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