Print Page  |  Close Window

RSS Content

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,
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 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,
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 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

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 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
EBITDA


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 Ended
June 30, 2017


Adjusted
EBITDA


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.