Bristow (VTOL) 6 Nov 242024 Q3 Earnings call transcript

Good day, everyone, and welcome to Bristow Group Reports Third Quarter 2024 Earnings 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, Ravi. Good morning, everyone, and welcome to Bristow Group's Third Quarter of 2024 Earnings Call. call Bradshaw; our and and Officer, Whalen. the Executive and Chief on Jennifer Chris Officer, Senior joined today President with Chief Financial I'm Vice President

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

presentation on our You may access the investor website.

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

for slow quarter. the an call which thank on everyone, joining resulted the want members to focus very Thank the news in the I for good you, otherwise third Bristow team world safety, in all around and on day. continued Red, their thanks, performance

#X pleased As are priority. XXXX to Jennifer? visibility QX million strong million. we always, supply results, full CFO offshore of tight safety remains guidance over adjusted a QX financial for margins, demand the with to core value conjunction EBITDA coupled $XXX for with trends, In improvements review helicopters Positive for support year a our raise company's detailed Bristow's results. operational to to highest in cash and our of and now $XXX capital it Bristow's will hand good flow significant more free company's the returns. I

higher Services revenues Offshore noted and Norway, U.K. related previously last utilization preceding from and a exchange $XX.X onetime increase repairs XXXX were nonrecurring $X.X by quarter personnel utilization quarter earnings in treatment EBITDA and and contracts. related quarter revenues financial personnel the impacts million, The million foreign due benefit and service were in The related equalization the professional have seasonal wing operating for and due rate to which expenses largely and quarter, a recognized operating accounting otherwise benefit higher items, lower quarter operating the I was costs, the would current in offset in comparison favorable of in Operating preceding and quarter. been Thank the higher special seasonal the of General $X costs quarter $XX.X Americas primarily change in increased million in impact preceding the of KUR.  Operating and $XX.X Bristow's personnel foreign million primarily current in with services, fees. of increased million dispositions lower, expenses. exchange to fixed in to exclude items, adjustment finalization the reserve new in headcount onetime our to of Today, sequential quarter. and the costs for to personnel lease you, Chris. asset a Suriname an were call.  Excluding maintenance in $X during to noted other million adjusted of to absence in support compared partially results. administrative to a the labor agreement will operating begin adjustments the tax the variations cost third in insurance due in Energy for lower Government Services were higher to current absence expenses related received of

results of our we the EBITDA line business. demonstrate our and exclude income losses, review primarily our previous XXXX other and and a continuing supply chain impact us, which forecast currency adjusted As of third item of noted earnings in challenges is signs foreign from noncash comprised calls, calculation.  Though of continue gains quarter's strengthening expense to

that the its and million increase better maintain strong our in though activity and through Higher reduce business.  Turning rest the expected into continue $XXX has As and XXXX. of of now U.K. OES flows. guidance the adjusted the fixed performed expected activity primary Americas drivers transport positive our and This is utilization EBITDA cash expected Africa. course and hoc XXXX charter in ad outlook to and passenger million. this of rates to our our wing in to is we year performance have remainder to support to and than guidance over in region a raised include XXXX The such, business, increased $XXX yields higher increased our to year in short-term scheduled this in

capital a the XX% $XX million $XX preceding positive increase. to compared million were quarter on in in the flows cash current operating illustrating working Our quarter,

Coast We is quarters. of our investment for Guard in funded contracts. to capital the U.K. X capital XX% have Irish and remaining The expected needed next largely the now conclude investments

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

cash call was the turn our of this million, liquidity flows. and to further that As continue I'll will model available back Chris XX, for remarks. strong time, Chris? $XXX September our believe At generate business to we

you. Thank

a return and the for net performing company's making Jennifer super X attractive and generate additions or noted, current we Energy indicated over XXX%.  As financial like company's cash Bristow is our capital positive, organic helicopter government believe X to leading midst with result and ones diversify years. allocation attractive let's to of well open models to and new next that beyond. near business disciplined with limited a the years shareholders. helicopter Robbie? business As grow effective Bristow's our accelerate long-term investments coupled medium over In The that, of guidance growth will by capital the and today, long last is heavy sheet, Offshore XXXX the latter for utilization industry expect supply cycle. the we in prioritize the The the services up the line the relevant expect approach remain next With yields at in new the and we dynamic we fundamentals cash company to This are continue in the multiyear builds. flow well our of a we that the protection middle into investments for the is flows half are has to the increased tight most Services, metrics, of lead times positive focused and allow will facilitate for questions. and balance strong of driving for the guidance decade.

