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Bristow Group Reports Financial Results for its 2015 Fiscal Third Quarter and Nine Months Ended December 31, 2014

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- THIRD QUARTER GAAP NET LOSS OF $1.0 MILLION ($0.03 LOSS PER DILUTED SHARE) AND NINE MONTH GAAP NET INCOME OF $69.2 MILLION ($1.94 PER DILUTED SHARE)
- THIRD QUARTER AND NINE MONTH ADJUSTED NET INCOME OF $24.7 MILLION ($0.70 PER DILUTED SHARE) AND $102.2 MILLION ($2.87 PER DILUTED SHARE)
- THIRD QUARTER RESULTS IMPACTED BY $0.31 PER DILUTED SHARE OF FOREIGN CURRENCY VOLATILITY, WHILE BRISTOW VALUE ADDED AND CASH FLOW IMPROVED
- COMPANY ANNOUNCES ACQUISITION OF 85% INTEREST IN AIRNORTH IN AUSTRALIA, ADDING TO OUR GLOBAL TURNKEY AVIATION SERVICES FOR CLIENTS IN A FINANCIALLY ACCRETIVE TRANSACTION
- COMPANY LOWERS GUIDANCE FOR FULL FISCAL YEAR 2015 ADJUSTED EPS TO $4.05 - $4.45 FROM $4.70 - $5.20

HOUSTON, Feb. 5, 2015 /PRNewswire/ -- Bristow Group Inc. (NYSE: BRS) today reported a GAAP net loss for the December 2014 quarter of $1.0 million, or a $0.03 loss per diluted share, compared to net income of $18.9 million, or $0.51 per diluted share, in the same period a year ago.

Adjusted net income, which excludes special items and asset disposition effects, decreased 21% to $24.7 million, or $0.70 per diluted share, for the December 2014 quarter, compared to $31.3 million, or $0.85 per diluted share, in the December 2013 quarter. Results for the December 2014 quarter were significantly impacted by foreign currency impacts of $13.9 million, which decreased diluted earnings per share, on an adjusted and unadjusted basis, by $0.31 for the period.

Adjusted earnings before interest, taxes, depreciation, amortization and rent ("adjusted EBITDAR"), which also excludes special items and asset disposition effects, was $109.1 million for the December 2014 quarter, an 8% increase from $100.7 million in the same period a year ago.

GAAP net income for the nine months ended December 31, 2014 decreased 55.7% to $69.2 million, or $1.94 per diluted share, from $156.4 million, or $4.28 per diluted share, in the same nine-month period a year ago. Adjusted net income for the nine months ended December 31, 2014 decreased 10% to $102.2 million, or $2.87 per diluted share, from $113.9 million, or $3.11 per diluted share, in the same nine-month period a year ago.  However, adjusted EBITDAR improved 12% to $347.5 million in the current year-to-date period from $311.0 million in the first nine months of our last fiscal year. Results for the nine months ended December 31, 2014 were also significantly impacted by foreign currency impacts of $27.3 million, which decreased diluted earnings per share, on an adjusted and unadjusted basis, by $0.60 for the period.

"The December 2014 quarter had similar financial results to our second quarter fiscal year 2015 and for similar reasons," said Jonathan E. Baliff, President and Chief Executive Officer of Bristow Group.  "In spite of many challenges faced by our clients and employees, we were able to safely deliver top line revenue growth of over 15%. This revenue growth, and the continued delivery of significant positive cash flow from operations, drove an over $34 million increase in Bristow Value Added ("BVA"), improved returns on capital, and $410 million of ending liquidity during the first nine months of fiscal 2015. This BVA and operating cash flow increase in the face of global macro-economic volatility demonstrates the strength of our underlying business model, balance sheet and client relationships."

"The recent rapid decline in oil prices is leading to a reduction in capital expenditures by most of our clients. We anticipated these developments in the latter half of calendar 2014 and implemented a proactive strategy to help our clients meet their cost reduction objectives." Jonathan added, "We are also proactively making cost and capital efficiency improvements in partnership with our OEM and Lessor partners. This will allow our business model to thrive and capitalize on this environment for our clients, as we continue to execute our growth plan including the startup of the UK search and rescue contract in April 2015."

