FLYING SMART.
FLYING RIGHT.

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News Release

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Bristow Group Reports Financial Results For Its 2015 Fiscal Fourth Quarter And Year Ended March 31, 2015
- FULL YEAR OPERATING REVENUE GROWTH OF 13.9% WITH BRISTOW VALUE ADDED AND CASH FLOW IMPROVEMENT YEAR OVER YEAR, IN SPITE OF U.S. DOLLAR APPRECIATION AND THE INDUSTRY DOWNTURN
- FOURTH QUARTER GAAP EARNINGS PER SHARE OR EPS OF $0.43 PER DILUTED SHARE (NET INCOME OF $15.1 MILLION) AND FISCAL YEAR 2015 GAAP EPS OF $2.37 PER DILUTED SHARE (NET INCOME OF $84.3 MILLION)
- FOURTH QUARTER ADJUSTED EPS OF $0.91 PER DILUTED SHARE (ADJUSTED NET INCOME OF $31.8 MILLION) AND FISCAL YEAR 2015 ADJUSTED EPS OF $3.77 PER DILUTED SHARE (ADJUSTED NET INCOME OF $134.0 MILLION), WHICH EXCLUDE THE IMPACT OF SPECIAL ITEMS AND ASSET DISPOSITIONS
- COMPANY PROVIDES GUIDANCE RANGE FOR FISCAL YEAR 2016 ADJUSTED EPS OF $3.90 - $4.40

HOUSTON, May 20, 2015 /PRNewswire/ -- Bristow Group Inc. (NYSE: BRS) today reported net income for the March 2015 fiscal fourth quarter of $15.1 million, or $0.43 per diluted share, compared to net income of $30.3 million, or $0.83 per diluted share, in the same period a year ago.

Adjusted net income, which excludes special items and asset disposition effects, decreased 35.3% to $31.8 million, or $0.91 per diluted share, for the March 2015 quarter, compared to $49.1 million, or $1.35 per diluted share, in the March 2014 quarter.

Operating revenue was $418.9 million for the March 2015 quarter compared to $404.6 million a year ago, an increase of 3.5%, driven by improvements in our Australia, North America and Europe Business Units. Adjusted earnings before interest, taxes, depreciation, amortization and rent ("adjusted EBITDAR"), which also excludes special items and asset disposition effects, was $126.3 million for the March 2015 quarter compared to $122.9 million in the same period a year ago, an increase of 2.8%. Results for the March 2015 quarter were significantly impacted by changes in foreign exchange rates of $12.9 million, primarily related to the Brazilian real, which decreased diluted earnings per share by $0.29, on an adjusted and unadjusted basis.

"Fiscal 2015 was a successful fiscal year in terms of operational performance, with the Bristow team remaining focused on what is vital: the safety and efficiency of our client's personnel and business," said Jonathan Baliff, President and Chief Executive Officer of Bristow Group.  "Despite the headwinds that emerged during the second half of our fiscal year, we delivered revenue growth, and through the disciplined efforts of our employees, we proactively implemented cost and capital reductions that created FY15's strong Bristow Value Added ("BVA"), adjusted EBITDAR and operating cash flow.  Bristow's performance in the face of this downturn demonstrates the uniqueness of our business model and balance sheet strength, but more importantly the resilience of the Bristow Team."

"We will continue to invest in our future and position Bristow to capitalize on opportunities that emerge, while committing to a balanced return for our shareholders such as our dividend which has more than doubled since its initiation in 2011," added Mr. Baliff.

