BRS stock crashing

[dingo9]

What’s going on with Bristows share price!? Less than $5 per share. Is this the beginning of the end??

[jimjim1]

https://uk.finance.yahoo.com/quote/BRS/
5 Years shown.
The picture is quite confusing - the chart zero is not at the bottom of the chart, I guess they allow space for the traded volume but I think it could be clearer. I have rather crudely indicated the y-axis (price) zero. Price in USD.

https://cimg7.ibsrv.net/gimg/pprune.org-vbulletin/718x273/bristow2_5dc0b50e3349d953018f92bbadb9bfb300f71f4f.png

[SirSokky]

Black Friday?? 25% Off...... doesn’t bode well!?

[LesPretend]

It’s as well the NYSE is just about to close as the stock can’t take much more of a battering.

[LesPretend]

Down another 10% so far today.

What is going on?

[LesPretend]

I keep an eye on the SP out of interest and over the last few weeks you can bet your last dollar (!!) that on a Friday the stock will go down.

Think it sunk about 10% last Friday and another 6% again today.

Sitting at $3.17.

Im no expert and interested to hear other views, but surely it can’t go on falling like that? Wouldn’t that SP now make it an attractive takeover prospect with or without Columbia?

[RMK]

Having a look at BRS, this company should be taken private. Trying to discern some meaning or insight from the stock price (at this juncture) is futile. It trades on technicals not fundamentals; in brief, it’s become a “playtoy” for professional traders and without meaningful movement in EPS will remain so.

Industry professionals are absent here; there’s barely more than 1% insider holdings of the stock. The rest is institutions and hedge funds (mostly institutions) who will wash in/out of this stock via computer generated signals/trades.

Debt holders are the effective owners of a company; equity holders are just along for the ride.


https://cimg0.ibsrv.net/gimg/pprune.org-vbulletin/1877x745/brs_chart_29118854e578726772f8b44a3b57770d586aba45.jpg

Converted to a candlestick chart with 50day & 200day moving averages

[LesPretend]

It’s in freefall again today, sitting at $2.74 nothing much left at this rate?

[krypton_john]

Wow, market cap now down to $100M? The book value of aircraft and equipment is $2.5B, debt is under $2B and has been reduced over the last 6 months, main component of financial losses is H225 impairment so at least that's now been dealt with.

[dingo9]

Is it possible for a company to deliberately de-value the stock? I see below that the upcoming acquisition of Columbia is part funded by shares as a quantity rather than value.
“The transaction will be funded through a combination of debt, convertible debt, newly issued common shares to the Lematta family and existing Columbia management and cash from Bristow’s balance sheet. Bristow has secured fully-committed debt and convertible debt financing for the transaction. The Lematta family and existing Columbia management, which is committed to leading the Columbia operating subsidiary, will roll over $77 million of their current ownership (including ownership in certain equity awards) into Bristow common stock, up to a maximum of approximately 7.1 million shares. Bristow remains focused on deleveraging and maintaining a strong liquidity position”

[industry insider]

Maybe the flight attendant idea won't fix the problem then?

[SASless]

Certainly the additional advertising of assets could lead to an uptick in revenue prospects.

[LesPretend]

So about 80% of the value of the company wiped out in the space of a month or so, down another 9% today, the slide shows no sign of halting.

How long can that go on for?

[SASless]

Till the Stock hits ZERO.

[peterperfect]

Perhaps some pin-striped smart-arses will come in, buy it and sell the land to a supermarket chain.....

[helicrazi]

Whats the reason for the drop?

[etudiant]

RMK tagged it, the debt holders are in control. The implication is that some restructuring is in the works.
Old Wall Street adage; 'Never catch a falling knife'.

[lowfat]

Its all alright Its up 10% big pats on the back all round.

Up from $1.94 to 2.18

I think we turned a corner there

Good old Jonathan Balif can can take his multi million golden handshake and regalie the Poor staff at Columbia on how He saved Bristows....

I think it might make a good movie with Tom Hanks playing our Hero

"Hero to Target Zero"

[SASless]

I watched a Timber Products firm I worked for do this up and down stock dance....and considered investing in it when it was down...down...way...way down....and by waiting sometimes just a couple of days doubling my money or more even.

The risk is simple...it then becomes a wager just like Roulette where you put it all on the table....and if it absolutely goes into the toilet....you lose your stake completely.

The Stock Market is legalized gambling where you can use complex calculating algorithms to aid your betting.....but in the end....it is still just a gamble.

Do you feel lucky?

[industry insider]

Looks like its going back up. $3.36. Now PHI is down. I wasn't feeling lucky gambling on BRS stock. But its down enough to delay the Columbia deal. If I was the family, I would want cash, not BRS stock.

[nomorehelosforme]

Columbia Helicopters confirm they are going ahead with sale despite Bristows stock price plunging.

https://www.oregonlive.com/business/2019/01/columbia-helicopters-says-it-will-go-ahead-with-sale-despite-buyers-plunging-stock.htmlBy Mike Rogoway The Oregonian/OregonLive (http://connect.oregonlive.com/staff/MikeRogoway/posts.html)


Oregon-based Columbia Helicopters says it still wants to sell itself to a Texas company, even though the buyer’s share price has plunged by more than two-thirds since announcing the $559 million deal (https://www.oregonlive.com/business/2018/11/columbia-helicopters-says-no-oregon-cuts-following-its-560-million-sale.html).

Bristow Group’s investors began unloading shares almost as soon as the company announced its plan to buy privately held Columbia last November, driving Bristow’s stock down from $10.04 to just $3.16.

Bristow’s deteriorating position on Wall Street has produced calls for the Texas company to scuttle the deal. But Columbia Helicopters insists it intends to sell.

“There’s a lot of talk, obviously, but the facts are the facts. There’s an agreement,” said Santiago Crespo, Columbia’s vice president of business development and strategy.

Most of the purchase price, $492 million, is to be paid in cash, much of which Bristow intends to borrow. So the precipitous decline in Bristow stock has only diminished what Columbia’s owners would receive by $43 million, about 8 percent.

It has devastated Bristow, though. The deal currently values Columbia at $516 million, 4.5 times Bristow’s diminished market capitalization.

[SASless]

So in order to pay off Debt.....you really think Bristow is going to continue operations Columbia in the hopes that is its own Salvation....or will they try to flog off the bits and pieces to other Buyers and hope to generate some cash flow to offset other losses in the traditional Bristow operations?

[gulliBell]

I'm bewildered that any financial institution would be game to lend $492 million to any company in such circumstances.

[LesPretend]

After a bit of stabilisation the SP seems to be on the slide again.

The earnings call next month is going to be VERY interesting, it’s also gone very silent over the new CEO perhaps they will announce it then.

Surely the Columbia deal will be off? I wonder if that was the case whether we would see a massive spike in the SP?

[JulieAndrews]

So who would buy Bristows now and for how much? One would have thought diversifying into Utility market with Columbia purchase would have been seen as good news.....

[SASless]

If I hit the Lottery this week I will take some of the proceed and buy it.

Then I would buy a bunch of cardboard boxes that easily fit into two outstretched hands....and clean out all the useless management and get the business back to working like a real helicopter company.

First to go would be the HR Department....every last one of them.....and get back to a small Admin section.

Closely following them would be the drones that have created paperwork empires for themselves.

It would look like a Bowling Alley with all the Heads rolling about the place.

That wee callow fellow from the Shetland Islands would have a set of yellow footprints to stand on in front of my Desk all day long.

Instead of a Bentley parked out front....it would be a Diesel 4WD Pickup truck.

[Evil Twin]

If I hit the Lottery this week I will take some of the proceed and buy it.

Then I would buy a bunch of cardboard boxes that easily fit into two outstretched hands....and clean out all the useless management and get the business back to working like a real helicopter company.

First to go would be the HR Department....every last one of them.....and get back to a small Admin section.

Closely following them would be the drones that have created paperwork empires for themselves.

It would look like a Bowling Alley with all the Heads rolling about the place.

That wee callow fellow from the Shetland Islands would have a set of yellow footprints to stand on in front of my Desk all day long.

Instead of a Bentley parked out front....it would be a Diesel 4WD Pickup truck.

Nice, I'd vote for you. I'd get the HR department to sack all the dead wood then sack each other. You could actually webcast it on pay-per-view and make a few bucks too as plenty would want to watch. ;-)

[chopper2004]

Laughingly a friend whose a businessman albe8t in the computing industry ( I hate the word IT) and running several businesses, cynically says HR stands for Hopeless Resources and states it’s just creating work for the sake of it.

in saying that a good friend of mine has a title of HR in a small aviation company and she does a helluva lot more than just Hr..( tiny minuscule fraction) she gets her hands dirty with moving parts, cleaning hangar , , Flight ops you name it ....

So what is happening with Columbia take over now? Still in a state of equilibrium.

Whats happened with state of the former Academy / Adventures hope someone’s got hold and taken care of it.



cheers

[LesPretend]

If I hit the Lottery this week I will take some of the proceed and buy it.

Then I would buy a bunch of cardboard boxes that easily fit into two outstretched hands....and clean out all the useless management and get the business back to working like a real helicopter company.

First to go would be the HR Department....every last one of them.....and get back to a small Admin section.

Closely following them would be the drones that have created paperwork empires for themselves.

It would look like a Bowling Alley with all the Heads rolling about the place.

That wee callow fellow from the Shetland Islands would have a set of yellow footprints to stand on in front of my Desk all day long.

Instead of a Bentley parked out front....it would be a Diesel 4WD Pickup truck.

Unfortunately BRS are not alone in having an HR department that I’m guessing seemingly expands as the work dwindles. That’s a common theme repeated over O&G companies at the moment.

As an outsider looking in not specifically aimed at BRS but the obsession in the sector to remove the unfashionable roles which did most of the work behind the scenes particularly at the outstations to me seems a massive error in judgement. Good people were lost as bean counters in far away corporate HQs had their red pens out. It just doesn’t seem high level enough for management throughout the sector to get out there and understand how things actually work.

I heard a story recently about someone who was taken into a redundancy meeting to be told by her manager that he didn’t know what she actually did! A call to the client would have cleared that up for him.

[Hedski]

HR depts. slight thread creep but what an absolute bunch of self serving scum. Arrogance beyond belief. Talking down at crew/engineers as if they were minions, Sorry but who’s got qualifications and skills important to the core business beyond being a rubbish admin? In BRS case it has reached crisis levels where HR take it upon themselves to decide they don’t think someone deserves allowances due per staff handbooks etc. Or those who can’t even locate union agreements the company are bound by. The list goes on. HR and in BRS case UK management with their culture of shafting former colleagues to line their own pockets with bonuses. DRAIN THE SWAMP!!

[LesPretend]

So the earnings call has been put back till next week.

I wonder if it’s to incorporate some good news.

Rumours of a big contract win in the UK

[helicrazi]

So the earnings call has been put back till next week.

I wonder if it’s to incorporate some good news.

Rumours of a big contract win in the UK

Is that the BP?

[Non-Driver]

Not looking good: 10-Q filing late due to Controls issue, Columbia acquisition off with $20M paid to them, Q revenues well down YOY and cash running out....watch that share price sink tomorrow.

Bristow Investors ? News Releases ? BRS ? bristowgroup.com (http://ir.bristowgroup.com/phoenix.zhtml?c=91226&p=irol-news&nyo=0)

Sad to see, wonder what HM Government will do to protect UKSAR ?

[LesPretend]

It’s not the biggest issue but allowing the fixed wing operators to haemorrhage cash the way they have and allow them to continue has put a lot of rotary jobs at risk as this latest set of accounts prove. It’s exceptionally reckless.

Eastern appear to be loosing about $50k a day?

No one else would persist in throwing good money after bad propping up Airlines (no matter how much they are needed for contracts) particularly in the U.K. which in this climate have no possibility of breaking even. Time to ditch what’s left, keep what’s needed and reign in the pointless loss making scheduled work.

Drastic action looks like it needs to happen ASAP.

[gulliBell]

...watch that share price sink tomorrow.


Yeah....this should spook investors and sink the share price real good.

"...the Company's internal control over financial reporting was ineffective at March 31, 2018 and the reporting periods thereafter. As such, both management's assessment and the report of KPMG on internal control over financial reporting as of March 31, 2018 should no longer be relied upon."

And a $20M donation to Columbia, and $14M compensation paid to Sikorsky for cancelling an aircraft purchase contract is the icing on the cake.

[Nescafe]

And I understand, a few more $million to be paid out in redundancy to Australian pilots in the coming weeks.

[barbados sky]

You couldn't make this stuff up:

The entire Bristow family is grateful for Jonathan’s leadership and service over the past nine years, and wishes him
all the best.

