Bristow Group Reports First Quarter Fiscal Year 2022 Results
Bristow Group Inc. (NYSE: VTOL) reported a net loss of $14.2 million or $0.50 per diluted share for the fiscal first quarter ended June 30, 2021, an improvement from a loss of $42.6 million in the previous quarter. Operating revenues increased to $288.4 million, up from $281.5 million. Adjusted EBITDA rose to $40.0 million, marking a significant improvement from $30.5 million in the prior quarter. Operating expenses decreased by $3.8 million, but impairment losses and rising fuel costs remain concerns.
- Operating revenues grew by $6.8 million from the preceding quarter.
- Improved adjusted EBITDA at $40.0 million compared to $30.5 million in the previous quarter.
- Lower operating expenses by $3.8 million due to reduced personnel and maintenance costs.
- Strong liquidity position with $298.8 million available.
- Net loss of $14.2 million despite revenue increase.
- Loss on impairment of $21.9 million related to certain assets.
- Operating expenses increased $26.9 million compared to the prior year quarter.
HOUSTON, Aug. 4, 2021 /PRNewswire/ -- Bristow Group Inc. (NYSE: VTOL) today reported net loss attributable to the Company of
Earnings before interest, taxes, depreciation and amortization ("EBITDA") was
Three Months Ended, | |||||||
June 30, 2021 | March 31, 2021 | ||||||
EBITDA | $ | 14,766 | $ | (32,168) | |||
Special items: | |||||||
Organizational restructuring costs | $ | 851 | $ | 7,887 | |||
Loss on impairment | 21,934 | 1,182 | |||||
PBH intangible amortization | 2,846 | 3,964 | |||||
Merger-related costs | 1,735 | 16,475 | |||||
Government grants | (390) | (375) | |||||
Early extinguishment of debt fees | — | 28,515 | |||||
Bankruptcy related costs | 446 | 407 | |||||
Insurance proceeds | (3,732) | (2,614) | |||||
Loss on sale of subsidiaries | 2,002 | — | |||||
$ | 25,692 | $ | 55,441 | ||||
Adjusted EBITDA | $ | 40,458 | $ | 23,273 | |||
(Gains) losses on asset dispositions, net | (499) | 7,199 | |||||
Adjusted EBITDA excluding asset dispositions | $ | 39,959 | $ | 30,472 | |||
"Since the commencement of the Board-authorized stock repurchase plan in September 2020, Bristow has repurchased approximately 1.9 million shares for gross consideration of
Sequential Quarter Results
Operating revenues in the current quarter were
Operating revenues from oil and gas services were
Operating expenses were
General and administrative expenses were
Merger-related costs, which primarily consist of professional services fees and severance costs, were
Restructuring costs were
Depreciation and amortization expenses were
During the current quarter, the Company recognized a loss on impairment of
During the current quarter, the Company recognized losses of
During the current quarter, the Company recognized a
Income tax benefit was
Calendar Quarter Results
Operating revenues in the current quarter were
Operating revenues from oil and gas services were
Operating revenues from government services were
Operating revenues from fixed wing services were
Operating expenses were
General and administrative expenses were
Merger-related costs, which primarily consist of professional services fees and severance costs, were
Restructuring costs were
Depreciation and amortization expenses were
During the current quarter, the Company recognized a loss on impairment of
During the current quarter, the Company sold two S76D medium helicopters, one B212 medium helicopter and other equipment resulting in a net gain of
Interest expense was
During the current quarter, the Company recognized a
During the prior year quarter, the Company recognized a
During the prior year quarter, the Company recognized a bargain purchase gain of
Other income, net was
Income tax benefit was
Liquidity and Capital Allocation
As of June 30, 2021, the Company had
In the current quarter, cash proceeds from dispositions of property and equipment were
Since the commencement of the Board authorized stock repurchase plan on September 16, 2020, the Company has repurchased approximately 1.9 million shares for gross consideration of
Conference Call
Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Thursday, August 5, 2021, to review the results for the fiscal first quarter ended June 30, 2021. The conference call can be accessed as follows:
All callers will need to reference the access code 3116282.
