Bristow Group Reports First Quarter 2025 Results; Affirms 2025 And 2026 Outlook Ranges
- Stable Adjusted EBITDA at $57.7 million quarter-over-quarter
- Strong liquidity position with $254.3 million total liquidity
- Operating income increased in Offshore Energy Services by 8.8% to $37.4 million
- Government Services revenue grew 4.1% with new Irish Coast Guard contract
- Affirmed positive outlook for 2025 and 2026 with projected EBITDA growth
- Revenue declined slightly to $350.5 million from $353.5 million QoQ
- Net income decreased to $27.4 million from $31.8 million QoQ
- Working capital used $56.4 million of cash due to increased receivables and inventory
- Other Services segment revenue dropped 19.5% with lower seasonal utilization
- Negative operating cash flow of $603,000 compared to positive $51 million in previous quarter
Insights
Bristow maintains solid EBITDA despite revenue dip and tax swing; affirms positive outlook despite economic headwinds.
Bristow Group's Q1 2025 results demonstrate operational resilience amid challenging conditions. Revenue of
Despite revenue pressure, Adjusted EBITDA remained remarkably stable at
Capital allocation reveals a clear growth focus – total capex of
In segment performance, Offshore Energy Services maintained steady revenue while improving operating margins from
Most significantly, Bristow affirmed their 2025 Adjusted EBITDA guidance of
Bristow's diversified business model shows resilience with stable EBITDA and strategic shift toward government contracts amid market uncertainties.
Bristow's Q1 results highlight the strategic advantages of their diversified service portfolio across energy and government sectors. The resilience in the Offshore Energy segment, which showed margin expansion despite flat revenue, demonstrates the stability of production support operations – which provide consistent demand regardless of energy price fluctuations, unlike more volatile exploration activities.
The geographical breakdown reveals important operational dynamics. European revenues declined by
The Government Services segment proved its value as a growth engine with the Irish Coast Guard contract contributing
The seasonal impact on Other Services (
Bristow's forward guidance reveals their strategic emphasis on Government Services, projecting substantial growth from 2025 to 2026 in both revenue (from
First Quarter Highlights
- Total revenues of
$350.5 million $353.5 million - Net income of
$27.4 million $0.92 $31.8 million $1.07 - Adjusted EBITDA (as defined herein)(1) for Q1 2025 was
$57.7 million - Affirms 2025 Adjusted EBITDA outlook range of
$230 $260 million $275 $335 million
Bristow Group Inc. (NYSE: VTOL) ("Bristow" or the "Company") today reported net income attributable to the Company of
The following table provides select financial highlights for the periods reflected (in thousands, except per share amounts). A reconciliation of net income to EBITDA and Adjusted EBITDA, operating income to Adjusted Operating Income and cash provided by (used in) operating activities to Free Cash Flow and Adjusted Free Cash Flow is included in the "Non-GAAP Financial Measures" section herein.
Three Months Ended | |||
March 31, | December 31, | ||
Total revenues | $ 350,530 | $ 353,526 | |
Operating income | 33,548 | 31,804 | |
Net income attributable to Bristow Group Inc. | 27,359 | 31,793 | |
Basic earnings per common share | 0.95 | 1.11 | |
Diluted earnings per common share | 0.92 | 1.07 | |
Net cash provided by (used in) operating activities(2) | (603) | 51,054 | |
Non-GAAP(1): | |||
Adjusted Operating Income | $ 54,353 | $ 52,314 | |
EBITDA | 63,895 | 44,581 | |
Adjusted EBITDA | 57,710 | 57,840 | |
Free Cash Flow(2) | (2,489) | 48,315 | |
Adjusted Free Cash Flow(2) | (1,749) | 45,735 | |
(1) | See definitions of these non-GAAP financial measures and the reconciliation of GAAP to non-GAAP financial measures in the Non-GAAP Financial Measures section further below. | |||||||||||
(2) | Working capital used | |||||||||||
"While acknowledging that macroeconomic risks and uncertainties have increased significantly in recent months, we continue to have a positive outlook for Bristow's business, as underscored by the Company's financial guidance for 2025 and 2026," said Chris Bradshaw, President and CEO of Bristow Group. "This view is supported by the stability of our Government Services business, the preponderant weighting of our Offshore Energy Services business to production support activities, and the breadth and diversity of the geographic markets we serve."
