Achieves 2023 Increased Outlook and
Affirms 2024 Outlook
HOUSTON, March 5,
2024 /PRNewswire/ --
- Total revenues of $337.9 million
in Q4 2023 compared to $338.1 million
in Q3 2023
- Net loss of $7.9 million, or
$0.28 per diluted share, in Q4 2023
compared to net income of $4.3
million, or $0.15 per diluted
share, in Q3 2023
- EBITDA adjusted to exclude special items, asset dispositions
and foreign exchange gains (losses) was $46.0 million in Q4 2023 compared to $56.6 million in Q3 2023
- Full year 2023 EBITDA adjusted to exclude special items, asset
dispositions and foreign exchange gains (losses) was $170.5 million compared to the upwardly revised
2023E outlook of $170.0 million
Bristow Group Inc. (NYSE: VTOL) today reported net loss
attributable to the Company of $7.9
million, or $0.28 per diluted
share, for its quarter ended December 31, 2023 (the "Current
Quarter") on operating revenues of $329.6
million compared to net income attributable to the Company
of $4.3 million, or $0.15 per diluted share, for the quarter ended
September 30, 2023 (the "Preceding Quarter") on operating
revenues of $330.3 million.
Earnings before interest, taxes, depreciation and amortization
("EBITDA") was $41.8 million in the
Current Quarter compared to $54.9
million in the Preceding Quarter. EBITDA adjusted to exclude
special items, gains or losses on asset dispositions and foreign
exchange gains was $46.0 million in
the Current Quarter compared to $56.6
million in the Preceding Quarter. The following table
provides a reconciliation of net income (loss) to EBITDA, Adjusted
EBITDA and Adjusted EBITDA excluding gains or losses on asset
dispositions and foreign exchange gains (in thousands, unaudited).
See "Non-GAAP Financial Measures" for further information on the
use of non-GAAP financial measures used herein.
|
Three Months
Ended
|
|
December 31,
2023
|
|
September 30,
2023
|
Net income
(loss)
|
$
(8,103)
|
|
$
4,345
|
Depreciation and
amortization expense
|
17,007
|
|
17,862
|
Interest expense,
net
|
11,274
|
|
10,008
|
Income tax
expense
|
21,598
|
|
22,637
|
EBITDA(1)
|
$
41,776
|
|
$
54,852
|
Special
items:
|
|
|
|
PBH
amortization
|
3,729
|
|
3,751
|
Merger and
integration costs
|
347
|
|
738
|
Reorganization
items, net
|
—
|
|
3
|
Other special
items(2)
|
1,873
|
|
2,966
|
|
$
5,949
|
|
$
7,458
|
Adjusted
EBITDA(1)
|
$
47,725
|
|
$
62,310
|
(Gains) losses
on disposal of assets
|
159
|
|
(1,179)
|
Foreign exchange
gains
|
(1,882)
|
|
(4,541)
|
Adjusted EBITDA
excluding asset dispositions and foreign exchange
|
$
46,002
|
|
$
56,590
|
|
|
|
|
|
|
|
|
|
|
(1)
|
EBITDA and Adjusted
EBITDA are non-GAAP financial measures. See definitions of these
measures and the reconciliation of GAAP to non-GAAP financial
measures in the Non-GAAP Financial Reconciliation
tables.
|
(2)
|
Other special items
include professional services fees that are not related to
continuing business operations and other nonrecurring
costs.
|
"On behalf of all Bristow team members around the world, I
extend our heartfelt condolences to the family and friends of our
dear colleague whose life was lost in the tragic SAR training
accident offshore Norway on
February 28, 2024. This is a deeply
sad and difficult time, and we will carry this loss with us
always," said Chris Bradshaw,
President and CEO of Bristow Group. "We are relieved to share that
the other crew members have now either been released from the
hospital or remain in stable condition at the hospital. Bristow is
fully cooperating with authorities investigating the accident, and
we will provide future updates as appropriate."
"Looking back on 2023, I want to thank and commend the Bristow
team for delivering many successful outcomes last year," said
Bradshaw. "We continued to progress our strategic goal to grow and
diversify our leading government services business with the
successful award of the €670 million Irish
Coast Guard contract, building upon the recent addition of
key government contracts in the United
Kingdom (UKSAR2G), Dutch Caribbean, the Netherlands, and the Falkland Islands. In our offshore energy
services business, the second half of 2023 marked the positive
inflection point beginning what we believe will be a multi-year
growth cycle. With the largest global fleet of offshore helicopters
and a significant presence in key regions, Bristow expects to be a
primary beneficiary of this extended growth cycle in offshore
energy. Revenues in 2023 were 8% higher than 2022, and Adjusted
EBITDA, excluding asset dispositions and foreign exchange,
increased by 24% compared to the prior year. In 2024, the mid-point
of our guidance range represents a similar year-over-year growth of
9% in revenues and over 20% in Adjusted EBITDA."
Sequential Quarter Results
Operating revenues in the Current Quarter were $0.7 million lower compared to the Preceding
Quarter. Operating revenues from offshore energy services were
$7.0 million higher primarily due to
a new contract in Norway and
increased utilization in Africa,
partially offset by lower lease payments received from Cougar
Helicopters Inc. ("Cougar") and lower utilization in the UK.
Operating revenues from government services were $3.8 million lower primarily due to lower
utilization and the weakening of the British pound sterling ("GBP")
relative to the U.S. dollar ("USD"). Fixed wing revenues were
$3.5 million lower primarily due to
lower seasonal utilization.
