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 Third Quarter Financial Results

HOUSTON, Feb 03, 2010 /PRNewswire via COMTEX/ -- Bristow Group Inc. (NYSE: BRS) today reported financial results for its fiscal 2010 third quarter ended December 31, 2009.

For the December 2009 quarter:

  • Revenue was $303.3 million, an increase of 7% from the December 2008 quarter and 4% from the September 2009 quarter.
  • Operating income was $39.7 million, a decrease of 45% from the December 2008 quarter and 26% from the September 2009 quarter.
  • Net income was $27.1 million, a decrease of 43% from the December 2008 quarter and 20% from the September 2009 quarter.
  • Diluted earnings per share was $0.74, a decrease of $0.58 from the December 2008 quarter and $0.18 from the September 2009 quarter.
  • The following items impacted the comparability of our results between the December 2009 and December 2008 quarters:

                       December 2009 Quarter            December 2008 Quarter
                       ---------------------            ---------------------
                                          Diluted                      Diluted
                                          Earnings                    Earnings
                    Operating     Net        Per    Operating    Net     Per
                     Income     Income      Share    Income    Income   Share
                    ---------   ------    --------  ---------  ------  -------
                             (In thousands, except per share amounts)
    GOM Asset
     Sale(1)         $     -    $     -    $    -    $37,780   $24,417   $0.69
    Departure of
     two officers(2)  (1,744)    (1,448)    (0.04)         -         -       -
    Aircraft
     incident
     charge(3)        (1,978)    (1,642)    (0.05)         -         -       -
    Hedging
     gains(4)              -      2,328      0.06          -         -       -
    Tax items(5)           -     (1,000)    (0.03)         -     4,001    0.11
                         ---     -------    ------       ---     -----    ----
        Total        $(3,722)   $(1,762)   $(0.06)   $37,780   $28,418   $0.80
                     ========   ========   =======   =======   =======   =====



    ----

    (1) Represents the impact on the December 2008 quarter of the gain
        generated from the sale of 53 aircraft, related inventory, spare
        parts and offshore fuel equipment in the U.S. Gulf of Mexico (the
        "GOM Asset Sale") on October 30, 2008 included in gain on GOM Asset
        Sale on the consolidated statements of income.

    (2) Represents compensation costs associated with the departure of two of
        the Company's officers during the December 2009 quarter included in
        general and administrative costs on the consolidated statements of
        income.

    (3) Represents a charge in the December 2009 quarter related to damage to
        an aircraft operating in Nigeria as a result of a flight incident
        included in direct cost on the consolidated statements of income.

    (4) Represents the impact of pre-tax hedging gains of $2.8 million
        realized during the December 2009 quarter due to termination of
        forward contracts on euro-denominated aircraft purchase commitments
        included in other income (expense), net on the consolidated
        statements of income.

    (5) Represents the unfavorable impact on our provision for income taxes in
        the December 2009 quarter from tax contingency items and changes in
        our expected foreign tax credit utilization and the favorable impact
        on our provision for income taxes in the December 2008 quarter of a
        benefit related to tax elections filed in the December 2008 quarter
        as part of an internal reorganization and the resolution of uncertain
        tax positions.

  • In addition to the items impacting comparability of results in the table above, operating income, net income and diluted earnings per share were also impacted by:
    • A $6.9 million increase in operating income in Australia primarily resulting from an improvement in our cost structure in this market since the December 2008 quarter, the addition of aircraft earning higher rates and a favorable impact from changes in exchange rates,
    • A $4.3 million increase in operating income in Eastern Hemisphere ("EH") Centralized Operations primarily resulting from an increase in cost allocations to other business units and a shift since the December 2008 quarter to allocate exchange rate exposures to other operating business units, partially offset by a charge of $1.1 million to reduce the carrying value of obsolete inventory,
    • A $5.2 million increase in other income (expense), net, which includes the hedging gains of $2.8 million discussed above,
    • A decrease in our effective tax rate to 17.3% in the December 2009 quarter from 25.0% in the December 2008 quarter primarily resulting from the indefinite reinvestment outside the U.S. of foreign earnings and our ability to realize foreign tax credits,
    • A $4.2 million decrease in operating income in the U.S. Gulf of Mexico primarily resulting from decreased demand for aircraft in this market driven by decreased drilling activity,
    • A $3.7 million decrease in operating income in our Other International business unit that primarily resulted from the grounding of our aircraft in Kazakhstan since mid-October 2009, and
    • A $4.1 million increase in net interest expense that resulted from lower cash amounts invested and reduced investment performance as well as less capitalized interest.
  • Additionally, our results for the December 2009 quarter were favorably impacted by changes in exchange rates versus the December 2008 quarter, which resulted in an increase in operating income of $5.2 million, net income of $6.2 million and diluted earnings per share of $0.17. These increases are primarily reflected in our results for Europe, West Africa and Australia and in other income (expense), net.
  • The following items impacted the comparability of our results between the December 2009 and September 2009 quarters:

