VTOL - Earnings call transcript Q1 2022

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Operator

Good day, and welcome to the Bristow Group Reports First Quarter Fiscal Year 2022 Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Crystal Gordon, Senior Vice President and General Counsel. Please go ahead.

Crystal Gordon

Thank you, Casey, and good morning, everyone. First Year Group's Earnings Bristow to Quarter XXXX Fiscal Call. Welcome Financial with on and and Chief the joined our Senior Jennifer phone President, Bradshaw; I'm Chris today President Whalen. Officer, Chief Vice Officer, Executive

remind our that subject described investor statements in presentation. me make that on detail and are everyone, management to call, Let may the Slide forward-looking more uncertainties risks are during X of

access You presentation investor website. our may our on

reconciliation reference certain release free non-GAAP financial such as is such GAAP and A presentation. and I'll earnings also measures, cash now call EBITDA included flow. and President turn will our CEO. of investor the to measures the We in to Chris? over our

Chris Bradshaw

and Thank the welcome everyone. call, to you, Crystal,

work safety, highest I Bristow's and thank in which core value I air priority. of June operational important XX, is for continues to and commend our Bristow and want of company remarks always, As and every The everyone integration begin hard on our most our service day. reliable will efficient valued achieved on to team quarter ended last Era customers accidents prepared X to our We to make the the their target safe, note and year. with a deliver following and merger the progress Bristow significant dedication

shares repurchased achieving savings. million for June $XX of rate million way X.X the In $XX XX, anniversary X-year already consideration company of over least the XX% captured merger, million well Bristow July, annual June of on total which have we our projects annualized million. the synergy at gross target at $XX to of projects representing placing of completed, the of As that savings and have run approximately means been of synergy the

review generation repurchased will shareholders. the an continued million, Over gross now per XX robust it over of to facilitated this capital purchase of consideration months, shares to a free I financial $XX our of CFO for return share. flows average price results. representing detailed Bristow's have of $XX.XX cash for Jennifer? over X.X of VTOL we more million turn last

Jennifer Whalen

Chris. you, Thank

with in service. a of merger-related you loss Air As and we of recognized -- may of lower accurately to compensation $X management affiliate million Petroleum loss Services we to million Columbia. party company's services yesterday, addition the line service of will derived changes lines more reflect other revenues government the into modified Bristow's views and filings aircraft for include services exclude million recognized reflect and the government Furthermore, that, third were our quarter $X expenses. primarily increase divesting $XX of administrative to expenses of by expenses. oil These fit related EBITDA have higher lower and how due we and compared a one asset materially $XX $XX not certain and With regions major held line fiscal $X services table in fiscal and Merger operating million oil and first $XX for operators, to from the services. due I due that do to costs $XX leasing $X compensation respectively. will sale. in fourth noticed increase the higher in $X a primarily revenues contracts Operating and to nongovernmental utilization of X and and a This and of personnel gas to increased unconsolidated General million and now gas Revenues lower year and by gas begin XXXX other arrive. have driven Europe quarter an impairment million, items to our the adjusted sequential dispositions and was year XXXX million comparison was oil as special they maintenance to of of results. restructuring quarter of million million, revenues in expenses costs. million. lower lower Also, related helicopters decreased subsidiary on were or financial

As to the fact transaction, the in quarter was days decreased quarter lower the Inc. closed operating compared the Bristow quarter dispositions due current in XXXX. previous comparability year the the with was results. $X from primarily June accounting million expenses. revenues. of from million in primarily acquirer the compensation a legacy costs. asset And that due prior special just of merger primarily The help oil and EBITDA of reminder, utilization comparable and To Operating results expenses, higher of is to Era higher million and quarter. to was includes Group maintenance results General merged XX decreased forma lower year the year prior to prior in items, the versus legacy professional for pro and Revenues expenses quarter EBITDA fees With $X focus million current Era on adjusted due service to fuel $XX gas. $XX million, prior forma that excluding due entire to special lower were if and and items for were periods reminder, $X presented, quarter year the lower, $X due the million I will for as the in decrease Bristow administrative year pro

turn back that Chris? cash from will believe a the At model sales, in flow. asset $XX $XXX proceeds adjusted merger consistent X million prior to excluding Chris generated the proceeds flow, continue which the strong call excluding adjusted free remarks. time, asset free have Since net June, to the with sales, million is further last cash cash free for for and have average current this we for quarter, Finally, generated business of quarters. net we this from I'll flow, the

Chris Bradshaw

Thank you, Jennifer.