Within the U.S.: Operator Assisted Toll-Free Dial-In Number: (800) 353-6461
Outside the U.S.: Operator Assisted International Dial-In Number: (334) 323-0501
Replay
A telephone replay will be available through August 19, 2021 by dialing 888-203-1112 and utilizing the access code above. An audio replay will also be available on the Company's website at www.bristowgroup.com shortly after the call and will be accessible through August 19, 2021. The accompanying investor presentation will be available on August 5, 2021 on Bristow's website at www.bristowgroup.com.
About Bristow Group
Bristow Group Inc. is the leading global provider of vertical flight solutions. Bristow primarily provides aviation services to a broad base of major integrated, national and independent offshore energy companies. Bristow provides commercial search and rescue ("SAR") services in several countries and public sector SAR services in the United Kingdom ("U.K.") on behalf of the Maritime & Coastguard Agency ("MCA"). Additionally, the Company offers ad hoc helicopter and fixed wing transportation services.
Bristow currently has customers in Australia, Brazil, Canada, Chile, Colombia, Guyana, India, Mexico, Nigeria, Norway, Spain, Suriname, Trinidad, the U.K. and the U.S.
Forward-Looking Statements Disclosure
This press release contains "forward-looking statements." Forward-looking statements represent Bristow Group Inc.'s (the "Company") current expectations or forecasts of future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "project," or "continue," or other similar words. These statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, reflect management's current views with respect to future events and therefore are subject to significant risks and uncertainties, both known and unknown. The Company's actual results may vary materially from those anticipated in forward-looking statements. The Company cautions investors not to place undue reliance on any forward-looking statements.
Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which the forward-looking statement is based that occur after the date hereof. Risks that may affect forward-looking statements include, but are not necessarily limited to, those relating to: the COVID-19 pandemic and related economic repercussions have resulted, and may continue to result, in a decrease in the price of and demand for oil, which has caused, and may continue to cause, a decrease in the demand for our services; expected cost synergies and other benefits of the merger (the "Merger") of the entity formerly known as Bristow Group Inc. ("Old Bristow") and Era Group Inc. ("Era") might not be realized within the expected time frames, might be less than projected or may not be realized at all; the ability to successfully integrate the operations, accounting and administrative functions of Era and Old Bristow; managing a significantly larger company than before the completion of the Merger; diversion of management time on issues related to integration of the companies; the increase in indebtedness as a result of the Merger; operating costs, customer loss and business disruption following the Merger, including, without limitation, difficulties in maintaining relationships with employees and customers, may be greater than expected; our reliance on a limited number of customers and the reduction of our customer base as a result of bankruptcies or consolidation; the possibility that we may be unable to maintain compliance with covenants in our financing agreements; fluctuations in worldwide prices of and demand for oil and natural gas; fluctuations in levels of oil and natural gas exploration, development and production activities; fluctuations in the demand for our services; the possibility that we may impair our long-lived assets and other assets, including inventory, property and equipment and investments in unconsolidated affiliates; our ability to implement operational improvement efficiencies with the objective of rightsizing our global footprint and further reducing our cost structure; the possibility of significant changes in foreign exchange rates and controls, including as a result of the U.K. having exited from the European Union ("E.U.") ("Brexit"); the impact of continued uncertainty surrounding the effects Brexit will have on the British, E.U. and global economies and demand for oil and natural gas; potential effects of increased competition; the risk of future material weaknesses we may identify while we work to align policies, principles, and practices of the combined company following the Merger or any other failure by us to maintain effective internal controls; the possibility that we may be unable to re-deploy our aircraft to regions with greater demand; the possibility of changes in tax and other laws, regulations, and policies, including, without limitation, actions of the Biden Administration that impact oil and gas operations or favor renewable energy projects in the U.S.; the possibility that we may be unable to dispose of older aircraft through sales into the aftermarket; general economic conditions, including the capital and credit markets; the possibility that segments of our fleet may be grounded for extended periods of time or indefinitely; the existence of operating risks inherent in our business, including the possibility of declining safety performance; the possibility of political instability, war or acts of terrorism in any of the countries where we operate; the possibility that reductions in spending on aviation services by governmental agencies could lead to modifications of our search and rescue ("SAR") contract terms with the U.K. government, our contracts with the Bureau of Safety and Environmental Enforcement or delays in receiving payments under such contracts; and our reliance on a limited number of helicopter manufacturers and suppliers. You should not place undue reliance on our forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond our control. Our forward-looking statements are based on the information currently available to us and speak only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for us to predict these matters or how they may affect us. We have included important factors in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2021 (the "Annual Report") which we believe over time, could cause our actual results, performance or achievements to differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements. You should consider all risks and uncertainties disclosed in the Annual Report and in our filings with the United States Securities and Exchange Commission (the "SEC"), all of which are accessible on the SEC's website at www.sec.gov.
