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02.08.2018 22:55:00
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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 | ||||||||||
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 | ||||||||
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 | ||||||||||
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 | ||||||||||
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 | ||||||||||
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 | ||||||||||
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 | ||||||||||
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 | ||||||||||
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 | |||||||
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, | |||||||
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 | ||||||||
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 | ||||||||
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 | ||||||||
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 | ||||||||
2018 | 2017 | |||||||
(In thousands, except percentages | ||||||||
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 | |||||||||||
Adjusted | 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 | |||||||||||
Adjusted | 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. |
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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