my letter services. the in last earnings our stockholders, a we our positive call in and have recent noted future As to on demand for outlook

to in continue activity year. that and increase a We begin believe next oil broad-based will gas offshore significant,

this year. first half of calendar We that half better also believe of the be than will second XXXX the

generate in air the mobility. is strategic advanced processes and Europe Bristow will sheet farm cash recent robust gas amount for value demonstrated Casey? particular, shareholders. additional we that, in government In to positioned and of that balance present offshore expect substantial win believe the conclusion, in pending flow, With company Americas. open to our as we tender and positive for strong In to results. services, contracts government our exist cash upcoming line flow financial and wind oil military well Beyond in the create continue free support a growth SAR and opportunities free services, questions. opportunities We believe multiple profile Bristow let's and

Operator

Menocal come Instructions] first [Operator will with ISI. question Andres from Evercore Our

Andres Menocal

the break revenues behind that? somewhat drivers expect strong. is of you Or period government Regarding anomaly, the just that was your that services down particularly some this it an quarter, we comparisons? And could what seemed forward? prior given of Can going

Chris Bradshaw

to services. that important have reorganization done a revenues thing note One line we of report of how is we by our

are Within contracts Bureau are of with as government we around Environmental the services. in that of Safety contract, Enforcement, the we countries SAR world. contract U.K. there additional we in contracts that or not the that reported include So the number other government a that, BSEE, just well U.S. and various have have now but also as

the that exchange hours, as with the government in from services the government-related activity showing, mostly we small foreign highlighting adjustment increased is for line now a benefit that even contracts normalizing flight well. we're have. customer we're all an Within that, So for increase

Andres Menocal

Great. Okay.

could feel do to of fleet. sales? fleet size about in continued to shrink, are how just innings continues Second just the if think of the think question your Just is trajectory Where revenues? total for oil you regarding asset gas you I revenue for like trying and about the terms

Chris Bradshaw

proceeds to with continue when for active they've we combining an so. was business be the uses. a will and sales be models nonperforming don't expect rationalize over XX X there months last of assets, our to that as And some model. I together to asset considering merger, So nearly part came they'll or the deploy as and capital that really sell opportunity better certain fleets, fleet large cash been

a over generate it be than to a the been of So to We've assets months, will asset forward the part what going trying from last it's always XX but as of which capital smaller sales best or business be likely a model. our ourselves managing it the continue been viewed it's we're number return. of -- pace pool will

the cash flows the a do sale market. through to at One cash from avenues We out different monetizing and aircraft aircraft realize pretty helicopter And generally opportunities straightforward. A that. secondary from operators can And fixed-wing highest other we'll one. look net and to operating But or present ourselves customers into generate the few helicopters able the being is we pursue that. to value and those the third that. X speaking, is flows it's have own leasing end third-party our aircraft is for second

sometimes, we're helicopters. And that that means selling

in at in And of aircraft so time. models all being fleet our certain residual sale over trying proactive the and we're value for that, for the to helicopter looking constantly manage the

it is continue, So XX expectation. the but our last months the nearly will pace not over at

Andres Menocal

Great. Okay.

those following Just doing just whether my conversations? of on there for in ability have M&A the kind for this around just last now. the or you out color regional question other any qualitative market, engage Do a high-level to basis, operators in

Chris Bradshaw

Certainly.

to Sea high of world. we a consolidation. actually U.K. participate particularly the and regions positioned an overcapacity we're a from be consolidation would attractive in as where in Brazil a in to think that the And industry of the There And sustainable many in think we those certain the a and, there opportunities certain is we state areas. needs ways, And are optimistic level, Brazil, regions are or So of industry, continues remain about for around anyone as that. potential -- at again, North our in consolidation well equipment operators. number such optimistic about as more the to benefit reach sector

Operator

question from with Deysher comes next John Pinnacle. The

John Deysher

curious, I repurchase. share on Chris, was just the

Or stock. We XX $XX anything on just there? is was it million? with happy was are that help of can And authorization there spent you left what's buying I back maybe very -- you outstanding $XX million wondering, that

Chris Bradshaw

Certainly.

total repurchase Board $XX the million grant. share September, the last So approved

now, that. million used $XX we've of As of

as publicly have financial end the when would would to capacity that. beyond of if have need that. disclosed So a we be new also additional we and And Board-approved do course, July. $XX remaining that in plan But the million initiate we plan, of of which be

John Deysher

that point? The this Okay. for $X.X exclusively at is assets Great. helicopters million, held sale,

Jennifer Whalen

for held helicopters that's Yes. just sell. John, yes,

John Deysher

million, Are the subsidiaries Cougar? $XX.X ago, that in year included those so Okay. which what's that of subsidiaries are a -- in And -- investment $XX million Or down what's from or bucket? unconsolidated is those?