BRISTOW GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except share and per share amounts) | |||||||||||
Three Months Ended | Favorable/ | ||||||||||
June 30, 2021 | March 31, 2021 | ||||||||||
Revenues: | |||||||||||
Operating revenues | $ | 288,351 | $ | 281,519 | $ | 6,832 | |||||
Reimbursable revenues | 12,251 | 11,813 | 438 | ||||||||
Total revenues | 300,602 | 293,332 | 7,270 | ||||||||
Costs and expenses: | |||||||||||
Operating expenses | 214,503 | 218,295 | 3,792 | ||||||||
Reimbursable expenses | 12,114 | 11,697 | (417) | ||||||||
General and administrative expenses | 37,483 | 40,678 | 3,195 | ||||||||
Merger-related costs | 1,735 | 16,475 | 14,740 | ||||||||
Restructuring costs | 851 | 7,887 | 7,036 | ||||||||
Depreciation and amortization | 23,195 | 17,254 | (5,941) | ||||||||
Total costs and expenses | 289,881 | 312,286 | 22,405 | ||||||||
Loss on impairment | (21,934) | (1,182) | (20,752) | ||||||||
Gain (loss) on disposal of assets | 499 | (7,199) | 7,698 | ||||||||
Loss from unconsolidated affiliates, net | (1,517) | (440) | (1,077) | ||||||||
Operating loss | (12,231) | (27,775) | 15,544 | ||||||||
Interest income | 66 | 238 | (172) | ||||||||
Interest expense | (10,624) | (12,108) | 1,484 | ||||||||
Loss on extinguishment of debt | — | (28,515) | 28,515 | ||||||||
Reorganization items, net | (446) | (407) | (39) | ||||||||
Loss on sale of subsidiaries | (2,002) | — | (2,002) | ||||||||
Other, net | 6,184 | 7,037 | (853) | ||||||||
Total other income (expense), net | (6,822) | (33,755) | 26,933 | ||||||||
Loss before benefit for income taxes | (19,053) | (61,530) | 42,477 | ||||||||
Benefit for income taxes | 4,842 | 19,092 | (14,250) | ||||||||
Net loss | (14,211) | (42,438) | 28,227 | ||||||||
Net (income) loss attributable to noncontrolling interests | 14 | (152) | 166 | ||||||||
Net loss attributable to Bristow Group Inc | $ | (14,197) | $ | (42,590) | $ | 28,393 | |||||
Basic loss per common share | $ | (0.50) | $ | (1.47) | |||||||
Diluted loss per common share | $ | (0.50) | $ | (1.47) | |||||||
Weighted average common shares outstanding, basic | 28,669,417 | 28,946,945 | |||||||||
Weighted average common shares outstanding, diluted | 28,669,417 | 28,946,945 | |||||||||
EBITDA | $ | 14,766 | $ | (32,168) | $ | 46,934 | |||||
Adjusted EBITDA | $ | 40,458 | $ | 23,273 | $ | 17,185 | |||||
Adjusted EBITDA excluding asset dispositions | $ | 39,959 | $ | 30,472 | $ | 9,487 | |||||
BRISTOW GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except share and per share amounts) | |||||||||||
Three Months Ended | Favorable/ | ||||||||||
June 30, 2021 | June 30, 2020 | ||||||||||
Revenues: | |||||||||||
Operating revenues | $ | 288,351 | $ | 261,508 | $ | 26,843 | |||||
Reimbursable revenues | 12,251 | 8,685 | 3,566 | ||||||||
Total revenues | 300,602 | 270,193 | 30,409 | ||||||||
Costs and expenses: | |||||||||||
Operating expenses | 214,503 | 187,555 | (26,948) | ||||||||
Reimbursable expenses | 12,114 | 8,648 | (3,466) | ||||||||
General and administrative expenses | 37,483 | 35,394 | (2,089) | ||||||||
Merger-related costs | 1,735 | 17,418 | 15,683 | ||||||||
