FLYING SMART.
FLYING RIGHT.

Sagittis facilisis amet, vel, natoque integer. Rhoncus dapibus, tempor! Turpis nisi et ultricies vel. Magnis? Nascetur et enim eros ac rhoncus! Vut facilisis risus.

News Release

<< Back

Bristow Group Reports Fiscal 2010 First Quarter Financial Results

HOUSTON, Aug. 6 /PRNewswire-FirstCall/ -- Bristow Group Inc. (NYSE: BRS) today reported financial results for its fiscal 2010 first quarter ended June 30, 2009.

Highlights include:

  • Revenue of $290.5 million, an increase of 2% from the June 2008 quarter and 6% from the March 2009 quarter.
  • Operating income of $44.8 million, an increase of 14% from the June 2008 quarter and a decrease of 6% from the March 2009 quarter.
  • Net income of $23.7 million, a 5% increase from the June 2008 quarter and an 8% decrease from the March 2009 quarter.
  • Diluted earnings per share of $0.66, a decrease versus the June 2008 and March 2009 quarters.
  • Net cash generated by operating activities was $35 million in the June 2009 quarter.
  • On May 26, 2009, we acquired a 42.5% interest in Lider Aviacao Holding S.A. ("Lider"), the largest provider of helicopter services in Brazil, which contributed $1.3 million to operating income in the June 2009 quarter.
  • Our results for the June 2009 quarter were impacted by following significant items:
    • An increase in severance costs primarily driven by the departure of an executive officer that resulted in decreases in operating income of $4.2 million, net income of $3.0 million and diluted earnings per share of $0.08.
    • Earnings recognized from our investment in Lider that increased operating income by $1.3 million, net income by $0.9 million and diluted earnings per share by $0.03.
    • Changes in foreign currency exchange rates, which when compared to rates in the June 2008 quarter resulted in decreases in revenue of $35.0 million, operating income of $3.0 million, net income of $3.5 million and diluted earnings per share of $0.10, and when compared to rates in the March 2009 quarter resulted in increases in revenue of $10.8 million and operating income of $2.6 million, but had little impact on net income and diluted earnings per share.
  • Items that occurred in the June 2008 quarter which affect the comparability of our financial results include:
    • The reorganization of our operations in Mexico that increased operating income by $4.4 million, net income by $3.7 million and diluted earnings per share by $0.12.
    • An increase in Australia's compensation costs due to adjustments in employee tax and leave accruals relating to prior periods that resulted in a decrease of operating income of $1.3 million, net income of $0.9 million and diluted earnings per share of $0.03.
    • Inventory charges in the Eastern Hemisphere ("EH") Centralized Operations business unit that decreased operating income by $2.0 million, net income by $1.4 million and diluted earnings per share by $0.04.
  • Items that occurred in the March 2009 quarter which affect the comparability of our financial results include:
    • The net reduction in expense in Australia upon resolution of a local tax matter, which was partially offset by expense recorded for other local tax matters. These items collectively resulted in an increase in operating income of $1.3 million, net income of $0.8 million and diluted earnings per share of $0.02.
    • A reduction in maintenance expense in our EH Centralized Operations business unit associated with a credit resulting from the renegotiation of a "power by the hour" contract for aircraft maintenance with a third party provider, which increased operating income by $6.8 million, net income by $4.4 million and diluted earnings per share by $0.12.
    • An increase in our overall effective tax rate to 35.0% resulting from a one time provision for potential foreign taxes and a settlement of tax contingencies related to certain foreign income taxes, which decreased net income by $4.7 million and diluted earnings per share by $0.13.

Capital and Liquidity

  • At June 30, 2009, key balance sheet items, capital commitments and liquidity sources were:
    • $1.3 billion in stockholders' investment and $724 million of indebtedness.
    • $138 million in cash and a $100 million undrawn revolving credit facility.
    • $169 million in aircraft purchase commitments for 17 aircraft.

