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

Offshore Logistics Summarizes Financial Results for the First Half of Fiscal Year 2006

HOUSTON--(BUSINESS WIRE)--Jan. 25, 2006--Offshore Logistics, Inc. (NYSE:OLG) today summarized its financial results for the first half of fiscal 2006, which were reported in its Form 10-Q filing of Jan. 12, 2006.

For the six months ended Sept. 30, 2005, net income was $26.6 million or $1.13 per diluted share on 23.6 million shares, compared to restated net income of $28.2 million or $1.22 per diluted share on 23.1 million shares for the six months ended Sept. 30, 2004. Revenues for the first half of fiscal 2006 totaled $375.3 million versus a restated $331.0 million for the same six-month period of fiscal 2005.

Financial results for the six-month period ended Sept. 30, 2004 were affected by restatements that reflect adjustments to accrue for liabilities and expenses identified in connection with the Company's internal review, to properly report customer reimbursables as revenues rather than offsetting such amounts against the related expenses, and to properly record expenses for severance benefits and payroll taxes associated with certain foreign subsidiaries. These matters are more fully discussed in the Sept. 30, 2005 Form 10-Q.

William E. Chiles, president and chief executive officer of Offshore Logistics, Inc., said, "During the first half of fiscal 2006, our Company delivered solid performance as we addressed and made substantial progress on a number of difficult legacy issues. We are optimistic, however, that the internal measures we have implemented are allowing us to once again dedicate all of our attention and resources to growing this business and delivering long-term value for our shareholders."

At Sept. 30, 2005, the Company's consolidated balance sheet reflected $503.1 million in stockholders' investment, $94.3 million in cash and cash equivalents and $265.3 million of indebtedness.

Conference Call Scheduled

Management will conduct a conference call starting at 5:00 p.m. EST (4:00 p.m. CST) on Jan. 25, 2006, to review financial results for the six months ended Sept. 30, 2005. The conference call can be accessed as follows:

    Via Webcast:
    --  Visit Offshore Logistics' investor relations Web page at
        http://www.olog.com/page3.php
    --  Click on the link for "FY2006 Six-Months Conference Call"
    --  Approximately one hour after the call's completion, a Webcast
        replay will be available and will remain available for
        approximately 30 days

    Via Telephone within U.S.:
    --  Toll free (800) 299-9630, passcode: 60119486
    --  A telephone replay will be available through Jan. 31, 2006 by
        dialing toll free (888) 286-8010, passcode: 70783999

    Via Telephone outside the U.S.:
    --  Dial (617) 786-2904, passcode: 60119486
    --  A telephone replay will be available through Feb. 8, 2006 by
        dialing (617) 801-6888, passcode: 70783999

    About Offshore Logistics

Offshore Logistics, Inc. is a major provider of helicopter transportation services to the oil and gas industry worldwide. Through its subsidiaries, affiliates and joint ventures, the Company provides transportation services in most oil and gas producing regions including the United States Gulf of Mexico and Alaska, the North Sea, Africa, Mexico, South America, Australia, Russia, Egypt and the Far East. Additionally, the Company is a leading provider of production management services for oil and gas production facilities in the Gulf of Mexico. The Company's Common Stock is traded on the New York Stock Exchange under the symbol OLG.

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. 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 annual report on From 10-K for the year ended March 31, 2005 and the Company's reports on Form 10-Q for the quarters ended June 30, 2005 and September 30, 2005. Offshore Logistics, 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.

               OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES
                        SELECTED OPERATING DATA
                  (In thousands, except percentages)
                              (Unaudited)

                            Three Months Ended     Six Months Ended
                               September 30,         September 30,
                           --------------------- ---------------------
                              2005       2004       2005       2004
                           ---------- ---------- ---------- ----------
                                      (Restated)            (Restated)
Flight hours (excluding
 unconsolidated affiliates):
  Helicopter services:
    North America             37,454     32,606     73,232     64,424
    South and Central
     America                  10,113     11,868     19,629     23,747
    Europe                    10,263     11,685     19,994     22,442
    West Africa                8,904      8,606     17,539     16,403
    Southeast Asia             3,005      2,822      5,727      5,509
    Other International        1,410        570      2,722      1,156
                           ---------- ---------- ---------- ----------
      Total                   71,149     68,157    138,843    133,681
                           ========== ========== ========== ==========

                            Three Months Ended     Six Months Ended
                               September 30,         September 30,
                           --------------------- ---------------------
                              2005       2004       2005       2004
                           ---------- ---------- ---------- ----------
                                      (Restated)            (Restated)
Operating revenue:
  Helicopter Services:
    North America            $61,253    $46,287   $113,701    $91,478
    South and Central
     America                  10,315     14,030     20,221     28,090
    Europe                    67,764     66,138    132,057    125,720
    West Africa               28,157     23,581     55,775     45,594
    Southeast Asia            14,600     12,487     28,408     24,543
    Other International        6,584      4,428     12,598      7,002
    Intrasegment
     eliminations             (9,848)    (7,928)   (18,606)   (16,076)
                           ---------- ---------- ---------- ----------
  Total Helicopter
   Services                  178,825    159,023    344,154    306,351
  Production Management
   Services                   16,942     14,630     33,911     28,321
  Corporate                    2,792      1,349      5,591      5,144
  Intersegment
   eliminations               (4,154)    (4,375)    (8,314)    (8,788)
                           ---------- ---------- ---------- ----------
      Consolidated total    $194,405   $170,627   $375,342   $331,028
                           ========== ========== ========== ==========

Operating income:
  Helicopter Services:
    North America            $14,592     $7,430    $24,375    $15,303
    South and Central
     America                     226      3,429        661      6,671
    Europe                     9,999      9,592     15,498     12,821
    West Africa                2,076      2,684      4,445      5,041
    Southeast Asia               377        963      1,084      2,066
    Other International          889        (90)     1,796       (676)
                           ---------- ---------- ---------- ----------
  Total Helicopter
   Services                   28,159     24,008     47,859     41,226
  Production Management
   Services                    1,238      1,002      2,558      1,767
  Gain (loss) on disposal
   of assets                  (1,494)     3,558       (902)     6,156
  Corporate                   (5,808)    (3,416)   (12,375)    (4,646)
                           ---------- ---------- ---------- ----------
      Consolidated total     $22,095    $25,152    $37,140    $44,503
                           ========== ========== ========== ==========

Operating margin:
  Helicopter Services:
    North America               23.8%      16.1%      21.4%      16.7%
    South and Central
     America                     2.2%      24.4%       3.3%      23.7%
    Europe                      14.8%      14.5%      11.7%      10.2%
    West Africa                  7.4%      11.4%       8.0%      11.1%
    Southeast Asia               2.6%       7.7%       3.8%       8.4%
    Other International         13.5%     (2.0)%      14.3%     (9.7)%
  Total Helicopter
   Services                     15.7%      15.1%      13.9%      13.5%
  Production Management
   Services                      7.3%       6.8%       7.5%       6.2%
Consolidated total              11.4%      14.7%       9.9%      13.4%



               OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES
              Condensed Consolidated Statements of Income
               (In thousands, except per share amounts)
                              (Unaudited)

                               Three Months Ended    Six Months Ended
                                  September 30,        September 30,
                              -------------------  -------------------
                                2005       2004        2005     2004
                              --------  ---------  --------  ---------
                                       (Restated)           (Restated)
Gross revenue:
     Operating revenue       $194,405  $ 170,627  $375,342  $ 331,028