Operating expenses were $8.8
million higher in the Current Quarter primarily due to
higher fuel costs, leased-in equipment costs, repairs and
maintenance costs and personnel costs.
General and administrative expenses were $2.1 million lower in the Current Quarter
primarily due to lower compensation costs.
During the Current Quarter, the Company sold or otherwise
disposed of certain assets, resulting in net losses of $0.2 million. During the Preceding Quarter, the
Company sold or otherwise disposed of two helicopters and other
assets, resulting in net gains of $1.2
million.
During the Current Quarter, the Company recognized earnings of
$1.1 million from unconsolidated
affiliates compared to $3.7 million
in the Preceding Quarter.
Other income, net of $1.7 million
in the Current Quarter primarily resulted from foreign exchange
gains of $1.9 million, partially
offset by an unfavorable interest adjustment to the Company's
pension liability. Other income, net of $4.8
million in the Preceding Quarter primarily resulted from
foreign exchange gains of $4.5
million.
Income tax expense was $21.6
million in the Current Quarter compared to $22.6 million in the Preceding Quarter. The
change in income tax expense is primarily due to the earnings mix
of the Company's global operations and changes to deferred tax
valuation allowances and assets.
Full Year Results
On August 3, 2022, Bristow's Board
of Directors approved a change in the fiscal year end of the
Company from March 31st to December
31st, on a prospective basis, aligning its fiscal year to
the calendar year. As such, references below to the "Current Year"
refer to the twelve months ended December
31, 2023, and references to the "Prior Year" refer to the
twelve months ended December 31,
2022.
Bristow reported net loss attributable to the Company of
$6.8 million, or loss per diluted
share of $0.24, for the Current Year
on operating revenues of $1.3 billion
compared to net income attributable to the Company of $9.2 million, or $0.32 per diluted share, on operating revenues of
$1.2 billion for the Prior Year.
Operating revenues in the Current Year were $90.8 million higher compared to the Prior Year.
Operating revenues from offshore energy services were $29.7 million higher in the Current Year
primarily due to higher utilization in most geographic regions,
partially offset by the end of a contract in Guyana. Operating revenues from government
services were $53.7 million higher in
the Current Year primarily due to the commencement of new contracts
in the Falkland Islands,
the Netherlands and the Dutch
Caribbean. Operating revenues from fixed wing services were
$10.5 million higher in the Current
Year primarily due to increased rates.
Operating expenses were $49.2
million higher in the Current Year primarily due to higher
costs related to new contracts, higher personnel costs, insurance
costs and leased-in equipment costs, partially offset by lower fuel
and repairs and maintenance costs.
General and administrative expenses were $17.1 million higher in the Current Year
primarily due to increased headcount related to backfilling
positions that were vacant in the Prior Year, higher non-cash stock
compensation expense, severance costs, and higher tax expenses.
During the Prior Year, restructuring costs were $2.1 million primarily due to severance costs in
the Africa region.
During the Prior Year, the Company recognized a loss on
impairment of $5.2 million related to
a power-by-the-hour ("PBH") intangible asset write-off.
During the Current Year, the Company sold or otherwise disposed
of eight helicopters and other assets, resulting in net gains of
$1.1 million. During the Prior Year,
the Company sold twelve helicopters and other assets resulting in
net losses of $0.5 million.
During the Current Year, the Company recognized earnings of
$7.2 million from unconsolidated
affiliates compared to earnings of $1.1
million in the Prior Year.
Interest income was $7.0 million
higher than the Prior Year due to higher investment balances,
higher interest rates and income from sales-type leases.
Other expense, net of $9.9 million
in the Current Year primarily resulted from foreign exchange losses
of $10.7 million, partially offset by
a favorable interest adjustment to the Company's pension liability
of $0.4 million. Other income, net of
$33.4 million in the Prior Year
primarily resulted from foreign exchange gains of $20.9 million, government grants to fixed wing
services of $6.2 million, a favorable
interest adjustment to the Company's pension liability of
$2.7 million and a gain on sale of
inventory of $1.9 million.
Income tax expense was $24.9
million in the Current Year compared to $10.8 million in the Prior Year primarily due to
the earnings mix of the Company's global operations and changes to
deferred tax valuation allowances and assets.
2023 and 2024 Outlook
Please refer to the paragraph entitled "Forward Looking
Statements Disclosure" below for further discussion regarding the
risks and uncertainties as well as other important information
regarding Bristow's guidance. The following guidance also contains
the non-GAAP financial measure of Adjusted EBITDA. Please read the
paragraph entitled "Non-GAAP Financial Measures" for further
information.
After stronger than expected Q3 results, Bristow raised its 2023
Adjusted EBITDA guidance range from $150 - $170 million
to $165 - $175
million in the Preceding Quarter.
