
Deferred income taxes (6,776) 6,651
Discount amortization on long-term
debt 1,510 23
Loss (gain) on disposal of assets 1,678 (699)
Loss on impairment - 1,192
Deferral of lease payment 1,568 -
Stock-based compensation 1,692 4,136
Equity in earnings from
unconsolidated affiliates less than
dividends received 3,201 665
Increase (decrease) in cash resulting
from changes in:
Accounts receivable (19,833) (21,541)
Inventories (1,496) (3,551)
Prepaid expenses and other assets (1,729) 5,106
Accounts payable 3,385 (3,288)
Accrued liabilities (21,845) (8,807)
Other liabilities and deferred
credits (4,374) (6,376)
------ ------
Net cash used in operating activities (44,119) (51,179)
Cash flows from investing activities:
Capital expenditures (8,895) (12,553)
Proceeds from asset dispositions 7,774 41,975
Net cash provided by (used in)
investing activities (1,121) 29,422
Cash flows from financing activities:
Proceeds from borrowings 387 69,018
Debt issuance costs (2,378) (493)
Repayment of debt (14,194) (66,947)
Partial prepayment of put/call
obligation (14) (12)
Common stock dividends paid - (2,465)
Issuance of common stock 2,830 -
Repurchases for tax withholdings on
vesting of equity awards (1,484) (274)
------ ----
Net cash used in financing activities (14,853) (1,173)
Effect of exchange rate changes on
cash and cash equivalents (3,580) 5,153
------ -----
Net decrease in cash and cash
equivalents (63,673) (17,777)
Cash and cash equivalents at
beginning of period 380,223 96,656
------- ------
Cash and cash equivalents at end of
period $316,550 $78,879
======== =======
BRISTOW GROUP INC. AND SUBSIDIARIES
SELECTED OPERATING DATA
(In thousands, except flight hours and percentages)
(Unaudited)
Three Months Ended
June 30,
2018 2017
---- ----
Flight hours (excluding Bristow Academy and unconsolidated
affiliates):
Europe Caspian 23,368 22,147
Africa 3,670 7,523
Americas 9,267 7,692
Asia Pacific 6,898 6,361
Consolidated 43,203 43,723
====== ======
Operating revenue:
Europe Caspian $210,986 $184,478
Africa 34,915 49,981
Americas 53,810 57,783
Asia Pacific 54,404 49,127
Corporate and other 190 1,712
Intra-region eliminations (3,318) (3,352)
Consolidated $350,987 $339,729
======== ========
Consolidated operating loss:
Europe Caspian $21,928 $4,371
Africa 1,141 10,048
Americas (7,587) (1,256)
Asia Pacific (971) (12,530)
Corporate and other (16,631) (25,950)
Loss on disposal of assets (1,678) 699
Consolidated $(3,798) $(24,618)
======= ========
Operating margin:
Europe Caspian 10.4% 2.4%
Africa 3.3% 20.1%
Americas (14.1)% (2.2)%
Asia Pacific (1.8)% (25.5)%
Consolidated (1.1)% (7.2)%
Adjusted EBITDA:
Europe Caspian $35,650 $16,152
Africa 5,319 13,383
Americas (407) 6,176
Asia Pacific 2,086 (5,720)
Corporate and other (15,879) (14,788)
Consolidated $26,769 $15,203
======= =======
Adjusted EBITDA margin:
Europe Caspian 16.9% 8.8%
Africa 15.2% 26.8%
Americas (0.8)% 10.7%
Asia Pacific 3.8% (11.6)%
Consolidated 7.6% 4.5%
Three Months Ended
June 30,
2018 2017
---- ----
Depreciation and amortization:
Europe Caspian $12,755 $11,822
Africa 3,414 3,076
Americas 6,881 6,999
Asia Pacific 4,355 5,810
Corporate and other 3,536 3,349
Consolidated $30,941 $31,056
======= =======
Rent expense:
Europe Caspian $31,996 $36,453
Africa 2,122 2,200
Americas 6,598 6,994
Asia Pacific 8,117 10,954
Corporate and other 1,248 2,074
----- -----
Consolidated $50,081 $58,675
======= =======
BRISTOW GROUP INC. AND SUBSIDIARIES
AIRCRAFT COUNT
As of June 30, 2018
(Unaudited)
Percentage Aircraft in Consolidated Fleet
of Current
Quarter
Operating
Revenue
-------
Helicopters Fixed Unconsolidated
Wing (1) Affiliates (4)
------- -------------
Small Medium Large Total
(2)(3) Total
----- ------ ----- ------ -----
Europe
Caspian 60% - 14 79 34 127 - 127
Africa 10% 6 28 4 3 41 48 89
Americas 15% 18 40 15 - 73 61 134
Asia Pacific 15% - 10 21 14 45 - 45
--- --- --- --- --- --- --- ---
Total 100% 24 92 119 51 286 109
395
Aircraft not currently in
fleet: (5)
On order - - 27 - 27
Under option - - 4 - 4
(1) Eastern Airways operates a
total of 34 fixed wing
aircraft in the Europe Caspian
region and provides technical
support for two fixed wing
aircraft in the Africa region.