"Leadership" errr I don't think so. He has run BRS like a banker.

[[email protected]]

Sad to see, wonder what HM Government will do to protect UKSAR ? The only thing it can - throw money at it!

The financial security of the contractor was supposed to be a very big part of the selection process.

The military no longer have the capability nor the training system to generate that capability - who could have seen that coming?

[rrekn]

Here's the latest:

https://www.ainonline.com/aviation-news/general-aviation/2019-02-11/bristow-hints-bankruptcy-drops-columbia-deal

Doesn't look good...

[dingo9]

Mr. Baliff will be entitled to: (a) severance of $1,442,000, equal to two times Mr. Baliff’s base salary;

he also has options to purchase a lot of stock..... I imagine he probably won’t bother with that!.

Bristow strategy has been to wait for the smaller operators to go under and then mop up the trade... how arrogant.

[gulliBell]

I hope all the Bristow pilots made redundant get a severance of two times their base salary.

Difficult to comprehend how the top guy in a company can get paid so much money for losing so much more money.

[SASless]

Columbia got a nice severance package.....20 Million Dollars!

Just a bit less than one Month's Gross Revenue from its operations last year

[Non-Driver]

Under $2 at opening, barely $70M Market Cap...

https://cimg9.ibsrv.net/gimg/pprune.org-vbulletin/930x497/screenshot_2019_02_12_at_14_35_57_dd56f98fa82fe061864db61fe8 6602f45bd8a47a.png

[Milo C]

Can someone translate into plain English?

[helicrazi]

Yes they cooked the books and now are up sheet creek minus a paddle :ugh:

[Evil Twin]

Easy.

Translation:- "We are trying everything we possibly can to make it seem that the company is viable not completely doomed as it would appear. We are also trying to stave off the share price disappearing altogether while we pay a MASSIVE undeserved severance package to the outgoing CEO that has done NOTHING to save the operation."

If Baliff had any decency he would forego his payout and leave quietly but, he won't.

[Hot_LZ]

^^ hear hear. Not $1 of profit under his tenure.

LZ

[gulliBell]

SASless at post #27 gets my vote for having a crack at running the company. He'd do more constructive things in the first 9 minutes than the previous incumbent did in 9 years. If not $1 profit in 9 years is true would be an utter disgrace and the whole Board should hang their heads in shame for lack of prudent oversight.

[SASless]

It makes. you wonder if some genuinely smart guy with serious money will come along and start buying up some of these large companies that are in severe distress and cobble together a single operation that can begin to compete effectively and run profitably.

[3D CAM]

gullibell,
He would get my vote as well!!

[Non-Driver]

Is it not about time that Helicopter operators start kicking back against these highly profitable oil giants?

In the downturn the contracts were cut so fine that they were barely profitable, if at all. Now companies like Shell are posting 36% year on year profit increases to an astonishing $21bn, isn’t it about time we all worked together to force these costs back up?

CHC had to file, Bristows look like they are near it. 2 of the lead pack were/are in trouble due to these cuts. Surely it’s time to fight back? They have to take some responsibility in the demise of Helicopter operation profitability.

Does anyone know how profitable contracts are in 2019 in comparison to how they were back in 2015/16?



Unfortunately you're up against mega corporations who get their own way. Every time we went down to a duopoly on the North Sea, the oil majors went and facilitated someone to come in (eg Bond in the early 2000's). There's always someone willing to do it for a slimmer margin when they see the incumbents making decent profits. In the end everyone loses (apart from the oilco). BRS suffered a further disadvantage when CHC went into Ch11. Time for them to do the same probably. Rinse/repeat.

[Evil Twin]

Unfortunately you're up against mega corporations who get their own way. Every time we went down to a duopoly on the North Sea, the oil majors went and facilitated someone to come in (eg Bond in the early 2000's). There's always someone willing to do it for a slimmer margin when they see the incumbents making decent profits. In the end everyone loses (apart from the oilco). BRS suffered a further disadvantage when CHC went into Ch11. Time for them to do the same probably. Rinse/repeat.
I thought they tried to file CH11 shortly after CHC but were turned down.

[dingo9]

Correct . 30 days less than a dollar and de listed from NYSE. Management might just pull the plug before 30 days though.

[Non-Driver]

https://uk.finance.yahoo.com/news/investor-alert-law-offices-howard-160600020.html

[SASless]

Helicopter Operators stand together.....surely you jest!

They cut their rates in a flash in order to keep their machines flying....even at a loss at times.

Rather than just walk away from a contract that does not allow for a proper profit.....they all race to the bottom.

[industry insider]

Mitchaa wrote:

Does anyone know how profitable contracts are in 2019 in comparison to how they were back in 2015/16?

New bid contracts in the recent cut throat era, probably not so profitable. Longer term contracts have built in escalations which protect the helicopter operator against general inflationary increases, OEM hourly price rises and even price rises caused by pilot and engineer pay rises under union contracts. If the bid price was right to begin with, they should make reasonable money. In 2014, helicopters were in demand and contract prices were peak. If a helicopter operator can't make money under older long term contracts then they either didn't bid the right price or don't manage their business very well.

There is a rule of how many non pilots and engineers you can have hanging off the skids before your helicopter won't get airborne. Guess what, $ million dollar salaries even for CEOs are very heavy. Even if its managed properly, the helicopter business doesn't enough money to have layers of "management" on multi million $ salaries.

[minigundiplomat]

5 will get you 10 Bristows won’t enter Chapter 11. The first hearing is convincing the court appointee that the company has sufficient liquidity to see the company through a restructuring process - I suspect Bristows Are well past that milestone and are heading for Chapter 7 rather than Chapter 11.

Additionally, Chapter 11 paid off for CHC as they had a high proportion of idle leased fleet assets; Bristows have a different fleet profile and won’t reap the same benefits of court appointed restructuring.

They either need to raise a significant amount of cash very quickly, or enter Chapter 7 bankruptcy. Fingers crossed it’s the former, but I can’t really see it.

[industry insider]

https://cimg5.ibsrv.net/gimg/pprune.org-vbulletin/2000x275/screen_shot_2019_02_14_at_12_37_53_pm_539f332e101a88d33b82b8 db734b9971b58de022.png
Minigun

I would suggest that BRS liquidity while down on the previous reporting period is down, $236mil is still quite a lot of cash, enough for CH 11. BRS has sold and leased back quite a lot of aircraft to generate cash, but as you can see above, they burned through $60m in 6 months of 2018 and $83m in the last quarter alone. That indicates to me that they are burning through cash to sustain operations and therefore making an operating loss. Making a long term operating loss is death to an aviation company.

[minigundiplomat]

https://cimg5.ibsrv.net/gimg/pprune.org-vbulletin/2000x275/screen_shot_2019_02_14_at_12_37_53_pm_539f332e101a88d33b82b8 db734b9971b58de022.png
Minigun

I would suggest that BRS liquidity while down on the previous reporting period is down, $236mil is still quite a lot of cash, enough for CH 11. BRS has sold and leased back quite a lot of aircraft to generate cash, but as you can see above, they burned through $60m in 6 months of 2018 and $83m in the last quarter alone. That indicates to me that they are burning through cash to sustain operations and therefore making an operating loss. Making a long term operating loss is death to an aviation company.

With $20m to be paid to Columbia, they must be well South of $200m at this moment, but otherwise agree.

[nowherespecial]

On cash alone they have well under 8 months. I suspect the creditors will have taken a view on recovering their money before then. The lawsuits will always follow but what looks to be deliberately misleading financial statements mean that someone should go to jail at least. Not that will be much succor for those about to lose their jobs though. Chapter 7 is the most likely option now because (as MGD noted), the options to CHC with a leased fleet of about 75% simply is not available to BRS who own a much higher %. The creditors will simply step in, padlock the doors and take a share of the aircraft in accordance with how much BRS owe them.
The other operators must be wetting themselves with excitement about poaching contracts from them. CHC could buy the BRS GOM operation, NHV the Norway operation, BMCS the UK operation etc.

[finalchecksplease]

New bid contracts in the recent cut throat era, probably not so profitable. Longer term contracts have built in escalations which protect the helicopter operator against general inflationary increases, OEM hourly price rises and even price rises caused by pilot and engineer pay rises under union contracts. If the bid price was right to begin with, they should make reasonable money. In 2014, helicopters were in demand and contract prices were peak. If a helicopter operator can't make money under older long term contracts then they either didn't bid the right price or don't manage their business very well.

There is a rule of how many non pilots and engineers you can have hanging off the skids before your helicopter won't get airborne. Guess what, $ million dollar salaries even for CEOs are very heavy. Even if its managed properly, the helicopter business doesn't enough money to have layers of "management" on multi million $ salaries.

How many of those "peak" contracts are still being honoured by the oil companies or did most of them called in their 90 day “get out” clauses as soon as the downturn hit and re-tendered to the lowest bidder because bottom line is king, not safety or anything else they preach it to be?

I agree the big helicopter operators have too many management layers adding to the operating costs without offering much in return, making it hard for them to compete with the leaner / meaner operators they used to be like as well.

Sadly I feel like it will be curtains for Bristow, can't see them recovering from this because of the lack of leadership & vision, hope I'm wrong.

[oleary]

BRS has sold and leased back quite a lot of aircraft to generate cash, .....

Selling the furniture to pay the rent - that might just work. 🤔

[industry insider]

How many of those "peak" contracts are still being honoured by the oil companies or did most of them called in their 90 day “get out” clauses as soon as the downturn hit and re-tendered to the lowest bidder because bottom line is king, not safety or anything else they preach it to be?

Certainly the ones I know about were honoured for 5 years with escalations. But one is the subject of a tender as a result of natural expiry date and the other one is finishing due to reduced activity and consolidation down to one helicopter operator.

[LesPretend]

I suspect Bristows will have similar protection measures in place so that regionalised entities would survive and it would be the parent company that would take the brunt?

That appears to be the company line from U.K. management today in the round robin that some stakeholders got verbally today.

Other ‘highlights’ are of course it’s business as usual, plenty of money in the bank, engines were in the wrong place which meant lenders were not happy (?), a plan to move debt around on the balance sheet and although not quite saying it, suggesting that the accounts issue might not be as bad as it sounds.

I guess it might keep some happy for a while.

[212man]

How many of those "peak" contracts are still being honoured by the oil companies or did most of them called in their 90 day “get out” clauses as soon as the downturn hit and re-tendered to the lowest bidder because bottom line is king, not safety or anything else they preach it to be?

Can you give some examples? Apart from Dancopter a few years ago. I know Staoil pulled out early in Tanzania, but that was based on the drilling campaign ceasing early and nothing to do with re-tendering.

[SASless]

When the Titanic hit that iceberg and started taking on water....the passengers and crew were told the ship was unsinkable as I recall.

When you hemorrhage money the way Bristow is...and no team of Surgeons are able to control it....then this shall not end well.

The Oil business....and Bristow who has its major focus on that segment of the industry....when the Oil Companies catch a cold....Operators like Bristow catch Pneumonia.

I recall a famous comment from a very senior Bristow Manager...."We make money operating helicopters....not selling them!"....when I asked why we had one of the world's oldest fleet of aircraft.

The look I got when I suggested the money from either method looks the same when it is in the Cash Drawer.....indicated I was not apt to be moving up that greasy pole of management.

That applied to many such ideas of how to diversify the Company's Operations so as not to be so reliant upon a single sector of business.

[industry insider]

I recall a famous comment from a very senior Bristow Manager...."We make money operating helicopters....not selling them!"....when I asked why we had one of the world's oldest fleet of aircraft.

He was pretty well right SAS, if you don't make an operating profit, you will not survive. I have known a few really small operators who have used depreciation schedules, accrued a maintenance reserve but sold before the maintenance was due, made some FX gains and sold aircraft "making money" but then they have to be replaced.

BRS is partially diversified with UK SAR which is a huge contract at decent rates based on press releases and the 10Q and 10K filings ($220m per year) Compared to other operators, UK SAR puts BRS in a theoretically good position and they should be able to make money. Sure, others are hurting with the oil downturn but without the cushion of UK SAR apparently not hurting quite as badly as BRS.

[MamaPut]

Has Bristow ever posted a profit since Jonathan Bailiff became CEO? All he seems to be any good at is constant (ineffective) reorganisation which add more and more senior executives on enormous salaries which are obviously totally undeserved in view of the way the company is bleeding money. Yet, despite this Bailiff is leaving with a huge pay off. Shame on the man!

[[email protected]]

But that rather presumes you can extract money from the UKSAR contract to prop up the mother company.

ISTR the idea behind the UKSAR project was for it to be a loss leader to prove the concept that could then be sold on to other countries.