FISCAL YEAR 2015 RESULTS

  • Operating revenue increased 13.9% to $1.7 billion compared to $1.5 billion a year ago. Large AirCraft Equivalent ("LACE") increased from 158 to 166 while our LACE rate decreased slightly from $9.34 million to $9.21 million during fiscal year 2015.
  • GAAP net income decreased 54.9% to $84.3 million, or $2.37 per diluted share, from $186.7 million, or $5.09 per diluted share, for fiscal year 2014 impacted by a higher gain on sale of unconsolidated affiliates in fiscal year 2014 and a higher loss on disposal of assets, primarily due to non-cash impairment charges related to aircraft of $36.1 million, in fiscal year 2015. 
  • Adjusted net income for fiscal year 2015 decreased 17.9% to $134.0 million, or $3.77 per diluted share, from $163.2 million, or $4.45 per diluted share, in the fiscal year ended March 31, 2014. 
  • Results for fiscal year 2015 were significantly impacted by changes in foreign exchange rates of $39.4 million, primarily related to the Brazilian real, which decreased diluted earnings per share by $0.88 for the period, on an adjusted and unadjusted basis.
  • In addition to the unfavorable impact of changes in foreign exchange rates, results for fiscal year 2015 were significantly impacted by:
    • An increase in general and administrative expense of $54.3 million driven by higher compensation costs of $20.1 million primarily related to improved BVA year-over-year and stock price performance versus our peer group, and higher professional fees of $13.1 million related to ongoing Operations Transformation and other initiatives,
    • A loss on disposal of assets of $35.8 million (primarily due to non-cash impairment charges related to aircraft of $36.1 million) and GAAP non-cash inventory impairment charges of $7.2 million in fiscal year 2015, and
    • Additional depreciation expense related to fleet changes of $10.4 million.
  • We continued to see top line strength in our operations driving an improvement in adjusted EBITDAR of 9.3% to $473.8 million in the current fiscal year from $433.7 million in the prior fiscal year.
  • In terms of cash generation from our operations and management of our capital, net cash provided by operating activities was $253.2 million for fiscal year 2015 compared to $232.1 million for the prior fiscal year. Our total liquidity, which includes cash on hand and availability under our revolving credit facility, was $369.9 million as of March 31, 2015 compared to $529.9 million as of March 31, 2014. The decrease in liquidity year over year primarily related to significant cash expenditures primarily for growth totaling $601.8 million in fiscal year 2015.
  • Our net income and diluted earnings per share were also impacted by an increase in pre-tax rent expense of $59.0 million for fiscal year 2015 compared to the prior year. These increases in rent expense resulted from an increase in the number of leased aircraft compared to the prior fiscal year.

FOURTH QUARTER FISCAL YEAR 2015 RESULTS

  • Operating revenue increased 3.5% to $418.9 million compared to $404.6 million in the March 2014 quarter.
  • Operating income decreased 41.6% to $27.7 million compared to $47.4 million in the March 2014 quarter.
  • GAAP net income decreased 50.3% to $15.1 million, or $0.43 per diluted share, compared to $30.3 million, or $0.83 per diluted share, in the March 2014 quarter.
  • Results for the March 2015 quarter were significantly impacted by changes in foreign exchange rates of $12.9 million, primarily related to the Brazilian real, which decreased diluted earnings per share by $0.29 for the period, on an adjusted and unadjusted basis.
  • In addition to the unfavorable impact of changes in foreign exchange rates, GAAP results for the March 2015 quarter were significantly impacted by:
    • A loss on disposal of assets of $10.3 million (including non-cash impairment charges related to aircraft of $7.3 million), and
    • Additional depreciation expense related to fleet changes of $10.4 million.
  • Despite the impact of changes in foreign exchange rates, adjusted EBITDAR improved 2.8% to $126.3 million for the March 2015 quarter from $122.9 million for the March 2014 quarter primarily as a result of the following:
    • The startup of new contracts in our Australia Business Unit and the addition of Airnorth,
    • The proactive cost reduction efforts realized by our West Africa Business Unit, and
    • A favorable shift in the mix to larger aircraft under contract and improved utilization that benefited our North America Business Unit.
  • Our net income and diluted earnings per share were also impacted by an increase in pre-tax rent expense of $18.8 million for the March 2015 quarter compared to the prior year period. These increases in rent expense resulted from an increase in the number of leased aircraft compared to the prior fiscal year.

FOURTH QUARTER FISCAL YEAR 2015 BUSINESS UNIT RESULTS

Europe Business Unit

Operating revenue for the March 2015 quarter improved in our Europe Business Unit compared to the prior year quarter primarily due to reporting a full quarter of Eastern Airways results and increased activity in Norway. Adjusted EBITDAR margin decreased to 29.9% in the March 2015 quarter compared to 37.3% in the March 2014 quarter primarily due to the absence of $8.5 million in credits for maintenance expense from original equipment manufacturers that were recognized in the March 2014 quarter.  Also negatively impacting adjusted EBITDAR for the March 2015 quarter was a $7.1 million unfavorable impact of changes in foreign exchange rates which was the primary driver of a sequential decline in the adjusted EBITDAR margin from 33.1% in the December 2014 quarter to 29.9% in the March 2015 quarter.

West Africa Business Unit

Operating revenue decreased by 10.0% in our West Africa Business Unit for the March 2015 quarter compared to the March 2014 quarter due to reduced activity. Adjusted EBITDAR increased by 29.3% compared to the March 2014 quarter and adjusted EBITDAR margin increased to 47.7% for the March 2015 quarter compared to 33.2% for the March 2014 quarter. Adjusted EBITDAR and adjusted EBITDAR margin benefited from cost reductions and efficiency gains realized in our operations. Also impacting adjusted EBITDAR and adjusted EBITDAR margin for the March 2015 quarter was a $2.6 million favorable impact of changes in foreign exchange rates. Sequentially, adjusted EBITDAR margin increased from a 34.6% margin in the December 2014 quarter primarily due to the cost reduction efforts. 

