Bristow Group Inc. has reported net loss attributable to the company of $1.6 million, or $0.06 per diluted share, for its quarter ended June 30, 2023 (the current quarter) on operating revenues of $311.5 million compared to net loss attributable to the company of $1.5 million, or $0.05 per diluted share, for the quarter ended March 31, 2023 (the preceding quarter) on operating revenues of $292.9 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $12.3 million in the current quarter compared to $21.1 million in the preceding quarter.
EBITDA adjusted to exclude special items, gains or losses on asset dispositions and foreign exchange losses was $39.0 million in the current quarter compared to $28.9 million in the preceding quarter.
The following table provides a reconciliation of net loss to EBITDA, adjusted EBITDA and adjusted EBITDA excluding gains or losses on asset dispositions and foreign exchange losses (in thousands, unaudited).
“The 35 percent sequential quarter improvement in adjusted EBITDA, excluding asset dispositions and foreign exchange losses, is evidence of the building momentum for Bristow’s business in 2023,” said Chris Bradshaw, president and CEO of Bristow Group.
“We continue to believe the company’s financial performance in the second half of the year will be significantly higher than the first half of this year, setting up positively for stronger financial results in 2024, as highlighted by our recently issued adjusted EBITDA guidance of $190 – $220 million for next year.”
Sequential quarter results
Operating revenues in the current quarter were $18.6 million higher compared to the preceding quarter.
Operating revenues from offshore energy services were $13.6 million higher primarily due to higher utilization and higher lease payments received from Cougar Helicopters Inc.
Operating revenues from government services were $5 million higher in the current quarter primarily due to the strengthening of the British pound sterling (GBP) relative to the U.S. dollar (USD) and higher utilization.
Operating expenses were $13.9 million higher in the current quarter, primarily due to higher repairs and maintenance costs, other operating costs, and a non-cash, nonrecurring write-off related to amounts from legacy insurance policies, partially offset by lower fuel costs.
General and administrative expenses were $2.1 million lower, primarily due to lower professional services fees.
During the current quarter, the company sold or otherwise disposed of three helicopters and other assets, resulting in a net loss of $3.2 million. During the preceding quarter, the company sold or otherwise disposed of three helicopters and other assets, resulting in a net gain of $3.3 million.
Other expense, net of $13 million in the current quarter, primarily resulted from foreign exchange losses of $13 million. Other expense, net of $3.4 million in the preceding quarter, primarily resulted from foreign exchange losses of $4.1 million, partially offset by a favorable interest adjustment to the company’s pension liability.
Income tax benefit was $9.1 million higher in the current quarter, primarily due to the earnings mix of the company’s global operations and changes to deferred tax valuation allowances and assets.
Liquidity and capital allocation
As of June 30, 2023, the company had $212 million of unrestricted cash and $73.3 million of remaining availability under its amended asset-based revolving credit facility (the ABL Facility) for total liquidity of $285.3 million. Borrowings under the amended ABL Facility are subject to certain conditions and requirements.
In the current quarter, purchases of property and equipment were $12.2 million, of which $2.5 million were maintenance capital expenditures, and cash proceeds from dispositions of property and equipment were $3.3 million.
In the preceding quarter, purchases of property and equipment were $31.5 million, of which $3 million were maintenance capital expenditures, and cash proceeds from dispositions of property and equipment were $23.4 million.