CEO Remarks

"Despite the current global economic situation and the impact on our industry, we are pleased with our June 2009 quarter results as we continue to experience good activity levels in a number of markets including Nigeria, the North Sea and Brazil. In Nigeria, activity levels continue to be strong despite a challenging political environment. In the North Sea, results were strong due to a temporary increase in ad hoc flying and other short-term contracts, as well as improved margins for Bristow Norway. In Brazil, our fiscal first quarter results included a contribution from our recent investment in Lider. Our results for the U.S. Gulf of Mexico were comparable to the March 2009 quarter, and were not impacted to the degree that other service companies have experienced. This is driven by our efforts to retain stable pricing and upgrade our fleet to larger, more efficient and more profitable aircraft," said William E. Chiles, President and Chief Executive Officer of Bristow Group.

"We continue to operate in a challenging economic and industry environment with significant volatility in energy prices, which has a direct impact on our customers' activity levels and translates into uncertainty in our business. However, we believe we are properly positioned and have the liquidity and financial flexibility to weather this uncertain market," Chiles concluded.

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. EDT (9:00 a.m. CDT) on Thursday, August 6, 2009, to review financial results for the June 2009 quarter. 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 2010 First Quarter Earnings Conference Call"
  • Replay: A replay via webcast will be available approximately one hour after the call's completion and will be accessible for approximately 90 days

Via Telephone within the U.S.:

  • Live: Dial toll free (877) 941-8631
  • Replay: A telephone replay will be available through August 20, 2009 and may be accessed by calling toll free (800) 406-7325, passcode: 4114028#

Via Telephone outside the U.S.:

  • Live: Dial (480) 629-9819
  • Replay: A telephone replay will be available through August 20, 2009 and may be accessed by calling (303) 590-3030, passcode: 4114028#

ABOUT BRISTOW GROUP INC.

Bristow Group Inc. is a leading provider of helicopter services to the worldwide offshore energy industry. 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, Brazil, Mexico, Nigeria, Norway 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 the impact of activity levels, commodity prices, market conditions, liquidity and financial flexibility. 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, 2009 and annual report on Form 10-K for the fiscal year ended March 31, 2009. 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)

Beginning in the June 2009 quarter, the following changes in presentation have been reflected:

  • Gain on disposal of assets which was previously included within operating expense has been reclassified to be included as a separate line below operating expense, but still within operating income. We believe that this presentation is preferable in order to provide a clearer presentation of our operating expenses.
  • Earnings from unconsolidated affiliates which were previously excluded from operating income are now included in this section. We believe that this presentation is preferable as the operations of our unconsolidated affiliates are integral to our operations.
  • With respect to our segment information, there is no longer a Southeast Asia business unit. Australia is now a separate business unit and Malaysia, China and Vietnam are now included in the Other International business unit. Additionally, we previously recorded certain cost reimbursement intercompany transactions between the EH Centralized Operations business unit and other business units as intrasegment revenue. We have reclassified these cost reimbursements from revenue to a reduction in expense.
  • We adopted Financial Accounting Standards Board Staff Position ("FSP") Accounting Principles Board 14-1, "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion." This FSP requires that convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) be accounted for with a liability component based on the fair value of a similar nonconvertible debt instrument and an equity component based on the excess of the initial proceeds from the convertible debt instrument over the liability component. Such excess represents proceeds related to the conversion option and is recorded as accumulated paid in capital. The liability is recorded at a discount, which is then amortized as additional non-cash interest expense over the convertible debt instrument's remaining life. Additionally, this FSP requires our bifurcation of the debt issuance costs into a component of debt and equity. Our adoption of this FSP has been applied retrospectively to all past periods presented for our 3% Convertible Senior Notes issued in June 2008 which are subject to this FSP.
  • We adopted Statement of Financial Accounting Standards ("SFAS") No. 160, "Noncontrolling Interests in Consolidated Financial Statements - An Amendment of ARB No. 51," that changed the accounting and reporting for minority interests. Upon adoption of SFAS No. 160, we have presented noncontrolling interest as stockholders' investment on our consolidated balance sheet as of March 31 and June 30, 2009 and presented net income attributable to noncontrolling interests separately on our consolidated statements of income for the three months ended June 30, 2008 and 2009. Prior year amounts were previously included in mezzanine stockholders' investment and minority interest expense on our consolidated balance sheets and consolidated statements of income, respectively.

