Bristow Group Inc
For the period ended Jun 30, 2024. Filed Aug 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 7, 2024
VTOL$37.41+2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-08.
0001525221-24-000039
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0001525221-24-000061
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsForward-Looking StatementsOverviewFleet InformationThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 111 previous paragraphs and 47 current paragraphs.
40 unchanged; 3 reworded; 4 added; 68 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
In June 2024, the Company entered into a long-term equipment financing for an aggregate amount of up to €100.0 million 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 primarily to support the Company’s acquisition of five new AW189 aircraft to service the Irish Coast Guard (“IRCG”) contract. As of July 31, 2024, the Company had drawn approximately €46.0 million under this facility.
Current report
In May 2024, the Company released its 2023 Sustainability Report, which underscores its ongoing commitment to responsible growth and sustainable practices, as well as aligning with internationally recognized frameworks and standards to offer stakeholders a transparent view of the Company's efforts. The report highlights the Company’s updates to its materiality assessment, as the Company strives to ensure that its sustainability efforts remain aligned with stakeholder expectations as well as the most relevant areas of potential impact. In 2023, the Company achieved a 50% reduction in Lost Work Cases and a 39% decrease in Total Recordable Incident Rate as compared to the previous year, reaffirming its commitment to safety as its highest operational priority. The Company continues its role in the development and certification of aircraft powered by electric and hybrid propulsion technologies that will create efficiencies and reduce greenhouse gas emissions. Information on our website, including the Company’s 2023 Sustainability Report, is not incorporated by reference into this Quarterly Report on Form 10-Q.
Removed paragraphs (68)
Previous report
Bristow Outlook
Previous report
In May 2024, the Company affirmed its 2024 outlook and issued select financial guidance and targets for 2025 and 2026, respectively. The Company’s 2024, 2025 and 2026 outlook was filed with the SEC on Form 8-K on May 7, 2024, as part of the Company’s earnings press release and can also be found on the Company’s website.
Previous report
Bristow Helicopters Limited Term Loan
Previous report
In January 2024, the Company entered into a long-term equipment financing to upsize the NatWest Debt facility by an aggregate amount of up to £55 million. The upsizing will be used to support the Company’s capital commitments related to the Second-Generation UK Search and Rescue (“UKSAR2G”) contract. In April 2024, the first utilization date occurred under the upsized NatWest Debt, and the Company borrowed approximately £26 million at that time.
Previous report
Results of Operations
Previous report
Management believes the comparison of the most recently completed quarter to the immediately preceding quarter provides more relevant information needed to understand and analyze the business. As such, pursuant to Item 303(c)(2)(ii) of Regulation S-K, we have elected to discuss any material changes in our results of operations by including a comparison of our most recently completed fiscal quarter to the immediately preceding quarter.
Previous report
The following table presents our operating results and other statement of operations information for the Current Quarter and the Preceding Quarter (in thousands, except percentages):
Previous report
Revenues by Service Line. The table below sets forth the operating revenues earned by service line for the applicable periods (in thousands):
Previous report
Current Quarter compared to Preceding Quarter
Previous report
Operating revenues. Operating revenues were $0.2 million lower in the quarter ended March 31, 2024 (the “Current Quarter”) compared to the quarter ended December 31, 2023 (the “Preceding Quarter”).
Previous report
Operating revenues from offshore energy services were $0.7 million higher in the Current Quarter.
Previous report
Operating revenues from offshore energy services in the Africa region were $1.0 million higher in the Current Quarter primarily due to additional aircraft on contract.
Previous report
Operating revenues from offshore energy services in the Europe region were $0.5 million higher in the Current Quarter. Revenues in Norway were $2.6 million higher primarily due to increased ad hoc activity, increased rates and the strengthening of the Norwegian krone (“NOK”) relative to the U.S. dollar. Revenues in the UK were $2.2 million lower primarily due to lower utilization, partially offset by the strengthening of the British Pound Sterling (“GBP”) relative to the U.S. dollar.
Previous report
Operating revenues from offshore energy services in the Americas region were $0.7 million lower in the Current Quarter primarily due to seasonally lower utilization in the U.S. Gulf of Mexico (“GOM”), partially offset by higher utilization in Brazil and Suriname, and higher lease payments of $0.5 million received from Cougar Helicopters Inc. (“Cougar”), which are recognized on a cash basis.
Previous report
Operating revenues from government services were $0.4 million higher in the Current Quarter primarily due to the strengthening of the GBP relative to the U.S. dollar.
Previous report
Operating revenues from fixed wing services were $2.0 million lower in the Current Quarter primarily due to lower seasonal utilization in Australia and the weakening of the Nigerian Naira (“NGN”) relative to the U.S. dollar.
Previous report
Operating revenues from other services were $0.6 million higher primarily due to higher dry-lease revenues.
