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BRS stock crashing

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BRS stock crashing

Old 19th Feb 2019, 13:07
  #101 (permalink)  
 
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Bristow Investors ? RSS Content ? BRS ? bristowgroup.com

Some of this is a little, er, alarming. Read the whole thing.
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Old 19th Feb 2019, 13:18
  #102 (permalink)  
 
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It’s all much more complex when everything is sold, mortgaged and leased back to produce cash to burn in operating losses.
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Old 19th Feb 2019, 17:56
  #103 (permalink)  
 
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How much do you think the EC225 adventure hurt the company?
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Old 19th Feb 2019, 18:07
  #104 (permalink)  
 
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Originally Posted by Pittsextra View Post
How much do you think the EC225 adventure hurt the company?
thought they had a nice settlement from Airbus?
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Old 19th Feb 2019, 18:10
  #105 (permalink)  
 
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"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%.
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Old 19th Feb 2019, 18:24
  #106 (permalink)  
 
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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!
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Old 19th Feb 2019, 19:02
  #107 (permalink)  
 
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https://www.ainonline.com/aviation-n...copter-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.
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Old 20th Feb 2019, 01:20
  #108 (permalink)  
 
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Originally Posted by Same again View Post
"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?
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Old 20th Feb 2019, 03:32
  #109 (permalink)  
 
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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.

Last edited by industry insider; 20th Feb 2019 at 10:04. Reason: typo corrected
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Old 20th Feb 2019, 04:25
  #110 (permalink)  
 
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So quite a big impact then? I dont really recall BRS exec ever really highlighting such an issue in any prior earnings calls.
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Old 20th Feb 2019, 06:30
  #111 (permalink)  
 
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Originally Posted by LesPretend View Post
So the earnings call has been put back till next week.

I wonder if itís 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?
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Old 20th Feb 2019, 06:37
  #112 (permalink)  
 
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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?
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Old 20th Feb 2019, 06:43
  #113 (permalink)  
 
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Originally Posted by Apate View Post
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?
Actually Iím still hearing quite the opposite.

Im sure all will be revealed in the next few weeks.
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Old 20th Feb 2019, 09:15
  #114 (permalink)  
 
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Originally Posted by Same again View Post
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?
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Old 20th Feb 2019, 10:17
  #115 (permalink)  
 
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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-e...rt=80&count=40

Last edited by industry insider; 20th Feb 2019 at 11:21. Reason: link
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Old 20th Feb 2019, 11:33
  #116 (permalink)  
 
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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?
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Old 20th Feb 2019, 11:47
  #117 (permalink)  
 
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19th Feb - Opens at $1.27
19th Feb 11:30 - $1.33
19th Feb 13:50 - $1.80
19th Feb - Closes at $1.74

35% increase in the space of just 2hrs there. Seems highly unusual without some sort of press release that may explain the reason why?
Someone making a huge 1 day profit there.

Last edited by Mitchaa; 20th Feb 2019 at 13:19.
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Old 20th Feb 2019, 11:54
  #118 (permalink)  
 
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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.
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Old 20th Feb 2019, 12:01
  #119 (permalink)  
 
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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.

Last edited by Same again; 20th Feb 2019 at 12:13.
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Old 20th Feb 2019, 12:17
  #120 (permalink)  
 
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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!
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