We continue to see top line strength in our operations driving improvements in adjusted EBITDAR year-over-year, with an increase in operating revenue of 15% for the December 2014 quarter and 18% for the first nine months of the fiscal year over the prior year periods. The results for the December 2014 quarter were significantly impacted by:

  • Unfavorable foreign currency exchange impacts of $13.9 million driven primarily by a strengthening U.S. dollar, including $7.7 million reflected as a reduction in earnings from unconsolidated affiliates related to our affiliate in Brazil,
  • An increase in general and administrative expense of $23.6 million primarily related to higher incentive compensation costs of $13.4 million, primarily resulting from improved year-over-year BVA and stock price performance versus our peer group, and higher professional fees of $5.1 million primarily related to ongoing Operational Excellence and other initiatives,
  • Non-cash impairment charges related to aircraft of $25.6 million and inventory of $3.8 million, and
  • The effect of an accounting correction of $5.3 million.

Adjusted operating income, adjusted net income and adjusted earnings per share, which are non-GAAP measures as discussed below, include the significant impact of foreign currency exchange impacts and general and administrative expense increases as these items are associated with our business operations. Foreign currency exchange impacts in the December 2014 quarter decreased earnings per share by $0.31, on an adjusted and unadjusted basis, compared to a $0.07 decrease in the December 2013 quarter.

Adjusted EBITDAR improved despite the impact of foreign currency exchange and increased general and administrative expenses as a result of the following:

  • An increase in activity in our Europe business unit, including the addition of Eastern Airways in February 2014,
  • The startup of new contracts in our Australia business unit,
  • Improved contract terms in our West Africa business unit,
  • The recovery of $1.8 million from an original equipment manufacturer ("OEM") provided in the form of maintenance credits that resulted from a settlement for aircraft performance issues and related costs that benefited results in our Europe and Australia business units, 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 also were impacted by changes in our aircraft leasing.  Net income and diluted earnings per share, on an unadjusted and adjusted basis, were impacted by a pre-tax $18.0 million increase in rent expense over the December 2013 quarter, as we increased the number of leased aircraft.

In terms of cash generation from our business and management of our capital, net cash provided by operating activities was $162.4 million for the nine months ended December 31, 2014 compared to $137.3 million for the same period a year ago.  Our total liquidity, including cash on hand and availability on our revolving credit facility, was $412.4 million as of December 31, 2014 compared to $529.9 million as of March 31, 2014. Despite our use of significant cash for capital expenditures of $499.3 million and net debt pay down of $25.3 million year to date, our liquidity remains strong.

BUSINESS UNIT RESULTS

Europe Business Unit

Bristow acquired a 60% interest in Eastern Airways in February 2014, which contributed $34.8 million in operating revenue and $5.4 million in adjusted EBITDAR for the December 2014 quarter representing a significant portion of a 22.3% improvement in operating revenue and a 14.7% improvement in adjusted EBITDAR over the December 2013 quarter in our Europe Business Unit. Operating revenue and adjusted EBITDAR also improved due to an increase in activity and addition of a new contract in Norway. Adjusted EBITDAR also benefited from the recovery of $1.1 million in maintenance credits from an OEM during the December 2014 quarter, while being negatively affected by a $5.5 million unfavorable impact from foreign currency exchange rate changes.

West Africa Business Unit

Improved contract terms in our West Africa Business Unit resulted in a 1.4% increase in operating revenue for the December 2014 quarter compared to the December 2013 quarter. However, a $2.0 million unfavorable impact from foreign currency exchange rate changes effected adjusted EBITDAR during the December 2014 quarter. The increase in revenue and cost control measures implemented in the previous quarters are reflected in the 4.8% increase in adjusted EBITDAR to $27.9 million for the December 2014 quarter compared to $26.6 million for the December 2013 quarter, despite the unfavorable impact of foreign currency exchange rate changes.

North America Business Unit

The increase in the number of large aircraft on contract in the U.S. Gulf of Mexico drove a 13.6% increase in operating revenue in North America, partially offset by the planned closure of operations in Alaska and a decline in small aircraft on contract compared to the prior year quarter. This change in the mix of fleet on contract in the U.S. Gulf of Mexico to larger aircraft and improved utilization resulted in a 37.4% improvement in adjusted EBITDAR to $24.9 million in the December 2014 quarter compared to $18.2 million in the December 2013 quarter.

