News Release
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Bristow Group Reports Financial Results For Its 2013 Fiscal First Quarter Ended June 30, 2012
Operating revenue for the
Adjusted earnings before interest, taxes, depreciation, amortization and rent ("Adjusted EBITDAR"), which excludes asset dispositions and a special item, increased 26% to
The
- A loss on disposal of assets of
$5.3 million (which includes non-cash impairment charges of$1.9 million associated with aircraft held for sale), compared with a gain on disposal of assets of$1.4 million in theJune 2011 quarter, - A special charge of
$2.2 million for severance costs related to the termination of a contract in theSouthern North Sea , and - Compensation expense of approximately
$2.0 million included in general and administrative expense related to the departure of an officer of the Company.
"The strong operating performance we experienced in our fiscal 2012 fourth quarter continued in the first quarter of fiscal 2013," said
Mr. Chiles continued, "We are expecting the solid revenue growth experienced over the recent quarters to continue throughout the remainder of fiscal 2013, and anticipate strong adjusted EBITDAR margins. The Bristow Client Promise – to provide unmatched safety, reliability and hassle-free service – is making a real difference for our clients and as a result, we are being awarded new contracts with better terms for our value proposition."
FIRST QUARTER FY2013 RESULTS
- Operating revenue increased 12% to
$320.7 million compared to$286.8 million in the same period a year ago. - Operating income increased 10% to
$40.0 million compared to$36.4 million in theJune 2011 quarter. - Net income increased 12% to
$23.7 million , or$0.65 per diluted share, compared to$21.0 million , or$0.57 per diluted share, in theJune 2011 quarter. Adjusted net income increased 49% to$29.6 million , or$0.81 per diluted share, compared to$19.9 million , or$0.54 per diluted share, in theJune 2011 quarter. - Adjusted EBITDAR increased 26% to
$84.3 million compared to$67.0 million in the same period a year ago. - Cash totaled
$227.3 million and our total liquidity, which includes cash and borrowing availability on our$200 million revolving credit facility, was$387 million as ofJune 30, 2012 .
There continues to be strong demand both from new and existing clients in the
Activity levels continue to be strong in our West Africa Business Unit, where we saw a 12% increase in flight hours over the
The addition of S-92 large aircraft to our fleet of our North America Business Unit continues to drive operating improvement in the U.S. Gulf of
Despite a decrease in operating revenue in our Australia Business Unit, adjusted EBITDAR improved 25% and adjusted EBITDAR margin improved 34% over the
Our Other International Business Unit was negatively affected by a decline in activity in
CONTRACT AWARDS
We recently announced that we have secured several major new multi-year contracts for the provision of a total of 20 large aircraft that are expected to generate in excess of
DIVIDEND
On
GUIDANCE
Bristow is reaffirming today the adjusted earnings per share guidance provided in
"Our 2013 guidance reaffirmation is based on the results of this historically strong first quarter of our fiscal year," said
As a reminder, our GAAP earnings per share guidance does not include unrealized gains and losses on disposals of assets as well as special items because their timing and amounts are more variable and less predictable. This guidance is based on current foreign currency exchange rates. In providing this guidance, the Company has not included the impact of any changes in accounting standards and any impact from significant acquisitions and divestitures. Changes in events or other circumstances that the Company cannot currently anticipate or predict could result in earnings per share for fiscal year 2013 that are significantly above or below this guidance. Factors that could cause such changes are described below under Forward-Looking Statements Disclosure.