[Operator Evercore. Instructions] The from from first Chris Lee question is

behind know you utilization decrease I curious guess just my within recent the if in was the the of Americas first question elaborate kind is, I could factors on to region.

to region into of through raise specifically expect Americas and the for into assumptions the in XXXX you adjusted guidance, XXXX? your your and as trend year can the underlying remainder provide how the you insight utilization you Additionally, EBITDA discuss

Chris, us. glad you could join

and there utilization noted in in first I prepared As Americas my is the in change remarks, the the QX. utilization in really drivers for Really, primary accounting Kouger. X lower for are

of accounting, last from If accrual a cash benefit basis had quarter, didn't accounting basis to that we changed in a which quarter that you recall, recur.

Now And also, that project also completed forward. that quarter be is Suriname fairly should lower that last over there stable contributed going the in utilization. the a to

expectations. we business Americas performance has in consistent In remain year our us on that for potential and our utilization growth positive been this business. internal of with The terms of outlook,

promising are in As more area be Jennifer demand Suriname, helicopters is fast into than young we expected to region, plans, which signals the in certainly such we transitioning years. U.S. world. along with in rigs as throughout coming of well installed region which the signals or faster expect there mentioned, Brazil Trinidad any as of here mode additional the positive from with drilling Also, And exploration have for exploration to markets our had production in forward.  So positive an offshore as area market and a in and basin, going in next development Brazil expected a is that the that basin look grow customers. be mature as to the of an over the that good we Gulf the are number that we'll the few demand the other extremely Mexico, world FPSOs that's demand number even region, of the but's and are

about remain business rest very and the our utilization we for this of outlook and optimistic beyond. So year, XXXX the Americas

color. the appreciate Really

touched The this it as other well. Jennifer. quarter, question think that play my at you operating factors I the follow-up there's key is, of million expenses, $XX on like seems increase know I

of was I kind if expense increase guidance about So components these kind move of this wondering and on of break provide the remaining costs we down forward. you should the could think as we how

Sure.

$XX Also, are maintenance repairs hours So about, is will million and and of X Repairs other which flying. we power variation outside the agreement. other fluctuate expense. of which expenses, as hour drivers aircraft maintenance in million some flight every about of Not the and of the relates the hour. aircraft $XX operating part flight don't our is increase for and by is of flight personnel to is it of which are the under equal with costs, talked fall created that the a timing repairs our hour type there

So that doing repairs. can cycles from when vary we're major from

really side, is new to contracts. On related that expense the other

and business, particularly. We have new rescue for starting contracts our search

other we as contracts, that So new put will on costs also increase.

Company. The Joshua question from Instructions] the Benchmark next Sullivan is [Operator from

here? of that Congratulations on the on are quarter, current and momentum Anything infer this thoughts in plays especially the day. on what to 'XX slow raise on out, the face just here, the outlook 'XX as the given quarter quarter news last maintaining the the But 'XX?

for Thank you question. the Sure.

increase As Coast SARXG then are the on that of we perform the that in significant where be XXXX we business. things and while last into where to operationalized. did a the the quarter, more a Guard will XXXX, were some transition 'XX. U.K. the offshore reminder, seeing year contracts increase that we adjusted fully see are Irish guidance contracts. side And was and 'XX EBITDA the energy you continuing will to reflect operationalizing year still of those really the as in really

execute million capacity Got Is have something government there X here. you then quarters? go And like new that your on $XXX to on Is to that? CapEx in do to feasible contract it.

and Coast contracts answer I these Guard, yes. are These and deliveries start. I are which the contracts primarily deliveries, mentioned, to aircraft is mean beginning it's really for Irish the SARXG U.K. short aircraft X

take those get So delivery get we'll of those ready and and flying.

settlement one in the that on the What Any there? entail? just then implications labor did U.K. long-term And

QX, announce the and we some finalize that crews in pleased In back We've with workforce, new the were with to air United bargaining tech collective and U.K. agreement going in extended agreement, the a time. been in new Kingdom crews negotiations pilots our

we some did of agreement, part prior years up. catch to periods, prior back to that pay, so As recognize finalizing some related including pay

pleased was see forward, moving to But have with and we is the onetime. you and that that think a both back as agreement works there of our So that out have the QX agreement amount employee now why larger call for multiyear results. well we base an in impact our company. we That's pay that portion noted workforce a as