Restructuring costs | 851 | 3,012 | 2,161 | ||||||||
Depreciation and amortization | 23,195 | 16,356 | (6,839) | ||||||||
Total costs and expenses | 289,881 | 268,383 | (21,498) | ||||||||
Loss on impairment | (21,934) | (19,233) | (2,701) | ||||||||
Gain on disposal of assets | 499 | 5,522 | (5,023) | ||||||||
Loss from unconsolidated affiliates, net | (1,517) | (1,978) | 461 | ||||||||
Operating loss | (12,231) | (13,879) | 1,648 | ||||||||
Interest income | 66 | 262 | (196) | ||||||||
Interest expense | (10,624) | (12,504) | 1,880 | ||||||||
Loss on extinguishment of debt | — | (615) | 615 | ||||||||
Reorganization items, net | (446) | — | (446) | ||||||||
Loss on sale of subsidiaries | (2,002) | — | (2,002) | ||||||||
Change in fair value of preferred stock derivative liability | — | 15,416 | (15,416) | ||||||||
Gain on bargain purchase | — | 75,433 | (75,433) | ||||||||
Other, net | 6,184 | 4,001 | 2,183 | ||||||||
Total other income (expense), net | (6,822) | 81,993 | (88,815) | ||||||||
Income (loss) before benefit for income taxes | (19,053) | 68,114 | (87,167) | ||||||||
Benefit for income taxes | 4,842 | 3,290 | 1,552 | ||||||||
Net income (loss) | (14,211) | 71,404 | (85,615) | ||||||||
Net loss attributable to noncontrolling interests | 14 | 73 | (59) | ||||||||
Net income (loss) attributable to Bristow Group Inc | $ | (14,197) | $ | 71,477 | $ | (85,674) | |||||
Basic earnings (loss) per common share(1) | $ | (0.50) | $ | 18.41 | |||||||
Diluted earnings (loss) per common share(1) | $ | (0.50) | $ | 5.16 | |||||||
Weighted average common shares outstanding, basic | 28,669,417 | 11,102,611 | |||||||||
Weighted average common shares outstanding, diluted | 28,669,417 | 38,988,528 | |||||||||
EBITDA | $ | 14,766 | $ | 96,974 | $ | (82,208) | |||||
Adjusted EBITDA | $ | 40,458 | $ | 49,780 | $ | (9,322) | |||||
Adjusted EBITDA excluding asset dispositions | $ | 39,959 | $ | 44,258 | $ | (4,299) | |||||
(1) | For the three months ended June 30, 2020, EPS takes into account the impact of the Merger. |
Beginning in fiscal year 2022, the revenues by line of service tables have been modified to more accurately reflect how management views the Company's lines of service. These changes include the addition of a Government services line of service which includes revenues from U.K. SAR, the U.S. Bureau of Safety and Environmental Enforcement ("BSEE"), and other government contracts. In addition, our Other activities and services ("other" services) will now reflect revenues derived from leasing aircraft to non-governmental third party operators, oil and gas contracts that do not materially fit into one of the three major oil and gas operating regions and other services as they arise. As such, operating revenues from Asia Pacific oil and gas services are now shown under other services following the exit of that line of service in the Asia Pacific region in the Current Quarter. Prior period amounts will not match the previously reported amounts by individual lines of service. Management believes this change provides more relevant information needed to understand and analyze the Company's current lines of service.
