Bristow Group (BRS) Misses Q2 EPS by 14c, Revenues Miss; Offers FY19 Revenue Guidance Below Consensus

Bristow Group (NYSE: BRS) reported Q2 EPS of ($0.78), $0.14 worse than the analyst estimate of ($0.64). Revenue for the quarter came in at $334.71 million versus the consensus estimate of $340.98 million.

"Amidst the uneven nature of the recovery in our global oil and gas business, Bristow remained focused on serving its growing global customer base, winning new contracts and delivering excellent safety improvement from the first quarter," said Jonathan Baliff, Chief Executive Officer of Bristow Group. "Despite significant progress in strengthening service to our offshore oil and gas customers, and a solid performance from our U.K. SAR business, our financial results were affected negatively by foreign exchange volatility, the timing of certain operating costs and continued challenges in our fixed wing operations - and we have lowered our Bristow standalone adjusted EBITDA guidance accordingly.

"Today, we are announcing the signing of an agreement to acquire Columbia Helicopters. With this $560 million transaction, Bristow is taking a significant step forward today in terms of growing our diversified industrial aviation business and strengthening our consolidated financial position.

"The combination will create the world\'s most diverse and effective rotor-wing fleet for our clients, with a platform that is capable of serving almost any rotor-wing mission across the globe. The acquisition will diversify our revenue by geography and end-market, deepen our position with the U.S. government and enable us to pursue global government contract opportunities that would not be available to either standalone company. This transaction, upon close, will significantly expand annual long-term contracted revenue, EBITDA and operating cash flow, in addition to deleveraging our balance sheet, and is expected to be immediately accretive to earnings per share and operating cash flow in fiscal year 2019," added Jonathan Baliff.

GUIDANCE:

Bristow Group sees FY2019 revenue of $1.25-1.35 billion, versus the consensus of $1.38 billion.

For earnings history and earnings-related data on Bristow Group (BRS) click here.

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