Sequential Quarter Results
Offshore Energy Services
Three Months Ended | ||||||
($ in thousands) | March 31, | December 31, | Favorable | |||
Revenues | $ 239,785 | $ 240,164 | $ (379) | (0.2) % | ||
Operating income | 37,365 | 34,346 | 3,019 | 8.8 % | ||
Adjusted Operating Income | 47,114 | 44,183 | 2,931 | 6.6 % | ||
Operating income margin | 16 % | 14 % | ||||
Adjusted Operating Income margin | 20 % | 18 % | ||||
Revenues from Offshore Energy Services were
Government Services
Three Months Ended | ||||||
($ in thousands) | March 31, | December 31, | Favorable | |||
Revenues | $ 85,943 | $ 82,558 | $ 3,385 | 4.1 % | ||
Operating income | 6,011 | 2,266 | 3,745 | nm | ||
Adjusted Operating Income | 13,719 | 9,750 | 3,969 | 40.7 % | ||
Operating income margin | 7 % | 3 % | ||||
Adjusted Operating Income margin | 16 % | 12 % | ||||
Revenues from Government Services were
Other Services
Three Months Ended | ||||||
($ in thousands) | March 31, | December 31, | Favorable | |||
Revenues | $ 24,802 | $ 30,804 | $ (6,002) | (19.5) % | ||
Operating income (loss) | (622) | 3,623 | (4,245) | nm | ||
Adjusted Operating Income | 2,037 | 6,573 | (4,536) | (69.0) % | ||
Operating income (loss) margin | (3) % | 12 % | ||||
Adjusted Operating Income margin | 8 % | 21 % | ||||
Revenues from Other Services were
Corporate
Three Months Ended | ||||||
($ in thousands) | March 31, | December 31, | Favorable | |||
Corporate: | ||||||
Total expenses | $ 8,648 | $ 8,349 | $ (299) | (3.6) % | ||
Losses on disposal of assets | (558) | (82) | (476) | nm | ||
Operating loss | (9,206) | (8,431) | (775) | (9.2) % | ||
Consolidated: | ||||||
Interest income | $ 2,118 | $ 2,249 | $ (131) | (5.8) % | ||
Interest expense, net | (9,490) | (9,064) | (426) | (4.7) % | ||
Other, net | 11,388 | (6,173) | 17,561 | nm | ||
Income tax benefit (expense) | (10,183) | 12,952 | (23,135) | nm | ||
Total operating loss for Corporate was
Other income, net of
Income tax expense was
Affirms 2025 and 2026 Outlook
Please refer to the section 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 contains non-GAAP financial measures. Please read the section entitled "Non-GAAP Financial Measures" for further information.
Select financial outlook for 2025 and 2026 are as follows (in USD, millions):
2025E | 2026E | ||
Revenues: | |||
Offshore Energy Services | |||
Government Services | |||
Other Services | |||
Total Revenues | |||
Adjusted Operating Income: | |||
Offshore Energy Services | |||
Government Services | |||
Other Services | |||
Corporate | ( | ( | |
Adjusted EBITDA | |||
Cash interest | |||
Cash taxes | |||
Maintenance capital expenditures |
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, net line on the statements of operations. These are related to the revaluation of certain 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.
Each
2025E | 2026E | ||
(in millions, except exchange rates) | |||
Adjusted EBITDA | |||
Average GBP/USD exchange rate | 1.33 | 1.40 |
Liquidity and Capital Allocation
As of March 31, 2025, the Company had
In the Current Quarter, purchases of property and equipment were
Conference Call
The Company's management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Wednesday, May 7, 2025, to review results for the first quarter ended March 31, 2025. The conference call can be accessed using the following link:
Link to Access Earnings Call: https://www.veracast.com/webcasts/bristow/webcasts/VTOL1Q25.cfm
A replay will be available through May 28, 2025 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 May 28, 2025. The accompanying investor presentation will be available on May 7, 2025, 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. Our aviation services include personnel transportation, search and rescue ("SAR"), medevac, fixed-wing transportation, unmanned systems and ad hoc helicopter services. Our business is comprised of three operating segments: Offshore Energy Services, Government Services and Other Services. Our energy customers charter our helicopters primarily to transport personnel to, from and between onshore bases and offshore production platforms, drilling rigs and other installations. Our government customers primarily outsource SAR activities whereby we operate specialized helicopters and provide highly trained personnel. Our other services include fixed wing transportation services through a regional airline and dry-leasing aircraft to third-party operators in support of other industries and geographic markets.