[nowherespecial]

To answer Mitchaa's question above about structuring it's pretty complex and all to do with tax, EU rules and Aviation regulatory oversight.

Both CHC and BRS are US listed firms with largely US ownership. This means to operate in Europe they have to have a majority EU owner which means partnering in some shape or form with an EU owned and controlled entity. CHC's partner (from memory) is the family office of a major high street clothing chain owner for example. For the record, this is extremely normal. Therefore if and when the minority shareholder goes bust, in theory the major shareholder becomes the only shareholder (for the sake of clarity, let's call them S1 for use below). That's fine at the company ownership level but the question then becomes can S1 now exercise control of an aviation business without the assistance of BRS in this case who provided the operational oversight, hiring of crew, aircraft, PBH contracts, maintenance etc? The answer is probably not, at least at first.

It gets worse of course. The aircraft for the BRS UK entity will likely be on a bareboat charter from another entity within the BRS group of companies. This means the aircraft they are flying if the parent of BRS goes bust will likely cease to be legally available to S1 as their relationship ceased to exist the moment they filed for Ch 7. S1 will therefore have no legal control potentially of the aircraft.

Now, if the aircraft are owned it's very hard to see them taking off the day after filing for Ch 7 or the creditors pulling the plug. It's come and get the money time. Some of the aircraft might be financed by a small consortium of banks so they are secured but not against 1 owner so decision making becomes very difficult very fast. If they are leased, clearly it's in everyone's best interest to get them back off the ground again and making money but the leases need to be re-written potentially.

Now it's time to add the regulator into the picture. One of the founding principles of getting an AOC is that you have a business case to have one. Clearly BRS in it's current guise do not so the regulator could withdraw the AOC, or at least suspend it until the mess descibed above has been tidied up.

It's not beyond anyone that it gets fixed but it's not as simple as 'the UK entity is fine' owing to how the businesses are structured globally these days. Not saying it will happen for sure, but potentially it's a mess which will take weeks to fix.

NWS

and 212man - Shell with CHC 2016.... :)

[finalchecksplease]

Can you give some examples? Apart from Dancopter a few years ago. I know Staoil pulled out early in Tanzania, but that was based on the drilling campaign ceasing early and nothing to do with re-tendering.

I can't give any other specific examples but we were told by management that most of our contracts had to be re-negotiated / re-tendered after the downturn and we only managed to keep them by lowering our rates significantly. Of course it wouldn't be the first time we were lied to by our management, that’s why I asked the question. Industry Insider says that the contracts he knows of were honoured so more than likely we weren’t told the (complete) truth.

[nowherespecial]

Oil Co - Drop your price
RW - No we have a valid and very nice contract
Oil Co - Ok you are hereby served 90 days notice as per that contract
RW - Ok if we take our pants down can we get an extension at a lower rate
Oil Co - Maybe.

And repeat.

It's business, no one should take it personally if your company is being wildly overpaid for a service your customers can go out and procure for a lot less today with very little blow back, why not do it? Sucks to be us in the bad times but in the good times it's great.

It gets very interesting though as the thought continues to develop when you think about who BRS's customers are and what they lose by allowing BRS to disappear. Is it possible BRS could be saved by a client whom they are majorly exposed to? Chevron? Conoco? Exxon? They all have the money and have been known to dabble in aviation before. Unlikely but for spending $60m-100m on stock and buying the debt at probably 5-20c on the $ at the moment, it could happen.

[nowherespecial]

Glad to be of help :E

[industry insider]

Oil Co - Drop your price
RW - No we have a valid and very nice contract
Oil Co - Ok you are hereby served 90 days notice as per that contract
RW - Ok if we take our pants down can we get an extension at a lower rate
Oil Co - Maybe.

It doesn’t a work as simply as that. Negotiations during a tender phase can be tough. But once the contract is signed it’s actually strong for both parties and normally prevails. The rules around asking for a discount are very complex. To threaten termination to get a discount would be unheard of in any company with which I have had an association.

I have seen price escalations in the downturn because they were in the contract, I have seen contractors, not just aviation, hold the line on prices when under a contract with no threats or bullying. Do a good job as per contract and most importantly know the customer and what they want.

[nowherespecial]

II, I respect your experiences but after a good number of years in the hummingbird's commercial department I assure you that is most definitely not mine. I wish it was. Depends how good your lawyers/ contract drafters are I guess. And how desperate your competition are.

Sadly in this market almost all we have had is desperation and the race for revenue.

[LesPretend]

​​​​​Shares up sharply this morning already, all back to normal (!) so looks like Jonathan has earned that big fat termination after all.

Ahh

[nowherespecial]

Big volume early is people covering short positions. The volume is now lower again and the gains are slipping back. Similar pattern to the last few days.

[212man]

and 212man - Shell with CHC 2016.... https://www.pprune.org/rotorheads/images/smilies/smile.gif

but that was as, as you know, because the drilling campaign they were supporting was cancelled, not to re-defender fo another operator.

[Non-Driver]

It doesn’t a work as simply as that. Negotiations during a tender phase can be tough. But once the contract is signed it’s actually strong for both parties and normally prevails. The rules around asking for a discount are very complex. To threaten termination to get a discount would be unheard of in any company with which I have had an association.

I have seen price escalations in the downturn because they were in the contract, I have seen contractors, not just aviation, hold the line on prices when under a contract with no threats or bullying. Do a good job as per contract and most importantly know the customer and what they want.
When I was there in the first decade of this century, exactly that happened in a downturn. Major oilco said "we're tearing up the contract, what are you going to do about it - sue us ?"

[SASless]

16% jump.....astounding rebound....all the way up to $1.39.


https://www.thestreet.com/quote/BRS.html

[gulliBell]

Perhaps those who bought @ $18.91 in the past year are just lowering their total holding average purchase price before the whole show jumps off the precipice.

[industry insider]

When I was there in the first decade of this century, exactly that happened in a downturn. Major oilco said "we're tearing up the contract, what are you going to do about it - sue us ?"

All I can say is that it’s very unethical to act like that and although I have been in some very uncomfortable meetings on both sides of the business, when in the oil company side, remedies due to any service issues had to be applied strictly contractually. I would have been fired for threatening a contractor.

I have also seen helicopter companies say “no” to something commercially disadvantageous. I accept though that the relationship can appear unequal at times.

[SASless]

I said it earlier....when a Stock Price hits these lows and the ups and downs are as dramatic as they are.....a person with some money and some courage can make some money.

A one day 16% gain is nothing to sneeze at!

Timing is of the essence and it is legalized gambling....but you can make some money if you get it right.

[nbl]

I count 14 lawsuits filed against Bristow in 'Class Action' in the US this last week.

[SASless]

Amazing......do a search using these words....."Bristow Helicopters, Class Action Law suits filed".....and look at the Laundry List that shows up!

The CEO got a Two Year Basic Salary Going Away Bonus????

I was at the wrong end the Management Totem Pole for sure!

[212man]

Crucifying BHL with legal fees and payouts is hardly going to help them survive

[finalchecksplease]

Crucifying BHL with legal fees and payouts is hardly going to help them survive

True but don't think those lawyers care

[SASless]

It is not about BHL's survival.....it is about going after conduct that harmed Investors.

Some folks have walked off with lots of money and apparently did not do their job properly.....and conducting one's fiduciary duties in less than an legal manner should not be condoned.

If it means Bristow ceases operation then those harmed along with the Investors know who to blame.

[212man]

Actually, on re-reading some of the suits, it is clearer that it is the individuals - CEO and CFO - and not the company that are being sued.

[Phone Wind]

I guess the CEO and CFO are going to find out the true meaning of accountable manager now?

[nowherespecial]

They just missed their self imposed date to report their financials correctly. Ouch.

[nbl]

They just missed their self imposed date to report their financials correctly. Ouch.

Why do you say that. Can they post at 10 o'clock.? I have no idea how the US works.

[nbl]

:)They just missed their self imposed date to report their financials correctly. Ouch.

Ah I see - they have given an 8-K today but not a 10-k. I have read the 8-k - can anyone explain it in English.:)

[nowherespecial]

They just tweeted about it. Their last communication was that it would be filed by no later than today. They just issued a statement it will not be filed until they are ready (obviously) but it doesn't look great if you are late reporting a quarter (and 9 months in fact) which ended 7 weeks ago.

[rotor-rooter]

The determination of the existence of a control deficiency related to these matters, which has been classified as a material weakness in the Company’s
internal controls over financial reporting, and the need to assess possible non-compliance with all non-financial covenants commenced when the
Company’s senior management became aware that certain pledged and leased helicopter engines were not matched to specific pledged or leased
helicopter airframes or returned to such airframes within specified periods, as is required under certain of the secured financing and helicopter lease
agreements. The removal and replacement of engines and components from helicopters is part of the Company’s normal ongoing maintenance
activities; however, since certain of those helicopter engines and airframes are pledged to lenders or leased from lessors, the removal of a pledged or
leased engine from a pledged or leased airframe can create issues of non-compliance with certain of the secured financing and helicopter lease
agreements. All issues related to this matter were cured prior to December31,2018 for all but nine helicopter engines (relating to three agreements)
where the pledged or leased engines were not returned to the pledged or leased airframes within specified periods due to delays with certain of the
Company’s maintenance service providers. The Company has obtained waivers of such non-compliance under the applicable agreements related to
such helicopter engines. The issues detected, which have all been cured or waived, involve a small subset of the approximately 385 helicopter engines
that are subject to the Company’s secured financings or helicopter leases.
1

[nowherespecial]

Bristow Investors ? RSS Content ? BRS ? bristowgroup.com (http://ir.bristowgroup.com/phoenix.zhtml?c=91226&p=RssLanding&cat=news&id=2387827)

Some of this is a little, er, alarming. Read the whole thing.

[industry insider]

It’s all much more complex when everything is sold, mortgaged and leased back to produce cash to burn in operating losses.

[Pittsextra]

How much do you think the EC225 adventure hurt the company?

[helicrazi]

How much do you think the EC225 adventure hurt the company?

thought they had a nice settlement from Airbus?

[Same again]

"EC225 adventure" was hardly an adventure. Bristow were not the only operator who thought that the 225 was the future. It was an operators dream and were it not for the screw-up Airbus made of the whole thing it might still be. By the way the BRS crashing stock just crashed upwards by 20%.

[[email protected]]

It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Oh dear - I think that means they have tried to polish the turd and roll it in glitter but found it still smells!

[rotor-rooter]

https://www.ainonline.com/aviation-news/general-aviation/2019-02-19/bristows-delayed-financials-tied-helicopter-engines

I assume there must be a very unhappy leasing organization at the end of this action. After the CHC Chapter 11 filing forced lessors to accept equipment returned with whatever was installed in them at the time, they obviously don't want to go through that again?

I can't imagine the Lessor or Bristow resuming a good relationship after this action, but it is an essential part of a Lease Termination, or a betterment/detriment settlement. Very messy and punitive to your (former?) Customer in this instance.

[Pittsextra]

"EC225 adventure" was hardly an adventure. Bristow were not the only operator who thought that the 225 was the future. It was an operators dream and were it not for the screw-up Airbus made of the whole thing it might still be. By the way the BRS crashing stock just crashed upwards by 20%.
So ill take that as a yes. To what degree would anyone believe the model has led to the downfall of the company?

[industry insider]

Unlike CHC, BRS purchased its 225s and other types using BRILOG Leasing (100% owned Cayman Island subsidiary) to lease to its operating entities. Result, high costs to clients, failure to meet the market and beIng stuck with Airbus H225 paperweights.

[Pittsextra]

So quite a big impact then? I dont really recall BRS exec ever really highlighting such an issue in any prior earnings calls.

[Apate]

So the earnings call has been put back till next week.

I wonder if it’s to incorporate some good news.

Rumours of a big contract win in the UK

This post on the 7th didn't quite get it right.

IF a "big contract" award was about to happen, I wonder if the customer has done a U-turn and decided to run to the hills? :eek:

[Same again]

So ill take that as a yes Your question did not require a yes or no answer. Investing heavily in a helicopter that suited both operator and client is hardly an 'adventure'. Perhaps it would have been if the gearbox issues and Airbus attitudes to such were known at the time but they were not. No doubt if the S-92 suddenly developed similar issues leading to financial disaster to the many other operators using this type you would consider that an adventure too?

[LesPretend]

This post on the 7th didn't quite get it right.

IF a "big contract" award was about to happen, I wonder if the customer has done a U-turn and decided to run to the hills? :eek:

Actually I’m still hearing quite the opposite.

Im sure all will be revealed in the next few weeks.

