EXHIBIT 99.1
News Release
Linda McNeill, Investor Relations
(713) 267-7622
BRISTOW GROUP REPORTS STRONG FINANCIAL RESULTS
FOR THE DECEMBER 2007 QUARTER
| § | Revenue increased by 24% |
| § | Net earnings per share more than doubled |
HOUSTON, February 5, 2008 – Bristow Group Inc. (NYSE: BRS) today reported financial results for its December 2007 quarter.
Highlights include:
For the quarter ended December 31, 2007:
| § | Revenue of $261.5 million increased by 24% over the December 2006 quarter. Revenue gains occurred primarily in our Europe, West Africa and Southeast Asia business units, driven by increases in rates for helicopter services, increased demand for helicopter services from our existing customers and the addition of new aircraft. |
| § | Operating income of $36.7 million increased 82% from $20.2 million in the December 2006 quarter, and operating margin increased to 14.1% versus 9.6% for the December 2006 quarter. The improvements were primarily the result of higher revenue and the inclusion in the December 2007 quarter of $4.1 million of gains on disposal of assets compared to $1.0 million for the December 2006 quarter. Additionally, operating income and margin were impacted by the items discussed below. |
| § | Net income of $20.1 million increased 91% from $10.5 million for the December 2006 quarter. Net income for the December 2007 quarter includes the previously announced loss of $6.2 million ($0.20 per diluted share) on the sale of our Grasso Production Management (“Grasso”) business in November 2007, which is presented as discontinued operations. |
| § | Diluted earnings per share from continuing operations almost tripled to $0.86 from $0.29 for the December 2006 quarter, while diluted earnings per share on net earnings increased to $0.66 from $0.31 for the December 2006 quarter. |
| § | Diluted earnings per share for the December 2007 quarter reflects the assumed conversion of the Company’s Mandatory Convertible Preferred Stock, which added approximately 6.5 million to our weighted average diluted shares. However, diluted earnings per share for the December 2006 quarter was reduced by the preferred stock dividends, while the weighted-average shares outstanding did not include the assumed conversion of preferred stock into common shares. The computation was different in the December 2006 quarter because inclusion of these shares and preferred stock dividends would have had an anti-dilutive effect for that period. |
| § | Operating results for the December 2007 quarter included the following items: |
| o | An impairment charge of $1.8 million related to inventory utilized on S-61 search and rescue (“SAR”) configured aircraft. |
| o | $2.5 million of retroactive compensation cost increases recorded within our West Africa operations resulting from the completion of union negotiations. |
| o | $1.5 million of retroactive rate increases with a major customer in Nigeria. |
Excluding these items, operating income would have been $39.5 million, operating margin would have been 15.1%, income from continuing operations would have been $28.0 million and diluted EPS from continuing operations would have been $0.92.
For the nine months ended December 31, 2007:
| § | Revenue of $752.5 million increased 20% over the same period of fiscal year 2007 due to revenue gains in most business units, driven by increases in rates for helicopter services, increased demand for helicopter services from our existing customers and the addition of new aircraft. |
| § | Operating income of $115.3 million increased 45% from $79.4 million for the nine months ended December 31, 2006, and operating margin increased to 15.3% versus 12.7% for the nine months ended December 31, 2006. The improvements were primarily the result of the improvement in rates. Additionally, operating income and margin were impacted by the items discussed below. |
| § | Net income of $76.8 million increased 64% from $46.8 million for the nine months ended December 31, 2006. Net income for the nine months ended December 31, 2007 includes the previously announced loss of $6.2 million ($0.20 per diluted share) on the sale of our Grasso business in November 2007, which is presented as discontinued operations. |
| § | Diluted earnings per share from continuing operations increased 57% to $2.68 from $1.71 for the nine months ended December 31, 2006 while diluted earnings per share on net earnings increased to $2.52 from $1.80 for the nine months ended December 31, 2006. |
| § | Diluted earnings per share for the nine months ended December 31, 2007 and 2006 reflected the assumed conversion of the Company’s Mandatory Convertible Preferred Stock, which added approximately 6.5 million and 2.4 million shares, respectively, to our weighted-average diluted shares. |
| § | Operating results for the nine months ended December 31, 2007 included the following items: |
| o | An impairment charge of $1.8 million related to inventory utilized on S-61 SAR configured aircraft. |
| o | Reversal of $1.0 million of previously accrued SEC settlement costs. |
| o | Reversal of a $5.4 million accrual for sales tax contingency in Nigeria. |
Excluding these items, operating income would have been $110.7 million, operating margin would have been 14.7%, income from continuing operations would have been $78.5 million and diluted EPS from continuing operations would have been $2.58.