North America Business Unit

The North America Business Unit realized increases in operating revenue, adjusted EBITDAR and adjusted EBITDAR margin in the March 2015 quarter compared to the prior year quarter due to an increase in the number of large aircraft on contract and improved utilization. Adjusted EBITDAR and adjusted EBITDAR margin improved to $28.2 million and 48.3%, respectively, in the March 2015 quarter compared to $19.7 million and 35.4%, respectively, in the March 2014 quarter. Sequentially, adjusted EBITDAR margin improved from 40.0% in the December 2014 quarter.

Australia Business Unit

The Australia Business Unit realized increases in operating revenue, adjusted EBITDAR and adjusted EBITDAR margin compared to the prior year quarter primarily as a result of new client contracts and the acquisition of Airnorth in January 2015. Airnorth contributed $11.4 million of operating revenue and $2.1 million of adjusted EBTIDAR during the March 2015 quarter. Operating revenue increased to $62.9 million in the March 2015 quarter from $40.6 million in the March 2014 quarter. Adjusted EBITDAR and adjusted EBITDAR margin increased to $17.6 million and 27.9%, respectively, from $9.7 million and 24.0%, respectively, in the March 2014 quarter. Sequentially, adjusted EBITDAR margin improved from 25.4% in the December 2014 quarter primarily due to the contribution of new contracts.

Other International Business Unit

Operating revenue for our Other International Business Unit compared to the prior year quarter decreased primarily due to the end of contracts in Malaysia, Brazil and Trinidad, partially offset by a change in aircraft mix in Trinidad. Adjusted EBITDAR and adjusted EBITDAR margin for the March 2015 quarter decreased to $7.5 million and 23.6%, respectively, compared to $20.2 million and 53.3%, respectively, in the March 2014 quarter, primarily due to a $12.6 million unfavorable impact of changes in foreign currency rates on Líder, our unconsolidated affiliate in Brazil. Sequentially, adjusted EBITDAR margin increased from 20.7% in the December 2014 quarter.

CHANGES TO BUSINESS UNITS

Effective April 1, 2015, we reorganized our global operations from five business units to four regions as follows:  Africa, Americas, Asia Pacific and Europe Caspian. The goal of these changes is to streamline and standardize our business, simplify our operating model, reduce costs and support consistent and faster response to clients globally. We believe the new structure will allow us to respond to market opportunities faster and execute our growth strategy more efficiently.

The Africa region will comprise all our operations and affiliates on the African continent, including Nigeria, Tanzania and Egypt.

The Americas region will comprise all our operations and affiliates in North America and South America, including Brazil, Canada, Trinidad and the U.S. Gulf of Mexico.

The Asia Pacific region will comprise all our operations and affiliates in Australia and Southeast Asia, including Malaysia and Sakhalin.

The Europe Caspian region will comprise all our operations and affiliates in Europe and Central Asia, including Norway, the U.K. and Turkmenistan.

Our historical business unit operating results will be recast based on the new region structure beginning with the quarter ending June 30, 2015.

DIVIDEND

On May 15, 2015, our Board of Directors approved our seventeenth consecutive quarterly dividend. This dividend of $0.34 per share will be paid on June 18, 2015 to shareholders of record on June 5, 2015. Based on shares outstanding as of March 31, 2015, the total quarterly dividend payment will be approximately $11.8 million.

GUIDANCE

"Our fiscal year 2015 earnings performance was materially impacted by the strength of the U.S. dollar, which reduced our adjusted earnings per share by $0.88, the majority of which came from the weakness in the Brazilian real and is non-cash. A large portion of the negative impact occurred in the fourth fiscal quarter," said John Briscoe, Senior Vice President and Chief Financial Officer of Bristow Group. "We generated very strong and improving operating cash flow and also created value for our shareholders by delivering $100 million of BVA during fiscal 2015. Impacts from the oil and gas downturn materialized in our fourth quarter; however good cost control resulted in a sequential improvement in adjusted EBITDAR margin for the quarter."

Today, we are announcing our adjusted diluted earnings per share guidance range for fiscal year 2016 of $3.90 to $4.40.