Australia Business Unit

Operating revenue for our Australia Business Unit increased 51.5% to $52.4 million in the December 2014 quarter from $34.6 million in the December 2013 quarter due to the ramp up of new contracts, including a significant contract with INPEX. As a result of the contracts and a benefit from the recovery of $0.7 million in maintenance credits from an OEM during the December 2014 quarter, adjusted EBITDAR increased to $13.3 million from $5.2 million in the December 2013 quarter. The results for the December 2014 quarter were negatively impacted by $1.5 million of unfavorable foreign currency exchange rate changes.

Other International Business Unit

Operating revenue for our Other International Business Unit increased 5.9% in the December 2014 quarter primarily due to a contract in Tanzania that started in the fourth quarter of fiscal year 2014, partially offset by a decline in revenue due to contracts ending in Malaysia and Mexico and lower activity in Brazil and Trinidad. Adjusted EBITDAR for the December 2014 quarter decreased to $6.8 million compared to $10.2 million in the December 2013 quarter, primarily due to lower earnings from unconsolidated affiliates and the end of the contract in Malaysia, partially offset by the contract in Tanzania. Líder, our unconsolidated affiliate in Brazil, results for the December 2014 quarter were unfavorably impacted by $7.7 million from foreign currency exchange rate changes.

GUIDANCE

We are lowering our adjusted diluted earnings per share guidance for the full fiscal year 2015 to $4.05 to $4.45, primarily resulting from foreign currency exchange effects. Our previous guidance for the full fiscal year 2015 was $4.70 to $5.20.

"Our fiscal third quarter of 2015, similar to the second quarter of 2015, was impacted by foreign exchange and other costs, resulting in a decrease in earnings per share year over year.  Nevertheless, our management team is focused on our operating performance in this challenging environment, and we currently expect a strong fourth quarter of the fiscal year," said John H. Briscoe, Senior Vice President and Chief Financial Officer of Bristow Group. "Our global business continues to deliver increases in gross cash flow returns and BVA, while we continue to focus on creating a balanced return for our shareholders, especially the commitment to double the dividend every three to five years. Our dedicated employees have stepped up to the challenge, while remaining very focused on safety. For example, the team is raising the bar with significant optimization and efficiency efforts underway including a new global ERP system, the first phase of which went live in October 2014. We are focused on controlling costs and capital expenditures in this environment for our clients, our employees and our shareholders."

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 current foreign currency exchange rates.  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 2015 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 quarterly report on Form 10-Q for the quarter ended December 31, 2014 and annual report on Form 10-K for the fiscal year ended March 31, 2014.

DIVIDEND AND SHARE REPURCHASE

On February 5, 2015, our Board of Directors approved our sixteenth consecutive quarterly dividend. This dividend of $0.32 per share will be paid on March 16, 2015 to shareholders of record on February 27, 2015. Based on shares outstanding as of December 31, 2014, the total quarterly dividend payment will be approximately $11.1 million. On November 6, 2014, our Board of Directors extended the date to repurchase shares of our common stock through November 5, 2015 and increased the remaining authorized repurchase amount to a total of $150 million. During the December 2014 quarter, we spent $37.4 million to repurchase 565,622 shares of our common stock.  Since we first commenced a share repurchase program in December 2011, we have repurchased over 8% of our common stock. As of January 30, 2015, we had $125.0 million of repurchase authority remaining.

AIRNORTH TRANSACTION

On January 29, 2015, Bristow Helicopters Australia PTY LTD ("Bristow Helicopters Australia") acquired an 85% interest in Capiteq Limited, operating under the name Airnorth, for cash of A$30.3 million ($24.0 million) with possible earn out consideration of up to A$17 million ($13.5 million) to be paid over three years based on the achievement of specified financial performance thresholds. Airnorth is Northern Australia's largest regional fixed wing operator based in Darwin, Northern Territory, Australia with both scheduled and charter services which focus primarily on the energy and mining industries in northern and western Australia as well as international service to Dili, Timor-Leste and the Philippines.  Airnorth's fleet consists of thirteen aircraft (nine turboprop and four new technology regional jets) and its customer base includes many energy companies to which Bristow Group already provides helicopter service. We believe this investment will strengthen our ability to provide point to point transportation services for existing Australian based passengers, expand helicopter services in certain areas in Southeast Asian markets and create a more integrated logistics solution for global clients.