Capital and Liquidity:
| § | The December 31, 2007 consolidated balance sheet reflected $959.3 million in stockholders’ investment and $607.8 million of indebtedness. |
| § | We had $315.3 million in cash and an undrawn $100 million revolving credit facility. |
| § | We generated $57.8 million of cash from operating activities, $344.8 million in net proceeds from the issuance of 7 ½% senior notes, $23.0 million of cash from asset dispositions and $22.0 million in net cash from the sale of Grasso during the nine months ended December 31, 2007. |
| § | We used $288.8 million for capital expenditures – primarily for aircraft – and $14.6 million for the acquisitions (net of cash acquired) of Bristow Academy and Vortex during the nine months ended December 31, 2007. |
| § | Aircraft purchase commitments totaled $344.7 million for 28 aircraft, with options totaling $472.6 million for 34 aircraft as of December 31, 2007. |
William E. Chiles, President and Chief Executive Officer of Bristow Group Inc., said, “We remain very pleased with our operational and financial performance. The delivery of new aircraft as well as rate increases in several operating regions produced strong revenues and earnings performance in the December quarter. We renegotiated and extended the last of our major contracts in Nigeria at significantly better rates during the quarter, which should result in improved operating margins for our West Africa business unit – and move us closer to meeting our return on capital goal for this region. We also saw improved rates from the North Sea.
“We continued to invest in our fleet with the exercise of options on eight additional aircraft, including five large- and three medium-sized helicopters from Sikorsky and Eurocopter.
“During the quarter we also completed the sale of our Grasso Production Management business, which makes Bristow Group a pure play in helicopter transportation services principally to the offshore energy industry.”
CONFERENCE CALL
Management will conduct a conference call starting at 10:00 a.m. EST (9:00 a.m. CST) on Wednesday, February 6, 2008, to review financial results for the fiscal quarter ended December 31, 2007. 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 “Q3 2008 Bristow Group Inc. Earnings Conference Call” |
| § | Replay: A replay via webcast will be available approximately one hour after the call’s completion |
Via Telephone within the U.S.:
| § | Live: Dial toll free (800) 219-6110 |
| § | Replay: A telephone replay will be available through Friday, February 22, by dialing toll free (800) 405-2236, passcode: 11106959# |
Via Telephone outside the U.S.:
| § | Live: Dial (303) 262-2143 |
| § | Replay: A telephone replay will be available through Friday, February 22, by dialing (303) 590-3000, passcode: 11106959# |
ABOUT BRISTOW GROUP INC.
Bristow Group Inc. is the leading provider of helicopter services to the worldwide offshore energy industry based on the number of aircraft operated. 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, Mexico, Nigeria, Russia 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 margins, rate of return and the addition of new aircraft to our fleet. 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, 2007 and the annual report on Form 10-K for the year ended March 31, 2007. 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)
On November 2, 2007, we sold our Grasso business, which comprised our entire Production Management Services segment. The financial results for our Production Management Services segment are classified as discontinued operations in the consolidated statements of income and balance sheets presented below. In addition to statements of incomefor the three and ninemonths ended December 31, 2007and the same periods in the prior year, we have provided in the tables at the end of this release our consolidated statements of income for the three months ended June 30, September 30, and December 31, 2006 and March 31, June 30, September 30 and December 31, 2007 with the financial results for our Production Management Services segment classified as discontinued operations to conform to the current presentation.