CONFERENCE CALL
Management will conduct a conference call starting at
Via Webcast:
- Visit
Bristow Group 's investor relations Web page at www.bristowgroup.com - Live: Click on the link for "Bristow Group Fiscal 2013 First Quarter Earnings Conference Call"
- Replay: A replay via webcast will be available approximately one hour after the call's completion and will be accessible for approximately 90 days
Via Telephone within the U.S.:
- Live: Dial toll free 1-877-941-0843
- Replay: A telephone replay will be available through
August 21, 2012 and may be accessed by calling toll free 1-800-406-7325, passcode: 4552131#
Via Telephone outside the U.S.:
- Live: Dial 1-480-629-9819
- Replay: A telephone replay will be available through
August 21, 2012 and may be accessed by calling 1-303-590-3030, passcode: 4552131#
ABOUT
FORWARD-LOOKING STATEMENTS DISCLOSURE
Statements contained in this news release that state the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. These forward-looking statements include statements regarding earnings guidance, revenue growth, margins, the impact of activity levels, business performance, and other market and industry conditions. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's
Investor Relations
(713) 267-7622
(financial tables follow)
BRISTOW GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts, percentages and flight hours) (Unaudited)
|
|||||||||
Three Months Ended |
|||||||||
June 30, |
|||||||||
2012 |
2011 |
||||||||
Gross Revenue: |
|||||||||
Operating revenue |
$ |
320,654 |
$ |
286,761 |
|||||
Reimbursable revenue |
41,954 |
34,344 |
|||||||
Total gross revenue |
362,608 |
321,105 |
|||||||
Operating expense: |
|||||||||
Direct cost |
222,768 |
196,622 |
|||||||
Reimbursable expense |
40,172 |
33,134 |
|||||||
Depreciation and amortization |
21,372 |
22,708 |
|||||||
General and administrative |
34,977 |
39,645 |
|||||||
319,289 |
292,109 |
||||||||
Gain (loss) on disposal of assets |
(5,315) |
1,416 |
|||||||
Earnings from unconsolidated |
|||||||||
affiliates, net of losses |
1,989 |
5,993 |
|||||||
Operating income |
39,993 |
36,405 |
|||||||
Interest expense, net |
(8,686) |
(8,784) |
|||||||
Other income (expense), net |
(931) |
204 |
|||||||
Income before provision for income taxes |
30,376 |
27,825 |
|||||||
Provision for income taxes |
(6,180) |
(6,606) |
|||||||
Net income |
24,196 |
21,219 |
|||||||
Net income attributable to noncontrolling interests |
(534) |
(174) |
|||||||
Net income attributable to Bristow Group |
$ |
23,662 |
$ |
21,045 |
|||||
Diluted earnings per common share |
$ |
0.65 |
$ |
0.57 |
|||||
Operating margin |
12.5% |
12.7% |
|||||||
Flight hours |
55,128 |
54,056 |
|||||||
Non-GAAP financial measures: |
|||||||||
Adjusted operating income |
$ |
47,470 |
$ |
34,989 |
|||||
Adjusted operating income margin |
14.8% |
12.2% |
|||||||
Adjusted EBITDAR |
$ |
84,273 |
$ |
67,025 |
|||||
Adjusted EBITDAR margin |
26.3% |
23.4% |
|||||||
Adjusted net income |
$ |
29,618 |
$ |
19,878 |
|||||
Adjusted diluted earnings per share |
$ |
0.81 |
$ |
0.54 |
BRISTOW GROUP INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
|
||||||||
June 30, |
March 31, |
|||||||
2012 |
2012 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
227,250 |
$ |
261,550 |
||||
Accounts receivable from non-affiliates |
287,131 |
280,985 |
||||||
Accounts receivable from affiliates |
4,828 |
5,235 |
||||||
Inventories |
157,543 |
157,825 |
||||||
Assets held for sale |
18,100 |
18,710 |
||||||
Prepaid expenses and other current assets |
12,239 |
12,168 |
||||||
Total current assets |
707,091 |
736,473 |
||||||
Investment in unconsolidated affiliates |