The acquisition of Airnorth will be accounted for under the purchase method and the results will be consolidated from the date of acquisition in the Australia business unit. The purchase price will be allocated based on the fair value of assets acquired and liabilities assumed as of the acquisition date.

We expect this acquisition will contribute approximately A$18 million ($14.4 million) in operating revenue and A$4.2 million ($3.3 million) of adjusted EBITDAR in the fourth quarter of fiscal year 2015 and approximately A$105-115 million ($83-91 million) in operating revenue and A$25-30 million ($20-24 million) of adjusted EBITDAR for fiscal year 2016.

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Friday, February  6, 2015 to review financial results for the fiscal year 2015 third quarter ended December 31, 2014.  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 Third 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 1-877-407-8293
  • Replay: A telephone replay will be available through February 20, 2015 and may be accessed by calling toll free 1-877-660-6853, passcode: 13598729#

Via Telephone outside the U.S.:

  • Live: Dial 1-201-689-8349
  • Replay: A telephone replay will be available through February 20, 2015 and may be accessed by calling 1-201-612-7415, passcode: 13598729#

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, expected contract revenue, capital deployment strategy, operational and capital performance, shareholder return, liquidity, market and industry conditions and the expected impact of the Airnorth acquisition.  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 program; availability of employees; and political instability, war or acts of terrorism in any of the countries where 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 quarterly report on Form 10-Q for the quarter ended December 31, 2014 and annual report on Form 10-K for the fiscal year ended March 31, 2014.  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.

Linda McNeill
Investor Relations
(713) 267-7622

(financial tables follow)

 

 

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts and percentages)

(Unaudited)



Three Months Ended
 December 31,


Nine Months Ended
 December 31,


2014



2013



2014



2013




Gross revenue:












Operating revenue from non-affiliates

$

408,388



$

351,193



$

1,242,462



$

1,041,290


Operating revenue from affiliates

21,930



22,371



65,649



70,451


Reimbursable revenue from non-affiliates

29,822



38,760



100,203



116,840


Reimbursable revenue from affiliates



11





76



460,140



412,335



1,408,314



1,228,657


Operating expense:












Direct cost

299,230



261,590



898,650



773,612


Reimbursable expense

28,549



36,677



94,466



109,734


Depreciation and amortization

23,625



23,655



77,164



70,332


General and administrative

72,531



48,948



194,687



135,735



423,935



370,870



1,264,967



1,089,413














Gain (loss) on disposal of assets

(26,331)



3,982



(25,594)



(803)


Earnings from unconsolidated affiliates, net of losses

(958)



(15,945)



419



1,115


Operating income

8,916



29,502



118,172



139,556














Interest expense, net

(6,976)



(6,846)



(21,675)



(35,413)


Gain on sale of unconsolidated affiliate

3,921





3,921



103,924


Other income (expense), net

(5,223)



(696)



(9,143)



(575)


Income before provision for income taxes

638



21,960



91,275



207,492


Provision for income taxes

(567)



(2,946)



(18,376)



(51,682)


Net income

71



19,014



72,899



155,810


Net (income) loss attributable to noncontrolling interests

(1,039)



(87)



(3,676)



609


Net income (loss) attributable to Bristow Group

$

(968)



$

18,927



$

69,223



$

156,419














Earnings (loss) per common share:












Basic

$

(0.03)



$

0.52



$

1.96



$

4.32


Diluted

$

(0.03)



$

0.51



$

1.94



$

4.28


























Non-GAAP measures:












Adjusted operating income

$

43,564



$

49,056



$

161,303



$

165,293


Adjusted operating margin

10.1

%


13.1

%


12.3

%


14.9

%

Adjusted EBITDAR

$

109,056



$

100,677



$

347,494



$

310,968


Adjusted EBITDAR margin

25.3

%


27.0

%


26.6

%


28.0

%

Adjusted net income

$

24,719



$

31,331



$

102,159



$

113,891


Adjusted diluted earnings per share

$

0.70



$

0.85



$

2.87



$

3.11


 

 

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)






December 31,
 2014


March 31,
 2014


ASSETS








Current assets:








Cash and cash equivalents


$

121,366



$

204,341



Accounts receivable from non-affiliates


288,657



292,650



Accounts receivable from affiliates


6,914



4,793



Inventories


139,027



137,463



Assets held for sale


25,837



29,276



Prepaid expenses and other current assets


50,140



53,084



Total current assets


631,941



721,607



Investment in unconsolidated affiliates


257,073



262,615



Property and equipment – at cost:








Land and buildings


152,030



145,973



Aircraft and equipment


2,472,230



2,646,150





2,624,260



2,792,123



Less – Accumulated depreciation and amortization


(494,872)



(523,372)





2,129,388



2,268,751



Goodwill


53,828



56,680



Other assets


107,512



88,604



Total assets


$

3,179,742



$

3,398,257



LIABILITIES AND STOCKHOLDERS' INVESTMENT








Current liabilities:








Accounts payable


$

90,047



$

89,818



Accrued wages, benefits and related taxes


76,829



71,192



Income taxes payable


7,558



13,588



Other accrued taxes


8,455



9,302



Deferred revenue


28,824



31,157



Accrued maintenance and repairs


18,707



17,249



Accrued interest


5,530



16,157



Other accrued liabilities


54,440



45,853



Deferred taxes


12,670



12,372



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


14,277



14,207



Deferred sale leaseback advance


55,671



136,930



Total current liabilities


373,008



457,825



Long-term debt, less current maturities


803,911



827,095



Accrued pension liabilities


62,110



86,823



Other liabilities and deferred credits


59,953



78,126



Deferred taxes


162,895



169,519



Temporary equity


23,660



22,283



Stockholders' investment:








Common stock


375



373



Additional paid-in capital


776,000



762,813



Retained earnings


1,280,508



1,245,220



Accumulated other comprehensive loss


(184,782)



(156,506)



Treasury shares


(184,796)



(103,965)



Total Bristow Group stockholders' investment


1,687,305



1,747,935



Noncontrolling interests


6,900



8,651



Total stockholders' investment


1,694,205



1,756,586



Total liabilities and stockholders' investment


$

3,179,742



$

3,398,257



 

 

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)








Nine Months Ended
 December 31,




2014



2013



Cash flows from operating activities:








Net income


$

72,899



$

155,810



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








Depreciation and amortization


77,164



70,332



Deferred income taxes


(7,875)



(3,132)



Write-off of deferred financing fees


660



12,733



Discount amortization on long-term debt


3,212



2,719



Loss on disposal of assets


25,594



803



Gain on sale of unconsolidated affiliate


(3,921)



(103,924)



Impairment of inventories


7,167



2,364



Stock-based compensation


13,651



10,694



Equity in earnings from unconsolidated affiliates less than dividends received


4,196



7,926



Tax benefit related to stock-based compensation


(1,642)



(5,328)



Increase (decrease) in cash resulting from changes in:








Accounts receivable


(11,350)



31,786



Inventories


(15,578)



(1,106)



Prepaid expenses and other assets


(13,354)



(4,002)



Accounts payable


19,353



(31,727)



Accrued liabilities


4,547



4,868



Other liabilities and deferred credits


(12,313)



(13,517)



Net cash provided by operating activities


162,410



137,299



Cash flows from investing activities:








Capital expenditures


(499,285)



(526,048)



Proceeds from asset dispositions


404,361



244,867



Proceeds from sale of unconsolidated affiliate


4,185



112,210



Net cash used in investing activities


(90,739)



(168,971)



Cash flows from financing activities:








Proceeds from borrowings


347,860



283,977



Debt issuance costs




(15,152)



Repayment of debt


(373,169)



(232,063)



Partial prepayment of put/call obligation


(46)



(42)



Acquisition of noncontrolling interest


(3,170)



(2,078)