BRISTOW GROUP INC. REVENUES BY LINE OF SERVICE (unaudited, in thousands) | |||||||||||
Three Months Ended | |||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||
Oil and gas services: | |||||||||||
Europe | $ | 99,901 | $ | 93,850 | $ | 105,029 | |||||
Americas | 75,003 | 72,785 | 56,893 | ||||||||
Africa | 14,692 | 18,976 | 30,015 | ||||||||
Total oil and gas services | 189,596 | 185,611 | 191,937 | ||||||||
Government services(1) | 70,436 | 67,032 | 54,611 | ||||||||
Fixed wing services | 24,654 | 22,013 | 11,559 | ||||||||
Other services(2) | 3,665 | 6,863 | 3,401 | ||||||||
$ | 288,351 | $ | 281,519 | $ | 261,508 | ||||||
(1) | Includes revenues of approximately |
(2) | Includes Asia Pacific and certain Europe revenues of approximately |
FLIGHT HOURS BY LINE OF SERVICE (unaudited) | ||||||||
Three Months Ended | ||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | ||||||
Oil and gas services: | ||||||||
Europe | 11,833 | 11,207 | 12,438 | |||||
Americas | 8,777 | 8,237 | 4,807 | |||||
Africa | 2,078 | 2,180 | 1,457 | |||||
Total oil and gas services | 22,688 | 21,624 | 18,702 | |||||
Government services(1) | 3,925 | 3,240 | 2,468 | |||||
Fixed wing services | 3,296 | 3,458 | 2,164 | |||||
Other services(2)(3) | 9 | 110 | 85 | |||||
29,918 | 28,432 | 23,419 | ||||||
(1) | Includes flight hours of approximately 953 and 299 hours related to government services that were previously included in the oil and gas and other service lines for the three months ended March 31, 2021 and June 30, 2020, respectively. |
(2) | Consists of Asia Pacific flight hours that were previously included in the oil and gas service line for the three months ended March 31, 2021 and June 30, 2020, respectively. |
(3) | Does not include hours flown by helicopters in third party leasing contracts |
BRISTOW GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) | |||||||
June 30, 2021 | March 31, 2021 | ||||||
ASSETS | (unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 248,674 | $ | 231,079 | |||
Accounts receivable | 198,144 | 215,620 | |||||
Inventories | 92,894 | 92,180 | |||||
Assets held for sale | 7,432 | 14,750 | |||||
Prepaid expenses and other current assets | 30,251 | 32,119 | |||||
Total current assets | 577,395 | 585,748 | |||||
Property and equipment | 1,082,116 | 1,090,094 | |||||
Accumulated depreciation | (107,459) | (85,535) | |||||
Net property and equipment | 974,657 | 1,004,559 | |||||
Investment in unconsolidated affiliates | 19,416 | 37,530 | |||||
Right-of-use assets | 226,970 | 246,667 | |||||
Other assets | 115,215 | 117,766 | |||||
Total assets | $ | 1,913,653 | $ | 1,992,270 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 63,844 | $ | 69,542 | |||
Accrued liabilities | 214,039 | 219,613 | |||||
Short-term borrowings and current maturities of long-term debt | 16,043 | 15,965 | |||||
Total current liabilities | 293,926 | 305,120 | |||||
Long-term debt, less current maturities | 525,571 | 527,528 | |||||
Deferred taxes | 33,801 | 42,430 | |||||
Long-term operating lease liabilities | 152,258 | 167,718 | |||||
Deferred credits and other liabilities | 45,939 | 50,831 | |||||
Total liabilities | 1,051,495 | 1,093,627 | |||||
Redeemable noncontrolling interests | — | 1,572 | |||||
Stockholders' investment | |||||||
Common stock | 303 | 303 | |||||
Additional paid-in capital | 690,041 | 687,715 | |||||
Retained earnings | 212,814 | 227,011 | |||||
Treasury shares, at cost | (35,700) | (10,501) | |||||
Accumulated other comprehensive income | (4,749) | (6,915) | |||||
Total Bristow Group Inc. stockholders' investment | 862,709 | 897,613 | |||||
