Bristow results
 

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

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

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

SAME AGAIN

Do you work for Bristow?

'':D

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

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

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

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

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

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

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

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

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

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

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

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

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

https://www1.salary.com/Jonathan-E-Baliff-Salary-Bonus-Stock-Options-for-BRISTOW-GROUP-INC.html
https://www1.salary.com/Chet-Akiri-Salary-Bonus-Stock-Options-for-BRISTOW-GROUP-INC.html

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

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

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

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

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

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

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

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

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