[Pittsextra]

Your question did not require a yes or no answer. Investing heavily in a helicopter that suited both operator and client is hardly an 'adventure'. Perhaps it would have been if the gearbox issues and Airbus attitudes to such were known at the time but they were not. No doubt if the S-92 suddenly developed similar issues leading to financial disaster to the many other operators using this type you would consider that an adventure too?
The adventure element was the multi year technical issue that affected the 225 and who knew what when and to what visibility there was on the ong term effect that particular issue was going to have on future cashflows and therefore the price of the stock. 225 S92 some other aircraft it makes no difference. The point is this would seem an event that had a material effect on BRS.

i suggested yes it did from your response if yes to what magnitude?

[industry insider]

Pitts, it desn't really matter very much since with the downturn, BRS would always have had some idle aircraft. As a result of the 225 grounding, the S-92 fleet was virtually fully utilised. But had there been 225s available, some would have been in the operational client mix leaving some S-92s idle. Therefore BRS would have had some idle aircraft regardless of type, all operators did and still do in fact.

Of the 27 EC225s in the BRS fleet, 16 were owned (by BRS owned leasing companies) and 11 were leased. 13 were in Aberdeen, 9 in Australia and 5 in Norway.

Quote from the SEC 10Q filing on 3 Aug 2017:

"It is too early to determine whether the H225LP accident that occurred in Norway in April 2016 will have a material impact on us as we are in the process of quantifying the impact and investigating potential claims against Airbus."

If you wish to trawl through all of the SEC filings to obtain information, try EDGAR

https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000073887&type=&dateb=&owner=exclude&start=80&count=40

[SASless]

The first 225 shucking its Rotorhead may not....but the second occurrence damn sure did.

Management would be blind to the obvious if they took any other view of the situation.

How they analyzed the potential impact re contracts and warranties, etc would be the key to whether they misstated the situation in SEC Reports and a review of that process might determine if there was willful misrepresentation.

I am sure that issue and others shall be fully examined by the various and many Legal Actions filed recently.

Re the 225's.....if a subsidiary owns the aircraft and leases them to the operational unit....BRS still owns those dog houses and the associated costs.

As they are not flying....and the purchase payments are probably still on-going, though possibly offset somewhat by claims against Airbus (if ever paid by Airbus)....it still must be a massive hit cost wise.

How does one break a Lease Agreement with one's own self?

[212man]

Re the 225's.....if a subsidiary owns the aircraft and leases them to the operational unit....BRS still owns those dog houses and the associated costs.
Yes - I was going to say the same. I can't imagine what they are worth now - less than 20%?

Mitchaa - surely they must be the 19th Feb figures? It's the 20th today and the NYSE hasn't closed at 13:00 GMT.

[Same again]

i suggested yes it did from your response if yes to what magnitude?

No idea (I am simply a worker bee) but I would imagine a considerable one as any operator and owner of the 225 in the offshore market would have experienced. Whilst Bristow senior management undoubtedly have some responsibility for the current state of financial affairs Bristow bashers should also consider that apart from the 225 grounding there was also shortly afterwards a huge drop in oil prices and a subsequent loss of contracts and therefore redundancies. Added to this Bristow had to make a substantial financial commitment to the UK SAR project before any revenue was forthcoming. This is a 10+ year contract involving 10 bases (mostly built from scratch), 20+ new aircraft and the recruitment of 100+ crews - all of whom required training. Add all three together and it is little surprise that Bristow seem to be in strife.

[SASless]

Same.....is it too much to ask of. Management to include a long-term strategic analysis of the Oil Market and ALL possible drivers of business prospects?

In the old days....we flew some old helicopters....all paid for.

When we had a dry spell...excess machines got shoved over to the side of the hangar and ignored until they were needed.

Pilots and Engineers that were excess went on gardening leave until recalled.

Have the smart assed business wizards of today forgotten the lessons learned in the old days of this up and down business of oil related aviation contracting.

Have they allowed themselves to become fixated on the Quarterly Report and lost sight of the Five Year....or Ten Year plan?

Leasing back to yourself works well when you are making money and all your machines are working.

In one of my businesses I did just that...leased everything from myself and converted taxable income to expense burden income....and made money doing so.

When the fuel prices skyrocketed and I began to barely break even due to the high costs and declining revenue.....I sold off everything and converted the residual into cash for other investments.

It seems Bristow bought something they could not sell....and had not paid the assets off thus continue paying on them.

SAR Bases.....what a couple of Portacabins and a Temporary Hangar perhaps.....a half dozen Recliners and some computers....a telephone, fax machine, and a farm tractor.....how big an expense is that?

Oh....forgot the Kettle and Microwave!

[industry insider]

SAS

As they are not flying....and the purchase payments are probably still on-going, though possibly offset somewhat by claims against Airbus (if ever paid by Airbus)....it still must be a massive hit cost wise.

No more of a hit than if some 225s were flying and some 92s were idle and still being paid for. All operators have still got spare capacity, there are 92s for sale relatively cheap, <$10m in a variety of colours and that's before negotiation.

212

Yes - I was going to say the same. I can't imagine what they are worth now - less than 20%? ERA managed about 15 cents on the $ from Airbus.

Same

Bristow bashers should also consider that apart from the 225 grounding there was also shortly afterwards a huge drop in oil prices and a subsequent loss of contracts and therefore redundancies.

The oil price had already halved between June 2014 and Jan 2015, at least 12 months before the 225 crash and subsequent grounding

[Same again]

I can't be bothered to check dates but regardless of the chronology all three ingredients combined within a few short years to assist with the present situation. SASless - sadly the 'good old days' of which you, quite rightly, have fond memories (me too) are sadly long gone. Back in those halcyon days the 'Ryanair' helicopter operators were non-existent or cetainly not capable of winning large contracts. These days they are, and do, with the subsequent cost cutting, reduction in standards and race to the bottom. In my experience having worked for Bristow, regardless of their other faults, they have always tried to maintain high standards in respect to pilot and engineering training and performance. My experience with the 'Ryanair' operators is very different.

[industry insider]

The acquisition of 20 aircraft whether leased or financed is not as burdensome as you may think to a company like Bristow. Heavily discounted prices and generous payment terms are available to big fleet customers.

I agree it used to be a great company. I worked for the old Bristow from 1980 until about the time OLOG bought it. I am fortunate to have been there during the best years.

[212man]

Mind you, it’s not exactly all sweetness and light down the road in Lafayette!

https://www.google.com/amp/s/www.marketscreener.com/amp/PHI-INC-10463/news/PHI-Fitch-Assigns-CCC-Rating-to-PHI-Inc-s-Maturing-Notes-27848357/

this is going to really hurt.....

[Dirtnap]

Sounds like it's going to be a race to see who collapses first: PHI or BRS.

Not to hijack the thread, but with the 500M+ bond maturity for PHI coming due in March, is there any hope they'll make it through a chapter 11? I was reading the company has only 1B in assets possible to sell, no idea where that valuation comes from.

Between the two, things look dark. Maybe the O&G giants will wake up and decide they'd rather *not* put all their suppliers out of business. Maybe I'll find a briefcase of money tomorrow.

[SASless]

I am thinking that investing in Crew Boat Company Stock might be a wise move short term!

I could always move to Fourchon and become a Deck Hand when Bristow (Air Log) and PHI go Tits Up in the GOM.

[helihub]

SASless - make sure it's not the Crew Boat Company recommended by Chris Grayling ....

[SASless]

BRS was $1.54 a few minutes ago....down 6.67% today.

PHI INC/SH is $3.51....down 5.9%.

The Links are for 12:27 PM EST graphs




https://www.google.com/search?client=safari&rls=en&q=BRS,+Stock+Quote&ie=UTF-8&oe=UTF-8 (https://www.google.com/search?client=safari&amp;rls=en&amp;q=BRS,+Stock+Quote&amp;ie=UTF-8&amp;oe=UTF-8)


https://www.google.com/search?client=safari&rls=en&q=BRS,+Stock+Quote&ie=UTF-8&oe=UTF-8

[Pittsextra]

BRS in it's final death throes. Any move up is on thin volume and people punting.

[Dirtnap]

Fairly damning letter from yesterday on helihub from an activist investor who is very long PHI. Can't post links yet or I would. Things don't sound good, although the investor solution seems to be "SELL THE AM WING!" But if I'm another operator, why should I spend $400 M on a bunch of helicopters and contracts now when I could wait for bankruptcy and buy them for a fraction of the price? And what operator has $400M lying around that would be interested?

Plus, with Waypoint filing, BRS possibly going to file, and PHI looking grim, why would anyone not already invested in helicopter services want to step into the market? It would be bizarre.

[SASless]

BRS down 14.55% today......$1.41 at the close of trade.

PHI only down 2.95%.

[wrench1]

Fairly damning letter from yesterday on helihub from an activist investor who is very long PHI.
Different dynamic between PHI and BRS.

First, the PHI "activist investor" is only long about 11% in non-voting PHI stock compared to the 75+% of voting PHI stock the sole owner of the company has. He's hardly an issue and has no standing in the big picture. Second, this "investor" has been called out in the past in other posts and PHI public statements. So again, hardly an issue. Funny, he usually brings up the same problems you do?

Had PHI not gone the HNZ path it would have been interesting to see where they would stack right now. They're only now looking at heavy reductions that others had already done 2 years ago. The contracts they have are solid for the next couple years and they do have the EMS nickel that helps balance a few things out. However, I think the EMS market is about to go through their own "rebirth" in the next year or two.

As for BRS, there are a few underlying issues. This isn't the 1st time the books were off in recent times and required adjustment. But I don't think there will be any corruption charges floated this time. The industry changed but I think in the end, the 225 debacle will prove to have more cause in the industry recovery than previously thought. Just look at Milestone, CHC, and others.

In all my years in the business with the huge ups/downs, I've never seen the bottom completely fall out as this. I think Sasless is right in that the old business model of flying old, paid-for airframes kept that bottom in place. It will be interesting how things work out as I sit and watch from a far. I wish the best for all concerned but I'm just as glad I retired 5 years ago.

[industry insider]

I still think the problems are capacity driven, leasing companies in the 2005-2012 period made it easy and attractive to lease new aircraft on a no money down fly away basis. While the leases were upfront cheap to get into, like all leases they were for 10 years with no mid term variation. No one foresaw the oil price falling to $30 in the middle of the lease terms. All of a sudden, the leases looked expensive. Falling contract prices with high costs lease price meant losses for the operators.

There would have been huge spare capacity regardless of the 225 issue. Same with rigs and vessels. Arguably, the 225 issue helped by taking immediate capacity out of the still slightly flooded market. There are still 30 unemployed S-92s available today looking for work.

There is a big difference between PHI and BRS. PHI owns most of its aircraft, BRS no longer does. PHI has not sold and leased back aircraft to generate cash, which in the BRS case seems to be to burn it in operating losses. Mr. Gonsoulin is a shrewd operator and he doesn't talk PHI's business openly. You would have to be in the inner sanctum of the inner sanctum to know the plan.

[Pittsextra]

The commercials of aviation have forever been odd. You have huge costs of capital, huge ongoing costs in terms of training, maintenance and the fulfilment of regulation but despite all of that as has been already highlighted there are those that are happy to give customers the effective free option. Whereby the investor takes all that long term risk to provide the customer with a low cost service the business case for which is only valid with high utilisation. It would seem that can be made to work with airlines operating for the masses. It seems it is at best marginal in the environment Bristow operate.

The 225 issues are interesting because anecdotally it does seem that beyond the physical availability of the aircraft how do you quantify the huge damage done to reputation and perception of risk? After all of the UK based 225 and derivatives issues when the rotor departs company in Norway I'm not sure talk of increasing investment in that area would be entirely welcome. The time frame and procedures (including information flow) that are common to such investigations maybe understood and accepted for those simply interested in the aviation element but it will be unbelievable to the person investing or put another way the person allowing the entire endeavour to exist.

If the drag on the business from the 225 is at all material to the Bristow group then I would find it impossible to believe that information upon the causal effect on failures that have blighted the type since when 2009? have been disclosed fully or been made available to investors. Whilst aviators may often take a purist view and be entirely comfortable to "wait for final report" I do not think it is a huge leap of imagination that delays (or perhaps the timely release of) could well be due to pressure / objections around language that prevents (or reduces) the possibility of legal action due to any misdirection.

[SASless]

Bristow and PHI are two very different companies....in many aspects that are quite important.

PHI primarily operates in the Gulf of Mexico while Bristow primarily operates outside the Gulf of Mexico.

Bristow is primarily a "large helicopter" operator and PHI operates a more mixed fleet with a majority of them being smaller aircraft.

