2/3/2022

speaker
Operator
Conference Operator

Thank you, Cody, and good morning, everyone. Welcome to Bristow Group's third quarter fiscal year 2022 earnings call. I'm joined on the phone today with our President and Chief Executive Officer,

speaker
Investor Relations
Bristow Group Investor Relations

Chris Bradshaw, and Senior Vice President, Chief Financial Officer, Jennifer Whalen. Let me remind everyone, during the call, management may make forward-looking statements that are subject to risks and uncertainties that are described in more detail on slide three of our investor presentation. You may access our investor presentation on our website. We will also reference certain non-GAAP financial measures, such as EBITDA and free cash flow. A reconciliation of such measures to GAAP is included in the earnings release and our investor presentation. I'll now turn the call over to our president and CEO, Chris.

speaker
Chris Bradshaw
President and Chief Executive Officer

Thank you, Crystal, and welcome to the call, everyone. As always, I will begin our prepared remarks with a note on safety, which is Bristow's most important core value and our highest operational priority. Over the last two years, Bristow team members working on five continents have dealt with the challenges of managing through the global COVID-19 pandemic. These men and women have adopted new personal protective equipment, implemented additional operating procedures, and followed enhanced health and safety protocols, all while dealing with the pandemic effects and stresses in their own personal lives. They have done this with a dedicated focus on getting everyone home safe and healthy every day and delivering reliable and efficient service to our valued customers. I want to commend and thank all of our Bristow team members around the world for their continued dedication to our mission and Bristow's target zero safety culture. Thank you. The company has also made significant integration progress following the merger of Aira and Bristow in June 2020. As of December 31st, Synergy projects representing approximately $47 million of annual life savings have been completed, which means that we have already captured 94% of the target Synergy projects identified with the merger. As outlined in yesterday's press release, Bristow's disappointing financial results in Q3 FY22 were due to a number of factors. Between foreign currency losses and equity losses from unconsolidated subsidiaries, the sequential quarter EBITDA experienced a negative variance of approximately $5 million from below-the-line non-cash items. The timing of major repairs and aircraft lease return costs contributed another $5 million to this negative sequential quarter variance. In addition, we incur extraordinary costs related to the temporary relocation of operations in the Gulf of Mexico following damage caused by Hurricane Ida, which slammed into the Louisiana coastline on August 29th. These hurricane-related costs totaled over $3 million in Q3 Thanks to a lot of hard work from our Bristow U.S. team, we returned to full operations out of our super base and home of Louisiana in mid-January. So, while there will be some adverse effect on Q4 financial results, this impact was limited to the first couple weeks of the new calendar year. With that, I will hand it over to our CFO for a more detailed review of Q3 financial results. Jennifer?

Disclaimer

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Investor presentation