Bristow currently has customers in
Forward-Looking Statements Disclosure
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements about our future business, strategy, operations, capabilities and results; financial projections; plans and objectives of our management; expected actions by us and by third parties, including our customers, competitors, vendors and regulators; and other matters. Some of the forward-looking statements can be identified by the use of words such as "believes," "belief," "forecasts," "expects," "plans," "anticipates," "intends," "projects," "estimates," "may," "might," "will," "would," "could," "should" or other similar words; however, all statements in this press release, other than statements of historical fact or historical financial results, are forward-looking statements. Our forward-looking statements reflect our views and assumptions on the date hereof regarding future events and operating performance. We believe that they are reasonable, but they involve significant known and unknown risks, uncertainties, assumptions and other factors, many of which may be beyond our control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks, uncertainties and factors that could cause or contribute to such differences include, but are not limited to, those discussed in our Annual Report on Form 10-K, and in particular, the risks discussed in Part I, Item 1A, "Risk Factors" of such report and those discussed in other documents we file with the Securities and Exchange Commission (the "SEC"). Accordingly, you should not put undue reliance on any forward-looking statements.
You should consider the following key factors when evaluating these forward-looking statements: 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 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, trade, immigration and other laws and regulations and policies, including, without limitation, tariffs and 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; disruptions in global trade, including as a result of tariffs, trade restrictions, retaliatory trade measures or the effect of such actions on trading relationships between
The above description of risks and uncertainties is by no means all-inclusive, but is designed to highlight what we believe are important factors to consider. All forward-looking statements in this press release are qualified by these cautionary statements and are only made as of the date thereof. The forward-looking statements in this press release should be evaluated together with the many uncertainties that affect our businesses, particularly those discussed in greater detail in Part I, Item 1A, "Risk Factors" and Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K and Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Part II, Item 1A, "Risk Factors" of our subsequent Quarterly Reports on Form 10-Q. We disclaim any obligation or undertaking, other than as required by law, to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, whether as a result of new information, future events or otherwise.
BRISTOW GROUP INC. Condensed Consolidated Statements of Operations (unaudited, in thousands, except per share amounts) | |||||
Three Months Ended March 31, | Favorable/ | ||||
March 31, | December 31, | ||||
Total revenues | $ 350,530 | $ 353,526 | $ (2,996) | ||
Costs and expenses: | |||||
Operating expenses | |||||
Personnel | 87,311 | 87,530 | 219 | ||
Repairs and maintenance | 61,315 | 68,164 | 6,849 | ||
Insurance | 6,834 | 5,827 | (1,007) | ||
Fuel | 18,875 | 19,575 | 700 | ||
Leased-in equipment | 26,049 | 26,150 | 101 | ||