                         December 2009 Quarter       September 2009 Quarter
                         ---------------------       ----------------------
                                          Diluted                      Diluted
                                          Earnings                    Earnings
                    Operating     Net       Per     Operating    Net     Per
                     Income     Income     Share     Income    Income   Share
                    ---------   ------    --------  ---------  ------  -------
                              (In thousands, except per share amounts)
    Departure of two
     officers(1)       $(1,744) $(1,448) $(0.04)    $      -  $      -  $   -
    Aircraft
     incident charge(2) (1,978)  (1,642)  (0.05)           -         -      -
    Hedging gains(3)         -    2,328    0.06            -       849   0.02
    Tax items(4)             -   (1,000)  (0.03)           -    (2,075) (0.06)
    Reversal of bad
     debt(5)                 -        -       -        2,500     1,875   0.05
    Mexico earnings
     change(6)               -        -       -        1,300     1,075   0.03
                           ---      ---     ---        -----     -----   ----
        Total          $(3,722) $(1,762) $(0.06)      $3,800    $1,724  $0.04
                       ======== ======== =======     =======   =======  =====



    ----


    (1) Represents compensation costs associated with the departure of two of
        the Company's officers during the December 2009 quarter included in
        general and administrative costs on the consolidated statements of
        income.

    (2) Represents a charge in the December 2009 quarter related to damage to
        an aircraft operating in Nigeria as a result of a flight incident
        included in direct cost on the consolidated statements of income.

    (3) Represents the impact of pre-tax hedging gains of $2.8 million and
        $1.1 million realized during the December 2009 and September 2009
        quarters, respectively, due to termination of forward contracts on
        euro-denominated aircraft purchase commitments included in other
        income (expense), net on the consolidated statements of income.

    (4) Represents the unfavorable impact on our provision for income taxes in
        the December 2009 and September 2009 quarters from tax contingency
        items and changes in our expected foreign tax credit utilization.

    (5) Represents the reversal of a bad debt reserve in Kazakhstan in the
        September 2009 quarter included in direct cost on the consolidated
        statements of income.

    (6) Represents out of period earnings from our unconsolidated affiliate in
        Mexico realized in the September 2009 quarter included in earnings
        (losses) from unconsolidated affiliates, net on our consolidated
        statements of income.

  • In addition to the items impacting comparability of results in the table above, operating income, net income and diluted earnings per share were also impacted by:
    • A decrease in our effective tax rate to 17.3% in the December 2009 quarter from 25.0% in the September 2009 quarter primarily resulting from the indefinite reinvestment outside the U.S. of foreign earnings and our ability to realize foreign tax credits, and
    • A $4.9 million decrease in operating income in our Other International business unit primarily resulting from the grounding of our aircraft in Kazakhstan since mid-October 2009.

For the nine months ended December 31, 2009:

  • Revenue was $885.4 million, an increase of 3% from the nine months ended December 31, 2008.
  • Operating income was $138.1 million, a decrease of 10% from the nine months ended December 31, 2008.
  • Net income was $84.8 million, a decrease of 15% from the nine months ended December 31, 2008.
  • Diluted earnings per share was $2.32, a decrease of $0.52 from the nine months ended December 31, 2008.
  • The following items impacted the comparability of our results between the nine months ended December 31, 2009 and 2008:

                                        Nine Months Ended
                    ----------------------------------------------------------
                          December 31, 2009              December 31, 2008
                    ------------------------------  --------------------------
                                          Diluted                      Diluted
                                          Earnings                    Earnings
                    Operating     Net       Per    Operating    Net      Per
                     Income     Income     Share     Income    Income   Share
                    ---------   ------    --------  ---------  ------  -------
                               (In thousands, except per share amounts)
    GOM Asset
     Sale(1)         $     -   $     -    $    -    $37,780   $24,417    $0.71
    Departure of
     three
     officers(2)      (4,874)   (3,720)    (0.10)         -         -        -
    Hedging gains(3)       -     3,004      0.08          -         -        -
    Tax items(4)           -    (5,200)    (0.14)         -     4,700     0.14
                         ---    ------     -----        ---     -----     ----
        Total        $(4,874)  $(5,916)   $(0.16)   $37,780   $29,117    $0.85
                     ========  ========   =======   =======   =======    =====



    ----

    (1) Represents the impact on the nine months ended December 31, 2008 of
        the gain generated from the GOM Asset Sale on October 30, 2008
        included in gain on GOM Asset Sale on the consolidated statements of
        income.

    (2) Represents compensation costs associated with the departure of three
        of the Company's officers during the nine months ended December 31,
        2009 included in general and administrative costs on the consolidated
        statements of income.

    (3) Represents the impact of pre-tax hedging gains of $3.9 million
        realized during the nine months ended December 31, 2009 due to
        termination of forward contracts on euro-denominated aircraft
        purchase commitments included in other income (expense), net on the
        consolidated statements of income.

    (4) Represents the unfavorable impact on our provision for income taxes in
        the nine months ended December 31, 2009 from tax contingency items
        and changes in our expected foreign tax credit utilization and the
        favorable impact on our provision for income taxes in the nine months
        ended December 31, 2008 of a benefit related to tax elections filed
        in the December 2008 quarter as part of an internal reorganization
        and the resolution of uncertain tax positions.
 

  • In addition to the items impacting comparability of results in the table above, operating income, net income and diluted earnings per share were also impacted by:
    • A $16.1 million increase in operating income in West Africa primarily resulting from a favorable impact from changes in exchange rates and improved pricing,
    • A $19.0 million increase in operating income in Australia primarily resulting from cost reductions in this market and the addition of aircraft earning higher rates,
    • A $11.3 million increase in operating income in EH Centralized Operations primarily resulting from an increase in cost allocations to other business units and a shift in the current fiscal year to allocate exchange rate exposures to other operating business units,
    • A decrease in our effective tax rate to 23.8% in the nine months ended December 31, 2009 from 26.8% the same period a year ago primarily resulting from the indefinite reinvestment outside the U.S. of foreign earnings and our ability to realize foreign tax credits,
    • An $8.7 million decrease in operating income in the U.S. Gulf of Mexico primarily resulting from decreased demand for aircraft in this market driven by decreased drilling activity,
    • A $9.3 million decrease in operating income in Western Hemisphere ("WH") Centralized Operations primarily resulting from an under recovery of maintenance costs from other Western Hemisphere business units driven by lower flight hours,
    • A $6.5 million decrease in operating income in Europe primarily resulting from an unfavorable impact of changes in exchange rates versus the same period a year ago, partially offset by a full period's contribution of operating income from our Bristow Norway operations which were consolidated beginning October 31, 2008, and
    • A $10.6 million increase in net interest expense primarily resulting from lower cash amounts invested and reduced investment performance, increased interest expense from our issuance of $115 million of convertible senior notes in June 2008 and less capitalized interest.

Capital and Liquidity

  • At December 31, 2009, key balance sheet items, capital commitments and liquidity sources were:
    • $1.4 billion in stockholders' investment and $717 million of indebtedness,
    • $107 million in cash and a $100 million undrawn revolving credit facility, and
    • $117 million in aircraft purchase commitments for 11 aircraft.
  • Net cash generated by operating activities was $69 million and net cash used in investing activities was $110 million in the December 2009 quarter.

CEO Remarks

"We realized solid operating results in Europe, West Africa and Australia during our third fiscal 2010 quarter," said William E. Chiles, President and Chief Executive Officer of Bristow Group.

"In Latin America, our investment in Lider in Brazil contributed to these positive results but was offset by poor performance from our joint venture in Mexico. In Europe, overall activity levels were strong. We're also seeing robust activity levels in Nigeria despite a challenging political environment. In Australia, our local team continues to make improvements in operations and cost structure and in our activity level.