How S-XX And then Lockheed in coming? cycle. with changes increase other made of parts you the Any gearbox some chain in helped that capacity? supply has that in the future on see availability the life

The we're and see facilitate extension helpful, pleased the of It you coming some noted development. of service will S-XXs the is to over return Yes. to that that quarters. our

again, So pleased about that.

coin, is of the there On and/or idle causing seeing for which to on delays which delivery still the repairs, ground. remain other airframes unfortunately, number the a significant components still of we're S-XX in other both are side

So on components as hopefully, made continued well. progress those can be

you do last of as you increase your And for mean, on reduced you to is that then one near any customers believe far just short-term? just increased do availability regulation or I in going activity the know of election any as think or one implications.

elected we company From an to our sentiments to generated my or U.S., First like XX% U.S.-based our business. would congratulatory XX% we revenues our with we who while in policy revenues I developments of everyone that have of standpoint, might that of earn do on tangible in from public monitor yesterday. remind other will the impact a a share are are all actively with office changes I'd all, other business those any countries.

a also So multinational that we rates, foreign considerations a with multinational supply include chain. complicated are company exchange

in problems, time the our returning the changes share about the do been we're the the supply impact news an we regime challenge. U.S., MGB supply spoke that's the we question in tariff some of chain So are at your that beginning parts we have S-XX for are in been to that and to monitor.  Specifically here also for Gulf to chain Related might the the the the idle U.S. pleased question, service that the in about of have S-XX, of the will unserviceable year. here to or we biggest which process any that waiting prior trade developments Mexico,

our from for for will yesterday, for U.S. a that XXXX outlook perspective, business. company business a had again, well. the very a have in for we performing So global Bristow's positive today. We positive is But very business outlook the Bristow's benefit business a positive be and

[Operator next is from Argus. The Silver Instructions] question from Steve

team the the guidance. increased to on Congratulations

and With funded that how the going or shape, on and liquidity to you XX% expected the near-term funding have take that next to was I couple come impact additional the balance color at being is some quarters. from new star might leverage? this contract most what it's flow company's debt free to hoping the investments whether cash from could on point and of be funded over expected provide of

good Steve, you. from to Sure. hear

this we to favorable Irish that fund operations. upsized the And based Coast then midyear, the that help on that Guard UKSAR very Irish Coast that's And fund our we So UKSARXG rates this able part And have Guard we our announced again, very really, had that we contract. to at to contract. for were facility the help the facility was for contract of contract. announced new achieve we that early going year

CapEx fund So to rest been continue it. have primarily that, this of we will how the how that how will we fund we funding be and

couple in out will anymore will expect the to then of the CapEx over So next the increase have significant we level won't and we and some it then -- that be leverage financings place. the quarters, to

on a follow-up. Great. And related guess, I more, one

look investment further this you out way on Is behind implemented. there that becoming their any these almost thinking allocation the start your strategy as down update and is to fully fact road? in the a are capital phase contracts Given the to little about you

think Thank although a our material changes is you for our I strategy, think reemphasize capital framework. to the do capital it how opportunity question, allocation about allocation Steve. to good No we

to number we finish in net one, funding of you to Jennifer we're projects. XXXX So generate flows going these positive beyond, as a once half large and be position latter and referenced on cash in just the the government commented of

third, to we We prioritize which which to we're flexibility want balance protection have make is to to of of financial organic evaluating markets, So continue any in that our the shareholders, going be strong want return balance we're and a potential might strong a like company We exposure believe repurchases the growth are position the market conditions.  Number the the we've have a be lot can to to dividend of will do still the opportunistic to share enough fund that opportunities do sure and ones And that, that strategy. include and withstand sheet, oil we make guidance sheet. that driving doing all sure and/or the we capital then significant to volatile. a that gas have to we increases provided. whether all while that in two,

next in into a these of funding which crystallize that approach. further capital contracts, of time, QX be should position concluded big government that again, largely get we'll and we as at expect be to year, allocation in the XXXX, We complete that

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

hope Thank everyone going well. you, in I Bristow. today. meantime, especially call, and again, else Take appreciate stays joining on We everyone, In care. Ravi, the thanks with for the your safe interest and everything

This concludes today's call.

time. any at disconnect now may You