Select financial results for 2023 and targets for 2023 and 2024
are as follows (in USD, millions):
|
2023E(1)
|
|
2023A
|
|
2024E
|
Operating
revenues:
|
|
|
|
|
|
Offshore energy
services
|
$803
|
|
$810
|
|
$850 - $970
|
Government
services
|
$335
|
|
$337
|
|
$335 - $360
|
Fixed wing
services
|
$108
|
|
$107
|
|
$100 - $120
|
Other
services
|
$11
|
|
$10
|
|
$5 - $15
|
Total operating
revenues
|
$1,257
|
|
$1,264
|
|
$1,290 -
$1,465
|
|
|
|
|
|
|
Adjusted EBITDA,
excluding asset dispositions and FX
|
$170
|
|
$171
|
|
$190 -
$220
|
|
|
|
|
|
|
Cash
interest
|
~$40
|
|
$39
|
|
~$40
|
Cash taxes
|
$18
|
|
$19
|
|
$25 - $30
|
Maintenance capital
expenditures
|
$18
|
|
$14
|
|
$15 - $20
|
|
|
|
|
|
|
|
|
(1)
|
Reflects the mid-point
of the previously issued 2023 financial outlook ranges.
|
There are two main ways in which foreign currency fluctuations
impact Bristow's reported financials. The first is primarily
non-cash foreign exchange gains (losses) that are reported in the
Other Income line on the Income Statement. These are related to the
revaluation of balance sheet items, typically do not impact cash
flows, and thus are excluded in the Adjusted EBITDA presentation.
The second is through impacts to certain revenue and expense items,
which impact the Company's cash flows. The primary exposure is the
GBP/USD exchange rate.
|
2023A
|
|
2024E
|
(in millions, except
for exchange rates)
|
|
|
|
Adjusted EBITDA,
excluding asset dispositions and foreign exchange (gains)
losses
|
$171
|
|
$190 - $220
|
Average GBP/USD
exchange rate
|
1.24
|
|
1.27
|
Each £0.01 movement in the GBP/USD exchange rate would impact
2024E Adjusted EBITDA by +/- ~$1.5
million.
Outlook by Line of Service
Offshore Energy Services:
The increasing activity in offshore energy has driven a
constructive supply and demand balance for offshore helicopters.
Given our sector's late cycle exposure and the lag effect involving
new projects, we only recently have begun to see the impacts of a
multi-year growth cycle, with the second half of 2023 marking the
positive inflection point for Bristow's financial results. A
tighter equipment market, constrained global labor force and
inflationary cost pressures should further drive meaningful rate
increases, which we expect to capture during contract renewal and
new project tenders. Headwinds from continued supply chain
shortages, particularly those related to the S92 heavy helicopters,
are expected to continue through 2024.
Europe
region:
The full year impact of the newly commenced
offshore energy SAR contract in Norway is expected to have a positive impact
in 2024. Beyond that, we expect activity in the mature markets of
Norway and the UK to be mostly
stable in 2024.
Americas region:
The full year impact of expanded operations in
Brazil and potential additional
tenders in 2024 will contribute to meaningful increases in our
results. Exploration activity is expected to drive increased
utilization in the U.S. Gulf of
Mexico.
Africa
region:
Increased market activity has driven better
results in Nigeria, and we expect
this momentum to continue in 2024.
Government Services:
With operations in the Falkland
Islands, the Dutch Caribbean and the Netherlands now reflected in our full year
results, we anticipate 2024 will remain largely in line with 2023.
Our government services offering typically involves short periods
of investment followed by long periods of strong cash flows, and we
anticipate 2024 to be a period of investment related to contracts
scheduled to commence in late 2024. The transition to the
£1.6 billion UKSAR2G contract will begin in late 2024.
Operations in Ireland, for the
recently awarded €670 million Irish
Coast Guard contract, are set to commence towards the end of
2024, and its full year impacts in subsequent years will contribute
meaningfully to our financial results.
Fixed wing and other services:
Activity has increased with demand for fixed wing services and
charters. Pilot shortages continue to remain a challenge through
this upturn. We anticipate the financial performance of this
business will remain consistent with 2023.
Liquidity and Capital Allocation
As of December 31, 2023, the Company had $180.3 million of unrestricted cash and
$70.9 million of remaining
availability under its amended asset-based credit facility (the
"ABL Facility") for total liquidity of $251.2 million. Borrowings under the ABL Facility
are subject to certain conditions and requirements.
In the Current Quarter, purchases of property and equipment were
$19.4 million, of which $4.3 million were maintenance capital
expenditures, and cash proceeds from dispositions of property and
equipment were $0.1 million. In the
Preceding Quarter, purchases of property and equipment were
$18.4 million, of which $4.7 million were maintenance capital
expenditures, and cash proceeds from dispositions of property and
equipment were $7.3 million. See
Adjusted Free Cash Flow Reconciliation for a reconciliation of
Adjusted Free Cash Flow.
In January 2024, Bristow entered
into a new twelve-year secured equipment financing for an aggregate
principal amount of up to £55 million. The proceeds from the
financing will be used to support Bristow's capital commitments
related to the Second-Generation UK Search and Rescue (UKSAR2G)
contract. Bristow's obligations will be secured by four new AW139
SAR-configured helicopters to be delivered in 2024. The credit
facility has a 15-month availability period and is expected to fund
during 2024, subject to delivery of the new SAR-configured
helicopters. The credit facility will bear interest at a rate equal
to the Sterling Overnight Index Average ("SONIA") plus 2.75% per
annum.
Recent Events
On February 28, 2024, one of
Bristow's SAR helicopters, registration LN-OIJ with six crew
members onboard, was involved in an accident during a training
exercise approximately 15 nautical miles west of Bergen, Norway. Very sadly, one fatality was
confirmed. The other five crew members have either been released or
are in stable condition in the hospital. Bristow's highest priority
is to take care of our crew and their family members and provide
them with any assistance needed. The Company is in the process of
collecting pertinent information and will provide updates as
appropriate. Bristow is fully cooperating with authorities
investigating the accident.