Noncontrolling interests | (551) | (542) | |||||
Total stockholders' investment | 862,158 | 897,071 | |||||
Total liabilities, and stockholders' equity | $ | 1,913,653 | $ | 1,992,270 | |||
Reconciliation of Non-GAAP Metrics
The Company's management uses EBITDA and Adjusted EBITDA to assess the performance and operating results of its business. EBITDA is defined as Earnings before Interest expense, Taxes, Depreciation and Amortization. Adjusted EBITDA is defined as EBITDA further adjusted for certain special items that occurred during the reported period, as noted below. The Company includes EBITDA and Adjusted EBITDA to provide investors with a supplemental measure of its operating performance. Neither EBITDA nor Adjusted EBITDA is a recognized term under generally accepted accounting principles in the U.S. ("GAAP"). Accordingly, they should not be used as an indicator of, or an alternative to, net income as a measure of operating performance. In addition, EBITDA and Adjusted EBITDA are not intended to be measures of free cash flow available for management's discretionary use, as they do not consider certain cash requirements, such as debt service requirements. Because the definitions of EBITDA and Adjusted EBITDA (or similar measures) may vary among companies and industries, they may not be comparable to other similarly titled measures used by other companies.
The following table provides a reconciliation of net income, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA (in thousands).
Three Months Ended | |||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||
Net income (loss) | (14,211) | (42,438) | 71,404 | ||||||||
Depreciation and amortization | 23,195 | 17,254 | 16,356 | ||||||||
Interest expense | 10,624 | 12,108 | 12,504 | ||||||||
Income tax (benefit) expense | (4,842) | (19,092) | (3,290) | ||||||||
EBITDA | $ | 14,766 | $ | (32,168) | $ | 96,974 | |||||
Special items (1) | 25,692 | 55,441 | (47,194) | ||||||||
Adjusted EBITDA | $ | 40,458 | $ | 23,273 | $ | 49,780 | |||||
(Gains) losses on asset dispositions, net | (499) | 7,199 | (5,522) | ||||||||
Adjusted EBITDA excluding asset dispositions | $ | 39,959 | $ | 30,472 | $ | 44,258 | |||||
(1) | Special items include the following: |
Three Months Ended | |||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||
Organizational restructuring costs | $ | 851 | $ | 7,887 | $ | 3,011 | |||||
Loss on impairment | 21,934 | 1,182 | 19,233 | ||||||||
PBH intangible amortization | 2,846 | 3,964 | 5,136 | ||||||||
Merger-related costs | 1,735 | 16,475 | 17,420 | ||||||||
Government grants(2) | (390) | (375) | (1,760) | ||||||||
Bargain purchase gain | — | — | (75,433) | ||||||||
Early extinguishment of debt fees | — | 28,515 | 615 | ||||||||
Change in fair value of preferred stock derivative liability | — | — | (15,416) | ||||||||
Bankruptcy related costs | 446 | 407 | — | ||||||||
Insurance proceeds | (3,732) | (2,614) | — | ||||||||
Loss on sale of subsidiaries | 2,002 | — | — | ||||||||
$ | 25,692 | $ | 55,441 | $ | (47,194) | ||||||
___________________________ | |
(2) | COVID-19 related government relief grants |
Pro Forma Q1 FY21 Reconciliation
Pro Forma EBITDA and Pro Forma Adjusted EBITDA reflect EBITDA and Adjusted EBITDA of Old Bristow and Era Group Inc. before the Merger for the period beginning April 1, 2020 through June 11, 2020, plus EBITDA and Adjusted EBITDA for the post-Merger period through June 30, 2020. The following table provides a reconciliation of net income, the most directly comparable GAAP measure, to Pro Forma EBITDA and Pro Forma Adjusted EBITDA for the three months ended June 30, 2020 (in thousands).