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
| | Three Months Ended December 31, | | Nine Months Ended December 31, | |
| | 2006 | | 2007 | | 2006 | | 2007 | |
| Gross revenue: | | | | | | | | | | | | | | | |
| Operating revenue from non-affiliates | $ | 180,343 | | | $ | 222,831 | | | $ | 530,323 | | | $ | 642,598 | |
| Operating revenue from affiliates | | 10,701 | | | | 13,633 | | | | 34,411 | | | | 38,588 | |
| Reimbursable revenue from non-affiliates | | 18,793 | | | | 23,439 | | | | 58,794 | | | | 66,075 | |
| Reimbursable revenue from affiliates | | 1,172 | | | | 1,617 | | | | 3,390 | | | | 5,218 | |
| | | 211,009 | | | | 261,520 | | | | 626,918 | | | | 752,479 | |
| Operating expense: | | | | | | | | | | | | | | | |
| Direct cost | | 140,867 | | | | 169,704 | | | | 408,977 | | | | 475,416 | |
| Reimbursable expense | | 20,575 | | | | 24,344 | | | | 62,691 | | | | 68,587 | |
| Depreciation and amortization | | 11,015 | | | | 12,445 | | | | 31,942 | | | | 36,127 | |
| General and administrative | | 19,355 | | | | 22,373 | | | | 49,662 | | | | 61,018 | |
| Gain on disposal of assets | | (1,044 | ) | | | (4,094 | ) | | | (5,706 | ) | | | (3,921 | ) |
| | | 190,768 | | | | 224,772 | | | | 547,566 | | | | 637,227 | |
| Operating income | | 20,241 | | | | 36,748 | | | | 79,352 | | | | 115,252 | |
| Earnings from unconsolidated affiliates, net of losses | | 2,106 | | | | 3,725 | | | | 5,393 | | | | 11,233 | |
| Interest income | | 3,767 | | | | 3,697 | | | | 6,027 | | | | 9,781 | |
| Interest expense | | (2,539 | ) | | | (6,684 | ) | | | (8,646 | ) | | | (16,135 | ) |
| Other income (expense), net | | (5,226 | ) | | | 989 | | | | (11,319 | ) | | | 1,775 | |
| Income from continuing operations before provision for income taxes and minority interest | | 18,349 | | | | 38,475 | | | | 70,807 | | | | 121,906 | |
| Provision for income taxes | | (8,158 | ) | | | (12,302 | ) | | | (25,390 | ) | | | (40,035 | ) |
| Minority interest | | (257 | ) | | | 61 | | | | (1,049 | ) | | | (392 | ) |
| Income from continuing operations | | 9,934 | | | | 26,234 | | | | 44,368 | | | | 81,479 | |
| Discontinued operations: | | | | | | | | | | | | | | | |
| Income (loss) from discontinued operations before provision for income taxes | | 812 | | | | (1,429 | ) | | | 3,721 | | | | 690 | |
Provision for income taxes on discontinued operations | | (295 | ) | | | (4,657 | ) | | | (1,334 | ) | | | (5,399 | ) |
| Income (loss) from discontinued operations | | 517 | | | | (6,086 | ) | | | 2,387 | | | | (4,709 | ) |
| Net income | | 10,451 | | | | 20,148 | | | | 46,755 | | | | 76,770 | |
| Preferred stock dividends | | (3,150 | ) | | | (3,162 | ) | | | (3,471 | ) | | | (9,487 | ) |
| Net income available to common stockholders | $ | 7,301 | | | $ | 16,986 | | | $ | 43,284 | | | $ | 67,283 | |
| Basic earnings per common share: | | | | | | | | | | | | | | | |
| Earnings from continuing operations | $ | 0.29 | | | $ | 0.97 | | | $ | 1.75 | | | $ | 3.03 | |
| Earnings (loss) from discontinued operations | | 0.02 | | | | (0.26 | ) | | | 0.10 | | | | (0.19 | ) |
| Net earnings | $ | 0.31 | | | $ | 0.71 | | | $ | 1.85 | | | $ | 2.84 | |
| Diluted earnings per common share: | | | | | | | | | | | | | | | |
| Earnings from continuing operations | $ | 0.29 | | | $ | 0.86 | | | $ | 1.71 | | | $ | 2.68 | |
| Earnings (loss) from discontinued operations | | 0.02 | | | | (0.20 | ) | | | 0.09 | | | | (0.16 | ) |
| Net earnings | $ | 0.31 | | | $ | 0.66 | | | $ | 1.80 | | | $ | 2.52 | |
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
| | | | | | |
| | | | | (Unaudited) | |
| ASSETS |
| Current assets: | | | | | | | |