Proceeds from assignment of aircraft purchase agreements




106,113



Repurchase of common stock


(80,831)



(16,544)



Common stock dividends paid


(33,935)



(27,318)



Issuance of common stock


2,217



14,368



Tax benefit related to stock-based compensation


1,642



5,328



Net cash provided by (used in) financing activities


(139,432)



116,589



Effect of exchange rate changes on cash and cash equivalents


(15,214)



22,690



Net increase (decrease) in cash and cash equivalents


(82,975)



107,607



Cash and cash equivalents at beginning of period


204,341



215,623



Cash and cash equivalents at end of period


$

121,366



$

323,230



 

 

BRISTOW GROUP INC. AND SUBSIDIARIES

SELECTED OPERATING DATA

(In thousands, except flight hours and percentages)

(Unaudited)




Three Months Ended
 December 31,


Nine Months Ended
 December 31,



2014



2013



2014



2013


Flight hours (excluding Bristow Academy and unconsolidated affiliates):













Europe(1)


23,327



16,428



71,589



49,593


West Africa


10,495



11,485



31,631



34,597


North America


12,249



12,345



35,415



44,686


Australia


3,047



2,406



8,573



7,463


Other International


3,915



3,584



11,310



10,582


Consolidated


53,033



46,248



158,518



146,921


Operating revenue:













Europe


$

193,842



$

158,458



$

601,797



$

451,969


West Africa


80,513



79,421



240,547



231,075


North America


62,399



54,916



175,897



173,504


Australia


52,425



34,606



146,126



108,145


Other International


32,588



30,778



103,926



95,821


Corporate and other


9,987



16,321



44,235



54,229


Intra-business unit eliminations


(1,436)



(936)



(4,417)



(3,002)


Consolidated


$

430,318



$

373,564



$

1,308,111



$

1,111,741


Operating income (loss):













Europe


$

29,001



$

29,729



$

108,951



$

82,708


West Africa


24,909



21,777



60,596



59,261


North America


14,937



6,666



35,406



23,953


Australia


4,256



(1,027)



7,496



4,761


Other International


2,887



(12,808)



16,245



14,288


Corporate and other


(40,743)



(18,817)



(84,928)



(44,612)


Gain (loss) on disposal of assets


(26,331)



3,982



(25,594)



(803)


Consolidated


$

8,916



$

29,502



$

118,172



$

139,556


Operating margin:













Europe


15.0

%


18.8

%


18.1

%


18.3

%

West Africa


30.9

%


27.4

%


25.2

%


25.6

%

North America


23.9

%


12.1

%


20.1

%


13.8

%

Australia


8.1

%


(3.0)

%


5.1

%


4.4

%

Other International


8.9

%


(41.6)

%


15.6

%


14.9

%

Consolidated


2.1

%


7.9

%


9.0

%


12.6

%

Adjusted EBITDAR:













Europe


$

64,233



$

55,995



$

202,445



$

152,677


West Africa


27,886



26,601



73,226



73,396


North America


24,935



18,150



65,937



53,865


Australia


13,334



5,187



35,029



19,374


Other International


6,758



10,214



28,105



43,532


Corporate and other


(28,090)



(15,470)



(57,248)



(31,876)


Consolidated


$

109,056



$

100,677



$

347,494



$

310,968


Adjusted EBITDAR margin:













Europe


33.1

%


35.3

%


33.6

%


33.8

%

West Africa


34.6

%


33.5

%


30.4

%


31.8

%

North America


40.0

%


33.1

%


37.5

%


31.0

%

Australia


25.4

%


15.0

%


24.0

%


17.9

%

Other International


20.7

%


33.2

%


27.0

%


45.4

%

Consolidated


25.3

%


27.0

%


26.6

%


28.0

%

 

 

BRISTOW GROUP INC. AND SUBSIDIARIES

AIRCRAFT COUNT

As of December 31, 2014

(Unaudited)






Aircraft in Consolidated Fleet





Percentage

of Current Period

Operating

Revenue


Helicopters







Small


Medium


Large


Training


Fixed

Wing



Unconsolidated

Affiliates(4)



Total (2)(3)

Total

Europe

46

%




11



72





30




113




113

West Africa

18

%


8



30



6





3




47




47

North America

13

%


30



22



15








67




67

Australia

11

%


2



8



21








31




31

Other International

8

%




28



9








37


131



168

Corporate and other

4

%








74






74




74

Total

100

%


40



99



123



74



33




369


131



500

Aircraft not currently in fleet:(5)





















On order






10



27








37




Under option






14



25








39




 

(1)

Includes flight hours for Eastern Airways beginning in February 2014 totaling 6,556 and 21,175 for the three and nine months ended December 31, 2014, respectively.

