Bristow Group Reports First Quarter Fiscal Year 2019 Results

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August 2, 2018 4:55 PM EDT

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 EndedJune 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 30,2018

March 31,2018

% Change

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 EndedJune 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 EndedJune 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 EndedJune 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 EndedJune 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 EndedJune 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 EndedJune 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 RelationsLinda McNeillDirector, Investor Relations+1 713.267.7622

Global Media RelationsAdam MorganDirector, 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 EndedJune 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 30,2018

March 31,2018

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 EndedJune 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 EndedJune 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 EndedJune 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

of Current

Quarter

Operating

Revenue

Aircraft in Consolidated Fleet

Helicopters

Fixed

Wing (1)

Unconsolidated

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

Wing

Total

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

Wing

Total

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

Rent2

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 EndedJune 30,

2018

2017

(In thousands, except percentagesand 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 EndedJune 30, 2018

AdjustedEBITDA

Adjusted

Net Loss

Adjusted

Diluted

Loss

Per

Share

(In thousands, except per share amounts)

Organizational restructuring costs (1)

$

(1,719)

$

(1,711)

$

(0.05)

Three Months EndedJune 30, 2017

AdjustedEBITDA

Adjusted

Net Loss

Adjusted

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.

 

Cision View original content:http://www.prnewswire.com/news-releases/bristow-group-reports-first-quarter-fiscal-year-2019-results-300691468.html

SOURCE Bristow Group Inc.


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