| | Cash and cash equivalents | | $ | 178,268 | | $ | 315,265 | |
| | Accounts receivable from non-affiliates | | | 147,608 | | | 185,083 | |
| | Accounts receivable from affiliates | | | 17,199 | | | 16,960 | |
| | Inventories | | | 157,563 | | | 174,681 | |
| | Prepaid expenses and other | | | 17,387 | | | 18,154 | |
| | Current assets from discontinued operations | | | 17,949 | | | — | |
| | Total current assets | | | 535,974 | | | 710,143 | |
| Investment in unconsolidated affiliates | | | 46,828 | | | 53,834 | |
| Property and equipment – at cost: | | | | | | | |
| | Land and buildings | | | 51,785 | | | 57,820 | |
| | Aircraft and equipment | | | 1,139,781 | | | 1,399,044 | |
| | | | | | 1,191,566 | | | 1,456,864 | |
| | Less – Accumulated depreciation and amortization | | | (300,045 | ) | | (306,673 | ) |
| | | | | | 891,521 | | | 1,150,191 | |
| Goodwill | | | 6,630 | | | 15,633 | |
| Other assets | | | 10,725 | | | 30,590 | |
| Long-term assets from discontinued operations | | | 14,125 | | | — | |
| | | $ | 1,505,803 | | $ | 1,960,391 | |
| | | | | | | | |
| LIABILITIES AND STOCKHOLDERS’ INVESTMENT |
| Current liabilities: | | | | | | | |
| | Accounts payable | | $ | 40,459 | | $ | 37,997 | |
| | Accrued wages, benefits and related taxes | | | 36,390 | | | 37,021 | |
| | Income taxes payable | | | 3,412 | | | 8,777 | |
| | Other accrued taxes | | | 9,042 | | | 2,991 | |
| | Deferred revenues | | | 16,283 | | | 19,876 | |
| | Accrued maintenance and repairs | | | 12,309 | | | 15,932 | |
| | Accrued interest | | | 4,511 | | | 8,780 | |
| | Other accrued liabilities | | | 17,151 | | | 20,702 | |
| | Deferred taxes | | | 18,097 | | | 11,352 | |
| | Short-term borrowings and current maturities of long-term debt | | | 4,852 | | | 7,351 | |
| | Current liabilities from discontinued operations | | | 5,462 | | | — | |
| | Total current liabilities | | | 167,968 | | | 170,779 | |
| Long-term debt, less current maturities | | | 254,230 | | | 600,469 | |
| Accrued pension liabilities | | | 113,069 | | | 107,005 | |
| Other liabilities and deferred credits | | | 17,345 | | | 15,024 | |
| Deferred taxes | | | 76,054 | | | 102,681 | |
| Long-term liabilities from discontinued operations | | | 35 | | | — | |
| Minority interest | | | 5,445 | | | 5,099 | |
| Commitments and contingencies | | | | | | | |
| Stockholders’ investment: | | | | | | | |
| | 5.50% mandatory convertible preferred stock | | | 222,554 | | | 222,554 | |
| | Common stock | | | 236 | | | 239 | |
| | Additional paid-in capital | | | 169,353 | | | 183,517 | |
| | Retained earnings | | | 515,589 | | | 582,872 | |
| | Accumulated other comprehensive loss | | | (36,075 | ) | | (29,848 | ) |
| | | | 871,657 | | | 959,334 | |
| | | $ | 1,505,803 | | $ | 1,960,391 | |
BRISTOW GROUP INC. AND SUBSIDIARIES
CORPORATE ITEMS AFFECTING THE COMPARABILITY OF RESULTS
(In thousands, except per share amounts)
(Unaudited)
| | Three Months Ended December 31, | |
| | 2006 | | 2007 | |
| | Pre-tax Earnings | | Net Income | | Diluted Earnings Per Share | | Pre-tax Earnings | | Net Income | | Diluted Earnings Per Share | |
| Continuing operations: | | | | | | | | | | | | | | | | | | |
| Investigations: | | | | | | | | | | | | | | | | | | |
SEC (1) | $ | (3,000 | ) | $ | (2,067 | ) | $ | (0.09 | ) | $ | — | | $ | — | | $ | — | |
DOJ (2) | | (670 | ) | | (462 | ) | | (0.02 | ) | | (296 | ) | | (192 | ) | | (0.01 | ) |
Tax contingency related items (3) | | — | | | 800 | | | 0.03 | | | — | | | 600 | | | 0.02 | |
| Acquisitions and divestitures: | | | | | | | | | | | | | | | | | | |
Expense of previously deferred acquisition costs (4) | | (1,889 | ) | | (1,302 | ) | | (0.06 | ) | | — | | | — | | | — | |