Bristow is generally a two Crew operation vice PHI's single pilot crew due to the numbers of small aircraft.

PHI must be a much simpler operation to control as compared to Bristow.

As to leasing.....when you own the Leasing Company you obtain your leased aircraft from.....you still own the aircraft and the aircraft costs.

The 225 situation is not what did in Bristow.....but it certainly played a role in creating financial losses.

Not controlling costs is what did in the Company....and not having a contingency plan for a market downturn that would sustain the company during that down turn.

This not foreseeing a 30 Dollar Barrel thing.....there have been downturns in the oil business quiet often.

Forgetting that happens is the major failure.

[Fareastdriver]

SASless.
You can probably remember the Klondike days on the North Sea in the early nineties when the Brent went down from $32 to $18.

The signs on the walls of the bars.

'Please God, bring up the price of oil. We promise not to piss it against the wall next time.'

[SASless]

Then there was the 8 Dollars per Barrel days that nearly bankrupted the Saudi Royal Family.

In Alaska at the end of the Pipeline Construction....we saw the very same kinds of signs everywhere....car dealers, apartment complexes, real estate brokerages, aircraft operators, trucking companies......even the Bawdy Houses and Street Walkers felt the impact!


Chart showing Oil Prices since the 1950's.....lots of ups and downs....with HUGE swings!

I found the Ten Year Chart informative......and of more pertinent than the initial 1950's chart.


https://www.macrotrends.net/1369/crude-oil-price-history-chart

[Impress to inflate]

I'm assuming Bristow are the major share holder in AirNorth (Or at least they were)? If this is the case, what will happen to AirNorth if Bristow goes belly up ? AirNorth is bleeding money, canceling flights left, right and centre as well as many flights delayed due staff shortages.

[Atlantic Explorer]

I'm assuming Bristow are the major share holder in AirNorth (Or at least they were)? If this is the case, what will happen to AirNorth if Bristow goes belly up ? AirNorth is bleeding money, canceling flights left, right and centre as well as many flights delayed due staff shortages.

Dont know what BRS do to the fixed wing operators they jump into bed with, but, from the description above, that pretty much sums up Eastern Airways as well.

Poor management? Lack of oversight? I could go on.......

[Fareastdriver]

With Airnorth you can take a trip to that luxurious resort at Truscott.

[LesPretend]

Just an opinion but BRS misjudged badly what their clients wanted when they bought into these fixed wing operators. They appear to have also allowed them to haemorrhage cash without stepping in and taking control, or maybe they have which is even more alarming. I suspect now something pretty drastic needs to happen with both of them, shareholders will be looking for swift action, particularly after the last statement which appeared to suggest both are a significant factor in the lack of turnaround.

I have absolutely no idea how EA can still function as a regional airline when all around them are waving the white flag.

If you are lucky your flight goes (late!), if you are unlucky you hear 3rd hand that the aircraft is being nicked to do something else or you are going via Mordor to pick up other disgruntled punters. The bills for compensation alone must be eye watering.

I’m fortunate that I don’t use them on schedules very often but their reputation for punctuality and VFM anecdotally is pretty grim.

All the while BRS seemingly are throwing good money after bad to prop them up.

[Evil Twin]

With Airnorth you can take a trip to that luxurious resort at Truscott.

Truscott is awesome, apart from the Airnorth death pencil flight. The never ending cake fridge is the stuff of legend, I'd almost go back to offshore (and be bored of flying for the rest of my days) to go back to Truscott. There is so much to see there historically and just the camaraderie, better than Karratha or worse Barrow!

[wrench1]

????
https://www.morningstar.com/news/pr-news-wire/PRNews_20190226NY66572/livent-set-to-join-sp-smallcap-600.html

NEW YORK, Feb. 26, 2019 /PRNewswire/ -- Livent Corp. (NYSE: LTHM) will replace Bristow Group Inc. (NYSE: BRS) in the S&P SmallCap 600 effective prior to the open of trading on Tuesday, March 5. S&P 500 constituent FMC Corp. (NYSE: FMC) is spinning off all its holdings of Livent to shareholders. Bristow Group is ranked at the bottom of the S&P SmallCap 600 and no longer representative of the small-cap market space. FMC Corp. will remain in the S&P 500.Livent Corp manufactures and sells performance lithium compounds that are used primarily in energy storage, specialty polymers, and chemical synthesis application. Headquartered in Philadelphia, PA, the company will be added to the S&P SmallCap 600 Global Industry Classification Standard (GICS) Specialty Chemicals Sub-Industry index. Following is a summary of the change:S&P SMALLCAP 600 INDEX – March 5, 2019
COMPANY
GICS ECONOMIC SECTOR
GICS SUB-INDUSTRY
ADDED
Livent Corp
Materials
Specialty Chemicals
DELETED
Bristow Group
Energy
Oil & Gas Equipment &
Services
For more information about S&P Dow Jones Indices, please visit www.spdji.com (https://c212.net/c/link/?t=0&l=en&o=2387175-1&h=3953280095&u=http%3A%2F%2Fwww.spdji.com%2F&a=www.spdji.com).

[Impress to inflate]

BRS stocks closed last night at $1.28, this time last year they were trading at $15.18 !! ohh dear

I forgot about Eastern, they used to be a great regional airline, used them many times out of ABZ. Sounds like they are in the $hit as well

[NumptyAussie]

[QUOTE=Evil Twin;10400743]Truscott is awesome, apart from the Airnorth death pencil flight. The never ending cake fridge is the stuff of legend, I'd almost go back to offshore (and be bored of flying for the rest of my days) to go back to Truscott. There is so much to see there historically and just the camaraderie, better than Karratha or worse Barrow![/QUOTE

what about the 3 roast meat sunday lunches?

[Fareastdriver]

There is so much to see there historically

Just don't step on it.

[barbados sky]

https://cimg1.ibsrv.net/gimg/pprune.org-vbulletin/1144x1574/screen_shot_2019_02_27_at_6_23_29_pm_eebc0a3947ec9c62245cb53 268edb47a734c9af5.png

[Evil Twin]

[QUOTE=Evil Twin;10400743]Truscott is awesome, apart from the Airnorth death pencil flight. The never ending cake fridge is the stuff of legend, I'd almost go back to offshore (and be bored of flying for the rest of my days) to go back to Truscott. There is so much to see there historically and just the camaraderie, better than Karratha or worse Barrow![/QUOTE

what about the 3 roast meat sunday lunches?

Forgot about those, yum yum

[EESDL]

It’s going to be fairly difficult to recruit those aspiring SAR winch/paramedics........or do we think the UK Government will have to step-in to rescue another botched ‘privatisation’ - akin to Virgin East Coast / LNER (British Rail) ?

[Nescafe]

Barbados Sky, sadly that is an accurate summary of his tenure.

What a waste.

[industry insider]

Barbados, that is very funny! :):):ok::ok:

[nowherespecial]

Isn't there a valuation of the stock issue as well? not just the share price but a market cap lower limit?

[nowherespecial]

Like this:
https://www.colonialstock.com/nyse-listings.htm
Market cap now below $40m so way below what I think is the level for an established business.

[barbados sky]

Bristow Names Don Miller President and CEO and Brian Allman Senior Vice President and CFOhttp://media.corporate-ir.net/media_files/irol/global_images/spacer.gifHOUSTON, March 1, 2019 /PRNewswire/ -- Bristow Group Inc. (NYSE:BRS) announced that L. Don Miller has been named President and Chief Executive Officer and appointed him as a member of the Board of Directors, which took effect at the close of business on February 28, 2019. Miller previously served as the company's Senior Vice President and Chief Financial Officer. Bristow Group extends its thanks to Thomas Amonett, Executive Vice Chairman of Bristow Group's Board of Directors, for his service as interim President following the announced retirement of previous President and CEO Jonathan Baliff.
"Don's energy, intellect and commitment to the Bristow team and our customers gives the board full confidence in his ability to lead Bristow, the world's leading industrial aviation solutions provider," said Tom Knudson, Director and Chairman of Bristow Group's Board of Directors. "As we continue to navigate through challenging times, Don's steady hand will provide important and needed continuity. Don's knowledge of the business and our clients coupled with his extensive experience in financial and capital markets position him well to lead this great company." Miller joined Bristow Group in 2010 and has held several leadership positions within the company's Finance and Strategy functions, including Vice President of Mergers, Acquisitions and Integration. Miller, a Chartered Financial Analyst (CFA) charterholder, was also named a finalist for the 2018 Houston Business Journal CFO of the Year award."Bristow serves a critical role in the oil and gas and search and rescue industries and beyond, and I'm honored to have the opportunity to lead the company through one of the most dynamic markets in recent history," said Miller. "Bristow has the best employees in the world, with an unwavering commitment to safety and our clients. I'm confident we will continue to provide unparalleled service as we work through our challenges and become an even better long-term partner to our clients."Additionally, the company announced that Brian Allman has been promoted and will replace Miller as Senior Vice President and Chief Financial Officer. Allman was previously Vice President and Chief Accounting Officer for Bristow, and will continue as Bristow's Chief Accounting Officer. Allman joined Bristow in 2006 as Director of Financial Reporting. "Brian is a well-respected financial leader both internally and externally," said Miller. "While leading our global accounting and tax team, Brian played an important role in our recent financings and is fully integrated with our investor relations, internal audit and financial forecasting and modeling functions."

What a brilliant and gifted decision Bristow, just what the company needs, more faceless accountants and bankers re invigorate the business and get it off life support. Thank goodness Bristow weren't silly enough appoint someone who knows the offshore helicopter business with even 30% of Mr Bristow's knowledge. A lucky escape for PHI, CHC and Babcock managements who will be out having a celebratory dinner tonight.

[LesPretend]

Interesting to see what the market makes of this.

So it took them 3 months to come up with this appointment. Sounds a bit like no one else wanted the poisoned chalice.

So the guy that’s overseen the financial meltdown within the company gets the top job. Hmmm

[SASless]

The term is "Sacrificial Goat" I believe.

[Tango and Cash]

The term is "Sacrificial Goat" I believe.

I'm sure he will be well compensated for his sacrifice.

[EESDL]

First thing that came to mind was the fact that these guys have been there all along -standing very close to the tiller.

[LesPretend]

This post on the 7th didn't quite get it right.

IF a "big contract" award was about to happen, I wonder if the customer has done a U-turn and decided to run to the hills? :eek:

No the post on the 7th did get it right.

Im told BRS will announce today that the 5yr BP contract has been won.

Good news at least for U.K. Oil&Gas!!

[SASless]

When the house is tumbling down around your ears....I suppose anything remotely good is worthy of comment.

Now explain why one five year contract in the UK is anywhere near Salvation for Bristow.....which is losing contracts all around the World.




We need a "Like/Love" Button......the post by Barbados Sky just earned a double tap!

:ok::ok:

[industry insider]

Barbados - Exciting New Direction = END :D

[Ainippe]

https://cimg8.ibsrv.net/gimg/pprune.org-vbulletin/1500x2000/screen_shot_2019_03_04_at_4_28_14_pm_abcc414f7dfcc07bbeb6a22 874eeeb500d6dbc74.png
Nice Try but a wind up again lol

[Ed Winchester]

Nice Try but a wind up again lol

There’s no flies on you! :ugh:

[Nigerian Expat Outlaw]

The trajectory has been downhill since BC left. Love him or hate him, he transformed Bristow from a laurel resting arrogant dinosaur into a benchmark for the industry.

JB took only a few years to undo all that work.

NEO

[bombdoorsopen]

I'm sure he will be well compensated for his sacrifice.

35 years service and £500 John Lewis vouchers, you are now to expensive.. so goodbye... They took the name and run it down to nothing... over the past downturns the management kept it going... now it's all too difficult as they all want a big pay out... Just feel for those left hanging on.. Bristow a can do company... now a can't do...

[RVDT]

There’s no flies on you! https://www.pprune.org/images/smilies2/eusa_wall.gif

But you can still see where they were!!:ok:

[Followmethrough]

I'm no financial advisor but this doesn't look good. I've added explanations/scale of Moody's ratings in bold.


Rating Action: Moody's downgrades Bristow to Caa2
04 Mar 2019Approximately $750 million of rated debt affectedNew York, March 04, 2019 -- Moody's Investors Service, ("Moody's") downgraded Bristow Group Inc.'s (Bristow) Corporate Family Rating (CFR) to Caa2 from B3, Probability of Default Rating (PDR) to Caa2-PD from B3-PD, senior secured rating to Caa1 from B2, and senior unsecured notes to Caa3 from Caa2. The Speculative Grade Liquidity Rating was downgraded to SGL-4 from SGL-3. The rating outlook remains negative.