Other | 56,801 | 54,665 | (2,136) | ||
Total operating expenses | 257,185 | 261,911 | 4,726 | ||
General and administrative expenses | 43,100 | 44,372 | 1,272 | ||
Depreciation and amortization expense | 16,841 | 16,701 | (140) | ||
Total costs and expenses | 317,126 | 322,984 | 5,858 | ||
Losses on disposal of assets | (558) | (82) | (476) | ||
Earnings from unconsolidated affiliates | 702 | 1,344 | (642) | ||
Operating income | 33,548 | 31,804 | 1,744 | ||
Interest income | 2,118 | 2,249 | (131) | ||
Interest expense, net | (9,490) | (9,064) | (426) | ||
Other, net | 11,388 | (6,173) | 17,561 | ||
Total other income (expense), net | 4,016 | (12,988) | 17,004 | ||
Income before income taxes | 37,564 | 18,816 | 18,748 | ||
Income tax benefit (expense) | (10,183) | 12,952 | (23,135) | ||
Net income | 27,381 | 31,768 | (4,387) | ||
Net loss (income) attributable to noncontrolling interests | (22) | 25 | (47) | ||
Net income attributable to Bristow Group Inc. | $ 27,359 | $ 31,793 | $ (4,434) | ||
Basic earnings per common share | $ 0.95 | $ 1.11 | |||
Diluted earnings per common share | $ 0.92 | $ 1.07 | |||
Weighted average common shares outstanding, basic | 28,667 | 28,628 | |||
Weighted average common shares outstanding, diluted | 29,867 | 29,796 | |||
Adjusted Operating Income | $ 54,353 | $ 52,314 | $ 2,039 | ||
EBITDA | $ 63,895 | $ 44,581 | $ 19,314 | ||
Adjusted EBITDA | $ 57,710 | $ 57,840 | $ (130) | ||
BRISTOW GROUP INC. REVENUES BY SEGMENT (unaudited, in thousands) | ||||||
Three Months Ended | ||||||
March 31, | December 31, | Favorable | ||||
Offshore Energy Services: | ||||||
$ 101,218 | $ 105,686 | (4.2) % | ||||
91,569 | 89,651 | 1,918 | 2.1 % | |||
46,998 | 44,827 | 2,171 | 4.8 % | |||
Total Offshore Energy Services | $ 239,785 | $ 240,164 | $ (379) | (0.2) % | ||
Government Services | 85,943 | 82,558 | 3,385 | 4.1 % | ||
Other Services | 24,802 | 30,804 | (6,002) | (19.5) % | ||
$ 350,530 | $ 353,526 | (0.8) % | ||||
FLIGHT HOURS BY SEGMENT (unaudited) | ||||||
Three Months Ended | ||||||
March 31, | December 31, | Favorable | ||||
Offshore Energy Services: | ||||||
8,749 | 9,395 | (646) | (6.9) % | |||
10,002 | 10,505 | (503) | (4.8) % | |||
4,680 | 4,239 | 441 | 10.4 % | |||
Total Offshore Energy Services | 23,431 | 24,139 | (708) | (2.9) % | ||
Government Services | 3,941 | 4,242 | (301) | (7.1) % | ||
Other Services | 3,400 | 3,585 | (185) | (5.2) % | ||
30,772 | 31,966 | (1,194) | (3.7) % | |||
BRISTOW GROUP INC. First Quarter Segment Statements of Operations (unaudited, in thousands) | |||||||||
Offshore | Government | Other Services | Corporate | Consolidated | |||||
Three Months Ended March 31, 2025 | |||||||||
Revenues | $ 239,785 | $ 85,943 | $ 24,802 | $ — | $ 350,530 | ||||
Less: | |||||||||
Personnel | 56,766 | 24,473 | 6,072 | — | 87,311 | ||||
Repairs and maintenance | 46,907 | 11,361 | 3,047 | — | 61,315 | ||||
Insurance | 4,029 | 2,437 | 368 | — | 6,834 | ||||
Fuel | 12,702 | 2,082 | 4,091 | — | 18,875 | ||||
Leased-in equipment | 14,933 | 9,693 | 1,423 | — | 26,049 | ||||
Other segment costs | 37,656 | 12,871 | 6,274 | — | 56,801 | ||||
Total operating expenses | 172,993 | 62,917 | 21,275 | — | 257,185 | ||||
General and administrative expenses | 23,259 | 9,729 | 1,595 | 8,517 | 43,100 | ||||
Depreciation and amortization expense | 6,870 | 7,286 | 2,554 | 131 | 16,841 | ||||
Total costs and expenses | 203,122 | 79,932 | 25,424 | 8,648 | 317,126 | ||||
Losses on disposal of assets | — | — | — | (558) | (558) | ||||
Earnings from unconsolidated affiliates | 702 | — | — | — | 702 | ||||