On February 27, 2024, Bristow
announced an agreement with Leonardo for 10 AW189 super medium
helicopters plus options to purchase an additional 10 AW189
helicopters. The new AW189 helicopters will support offshore
transport as well as search and rescue (SAR) missions. Bristow
currently operates 21 AW189 helicopters globally, with an
additional five already scheduled for delivery beginning this year.
In addition to its Offshore Energy Services business, Bristow also
operates SAR-equipped AW189 helicopters in its Government Services
business. The new aircraft will offer added flexibility as well as
superior operational and environmental performance, including lower
CO2 emissions than comparable aircraft types. The aircraft
deliveries will occur over a three-year period from 2025-2028.
On February 28, 2024, Bristow
announced a Memorandum of Understanding (MOU) with The Helicopter
and Jet Company (THC), Saudi
Arabia's premier provider of commercial helicopter services
and fully owned by the Public Investment Fund (PIF). The two
companies plan to work together on advanced air mobility (AAM)
initiatives in the Kingdom of Saudi
Arabia as well as other collaborative vertical lift
endeavors.
Conference Call
Management will conduct a conference call starting at
9:00 a.m. ET (8:00 a.m. CT) on Wednesday, March 6, 2024, to review the results
for the quarter and full year ended December 31, 2023. The
conference call can be accessed using the following link:
Link to Access Earnings Call:
https://www.veracast.com/webcasts/bristow/webcasts/VTOL4Q23.cfm
Replay
A replay will be available through March
27, 2024 by using the link above. A replay will also be
available on the Company's website at www.bristowgroup.com shortly
after the call and will be accessible through March 27, 2024.
The accompanying investor presentation will be available on
March 6, 2024, on Bristow's website at
www.bristowgroup.com.
For additional information concerning Bristow, contact
Jennifer Whalen at
InvestorRelations@bristowgroup.com, (713) 369-4636 or visit Bristow
Group's website at https://ir.bristowgroup.com/.
About Bristow Group
Bristow Group Inc. is the leading global provider of innovative
and sustainable vertical flight solutions. Bristow primarily
provides aviation services to a broad base of offshore energy
companies and government entities. The Company's aviation services
include personnel transportation, search and rescue ("SAR"),
medevac, fixed wing transportation, unmanned systems, and ad-hoc
helicopter services.
Bristow currently has customers in Australia, Brazil, Canada, Chile, the Dutch Caribbean, the Falkland Islands, India, Ireland, the Kingdom
of Saudi Arabia, Mexico,
the Netherlands, Nigeria, Norway, Spain, Suriname, Trinidad, the UK 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 and, for the avoidance of doubt,
include all statements herein regarding the Company's financial
targets for the periods mentioned and operational outlook. 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 (including
the Company's financial targets for the periods mentioned and
operational outlook) 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, except as may be required by applicable
law.
Risks that may affect forward-looking statements include, but
are not necessarily limited to, those relating to: public health
crises, such as pandemics (including COVID-19) and epidemics, and
any related government policies and actions; any failure to
effectively manage, and receive anticipated returns from,
acquisitions, divestitures, investments, joint ventures and other
portfolio actions; our inability to execute our business strategy
for diversification efforts related to government services and
advanced air mobility; our reliance on a limited number of
customers and the reduction of our customer base as a result of
consolidation and/or the energy transition; the potential for
cyberattacks or security breaches that could disrupt operations,
compromise confidential or sensitive information, damage
reputation, expose to legal liability, or cause financial losses;
the possibility that we may be unable to maintain compliance with
covenants in our financing agreements; global and regional changes
in the demand, supply, prices or other market conditions affecting
oil and gas, including changes resulting from a public health
crisis or from the imposition or lifting of crude oil production
quotas or other actions that might be imposed by the Organization
of Petroleum Exporting Countries (OPEC) and other producing
countries; 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; the possibility of significant
changes in foreign exchange rates and controls; potential effects
of increased competition and the introduction of alternative modes
of transportation and solutions; 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 and regulations
and policies, including, without limitation, actions of the
governments that impact oil and gas operations or favor renewable
energy projects; 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 portions of our fleet may be grounded for extended
periods of time or indefinitely (including due to severe weather
events); 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 where we are seeking contracts could adversely affect or
lead to modifications of the procurement process or that such
reductions in spending could adversely affect search and rescue
("SAR") contract terms or otherwise delay service or the receipt of
payments under such contracts; the effectiveness of our
environmental, social and governance initiatives; the impact of
supply chain disruptions and inflation and our ability to recoup
rising costs in the rates we charge to our customers; our reliance
on a limited number of helicopter manufacturers and suppliers and
the impact of a shortfall in availability of aircraft components
and parts required for maintenance and repairs of our helicopters,
including significant delays in the delivery of parts for our S92
fleet.