201,042 |
205,100 |
||||||
Property and equipment – at cost: |
||||||||
Land and buildings |
81,816 |
80,835 |
||||||
Aircraft and equipment |
2,143,073 |
2,099,642 |
||||||
2,224,889 |
2,180,477 |
|||||||
Less – Accumulated depreciation and amortization |
(467,887) |
(457,702) |
||||||
1,757,002 |
1,722,775 |
|||||||
Goodwill |
29,339 |
29,644 |
||||||
Other assets |
45,905 |
46,371 |
||||||
Total assets |
$ |
2,740,379 |
$ |
2,740,363 |
||||
LIABILITIES AND STOCKHOLDERS' INVESTMENT |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
57,876 |
$ |
56,084 |
||||
Accrued wages, benefits and related taxes |
42,815 |
44,325 |
||||||
Income taxes payable |
9,910 |
9,732 |
||||||
Other accrued taxes |
6,653 |
5,486 |
||||||
Deferred revenue |
12,914 |
14,576 |
||||||
Accrued maintenance and repairs |
16,182 |
14,252 |
||||||
Accrued interest |
7,950 |
2,300 |
||||||
Other accrued liabilities |
26,615 |
23,005 |
||||||
Deferred taxes |
14,963 |
15,070 |
||||||
Short-term borrowings and current maturities of long-term debt |
16,562 |
14,375 |
||||||
Total current liabilities |
212,440 |
199,205 |
||||||
Long-term debt, less current maturities |
719,737 |
742,870 |
||||||
Accrued pension liabilities |
109,792 |
111,742 |
||||||
Other liabilities and deferred credits |
14,823 |
16,768 |
||||||
Deferred taxes |
142,388 |
147,954 |
||||||
Stockholders' investment: |
||||||||
Common shares |
363 |
363 |
||||||
Additional paid-in capital |
705,984 |
703,628 |
||||||
Retained earnings |
1,009,952 |
993,435 |
||||||
Accumulated other comprehensive loss |
(158,934) |
(159,239) |
||||||
Treasury shares |
(25,085) |
(25,085) |
||||||
Total Bristow Group Inc. stockholders' investment |
1,532,280 |
1,513,102 |
||||||
Noncontrolling interests |
8,919 |
8,722 |
||||||
Total stockholders' investment |
1,541,199 |
1,521,824 |
||||||
Total liabilities and stockholders' investment |
$ |
2,740,379 |
$ |
2,740,363 |
BRISTOW GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
|
||||||||
Three Months Ended |
||||||||
June 30, |
||||||||
2012 |
2011 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
$ |
24,196 |
$ |
21,219 |
||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
21,372 |
22,708 |
||||||
Deferred income taxes |
(6,071) |
2,949 |
||||||
Discount amortization on long-term debt |
870 |
822 |
||||||
Loss (gain) on disposal of assets |
5,315 |
(1,416) |
||||||
Stock-based compensation |
2,848 |
5,196 |
||||||
Equity in earnings from unconsolidated affiliates less than (in excess of) dividends received |
4,129 |
(1,393) |
||||||
Tax benefit related to stock-based compensation |
(404) |
(101) |
||||||
Increase (decrease) in cash resulting from changes in: |
||||||||
Accounts receivable |
(10,081) |
10,640 |
||||||
Inventories |
(1,869) |
(5,420) |
||||||
Prepaid expenses and other assets |
3,816 |
3,701 |
||||||
Accounts payable |
960 |
(5,527) |
||||||
Accrued liabilities |
11,212 |
459 |
||||||
Other liabilities and deferred credits |
(881) |
(948) |
||||||
Net cash provided by operating activities |
55,412 |
52,889 |
||||||
Cash flows from investing activities: |
||||||||
Capital expenditures |
(86,555) |
(72,235) |
||||||
Proceeds from asset dispositions |
20,227 |
833 |
||||||
Investment in unconsolidated affiliates |
(850) |
— |
||||||
Net cash used in investing activities |
(67,178) |
(71,402) |
||||||
Cash flows from financing activities: |
||||||||
Proceeds from borrowings |
— |
55,000 |
||||||
Repayment of debt and debt redemption premiums |
(21,800) |
(31,274) |
||||||
Partial prepayment of put/call obligation |
(17) |
(15) |
||||||
Common stock dividends paid |
(7,145) |
(5,410) |
||||||
Issuance of common stock |