"The fiscal 2016 energy industry environment is presenting more challenges and uncertainties for the oil and gas portion of our business and impacts our full year adjusted EPS guidance range. However, our business model, which is strongly tied to offshore production combined with the start-up of the U.K. SAR contract and our growing fixed-wing operations, supports our expectation of average adjusted earnings growth of 10%-15% per year over the medium and long term," added Mr. Briscoe.

As a reminder, our adjusted diluted earnings per share guidance excludes the effect of special items and asset dispositions because their timing and amounts are more variable and less predictable.  Further, this guidance is based on foreign exchange rates as of March 31, 2015 and assumes the rates will remain unchanged.  In providing this guidance, we have not included the impact of any changes in accounting standards or significant acquisitions and divestitures. Events or other circumstances that we do not currently anticipate or cannot predict, including changes in the market and industry, could result in earnings per share for fiscal year 2016 that are significantly above or below this guidance. Factors that could cause such changes are described below under the Forward-Looking Statements Disclosure and the Risk Factors in our annual report on Form 10-K for the fiscal year ended March 31, 2015.

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. EDT (9:00 a.m. CDT) on Thursday, May 21, 2015 to review financial results for the fiscal year 2015 and fourth quarter ended March 31, 2015.  This release and the most recent investor slide presentation are available in the investor relations area of our web page at www.bristowgroup.com.  The conference call can be accessed as follows:

Via Webcast:

  • Visit Bristow Group's investor relations Web page at www.bristowgroup.com
  • Live: Click on the link for "Bristow Group Fiscal 2015 Fourth 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 1-877-404-9648
  • Replay: A telephone replay will be available through May 28, 2015 and may be accessed by calling toll free 1-877-660-6853, passcode: 13606746#

Via Telephone outside the U.S.:

  • Live: Dial 1-412-902-0030
  • Replay: A telephone replay will be available through May 28, 2015 and may be accessed by calling toll free 1-201-612-7415, passcode: 13606746#

ABOUT BRISTOW GROUP INC.

Bristow Group Inc. is the leading provider of helicopter services to the worldwide offshore energy industry based on the number of aircraft operated and one of two helicopter service providers to the offshore energy industry with global operations.  The Company has major transportation operations in the North Sea, Nigeria and the U.S. Gulf of Mexico, and in most of the other major offshore oil and gas producing regions of the world, including Australia, Brazil, Canada, Russia and Trinidad.  For more information, visit the Company's website at www.bristowgroup.com.

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 and earnings growth, expected contract revenue, capital deployment strategy, operational and capital performance, shareholder return, liquidity, 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.  Risks and uncertainties include, without limitation:  fluctuations in the demand for our services; fluctuations in worldwide prices of and supply and demand for oil and natural gas; fluctuations in levels of oil and natural gas production, exploration and development activities; the impact of competition; actions by clients; the risk of reductions in spending on helicopter services by governmental agencies; changes in tax and other laws and regulations; changes in foreign exchange rates and controls; risks associated with international operations; operating risks inherent in our business, including the possibility of declining safety performance; general economic conditions including the capital and credit markets; our ability to obtain financing; the risk of grounding of segments of our fleet for extended periods of time or indefinitely; our ability to re-deploy our aircraft to regions with greater demand; our ability to acquire additional aircraft and dispose of older aircraft through sales into the aftermarket; the possibility that we do not achieve the anticipated benefit of our fleet investment and Operational Excellence programs; availability of employees with the necessary skills; and political instability, war or acts of terrorism in any of the countries in which we operate. 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 SEC filings, including but not limited to the Company's annual report on Form 10-K for the fiscal year ended March 31, 2015.  Bristow Group Inc. disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.

(financial tables follow)


BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts and percentages)
(Unaudited)



Three Months Ended

 March 31,


Fiscal Year Ended

 March 31,


2015


2014


2015


2014



Gross revenue:








Operating revenue from non-affiliates

$

396,801



$

382,363



$

1,639,263



$

1,423,653


Operating revenue from affiliates

22,075



22,222



87,724



92,673


Reimbursable revenue from non-affiliates

31,479



36,340



131,682



153,180


Reimbursable revenue from affiliates







76



450,355



440,925



1,858,669



1,669,582










Operating expense:








Direct cost

283,508



270,092



1,174,991



1,041,575


Reimbursable expense

30,100



34,823



124,566



144,557


Impairment of inventories



10,540



7,167



12,669


Depreciation and amortization

37,129



25,645



114,293



95,977


General and administrative

59,471



64,079



254,158



199,814



410,208



405,179



1,675,175



1,494,592










Gain (loss) on disposal of assets

(10,255)



81



(35,849)



(722)


