Offshore Logistics, Inc.
2000 W. Sam Houston Parkway South
Suite 1700
Houston, TX 77042
Tel: 713-267-7600
Fax: 713-267-7620
News Release
OFFSHORE LOGISTICS SUMMARIZES FINANCIAL RESULTS FOR THE FIRST HALF OF FISCAL YEAR 2006
HOUSTON (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.
— more —
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:
o Visit Offshore Logistics’ investor relations Web page athttp://www.olog.com/page3.php
o Click on the link for “FY2006 Six-Months Conference Call”
o Webcast replay available 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.:
oToll free (800) 299-9630, passcode: 60119486
oA telephone replay will be available through Jan. 31, 2006 by dialing toll free (888) 286-8010, passcode: 70783999
Via Telephone outside the U.S.:
oDial (617) 786-2904, passcode: 60119486
o 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.
Investor Relations Contact:
Joe Baj
(713) 267-7605
— more —
(financial tables follow)
OFFSHORE LOGISTICS, INC. AND SUBSIDIARIES
SELECTED OPERATING DATA
(In thousands, except percentages)
(Unaudited)
Three Months Ended September 30, | Six Months Ended 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 | ||||||||||||||||
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 Africa | 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 September 30, | Six Months Ended 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, 2005 | March 31, 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 | 32,543 | ||||||
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, $.01 par value, authorized 35,000,000 shares; | ||||||||
Outstanding 23,341,508 and 23,314,708 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 | |||||