Bristow results

[nbl]

I see BRS lose over 100m dollars in the last period. Over the year the loss is 195 m. Gorden Bennett

[FloaterNorthWest]

It’s stock price lost a third of its value in a week.

[Same again]

The share price is still twice what it was in January. I bought more yesterday.

[barbados sky]

Looking at the 10K, they are raising money using bonds, selling helicopters and leasing back against the UK SAR contract, then burning the cash in operating losses. The 10K mentions the "New Bristow" but no one apart from the CEO seems to know what it means.

[NRDK]

SAME AGAIN

Do you work for Bristow?

'The share price is still twice what it was in January. I bought more yesterday':D

So you paid twice as much as necessary to up your shareholdings??

You sure you aren't Bristow management... you have the business acumen :ok:

[gulliBell]

My reading was he bought more because the price was down a 1/3rd on what it was a week ago, despite it being double what it was 5 months ago, so he thinks there is some upside to the current price from here. I hope he makes a few quick dollars on the trade. But stuffed if I know how a company can continue to operate when bleeding that much cash. I hope the guys are getting paid all their entitlements, and on time.

[[email protected]]

If their finances are that bad, do we have another Carillion in the making??

[Fareastdriver]

Not really. Being an American company it has Chapter 11 Bankruptcy protection. As CHC demonstrated last year this enables you to wriggle out of catastrophe.

[[email protected]]

I was thinking more along the lines of the UKSAR contract which apparently is the only thing supporting the rest of the business - if that falls over, the taxpayer will have to pick up the bill.

[Same again]

NRDK. I take it you don't invest in stocks and shares? You buy them when they are cheap and sell them when you have made a profit. I bought $20,000 in January when they were at $6. I sold them early last week at $18 - before the fiscal announcement (no brainer). When they dropped from $18 to $12 I bought some more. They were $60 a few years ago - before I owned any.

[RMK]

I had a look at their financials and in brief that doesn’t look good. It has quite a few hidden warning flags and signs of distress (I’m a finance professional; I’m not in your industry).

Of note, they are deferring $190m of Capex into FY2020 and the majority of their debt is PIK with tenor of 5yrs or less. As the weighted average tenor of their debt decreases, the discount at which it is priced provides yields that will attract the high-yield special situation desks – in that scenario, you don’t want to be an equity holder.

Not meaning to turn this into a thread more at home on a Bloomberg and I understand many of you may work for this company or closely know persons who do. However, I’d be wary of dollar cost averaging or “averaging down” if you own this stock.

[Same again]

I didn't say that I think BRS is a good buy or hold. I mostly invest in shares with reliable, stable companies that pay a good dividend. That way I don't have to worry about the price as I reinvest. Bristow are merely a punt that I have made a nice profit with since I first bought them. If you can't afford to lose an investment then don't make it.

[[email protected]]

RMK - when you say PIK, I assume it is this A PIK or payment in kind is a type of high-risk loan (https://en.wikipedia.org/wiki/Loan) or bond (https://en.wikipedia.org/wiki/Bond_(finance)) that allows borrowers to pay interest (https://en.wikipedia.org/wiki/Interest_(finance)) with additional debt rather than cash. This makes it an expensive, high-risk financing instrument because the size of the debt may increase quickly, potentially leaving lenders with big losses if the borrower is unable to pay back the loan. you are talking about..........

[gulliBell]

Presumably BRS Executive bonuses are linked to profitability and share performance, and the execs haven't been paid a bonus in while, yes?

[lowfat]

Presumably BRS Executive bonuses are linked to profitability and share performance, and the execs haven't been paid a bonus in while, yes?
https://www1.salary.com/Jonathan-E-Baliff-Salary-Bonus-Stock-Options-for-BRISTOW-GROUP-INC.html
https://www1.salary.com/Chet-Akiri-Salary-Bonus-Stock-Options-for-BRISTOW-GROUP-INC.html (https://www1.salary.com/Jonathan-E-Baliff-Salary-Bonus-Stock-Options-for-BRISTOW-GROUP-INC.html)

Seems some have. Also appears to be Mystery "other" payments of half their salaries

[RMK]

RMK - when you say PIK, I assume it is this you are talking about..........

Full PIK is rolled-up interest and principal; "cash-pay" is where you make some manner of interest payments, but principal is rolled-up. There are generally blends of these with instruments that PIK-toggle (turn it on/off) or start as PIK for a few years and revert to cash pay. It is seldom this straight forward however.

The overriding idea is that these debt structures are generally used for high-growth businesses; that is not the situation here. Their capital structure is not suited to their situation..

[Hedski]

Presumably BRS Executive bonuses are linked to profitability and share performance, and the execs haven't been paid a bonus in while, yes?

What about the 2m USD bonus to the initial UKSAR BUL before her departure back across the Atlantic for cost savings/social media appearances.....

Crab, it is absolutely a worry that certain financial criteria needed fulfilling to bid on the UKSAR contract yet now the books appear to have been cooked.....

[[email protected]]

Hedski - considering that the financial security and strength of the bidders was a main part of the selection process, it is disappointing that there wasn't much in-depth scrutiny of the underlying business figures.

Although, considering some of the accusations made recently about the Big Four accountancy/auditing firms, it was probably a professional handshake to sign off the accounts.

Not helped by the fact that MoD wanted rid of SAR from their (equally dodgy) books.

RMK - I get the impression that the PIK is more used for take-over funding where only those investors capable of or willing to take much higher levels of risk get involved because the possible interest rates are much higher.

[EESDL]

right then,
buff-up those S-61s, I feel an 'even newer-super-duper SAR' bid in the making

[Same again]

If you are going to lie on the internet you are going to need to try and make it more convincing.

Lie? I bought BRS shares for $6 something on a date that is totally irrelevant and sold them for $18 something last week. A nice profit on BRS shares. I bought some more last week and the share price has increased today above what I bought them for. I will sell them when I feel I have made another profit. That's the truth :-)

[Sir Korsky]

well thanks guys. I bought 50 BRS shares this morning and now I'm down $28.

[747 jock]

Lie? I bought BRS shares for $6 something on a date that is totally irrelevant and sold them for $18 something last week

The date isn't totally irrelevant seeing as it was you that mentioned this date.
If you can't remember the month or year that you supposedly purchased the shares, why should anyone believe you when you say when and how much you sold them for?

[Same again]

I appreciate that I am bucking the trend of the Bristow bashing, doom and gloom majority on this website who would no doubt be gleefully cheering if the company did fail spectacularly. This particular thread began with the usual dire observation and warnings of Bristow's financial position. I have no particular interest in the fortunes of Bristow apart from hoping that the jobs and livelihood of it's staff members are safe. All that I was highlighting was that Bristow, like any company affected by economic factors such as oil price, mismanagement and world events has it's highs and lows.

I had noticed that the share price had fallen dramatically from highs of $80 a few years ago (many apologies that I can't be arsed to find the exact dates and cents) to a low of $6 something recently (look up the exact date and price yourself if you are desperate to know) which to me presented a buying opportunity. I am not a financial adviser and apart from an interest in making money for my pension I wouldn't know a PIK if I tripped over one.

If you think Bristow is a basket case then don't buy the shares. I don't and did and made a tidy profit last week (Tuesday 22nd May at 16:04 to be exact for the anally retentive).