"The U.S. Gulf of Mexico saw continued weakness, but we have not been impacted to as large a degree as other offshore service companies. Our efforts to maintain stable pricing and to upgrade our fleet to larger, more efficient and more profitable aircraft serving larger projects farther offshore in deeper water has us well positioned for opportunities that might arise.

"As previously announced, we changed our management organization structure to better focus on winning and doing work more effectively. Some aspects of the reorganization will take time to fully implement. We believe that this reorganization coupled with financial flexibility and adequate liquidity have positioned us well to weather the current uncertain market in order to benefit from a turnaround in industry conditions which we believe is likely over the next year or two," Chiles added.

CONFERENCE CALL

Management will conduct a conference call starting at 9:00 a.m. EST (8:00 a.m. CST) on Thursday, February 4, 2010, to review financial results for the December 2009 quarter. 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 "Bristow Group Fiscal 2010 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 (877) 941-8610
  • Replay: A telephone replay will be available through February 18, 2010 and may be accessed by calling toll free (800) 406-7325, passcode: 4201643#

Via Telephone outside the U.S.:

  • Live: Dial (480) 629-9819
  • Replay: A telephone replay will be available through February 18, 2010 and may be accessed by calling (303) 590-3030, passcode: 4201643#

ABOUT BRISTOW GROUP INC.

Bristow Group Inc. is a leading provider of helicopter services to the worldwide offshore energy industry and one of two helicopter service providers to the offshore energy industry with global operations. Through its subsidiaries, affiliates and joint ventures, the Company has significant operations in most major offshore oil and gas producing regions of the world, including the North Sea, the U.S. Gulf of Mexico, Nigeria, Australia and Latin America. 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 the impact of activity levels, business performance, turnaround timing, market and industry 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 December 31, 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.

CONTACT:
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)
                                  (Unaudited)

                                    Three Months Ended       Nine Months Ended
                                    ------------------       -----------------
                                December 31,   September 30,     December 31,
                                ------------   -------------     ------------
                               2009      2008     2009          2009     2008
                               ----      ----     ----          ----     ----
    Gross revenue:
      Operating revenue
       from non-affiliates   $260,907  $236,491  $247,642  $757,440  $726,151
      Operating revenue
       from affiliates         14,581    16,792    17,460    46,643    52,492
      Reimbursable
       revenue from non-
       affiliates              27,615    28,617    24,746    78,214    76,196
      Reimbursable
       revenue from
       affiliates                 203     1,087     1,767     3,076     3,959
                                  ---     -----     -----     -----     -----
                              303,306   282,987   291,615   885,373   858,798
                              -------   -------   -------   -------   -------
    Operating expense:
      Direct cost             189,456   176,038   173,392   543,525   551,404
      Reimbursable
       expense                 28,219    28,689    26,304    81,180    79,437
      Depreciation and
       amortization            20,663    16,663    18,470    57,319    47,103
      General and
       administrative          30,758    25,586    29,686    89,246    78,776
                               ------    ------    ------    ------    ------
                              269,096   246,976   247,852   771,270   756,720
                              -------   -------   -------   -------   -------

    Gain on GOM Asset
     Sale                           -    37,780         -         -    37,780
    Gain on disposal
     of assets                  2,448      (102)    4,880    13,337     5,865
    Earnings from
     unconsolidated
     affiliates, net
     of losses                  3,068    (1,417)    4,924    10,625     8,277
                                -----    -------    -----    ------     -----
      Operating Income         39,726    72,272    53,567   138,065   154,000

    Interest income               365     1,087       210       797     5,739
    Interest expense          (10,979)   (8,276)  (10,640)  (31,631)  (25,943)
    Other income
     (expense), net             3,695    (1,522)    1,809     4,023     2,240
                                -----    -------    -----     -----     -----
      Income before
       provision for
       income taxes            32,807    63,561    44,946   111,254   136,036