Additionally, Airnorth
operates a total of 14 fixed
wing aircraft, which are
included in the Asia Pacific
region.
(2) Includes 10 aircraft held for
sale and 99 leased aircraft as
follows:
Held for Sale Aircraft in Consolidated Fleet
Helicopters
Small Medium Large Fixed Total
Wing
----
Europe Caspian - 1 - - 1
Africa 2 3 - - 5
Americas - 3 - - 3
Asia Pacific - - - 1 1
Total 2 7 - 1 10
=== === === === ===
Leased Aircraft in Consolidated Fleet
Helicopters
Small Medium Large Fixed Total
Wing
----
Europe Caspian - 5 38 15 58
Africa - 1 2 2 5
Americas 2 14 6 - 22
Asia Pacific - 3 7 4 14
Total 2 23 53 21 99
=== === === === ===
(3) The average age of our fleet was
approximately ten years as of June
30, 2018.
(4) The 109 aircraft operated by our
unconsolidated affiliates do not
include those aircraft leased from
us. Includes 41 helicopters
(primarily medium) and 19 fixed wing
aircraft owned and managed by Líder
Táxi Aéreo S.A. ("Líder"), our
unconsolidated affiliate in Brazil
included in the Americas region, and
41 helicopters and seven fixed wing
aircraft owned by Petroleum Air
Services ("PAS"), our unconsolidated
affiliate in Egypt included in the
Africa region, and one helicopter
operated by Cougar Helicopters Inc.,
our unconsolidated affiliate in
Canada.
(5) This table does not reflect aircraft
which our unconsolidated affiliates
may have on order or under option.
BRISTOW GROUP INC. AND SUBSIDIARIES
FY 2019 GUIDANCE
FY 2019 guidance as of June 30, 2018(1)
Operating revenue (2) Adjusted EBITDA2,3 Rent(2)
-------
Oil and
gas ~$825M - $925M ~$20M - $50M ~$115M - $125M
------------ ------------
U.K. SAR ~$230M - $240M ~$70M - $80M ~$45M - $50M
-------------- ------------ ------------
Eastern ~$90M - $100M ~$0M - $5M 4 ~$10M - $12M
------------- ------------ ------------
Airnorth ~$80M - $90M ~$0M - $5M 4 ~$8M - $10M
Total ~$1.25B - $1.35B ~$90M - $140M ~$185M - $195M
----- ---------------- ------------- --------------
G&A
expense ~$150M - $170M
-------- --------------
Depreciation
expense ~$115M - $125M
------------ --------------
Total
aircraft
rent 5 ~$160M - $165M
--------- --------------
Total
non-
aircraft
rent 5 ~$25M - $30M
--------- ------------
Interest
expense ~$100M - $110M
-------- --------------
Non-
aircraft
capex 4 ~$30M annually
--------- --------------
Aircraft
Sale
Proceeds
4 ~$20M annually
--------- --------------
(1) FY19 guidance assumes FX rates as of June
30, 2018.
(2) Operating revenue, adjusted EBITDA and
rent for oil and gas includes corporate
and other revenue and the impact of
corporate overhead expenses.
