Bristow Group Inc. (BRS, Financial) filed Quarterly Report for the period ended 2010-12-31.
Bristow Group has a market cap of $1.88 billion; its shares were traded at around $51.95 with a P/E ratio of 16.4 and P/S ratio of 1.6. Bristow Group had an annual average earning growth of 9% over the past 10 years. GuruFocus rated Bristow Group the business predictability rank of 4.5-star.Hedge Fund Gurus that owns BRS: Jim Simons of Renaissance Technologies LLC, Kenneth Fisher of Fisher Asset Management, LLC. Mutual Fund and Other Gurus that owns BRS: Third Avenue Management, Columbia Wanger of Columbia Wanger Asset Management, HOTCHKIS & WILEY of Hotchkis & Wliey Capital Management LLC, PRIMECAP Management.
Our core business is providing helicopter services to the worldwide oil and gas industry. Our customers operating expenditures in the production sector are the principal source of our revenue, while their exploration and development capital expenditures provide a lesser portion of our revenue. Our customers typically base their capital expenditure budgets on their long-term commodity price expectations and not exclusively on the current spot price. In 2009, the credit, equity and commodity markets were volatile, causing many of our oil and gas company customers to reduce capital spending plans and defer projects. During 2010, oil prices ranged from approximately $65 to $92 per barrel and access to capital improved. We believe that the continued stability of oil prices and improved access to capital should lead to confidence among our customers and increased capital expenditure budgets and we are seeing some larger projects moving ahead that were previously on hold.
As discussed in “Item 1A. Risk Factors” in the fiscal year 2010 Annual Report, we are subject to competition and the political environment in the countries where we operate. In one of these markets, Nigeria, we have seen a recent increase in competitive pressure and new regulation that could impact our ability to win future work at levels previously anticipated. During the Current Period, in both Nigeria and Australia we had major customers re-bid contracts we were incumbents on and awarded these to competitors. The contract in Nigeria provided us with annualized revenue of approximately $42 million and ended in the Current Period. The contract in Australia provides us with annualized revenue of approximately $40 million and ends May 31, 2011. Despite the current competitive environments in these markets as well as the regulatory environment in Nigeria, we expect the lost revenue to eventually be offset by new contract awards with other customers and increased ad hoc flying in these regions.
We expect that our cash on deposit as of December 31, 2010 of $100.9 million, cash flow from operations and proceeds from aircraft sales, as well as the borrowing capacity under our amended and restated revolving credit and term loan agreement, will be sufficient to satisfy our capital commitments, including our remaining aircraft purchase commitments of $105.3 million as of December 31, 2010. We have raised approximately $1.3 billion of capital in a mix of debt and equity with both public and private financings since fiscal year 2007, and we intend to continue managing our capital structure and liquidity position relative to our commitments with external financings when necessary. In November 2010, we increased our liquidity by $75 million with our amended and restated revolving credit and term loan agreement.
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Bristow Group has a market cap of $1.88 billion; its shares were traded at around $51.95 with a P/E ratio of 16.4 and P/S ratio of 1.6. Bristow Group had an annual average earning growth of 9% over the past 10 years. GuruFocus rated Bristow Group the business predictability rank of 4.5-star.Hedge Fund Gurus that owns BRS: Jim Simons of Renaissance Technologies LLC, Kenneth Fisher of Fisher Asset Management, LLC. Mutual Fund and Other Gurus that owns BRS: Third Avenue Management, Columbia Wanger of Columbia Wanger Asset Management, HOTCHKIS & WILEY of Hotchkis & Wliey Capital Management LLC, PRIMECAP Management.
Highlight of Business Operations:
· Prudent balance sheet management. We are focused on engaging in a proactive capital allocation plan with a concentration on achieving business growth and improving shareholder returns, within the dictates of prudent balance sheet management. We have raised approximately $1.3 billion of capital in a mix of debt and equity with both public and private financings since fiscal year 2007, and we intend to continue managing our capital structure and liquidity position relative to our commitments with external financings when necessary. In November 2010, we increased our liquidity by $75 million with our amended and restated revolving credit and term loan agreement. Our debt to capitalization ratio was 34.6% as of March 31, 2010 and 33.0% as of December 31, 2010.Our core business is providing helicopter services to the worldwide oil and gas industry. Our customers operating expenditures in the production sector are the principal source of our revenue, while their exploration and development capital expenditures provide a lesser portion of our revenue. Our customers typically base their capital expenditure budgets on their long-term commodity price expectations and not exclusively on the current spot price. In 2009, the credit, equity and commodity markets were volatile, causing many of our oil and gas company customers to reduce capital spending plans and defer projects. During 2010, oil prices ranged from approximately $65 to $92 per barrel and access to capital improved. We believe that the continued stability of oil prices and improved access to capital should lead to confidence among our customers and increased capital expenditure budgets and we are seeing some larger projects moving ahead that were previously on hold.
As discussed in “Item 1A. Risk Factors” in the fiscal year 2010 Annual Report, we are subject to competition and the political environment in the countries where we operate. In one of these markets, Nigeria, we have seen a recent increase in competitive pressure and new regulation that could impact our ability to win future work at levels previously anticipated. During the Current Period, in both Nigeria and Australia we had major customers re-bid contracts we were incumbents on and awarded these to competitors. The contract in Nigeria provided us with annualized revenue of approximately $42 million and ended in the Current Period. The contract in Australia provides us with annualized revenue of approximately $40 million and ends May 31, 2011. Despite the current competitive environments in these markets as well as the regulatory environment in Nigeria, we expect the lost revenue to eventually be offset by new contract awards with other customers and increased ad hoc flying in these regions.
We expect that our cash on deposit as of December 31, 2010 of $100.9 million, cash flow from operations and proceeds from aircraft sales, as well as the borrowing capacity under our amended and restated revolving credit and term loan agreement, will be sufficient to satisfy our capital commitments, including our remaining aircraft purchase commitments of $105.3 million as of December 31, 2010. We have raised approximately $1.3 billion of capital in a mix of debt and equity with both public and private financings since fiscal year 2007, and we intend to continue managing our capital structure and liquidity position relative to our commitments with external financings when necessary. In November 2010, we increased our liquidity by $75 million with our amended and restated revolving credit and term loan agreement.
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