Bristow (VTOL) 6 Mar 242023 Q4 Earnings call transcript

Good day, everyone, and welcome to Bristow Group Reports Fourth Quarter and Full Year 2023 Earnings Conference Call. Today's call is being recorded. [Operator Instructions].At this time, I would like to turn the call over to Red Tilahun, Senior Manager of Investor Relations and Financial Reporting.

Thank you, Daniel. Good morning, everyone, and welcome to Bristow Group's Fourth Quarter and Full Year 2023 Earnings Conference Call. the Chris with President Bradshaw Financial Jennifer on Chief President and joined Officer, Officer Executive and Whalen. am call our today and Chief I Senior Vice

remind to call, detail this may on in our and make are of this like uncertainties course that management I'd investor statements Slide to begin, during the X we opportunity Before presentation. more to subject everyone forward-looking that that of described take risks are

presentation on our You may access our investor website.

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

around On Rescue miles XX, Bergen, Search an crew February behalf with X accident Bristow's of exercise of lost the difficult carry was the helicopters, our nautical all life west whose training on SAR I condolences LN-OIJ and approximately accident.This and Red. with a board involved will and members one loss dear always. time, us colleague deeply XX giving friends to of Thank was we our family is sad in and On registration you, Norway. heartfelt the this Bristow a of members tragic at team extend world,

at either We are conditions relieved released hospital. in been core now hospital to other the remain have the share stable the that members or in X

and assistance provide members with Bristow updates cooperating priority, we provide highest is Our take any accident appropriate. our future investigating their care we needed. will the as authorities to and of them with crew family fully

and many outcomes XXXX, last successful for Bristow on team the I commend Looking want year. to thank back delivering

diversify of Energy recent Offshore In contracts believe be second EUR building strategic goal of the to our and upon contract, award will the inflection business million Services addition Services XXXX the progress and continue a half Falkland positive with cycle. in government marks of XXX the we our Irish We Guard Kingdom, Netherlands, the growth Caribbean, successful Dutch what leading Coast United grow to Government our the business, multiyear the Islands. the beginning point key

global the CFO of helicopters key and in of extended for expects Offshore growth review to in primary Bristow regions, significant Jennifer? of a a presence largest be a With over this now it will Energy. offshore our to fleet beneficiary financial results. cycle hand I

XXXX Thank was in quarter of services dispositions, million the in you, revenues quarter for to results. $X.X of Chris. primarily offshore increased Bristow's million compensation were and $XX million in Norway Wing million I the half quarter the exchange were offset lower the contract primarily higher lease in total energy Africa. our XXXX outlook compared financial $X.X the maintenance, higher affiliates Fixed due unconsolidated partially first $X.X compared million, Earnings by adjusted million quarter, Today, second equipment, General to were primarily due Cougar. at comparison for to lower and the for seasonality expenses increases in fuel, analysis and would EBITDA costs. and foreign Bristow's million $XX.X the current to results. to due an repairs were $X.X positive business, lower lower inflection personnel expenses our due new utilization the by administrative in a from asset and in government $XX.X costs. due items, to a mark Operating services special in to begin of lower utilization $XXX.X and point will XXXX fourth for second with sequential to half, exclude of million with of consistent financial half third Operating of and

announce primarily million results to we for growth the foreign second noncash income raised and our EBITDA other the is more line comprised Energy we guidance third from million Norway, outlook or reaffirm to of calls, losses, of higher the million, announcement, projects we've our XX% The the Bristow's $XXX financial than earnings midpoint consecutive of of This with Mexico is earnings adjusted $XXX range XXXX increase million XX% full-year QX just EBITDA to of of the expected to EBITDA full-year guidance Offshore are XXXX, XXXX service. which of previous in EBITDA and our an adjusted for our full-year $XXX pleased would XXXX, new the and original reflected acquisition. year XXXX, and noted XXXX. and quarter XXXX our EBITDA item Based from primarily over the In we with million In for represent currency million. adjusted As Brazil, $XXX end Gulf results than which XXXX to million in $XXX gains midpoint line over excluded $XXX increased of from the driven we by impact those guidance is EBITDA of on high XXXX. in growth. in our started $XXX