Turbo asset sale (5) | | (120 | ) | | (2,419 | ) | | (0.10 | ) | | — | | | — | | | — | |
7 ½% Senior Notes due 2017 (6) | | — | | | — | | | — | | | (3,024 | ) | | (1,966 | ) | | (0.06 | ) |
Foreign currency transaction gains(losses) (7) | | (3,413 | ) | | (2,352 | ) | | (0.10 | ) | | 963 | | | 626 | | | 0.02 | |
Preferred Stock (8) | | 2,334 | | | 1,608 | | | (0.07 | ) | | — | | | — | | | (0.15 | ) |
| Total — continuing operations | | (6,758 | ) | | (6,194 | ) | | (0.41 | ) | | (2,357 | ) | | (932 | ) | | (0.18 | ) |
Discontinued operations (9) | | — | | | — | | | — | | | (1,555 | ) | | (6,168 | ) | | (0.20 | ) |
| Total | $ | (6,758 | ) | $ | (6,194 | ) | $ | (0.41 | ) | $ | (3,912 | ) | $ | (7,100 | ) | $ | (0.38 | ) |
| | Nine Months Ended December 31, | |
| | 2006 | | 2007 | |
| | Pre-tax Earnings | | Net Income | | Diluted Earnings Per Share | | Pre-tax Earnings | | Net Income | | Diluted Earnings Per Share | |
| Continuing operations: | | | | | | | | | | | | | | | | | | |
| Investigations: | | | | | | | | | | | | | | | | | | |
SEC (1) | $ | (3,105 | ) | $ | (2,096 | ) | $ | (0.08 | ) | $ | 1,000 | | $ | 650 | | $ | 0.02 | |
DOJ (2) | | (1,542 | ) | | (1,041 | ) | | (0.04 | ) | | (784 | ) | | (510 | ) | | (0.02 | ) |
Tax contingency related items (3) | | (2,800 | ) | | 410 | | | 0.02 | | | 5,396 | | | 4,907 | | | 0.16 | |
| Acquisitions and divestitures: | | | | | | | | | | | | | | | | | | |
Expense of previously deferred acquisition costs (4) | | (1,889 | ) | | (1,275 | ) | | (0.05 | ) | | — | | | — | | | — | |
Turbo asset sale (5) | | (120 | ) | | (2,421 | ) | | (0.09 | ) | | — | | | — | | | — | |
7 ½% Senior Notes due 2017 (6) | | — | | | — | | | — | | | (6,397 | ) | | (4,158 | ) | | (0.14 | ) |
Foreign currency transaction gains(losses) (7) | | (9,555 | ) | | (6,450 | ) | | (0.25 | ) | | 1,707 | | | 1,110 | | | 0.04 | |
Preferred Stock (8) | | 2,605 | | | 1,758 | | | (0.16 | ) | | — | | | — | | | (0.66 | ) |
| Total — continuing operations | | (16,406 | ) | | (11,115 | ) | | (0.65 | ) | | 922 | | | 1,999 | | | (0.60 | ) |
Discontinued operations (9) | | — | | | — | | | — | | | (1,555 | ) | | (6,168 | ) | | (0.20 | ) |
| Total | $ | (16,406 | ) | $ | (11,115 | ) | $ | (0.65 | ) | $ | (633 | ) | $ | (4,169 | ) | $ | (0.80 | ) |
______
| (1) | Represents a reversal of previously accrued costs incurred in conjunction with the SEC investigation regarding findings from the internal review initiated by the Audit Committee of our board of directors in fiscal year 2005 of certain payments made by two of our affiliated entities in a foreign country. These costs were included in general & administrative costs in our consolidated statements of income. |
| (2) | Represents legal and other professional fees incurred in connection with a document subpoena received from the Antitrust Division of the Department of Justice (“DOJ”) in June 2005, which related to a grand jury investigation of potential antitrust violations among providers of helicopter transportation services in the U.S. Gulf of Mexico focusing on activities during the period from January 1, 2000 to June 13, 2005. These costs are included in general & administrative costs in our consolidated statements of income. |
| (3) | Represents $5.4 million in reversal of accrual for sales tax contingency during the nine months ended December 31, 2007 in Nigeria ($2.8 million of which was originally accrued during the nine months ended December 31, 2006) included in direct costs in our consolidated statements of income and a direct reduction in our provision for income taxes in our consolidated statements of income for income tax contingency items, which represents the remainder of the impact on net income and diluted earnings per share. |