If one or more of the foregoing risks materialize, or if
underlying assumptions prove incorrect, actual results may vary
materially from those expected. 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 year ended
December 31, 2023 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 per share amounts)
|
|
|
Three Months
Ended
|
|
Favorable/
(Unfavorable)
|
|
December 31,
2023
|
|
September 30,
2023
|
|
Revenues:
|
|
|
|
|
|
Operating
revenues
|
$
329,593
|
|
$
330,252
|
|
$
(659)
|
Reimbursable
revenues
|
8,341
|
|
7,838
|
|
503
|
Total
revenues
|
337,934
|
|
338,090
|
|
(156)
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
Operating
expenses
|
249,528
|
|
240,682
|
|
(8,846)
|
Reimbursable
expenses
|
8,303
|
|
7,836
|
|
(467)
|
General and
administrative expenses
|
44,143
|
|
46,256
|
|
2,113
|
Merger and integration
costs
|
347
|
|
738
|
|
391
|
Depreciation and
amortization expense
|
17,007
|
|
17,862
|
|
855
|
Total costs and
expenses
|
319,328
|
|
313,374
|
|
(5,954)
|
|
|
|
|
|
|
Gains (losses) on
disposal of assets
|
(159)
|
|
1,179
|
|
(1,338)
|
Earnings from
unconsolidated affiliates
|
1,127
|
|
3,722
|
|
(2,595)
|
Operating
income
|
19,574
|
|
29,617
|
|
(10,043)
|
|
|
|
|
|
|
Interest
income
|
3,458
|
|
2,532
|
|
926
|
Interest expense,
net
|
(11,274)
|
|
(10,008)
|
|
(1,266)
|
Reorganization items,
net
|
—
|
|
(3)
|
|
3
|
Other, net
|
1,737
|
|
4,844
|
|
(3,107)
|
Total other income
(expense), net
|
(6,079)
|
|
(2,635)
|
|
(3,444)
|
Income before
income taxes
|
13,495
|
|
26,982
|
|
(13,487)
|
Income tax
expense
|
(21,598)
|
|
(22,637)
|
|
1,039
|
Net income
(loss)
|
(8,103)
|
|
4,345
|
|
(12,448)
|
Net loss (income)
attributable to noncontrolling interests
|
165
|
|
(28)
|
|
193
|
Net income (loss)
attributable to Bristow Group Inc.
|
$
(7,938)
|
|
$
4,317
|
|
$
(12,255)
|
|
|
|
|
|
|
Basic earnings (losses)
per common share
|
$
(0.28)
|
|
$
0.15
|
|
|
Diluted earnings
(losses) per common share
|
$
(0.28)
|
|
$
0.15
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding, basic
|
28,289
|
|
28,217
|
|
|
Weighted average common
shares outstanding, diluted
|
28,289
|
|
28,959
|
|
|
|
|
|
|
|
|
EBITDA
|
$
41,776
|
|
$
54,852
|
|
$
(13,076)
|
Adjusted
EBITDA
|
$
47,725
|
|
$
62,310
|
|
$
(14,585)
|
Adjusted EBITDA
excluding asset dispositions and foreign exchange
|
$
46,002
|
|
$
56,590
|
|
$
(10,588)
|
|
|
|
BRISTOW GROUP
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in
thousands, except per share amounts)
|
|
|
Year
Ended
December
31,
|
|
Favorable
(Unfavorable)
|
|
2023
|
|
2022
|
|
Revenues:
|
|
|
|
|
|
Operating
revenues
|
$
1,264,298
|
|
$
1,173,462
|
|
$
90,836
|
Reimbursable
revenues
|
33,131
|
|
36,506
|
|
(3,375)
|
Total
revenues
|
1,297,429
|
|
1,209,968
|
|
87,461
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
Operating
expenses
|
957,593
|
|
908,402
|
|
(49,191)
|
Reimbursable
expenses
|
32,810
|
|
35,873
|
|
3,063
|
General and
administrative expenses
|
181,745
|
|
164,685
|
|
(17,060)
|
Merger and integration
costs
|
2,201
|
|
1,818
|
|
(383)
|
Restructuring
costs
|
—
|
|
2,113
|
|
2,113
|
Depreciation and
amortization expense
|
70,606
|
|
66,506
|
|
(4,100)
|
Total costs and
expenses
|
1,244,955
|
|
1,179,397
|
|
(65,558)
|
|
|
|
|
|
|
Loss on
impairment
|
—
|
|
(5,187)
|
|
5,187
|
Gains (losses) on
disposal of assets
|
1,112
|
|
(521)
|
|
1,633
|
Earnings from
unconsolidated affiliates
|
7,165
|
|
1,136
|
|
6,029
|
Operating
income
|
60,751
|
|
25,999
|
|
34,752
|
|
|
|
|
|
|
Interest
income
|
8,646
|
|
1,668
|
|
6,978
|
Interest expense,
net
|
(41,417)
|
|
(40,948)
|
|
(469)
|
Reorganization items,
net
|
(86)
|
|
(142)
|
|
56
|
Other, net
|
(9,882)
|
|
33,386
|
|
(43,268)
|
Total other income
(expense), net
|
(42,739)
|
|
(6,036)
|
|
(36,703)
|
Income before income
taxes
|
18,012
|
|
19,963
|
|
(1,951)
|
Income tax
expense
|
(24,932)
|
|
(10,754)
|
|
(14,178)
|
Net income
(loss)
|
(6,920)
|
|
9,209
|
|
(16,129)
|
Net loss attributable
to noncontrolling interests
|
140
|
|
6
|
|
134
|
Net income (loss)
attributable to Bristow Group Inc.
|
$
(6,780)
|
|
$
9,215
|
|
$
(15,995)
|
|
|
|
|
|
|
Basic earnings (losses)
per common share
|
$
(0.24)
|
|
$
0.33
|
|
|
Diluted earnings
(losses) per common share
|
$
(0.24)
|
|
$
0.32
|
|
|
|
|
|
|
|
|
Weighted average common
stock outstanding, basic
|
28,139
|
|
28,104
|
|
|
Weighted average common
stock outstanding, diluted
|
28,139
|
|
28,406
|
|
|
|
|
|
|
|
|
EBITDA
|
$
130,035
|
|
$
127,417
|
|
$
2,618
|
Adjusted
EBITDA
|
$
160,915
|
|
$
157,721
|
|
$
3,194
|
Adjusted EBITDA
excluding asset dispositions and foreign exchange
|
$
170,504
|
|
$
137,352
|
|
$
33,152
|
BRISTOW GROUP
INC.