Earnings from unconsolidated affiliates, net of losses

(2,190)



11,594



(1,771)



12,709










Operating income

27,702



47,421



145,874



186,977


Interest expense, net

(7,679)



(7,805)



(29,354)



(43,218)


Extinguishment of debt





(2,591)




Gain on sale of unconsolidated affiliate





3,921



103,924


Other income (expense), net

175



(2,117)



(6,377)



(2,692)


Income before provision for income taxes

20,198



37,499



111,473



244,991


Provision for income taxes

(4,390)



(5,530)



(22,766)



(57,212)


Net income

15,808



31,969



88,707



187,779


Net income attributable to noncontrolling interests

(731)



(1,651)



(4,407)



(1,042)


Net income attributable to Bristow Group

$

15,077



$

30,318



$

84,300



$

186,737










Earnings per common share:








Basic

$

0.43



$

0.84



$

2.40



$

5.15


Diluted

$

0.43



$

0.83



$

2.37



$

5.09


















Non-GAAP measures:








Adjusted operating income

$

49,261



$

68,401



$

210,564



$

233,459


Adjusted operating margin

11.8

%


16.9

%


12.2

%


15.4

%

Adjusted EBITDAR

$

126,330



$

122,923



$

473,824



$

433,656


Adjusted EBITDAR margin

30.2

%


30.4

%


27.4

%


28.6

%

Adjusted net income

$

31,804



$

49,129



$

133,963



$

163,176


Adjusted diluted earnings per share

$

0.91



$

1.35



$

3.77



$

4.45


 


BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)



March 31,


2015


2014



ASSETS




Current assets:




Cash and cash equivalents

$

104,146



$

204,341


Accounts receivable from non-affiliates

250,610



292,650


Accounts receivable from affiliates

8,008



4,793


Inventories

147,169



137,463


Assets held for sale

57,827



29,276


Prepaid expenses and other current assets

70,091



53,084


Total current assets

637,851



721,607


Investment in unconsolidated affiliates

216,376



262,615


Property and equipment – at cost:




Land and buildings

171,959



145,973


Aircraft and equipment

2,493,869



2,646,150



2,665,828



2,792,123


Less – Accumulated depreciation and amortization

(508,727)



(523,372)



2,157,101



2,268,751


Goodwill

75,628



56,680


Other assets

143,764



88,604


Total assets

$

3,230,720



$

3,398,257


LIABILITIES AND STOCKHOLDERS' INVESTMENT




Current liabilities:




Accounts payable

$

84,193



$

89,818


Accrued wages, benefits and related taxes

81,648



71,192


Income taxes payable

7,926



13,588


Other accrued taxes

13,335



9,302


Deferred revenue

36,784



31,157


Accrued maintenance and repairs

23,316



17,249


Accrued interest

12,831



16,157


Other accrued liabilities

82,605



45,853


Deferred taxes

17,704



12,372


Short-term borrowings and current maturities of long-term debt

18,730



14,207


Deferred sale leaseback advance

55,934



136,930


Total current liabilities

435,006



457,825


Long-term debt, less current maturities

845,692



827,095


Accrued pension liabilities

99,576



86,823


Other liabilities and deferred credits

39,782



78,126


Deferred taxes

165,655



169,519


Temporary equity

26,223



22,283


Stockholders' investment:




Common stock

376



373


Additional paid-in capital

781,837



762,813


Retained earnings

1,284,442



1,245,220


Accumulated other comprehensive loss

(270,329)



(156,506)


Treasury shares, at cost

(184,796)



(103,965)


Total Bristow Group stockholders' investment

1,611,530



1,747,935


Noncontrolling interests

7,256



8,651


Total stockholders' investment

1,618,786



1,756,586


Total liabilities and stockholders' investment

$

3,230,720



$

3,398,257


 


BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)



Fiscal Year Ended

March 31,


2015


2014



Cash flows from operating activities:




Net income

$

88,707



$

187,779


Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

114,293



95,977


Deferred income taxes

(7,457)



5,465


Write-off of deferred financing fees

660



12,733


Discount amortization on long-term debt

4,323



3,708


Loss on disposal of assets

35,849



722


Gain on sale of unconsolidated affiliate

(3,921)



(103,924)


Impairment of inventories

7,167



12,669


Extinguishment of debt

2,591




Stock-based compensation

16,353



15,433


Equity in earnings from unconsolidated affiliates less than (in excess of) dividends received

9,418



1,629


Tax benefit related to stock-based compensation

(1,550)



(5,723)


Increase (decrease) in cash resulting from changes in:




Accounts receivable

24,112



3,647


Inventories

(21,478)