In the expiring available contracts, rates and in we to details Further flight we to XX compared Slides have been and campaign. of from presentation. our expect exploration on addition, higher successful are achieving favorable short-term hours benefit more from XX

a Finally, liquidity strong Bristow benefit balance from sheet position. continues to and

liquidity available million. was XX, our December of As $XXX

will we in as to our U.K. award approximately our capital the of XX in Guard. successful Coast noted helicopters contracts this of the calls, be Much presentation of prior investment we fleet. have a related to adding in Irish expected and million with earnings investment is As to new XXXX have $XXX we capital happen

typically rescue nature, returns. are long-term search years in and XX with Our contracts attractive

yield presentation. through it. flexibility access fund we competitive other as contracts, on upside the the facility, these aircraft on potential period, investment and we're financing, cash structure Due Slide have announced the of to sufficient to recently cash to NatWest noted with our cash long-term we So and/or long-term have with we how investment this once of nature hand, financing plan cash-generative leasing. our operating on flows, XX We on

between In addition, XX last and we be purchase to XXXX delivered XXXX. helicopters the week, announced of AWXXX

to of fund we other with end leasing operating are up of there but could financing cash As flows capital or plan purchases uses over them now, if these time.

that before, generate we've model cash As flows. Chris we will I'll business for continue stated At to this believe call Chris? time, strong to back the further turn remarks. this

you. Thank

United new our XXXX noted, the our the XXXX operations of we running year. upcycle. extended Services this large through Energy Jennifer are to In the UKSARXG. first contract our Offshore to quarter through Irish services year in Gap]for Ireland transition long-duration Ireland robust important base transition projects in fourth in for Those well the Kingdom, business, the line, contract commence operations with of we[Audio Coast scheduled In for Guard of business. for mid-XXXX As as both launch in is be and and an end the as expected transition Bristow's timeline are government SARXG from a to

rates as increase, safe, expect added earnings global customer with a high-capacity calls, for a well. bring to a levels for full rescue parts fleet demand an the an AWXXX we XX today. in flexible helicopters XX current constrained. helicopters and transition AWXXX HXXX solution AWXXX as persistent offshore at and agreement S-XX partly number and utilization leading for environmental continue will well operating and return the while long-range, near in improvements quite The configured, current we additional market lead for attractive has and additional in to AWXXX We to framework stakeholders. missions costs new with operational for robust full COX significant for AWXXX as performance the the for offering will these types. super effective crew model limited market to for fleet super supply needs, Amongst models With search superior transport strategic offshore at the reliable let's announced These for open capacity. new media in or performance, cash approximately recently both to allowing orders medium With Both upgrade traditional super plus lower chain the tight in at helicopters operates represents helicopters they XX of to utilization near EBITDA is options meet growth Bristow lower XXX as critical await heavy and are helicopter aircraft medium [indiscernible].As these comparable AWXXX helicopters. to manufacturing these customer delivery questions. XXXX AWXXX. unserviceable demand, offer due driving due including generation as that, There is and with S-XX in than drive ability new being while or demand aircraft times configured opportunities challenges, months, already supply the beyond. flow in Bristow's scheduled which today, Daniel? capitalize and emissions order and capacity and XX flexibility airframes a well utilization fleet on for aircraft meet as discussed balance effective of available recent helicopters, offshore the currently roughly are are globally and fleet models offshore X is at become Bristow levels. heavy, have line expansion In there roughly

[Operator Instructions].

from Benchmark from question first The is The Company. Josh Sullivan

Irish look As that does contract, what Star the transition far as like?

starting be and Guard We up are Coast excited to honored Irish contract. the

period that online come There carries October. mid-XXXX. beginning to transition scheduled is phase through first a this is The

through Coast all operated of next for X start Guard up by Irish So operating the there summer to Bristow. the bases

see Is expect QX around we So should 'XX impact. financial that full right? the to

late benefit QX. be year, Irish But of final impact XXXX rate so the full half QX. of of full startup the indicative of in be quite The half early in would certainly, QX, the second Guard run Coast would Not mid-XXXX, in really contract. next second

Okay. markets for service? S-XX look opportunities? of globally, it you with the MRO tight on just comment How just can parts availability And the does then and

of in which issues. year. available The and But really helicopter S-XX to couple through you the least extended repairs been the the a one the delays windshields, a supply of challenged years, parts across most And of over to referenced, by of the the That different of common supply it's seeing we is chain based calendar models. that's latest S-XX. persistent which be helicopter situation, lot Josh, acute those many that components, very industry is maybe information parts whole end has chain example, delivery at A the expect, will models. continue for for for the the last and we to us as this the are delays as upon still critical challenge, continues date,

which So that continues be has to as industry a impacted a the challenge, whole.