(2) 

Includes 18 aircraft held for sale and 115 leased aircraft as follows:

 



Held for Sale Aircraft in Consolidated Fleet



Helicopters






Small


Medium


Large


Training


Fixed

Wing


Total

Europe








8










8


West Africa





2




2










4


North America


















Australia








2










2


Other International





3













3


Corporate and other











1







1


Total





5




12




1







18


















Leased Aircraft in Consolidated Fleet



Helicopters









Small


Medium


Large


Training


Fixed

Wing


Total

Europe





3




37







13




53


West Africa





1




1










2


North America


1




13




5










19


Australia


2




2




7










11


Other International


















Corporate and other











30







30


Total


3




19




50




30




13




115


 

(3) 

The average age of our fleet, excluding training aircraft, was 10 years as of December 31, 2014.

(4) 

The 131 aircraft operated by our unconsolidated affiliates do not include those aircraft leased from us. Includes 59 helicopters (primarily medium) and 27 fixed wing aircraft owned and managed by Líder, our unconsolidated affiliate in Brazil, which is included in our Other International business unit.

(5) 

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

 

 

BRISTOW GROUP INC. AND SUBSIDIARIES

GAAP RECONCILIATIONS


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 registered public accounting firm.  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

Nine months ended



December 31,


December 31,



2014



2013



2014



2013




(In thousands, except

 per share amounts)

Adjusted operating income


$

43,564



$

49,056



$

161,303



$

165,293


Gain (loss) on disposal of assets


(26,331)



3,982



(25,594)



(803)


Special items


(8,317)



(23,536)



(17,537)



(24,934)


Operating income


$

8,916



$

29,502



$

118,172



$

139,556















Adjusted EBITDAR


$

109,056



$

100,677



$

347,494



$

310,968


Gain (loss) on disposal of assets


(26,331)



3,982



(25,594)



(803)


Special items


(5,086)



(23,536)



(16,207)



78,990


Depreciation and amortization


(23,625)



(23,655)



(77,164)



(70,332)


Rent expense


(46,282)



(28,255)



(114,839)



(74,630)


Interest expense


(7,094)



(7,253)



(22,415)



(36,701)


Provision for income taxes


(567)



(2,946)



(18,376)



(51,682)


Net income


$

71



$

19,014



$

72,899



$

155,810















Adjusted income tax expense


$

(6,520)



$

(10,096)



$

(27,901)



$

(28,756)


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


5,298



(836)



5,153



169


Tax benefit (expense) on special items


655



7,986



4,372



(23,095)


Income tax expense


$

(567)



$

(2,946)



$

(18,376)



$

(51,682)















Adjusted effective tax rate(1)


20.2

%


24.3

%


20.9

%


20.2

%

Effective tax rate (1)


88.9

%


13.4

%


20.1

%


24.9

%














Adjusted net income


$

24,719



$

31,331



$

102,159



$

113,891


Gain (loss) on disposal of assets


(21,033)



3,146



(20,441)



(634)


Special items


(4,654)



(15,550)



(12,495)



43,162


Net income (loss) attributable to Bristow Group


$

(968)



$

18,927



$

69,223



$

156,419















Adjusted diluted earnings per share


$

0.70



$

0.85



$

2.87



$

3.11


Gain (loss) on disposal of assets


(0.60)



0.09



(0.57)



(0.02)


Special items


(0.13)



(0.42)



(0.35)



1.18


Diluted earnings (loss) per share


(0.03)



0.51



1.94



4.28


 

(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
 December 31, 2014





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(1)


$



$

3,921



$

2,549



$

0.07




Inventory allowances(4)


(3,805)



(3,805)