12,824


Prepaid expenses and other assets

(25,485)



(3,149)


Accounts payable

(4,665)



(5,154)


Accrued liabilities

29,461



11,697


Other liabilities and deferred credits

(15,152)



(14,239)


Net cash provided by operating activities

253,226



232,094


Cash flows from investing activities:




Capital expenditures

(601,834)



(628,613)


Acquisitions, net of cash received

(20,303)



(39,850)


Proceeds from sale of unconsolidated affiliate

4,185



112,210


Proceeds from asset dispositions

414,859



289,951


Net cash used in investing activities

(203,093)



(266,302)


Cash flows from financing activities:




Proceeds from borrowings

454,393



533,064


Payment of contingent consideration



(6,000)


Debt issuance costs



(15,523)


Repayment of debt and debt redemption premiums

(460,274)



(512,492)


Proceeds from assignment of aircraft purchase agreements



106,113


Partial prepayment of put/call obligation

(59)



(57)


Acquisition of noncontrolling interest

(3,170)



(2,078)


Repurchase of common stock

(80,831)



(77,661)


Common stock dividends paid

(45,078)



(36,320)


Issuance of common stock

5,172



15,398


Tax benefit related to stock-based compensation

1,550



5,723


Net cash provided by (used in) financing activities

(128,297)



10,167


Effect of exchange rate changes on cash and cash equivalents

(22,031)



12,759


Net decrease in cash and cash equivalents

(100,195)



(11,282)


Cash and cash equivalents at beginning of period

204,341



215,623


Cash and cash equivalents at end of period

$

104,146



$

204,341


 


BRISTOW GROUP INC. AND SUBSIDIARIES
SELECTED OPERATING DATA
(In thousands, except flight hours and percentages)
(Unaudited)




Three Months Ended

 March 31,


Fiscal Year Ended

 March 31,



2015


2014


2015


2014

Operating revenue:









Europe


$

177,212



$

170,715



$

779,009



$

622,684


West Africa


75,350



83,754



315,897



314,829


North America


58,321



55,560



234,218



229,064


Australia


62,894



40,586



209,020



148,731


Other International


31,826



37,973



135,752



133,794


Corporate and other


15,214



17,450



59,449



71,679


Intra-business unit eliminations


(1,941)



(1,453)



(6,358)



(4,455)


Consolidated


$

418,876



$

404,585



$

1,726,987



$

1,516,326











Operating income (loss):









Europe


$

16,065



$

32,021



$

125,016



$

114,729


West Africa


25,478



20,792



86,074



80,053


North America


17,537



8,302



52,943



32,255


Australia


(1,479)



762



6,017



5,523


Other International


2,364



19,481



18,609



33,769


Corporate and other


(22,008)



(34,018)



(106,936)



(78,630)


Gain (loss) on disposal of assets


(10,255)



81



(35,849)



(722)


Consolidated


$

27,702



$

47,421



$

145,874



$

186,977











Operating margin:









Europe


9.1

%


18.8

%


16.0

%


18.4

%

West Africa


33.8

%


24.8

%


27.2

%


25.4

%

North America


30.1

%


14.9

%


22.6

%


14.1

%

Australia


(2.4)

%


1.9

%


2.9

%


3.7

%

Other International


7.4

%


51.3

%


13.7

%


25.2

%

Consolidated


6.6

%


11.7

%


8.4

%


12.3

%










Adjusted EBITDAR:









Europe


$

53,061



$

63,606



$

255,506



$

216,283


West Africa


35,928



27,779



109,154



101,175


North America


28,164



19,663



94,101



73,528


Australia


17,567



9,737



52,596



29,111


Other International


7,515



20,246



35,620



63,778


Corporate and other


(15,905)



(18,108)



(73,153)



(50,219)


Consolidated


$

126,330



$

122,923



$

473,824



$

433,656











Adjusted EBITDAR margin:









Europe


29.9

%


37.3

%


32.8

%


34.7

%

West Africa


47.7

%


33.2

%


34.6

%


32.1

%

North America


48.3

%


35.4

%


40.2

%


32.1

%

Australia


27.9

%


24.0

%


25.2

%


19.6

%

Other International


23.6

%


53.3

%


26.2

%


47.7

%

Consolidated


30.2

%


30.4

%


27.4

%


28.6

%










Flight hours (excluding Bristow Academy and unconsolidated affiliates):









Europe


21,755



19,537



93,344



69,130


West Africa


9,327



10,984



40,958



45,581


North America


9,950



11,322



45,365



56,008


Australia


5,719



2,915



14,292



10,378


Other International


3,544



3,721



14,854



14,303


Consolidated


50,295



48,479



208,813



195,400


 


