Bristow Group Reports Third Quarter 2024 Results and Raises 2024 Full-Year Outlook

HOUSTON, Nov. 5, 2024 /PRNewswire/ --

Total revenues of $365.1 million in Q3 2024 compared to $359.7 million in Q2 2024

Net income of $28.2 million, or $0.95 per diluted share, in Q3 2024 compared to net income of $28.2 million, or $0.96 per diluted share, in Q2 2024

EBITDA adjusted to exclude special items, asset dispositions and foreign exchange gains (losses) was $60.2 million in Q3 2024 compared to $71.3 million in Q2 2024(1)

Increases 2024 Adjusted EBITDA outlook range to $220 - $230 million

Bristow Group Inc. (NYSE:VTOL) ("Bristow" or the "Company") today reported net income attributable to the Company of $28.2 million, or $0.95 per diluted share, for its quarter ended September 30, 2024 (the "Current Quarter") on operating revenues of $356.4 million compared to net income attributable to the Company of $28.2 million, or $0.96 per diluted share, for the quarter ended June 30, 2024 (the "Preceding Quarter") on operating revenues of $352.5 million.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") was $63.9 million in the Current Quarter compared to $63.7 million in the Preceding Quarter. EBITDA adjusted to exclude special items, losses on asset dispositions and foreign exchange gains (losses) was $60.2 million in the Current Quarter compared to $71.3 million in the Preceding Quarter. The following table provides a reconciliation of net income to EBITDA, Adjusted EBITDA and Adjusted EBITDA excluding losses on asset dispositions and foreign exchange gains (losses) (in thousands, unaudited). See "Non-GAAP Financial Measures" for further information on the use of non-GAAP financial measures used herein.

Three Months Ended,

September 30,2024

June 30,2024

Net income

$             28,279

$              28,191

Depreciation and amortization expense

17,569

16,848

Interest expense, net

9,660

9,385

Income tax expense

8,392

9,245

EBITDA(1)

$             63,900

$              63,669

Special items:

  PBH amortization

3,723

3,725

  Other special items(2)

2,835

2,914

$               6,558

$                6,639

Adjusted EBITDA(1)

$             70,458

$              70,308

Losses on disposal of assets

626

224

Foreign exchange (gains) losses

(10,904)

749

Adjusted EBITDA excluding asset dispositions and foreign exchange

$             60,180

$              71,281

__________________

(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.

"We are pleased to raise Bristow's full-year 2024 Adjusted EBITDA guidance range to $220 - $230 million," said Chris Bradshaw, President and CEO of Bristow Group. "The growth and diversification of the Company's government services business is progressing, as we execute on the transition process for important, long-term contracts with the Irish Coast Guard and UKSAR2G. Bristow's offshore energy services business is benefiting from increased activity, and we continue to believe that we are in the midst of a multi-year growth cycle. These positive industry conditions, coupled with a tight supply dynamic, present an attractive opportunity to optimize the contract portfolio for our aircraft fleet."

Sequential Quarter Results

Operating revenues in the Current Quarter were $3.9 million higher compared to the Preceding Quarter. Operating revenues from offshore energy services were $4.8 million lower primarily due to lower utilization in the Americas and the absence of a one-time benefit in the Preceding Quarter related to the recognition of lease revenues received from Cougar Helicopters Inc. in Canada. Operating revenues from government services were $5.8 million higher in the Current Quarter primarily due to the strengthening of the British Pound Sterling ("GBP") relative to the U.S. dollar, fewer penalties related to availability and higher utilization. Operating revenues from fixed wing services were $3.6 million higher in the Current Quarter primarily due to higher utilization.

Operating expenses were $16.3 million higher than the Preceding Quarter primarily due to higher operating personnel costs, repairs and maintenance, and other operating costs. Operating personnel costs were $13.0 million higher primarily due to the finalization of a labor agreement in the UK of $6.5 million in the Current Quarter, of which $4.6 million was related to prior periods, seasonal personnel cost variations in Norway of $3.8 million in the Preceding Quarter, one-time benefits related to an adjustment for tax equalization in Suriname and insurance reserve adjustments recognized in the Preceding Quarter of $1.6 million, and an increase in headcount in support of new contracts and higher activity of $1.1 million. Excluding the impact of seasonal and non-recurring items, operating personnel costs would have otherwise been $3.0 million higher in the Current Quarter.