In addition to statement of income and segment information for the three months ended June 30, 2008 and 2009, we have presented in the tables below the revised statements of income and segment information for the quarters ended September 30, 2008, December 31, 2008 and March 31, 2009 based on this new presentation and the retroactive adoption of the accounting standards discussed above.


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

                                         Three Months Ended
                                         ------------------
                         June 30,  Sept. 30, Dec. 31,  March 31,  June 30,
                          2008       2008      2008      2009       2009
                          ----       ----      ----      ----       ----
    Gross revenue:
      Operating revenue
       from non-
       affiliates        $241,134  $248,526  $236,491  $237,909  $248,891
      Operating revenue
       from affiliates     17,270    18,430    16,792    12,412    14,602
      Reimbursable revenue
       from non-
       affiliates          24,371    23,208    28,617    23,412    25,853
      Reimbursable revenue
       from affiliates      1,348     1,524     1,087     1,272     1,106
                            -----     -----     -----     -----     -----
                          284,123   291,688   282,987   275,005   290,452
                          -------   -------   -------   -------   -------
    Operating expense:
      Direct cost         186,973   188,393   176,038   166,971   180,677
      Reimbursable
       expense             26,067    24,681    28,689    23,550    26,657
      Depreciation and
       amortization        14,955    15,485    16,663    18,411    18,186
      General and
       administrative      27,206    25,984    25,586    24,880    28,802
                           ------    ------    ------    ------    ------
                          255,201   254,543   246,976   233,812   254,322
                          -------   -------   -------   -------   -------
    Gain on disposal
     of assets              2,665     3,302    37,678     1,660     6,009
    Earnings from
     unconsolidated
     affiliates, net of
     losses                 7,723     1,971    (1,417)    4,947     2,633
                            -----     -----     -----     -----     -----
      Operating income     39,310    42,418    72,272    47,800    44,772

    Interest income         1,447     3,205     1,087       265       222
    Interest expense       (8,602)   (9,065)   (8,276)   (9,207)  (10,012)
    Other income
     (expense), net         1,692     2,070    (1,522)    1,128    (1,481)
                            -----     -----     -----     -----     -----
      Income before
       provision for
       income taxes        33,847    38,628    63,561    39,986    33,501
    Provision for
     income taxes         (10,564)  (10,069)  (15,861)  (14,000)   (9,510)
                          -------   -------   -------   -------    ------
      Income from
       continuing
       operations          23,283    28,559    47,700    25,986    23,991
      Net income
       attributable to
       noncontrolling
       interests             (703)     (952)     (535)     (137)     (268)
                             ----      ----      ----      ----      ----
      Net income
       from continuing
       operations
       attributable to
       Bristow             22,580    27,607    47,165    25,849    23,723

    Discontinued
     operations:
      Loss from
       discontinued
       operations before
       provision for
       income taxes             -      (379)        -         -         -
      Provision for
       income taxes on
       discontinued
       operations               -       133         -         -         -
                              ---       ---       ---       ---       ---
      Loss from
       discontinued
       operations               -      (246)        -         -         -
                              ---       ---       ---       ---       ---
      Net income
       attributable to
       Bristow             22,580    27,361    47,165    25,849    23,723
      Preferred stock
       dividends           (3,162)   (3,163)   (3,162)   (3,163)   (3,162)
                           ------    ------    ------    ------    ------
      Net income
       available to
       common
       stockholders       $19,418   $24,198   $44,003   $22,686   $20,561
                          =======   =======   =======   =======   =======