| (4) | Represents expense recorded in December 2006 for acquisition costs previously deferred in connection with an acquisition we were evaluating as we determined that the acquisition was no longer probable. This expense is included within other income (expense), net in our consolidated statements of income. |
| (5) | On November 30, 2006, we completed a sale of the assets of our aircraft engine overhaul business, Turbo, to Timken Alcor Aerospace Technologies, Inc. for approximately $14.6 million, including estimated post-closing adjustments. The sale was effective November 30, 2006 and resulted in a pre-tax gain of $0.1 million, which is included in gain on disposition of assets in our consolidated statements of income for the three and nine months ended December 31, 2006. However, the transaction resulted in additional tax expense of $2.5 million related to non-deductible goodwill recorded at the time we acquired Turbo in 2001. |
| (6) | Represents the effect on interest expense, net of interest income from invested proceeds, resulting from the issuance of 7 ½% Senior Notes due 2017 in June and November 2007. |
| (7) | Represents foreign currency transaction gains and losses resulting from changes in exchange rates during the applicable periods. The effects of these foreign currency transaction gains and losses were offset to a large extent by corresponding charges or benefits in the cumulative translation adjustment in stockholders’ investment with no overall economic effect. These amounts are included in other income (expense), net in our consolidated statements of income. |
| (8) | Represents the effect of the preferred stock offering completed in September and October 2006. The net income effect results from interest income earned on remaining cash proceeds generated from the offering. Diluted earnings per share for the three and nine months ended December 31, 2007 and 2006 was reduced by the effect of the inclusion of weighted average shares resulting from the assumed conversion of the preferred stock at the conversion rate that results in the most dilution, partially offset by the impact of higher interest income. |
| (9) | Represents the loss recorded, net of transaction costs and the tax impact of non-deductible goodwill, related to the Grasso disposition on November 2, 2007. |
BRISTOW GROUP INC. AND SUBSIDIARIES
SELECTED OPERATING DATA
(In thousands, except flight hours and percentages)
| | | Three Months Ended | | | Nine Months Ended | |
| | | December 31, | | | December 31, | |
| | | 2006 | | | 2007 | | | 2006 | | | 2007 | |
| Flight hours (excludes Bristow Academy and unconsolidated affiliates): | | | | | | | | | | | | | | | | |
| North America | | | 34,742 | | | | 34,658 | | | | 118,499 | | | | 114,552 | |
| South and Central America | | | 9,973 | | | | 10,417 | | | | 28,889 | | | | 32,594 | |
| Europe | | | 10,917 | | | | 11,625 | | | | 31,772 | | | | 33,940 | |
| West Africa | | | 9,733 | | | | 9,824 | | | | 27,795 | | | | 28,609 | |
| Southeast Asia | | | 3,059 | | | | 4,590 | | | | 9,328 | | | | 11,578 | |
| Other International | | | 2,641 | | | | 2,120 | | | | 7,119 | | | | 6,844 | |
| Consolidated total | | | 71,065 | | | | 73,234 | | | | 223,402 | | | | 228,117 | |
| Gross revenue: | | | | | | | | | | | | | | | | |
| North America | | $ | 57,795 | | | $ | 57,267 | | | $ | 183,667 | | | $ | 180,265 | |
| South and Central America | | | 13,173 | | | | 16,476 | | | | 39,322 | | | | 49,463 | |
| Europe | | | 73,879 | | | | 95,100 | | | | 218,566 | | | | 271,996 | |