    Provision for
     income taxes              (5,681)  (15,861)  (11,236)  (26,427)  (36,494)
                               -------  --------  --------  -------- --------
      Net income from
       continuing
       operations              27,126    47,700    33,710    84,827    99,542
      Loss from
       discontinued
       operations,
       net of tax                  -         -         -         -       (246)
                                 ---       ---       ---       ---      -----
      Net income              27,126    47,700    33,710    84,827     99,296
      Net income
       attributable to
       noncontrolling
       interests                (448)     (535)     (540)   (1,256)    (2,190)
                                -----     -----     -----   -------   -------
      Net income
       attributable to
       Bristow                26,678    47,165    33,170    83,571     97,106
      Preferred stock
       dividends                   -    (3,162)   (3,163)   (6,325)    (9,487)
                                 ---    -------   -------   -------   -------
      Net income
       available to
       common stockholders   $26,678   $44,003   $30,007   $77,246    $87,619
                             =======   =======   =======   =======    =======

    Basic earnings per
     common share:
      Earnings from
       continued
       operations              $0.74     $1.51     $0.98     $2.43      $3.18
      Loss from
       discontinued
       operations                  -         -         -         -      (0.01)
                                 ---       ---       ---       ---      -----
      Net earnings             $0.74     $1.51     $0.98     $2.43      $3.17
                               =====     =====     =====     =====      =====

    Diluted earnings
     per common share:
      Earnings from
       continued
       operations              $0.74     $1.32     $0.92     $2.32      $2.85
      Loss from
       discontinued
       operations                  -         -         -         -      (0.01)
                                 ---       ---       ---       ---     ------
      Net earnings             $0.74     $1.32     $0.92     $2.32      $2.84
                               =====     =====     =====     =====      =====

    Weighted average
     number of common
     shares outstanding:
      Basic                   35,896    29,101    30,491    31,733     27,635
      Diluted                 36,271    35,628    36,101    36,070     34,185



                         BRISTOW GROUP INC. AND SUBSIDIARIES
                              CONSOLIDATED BALANCE SHEETS
                                    (In thousands)
                                                      December 31,   March 31,
                                                         2009          2009
                                                         ----          ----
                                                     (Unaudited)
                                       ASSETS
    Current assets:
      Cash and cash equivalents                        $107,059      $300,969
        Accounts receivable from non-affiliates         196,927       194,030
        Accounts receivable from affiliates              34,710        22,644
      Inventories                                       187,220       165,438
      Prepaid expenses and other current assets          26,582        20,226
                                                         ------        ------
        Total current assets                            552,498       703,307
    Investment in unconsolidated affiliates             203,916        20,265
    Property and equipment - at cost:
      Land and buildings                                 93,241        68,961
      Aircraft and equipment                          2,014,147     1,823,011
                                                      ---------     ---------
                                                      2,107,388     1,891,972
      Less - Accumulated depreciation and
       amortization                                    (400,475)     (350,515)
                                                       ---------     ---------
                                                      1,706,913     1,541,457
    Goodwill                                             46,971        44,654
    Other assets                                         23,261        24,888
                                                         ------        ------
                                                     $2,533,559    $2,334,571
                                                     ==========    ==========

                     LIABILITIES AND STOCKHOLDERS' INVESTMENT
    Current liabilities:
      Accounts payable                                  $50,434       $44,892
      Accrued wages, benefits and related taxes          39,486        39,939
      Income taxes payable                                3,429             -
      Other accrued taxes                                 2,528         3,357
      Deferred revenues                                  22,697        17,593
      Accrued maintenance and repairs                    13,352        10,317
      Accrued interest                                    8,609         6,434
      Other accrued liabilities                          18,406        20,164
      Deferred taxes                                      9,348         6,195
      Short-term borrowings and current
       maturities of long-term debt                      19,211         8,948
                                                         ------         -----
        Total current liabilities                       187,500       157,839
    Long-term debt, less current maturities             698,144       714,965
    Accrued pension liabilities                          99,276        81,380
    Other liabilities and deferred credits               27,151        16,741
    Deferred taxes                                      149,389       127,266

    Stockholders' investment:
      5.50% mandatory convertible preferred stock             -       222,554
      Common stock                                          359           291
      Additional paid-in capital                        669,174       436,296
      Retained earnings                                 795,739       718,493
      Noncontrolling interests                           10,261        11,200
      Accumulated other comprehensive loss             (103,434)     (152,454)
                                                      ---------     ---------
                                                      1,372,099     1,236,380
                                                      ---------     ---------
                                                     $2,533,559    $2,334,571
                                                     ==========    ==========