Old Bristow | Era Group Inc. | Legacy Era | Pro Forma | ||||||||||||
Three Months June 30, 2020 | April 1, 2020 - | June 12 - 30, | Three Months June 30, 2020 | ||||||||||||
Net income (loss) | $ | 75,708 | $ | (18,059) | $ | (4,305) | $ | 53,344 | |||||||
Depreciation and amortization | 15,914 | 7,818 | 443 | 24,175 | |||||||||||
Interest expense | 11,755 | 2,650 | 749 | 15,154 | |||||||||||
Income tax (benefit) expense | (3,798) | (2,467) | 508 | (5,757) | |||||||||||
EBITDA | $ | 99,579 | $ | (10,058) | $ | (2,605) | $ | 86,916 | |||||||
Special items (1) | (49,696) | 13,744 | 2,502 | (33,450) | |||||||||||
Adjusted EBITDA | $ | 49,883 | $ | 3,686 | $ | (103) | $ | 53,466 | |||||||
(Gains) losses on asset dispositions, net | (5,527) | 141 | 5 | (5,381) | |||||||||||
Adjusted EBITDA excluding asset dispositions | $ | 44,356 | $ | 3,827 | $ | (98) | $ | 48,085 | |||||||
(1) | Special items include the following: |
Old Bristow | Era Group Inc. | Legacy Era | Pro Forma | ||||||||||||
Three Months June 30, 2020 | April 1, 2020 - | June 12 - 30, | Three Months June 30, 2020 | ||||||||||||
Loss on impairments | $ | 19,233 | $ | — | $ | — | $ | 19,233 | |||||||
Merger-related costs | 15,103 | 13,575 | 2,317 | 30,995 | |||||||||||
PBH intangible amortization | 4,951 | 169 | 185 | 5,305 | |||||||||||
Organizational restructuring costs | 3,011 | — | — | 3,011 | |||||||||||
Early extinguishment of debt fees | 615 | — | — | 615 | |||||||||||
Government grants(2) | (1,760) | — | — | (1,760) | |||||||||||
Change in fair value of preferred stock derivative liability | (15,416) | — | — | (15,416) | |||||||||||
Bargain purchase gain | (75,433) | — | — | (75,433) | |||||||||||
$ | (49,696) | $ | 13,744 | $ | 2,502 | $ | (33,450) | ||||||||
___________________________ | |
(2) | COVID-19 related government relief grants |
Adjusted Free Cash Flow Reconciliation
Free Cash Flow represents the Company's net cash provided by operating activities plus proceeds from disposition of property and equipment, less expenditures related to purchases of property and equipment. Adjusted Free Cash Flow is Free Cash Flow adjusted to exclude professional services fees and other costs paid in relation to the Merger, fresh-start accounting and the Chapter 11 Cases. Management believes that the use of Adjusted Free Cash Flow is meaningful as it measures the Company's ability to generate cash from its business after excluding cash payments for special items. Management uses this information as an analytical indicator to assess the Company's liquidity and performance. However, investors should note numerous methods may exist for calculating a company's free cash flow. As a result, the method used by management to calculate Adjusted Free Cash Flow may differ from the methods used by other companies to calculate their free cash flow.
The following table provides a reconciliation of net cash provided by operating activities, the most directly comparable GAAP measure, to Free Cash Flow and Adjusted Free Cash Flow (in thousands).