Operating expense:
     Direct cost              143,912    127,765   285,126    249,642
     Depreciation and
      amortization             11,200     10,580    21,507     21,030
     General and
      administrative           15,704     10,688    30,667     22,009
     Loss (gain) on disposal
      of assets                 1,494     (3,558)      902     (6,156)
                              --------  ---------  --------  ---------
                              172,310    145,475   338,202    286,525
                              --------  ---------  --------  ---------

         Operating income      22,095     25,152    37,140     44,503

Earnings from unconsolidated
 affiliates, net of losses        373      2,401       419      3,921
Interest income                   949        747     1,981      1,183
Interest expense               (3,677)    (3,985)   (7,385)    (7,914)
Other income, net                (769)       473     2,013        561
                              --------  ---------  --------  ---------

         Income before
          provision for
          income taxes
         and minority
          interest             18,971     24,788    34,168     42,254

Provision for income taxes      4,293      7,988     7,469     13,778
Minority interest                 (44)      (149)      (94)      (238)
                              --------  ---------  --------  ---------

         Net income          $ 14,634  $  16,651  $ 26,605  $  28,238
                              ========  =========  ========  =========

Net income per common share:
   Basic                     $   0.63  $    0.73  $   1.14  $    1.24
                              ========  =========  ========  =========
   Diluted                   $   0.62  $    0.71  $   1.13  $    1.22
                              ========  =========  ========  =========

Weighted average shares
 outstanding:
   Basic                       23,342     22,933    23,331     22,794
                              ========  =========  ========  =========
   Diluted                     23,618     23,325    23,603     23,126
                              ========  =========  ========  =========



               OFFSHORE LOGISTICS, INC AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands)

                                              September 30, March 31,
                                                  2005        2005
                                               -----------  ----------
                                               (Unaudited)
                    ASSETS
 Current assets:
   Cash and cash equivalents                  $    94,275  $  146,440
   Accounts receivable                            173,893     133,839
   Inventories                                    142,040     140,706
   Prepaid expenses and other                      10,478      11,459
                                               -----------  ----------
     Total current assets                         420,686     432,444
 Investments in unconsolidated affiliates          39,462      37,176
 Property and equipment -- at cost:
   Land and buildings                              33,211      32,543
   Aircraft and equipment                         852,144     827,031
                                               -----------  ----------
                                                  885,355     859,574
 Less: accumulated depreciation and
  amortization                                   (252,642)   (250,512)
                                               -----------  ----------
                                                  632,713     609,062
 Goodwill                                          26,819      26,809
 Other assets                                      44,401      44,085
                                               -----------  ----------
                                              $ 1,164,081  $1,149,576
                                               ===========  ==========
   LIABILITIES AND STOCKHOLDERS' INVESTMENT
 Current liabilities:
   Accounts payable                           $    38,211  $   35,640
   Accrued liabilities                            112,243     101,904
   Deferred taxes                                  15,047      17,740
 Current maturities of long-term debt               6,497       6,413
                                               -----------  ----------
     Total current liabilities                    171,998     161,697
 Long-term debt, less current maturities          258,790     255,667
 Other liabilities and deferred credits           154,720     164,728
 Deferred taxes                                    71,203      69,977
 Minority interest                                  4,245       4,514
 Commitments and contingencies (Note E)
 Stockholders' investment:
   Common Stock, $0.01 par value, authorized
    35,000,000 shares; outstanding 23,341,508
    shares and 23,314,708 shares at September
    30 and March 31, respectively (exclusive
    of 1,281,050 treasury shares)                     233         233
   Additional paid-in capital                     157,744     157,100
   Retained earnings                              416,320     389,715
   Accumulated other comprehensive loss           (71,172)    (54,055)
                                               -----------  ----------
                                                  503,125     492,993
                                               -----------  ----------
                                              $ 1,164,081  $1,149,576
                                               ===========  ==========

    CONTACT: Offshore Logistics, Inc.
             Investor Relations:
             Joe Baj, 713-267-7605
             Fax: 713-267-7620

    SOURCE: Offshore Logistics, Inc.