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

                                                         Nine Months Ended
                                                         -----------------
                                                            December 31,
                                                            ------------
                                                         2009           2008
                                                         ----           ----
    Cash flows from operating activities:
      Net income                                        $84,827       $99,296
    Adjustments to reconcile net income to net cash
     provided by (used in) operating activities:
      Depreciation and amortization                      57,319        47,103
      Deferred income taxes                              18,892        13,802
      Loss on disposal of discontinued operations             -           379
      Discount amortization on long-term debt             2,213         1,504
      Gain on asset dispositions                        (13,337)       (5,865)
      Gain on GOM Asset Sale                                  -       (37,780)
      Gain on Heliservicio investment sale                    -        (1,438)
      Stock-based compensation expense                    9,914         7,697
      Equity in earnings from unconsolidated affiliates
       (in excess of) below dividends received           (6,853)        7,910
      Tax benefit related to stock-based compensation      (409)         (242)
    Increase (decrease) in cash resulting from
     changes in:
      Accounts receivable                                   794        (9,342)
      Inventories                                       (11,382)      (16,600)
      Prepaid expenses and other assets                  14,555       (22,887)
      Accounts payable                                    4,638         5,657
      Accrued liabilities                                 3,216        20,855
      Other liabilities and deferred credits             (1,370)       (6,177)
                                                         ------        ------
    Net cash provided by operating activities           163,017       103,872
    Cash flows from investing activities:
      Capital expenditures                             (250,272)     (388,007)
      Proceeds from asset dispositions                   74,973        86,681
      Acquisitions, net of cash received               (178,961)      (15,590)
                                                       ---------      --------
    Net cash used in investing activities              (354,260)     (316,916)
    Cash flows from financing activities:
      Proceeds from borrowings                                -       115,000
      Debt issuance costs                                     -        (3,768)
      Repayment of debt and debt redemption premiums    (10,068)      (20,996)
      Partial prepayment of put/call obligation             (52)         (184)
      Preferred stock dividends paid                     (6,325)       (9,487)
      Issuance of common stock                            1,336       225,260
      Tax benefit related to stock-based compensation       409           242
                                                            ---           ---
    Net cash provided by (used in) financing
     activities                                         (14,700)      306,067
    Effect of exchange rate changes on
     cash and cash equivalents                           12,033       (18,420)
                                                         ------       -------
    Net increase (decrease) in cash and
     cash equivalents                                  (193,910)       74,603
    Cash and cash equivalents at beginning
     of period                                          300,969       290,050
                                                        -------       -------
    Cash and cash equivalents at end of period         $107,059      $364,653
                                                       ========      ========
    Supplemental disclosure of cash flow information:
      Cash paid during the period for:
        Interest                                        $31,830       $30,446
        Income taxes                                     $9,904       $17,109
      Non-cash investing activities:
        Contribution of note receivable and
         aircraft to RLR                             $        -       $(6,551)
        Aircraft received for investment in
         Heliservicio                                $        -        $2,410



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

                                     Three Months Ended      Nine Months Ended
                                -----------------------------   ------------
                                 December 31,   September 30,   December 31,
                                --------------  -------------   ------------
                                2009      2008      2009      2009      2008
                                ----      ----      ----      ----      ----
    Flight hours
     (excludes Bristow
     Academy and
     unconsolidated
     affiliates):
      U.S. Gulf of Mexico      16,452    25,445    18,372    54,593    97,975
      Arctic                    1,260     1,279     2,843     6,451     7,411
      Latin America             7,906    10,836     9,228    25,766    28,970
      Europe                   13,597    13,241    14,242    42,694    33,812
      West Africa               9,175     9,884     8,470    26,595    29,129
      Australia                 3,304     3,649     2,794     8,978    11,502
      Other International       2,828     2,793     2,582     7,903     8,539
                                -----     -----     -----     -----     -----
        Consolidated total     54,522    67,127    58,531   172,980   217,338
                               ======    ======    ======   =======   =======