Three Months Ended | Three Months Ended | ||||||
Net cash provided by operating activities | $ | 36,441 | $ | 36,776 | |||
Plus: Proceeds from disposition of property and equipment | 10,621 | 1,381 | |||||
Less: Purchases of property and equipment | (2,968) | (3,612) | |||||
Free Cash Flow | $ | 44,094 | $ | 34,545 | |||
Plus: Organizational restructuring costs | 706 | 1,939 | |||||
Plus: Merger-related costs | 1,853 | 18,827 | |||||
Less: Government grants | (343) | (375) | |||||
Adjusted Free Cash Flow | $ | 46,310 | $ | 54,936 | |||
Net (proceeds from)/purchases of property and equipment ("Net Capex") | (7,653) | 2,231 | |||||
Adjusted Free Cash Flow excluding Net Capex | $ | 38,657 | $ | 57,167 | |||
BRISTOW GROUP INC. FLEET COUNT (unaudited) | ||||||||||||||||||
Number of Aircraft | ||||||||||||||||||
Type | Owned Aircraft | Leased Aircraft | Aircraft Held For | Consolidated | Max Pass Capacity | Average | ||||||||||||
Heavy Helicopters: | ||||||||||||||||||
S-92A | 35 | 26 | — | 61 | 19 | 12 | ||||||||||||
S-92A U.K. SAR | 3 | 7 | — | 10 | 19 | 7 | ||||||||||||
H225 | — | — | 2 | 2 | 19 | 10 | ||||||||||||
AW189 | 6 | 1 | — | 7 | 16 | 6 | ||||||||||||
AW189 U.K. SAR | 11 | — | — | 11 | 16 | 5 | ||||||||||||
55 | 34 | 2 | 91 | |||||||||||||||
Medium Helicopters: | ||||||||||||||||||
AW139 | 52 | 7 | — | 59 | 12 | 10 | ||||||||||||
S-76 C+/C++ | 17 | — | 4 | 21 | 12 | 13 | ||||||||||||
S-76D | 8 | — | — | 8 | 12 | 7 | ||||||||||||
B212 | 2 | — | — | 2 | 12 | 39 | ||||||||||||
79 | 7 | 4 | 90 | |||||||||||||||
Light—Twin Engine Helicopters: | ||||||||||||||||||
AW109 | 6 | — | — | 6 | 7 | 15 | ||||||||||||
EC135 | 10 | — | — | 10 | 6 | 12 | ||||||||||||
16 | — | — | 16 | |||||||||||||||
Light—Single Engine Helicopters: | ||||||||||||||||||
AS350 | 17 | — | — | 17 | 4 | 24 | ||||||||||||
AW119 | 13 | — | — | 13 | 7 | 15 | ||||||||||||
30 | — | — | 30 | |||||||||||||||
Total Helicopters | 180 | 41 | 6 | 227 | 12 | |||||||||||||
Fixed wing | 7 | 4 | — | 11 | ||||||||||||||
UAV | — | 2 | — | 2 | ||||||||||||||
Total Fleet | 187 | 47 | 6 | 240 | ||||||||||||||
______________________ | |
(1) | Reflects the average age of helicopters that are owned. |
The chart below presents the number of aircraft in our fleet and their distribution among the regions in which we operate as of June 30, 2021 and the percentage of operating revenue that each of our regions provided during the current quarter.
Percentage of Current Quarter Operating Revenue | Heavy | Medium | Light Twin |
Light Single |
UAV |
Fixed Wing |
Total | ||||||||||||||||
Europe | 57 | % | 63 | 12 | — | 4 | 2 | — | 81 | ||||||||||||||
Americas | 29 | % | 22 | 58 | 16 | 26 | — | — | 122 | ||||||||||||||
Asia Pacific | 8 | % | — | 2 | — | — | — | 9 | 11 | ||||||||||||||
Africa | 6 | % | 6 | 18 | — | — | — | 2 | 26 | ||||||||||||||
Total | 100 | % | 91 | 90 | 16 | 30 | 2 | 11 | 240 | ||||||||||||||
View original content to download multimedia:https://www.prnewswire.com/news-releases/bristow-group-reports-first-quarter-fiscal-year-2022-results-301348756.html
SOURCE Bristow Group
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