Operating income (loss) | $ 37,365 | $ 6,011 | $ (622) | $ (9,206) | $ 33,548 | ||||
Non-GAAP: | |||||||||
Depreciation and amortization expense | 6,870 | 7,286 | 2,554 | 131 | 16,841 | ||||
PBH amortization | 2,879 | 422 | 105 | — | 3,406 | ||||
Losses on disposal of assets | — | — | — | 558 | 558 | ||||
Adjusted Operating Income (Loss) | $ 47,114 | $ 13,719 | $ 2,037 | $ (8,517) | $ 54,353 | ||||
Offshore | Government | Other Services | Corporate | Consolidated | |||||
Three Months Ended December 31, 2024 | |||||||||
Revenues | $ 240,164 | $ 82,558 | $ 30,804 | $ — | $ 353,526 | ||||
Less: | |||||||||
Personnel | 55,737 | 25,507 | 6,286 | — | 87,530 | ||||
Repairs and maintenance | 54,051 | 10,952 | 3,161 | — | 68,164 | ||||
Insurance | 3,902 | 1,649 | 276 | — | 5,827 | ||||
Fuel | 13,025 | 1,826 | 4,724 | — | 19,575 | ||||
Leased-in equipment | 14,887 | 9,777 | 1,486 | — | 26,150 | ||||
Other segment costs | 34,415 | 13,521 | 6,729 | — | 54,665 | ||||
Total operating expenses | 176,017 | 63,232 | 22,662 | — | 261,911 | ||||
General and administrative expenses | 24,369 | 10,073 | 1,738 | 8,192 | 44,372 | ||||
Depreciation and amortization expense | 6,776 | 6,987 | 2,781 | 157 | 16,701 | ||||
Total costs and expenses | 207,162 | 80,292 | 27,181 | 8,349 | 322,984 | ||||
Losses on disposal of assets | — | — | — | (82) | (82) | ||||
Earnings from unconsolidated affiliates | 1,344 | — | — | — | 1,344 | ||||
Operating income (loss) | $ 34,346 | $ 2,266 | $ 3,623 | $ (8,431) | $ — | $ 31,804 | |||
Non-GAAP: | |||||||||
Depreciation and amortization expense | 6,776 | 6,987 | 2,781 | 157 | 16,701 | ||||
PBH amortization | 3,061 | 497 | 169 | — | 3,727 | ||||
Losses on disposal of assets | — | — | — | 82 | 82 | ||||
Adjusted Operating Income (Loss) | $ 44,183 | $ 9,750 | $ 6,573 | $ (8,192) | $ 52,314 | ||||
BRISTOW GROUP INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) | |||
March 31, | December 31, | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 193,929 | $ 251,281 | |
Accounts receivable, net | 253,926 | 211,590 | |
Inventories | 122,936 | 114,509 | |
Prepaid expenses and other current assets | 44,210 | 42,078 | |
Total current assets | 615,001 | 619,458 | |
Property and equipment, net | 1,129,679 | 1,076,221 | |
Investment in unconsolidated affiliates | 23,126 | 22,424 | |
Right-of-use assets | 248,726 | 264,270 | |
Other assets | 155,660 | 142,873 | |
Total assets | $ 2,172,192 | $ 2,125,246 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 99,282 | $ 83,462 | |
Deferred revenue | 23,348 | 15,186 | |
Current portion of operating lease liabilities | 78,323 | 78,359 | |
Accrued liabilities | 114,541 | 130,279 | |
Current maturities of long-term debt | 19,184 | 18,614 | |
Total current liabilities | 334,678 | 325,900 | |
Long-term debt, less current maturities | 682,764 | 671,169 | |
Other liabilities and deferred credits | 10,586 | 8,937 | |
Deferred taxes | 41,104 | 39,019 | |
Long-term operating lease liabilities | 171,757 | 188,949 | |
Total liabilities | 1,240,889 | 1,233,974 | |
Stockholders' equity: | |||
Common stock | 317 | 315 | |
Additional paid-in capital | 745,622 | 742,072 | |
Retained earnings | 340,124 | 312,765 | |
Treasury stock, at cost | (72,271) | (69,776) | |
Accumulated other comprehensive loss | (82,076) | (93,669) | |
Total Bristow Group Inc. stockholders' equity | 931,716 | 891,707 | |
Noncontrolling interests | (413) | (435) | |
Total stockholders' equity | 931,303 | 891,272 | |
Total liabilities and stockholders' equity | $ 2,172,192 | $ 2,125,246 | |
Non-GAAP Financial Measures
