(Bristow, 6.Aug.2024) — Bristow Group Inc. reported net income attributable to the company of $28.2mn, or $0.96 per diluted share, for its quarter ended 30 June 2024 (the “Current Quarter”) on operating revenues of $352.5mn compared to net income attributable to the company of $6.6mn, or $0.23 per diluted share, for the quarter ended 31 March 2024 (the “Preceding Quarter”) on operating revenues of $329.4mn.
Highlights:
- Total revenues of $359.7mn in Q2 2024 compared to $337.1mn in Q1 2024
- Net income of $28.2mn, or $0.96 per diluted share, in Q2 2024 compared to net income of $6.6mn, or $0.23 per diluted share, in Q1 2024
- EBITDA adjusted to exclude special items, asset dispositions and foreign exchange losses was $71.3mn in Q2 2024 compared to $47.5mn in Q1 2024(1)
- Increases 2024 Adjusted EBITDA outlook range to $210mn – $230mn and 2025 outlook to $230mn – $260mn
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $63.7mn in the Current Quarter compared to $35.8mn in the Preceding Quarter. EBITDA adjusted to exclude special items, losses on asset dispositions and foreign exchange losses was $71.3mn in the Current Quarter compared to $47.5mn 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 losses (in thousands, unaudited). See “Non-GAAP Financial Measures” for further information on the use of non-GAAP financial measures used herein.
“In conjunction with Bristow’s very strong second quarter financial results, we are pleased to raise the Company’s Adjusted EBITDA guidance range to $210mn – $230mn in 2024 and $230mn – $260mn in 2025,” said Chris Bradshaw, President and CEO of Bristow Group. “This financial outlook is aligned with our conviction that we are in the early stages of a multi-year growth cycle. The growth and diversification of our government services business, along with an accelerating offshore energy upcycle and tight supply dynamic, are increasing the company’s visibility for significant improvements in margins, free cash flow and capital returns.”
Sequential Quarter Results
Operating revenues in the Current Quarter were $23.1mn higher compared to the Preceding Quarter. Operating revenues from offshore energy services were $17.8mn higher primarily due to higher utilization in the Americas and Africa. Operating revenues from government services were $2.6mn lower in the Current Quarter primarily due to a change in rates and penalties related to lower availability. Operating revenues from fixed wing services were $8.3mn higher in the Current Quarter primarily due to higher utilization and increased rates.
Operating expenses were $0.9mn lower than the Preceding Quarter primarily due to lower operating personnel salaries and leased-in equipment costs, partially offset by higher repairs and maintenance, fuel and other operating costs. The lower personnel salaries were primarily due to seasonal personnel cost variations in Norway and an adjustment for tax equalization in Suriname.
General and administrative expenses were $1.6mn higher than the Preceding Quarter primarily due to higher professional services fees, partially offset by lower personnel and insurance costs.
Earnings from unconsolidated affiliates were $0.7mn in the Current Quarter compared to earnings of $1.4mn in the Preceding Quarter.
Other expense, net of $0.1mn in the Current Quarter primarily resulted from foreign exchange losses of $0.7mn, partially offset by government grants to fixed wing services and a favorable interest adjustment to the company’s pension liability. Other expense, net of $6.2mn in the Preceding Quarter resulted from foreign exchange losses of $6.5 million due to the significant devaluation of the Nigerian Naira (“NGN”).
Income tax expense was $9.2mn in the Current Quarter compared to $2.5mn 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 30 June 2024, the company had $178.6mn of unrestricted cash and $67.8mn of remaining availability under its amended asset-based revolving credit facility (the “ABL Facility”) for total liquidity of $246.4mn. Borrowings under the ABL Facility are subject to certain conditions and requirements.
In the Current Quarter, purchases of property and equipment were $50.4mn, of which $2.2mn were maintenance capital expenditures, and cash proceeds from dispositions of property and equipment were $4.4mn. In the Preceding Quarter, purchases of property and equipment were $64.6mn, of which $4.9mn were maintenance capital expenditures.
In June 2024, the company entered into a long-term equipment financing for an aggregate amount of up to €100mn with National Westminster Bank Plc as the original lender and UK Export Finance guaranteeing 80% of the facility (“IRCG Debt”, formerly known as “UKEF Debt”). The financing will be used, among other items, to support the Company’s acquisition of five new AW189 aircraft to service the Irish Coast Guard contract. As of 31 July 2024, the company had drawn approximately €46.0mn on the IRCG Debt facility.
Increases 2024 and 2025 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 second quarter earnings and a review of the forecast for the remainder of the year, the company raised its Adjusted EBITDA guidance ranges from $190mn – $220mn to $210mn – $230mn for 2024 and from $210mn – $245mn to $230mn – $260mn for 2025. The company’s targets for 2026 remain unchanged.
Select financial outlook for 2024 and 2025 as well as 2026 targets are as follows (in USD, millions):
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