REVENUES BY LINE OF
SERVICE
(unaudited, in
thousands)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December 31,
2023
|
|
September 30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2023
|
|
December 31,
2022
|
Offshore energy
services:
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
$
99,066
|
|
$
94,346
|
|
$
87,331
|
|
$
85,291
|
|
$
366,034
|
|
$
354,475
|
Americas
|
89,200
|
|
91,099
|
|
80,884
|
|
70,982
|
|
332,165
|
|
346,093
|
Africa
|
31,695
|
|
27,545
|
|
26,979
|
|
25,356
|
|
111,575
|
|
79,513
|
Total offshore
energy services
|
$
219,961
|
|
$
212,990
|
|
$
195,194
|
|
$
181,629
|
|
$
809,774
|
|
$
780,081
|
Government
services
|
81,714
|
|
85,549
|
|
87,320
|
|
82,334
|
|
336,917
|
|
283,267
|
Fixed wing
services
|
25,697
|
|
29,168
|
|
26,448
|
|
25,919
|
|
107,232
|
|
96,758
|
Other
|
2,221
|
|
2,545
|
|
2,560
|
|
3,049
|
|
10,375
|
|
13,356
|
|
$
329,593
|
|
$
330,252
|
|
$
311,522
|
|
$
292,931
|
|
$
1,264,298
|
|
$
1,173,462
|
|
|
|
FLIGHT HOURS BY LINE
OF SERVICE
(unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December 31,
2023
|
|
September 30,
2023
|
|
June 30,
2023
|
|
March 31,
2023
|
|
December 31,
2023
|
|
December 31,
2022
|
Offshore energy
services:
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
10,412
|
|
10,783
|
|
10,532
|
|
10,298
|
|
42,025
|
|
42,559
|
Americas
|
10,105
|
|
9,767
|
|
8,676
|
|
8,129
|
|
36,677
|
|
40,115
|
Africa
|
3,938
|
|
3,572
|
|
3,241
|
|
2,905
|
|
13,656
|
|
10,663
|
Total offshore
energy services
|
24,455
|
|
24,122
|
|
22,449
|
|
21,332
|
|
92,358
|
|
93,337
|
Government
services
|
4,477
|
|
5,232
|
|
5,008
|
|
3,944
|
|
18,661
|
|
17,194
|
Fixed wing
services
|
2,889
|
|
2,956
|
|
2,691
|
|
2,533
|
|
11,069
|
|
12,172
|
|
31,821
|
|
32,310
|
|
30,148
|
|
27,809
|
|
122,088
|
|
122,703
|
BRISTOW GROUP
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(unaudited, in
thousands)
|
|
|
|
|
|
December 31,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
183,662
|
|
$
163,683
|
Accounts receivable,
net
|
234,620
|
|
215,131
|
Inventories
|
99,863
|
|
81,886
|
Prepaid expenses and
other current assets
|
45,438
|
|
32,425
|
Total current
assets
|
563,583
|
|
493,125
|
Property and equipment,
net
|
927,766
|
|
915,251
|
Investment in
unconsolidated affiliates
|
19,890
|
|
17,000
|
Right-of-use
assets
|
287,939
|
|
240,977
|
Other assets
|
138,100
|
|
145,648
|
Total
assets
|
$
1,937,278
|
|
$
1,812,001
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
87,885
|
|
$
89,610
|
Accrued
liabilities
|
208,657
|
|
184,324
|
Short-term borrowings
and current maturities of long-term debt
|
13,247
|
|
11,656
|
Total current
liabilities
|
309,789
|
|
285,590
|
Long-term debt, less
current maturities
|
534,823
|
|
499,765
|
Deferred
taxes
|
42,710
|
|
48,633
|
Long-term operating
lease liabilities
|
214,957
|
|
165,955
|
Deferred credits and
other liabilities
|
11,820
|
|
25,119
|
Total
liabilities
|
1,114,099
|
|
1,025,062
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
311
|
|
306
|
Additional paid-in
capital
|
725,773
|
|
709,319
|
Retained
earnings
|
217,968
|
|
224,748
|
Treasury stock, at
cost
|
(65,722)
|
|
(63,009)
|
Accumulated other
comprehensive loss
|
(54,643)
|
|
(84,057)
|
Total Bristow Group
Inc. stockholders' equity
|
823,687
|
|
787,307
|
Noncontrolling
interests
|
(508)
|
|
(368)
|
Total stockholders'
equity
|
823,179
|
|
786,939
|
Total liabilities
stockholders' equity
|
$
1,937,278
|
|
$
1,812,001
|
Non-GAAP Financial Measures
The Company's management uses EBITDA and Adjusted EBITDA to
assess the performance and operating results of its business. Each
of these measures, as well as Free Cash Flow and Adjusted Free Cash
Flow, each as detailed below, have limitations, and are provided in
addition to, and not as an alternative for, and should be read in
conjunction with, the information contained in the Company's
financial statements prepared in accordance with generally accepted
accounting principles in the U.S. ("GAAP") (including the notes),
included in the Company's filings with the SEC and posted on the
Company's website. 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. Management
believes that the use of EBITDA and Adjusted EBITDA is meaningful
to investors because it provides information with respect to the
Company's ability to meet its future debt service, capital
expenditures and working capital requirements and the financial
performance of the Company's assets without regard to financing
methods, capital structure or historical cost basis. Neither EBITDA
nor Adjusted EBITDA is a recognized term under 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 Company is unable to provide a reconciliation of forecasted
Adjusted EBITDA for 2023 and 2024 included in this release to
projected net income (GAAP) for the same periods because components
of the calculation are inherently unpredictable. The inability to
forecast certain components of the calculation would significantly
affect the accuracy of the reconciliation. Additionally, the
Company does not provide guidance on the items used to reconcile
projected Adjusted EBITDA due to the uncertainty regarding timing
and estimates of such items. Therefore, the Company does not
present a reconciliation of forecasted Adjusted EBITDA to net
income (GAAP) for 2023 or 2024.