Jennifer Whalen

subsidiary is That in investment unconsolidated in That as well, is and the have we Egypt Cougar. also Brazil as Líder, well. our

John Deysher

Egypt.

Okay.

to you if decided what happen held those, to Or they would transitions would any decide any those those? -- you sale? would If sell to for assets of sell of just

Jennifer Whalen

held for category assets they That's They to -- account. would a the would not just different sale. sales. They be would just move by

John Deysher

Can you any with those share whether for of are us Okay. sale?

Chris Bradshaw

we Líder, on investment. Well, have exited that

that we the that X related of was charge impairment now large Cougar that is periods. small It's on a balance now previous the Cougar a amount that took So a relatively balance to -- in sheet. $XX Egypt at. current in We other million looking on other Jennifer did balance Cougar, you're That's in reflected referred PAS the a part, to impairment as than that's take a period. there. still the

and no, don't impairment Canada, sales, that business market to position the we In Egypt, the other good investment good from gas due and to company market the then over company a into in very do aircraft oil flow Cougar, enjoys to of any we minority continues like for really, And we enjoys. dividends in And Canada. leasing from the terms impairment, much we assets the generated which that. Bristow in has current the the benefit The position. have, cash in contraction stand notwithstanding still plans took That's while the that a offshore East years. business have realize XX% the market Cougar we to the Coast of

John Deysher

about And Is business Okay. in it the forward? -- asset Australia? that fixed-wing was core going a what

Chris Bradshaw

of is the And to years investment EXXX to fleet benefit we'll can in we I is actually better business. has for Airnorth the regional it's model business period that's that's over an is our in for the where jets make. plan one will EBITDA good generation position execute now. So look think or result We that at here. allow Airnorth of better important transition next those much We transition going in it an good of growth from upon evaluation at think right EXXXs The that. other the cash transitioning time, an that and through think there a team alternatives couple transition business. to to Once a whether best be make complete, the a flows for from

John Deysher

And that transition will be when complete?

Chris Bradshaw

XXXX. early by anticipating We're

John Deysher

about Can we're All things what's drilling, right. bring to Good. And Suriname, on going up-to-date I guess, there? Guyana, as good down us you Trinidad. offshore finally, hearing

Chris Bradshaw

success continue spots happy gas offshore have Yes, reserves that. discovered to in be for of industry. stable in last fairly oil to XX the and the in programs other an looking global and make where in basin absolutely just is continues continues and to one a Bristow Suriname, in of development discoveries. and a PETRONAS Guyana, life for market across similar like that in terms The characteristics a Apache, be by there the becoming border, position of there involved bright us. gas is are leading active prolific companies are to years the enjoyed It very particular, has few there. the are do similar a early prolific. been They for years, from cycle behind and where world-class just Exxon, area and And now the drilling is Trinidad has Total, lot really There oil others. Guyana it which Guyana. they

Caribbean a the much return cash that position, very for leading that one company. where nice generates triangle we flow the region Trinidad, So Guyana, have of Suriname, is

Operator

private We'll Ritzer, our question next [ph] take from Adam investor.

Unidentified Analyst

in a you EBITDA. I had done down the ago, EBITDA, did of But year-over-year, you're doing and, of on only example, sheet, revs guys Glad more refinancing, the to balance improvement are cash. and margins? see know soon. revs get I a hopefully, finished guess, of million great how were questions you guys For come of million will job in and any off did going million I that $XXX year $XX generating not have one the is there's to the buybacks $XX regards and million $X managing

a decremental more XXX% for with margins. any profitable Like little but of saves? why almost that? not $XX it's million there all So reason Is you're cost

Chris Bradshaw

question. the for thanks Adam,

slide those we a just X that's the at the basis, forma -- comparing that sent is pro we deck margin, look disclosure as and So periods that out. pro forma in on

the certainly are forma which of So pro in Jennifer as comparison the to look noted, quarter would numbers, comparison the that Inc. as-reported only June XX I everyone best days legacy that the because, XX, ended encourage Group for included at XXXX, for Q Era

and ability But also have our was the and there market started where XXXX. not and they roughly in all global after EBITDA expense impact have prices the to basis, that. part we did customer is margin to I percentage the where it, XXX Really, began revenues, related contributor basis see fact global customers It that, aircraft. to drop Fuel of that oil up. a fuel forma really, it, pro big points. delay a contract, operating early think, as but is on you obviously, So pandemic but in really, a of That's that. all shortly a to decision the of the have gone activity of in business, make the drop when

have charges over than off full monthly of is those And period would been periods. have prior year have roll-offs the period. this representative we in rolling a standing that seen you current more impact year that So of