BRISTOW GROUP INC. AND SUBSIDIARIES
AIRCRAFT COUNT
As of March 31, 2015
(Unaudited)





Aircraft in Consolidated Fleet





Percentage

of FY2015

Operating

Revenue


Helicopters







Small


Medium


Large


Training


Fixed

Wing



Unconsolidated

Affiliates (2)



Total (1)(2)

Total

Europe

45

%




12



67





30



109





109


West Africa

18

%


9



30



4





3



46





46


North America

14

%


29



23



16







68





68


Australia

12

%


2



8



17





13



40





40


Other International

8

%




29



8







37



130



167


Corporate and other

3

%








71





71





71


Total

100

%


40



102



112



71



46



371



130



501


Aircraft not currently in fleet: (3)
















On order





8



37







45





Under option





14



16







30







(1)

Includes 12 aircraft held for sale and 119 leased aircraft as follows:





Held for Sale Aircraft in Consolidated Fleet



Helicopters







Small


Medium


Large


Training


Fixed

Wing


Total

Europe






2







2


West Africa




3









3


North America




3









3


Australia













Other International




4









4


Corporate and other













Total




10



2







12

















Leased Aircraft in Consolidated Fleet



Helicopters







Small


Medium


Large


Training


Fixed

Wing


Total

Europe




5



36





13



54


West Africa




1



1







2


North America


1



13



5







19


Australia


2



2



8





4



16


Other International













Corporate and other








28





28


Total


3



21



50



28



17



119




(2)

The average age of our fleet, excluding training aircraft, was nine years as of March 31, 2015.



(3)

The 130 aircraft operated by our unconsolidated affiliates do not include those aircraft leased to us. Includes 59 helicopters (primarily medium) and 26 fixed wing aircraft owned and managed by Líder, our unconsolidated affiliate in Brazil, which is included in our Other International Business Unit.



(4)

This table does not reflect aircraft which our unconsolidated affiliates may have on order or under option.


Changes to Business Units


The following tables present our selected operating data for all four quarters within fiscal year ended March 31, 2015 for comparison purposes based on the new region reporting structure effective for fiscal year 2016 discussed above.




Three Months Ended



June 30,

2014


September 30,

2014


December 31,

2014


March 31,

2015



(in thousands, except flight hours and percentages)



(Unaudited)

Operating revenue:



Europe Caspian


$

207,004



$

211,516



$

195,617



$

179,701


Africa


84,572



84,763



86,330



80,340


Americas


90,421



88,678



88,380



86,028


Asia Pacific


54,469



55,034



59,211



68,884


Corporate and other


8,421



7,609



1,849



4,909


Intra-business unit eliminations


(7,552)



(7,142)



(1,069)



(986)


Consolidated


$

437,335



$

440,458



$

430,318



$

418,876











Operating income (loss):









Europe Caspian


$

42,195



$

40,627



$

28,550



$

17,171


Africa


17,626



19,667



26,379



28,086


Americas


26,658



13,566



19,774



19,178


Asia Pacific


3,330



2,461



5,264



1,400


Corporate and other


(25,227)



(32,384)



(44,720)



(27,879)


Gain (loss) on disposal of assets


610



127



(26,331)



(10,254)


Consolidated


$

65,192



$

44,064



$

8,916



$

27,702











Operating margin:









Europe Caspian


20.4

%


19.2

%


14.6

%


9.6

%

Africa


20.8

%


23.2

%


30.6

%


35.0

%

Americas


29.5

%


15.3

%


22.4

%


22.3

%

Asia Pacific


6.1

%


4.5

%


8.9

%


2.0

%

Consolidated


14.9

%


10.0

%


2.1

%


6.6

%










Adjusted EBITDAR:









Europe Caspian


$

70,543



$

70,707



$

64,107



$

55,339


Africa


21,872



26,023



29,785



39,077


Americas


40,081



27,799



33,233



34,822


Asia Pacific


12,820



12,508



14,511



20,142


Corporate and other


(17,693)



(24,968)



(32,580)



(23,050)


Consolidated


$

127,623



$

112,069



$

109,056



$

126,330











Adjusted EBITDAR margin:









Europe Caspian


34.1

%


33.4

%


32.8

%


30.8

%

Africa


25.9

%


30.7

%


34.5

%


48.6

%

Americas


44.3

%


31.3

%


37.6

%


40.5

%

Asia Pacific


23.5

%


22.7

%


24.5

%


29.2

%

Consolidated


29.2

%


25.4

%


25.3

%


30.2

%










Flight hours (excluding Bristow Academy and unconsolidated affiliates):