The following tables provide a reconciliation of net income
(loss), the most directly comparable GAAP measure, to EBITDA and
Adjusted EBITDA (in thousands, unaudited).
|
Three Months
Ended
|
|
Year
Ended
|
|
December 31,
2023
|
|
September 30,
2023
|
|
June
30,
2023
|
|
March
31,
2023
|
|
December 31,
2023
|
|
December 31,
2022
|
Net income
(loss)
|
$
(8,103)
|
|
$
4,345
|
|
$
(1,637)
|
|
$
(1,525)
|
|
$
(6,920)
|
|
$
9,209
|
Depreciation and
amortization expense
|
17,007
|
|
17,862
|
|
18,292
|
|
17,445
|
|
70,606
|
|
66,506
|
Interest expense,
net
|
11,274
|
|
10,008
|
|
9,871
|
|
10,264
|
|
41,417
|
|
40,948
|
Income tax expense
(benefit)
|
21,598
|
|
22,637
|
|
(14,209)
|
|
(5,094)
|
|
24,932
|
|
10,754
|
EBITDA
|
$
41,776
|
|
$
54,852
|
|
$
12,317
|
|
$
21,090
|
|
$
130,035
|
|
$
127,417
|
Special items
(1)
|
5,949
|
|
7,458
|
|
10,487
|
|
6,986
|
|
30,880
|
|
30,304
|
Adjusted
EBITDA
|
$
47,725
|
|
$
62,310
|
|
$
22,804
|
|
$
28,076
|
|
$
160,915
|
|
$
157,721
|
(Gains) losses on
disposal of assets
|
159
|
|
(1,179)
|
|
3,164
|
|
(3,256)
|
|
(1,112)
|
|
521
|
Foreign exchange
(gains) losses
|
(1,882)
|
|
(4,541)
|
|
13,021
|
|
4,103
|
|
10,701
|
|
(20,890)
|
Adjusted EBITDA
excluding asset dispositions and foreign exchange
|
$
46,002
|
|
$
56,590
|
|
$
38,989
|
|
$
28,923
|
|
$
170,504
|
|
$
137,352
|
|
|
|
|
|
|
(1)
Special items include the following:
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December 31,
2023
|
|
September 30,
2023
|
|
June
30,
2023
|
|
March
31,
2023
|
|
December 31,
2023
|
|
December 31,
2022
|
PBH
amortization
|
$
3,729
|
|
$
3,751
|
|
$
3,697
|
|
$
3,803
|
|
$
14,980
|
|
$
13,291
|
Merger and integration
costs
|
347
|
|
738
|
|
677
|
|
439
|
|
2,201
|
|
1,818
|
Reorganization items,
net
|
—
|
|
3
|
|
39
|
|
44
|
|
86
|
|
142
|
Restructuring
costs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,113
|
Loss on
impairment
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5,187
|
Non-cash insurance
adjustment
|
—
|
|
—
|
|
3,977
|
|
—
|
|
3,977
|
|
—
|
Other special
items(2)
|
1,873
|
|
2,966
|
|
2,097
|
|
2,700
|
|
9,636
|
|
7,753
|
|
$
5,949
|
|
$
7,458
|
|
$
10,487
|
|
$
6,986
|
|
$
30,880
|
|
$
30,304
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Other special items
include professional services fees that are not related to
continuing business operations and other nonrecurring
costs.
|
Reconciliation of Free Cash Flow and Adjusted Free Cash
Flow
Free Cash Flow represents the Company's net cash provided by
operating activities less maintenance capital expenditures. In
prior periods, the Company's Free Cash Flow was calculated as net
cash provided by (used in) operating activities plus proceeds from
disposition of property and equipment less purchases of property
and equipment. Management believes that the change in the Company's
free cash flow calculation, as presented herein, better represents
the Company's cash flow available for discretionary purposes,
including growth capital expenditures. Adjusted Free Cash Flow is
Free Cash Flow adjusted to exclude costs paid in relation to a PBH
maintenance agreement buy-in, reorganization items, costs
associated with recent mergers, acquisitions and ongoing
integration efforts, as well as other special items which include
nonrecurring professional services fees and other nonrecurring
costs or costs that are not related to continuing business
operations. Management believes that Free Cash Flow and Adjusted
Free Cash Flow are meaningful to investors because they provide
information with respect to the Company's ability to generate cash
from the business. The GAAP measure most directly comparable to
Free Cash Flow and Adjusted Free Cash Flow is net cash provided by
operating activities. Since neither Free Cash Flow nor Adjusted
Free Cash Flow is a recognized term under GAAP, they should not be
used as an indicator of, or an alternative to, net cash provided by
operating activities. 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 Free Cash Flow and Adjusted
Free Cash Flow may differ from the methods used by other companies
to calculate their free cash flow. As such, they may not be
comparable to other similarly titled measures used by other
companies.