(3) Adjusted EBITDA for U.K. SAR and fixed
wing (Eastern/Airnorth) excludes
corporate overhead allocations consistent
with financial reporting. Adjusted EBITDA
is a non-GAAP measure of which the most
comparable GAAP measure is net income
(loss). We have not provided a
reconciliation of this non-GAAP forward-
looking information to GAAP. The most
comparable GAAP measure to adjusted
EBITDA is net income (loss) which is not
calculated at this lower level of our
business as we do not allocate certain
costs, including corporate and other
overhead costs, interest expense and
income taxes within our accounting
system. Providing this data would require
unreasonable efforts in the form of
allocations of other costs across the
organization.
(4) Updated from guidance provided in May
2018.
(5) Total aircraft rent and total non-
aircraft rent are inclusive of the
respective components of rent expense for
U.K. SAR, Eastern, Airnorth plus oil and
gas.
BRISTOW GROUP INC. AND SUBSIDIARIES
GAAP RECONCILIATIONS
These financial measures have not been prepared in accordance with generally accepted accounting principles ("GAAP") and have
not been audited or reviewed by our independent auditor. These financial measures are therefore considered non-GAAP
financial measures. A description of the adjustments to and reconciliations of these non-GAAP financial measures to the most
comparable GAAP financial measures is as follows:
Three Months Ended
June 30,
2018 2017
---- ----
(In thousands, except percentages
and per share amounts)
Net loss $(32,041) $(55,746)
Loss (gain) on disposal of
assets 1,678 (699)
Special items 1,719 10,866
Depreciation and amortization 30,941 31,056
Interest expense 27,323 16,235
Provision (benefit) for
income taxes (2,851) 13,491
Adjusted EBITDA $26,769 $15,203
======= =======
Benefit (provision) for
income taxes $2,851 $(13,491)
Tax provision (benefit) on
loss on disposal of assets (404) 4,573
Tax provision (benefit) on
special items (8) 11,397
Adjusted benefit for income
taxes $2,439 $2,479
====== ======
Effective tax rate (1) 8.2% (31.9)%
Adjusted effective tax rate
(1) 7.7% 7.7%
Net loss attributable to
Bristow Group $(32,108) $(55,275)
Loss on disposal of assets 1,274 3,874
Special items 1,711 22,263
Adjusted net loss $(29,123) $(29,138)
======== ========
Diluted loss per share $(0.90) $(1.57)
Loss on disposal of assets 0.04 0.11
Special items 0.05 0.63
Adjusted diluted loss per
share (0.82) (0.83)
(1) Effective tax rate is
calculated by dividing
benefit (provision) for
income tax by pretax net
loss. Adjusted effective
tax rate is calculated by
dividing adjusted benefit
(provision) for income tax
by adjusted pretax net
loss. Tax provision
(benefit) on loss on
disposal of assets and tax
provision (benefit) on
special items is
calculated using the
statutory rate of the
entity recording the loss
on disposal of assets or
special item.
Three Months Ended
June 30, 2018
Adjusted Adjusted Adjusted
EBITDA
Net Loss Diluted
Loss
Per
Share
-----
(In thousands, except per share amounts)
Organizational
restructuring costs
(1) $(1,719) $(1,711) $(0.05)
Three Months Ended
June 30, 2017
Adjusted Adjusted Adjusted
EBITDA
Net Loss Diluted
Loss
Per
Share
-----
(In thousands, except per share amounts)
Organizational
restructuring costs
(1) $(9,674) $(6,602) $(0.19)
Inventory impairment (1,192) (775) (0.02)
Tax valuation
allowances (2) - (14,886) (0.42)
--- -------
Total special items $(10,866) $(22,263) (0.63)
======== ========
(1) Organizational restructuring costs
include severance expense related
to separation programs across our
global organization designed to
increase efficiency and cut costs
as well other restructuring costs.
(2) Relates to non-cash adjustments
related to the valuation of
deferred tax assets.
View original content:http://www.prnewswire.com/news-releases/bristow-group-reports-first-quarter-fiscal-year-2019-results-300691468.html
SOURCE Bristow Group Inc.