    Gross revenue:
      U.S. Gulf of Mexico     $42,456   $53,695   $42,614  $130,531  $177,695
      Arctic                    3,228     3,005     6,123    13,746    14,088
      Latin America            19,076    20,707    20,786    59,421    59,964
      WH Centralized
       Operations               1,461     3,134       791     3,737     8,303
      Europe                  119,267   102,477   113,890   348,200   296,210
      West Africa              58,736    50,478    51,452   165,005   140,788
      Australia                38,188    25,029    30,333    96,684    87,368
      Other International      14,269    17,076    16,221    43,925    52,234
      EH Centralized
       Operations               2,653     2,797     4,559    10,871     9,169
      Bristow Academy           6,026     5,563     7,151    20,470    17,286
      Intrasegment
       eliminations            (2,054)     (974)   (2,303)   (7,217)   (4,335)
      Corporate                     -         -        (2)        -        28
                                  ---       ---       ---       ---       ---
        Consolidated total   $303,306  $282,987  $291,615  $885,373  $858,798
                             ========  ========  ========  ========  ========


    Operating income (loss):
      U.S. Gulf of Mexico      $4,488    $8,721    $5,509   $16,237   $24,973
      Arctic                       22       184     2,085     2,712     2,603
      Latin America             4,695     5,501     7,314    16,788    19,175
      WH Centralized
       Operations              (4,216)   (2,509)   (4,156)  (11,581)   (2,281)
      Europe                   15,968    13,757    14,172    48,918    55,434
      West Africa              15,092    13,167    14,466    43,796    27,707
      Australia                 9,727     2,850     6,869    22,771     3,777
      Other International       1,695     5,429     6,611    11,593    12,672
      EH Centralized
       Operations                (422)   (4,705)    2,247    (1,068)  (12,370)
      Bristow Academy            (385)     (168)      723     1,269       219
      Gain on GOM Asset Sale        -    37,780         -         -    37,780
      Gain on disposal of
       assets                   2,448      (102)    4,880    13,337     5,865
      Corporate                (9,386)   (7,633)   (7,153)  (26,707)  (21,554)
                               ------    ------    ------   -------   -------
        Consolidated total    $39,726   $72,272   $53,567  $138,065  $154,000
                              =======   =======   =======  ========  ========


    Operating margin:
      U.S. Gulf of Mexico        10.6%     16.2%     12.9%     12.4%     14.1%
      Arctic                      0.7%      6.1%     34.1%     19.7%     18.5%
      Latin America              24.6%     26.6%     35.2%     28.3%     32.0%
      Europe                     13.4%     13.4%     12.4%     14.0%     18.7%
      West Africa                25.7%     26.1%     28.1%     26.5%     19.7%
      Australia                  25.5%     11.4%     22.6%     23.6%      4.3%
      Other International        11.9%     31.8%     40.8%     26.4%     24.3%
      Bristow Academy            (6.4)%    (3.0)%    10.1%      6.2%      1.3%
        Consolidated total       13.1%     25.5%     18.4%     15.6%     17.9%



                         BRISTOW GROUP INC. AND SUBSIDIARIES
                                   AIRCRAFT COUNT
                              AS OF DECEMBER 31, 2009

                   Aircraft in Consolidated Fleet
                   ------------------------------
                             Helicopters
                             -----------
                                                           Unconsolidated
                                              Fixed   Total Affiliates
                  Small Medium Large Training Wing     (1)      (2)      Total
                  ----- ------ ----- -------- ----    ----- -----------  -----
    U.S.
     Gulf
     of
     Mexico       62     26     7        -      -      95        -         95
    Arctic        13      2     -        -      1      16        -         16
    Latin
     America       5     32     2        -      -      39       89        128
    Europe         -     11    40        -      -      51        -         51
    West
     Africa       12     32     5        -      4      53        -         53
    Australia      2     10    18        -      -      30        -         30
    Other
     International -     11    10        -      -      21       44         65
    EH
     Centralized
     Operations    -      -     -        -      -       -       63         63
    Bristow
     Academy       -      -     -       74      -      74        -         74
                 ---    ---   ---      ---    ---     ---      ---        ---
    Total         94    124    82       74      5     379      196        575
                 ===    ===   ===      ===    ===     ===      ===        ===
     Aircraft
     not
     currently
     in
     fleet:(3)
      On order     -      6     5        -      -      11
      Under
       option      -     41    13        -      -      54



    ----

    (1) Includes 11 aircraft held for sale.

    (2) The 196 aircraft operated or managed by our unconsolidated affiliates
        are in addition to those aircraft leased from us.

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



SOURCE: Bristow Group Inc.