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, unaudited).
|
Three Months
Ended
|
|
|
|
December 31,
2023
|
|
September
30,
2023
|
|
June 30,
2023
|
|
March
31,
2023
|
|
LTM
|
Net cash provided by
(used in) operating activities
|
$
(9,499)
|
|
$
16,711
|
|
$
18,210
|
|
$
6,615
|
|
$
32,037
|
Less: Maintenance
capital expenditures
|
(4,277)
|
|
(4,656)
|
|
(2,533)
|
|
(2,952)
|
|
(14,418)
|
Free Cash
Flow
|
$
(13,776)
|
|
$
12,055
|
|
$
15,677
|
|
$
3,663
|
|
$
17,619
|
Plus: Merger and
integration costs
|
347
|
|
712
|
|
488
|
|
571
|
|
2,118
|
Plus: Reorganization
items, net
|
—
|
|
25
|
|
58
|
|
20
|
|
103
|
Plus: Other special
items(1)
|
3,195
|
|
1,580
|
|
1,650
|
|
1,509
|
|
7,934
|
Adjusted Free Cash
Flow
|
$
(10,234)
|
|
$
14,372
|
|
$
17,873
|
|
$
5,763
|
|
$
27,774
|
|
|
|
|
|
|
|
|
(1)
|
Other special items
include professional services fees that are not related to
continuing business operations and other nonrecurring
costs
|
BRISTOW GROUP
INC.
FLEET
COUNT
(unaudited)
|
|
|
|
Number of
Aircraft
|
|
|
|
|
Type
|
|
Owned
Aircraft
|
|
Leased
Aircraft
|
|
Total
Aircraft
|
|
Max
Pass
Capacity
|
|
Average
Age
(years)(1)
|
Heavy
Helicopters:
|
|
|
|
|
|
|
|
|
|
|
S92
|
|
38
|
|
30
|
|
68
|
|
19
|
|
14
|
AW189
|
|
17
|
|
4
|
|
21
|
|
16
|
|
8
|
S61
|
|
2
|
|
1
|
|
3
|
|
19
|
|
52
|
|
|
57
|
|
35
|
|
92
|
|
|
|
|
Medium
Helicopters:
|
|
|
|
|
|
|
|
|
|
|
AW139
|
|
49
|
|
4
|
|
53
|
|
12
|
|
13
|
S76 D/C++
|
|
15
|
|
—
|
|
15
|
|
12
|
|
12
|
AS365
|
|
1
|
|
—
|
|
1
|
|
12
|
|
34
|
|
|
65
|
|
4
|
|
69
|
|
|
|
|
Light—Twin Engine
Helicopters:
|
|
|
|
|
|
|
|
|
|
|
AW109
|
|
4
|
|
—
|
|
4
|
|
7
|
|
17
|
EC135
|
|
9
|
|
1
|
|
10
|
|
6
|
|
14
|
|
|
13
|
|
1
|
|
14
|
|
|
|
|
Light—Single Engine
Helicopters:
|
|
|
|
|
|
|
|
|
|
|
AS350
|
|
15
|
|
—
|
|
15
|
|
4
|
|
25
|
AW119
|
|
13
|
|
—
|
|
13
|
|
7
|
|
17
|
|
|
28
|
|
—
|
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Helicopters
|
|
163
|
|
40
|
|
203
|
|
|
|
15
|
Fixed Wing
|
|
8
|
|
5
|
|
13
|
|
|
|
|
Unmanned Aerial Systems
("UAS")
|
|
4
|
|
—
|
|
4
|
|
|
|
|
Total
Fleet
|
|
175
|
|
45
|
|
220
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Reflects the average
age of helicopters that are owned by the Company.
|
The chart below presents the number of aircraft in our fleet and
their distribution among the regions in which we operate as of
December 31, 2023 and the percentage of operating revenue that
each of our regions provided during the Current Year
(unaudited).
|
|
Percentage
of
Operating
Revenues
|
|
|
|
|
|
|
|
|
Helicopters
|
|
Fixed
Wing
|
|
UAS
|
|
|
|
|
Heavy
|
|
Medium
|
|
Light
Twin
|
|
Light
Single
|
|
Total
|
Europe
|
|
55 %
|
|
64
|
|
7
|
|
—
|
|
3
|
|
—
|
|
4
|
|
78
|
Americas
|
|
29 %
|
|
24
|
|
50
|
|
11
|
|
25
|
|
—
|
|
—
|
|
110
|
Africa
|
|
10 %
|
|
4
|
|
10
|
|
3
|
|
—
|
|
2
|
|
—
|
|
19
|
Asia Pacific
|
|
6 %
|
|
—
|
|
2
|
|
—
|
|
—
|
|
11
|
|
—
|
|
13
|
Total
|
|
100 %
|
|
92
|
|
69
|
|
14
|
|
28
|
|
13
|
|
4
|
|
220
|
View original
content:https://www.prnewswire.com/news-releases/bristow-group-reports-fourth-quarter-and-full-year-2023-results-302080613.html
SOURCE Bristow Group