Bristow(VTOL) - 2025 Q1 - Quarterly Report

Part I. Financial Information This section provides Bristow Group's financial statements, management's discussion and analysis, and disclosures on market risk and internal controls Financial Statements For the quarter ended March 31, 2025, Bristow Group reported total revenues of $350.5 million, a 4.0% increase year-over-year, with net income surging to $27.4 million | Financial Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $350,530 | $337,094 | +4.0% | | Operating Income | $33,548 | $22,829 | +47.0% | | Net Income Attributable to Bristow | $27,359 | $6,605 | +314.2% | | Diluted EPS | $0.92 | $0.23 | +300.0% | | Balance Sheet Item | March 31, 2025 (in thousands) | Dec 31, 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $191,127 | $247,503 | -22.8% | | Total Assets | $2,172,192 | $2,125,246 | +2.2% | | Total Liabilities | $1,240,889 | $1,233,974 | +0.6% | | Total Stockholders' Equity | $931,303 | $891,272 | +4.5% | | Cash Flow Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash from operating activities | $(603) | $26,679 | | Net cash used in investing activities | $(52,023) | $(64,557) | | Net cash used in financing activities | $(1,695) | $(5,108) | | Net decrease in cash | $(57,352) | $(40,744) | Note 2: Revenues Revenues are primarily generated from Offshore Energy Services and Government Services, both showing year-over-year growth in Q1 2025 | Revenue by Segment | Q1 2025 (in thousands) | Q1 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Offshore energy services | $239,785 | $229,895 | +4.3% | | Government services | $85,943 | $82,172 | +4.6% | | Other services | $24,802 | $25,027 | -0.9% | | Total revenues | $350,530 | $337,094 | +4.0% | Note 4: Debt As of March 31, 2025, total debt stood at $701.9 million, primarily composed of Senior Notes, UKSAR Debt, and IRCG Debt | Debt Component | March 31, 2025 (in thousands) | | :--- | :--- | | 6.875% Senior Notes | $395,960 | | UKSAR Debt | $201,988 | | IRCG Debt | $104,000 | | Total debt | $701,948 | - As of March 31, 2025, there were no outstanding borrowings under the ABL Facility, though letters of credit totaling $8.8 million were outstanding[33] Note 7: Commitments and Contingencies The company has significant capital commitments totaling $169.2 million for the purchase of 14 new helicopters scheduled for delivery in 2025 and 2026 - Unfunded capital commitments for helicopter purchases totaled $169.2 million as of March 31, 2025[41] - Commitments include seven AW189, two AW139, and five AW169 helicopters, with options to purchase ten additional AW189 and ten H135 helicopters[42] Note 11: Segment Performance In Q1 2025, the Offshore Energy Services segment significantly drove profitability, with operating income increasing by 76% year-over-year to $37.4 million | Operating Income (Loss) by Segment | Q1 2025 (in thousands) | Q1 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Offshore Energy Services | $37,365 | $21,199 | +76.3% | | Government Services | $6,011 | $9,290 | -35.3% | | Other Services | $(622) | $878 | -170.8% | | Corporate | $(9,206) | $(8,538) | -7.8% | | Total Operating Income | $33,548 | $22,829 | +47.0% | Management's Discussion and Analysis (MD&A) Management attributes the 5.5% sequential increase in operating income to $33.5 million to improved performance in the Offshore Energy and Government Services segments, maintaining strong liquidity of $254.3 million Fleet Information As of March 31, 2025, Bristow's fleet comprised 211 aircraft, including 194 helicopters and 13 fixed-wing aircraft, with active expansion plans | Aircraft Type | Owned | Leased | Total | | :--- | :--- | :--- | :--- | | Total Helicopters | 156 | 38 | 194 | | Fixed Wing | 9 | 4 | 13 | | Unmanned Aerial Systems | 4 | 0 | 4 | | Total Fleet | 169 | 42 | 211 | - The company has 17 aircraft under construction (10 heavy, 5 medium, 2 light-twin) and 5 light-twin helicopters on order, with options for 20 additional helicopters[70] Results of Operations (QoQ) Comparing Q1 2025 to Q4 2024, total operating income increased by 5.5% to $33.5 million, driven by gains in Offshore Energy and Government Services segments | Metric by Segment | Q1 2025 (in thousands) | Q4 2024 (in thousands) | QoQ Change | | :--- | :--- | :--- | :--- | | Revenues | | | | | Offshore Energy | $239,785 | $240,164 | -0.2% | | Government Services | $85,943 | $82,558 | +4.1% | | Other Services | $24,802 | $30,804 | -19.5% | | Operating Income | | | | | Offshore Energy | $37,365 | $34,346 | +8.8% | | Government Services | $6,011 | $2,266 | +165.3% | | Other Services | $(622) | $3,623 | nm | - The increase in Government Services revenue and operating income was primarily due to the commencement of the Irish Coast Guard (IRCG) contract in late 2024[79] Liquidity and Capital Resources The company reported total liquidity of $254.3 million as of March 31, 2025, with plans to fund $169.2 million in capital commitments through cash, operating cash flow, and financing - Total liquidity as of March 31, 2025, was $254.3 million[92] - The company has unfunded capital commitments of $169.2 million for new helicopters, with deliveries scheduled for 2025 and 2026[96] - Total debt was $701.9 million with no significant near-term maturities, other than the current portion of $19.2 million[92][93] Quantitative and Qualitative Disclosures about Market Risk The company states that its exposure to market risks has not materially changed since its 2024 year-end report - There have been no material changes to the company's market risk exposure since December 31, 2024[106] Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025[107] - No material changes were made to internal controls over financial reporting during the quarter[108] Part II. Other Information This section covers other important disclosures, including risk factors and details on share repurchase programs Risk Factors The company indicates no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - The report refers to the detailed risk factors in the Annual Report on Form 10-K, noting no significant updates[110] Share Repurchases During the quarter, the company repurchased 77,466 shares for employee tax withholding, and the Board approved a new $125.0 million stock repurchase program - A new $125.0 million stock repurchase program was approved by the Board of Directors on February 26, 2025[111] - The company repurchased 77,466 shares in connection with employee tax withholding obligations, which are separate from the publicly announced repurchase program[111]