    Basic earnings
     per common share:
      Earnings from
       continuing
       operations           $0.78     $0.84     $1.51     $0.78     $0.71
      Loss from
       discontinued
       operations               -     (0.01)        -         -         -
                              ---     -----       ---       ---       ---
      Net earnings          $0.78     $0.83     $1.51     $0.78     $0.71
                            =====     =====     =====     =====     =====
    Diluted earnings
     per common share:
      Earnings from
       continuing
       operations           $0.72     $0.77     $1.32     $0.72     $0.66
      Loss from
       discontinued
       operations               -         -         -         -         -
                              ---       ---       ---       ---       ---
      Net earnings          $0.72     $0.77     $1.32     $0.72     $0.66
                            =====     =====     =====     =====     =====
    Weighted average
     number of common
     shares
     outstanding:
      Basic                24,848    29,085    29,101    29,110    29,133
      Diluted              31,552    35,636    35,628    35,748    35,782


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

                                               March 31,         June 30,
                                                 2009              2009
                                                 ----              ----
    ASSETS
    Current assets:
      Cash and cash equivalents                $300,969          $138,295
      Accounts receivable from non-affiliates   194,030           208,481
      Accounts receivable from affiliates        22,644            23,580
      Inventories                               165,438           184,190
      Prepaid expenses and other assets          20,226            58,856
                                                 ------            ------
        Total current assets                    703,307           613,402
    Investment in unconsolidated affiliates      20,265           199,734
    Property and equipment - at cost:
      Land and buildings                         68,961            75,277
      Aircraft and equipment                  1,823,011         1,877,295
                                              ---------         ---------
                                              1,891,972         1,952,572
      Less - Accumulated depreciation and
       amortization                            (350,515)         (378,846)
                                               --------          --------
                                              1,541,457         1,573,726
    Goodwill                                     44,654            46,808
    Other assets                                 24,888            24,409
                                                 ------            ------
                                             $2,334,571        $2,458,079
                                             ==========        ==========

                   LIABILITIES AND STOCKHOLDERS' INVESTMENT

    Current liabilities:
      Accounts payable                          $44,892           $61,490
      Accrued wages, benefits and related taxes  39,939            28,996
      Income taxes payable                            -               551
      Other accrued taxes                         3,357             2,654
      Deferred revenues                          17,593            18,872
      Accrued maintenance and repairs            10,317            10,934
      Accrued interest                            6,434             8,608
      Deposits on assets held for sale                -            23,764
      Other accrued liabilities                  20,164            21,545
      Deferred taxes                              6,195            11,042
      Short-term borrowings and
       current maturities of long-term debt       8,948             8,953
                                                  -----             -----
        Total current liabilities               157,839           197,409
    Long-term debt, less current maturities     714,965           714,553
    Accrued pension liabilities                  81,380            96,384
    Other liabilities and deferred credits       16,741            18,061
    Deferred taxes                              127,266           133,138
    Commitments and contingencies
    Stockholders' investment:
      5.50% mandatory convertible
       preferred stock                          222,554           222,554
      Common stock                                  291               293
      Additional paid-in capital                436,296           439,712
      Retained earnings                         718,493           739,054
      Noncontrolling interests                   11,200            11,811
      Accumulated other comprehensive loss     (152,454)         (114,890)
                                               --------          --------
                                              1,236,380         1,298,534
                                              ---------         ---------
                                             $2,334,571        $2,458,079
                                             ==========        ==========