Previous report
Operating expenses. Operating expenses were $2.2 million lower than the Preceding Quarter. Fuel costs were $3.8 million lower primarily due to lower seasonal flight hours and decreased global fuel prices. Repairs and maintenance costs were $0.6 million lower primarily due to the timing of repairs and lower inventory write-offs, partially offset by higher power-by-the-hour (“PBH”) expenses due to vendor credits recognized in the Preceding Quarter. Salaries and leased-in equipment costs were each $0.3 million lower than the Preceding Quarter. These decreases were partially offset by higher insurance costs of $1.6 million primarily due to a reclassification of costs. Other operating costs were $1.3 million higher primarily due to deferred amortization costs, lower gains from foreign currency hedging contracts and higher subcontractor costs.
Previous report
General and administrative expenses. General and administrative expenses were $0.8 million lower than the Preceding Quarter. Professional services fees were $1.6 million lower primarily due to lower legal fees. Insurance costs were lower than the Preceding Quarter by $0.8 million primarily due to the reclassification of insurance costs noted above. These decreases were partially offset by higher personnel costs of $1.9 million primarily due to higher payroll related taxes.
Previous report
Interest income. Interest income was $1.5 million lower primarily due to lower investment balances.
Previous report
Interest expense, net Interest expense, net was $1.8 million lower in the Current Quarter primarily due to higher capitalized interest on aircraft purchases.
Previous report
Other, net. Other expense, net of $6.2 million in the Current Quarter primarily resulted from foreign exchange losses of $6.5 million due to the significant devaluation of the NGN. Other income, net of $1.7 million in the Preceding Quarter resulted from foreign exchange gains of $1.9 million, partially offset by an unfavorable interest adjustment to the Company’s pension liability of $0.3 million.
Previous report
Income tax expense. Income tax expense was $2.5 million in the Current Quarter compared to $21.6 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 assets.
Previous report
Liquidity and Capital Resources
Previous report
General
Previous report
Our ongoing liquidity requirements arise primarily from working capital needs, meeting our capital commitments (including the purchase of aircraft and other equipment) and the repayment of debt obligations. In addition, we may use our liquidity to fund acquisitions, repurchase stock or debt securities or make other investments. Our primary sources of liquidity are cash balances and cash flows from operations and, from time to time, we may obtain additional liquidity through the issuance of equity or debt or other financing options or through asset sales.
Previous report
Summary of Cash Flows
Previous report
Operating Activities
Previous report
Cash flows provided by operating activities were $20.1 million higher in the Current Quarter primarily due to an increase in operating income before depreciation and gains (losses) on asset dispositions. Working capital uses of $3.4 million in the Current Quarter were primarily due to decreases in accrued liabilities and an increase in inventory. Working capital uses of $4.0 million in the Prior Year Quarter were primarily due to increased inventories and decreased payables.
Previous report
Investing Activities
Previous report
During the Current Quarter, net cash used in investing activities was $64.6 million primarily consisting of:
Previous report
•Capital expenditures of $64.6 million primarily related to payments for aircraft, purchases of equipment and leasehold improvements.
Previous report
During the Prior Year Quarter, net cash used in investing activities was $8.1 million primarily consisting of:
Previous report
•Capital expenditures of $31.5 million primarily related to deposit payments for aircraft, purchases of equipment and leasehold improvements, and
Previous report
•Proceeds of $23.4 million primarily from the sale of aircraft and other assets.
Previous report
Financing Activities
Previous report
During the Current Quarter, net cash used in financing activities was $5.1 million primarily consisting of:
Previous report
•Net repayments of debt of $3.3 million,
Previous report
•Stock repurchases of $1.0 million, and
Previous report
•Payments on debt issuance costs of $0.8 million.
Showing the first 40 of 68 passages. Open the source sections for the rest.
Reworded paragraphs (3)
Previous wording
In the discussions that follow, the terms “Current Quarter”, “Preceding Quarter” and “Prior Year Quarter” refer to three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively.
Current wording
In the discussions that follow, the terms “Current Quarter” and “Preceding Quarter” refer to the three months ended June 30, 2024 and March 31, 2024, respectively, and “Current Period” and “Prior Year Period” refer to the six months ended June 30, 2024 and 2023, respectively.
Previous wording
(1)Under construction reflects new aircraft that the Company has either taken ownership of and are undergoing additional configuration before being put into service or are currently under construction by the Original Equipment Manufacturer (“OEM”) and pending delivery. Includes five AW189 heavy helicopters, six AW139 medium helicopters and five H135 light-twin helicopters.
Current wording
(1)Under construction reflects new aircraft that the Company has either taken ownership of and are undergoing additional configuration before being put into service or are currently under construction by the Original Equipment Manufacturer (“OEM”) and pending delivery. Includes seven AW189 heavy helicopters (of which one was delivered and is undergoing additional configuration), six AW139 medium helicopters (of which two were delivered and are undergoing additional configuration) and five H135 light-twin helicopters.
Previous wording
(2)On order reflects aircraft that the Company has commitments to purchase but construction has not yet begun. Includes seven AW189 heavy helicopters and five AW169 light-twin helicopters.
Current wording
(2)On order reflects aircraft that the Company has commitments to purchase but construction has not yet begun. Includes five AW189 heavy helicopters and five AW169 light-twin helicopters.