The Company's management uses EBITDA, Adjusted EBITDA and Adjusted Operating Income 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, are non-GAAP measures, 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
EBITDA and Adjusted EBITDA
EBITDA is defined as Earnings before Interest expense, Taxes, Depreciation and Amortization. Adjusted EBITDA is defined as EBITDA further adjusted for non-cash gains and losses on the sale of assets, non-cash foreign exchange gains (losses) related to the revaluation of certain balance sheet items, and certain special items that occurred during the reported period, such as the amortization of PBH maintenance agreements that are non-cash within the period, gains on insurance claims, non-cash nonrecurring insurance adjustments and other special items which include professional service fees related to unusual litigation proceedings and other nonrecurring costs related to strategic activities. The professional services fees are primarily attorneys' fees related to a litigation and arbitration matter that the Company is pursuing (where no gain contingency has been recorded or identified) that is unusual in nature and outside of the normal course of the Company's continuing business operations. The other nonrecurring costs related to strategic activities are costs associated with financing transactions and proposed mergers and acquisitions ("M&A") transactions. These special items are related to various pursuits that are not individually material to the Company and, as such, are aggregated for presentation. The Company views these matters and their related financial impacts on the Company's operating performance as extraordinary and not reflective of the operational performance of the Company's core business activities. In addition, the same costs are not reasonably likely to recur within two years nor have the same charges or gains occurred within the prior two years. 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 the most directly comparable GAAP measure, 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 following tables provide a reconciliation of net income, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA (unaudited, in thousands).
Three Months Ended | |||||||||
March 31, | December 31, | September 30, | June 30, | LTM | |||||
Net income | $ 27,381 | $ 31,768 | $ 28,279 | $ 28,191 | $ 115,619 | ||||
Depreciation and amortization expense | 16,841 | 16,701 | 17,569 | 16,848 | 67,959 | ||||
Interest expense, net | 9,490 | 9,064 | 9,660 | 9,385 | 37,599 | ||||
Income tax expense (benefit) | 10,183 | (12,952) | 8,392 | 9,245 | 14,868 | ||||
EBITDA | $ 63,895 | $ 44,581 | $ 63,900 | $ 63,669 | $ 236,045 | ||||
Losses on disposal of assets | 558 | 82 | 626 | 224 | 1,490 | ||||
Foreign exchange (gains) losses | (11,045) | 12,581 | (10,904) | 749 | (8,619) | ||||
Special items(1) | 4,302 | 596 | 6,558 | 6,639 | 18,095 | ||||
Adjusted EBITDA | $ 57,710 | $ 57,840 | $ 60,180 | $ 71,281 | $ 247,011 | ||||
(1) Special items include the following: | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | September 30, | June 30, | LTM | |||||
PBH amortization | $ 3,406 | $ 3,727 | $ 3,723 | $ 3,725 | $ 14,581 | ||||
Gain on insurance claim | — | (4,451) | — | — | (4,451) | ||||
Other special items | 896 | 1,320 | 2,835 | 2,914 | 7,965 | ||||
$ 4,302 | $ 596 | $ 6,558 | $ 6,639 | $ 18,095 | |||||
The Company is unable to provide a reconciliation of projected Adjusted EBITDA (non-GAAP) for the outlook periods 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 projected Adjusted EBITDA (non-GAAP) to net income (GAAP) for the outlook periods.