Europe Caspian


24,181



24,340



23,495



21,860


Africa


11,058



10,855



11,004



9,719


Americas


14,261



13,537



14,384



12,201


Asia Pacific


3,678



3,575



4,150



6,515


Consolidated


53,178



52,307



53,033



50,295



BRISTOW GROUP INC. AND SUBSIDIARIES
GAAP RECONCILIATIONS
(Unaudited)


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.  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

 March 31,


Fiscal Year Ended

 March 31,



2015


2014


2015


2014



(In thousands, except per share amounts and percentages)

Adjusted operating income


$

49,261



$

68,401



$

210,564



$

233,459


Gain (loss) on disposal of assets


(10,255)



81



(35,849)



(722)


Special items


(11,304)



(21,061)



(28,841)



(45,760)


Operating income


$

27,702



$

47,421



$

145,874



$

186,977











Adjusted EBITDAR


$

126,330



$

122,923



$

473,824



$

433,656


Gain (loss) on disposal of assets


(10,255)



81



(35,849)



(722)


Special items


(925)



(20,485)



(17,132)



58,740


Depreciation and amortization


(37,129)



(25,645)



(114,293)



(95,977)


Rent expense


(49,928)



(31,139)



(164,767)



(105,769)


Interest expense


(7,895)



(8,237)



(30,310)



(44,938)


Provision for income taxes


(4,390)



(5,529)



(22,766)



(57,211)


Net income


$

15,808



$

31,969



$

88,707



$

187,779











Adjusted income tax expense


$

(9,222)



$

(7,700)



$

(37,123)



$

(36,064)


Tax (expense) benefit on gain (loss) on disposal of asset


2,168



(21)



7,321



148


Tax benefit (expense) on special items


2,664



2,190



7,036



(21,296)


Net income attributable to Bristow Group


$

(4,390)



$

(5,531)



$

(22,766)



$

(57,212)











Adjusted effective tax rate (1)


22.1

%


13.2

%


21.2

%


18.0

%

Effective tax rate (1)


21.7

%


14.7

%


20.4

%


23.4

%










Adjusted net income


$

31,804



$

49,129



$

133,963



$

163,176


Gain (loss) on disposal of assets


(8,087)



60



(28,528)



(574)


Special items


(8,640)



(18,871)



(21,135)



24,135


Net income attributable to Bristow Group


$

15,077



$

30,318



$

84,300



$

186,737











Adjusted diluted earnings per share


$

0.91



$

1.35



$

3.77



$

4.45


Gain (loss) on disposal of assets


(0.23)





(0.80)



(0.02)


Special items


(0.25)



(0.52)



(0.59)



0.66


Diluted earnings per share


0.43



0.83



2.37



5.09




(1)

Effective tax rate is calculated by dividing income tax expense by pretax net income. Adjusted effective tax rate is calculated by dividing adjusted income tax expense by adjusted pretax net income.






Three Months Ended

 March 31, 2015





Adjusted

Operating

Income


Adjusted

EBITDAR


Adjusted

Net Income


Adjusted

Diluted

Earnings

Per

Share





(In thousands, except per share amounts)



Fleet changes (1)


$

(10,379)



$



$

(7,992)



$

(0.23)




Severance costs (2)


(925)



(925)



(648)



(0.02)






$

(11,304)



$

(925)



$

(8,640)



(0.25)











Three Months Ended

 March 31, 2014




Adjusted

Operating

Income


Adjusted

EBITDAR


Adjusted

Net Income


Adjusted

Diluted

Earnings

Per

Share





(In thousands, except per share amounts)



Impairment of inventories (3)


$

(10,540)



$

(10,540)



$

(8,379)



$

(0.23)




Restructuring items (4)


(771)



(771)



(3,126)



(0.09)




Líder taxes (5)


4,233



4,233



2,751



0.08




Mexico goodwill impairment (6)


(576)





(374)



(0.01)




Nigeria fire (7)


(8,569)



(8,569)



(6,598)



(0.18)




CEO succession planning and officer separation (8)


(4,838)



(4,838)



(3,145)



(0.09)




Total special items


$

(21,061)



$

(20,485)



$

(18,871)



(0.52)

















Fiscal Year Ended

 March 31, 2015





Adjusted

Operating

Income


Adjusted

EBITDAR


Adjusted

Net Income


Adjusted

Diluted

Earnings

Per

Share





(In thousands, except per share amounts)



Gain on sale of unconsolidated affiliate (9)


$