So that's to well. it contributor as big a

As you'll a contract, variable flight recall, component relative revenues collect standing there. that to in the monthly majority hour Adam, of are charges we the the the given

Unidentified Analyst

Okay.

so fuel pass-throughs contracts the guess? fuel, on of In increases, terms don't I have

Chris Bradshaw

contracts And have our that pass-throughs. for do we then we of time. from training or Most yes, ferry of most either them incur But have to do. time non-revenue hours flights some customer

Unidentified Analyst

walk I going, are even to and offshore big things but activity new companies, help give how companies much services understand 'XX, to cycle. that being per take can know million the things just I guess, would what through first a all need need of get guys Can drilling all when EBITDA in better you're the deal? getting a on billion there? perhaps $XXX the do you we se, you like mentioned, really hopefully, it And the us and to you pointing saying $X.X Okay. indicate picture, the much you guidance you what Like upside? don't us the to get more to and of Bristow when announced some do you

Chris Bradshaw

will without guidance. gas half we guidance, into until Adam, this you broad-based year Look, calendar year offshore we give the believe Yes. getting recovery calendar financial occur in of better in half. and activity don't referenced, financial that as don't that will next be first second Directionally, the XXXX material But XXXX. we than a oil believe

as a greatly and idle work go of think aircraft benefit to optimistic are flow will it we from have We in back the company. activity, recovery and multiyear that improve that. cash capacity the will be currently that Bristow We about generation

also, that leases. continue as looking to period wherever that We over much that expense includes on aircraft the we we'll expenses be to side, optimize time, and expenses on have of And possible. the

So exception that move the have we support a that of need coming few in of to months. over next improvement lessors, we cash we And return have up in will around the will a keep result aircraft activity, for XX Bristow. flows of lease with maturities number customer aircraft to otherwise facilitate to aircraft aircraft an which the to

Unidentified Analyst

Right.

it. me let So rephrase

from you what could figure do? trying year, here? a new think how you're how for And there could XX%, do guys? much and more cycle the Bristow in related companies good revenue than that's haven't people to be there? you better see what you how revenue saying are the areas know out, And I mean other things industry to XX%, upside can I If upside historically, are but bring what a is XX%? saying, how I much it much is Like, owned

Chris Bradshaw

our Consistent don't long-standing the provide we guidance. Yes. behind financial background I the policy, appreciate with question.

percentages quote of cost to of upside. guidance, we better with the really that don't is of going about drive what's to kind which upside But there do. utilization most is significant any So and fleet

Operator

a ISI. we'll And take follow-up Andres with question Evercore Menocal from

Andres Menocal

give about from a you It amount, understand a in seemed should items quarter like couple, or Is most about guess, housekeeping be we'd line D&A around forward? release. jumped what Just couple how I how D&A think you in we of the press color up recent group just the think P&L. we just don't I saw to guidance. which out? how reflective on provided of But here financial going on the fair just questions, that a

Jennifer Whalen

Sure.

we -- adjustment So for during have $X.X of expense. an this adjustment did undepreciated assets million depreciation immaterial included an to period. previously nonrecurring This

Andres Menocal

or Perfect. your And from impact some Okay. just the seems it to just just understand just again, I perspective. more, know and I negative. but a or in one valuations positive either may. but have you losses, X operating net -- to quarters if it too think much, been so, cash really doesn't it's about Taxes, past like trying how it

going to understand the Just trying about to think how best tax forward. position

Jennifer Whalen

mean our taxes. that and $XX I cash million S-X, million, in a much cash hasn't really noted today, that tax of between $XX somewhere we changed from perspective,

have taxes our -- those book what that in do jurisdictions taxes their on are. around and it pay $XX from cash on time, But Our will we statement we time so certain a an on level depending jurisdictions be basis, million. annual of the that to could income fluctuate profitability

Operator

no showing questions. currently I'm time, this at And further

Chris Bradshaw

hope everyone, for safe to participating. to forward next and well. quarter. thank speaking everyone and you, again look Casey, I stays you, We Thank you

Operator

Ladies this for you concludes your and today's call. participation. gentlemen, Thank

your may phone disconnect now You lines.

Bristow (VTOL) 8 Aug 212022 Q1 Earnings call transcript