Free Cash Flow and Adjusted Free Cash Flow
Free Cash Flow represents the Company's net cash provided by (used in) operating activities less maintenance capital expenditures. Adjusted Free Cash Flow is Free Cash Flow adjusted to exclude costs paid in relation to certain special items which primarily include (i) professional service fees related to unusual litigation proceedings and (ii) other nonrecurring costs related to strategic activities. The professional services fees are primarily attorneys' fees related to a litigation and arbitration matter that the Company is pursuing (where no gain contingency has been recorded or identified) that is unusual in nature and outside of the normal course of the Company's continuing business operations. The other nonrecurring costs related to strategic activities are costs associated with financing transactions and proposed M&A transactions. These special items are related to various pursuits that are not individually material to the Company and, as such, are aggregated for presentation. The Company views these matters and their related financial impacts on the Company's operating performance as extraordinary and not reflective of the operational performance of the Company's core business activities. In addition, the same costs are not reasonably likely to recur within two years nor have the same charges or gains occurred within the prior two years. 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. Neither Free Cash Flow nor Adjusted Free Cash Flow is a recognized term under GAAP. Accordingly, these measures should not be used as an indicator of, or an alternative to, net cash provided by operating activities, the most directly comparable GAAP measure. 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 (used in) operating activities, the most directly comparable GAAP measure, to Free Cash Flow and Adjusted Free Cash Flow (unaudited, in thousands).
Three Months Ended | |||||||||
March 31, | December 31, | September 30, | June 30, | LTM | |||||
Net cash provided by (used in) operating activities | $ (603) | $ 51,054 | $ 66,022 | $ 33,665 | $ 150,138 | ||||
Less: Maintenance capital expenditures | (1,886) | (2,739) | (8,041) | (2,215) | (14,881) | ||||
Free Cash Flow | $ (2,489) | $ 48,315 | $ 57,981 | $ 31,450 | $ 135,257 | ||||
Plus: Special items | 740 | (2,580) | 1,539 | 1,881 | 1,580 | ||||
Adjusted Free Cash Flow | $ (1,749) | $ 45,735 | $ 59,520 | $ 33,331 | $ 136,837 | ||||
Adjusted Operating Income by Segment
Adjusted Operating Income (Loss) ("Adjusted Operating Income") is defined as operating income (loss) before depreciation and amortization, PBH amortization and gains or losses on asset dispositions that occurred during the reported period. The Company includes Adjusted Operating Income to provide investors with a supplemental measure of each segment's operating performance. Management believes that the use of Adjusted Operating Income is meaningful to investors because it provides information with respect to each segment's ability to generate cash from its operations. Adjusted Operating Income is not a recognized term under GAAP. Accordingly, this measure should not be used as an indicator of, or an alternative to, operating income (loss), the most directly comparable GAAP measure, as a measure of operating performance. Because the definition of Adjusted Operating Income (or similar measures) may vary among companies and industries, it may not be comparable to other similarly titled measures used by other companies.
The following table provides a reconciliation of operating income (loss), the most directly comparable GAAP measure, to Adjusted Operating Income for each segment and Corporate (unaudited, in thousands).
Three Months Ended | |||
March 31, | December 31, | ||
Offshore Energy Services: | |||
Operating income | $ 37,365 | $ 34,346 | |
Depreciation and amortization expense | 6,870 | 6,776 | |
PBH amortization | 2,879 | 3,061 | |
Offshore Energy Services Adjusted Operating Income | $ 47,114 | $ 44,183 | |
Government Services: | |||
Operating income | $ 6,011 | $ 2,266 | |
Depreciation and amortization expense | 7,286 | 6,987 | |
PBH amortization | 422 | 497 | |
Government Services Adjusted Operating Income | $ 13,719 | $ 9,750 | |
Other Services: | |||
Operating income (loss) | $ (622) | $ 3,623 | |
Depreciation and amortization expense | 2,554 | 2,781 | |
PBH amortization | 105 | 169 | |
Other Services Adjusted Operating Income | $ 2,037 | $ 6,573 | |
Total Segment Adjusted Operating Income | $ 62,870 | $ 60,506 | |
Corporate: | |||
Operating loss | $ (9,206) | $ (8,431) | |
Depreciation and amortization expense | 131 | 157 | |
Losses on disposal of assets | 558 | 82 | |
Corporate Adjusted Operating Loss | $ (8,517) | $ (8,192) | |
Consolidated Adjusted Operating Income | $ 54,353 | $ 52,314 | |
The Company is unable to provide a reconciliation of projected Adjusted Operating Income by segment (non-GAAP) for the outlook periods included in this release to projected operating 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 Operating Income by segment due to the uncertainty regarding timing and estimates of such items. Therefore, the Company does not present a reconciliation of projected Adjusted Operating Income by segment (non-GAAP) to operating income (GAAP) for the outlook periods.
