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News Release

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Bristow Group Reports Fiscal 2008 First Quarter Results

HOUSTON, Aug. 2 /PRNewswire-FirstCall/ -- Bristow Group Inc. (NYSE: BRS) today reported financial results for its fiscal 2008 first quarter ended June 30, 2007.

Highlights include:

  • Revenue of $245.0 million increased by 10.8 percent over the first quarter of fiscal year 2007. Revenue gains occurred in most of our business units, driven by improved pricing and the addition of new aircraft;
  • Operating income of $29.9 million decreased by 3.8 percent over the first quarter of fiscal year 2007, primarily due to higher compensation and maintenance costs within our West Africa and Eastern Hemisphere ("EH") Centralized Operations business units, partially offset by increased revenue;
  • Net income of $22.7 million increased 31.6 percent versus net income for the first quarter of fiscal year 2007. Increases in earnings from unconsolidated affiliates, interest income and other income contributed to the improvement in the latest quarter's net income;
  • Diluted earnings per share increased to $0.75 from $0.73 for the first quarter of fiscal year 2007. Diluted earnings per share for the first quarter of fiscal year 2008 reflected the assumed conversion of the Company's Mandatory Convertible Preferred Stock, which added approximately 6.5 million shares to the weighted average diluted shares calculation.

Capital and Liquidity:
  • The June 30, 2007 consolidated balance sheet reflected $902.9 million in stockholders' investment and $561.3 million of indebtedness;
  • We had $339.5 million in cash and an undrawn $100 million revolving credit facility;
  • We used $2.3 million of cash for operating activities, which included a $29.9 million increase in receivables, primarily from operations in Nigeria. We have received payment for a majority of these Nigeria receivables in July. We also used $121.8 million for capital expenditures, primarily for aircraft, and $12.9 million for the acquisition (net of cash acquired) of Bristow Academy during the first quarter of fiscal year 2008;
  • Aircraft purchase commitments totaled $255.0 million, with options totaling $732.9 million as of June 30, 2007.

William E. Chiles, President and Chief Executive Officer of Bristow Group Inc., said, "We saw strong financial performance and good execution against our strategic plan during the latest quarter, and we remain on target with our plan to expand our fleet and improve overall margins and operating efficiencies. The industry fundamentals continue to be very strong, and our customers remain committed to field development plans, which is the primary driver of our growth. We continue to believe demand for aircraft will exceed supply over the next several years, which should create good opportunities to enhance revenue and margin growth going forward."

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. EDT (9:00 a.m. CDT) on Friday, August 3, 2007, to review financial results for the fiscal quarter ended June 30, 2007. The conference call can be accessed as follows:

Via Webcast:

  • Visit Bristow Group's investor relations Web page at http://www.bristowgroup.com
  • Live: Click on the link for "Q1 2008 Bristow Group Inc. Earnings Conference Call"
  • Replay: A replay via webcast will be available approximately one hour after the call's completion
Via Telephone within the U.S.:
  • Live: Dial toll free (800) 218-0713
  • Replay: A telephone replay will be available through August 17, 2007, by dialing toll free (800) 405-2236, passcode: 11093169
Via Telephone outside the U.S.:
  • Live: Dial (303) 262-2142
  • Replay: A telephone replay will be available through August 17, 2007 by dialing (303) 590-3000, passcode: 11093169
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. Through its subsidiaries, affiliates and joint ventures, the Company has major transportation operations in the U.S. Gulf of Mexico and the North Sea, and in most of the other major offshore oil and gas producing regions of the world, including Alaska, Australia, Mexico, Nigeria, Russia and Trinidad. Additionally, the Company is a leading provider of production management services for oil and gas production facilities in the U.S. Gulf of Mexico. For more information, visit the Company's website at http://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 customer demand, future results, the addition of new aircraft to our fleet, future investments and earnings power of aircraft. 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 SEC filings, including but not limited to the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2007 and the annual report on Form 10-K for the year ended March 31, 2007. 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.

Contact:
Joe Baj, VP & Treasurer
(713) 267-7605
Linda McNeill, Treasury Manager
(713) 267-7622


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

                                                      Three Months Ended
                                                            June 30,
                                                  --------------------------
                                                     2006              2007
                                                  --------          --------
                                                          (Unaudited)
    Gross revenue:
      Operating revenue from non-affiliates       $181,786          $212,454
      Operating revenue from affiliates             12,079            11,097
      Reimbursable revenue from non-affiliates      26,125            20,348
      Reimbursable revenue from affiliates           1,072             1,103
                                                  --------          --------
                                                   221,062           245,002
                                                  --------          --------
    Operating expenses:
      Direct cost                                  138,470           163,836
      Reimbursable expense                          26,898            21,241
      Depreciation and amortization                 10,283            11,373
      General and administrative                    15,349            19,262
      Gain on disposal of assets                      (998)             (584)
                                                  --------          --------
                                                   190,002           215,128
                                                  --------          --------
        Operating income                            31,060            29,874
    Earnings from unconsolidated affiliates,
     net of losses                                   1,559             3,390
    Interest income                                  1,290             2,198
    Interest expense                                (3,236)           (2,933)
    Other income (expense), net                     (4,785)              426
                                                  --------          --------
        Income before provision for income
         taxes and minority interest                25,888            32,955
    Provision for income taxes                      (8,543)           (9,834)
    Minority interest                                 (116)             (449)
                                                  --------          --------
      Net income                                    17,229            22,672
      Preferred stock dividends                         --            (3,162)
                                                  --------          --------
      Net income available to common
       stockholders                                $17,229           $19,510
                                                  --------          --------