(3,044)



(0.09)




Repurchase of 6 ¼% Senior Notes(5)




(690)



(594)



(0.02)




Accounting correction(6)


(5,325)



(5,325)



(4,207)



(0.12)




Accrued maintenance cost reversal(7)


813



813



642



0.02




Total special items


$

(8,317)



$

(5,086)



$

(4,654)



(0.13)











Three Months Ended
 December 31, 2013




Adjusted

Operating

Income


Adjusted

EBITDAR


Adjusted

Net Income


Adjusted

Diluted

Earnings

Per

Share





(In thousands, except per share amounts)



North America restructuring(2)


$

(2,101)



$

(2,101)



$

(1,366)



$

(0.04)




Líder taxes(11)


(19,335)



(19,335)



(12,567)



(0.34)




Severance costs in the Southern North Sea(12)


(2,100)



(2,100)



(1,617)



(0.04)




Total special items


$

(23,536)



$

(23,536)



$

(15,550)



(0.42)


























Nine Months Ended
 December 31, 2014




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(1)


$



$

3,921



$

2,549



$

0.07




North America restructuring(2)


(1,611)



(1,611)



(1,047)



(0.03)




CEO succession(3)


(5,501)



(5,501)



(3,576)



(0.10)




Inventory allowances(4)


(7,167)



(7,167)



(5,734)



(0.16)




Repurchase of 6 ¼% Senior Notes(5)




(2,591)



(2,113)



(0.06)




Accounting correction(6)


(4,071)



(4,071)



(3,216)



(0.09)




Accrued maintenance cost reversal(7)


813



813



642



0.02




Total special items


$

(17,537)



$

(16,207)



$

(12,495)



(0.35)
















Nine Months Ended
 December 31, 2013




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(8)


$



$

103,924



$

67,897



$

1.86




Cancellation of potential financing(9)






(8,276)



(0.23)




Inventory allowances(10)


(2,364)



(2,364)



(1,536)



(0.04)




North America restructuring(2)


(2,650)



(2,650)



(1,723)



(0.05)




Líder taxes(11)


(17,820)



(17,820)



(11,583)



(0.32)




Severance costs in the Southern North Sea(12)


(2,100)



(2,100)



(1,617)



(0.04)




Total special items


$

(24,934)



$

78,990



$

43,162



1.18



 

(1)

Relates to a gain resulting from the sale of our 50% interest in HCA for £2.7 million, or approximately $4.2 million

(2) 

Relates to a charges associated with the restructuring of our North America business unit and planned closure of our Alaska operations which related primarily to employee severance and retention costs.

(3)  

Relates to CEO succession cost.

(4) 

During the nine months ended December 31, 2014, we increased our inventory allowance by $3.8 million related to older aircraft models which we are in the process of exiting.

(5) 

Relates to premium and fees associated with the repurchase of some of our 6 ¼% Senior Notes due 2022.

(6) 

Relates to an accounting correction that impacted income by $5.3 million and $4.1 million for the three and nine months ended December 31, 2014, respectively.

(7) 

Relates to the reversal maintenance costs associated with a prior obligation to repair certain aircraft in our fleet we ultimately did not incur.

(8) 

Relates to a gain resulting from the sale of our 50% interest in the FB Entities for £74 million, or approximately $112.2 million.

(9) 

Relates to the cancellation of potential financing.

(10) 

During the nine months ended December 31, 2013, we increased our inventory allowance by $2.4 million as a result of our review of excess inventory on aircraft model types we ceased ownership of or classified all or a significant portion of as held for sale. A majority of this allowance relates to small aircraft types operating primarily in our North America business unit as we continue to move toward operating a fleet of mostly large and medium aircraft in this market.

(11) 

Relates to a payment Líder made to the government of Brazil for tax amnesty resulting in a $19.3 million impact for the December 2013 quarter and $17.8 million impact for the nine months ended December 31, 2013.

(12) 

Relates to $2.1 million of severance costs in the Southern North Sea in the December 2013 quarter.

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bristow-group-reports-financial-results-for-its-2015-fiscal-third-quarter-and-nine-months-ended-december-31-2014-300031927.html

SOURCE Bristow Group Inc.