"The downgrade reflects Bristow's declining liquidity and continued weak financial performance, management's determination of material weakness in internal controls over financial reporting, as well the elevated default risk posed by possible non-financial covenant violation and debt reclassification that may occur if the company is unable to successfully assess its historical compliance with covenants or obtain necessary waivers," said Sajjad Alam, Moody's Senior Analyst. "While the company has asserted that it is not aware of any non-compliance in its secured financing and helicopter lease agreements that have not been cured or waived, it is unclear how long it will take to complete management's review of existing processes and controls and remedy the internal control deficiency, when Bristow will be able to complete its assessments and obtain any necessary waivers from various lenders and lessors as they work through this matter with its auditor, and whether Bristow will be able to produce financial statements within a reasonable timeframe without adverse or qualifying statements from its auditor."



Issuer: Bristow Group Inc.

.Downgraded:

.... Corporate Family Rating, Downgraded to Caa2 from B3

.... Probability of Default Rating, Downgraded to Caa2-PD from B3-PD

....Senior Secured Rating, Downgraded to Caa1 (LGD3) from B2 (LGD3)

....Senior Unsecured Regular Bond/Debenture, Downgraded to Caa3 (LGD5) from Caa2 (LGD5)

....Speculative Grade Liquidity Rating, Downgraded to SGL-4 from SGL-3 - A rating of the risk, published by Moody's, that a company will not be able to meet its short-term liabilities due to illiquidity. An SGL-4 rating is the least liquid rating. This indicates a company may not have cash on hand to pay immediate obligations.

INVESTMENT GRADE

» Aaa – highest rating, representing minimum credit risk

» Aa1, Aa2, Aa3 – high-grade

» A1, A2, A3 – upper-medium grade

» Baa1, Baa2, Baa3 – medium grade


SPECULATIVE GRADE

» Ba1, Ba2, Ba3 – speculative elements

» B1, B2, B3 – subject to high credit risk

» Caa1, Caa2, Caa3 – bonds of poor standing

» Ca – highly speculative, or near default

» C – lowest rating, bonds typically in default, little prospect for recovery of principal or interest




.Outlook:

....Maintain Negative Outlook



RATINGS RATIONALE



Bristow's Caa2 CFR reflects its very high financial leverage and the associate debt service cost; elevated default risk due to delayed financial reporting, potential non-financial covenant violation, and the uncertainty around the company's ability to continue as a going concern; and persistent negative free cash flow generation that continues to drain liquidity. If the company's auditor includes a "going concern" statement in the annual 10-K filing, it would trigger an "Event of Default" under Bristow's certain secured equipment financings. The rating also considers the poor outlook for the offshore oil and gas industry, and Moody's expectation of persistent pricing pressure due to industry-wide helicopter overcapacity. Moody's expects negative free cash flow generation to continue through fiscal 2020 leaving very limited cash cushion in early 2020 unless the company is able to execute assets sales or raise funding through other means. Bristow's ratings are supported by its global scale, leading market position in the offshore helicopter services industry, long-term and non-cyclical search and rescue (SAR) contract with the UK government, large and modern fleet of mostly owned aircraft, contractual relationship with a diverse group of oil and gas customers, and consistent commitment to safety.



Financial leverage will remain elevated around 7x through fiscal 2020 and additional projected negative free cash flow will further stress liquidity. The company has not filed its fiscal third quarter 2019 financials on due date and management has concluded that there is "material weakness" in internal controls involving certain non-financial covenants of its secured financing and lease agreements.



Bristow's liquidity is weak, which is reflected in the SGL-4 rating. Despite cutting capex, Bristow could still generate $70-$80 million of negative free cash flow in fiscal 2020. As of December 31, 2018, Bristow had $231 million of balance sheet cash and $6 million of availability under its ABL facility, but Moody's estimates total liquidity would be lower today following the $20 million breakup fee payment to Columbia Helicopters (unrated) and likely negative free cash flow generation since December 31. Bristow has been returning leased helicopters and selling unencumbered helicopters to boost liquidity, but it has been a slow process thus far.



Bristow's senior notes are rated Caa3, one notch below the Caa2 CFR given the significant amount of secured debt in the capital structure. The secured term loan is rated one notch above the CFR at Caa1 because of their priority-claim to Bristow's assets in a potential default scenario. Moody's Loss Given Default Methodology indicates a two notch separation between the CFR and the secured notes, but Moody's believes that the assigned Caa1 rating is more appropriate given that secured lenders do not have an all-asset pledge reducing potential recoveries in the event of a default.



The negative outlook reflects Bristow's declining liquidity, projected negative free cash flow generation and the elevated risk of default. A downgrade is likely if the company is unable to cure the potential covenant breach or any default event or if total liquidity falls below $100 million. An upgrade could be considered if the company resolves its financial reporting and covenant issues, provides visibility around how it plans to remedy control weakness, and maintains adequate liquidity while improving earnings.



The principal methodology used in these ratings was Global Oilfield Services Industry Rating Methodology published in May 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.



Bristow Group Inc., headquartered in Houston, Texas, is a leading provider of helicopter transportation services to the oil and gas industry worldwide.



REGULATORY DISCLOSURES



For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.



For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.



Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Sajjad Alam
Vice President - Senior Analyst
Corporate Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653


Steven Wood
MD - Corporate Finance
Corporate Finance Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653


Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653

[Ainippe]

There’s no flies on you! :ugh:
I hope you are being pleasant or are you being sarcastic?

[[email protected]]

Ainippe - I think there may have been some sarcasm since it seemed obvious the letter was a spoof:ok:

[Ainippe]

:ok:It sucked me in for a bit - my stupidity I guess,:ok:

[Evil Twin]

BRS, run into the ground by incompetent morons in such a short time. If you still work there, get out while you can

[PlasticCabDriver]

And under the magic $1 it goes. Does this trigger anything or does it need to be below for a certain period of time?

[TUPE]

http://www.helicopterinvestor.com/articles/comment-is-bristow-as-bad-as-it-looks-697/

[Non-Driver]

http://www.helicopterinvestor.com/articles/comment-is-bristow-as-bad-as-it-looks-697/

If there is a turnround to happen, you could make a killing at the current price.....

on the other hand....

[SASless]

Investing in Penny Stocks....especially those that started at almost Twenty Dollars a Share.....is the definition of "Gambling".

Don't look at the Technicals....look at the "odds" Bristow even survives.

Now as we all know....someone will step in and buy up those parts of the business that do have some hope and out of the ashes will rise yet a "new" Bristow.

Of course it will be in name only!

[Pittsextra]

Don't get involved guys this thing is going to zero. There is simply no reason to buy or for anyone to buy it. The business Bristow are engaged in require no brand, there is clearly no goodwill left in the enterprise and who wants to step in to take on the debt, legacy contracts and any human resource liabilities?

The equity price merely reflects a claim on all future cash flows. At the moment BRS has a market cap of a couple of reasonably spec'd helicopters proving the market effectively thinks this thing is dead.

[SICKorSKI]

I see that BRS has desended below $1 today. Is that not a trigger point to delist or head to a new exchange ?

[LesPretend]

I heard today that Eastern has been sold (or given?!!!) back to the original owners?

Might be nonsense.

[Evil Twin]

I see that BRS has desended below $1 today. Is that not a trigger point to delist or head to a new exchange ?

Doesn't it have to be below $1 for 30 days to be de-listed? That's what I thought, could very easily be wrong on that though.

[murdock]

Deficiency notice
If a company is in violation of the continued listing standards for a period of 30 consecutive days, the NASDAQ sends a "deficiency notice." The most common reasons for a deficiency notice are a share price that falls below $1.00 or a market cap that falls below the stated minimum (as low as $5 million if other requirements are satisfied).Once a deficiency notice has been sent, the company has 90 days to comply with the continued listing standards, or 180 days if the violation was for a sub-$1.00 share price. In order to be compliant, the company's share price or market cap must rise above the minimum for at least 10 consecutive days in the 90-day (or 180-day) period.
If the company fails to comply
If the conditions that triggered the deficiency notice are not met in time, the NASDAQ will then send the company a delisting letter, which must be disclosed to the public within four business days.There is an appeal procedure that a company can use, if it feels that it doesn't deserve to be delisted or if it can regain compliance in a reasonable amount of time. Once the company receives the delisting letter, it has seven days to request a hearing with the NASDAQ listing qualification panel to present its case, which postpones the delisting process until the panel makes a decision.Unless an appeal is filed, the company's stock is halted, and then delisted after seven days. If the appeal is rejected, the company also has the option to appeal to the SEC or in federal court. The NASDAQ gives the company an additional 15 days to do so, but begins its final delisting procedures during that time.

[Nigerian Expat Outlaw]

I heard the price sank below $1 ? Things are pretty grim. Sad to see a once great company sink to such depths. :(

NEO

[Phone Wind]

NEO,

You’re correct, it’s sank, the past tense. Sunk is an adjective or a past participle.

i thoroughly agree that it’s very sad to see a once-great company fall so far. It seems to happen to so many companies when bean counters with no experience of anything but balance sheets or making up all sorts of acronyms like EBITDA are allowed unfettered control and all must bow down before their financial altar. Accountants should stick to auditing businesses, not running them. And don’t even get me started on the proliferation of human remains ‘professionals’ in companies.

[Non-Driver]

What's the score these days with the UK company ? It always had a majority ownership by EU companies/nationals for AOC purposes although BRS called the business shots. Back in the day it was Caledonia Investments and a patsy individual who voted with the US to give effective control over there. IIRC, Caledonia took a reciprocal large minority ownership in BRS when it listed on the NYSE. Not sure what the current shareholdings are.

Given the large slice of overall BRS revenues flowing through there and a substantial HM Government contract I presume there would be a sale of BHL group as a Going Concern to UK based investors ?

[industry insider]

If I remember, the Bristow UK Company is Bristow Aviation Holdings. Caledonia sold most of its shares in 2017 for a loss (about $12 per share). A quick check shows Caledonia has about 1.4m shares left so it only has about $1.5m of value in BRS which is rocketing up to $1.06 as I am typing!

[RMK]

making up all sorts of acronyms like EBITDA The “E” in EBITDA stands for Earnings. Regardless of how great it was to have a beer with Alan Bristow in years past, please tell us more about how earnings don’t matter to a business.

[Phone Wind]

RMK,

Back in the good old days of having a beer with Alan Bristow, profit was what counted, not earnings and yes, I’m well aware of what the E in EBITDA stands for, having been sent on courses by the bean counters to be able to decipher their TLAs and FLAs. However, I also learned that it is a very poor and misleading mechanism if it is used to get an idea of the cash flow of a public company because:

1. It excludes taxes and interest, which are real cash items and not at all optional—a company must obviously pay its taxes and loans.

2. On the other hand, it does not exclude all non-cash items, only depreciation and amortization. Among the non-cash items not adjusted for in EBITDA are bad-debt allowances, inventory write-downs, and the cost of stock options granted.

3. Unlike proper measures of cash flow, it ignores changes in working capital. Additional investments in working capital consume cash.

4. Finally, the main flaw of it is in the E (Earnings). If a public company has over- or under-reserved for warranty costs, restructuring expenses, or bad-debt allowances, its earnings will be skewed and its EBITDA misleading. If it has recognized revenue prematurely or disguised ordinary costs as capital investments, its numbers are suspect. If it has inflated revenue through round-trip asset trades, the E is of no informational value.

I’m just a poor old retired dinosaur, but my other half is involved in investigating fraudulent bean counters and when I mentioned this to her, she told me that a lot of failing businesses focus on highlighting EBITDA because it minimizes the impact of factors outside of their scope of control and focuses only on what can be controlled.

[DOUBLE BOGEY]

I agree with Phone Wind. What the hell happened to "I earn X, so I spend Y". 2 of the biggest helicopter operators in the world have trashed their finances during a time over the last 15 years when it was not difficult to make a profit. Granted the last few years have been hard but where did all that money go that was earned while the sun was shining?

[Non-Driver]

I’m just a poor old retired dinosaur, but my other half is involved in investigating fraudulent bean counters and when I mentioned this to her, she told me that a lot of failing businesses focus on highlighting EBITDA because it minimizes the impact of factors outside of their scope of control and focuses only on what can be controlled.


That's true and compounded with the fixation on ROCE. I remember being at Houston Towers budget planning sessions back in about 2004. It came in with BC and whoever his CFO was at the time (can't remember). I generally got on well with BC and had a lot of time for him but that was one that caused me some pain. The easiest way to get a high ROCE is to keep the CE down by leasing (then not recognised on Balance Sheets) or flogging on old 332L's & S61's rather than investing in new tech.