    Earnings per common share:
      Basic                                          $0.74             $0.83
                                                  --------          --------
      Diluted                                        $0.73             $0.75
                                                  --------          --------

    Weighted average common shares outstanding:
      Basic                                         23,393            23,603
                                                  --------          --------
      Diluted                                       23,508            30,219
                                                  --------          --------



                     BRISTOW GROUP INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                                (In thousands)
                                                  March 31,         June 30,
                                                    2007              2007
                                                 ---------        ----------
                                                                  (Unaudited)
                   ASSETS
    Current assets:
      Cash and cash equivalents                   $184,188          $339,542
      Accounts receivable from non-affiliates      158,770           187,836
      Accounts receivable from affiliates           17,199            19,694
      Inventories                                  157,870           169,635
      Prepaid expenses and other                    17,947            17,768
                                                 ---------        ----------
       Total current assets                        535,974           734,475
    Investments in unconsolidated
     affiliates                                     46,828            47,561
    Property and equipment -- at cost:
      Land and buildings                            51,850            56,339
      Aircraft and equipment                     1,141,578         1,269,390
                                                 ---------        ----------
                                                 1,193,428         1,325,729
      Less: accumulated depreciation and
       amortization                               (301,520)         (308,258)
                                                 ---------        ----------
                                                   891,908         1,017,471
    Goodwill                                        20,368            27,119
    Other assets                                    10,725            17,814
                                                 ---------        ----------
                                                $1,505,803        $1,844,440
                                                 ---------        ----------

        LIABILITIES AND STOCKHOLDERS' INVESTMENT
    Current liabilities:
      Accounts payable                             $42,343           $43,556
      Accrued wages, benefits and related
       taxes                                        38,281            38,877
      Income taxes payable                           4,377             2,240
      Other accrued taxes                            9,084             9,944
      Deferred revenues                             16,283            17,372
      Accrued maintenance and repairs               12,309            13,083
      Other accrued liabilities                     22,828            22,027
      Deferred taxes                                17,611            17,962
      Short-term borrowings and current
       maturities of long-term debt                  4,852             7,923
                                                 ---------        ----------
       Total current liabilities                   167,968           172,984
    Long-term debt, less current maturities        254,230           553,382
    Accrued pension liabilities                    113,069           112,992
    Other liabilities and deferred credits          17,345            15,112
    Deferred taxes                                  76,089            81,795
    Minority interest                                5,445             5,267
    Commitments and contingencies
    Stockholders' investment:
      5.50% mandatory convertible
       preferred stock                             222,554           222,554
      Common stock                                     236               237
      Additional paid-in capital                   169,353           172,373
      Retained earnings                            515,589           535,099
      Accumulated other comprehensive loss         (36,075)          (27,355)
                                                 ---------        ----------
                                                   871,657           902,908
                                                 ---------        ----------
                                                $1,505,803        $1,844,440
                                                 ---------        ----------



                       BRISTOW GROUP INC. AND SUBSIDIARIES
                 CORPORATE ITEMS AFFECTING THE COMPARABILITY OF RESULTS
                     (In thousands, except per share amounts)
                                   (Unaudited)

                                         Three Months Ended June 30,
                             ------------------------------------------------
                                        2006                   2007
                             ------------------------  ----------------------
                                               Diluted                Diluted
                                               Earnings               Earnings
                              Pre-tax   Net      per   Pre-tax   Net    per
                             Earnings  Income   Share  Earnings Income Share
                             --------  ------   -----  -------- ------ ------

    Investigations:
       SEC (1)                 $(108)    $(70)    $--    $--     $--     $--
       DOJ (2)                  (591)    (384)  (0.02)    --      --      --
    Tax contingencies related
       items (3)                  --      800    0.03     --     918    0.03
    7 1/2% Senior Notes
       due 2017 (4)               --       --      --   (357)   (232)  (0.01)
    Foreign currency
       transaction gains
       (losses) (5)           (4,809)  (3,126)  (0.13)   401     261    0.01
    Preferred Stock (6)           --       --      --    826     537   (0.19)
                             -------  -------  ------  -----  ------  ------
    Total                    $(5,508) $(2,780) $(0.12)  $870  $1,484  $(0.16)
                             -------  -------  ------   ----  ------  ------


    (1) Represents costs incurred in conjunction with the SEC investigation
        regarding findings from the internal review initiated by the Audit
        Committee of our board of directors in fiscal year 2005 of certain
        payments made by two of our affiliated entities in a foreign country.
        These costs are included in general & administrative costs in our
        consolidated statements of income.