BRISTOW GROUP INC. FLEET COUNT | |||||||||
Number of Aircraft | |||||||||
Type | Owned Aircraft | Leased Aircraft | Total | Maximum Passenger Capacity | Average Age | ||||
Heavy Helicopters: | |||||||||
S92 | 34 | 29 | 63 | 19 | 15 | ||||
AW189 | 19 | 4 | 23 | 16 | 8 | ||||
53 | 33 | 86 | |||||||
Medium Helicopters: | |||||||||
AW139 | 49 | 4 | 53 | 12 | 14 | ||||
S76 D/C++ | 13 | — | 13 | 12 | 13 | ||||
AS365 | 1 | — | 1 | 12 | 35 | ||||
63 | 4 | 67 | |||||||
Light—Twin Engine Helicopters: | |||||||||
AW109 | 3 | — | 3 | 7 | 18 | ||||
H135/EC135 | 12 | 1 | 13 | 6 | 12 | ||||
15 | 1 | 16 | |||||||
Light—Single Engine Helicopters: | |||||||||
AS350 | 12 | — | 12 | 4 | 26 | ||||
AW119 | 13 | — | 13 | 7 | 18 | ||||
25 | — | 25 | |||||||
Total Helicopters | 156 | 38 | 194 | 15 | |||||
Fixed Wing | 9 | 4 | 13 | ||||||
Unmanned Aerial Systems ("UAS") | 4 | — | 4 | ||||||
Total Fleet | 169 | 42 | 211 | ||||||
(1) Reflects the average age of helicopters that are owned by the Company. | |||||||||||
The table below presents the number of aircraft in our fleet and their distribution among the segments in which we operate as of March 31, 2025 and the percentage of revenues that each of our segments provided during the Current Quarter.
Percentage of Total Revenues | Helicopters | Fixed Wing | UAS | ||||||||||||
Heavy | Medium | Light | Light | Total | |||||||||||
Offshore Energy Services | 68 % | 57 | 58 | 13 | — | 1 | — | 129 | |||||||
Government Services | 25 % | 29 | 6 | 3 | 20 | — | 4 | 62 | |||||||
Other Services | 7 % | — | 3 | — | 5 | 12 | — | 20 | |||||||
Total | 100 % | 86 | 67 | 16 | 25 | 13 | 4 | 211 | |||||||
Aircraft not currently in fleet: | |||||||||||||||
Under construction(1) | 10 | 5 | 2 | — | — | — | 17 | ||||||||
On order(2) | — | — | 5 | — | — | — | 5 | ||||||||
Options(3) | 10 | — | 10 | — | — | — | 20 | ||||||||
(1) | Under construction reflects new aircraft that the Company has either taken ownership of and are undergoing additional configuration before being placed into service or are currently under construction by the Original Equipment Manufacturer (OEM) and pending delivery. Includes ten AW189 heavy helicopters (of which three were delivered and are undergoing additional configuration), five AW139 medium helicopters (of which three were delivered and are undergoing additional configuration) and two H135 light-twin helicopters (of which two were delivered and are undergoing additional configuration). | |||||||||||
(2) | On order reflects aircraft that the Company has commitments to purchase but construction has not yet begun. Includes five AW169 light-twin helicopters. | |||||||||||
(3) | Options include 10 AW189 heavy helicopters and 10 H135 light-twin helicopters. | |||||||||||
View original content:https://www.prnewswire.com/news-releases/bristow-group-reports-first-quarter-2025-results-affirms-2025-and-2026-outlook-ranges-302447745.html
SOURCE Bristow Group
FAQ
What were Bristow Group's (VTOL) key financial results for Q1 2025?
What is Bristow's (VTOL) EBITDA guidance for 2025 and 2026?
How much liquidity does Bristow (VTOL) have as of March 31, 2025?
What caused Bristow's (VTOL) working capital usage in Q1 2025?
How did Bristow's (VTOL) Government Services segment perform in Q1 2025?