Ironically, by the time the rates supported the new tech that new strategy backfired by keeping more expensive assets on the B/S than our major competitor who took advantage at the downturn and EC225 groundings through Ch11 lease walk-aways.

[barbados sky]

https://cimg7.ibsrv.net/gimg/pprune.org-vbulletin/1390x1872/screen_shot_2019_03_28_at_9_09_30_pm_f49108aedacb925e419e208 3e7664bf0638bb98d.png

[SASless]

Someone is being a very naughty boy!



Shame there is no "Like" feature. here at Rotorheads!


:ok::ok:

[Non-Driver]

If there is a turnround to happen, you could make a killing at the current price.....

on the other hand....

150% return in 13 days for anyone brave/foolish enough :}

[beep trim]

So the new CEO used to work at Enron - what could possibly go wrong.

[jimf671]

I agree with Phone Wind. What the hell happened to "I earn X, so I spend Y". 2 of the biggest helicopter operators in the world have trashed their finances during a time over the last 15 years when it was not difficult to make a profit. Granted the last few years have been hard but where did all that money go that was earned while the sun was shining?

We need a LIKE button on here!

[747 jock]

I agree with Phone Wind. What the hell happened to "I earn X, so I spend Y". 2 of the biggest helicopter operators in the world have trashed their finances during a time over the last 15 years when it was not difficult to make a profit. Granted the last few years have been hard but where did all that money go that was earned while the sun was shining?

The hugely expensive and opulent corporate office in Houston would certainly have accounted for a fair proportion of Bristow's revenue.
Senior management seem to think that Bristow was a multi billion $ international airline and spent accordingly.

[LesPretend]

I see the stock plunged again after trading finished yesterday to around 70 cents after the latest update on their filing.

Looks grim, legal firms appointed to assist ‘turnaround’ etc non payment of interest on unsecured bonds. Surely suppliers must be getting twitchy now?

Wonder how much of a battering it will take today?

[Non-Driver]

Indeed:

Bristow Investors ? News Release ? BRS ? bristowgroup.com (http://ir.bristowgroup.com/phoenix.zhtml?c=91226&p=irol-newsArticle&ID=2394559)

[minigundiplomat]

Godot isn’t coming.

Appears Bristow’s are pushing debt back whilst they continue to burn cash; I’m not sure what light they can see in the tunnel, but I suspect it may turn out to be the oncoming 10.15 reality express. The oil price may be up, but the market is still saturated with assets.

[Evil Twin]

Surprised it's not been scooped up and asset stripped. Though probably not enough in the way of assets to make it worthwhile

[LesPretend]

It’s recovered a bit to only be down by 50% on the day to 0.53 cents.

Surely not everyone they owe money to is happy just to let this meander on?

[gulliBell]

That should read 53 cents. Not 0.53 cents.

[Fareastdriver]

Watch this space.

[500e]

Thought it was closer to 43cents

[nomorehelosforme]

https://www.rotorandwing.com/2019/04/16/bristow-warns-dire-financial-future-possible-bankruptcy-sec-filing/

Not looking good....

[gulliBell]

I'm trying to wrap my head around these numbers: BRS earnings per share = minus $10.17, at a net loss per share of $2.40, on a share that is currently worth $0.56. Bristow Group CEO Mr Miller says “If we become insolvent, investors in our common stock may lose the entire value of their investment in our business.” No kidding, pay that man a bonus!

[SASless]

They will do that you know.....

[detgnome]

Interesting letter from Global Value Investing Corps calling for the resignation of most of the Bristow board...

GVIC Board Resignation Demand (https://www.prnewswire.com/news-releases/global-value-investment-corp-calls-for-resignation-of-certain-bristow-directors-300834746.html)

[nomorehelosforme]

https://www.prnewswire.com/news-releases/global-value-investment-corp-calls-for-resignation-of-certain-bristow-directors-300834746.html


Can’t wait to see Barbados Sky’s version of that!

[gulliBell]

The solution for the Bristow self-destruct calamity is simple. Fire all the expensive lawyers and bean counters and other scallywags and scoundrels of dubious competence - march all of them out the door without a tuppence - and hire SASless to take command of the situation with full authority to carry out a plan of action.

p.s. In keeping with tradition I still expect my consultants fee for my brilliance in this regard, and of course a generous on-going retainer.

[SASless]

Thanks but No Thank You.....I am quite happy being retired and available to go hit the bay and ocean to do my imitation of a fisherman.

Granted....a Week of it would be good fun....seeing how many Rice Bowls I could break and make the Houston Headquarters building sound like a bowling alley with all the heads rolling down the hallways.

How many VP's could you fire in a week?

How much fun would it be to sack the HR and HSE Departments?

But...Puffer Fish have left and the Bluefish are running and the Spanish Mackerel are going to be right behind them!

Thus, I shall have to pass on the offer of employment.

[Lingo Dan]

I wish there was a "LIKE" button on PPrune!

[Twist & Shout]

Thanks but No Thank You.....I am quite happy being retired and available to go hit the bay and ocean to do my imitation of a fisherman.

Granted....a Week of it would be good fun....seeing how many Rice Bowls I could break and make the Houston Headquarters building sound like a bowling alley with all the heads rolling down the hallways.

How many VP's could you fire in a week?

How much fun would it be to sack the HR and HSE Departments?

But...Puffer Fish have left and the Bluefish are running and the Spanish Mackerel are going to be right behind them!

Thus, I shall have to pass on the offer of employment.

This is one crux of the modern condition: HR won’t sack themselves, and any reduction in HSE is such a bizarre concept that it can’t even be mentioned.

[SASless]

You miss the point dear boy.....the "function" must be taken care of....not the empire building.

HSE, HR, cease being independent Kingdoms and become part of the Company structure called "Admin".

Immediately...two Vice Presidents get canned.

The Admin staff for EACH department gets trimmed.

Lots of Computer gear becomes excess to need....far fewer Emails and Memo's are not created or have to be read before being ignored.

Less paper gets used .... less Toner gets used....fewer Cellphones must be bought and right on down the line.

Quality Control has always been an Engineering Function.....since when do you need a separate QC Department with all that involves.....the Chief Engineer should oversee that.

Contracts should be let based upon actual "quality" and not what the Corporate Organizational Chart looks like.

Ridding one's operation of "Overhead" and focusing upon adjusting manning to the operational needs is the key.

If you ain't at the coal face....you are "Overhead"....and those non-coal face jobs should always be looked at with a very sharp eye.

Overhead spends money.....Operational Staff make the money.

The Mission Statement for every Overhead Position should start out with...."My reason for being is to support, assist, and facilitate Operations in the safe, efficient, conduct its work.".

I once watched a HSE type get his lunch eaten for him by a Manager who was responsible for the production, safety, and profitability of his assigned operation.

The Safety guy informed the Manager that our Mill had entirely too much Hydraulic Fluid stored on site and that the Containers were in too large a quantity to meet OSHA guidelines and that the Mill must be rid of any container larger than One Quart Cans and could only have some small number of them on site.

The Manager, having trouble chewing his wad of tobacco and not spitting any juice on the Safety Guy, asked what the OSHA Penalty was if the Mill was caught.....to be told some paltry amount.

The Manager then asked the Safety Puke what it cost per hour in lost production for the Mill to be shut down due to a hydraulic leak on any one of the major machines....to which the Safety guy confessed ignorance.

The Manager noted it was along the lines of 20-25,000 Dollars (US) per hour and the 250 dollar OSHA fine would be considered a cost of doing business.....and by the way......the Safety Guy learned he was NOT the Manager but just a Staff Puke from Corporate who could provide advice....not issue directives.

[Checklist Charlie]

SAS, Quality Control and Quality Assurance are 2 very different and separate roles and responsibilities, unfortunately they are often confused as each other.

CC

[SASless]

CC, Nit picking is trait generally seen in those who like to confuse simple issues by looking to the irrelevant while ignoring the actual issue.

Call them two different concepts....which they might be.....but the common link is one entity can carry out the dual function under a single line of command.

The end goal of both is to ensure Safety.

I seem to see folks arguing about structure....and ignoring reality.

Reality demands actual performance and meeting of requirements and goals.

The simpler the system, with the least bureaucracy possible, is the most efficient....and that is what I am talking about.....not cutting standards but ensuring standards are maintained at the least possible cost.

I can assure you my standards of safety usually exceeded most of the Operator's I worked for....and explains how I managed to make it through a flying career without any Accidents or Incidents to my account.

[Impress to inflate]

SASless, your spot on, ALL big companies are over run with HR, S&Q, QA etc etc etc. They contribute very little but hinder an awful lot and the bigger the company, the more Senior VP's, VP's, Deputy VP's, assistant VP's that all need bonuses, medical insurance, pensions then get business class travel, bigger hotel rooms and company credit cards dragging the company down giving bigger overheads and the company ends up with a higher operating cost when it's time to bid for work.

Ohh, and they are ALL out of touch with what the company really does to earn a crust to pay there salary and bonuses, medical insurance pensions etc etc.

[barbados sky]

https://cimg0.ibsrv.net/gimg/pprune.org-vbulletin/1404x1888/screen_shot_2019_04_21_at_8_41_34_pm_0c5ed649ef9437df25086cc cc49c3e3f5c36da2d.png

[Self loading bear]

:ok::ok::ok:

[industry insider]

@ Barbados Sky

Jon Thomas 1 and Jon Thomas 2, I nearly spat out my coffee! :ok:

[SASless]

I nearly slipped up and read the tee shirt thinking it was a "W" instead of a "B" but then I put my Specs on and saw it was a misprint and was in fact a "B".

[jimf671]

Thank you so much for your efforts barbados sky but actually I think that the Bristow website piece about Don Miller says it all. To those whose life's work is gambling with other peoples money and asset stripping national treasures, Don probably looks like he's had a gold plated platinum career. What those blood suckers don't realise is that whoever wrote that makes him look like a complete tosser to real people who have to get in their aircraft, make stuff work, or fly the things.

[Miles Gustaph]

...well today sees a further development in the saga with the investor relations page showing a submission by a major investor slating the current management including:
"GVIC believes recent events represent the culmination of years of mismanagement, poor strategic decisions, weak oversight, and reckless execution by Bristow’s board. It is GVIC’s opinion that the board has been entirely ineffective in delivering value to shareholders and has repeatedly neglected its core duty – to protect shareholders’ interests. It has overseen the severe deterioration of Bristow’s financial and operational position over several years and in the process threatened permanent impairment to Bristow’s shareholders, bondholders, employees, customers, vendors, partners, and the company’s reputation as a preeminent provider of industrial aviation services. GVIC has made numerous attempts to engage constructively with Bristow’s management and board to improve Bristow for the benefit of all stakeholders. Since November 2018, GVIC has sent six letters and made numerous requests to discuss Bristow’s operational and financial performance. Bristow has repeatedly ignored these communications, including offers to assist. In recent days, it has become clear that Bristow may seek a restructuring through a Chapter 11 process. To be clear, such a restructuring would be the wrong decision for Bristow."

Good luck to GVIC!

[Miles Gustaph]

More extracts:
"OPERATIONAL BLUNDERS
In parallel with declining operating results and worrying balance sheet developments, Bristow’s management has been unable to implement necessary operational improvements. For example, from March 31, 2015 to December 31, 2018: - Helicopter fleet size as measured by large aircraft equivalent (LACE, a capacity-weighted measurement), remained unchanged at 167, with only minor interim fluctuations. - TTM operating expenses decreased only modestly, from $1,667.80 million on March 31, 2015 to $1,450.23 million on December 31, 2018 (-13.0%). - Bristow has projected its two fixed-wing airlines to be unprofitable on an adjusted EBITDA basis in fiscal year 2019 (which ended on March 31, 2019). - Since mid-2016, Bristow’s owned fleet of 16 model H225 helicopters has not operated commercially, following the fatal crash of another company’s helicopter of the same model. There has been no apparent effort to divest this fleet. To emphasize: it is GVIC’s opinion that even in the face of stunning declines in revenue, operating income and adjusted EBITDA, Bristow’s board failed to take even the most basic steps to rein in operating expenses or eliminate unprofitable or idled operations. The precipitous decline in the price of the common stock is a scathing indictment of the board’s inability to guide Bristow’s corporate strategy in a manner even remotely beneficial to shareholders.