    (2) Represents legal and other professional fees incurred in connection
        with a document subpoena received from the Antitrust Division of the
        Department of Justice ("DOJ") in June 2005, which related to a grand
        jury investigation of potential antitrust violations among providers
        of helicopter transportation services in the U.S. Gulf of Mexico
        focusing on activities during the period from January 1, 2000 to
        June 13, 2005.  These costs are included in general & administrative
        costs in our consolidated statements of income.

    (3) Represents the net reduction in our accruals for tax contingencies
        resulting from our evaluation of the need for certain tax reserves.
        These amounts represent a direct reduction in our provision for income
        taxes in our consolidated statements of income.

    (4) Represents the effect on interest expense, net of interest income from
        invested proceeds, resulting from the issuance of 7 1/2% Senior Notes
        due 2017 in June 2007.

    (5) Represents foreign currency transaction gains and losses resulting
        from changes in exchange rates during the applicable periods.  The
        effects of these foreign currency transaction gains and losses were
        offset to a large extent by corresponding charges or benefits in the
        cumulative translation adjustment in stockholders' investment with no
        overall economic effect.  These amounts are included in other income
        (expense), net in our consolidated statements of income.

    (6) Represents the effect of the preferred stock offering completed in
        September and October 2006.  The net income effect results from
        interest income earned on remaining cash proceeds generated from the
        offering.  Diluted earnings per share for the three months ended
        June 30, 2007 was reduced by the effect of the inclusion of weighted
        average shares resulting from the assumed conversion of the preferred
        stock at the conversion rate that results in the most dilution,
        partially offset by the impact of higher interest income.



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

                                                      Three Months Ended
                                                           June 30,
                                                 --------------------------
                                                    2006               2007
                                                 --------             ------
                                                          (Unaudited)
    Flight hours (excludes Bristow
      Academy and unconsolidated
      affiliates)
     Helicopter Services
      North America                                42,609             40,271
      South & Central America                       9,285             11,367
      Europe                                       10,170             10,821
      West Africa                                   8,883              8,898
      Southeast Asia                                3,206              3,344
      Other International                           2,052              2,547
                                                 --------             ------
        Consolidated total                         76,205             77,248
                                                 --------             ------

    Gross revenue:
    Helicopter Services
      North America                               $63,368            $60,939
      South & Central America                      13,012             16,036
      Europe                                       71,981             83,357
      West Africa                                  31,736             33,283
      Southeast Asia                               17,040             22,492
      Other International                           8,955             11,455
      EH Centralized Operations                     3,074              6,805
      Bristow Academy                                  --              3,019
      Intrasegment eliminations                    (2,860)            (6,235)
                                                 --------             ------
    Total Helicopter Services                     206,306            231,151
    Production Management Services                 17,684             16,543
    Corporate                                         (25)                --
    Intersegment eliminations                      (2,903)            (2,692)
                                                 --------           --------
        Consolidated total                       $221,062           $245,002
                                                 --------           --------

    Operating income:
     Helicopter Services
      North America                                $9,233            $10,714
      South & Central America                       3,970              3,685
      Europe                                       14,096             14,575
      West Africa                                   4,333              2,797
      Southeast Asia                                2,435              4,127
      Other International                           1,516              2,265
      EH Centralized Operations                    (1,767)            (4,279)
      Bristow Academy                                  --                (91)
                                                 --------            -------
    Total Helicopter Services                      33,816             33,793
    Production Management Services                  1,413              1,089
    Gain on disposal of assets                        998                584
    Corporate                                      (5,167)            (5,592)
                                                 --------            -------
        Consolidated total                        $31,060            $29,874
                                                 --------            -------

    Operating margin:
     Helicopter Services
      North America                                  14.6%              17.6%
      South & Central America                        30.5%              23.0%
      Europe                                         19.6%              17.5%
      West Africa                                    13.7%               8.4%
      Southeast Asia                                 14.3%              18.3%
      Other International                            16.9%              19.8%
      EH Centralized Operations                     (57.5)%            (62.9)%
      Bristow Academy                                  N/A              (3.0)%
    Total Helicopter Services                        16.4%              14.6%
    Production Management Services                    8.0%               6.6%
        Consolidated total                           14.1%              12.2%

SOURCE:
Bristow Group Inc.

CONTACT:
Joe Baj
VP & Treasurer
+1-713-267-7605
or Linda McNeill
Treasury Manager
+1-713-267-7622
both of Bristow Group Inc.