General and administrative expenses were $2.0 million lower than the Preceding Quarter primarily due to lower professional services fees.

Other income, net of $10.6 million in the Current Quarter compared to other expense, net of $0.1 million in the Preceding Quarter was primarily due to foreign exchange gains in the Current Quarter.

Income tax expense was $8.4 million in the Current Quarter compared to $9.2 million in the Preceding Quarter primarily due to the earnings mix of the Company's global operations and changes to deferred tax valuation allowances and deferred tax assets.

Liquidity and Capital Allocation

As of September 30, 2024, the Company had $200.3 million of unrestricted cash and $59.6 million of remaining availability under its amended asset-based revolving credit facility (the "ABL Facility") for total liquidity of $259.9 million. Borrowings under the ABL Facility are subject to certain conditions and requirements.

In the Current Quarter, purchases of property and equipment were $57.0 million, of which $8.0 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 $50.4 million, of which $2.2 million were maintenance capital expenditures, and cash proceeds from dispositions of property and equipment were $4.4 million.

Raises 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 section entitled "Non-GAAP Financial Measures" for further information.

As a result of the third quarter earnings and a review of the forecast for the remainder of the year, the Company raised its Adjusted EBITDA guidance range from $210 - $230 million to $220 - $230 million for 2024. The Company's targets for 2025 and 2026 remain unchanged.

Select financial outlook for 2024 and 2025 as well as 2026 targets are as follows (in USD, millions):

2024E

2025E

2026T

Operating revenues:

Offshore energy services

$900 - $930

$910 - $1,020

$965 - $1,155

Government services

$330 - $340

$405 - $445

$430 - $460

Fixed wing services

$120 - $130

$120 - $140

$125 - $150

Other services

$5 - $10

$5 - $10

$5 - $10

Total operating revenues

$1,355 - $1,410

$1,440 - $1,615

$1,525 - $1,775

Adjusted EBITDA, excluding asset dispositions and foreign exchange

$220 - $230

$230 - $260

$275 - $335

Cash interest

~$40

~$45

~$45

Cash taxes

$20 - $25

$20 - $25

$25 - $30

Maintenance capital expenditures

$15 - $20

$15 - $20

$20 - $25

Conference Call

Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Wednesday, November 6, 2024, to review the results for the third quarter ended September 30, 2024. The conference call can be accessed using the following link:

Link to Access Earnings Call: https://www.veracast.com/webcasts/bristow/webcasts/VTOL3Q24.cfm

Replay

A replay will be available through November 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 November 27, 2024. The accompanying investor presentation will be available on November 6, 2024, on Bristow's website at www.bristowgroup.com.

For additional information concerning Bristow, contact Jennifer Whalen at 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 the Company's 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 outlook and 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 outlook and 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: 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; 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; public health crises, such as pandemics (including COVID-19) and epidemics, and any related government policies and actions; our inability to execute our business strategy for diversification efforts related to government services and advanced air mobility; 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 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 portions of our fleet may be grounded for extended periods of time or indefinitely (including due to severe weather events); the possibility of political instability, civil unrest, war or acts of terrorism in any of the countries where we operate or elsewhere; the possibility that we may be unable to re-deploy our aircraft to regions with greater demand; the existence of operating risks inherent in our business, including the possibility of declining safety performance; labor issues, including our inability to negotiate acceptable collective bargaining or union agreements with employees covered by such agreements; the possibility of changes in tax, environmental and other laws and regulations and policies, including, without limitation, actions of the governments that impact oil and gas operations, favor renewable energy projects or address climate change; any failure to effectively manage, and receive anticipated returns from, acquisitions, divestitures, investments, joint ventures and other portfolio actions; the possibility that we may be unable to dispose of older aircraft through sales into the aftermarket; the possibility that we may impair our long-lived assets and other assets, including inventory, property and equipment and investments in unconsolidated affiliates; general economic conditions, including interest rates or uncertainty in the capital and credit markets; 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; and the effectiveness of our environmental, social and governance initiatives.

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)

September 30,2024

June 30,2024

Revenues:

Operating revenues

$         356,426

$         352,494

$             3,932

Reimbursable revenues

8,696

7,255

1,441

Total revenues

365,122

359,749

5,373