CHAIN OF BAD DECISIONS
Rather than undertake the difficult and diligent work necessary to improve Bristow’s business and balance sheet, on November 9, 2018, Bristow’s board approved a self-described “transformational” acquisition of Columbia Helicopters, Inc. (“Columbia”) for $560 million. Bristow proposed funding the acquisition through the issuance of a bridge loan (with a rate of LIBOR plus 8.0%), a convertible note (converting into approximately 26.2 million newly issued shares of common stock), and the issuance of an additional 7.1 million shares of common stock – an inexplicably expensive financing package. The Columbia acquisition ultimately would have diluted existing Bristow shareholders by approximately 93%. GVIC opposed the acquisition, issuing a public letter on January 8, 2019 following repeated efforts to engage with Bristow’s board. Fortunately, Bristow and Columbia terminated the acquisition on February 11, 2019; however, the termination resulted in Bristow paying a $20 million termination fee to Columbia. In the midst of a deteriorating financial situation, and on the heels of terminating the Columbia acquisition, Bristow announced that it was unable to file its Form 10-Q for the quarter ended December 31, 2018 in a timely manner and further identified a material weakness in internal controls over financial reporting. Despite this announcement, on March 1, 2019, Bristow’s board promoted the CFO, L. Don Miller, to the position of CEO, filling a vacancy created by the departure of former CEO Jonathan Baliff. It is GVIC’s firm opinion that the hasty promotion of a senior executive who was intimately involved in Bristow’s failed financial undertakings is a testament to the poor business judgement and sense of timing demonstrated by Bristow’s directors."

[gulliBell]

...Despite this announcement, on March 1, 2019, Bristow’s board promoted the CFO, L. Don Miller, to the position of CEO, filling a vacancy created by the departure of former CEO Jonathan Baliff. It is GVIC’s firm opinion that the hasty promotion of a senior executive who was intimately involved in Bristow’s failed financial undertakings is a testament to the poor business judgement and sense of timing demonstrated by Bristow’s directors."

A bit harsh. They failed to take into account that L. Don Miller is also the Chief Captain, and Chief Banker, and thus represents a significantly better value proposition to the Company as CEO than the previous incumbent.

[AnFI]

i saw BA blew $850m on fuel hedging, management eh?

[havick]

i saw BA blew $850m on fuel hedging, management eh?

not as bad as Cathay’s fuel hedging

[gulliBell]

Yeah. Cathay Pacific blew billions of dollars on a bad fuel hedge. And I think those responsible for the calamity were promoted in the Swire organization, and got their bonuses paid, etc.

[pants on fire...]

Promotions. Bonuses? Ah, Bristow...http://i191.photobucket.com/albums/z74/Tail-take-off/TheGravyBoatFalklands1991.jpg

[[email protected]]

That looks suspiciously like the Falklands Pantsonfire

[212man]

That looks suspiciously like the Falklands Pantsonfire

Yes it is...

[rotor-rooter]

https://www.ainonline.com/aviation-news/general-aviation/2019-04-24/new-director-slate-management-proposed-bristowNew Director Slate, Management Proposed for Bristowby Mark Huber (https://www.ainonline.com/mark-huber)
- April 24, 2019, 10:03 PMWisconsin-based Global Value Investment Corp. (GVIC) continued its assault on Bristow Group’s directors and senior managers on April 24. GVIC filed a proxy statement with the U.S. Securities and Exchange Commission (SEC) that stated that it intended to nominate a new slate of directors at the heavily indebted helicopter services company’s next annual shareholders’ meeting, which has yet to be scheduled. GVIC maintains that Bristow’s current leadership is defective and that its anticipated future bankruptcy filing would be ill-advised. “Bristow’s current directors have overseen a remarkable destruction of value,” said GVIC CEO Jeffrey Geygan. “Improvements at Bristow are long overdue.”

The proposed slate of four directors includes Sten Gustafson, the former CEO of helicopter services company Era Group and a former director at CHC Helicopter. Gustafson, who is also an international law attorney, assisted with founding a private helicopter service in Saudi Arabia. During his tenure at Era from 2017 to 2018, Gustafson financially de-levered that company while generating record quarterly revenues. The other three proposed directors include GVIC CEO Geygan; Anthony Gray, an attorney who led helicopter maker Sikorsky’s global compliance office from 2010 to 2013; and Jonathan Meretsky, an attorney who has served as managing director at Canada’s Merit House investment firm since 2009 and is an expert on “ocean-tech” as it relates to the global oil and gas industry. Meretsky currently owns 65,602 shares of Bristow while GVIC controls 245,940 shares. The combined position amounts to approximately one percent of Bristow’s shares outstanding. GVIC took its position in Bristow in June 2017 at prices between $7 to $8 per share. Bristow had traded as high as $80 per share in 2014. Its stock is now trading in the range of 50 cents per share after trading as high as $18 per share in May 2018. Earlier this month the credit rating agency Moody’s downgraded Bristow’s debt rating to Caa3—very high credit risk.

In its filing Wednesday with the SEC, GVIC noted that Bristow’s leadership had made a “chain of bad decisions” including the “inexplicably expensive financing package” proposed for the aborted $560 million acquisition of Columbia Helicopters late last year. “GVIC believes recent events represent the culmination of years of mismanagement, poor strategic decisions, weak oversight, and reckless execution by Bristow’s board. It is GVIC’s opinion that the board has been entirely ineffective in delivering value to shareholders and has repeatedly neglected its core duty—to protect shareholders’ interests. It has overseen the severe deterioration of Bristow’s financial and operational position over several years and in the process threatened permanent impairment to Bristow’s shareholders, bondholders, employees, customers, vendors, partners, and the company’s reputation as a preeminent provider of industrial aviation services,” the company wrote in its SEC filing. GVIC again criticized the promotion of L. Don Miller from Bristow chief financial officer (CFO) to CEO (https://www.ainonline.com/aviation-news/general-aviation/2019-04-22/shareholder-blasts-bristows-board-leaders) on March 1, calling it a “testament to the poor business judgment and sense of timing demonstrated by Bristow’s directors.” GVIC alleges that Miller was “intimately involved in Bristow’s failed financial undertakings.”

Those included the acquisition of fixed-wing operators Eastern Airways and Airnorth, maintaining a large equity position in Brazilian operator Lider Aviacao, and failing to make timely disposal of fallow assets such as Bristow’s current fleet of 16 parked Airbus H225 class heavy helicopters, including two that are SAR provisioned.

In an interview with AIN on Wednesday, GVIC senior executives, including Jeffrey Geygan, said Bristow could cut debt and improve operating performance “outside of bankruptcy,” pointing out that the company still has $900 million in assets and roughly $202 million in cash or cash equivalents against debts of $1.4 billion. “Among the [Bristow] equity and debt holders that we have spoken with about the state of Bristow’s finances, there is a strong belief and consensus that this company can be rehabilitated outside of Chapter 11 [bankruptcy].” Geygan said that included helicopter leasing companies who are “not eager” to take Bristow helicopters back. He said the view was echoed by senior industry executives that GVIC has spoken to outside of Bristow.

Bristow could raise additional cash quickly by disposing of underperforming assets, according to GVIC vice president James Geygan. “These assets would have significant value in the hands of the correct strategic operator,” James Geygan said, adding that certain equity investors in Bristow had made written offers of additional operating capital.

[lowfat]

https://www.bizjournals.com/houston/news/2019/05/08/struggling-helicopter-co-issues-millions-of.html

so dont pay a 12 million dollar loan repayment pay yourself 2 million dollars instead.

This is the full filling Changes director pay from shares to cash, large cash retainers, delays 20 odd ec175s and forecasts all debt as short term.

https://www.streetinsider.com/SEC+Filings/Form+8-K+Bristow+Group+Inc+For%3A+May+01/15466515.html

certainly makes all the pay freezes worth while......

[Banzai-blades]

As was forecasted.
https://www.helis.com/database/news/nyse-bristow-stock/

[212man]

Here's the same article without having to sign up to read it all: https://www.bizjournals.com/houston/news/2019/05/08/struggling-helicopter-co-issues-millions-of.html?ana=yahoo&yptr=yahoo (https://www.bizjournals.com/houston/news/2019/05/08/struggling-helicopter-co-issues-millions-of.html?ana=yahoo&yptr=yahoo)

[LesPretend]

It’s so absurd they just might just get away with it.

Interestingly it’s not just those 4, 5 others got a retention payment too so that’s likely to be another few mil from the dwindling fire.

Surely those payments should have been made after the year was out?

Must stick in the throats of some of the workforce who have lost $1000s with the share collapse.

Investments can go up as well as down of course (unless you are in the BRS senior management team, then everything is on the up!!)

[dingo9]

This is really outrageous. CEO is on a massive cash retainer paid quarterly, and will receive a bonus for successfully ‘ exploring suitable strategic and financial alternatives’ ie. Ch 11 or Bankruptcy... they are literally robbing the last few dollars BRS has.
Workforce must feel really valued.

[sanddancer]

Senior management will keep milking the cash cow as hard as they can for as long as they can then, when it all goes belly-up they'll wander off saying it wasn't their fault and be offered another seat on the management merry-go-round by one of their buddies...

They are almost all, to a man, completely morally bankrupt.

As long as you view them like that from the outset you won't be disappointed sadly.

[DOUBLE BOGEY]

Imagine what the Oil Company’s must think. What chance of scoring good work when they can see where the money is misappropriated. Ok they maybe should get a good salary and a sensible bonus based on real achievement. But to self award such outrageous sums as the Company circles the drain is an insult to the hard working men and women in Bristows

[industry insider]

Imagine what the Oil Company’s must think.

Indeed, I was with 3 oil companies yesterday, all less than impressed, none wants to deal with Bristow as with its financial situation, things don't appear to be managed properly. Bonuses are for achievement, not for running the company into the ground.

[Hot_LZ]

But yet they insist all employees complete Code of Business Integrity and Anti Corruption training. Oh the hypocrisy....

LZ

[Hedski]

Yet BP see fit to give them all their U.K. operations, and others trust CHC previously Ch11 and now with striking staff. You have to love it.

[tonkaplonka]

Yet BP see fit to give them all their U.K. operations, and others trust CHC previously Ch11 and now with striking staff. You have to love it.
I think the oil companies will be happy to use Bristow as they can get contracts at a rock bottom price in the short term at least. Bristow needs cash flow in any way possible at the moment and operating at a loss is better than not operating at all. Just my opinion.

[DOUBLE BOGEY]

operating at a loss is better than not operating at all. Just my opinion.

Management Material !!

[industry insider]

Tonka Plonka wrote:

I think the oil companies will be happy to use Bristow as they can get contracts at a rock bottom price in the short term at least. Bristow needs cash flow in any way possible at the moment and operating at a loss is better than not operating at all. Just my opinion.

Well its wrong. BRS has been selling aircraft assets to raise cash which it has then spent on financing loss making operations and to a lesser extent, management bonuses and payouts. That is exactly why BRS is in the position it is in today. If you don't make an operating profit as a supplier of aviation services, you are on the short path to real bankruptcy, not just bankruptcy protection.

[Framework]

Yet BP see fit to give them all their U.K. operations, and others trust CHC previously Ch11 and now with striking staff. You have to love it.

I hear strike is now off and rumor is that CC chair has also resigned from council.

[nomorehelosforme]

Surely if/when this goes completely tits up the receivers will be carrying out detailed audits of these type of payments, along with financial forensic experts with a view to possible criminal prosecutions.

[Pittsextra]

I think some need to understand the difference between cashflow and profit/ loss. It certainly wouldnt be unusual to continue to trade in a loss making position if one believes it is a short term position. What is perhaps more unusual is how by mid 2019 we continue to pick over the bones of BRS when it was fairly obviously fukked a long time ago.

[Pittsextra]

Surely if/when this goes completely tits up the receivers will be carrying out detailed audits of these type of payments, along with financial forensic experts with a view to possible criminal prosecutions.


No the receiver will just ensure his fee will get paid there will be no forensic anything and actually as much as many love to believe they could have, should have, would have..... where are they? Where are all these genius executives that want to run the obviously viable business???

[SASless]

If you are serious about saving a company....you have to cut your losses...sell off what you can....trim every....every....every....every expense (that includes executive bonuses, salaries, and perks, and forget about what used to be).....and deal with what you have left that turns a profit.

That ain't gonna happen with the current management anymore than it did with the previous sets of management.

[Sumpor Stylee]

That include the $2m apparently paid to the initial UKSAR BUL (read minister for photo opportunities but clueless about SAR) who once the cost cutting was initially achieved bailed with that bonus back to the America’s side of the business?

[barbados sky]

https://cimg0.ibsrv.net/gimg/pprune.org-vbulletin/1418x1890/screen_shot_2019_05_11_at_10_32_21_pm_f8a7d15357917eb8f37700 c917601e796152b609.png

[Self loading bear]

Bardados, briljant as usual!!!
The message from Don as just posted by Lespretend contains a wide content between the lines.
I trust you will bring forward that message in due time.
For all Bristow personell I truly wist you strength in the coming times.

SLB