311 |
1,183 |
||||||
Tax benefit related to stock-based compensation |
404 |
101 |
||||||
Net cash provided by (used in) financing activities |
(28,247) |
19,585 |
||||||
Effect of exchange rate changes on cash and cash equivalents |
5,713 |
(363) |
||||||
Net increase (decrease) in cash and cash equivalents |
(34,300) |
709 |
||||||
Cash and cash equivalents at beginning of period |
261,550 |
116,361 |
||||||
Cash and cash equivalents at end of period |
$ |
227,250 |
$ |
117,070 |
BRISTOW GROUP INC. AND SUBSIDIARIES SELECTED OPERATING DATA (In thousands, except flight hours and percentages) (Unaudited)
|
|||||||
Three Months Ended |
|||||||
June 30, |
|||||||
2012 |
2011 |
||||||
Flight hours (excludes Bristow Academy and unconsolidated affiliates): |
|||||||
Europe |
17,236 |
14,182 |
|||||
West Africa |
10,754 |
9,629 |
|||||
North America |
20,169 |
20,434 |
|||||
Australia |
2,792 |
3,382 |
|||||
Other International |
4,177 |
6,429 |
|||||
Consolidated total |
55,128 |
54,056 |
|||||
Operating revenue: |
|||||||
Europe |
$ |
123,235 |
$ |
108,288 |
|||
West Africa |
66,355 |
52,251 |
|||||
North America |
52,625 |
43,913 |
|||||
Australia |
38,171 |
40,920 |
|||||
Other International |
33,227 |
34,549 |
|||||
Corporate and other |
7,420 |
6,847 |
|||||
Intrasegment eliminations |
(379) |
(7) |
|||||
Consolidated total |
$ |
320,654 |
$ |
286,761 |
|||
Operating income (loss): |
|||||||
Europe |
$ |
21,876 |
$ |
23,249 |
|||
West Africa |
16,131 |
11,231 |
|||||
North America |
6,475 |
1,584 |
|||||
Australia |
6,509 |
4,524 |
|||||
Other International |
7,387 |
11,910 |
|||||
Corporate and other |
(13,070) |
(17,509) |
|||||
Gain (loss) on disposal of assets |
(5,315) |
1,416 |
|||||
Consolidated total |
$ |
39,993 |
$ |
36,405 |
|||
Operating margin: |
|||||||
Europe |
17.8% |
21.5% |
|||||
West Africa |
24.3% |
21.5% |
|||||
North America |
12.3% |
3.6% |
|||||
Australia |
17.1% |
11.1% |
|||||
Other International |
22.2% |
34.5% |
|||||
Consolidated total |
12.5% |
12.7% |
|||||
Three Months Ended |
|||||||
June 30, |
|||||||
2012 |
2011 |
||||||
Adjusted EBITDAR: |
|||||||
Europe |
$ |
39,664 |
$ |
35,700 |
|||
West Africa |
21,163 |
15,430 |
|||||
North America |
12,200 |
6,267 |
|||||
Australia |
10,325 |
8,281 |
|||||
Other International |
12,014 |
16,624 |
|||||
Corporate and other |
(11,093) |
(15,277) |
|||||
Consolidated total |
$ |
84,273 |
$ |
67,025 |
|||
Adjusted EBITDAR margin: |
|||||||
Europe |
32.2% |
33.0% |
|||||
West Africa |
31.9% |
29.5% |
|||||
North America |
23.2% |
14.3% |
|||||
Australia |
27.0% |
20.2% |
|||||
Other International |
36.2% |
48.1% |
|||||
Consolidated total |
26.3% |
23.4% |
BRISTOW GROUP INC. AND SUBSIDIARIES AIRCRAFT COUNT As of June 30, 2012 (Unaudited)
|
|||||||||||||||||
Aircraft in Consolidated Fleet |
|||||||||||||||||
Helicopters |
|||||||||||||||||
Small |
Medium |
Large |
Training |
Fixed Wing |
Unconsolidated |
||||||||||||
Total |
Total |
||||||||||||||||
Europe |
— |
15 |
43 |
— |
— |
58 |
64 |
122 |
|||||||||
West Africa |
10 |
25 |
7 |
— |
3 |
45 |
— |
45 |
|||||||||
North America |
67 |
22 |
2 |
— |
— |
91 |
— |
91 |
|||||||||
Australia |
2 |
10 |
16 |
— |
— |
28 |
— |
28 |
|||||||||
Other International |
4 |
40 |
14 |
— |
— |
58 |
130 |
188 |
|||||||||
Corporate and other |
— |
— |
— |
77 |
— |
77 |
— |
77 |
|||||||||
Total |
83 |
112 |
82 |
77 |
3 |
357 |
194 |
551 |
|||||||||
Aircraft not currently in fleet: (4) |
|||||||||||||||||
On order |
— |
— |
17 |
— |
— |
17 |
|||||||||||
Under option |
— |
12 |
24 |
— |
— |
36 |
_________
(1) |
Includes 17 aircraft held for sale and 56 leased aircraft as follows: |