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

                                            Three Months Ended
                                            ------------------
                        June 30,   Sept. 30,  Dec. 31,    March 31,  June 30,
                          2008       2008       2008        2009      2009
                          ----       ----       ----        ----      ----
    Flight hours
     (excludes
     Bristow
     Academy and
     unconsolidated
     affiliates):
      U.S. Gulf of
       Mexico            37,639       34,891    25,553      19,603    20,421
      Arctic              2,437        3,695     1,279       1,082     2,348
      Latin America       8,539        9,595    10,836       9,281     8,586
      Europe             10,306       10,265    13,241      13,681    14,855
      West Africa         9,598        9,647     9,884       9,898     8,950
      Australia           4,040        3,813     3,649       3,585     2,880
      Other
       International      2,895        2,851     2,793       2,235     2,493
                          -----        -----     -----       -----     -----
          Consolidated
           total         75,454       74,757    67,235      59,365    60,533
                         ======       ======    ======      ======    ======


    Gross Revenue:
      U.S. Gulf of
       Mexico           $61,509      $62,491   $53,695     $45,006   $45,461
      Arctic              4,243        6,840     3,005       2,637     4,395
      Latin America      20,206       19,051    20,707      20,569    19,559
      WH Centralized
       Operations         2,260        2,909     3,134        (453)    1,485
      Europe             95,430       98,303   102,477     105,294   115,043
      West Africa        43,300       47,010    50,478      51,639    54,817
      Australia          33,113       29,226    25,029      26,433    28,163
      Other
       International     16,788       18,370    17,076      14,636    13,435
      EH Centralized
       Operations         2,315        4,057     2,796       2,966     3,659
      Bristow Academy     6,151        5,572     5,563       7,113     7,293
      Intrasegment
       eliminations      (1,224)      (2,137)     (973)       (891)   (2,860)
      Corporate              32           (4)        -          56         2
                            ---          ---       ---         ---       ---
          Consolidated
           total       $284,123     $291,688  $282,987    $275,005  $290,452
                       ========     ========  ========    ========  ========

    Operating income (loss):
      U.S. Gulf of
       Mexico            $7,989       $8,263    $8,721      $6,732    $6,240
      Arctic                519        1,900       184          (5)      605
      Latin America       9,701        3,973     5,501       3,903     4,779
      WH Centralized
       Operations          (676)         904    (2,509)     (4,172)   (3,209)
      Europe             19,466       22,211    13,757      19,811    18,778
      West Africa         6,516        8,024    13,167      18,603    14,238
      Australia           2,145       (1,218)    2,850       7,068     6,175
      Other
       International      3,298        3,945     5,429       7,257     3,287
      EH Centralized
       Operations        (5,422)      (2,243)   (4,705)     (6,622)   (2,893)
      Bristow Academy       546         (159)     (168)        534       931
      Gain on disposal
       of assets          2,665        3,302    37,678       1,660     6,009
      Corporate          (7,437)      (6,484)   (7,633)     (6,969)  (10,168)
                         ------       ------    ------      ------   -------
          Consolidated
           total        $39,310      $42,418   $72,272     $47,800   $44,772
                        =======      =======   =======     =======   =======

    Operating margin:
      U.S. Gulf of
       Mexico              13.0%        13.2%     16.2%       15.0%     13.7%
      Arctic               12.2%        27.8%      6.1%       -0.2%     13.8%
      Latin America        48.0%        20.9%     26.6%       19.0%     24.4%
      Europe               20.4%        22.6%     13.4%       18.8%     16.3%
      West Africa          15.0%        17.1%     26.1%       36.0%     26.0%
      Australia             6.5%        -4.2%     11.4%       26.7%     21.9%
      Other
       International       19.6%        21.5%     31.8%       49.6%     24.5%
      Bristow Academy       8.9%        -2.9%     -3.0%        7.5%     12.8%
            Consolidated
             total         13.8%        14.5%     25.5%       17.4%     15.4%

Linda McNeill, Investor Relations
(713) 267-7622

SOURCE: Bristow Group Inc.

CONTACT: Linda McNeill, Investor Relations, +1-713-267-7622, for Bristow Group Inc.
Web Site: http://www.bristowgroup.com