AAM switching maybe over then market. just to the And

We some point? on you And at update us closer of maybe Can are getting products. this these to strategy certification of any then just some your comments?

an furthering X teams thank started that And as supply our you whether started those believe initially X a customers, Air Mobility technology, be, what over additive play we beginning of We solutions, background, and companies new that, industry the Bristow do ago right and will And looking be production. bring of And to what understanding flight again, we eventually the aircraft some really some there'll certification that new more then play have capabilities, diligence logistics the those really time, do some research to the regional new that at through signed of skill now partnerships, developing cargo will number for the of that had we into for to leaders earnest there's We with role partnerships to with the thought be, there. years global of some Bristow leading think mission vertical with the in servicing chain. did new sustainable that developing technologies ones applications, for movements. thought the be could ago, or determine question. what new Happy right and in that start in important we some we Yes. space. about in right the that are to and sets, potential put products. be eventually some think to passenger whether Bristow applications the leader we Advanced could course is innovative about role what for resources them think complementary the a years existing

The the is think future a announced in in the Advanced in in who to we clear for in and of role that Bristow part additive can the which of we again, lift. we a as Air a Mobility company, see or that the there's THC and the important they is position industry play there a THC industry, we to leading see jet they're country, newer So the Arabia, in leader Bristow Kingdom. now this be doing. and That an think partnership, And what Saudi leader in vertical be with is vertical as aviation expertise one. helicopter going think has company which to lift the I recently

we're which of Kingdom So as the we with Arabia. Saudi view [indiscernible] clear to in THC, the work leader

And options far the you that facility, available around the as financing but these just other comments government have have just as the then -- contracts. you might NatWest

Jennifer. It's Josh. Sure,

As that noted banks the do I lot Government with servicing. tend to through my our the the governments flexibility in particularly around look quality of Services have of to the comments, financing, we credit a credit Contracts the we're that

So that pretty favorable gives us financing.

close public. discussing those, additional the announce middle some of once to in some those banks. financing with the So we'll we other we're And

on But incident, touching financial think we about? the Norway lastly, are impacts just the difficult guess I what a then moment. obviously, should And

the material were is that who Thank was important the for the hospital, and X improving for aircraft, the on most biggest impact members of stable out individual. the all ones that in recovering the improving and the the impact that on that The are question again, who those other now life sentiment we of one you, conditions. individuals really the loved the family, either are remains hospital one, and friends, and of crew and board lost on the Also event. Josh, obviously, relieved and and out X the

So with that status. we're pleased

not from financial provide the impact that with the resources their continue a to from Norway tragic whole really support business to Our really families crew, lens, that to priority our they is in need, company support the accident. a accident. our transitioning this to standpoint, But team related material is there to

from Next Argus question Steve from Silver comes Research.

to and week's well. condolences And group families for to the entire accident last my the as

for as chain the SXXs? factors as moving the alternative of a of are expansion by Energy of there the the some But material Offshore forward. serviced provided AWXXX beyond benefits the for Contracts much supply guys typically features aircraft coming You making choice the you pretty helicopters the for the factors it that -- other good see any fleet

again for you wishes thank Steve, well the nuances. and

perform the it heavy by the XXX, and traditionally some number high a the aircraft that so can percentage a at costs. of lower were to On benefits do the offers operating market in efficiently existing efficiency of other technologies relative today. missions It but can performed more really helicopters,

also lower operations So of lower fuel from absolute a helps terms burn, a lower which in the aircraft. COX emission standpoint, of but cost

solution an high point. missions traditional of provides it a So at service a compelling efficient lot heavy to price of percentage the the more very

Great.

metric. a value, a asset about that Your slide over are time periodically presentation on discount suggesting talking company's the that included has net trading at the shares

for Just the broadly speaking, disconnect? could be to might to that speak that you current accounting thinking just your as factors primary

Thank the you, Steve, for question.

year. background on A it's disclosure has this again derived. As our our bit practice, little how did publish long-standing NAV we annual been of

And today. which share roughly to up with asset believe price, our stock. aircraft that for helicopters billion we will of point the third-party number, and the reflected current a that a and book once substantial we value a $XX per entry value, the third-party is appraisal our then obviously in we from net a year, number take what's this NAV the owned net fleet, translates to value the of the all have receive $X.X a for be aircraft discount other in come appraisal. assets billion again $X.X which that's of We compelling aggregate which that So is

Christopher over no in turn now queue. the are remarks. [Operator will back I for closing to further call the Instructions]. Bradshaw There questions

for thanks, call We'll Be next you, and Daniel, joining talk to Thank well. Stay you the again quarter. this everyone, time. safe.