Held for Sale Aircraft in Consolidated Fleet |
|||||||||||||
Helicopters |
|||||||||||||
Small |
Medium |
Large |
Training |
Fixed |
Total |
||||||||
Europe |
— |
2 |
3 |
— |
— |
5 |
|||||||
West Africa |
— |
1 |
— |
— |
— |
1 |
|||||||
North America |
— |
— |
— |
— |
— |
— |
|||||||
Australia |
— |
1 |
3 |
— |
— |
4 |
|||||||
Other International |
— |
7 |
— |
— |
— |
7 |
|||||||
Corporate and other |
— |
— |
— |
— |
— |
— |
|||||||
Total |
— |
11 |
6 |
— |
— |
17 |
|||||||
Leased Aircraft in Consolidated Fleet |
|||||||||||||
Helicopters |
|||||||||||||
Small |
Medium |
Large |
Training |
Fixed |
Total |
||||||||
Europe |
— |
— |
8 |
— |
— |
8 |
|||||||
West Africa |
— |
1 |
— |
— |
— |
1 |
|||||||
North America |
1 |
11 |
2 |
— |
— |
14 |
|||||||
Australia |
2 |
— |
1 |
— |
— |
3 |
|||||||
Other International |
— |
— |
— |
— |
— |
— |
|||||||
Corporate and other |
— |
— |
— |
30 |
— |
30 |
|||||||
Total |
3 |
12 |
11 |
30 |
— |
56 |
(2) |
The average age of our fleet, excluding training aircraft, was 12 years as of June 30, 2012. |
(3) |
The 194 aircraft operated by our unconsolidated affiliates do not include those aircraft leased from us. |
(4) |
This table does not reflect aircraft which our unconsolidated affiliates may have on order or under option. |
BRISTOW GROUP INC. AND SUBSIDIARIES |
|||||||||
These financial measures have not been prepared in accordance with generally accepted accounting principles ("GAAP") and have not been audited or reviewed by our independent auditor. These financial measures are therefore considered non-GAAP financial measures. Adjusted EBITDAR is calculated by taking our net income and adjusting for interest expense, depreciation and amortization, rent expense, benefit (provision) for income taxes, gain (loss) on disposal of assets and special items, if any. Adjusted operating income, adjusted net income and adjusted diluted earnings per share are each adjusted for gain (loss) on disposal of assets and special items, if any, during the reported periods. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding our results because they exclude amounts that management does not consider when assessing and measuring the operational and financial performance of the organization. A description of the adjustments to and reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measures is as follows: |
|||||||||
Three Months Ended |
|||||||||
June 30, |
|||||||||
2012 |
2011 |
||||||||
(In thousands, except per |
|||||||||
Adjusted operating income |
$ |
47,470 |
$ |
34,989 |
|||||
Gain (loss) on disposal of assets |
(5,315) |
1,416 |
|||||||
Severance costs for termination of a contract |
(2,162) |
— |
|||||||
Operating income |
$ |
39,993 |
$ |
36,405 |
|||||
Adjusted EBITDAR |
$ |
84,273 |
$ |
67,025 |
|||||
Gain (loss) on disposal of assets |
(5,315) |
1,416 |
|||||||
Severance costs for termination of a contract |
(2,162) |
— |
|||||||
Depreciation and amortization |
(21,372) |
(22,708) |
|||||||
Rent expense |
(16,274) |
(8,953) |
|||||||
Interest expense |
(8,774) |
(8,955) |
|||||||
Provision for income taxes |
(6,180) |
(6,606) |
|||||||
Net income |
$ |
24,196 |
$ |
21,219 |
|||||
Adjusted net income |
$ |
29,618 |
$ |
19,878 |
|||||
Gain (loss) on disposal of assets |
(4,234) |
1,167 |
|||||||
Severance costs for termination of a contract |
(1,722) |
— |
|||||||
Net income attributable to Bristow Group |
$ |
23,662 |
$ |
21,045 |
|||||
Adjusted diluted earnings per share |
$ |
0.81 |
$ |
0.54 |
|||||
Gain (loss) on disposal of assets |
(0.12) |
0.03 |
|||||||
Severance costs for termination of a contract |
(0.05) |
— |
|||||||
Diluted earnings per share |
0.65 |
0.57 |
SOURCE