| West Africa | | | 35,062 | | | | 46,287 | | | | 98,008 | | | | 125,369 | |
| Southeast Asia | | | 18,181 | | | | 29,918 | | | | 52,847 | | | | 76,268 | |
| Other International | | | 11,462 | | | | 11,874 | | | | 32,601 | | | | 35,375 | |
| EH Centralized Operations | | | 3,816 | | | | 5,239 | | | | 10,428 | | | | 17,375 | |
| Bristow Academy | | | — | | | | 3,969 | | | | — | | | | 10,216 | |
| Intrasegment eliminations | | | (2,359 | ) | | | (4,647 | ) | | | (8,495 | ) | | | (13,887 | ) |
| Corporate | | | — | | | | 37 | | | | (26 | ) | | | 39 | |
| Consolidated total | | $ | 211,009 | | | $ | 261,520 | | | $ | 626,918 | | | $ | 752,479 | |
| Operating income (loss): | | | | | | | | | | | | | | | | |
| North America | | $ | 5,906 | | | $ | 6,875 | | | $ | 22,246 | | | $ | 28,458 | |
| South and Central America | | | 3,747 | | | | 4,132 | | | | 11,341 | | | | 12,390 | |
| Europe | | | 9,554 | | | | 20,695 | | | | 37,177 | | | | 57,165 | |
| West Africa | | | 5,838 | | | | 7,019 | | | | 13,019 | | | | 25,308 | |
| Southeast Asia | | | 3,030 | | | | 6,476 | | | | 8,675 | | | | 15,710 | |
| Other International | | | 1,642 | | | | 712 | | | | 6,929 | | | | 4,758 | |
| EH Centralized Operations | | | (2,265 | ) | | | (6,404 | ) | | | (6,616 | ) | | | (13,930 | ) |
| Bristow Academy �� | | | — | | | | (130 | ) | | | — | | | | (612 | ) |
| Gain on disposal of assets | | | 1,044 | | | | 4,094 | | | | 5,706 | | | | 3,921 | |
| Corporate | | | (8,255 | ) | | | (6,721 | ) | | | (19,125 | ) | | | (17,916 | ) |
| Consolidated total | | $ | 20,241 | | | $ | 36,748 | | | $ | 79,352 | | | $ | 115,252 | |
| Operating margin: | | | | | | | | | | | | |
| North America | | 10.2 | % | | 12.0 | % | | 12.1 | % | | 15.8 | % |
| South and Central America | | 28.4 | % | | 25.1 | % | | 28.8 | % | | 25.1 | % |
| Europe | | 12.9 | % | | 21.8 | % | | 17.0 | % | | 21.0 | % |
| West Africa | | 16.7 | % | | 15.2 | % | | 13.3 | % | | 20.2 | % |
| Southeast Asia | | 16.7 | % | | 21.6 | % | | 16.4 | % | | 20.6 | % |
| Other International | | 14.3 | % | | 6.0 | % | | 21.3 | % | | 13.5 | % |
| EH Centralized Operations | | (59.4 | )% | (122.2 | )% | (63.4 | )% | (80.2 | )% |
| Bristow Academy | | N/A | | | (3.3 | )% | N/A | | | (6.0 | )% |
| Consolidated total | | 9.6 | % | | 14.1 | % | | 12.7 | % | | 15.3 | % |
BRISTOW GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
| | Three Months Ended | |
| | June 30, 2006 | | Sept. 30, 2006 | | Dec. 31, 2006 | | March 31, 2007 | | June 30, 2007 | | Sept. 30, 2007 | | Dec. 31, 2007 | |
| Gross revenue: | | | | | | | | | | | | | | | | | | | | | |
| Operating revenue from non-affiliates | $ | 170,886 | | $ | 179,094 | | $ | 180,343 | | $ | 178,931 | | $ | 199,909 | | $ | 219,858 | | $ | 222,831 | |
| Operating revenue from affiliates | | 12,079 | | | 11,631 | | | 10,701 | | | 13,759 | | | 11,097 | | | 13,858 | | | 13,633 | |
| Reimbursable revenue from non-affiliates | | 22,243 | | | 17,758 | | | 18,793 | | | 21,450 | | | 19,042 | | | 23,594 | | | 23,439 | |
| Reimbursable revenue from affiliates | | 1,072 | | | 1,146 | | | 1,172 | | | 2,537 | | | 1,103 | | | 2,498 | | | 1,617 | |
| | | 206,280 | | | 209,629 | | | 211,009 | | | 216,677 | | | 231,151 | | | 259,808 | | | 261,520 | |
| Operating expense: | | | | | | | | | | | | | | | | | | | | | |
| Direct cost | | 129,479 | | | 138,631 | | | 140,867 | | | 139,387 | | | 153,088 | | | 152,624 | | | 169,704 | |
| Reimbursable expense | | 23,314 | | | 18,802 | | | 20,575 | | | 23,247 | | | 20,145 | | | 24,098 | | | 24,344 | |
| Depreciation and amortization | | 10,236 | | | 10,691 | | | 11,015 | | | 10,517 | | | 11,331 | | | 12,351 | | | 12,445 | |
| General and administrative | | 14,602 | | | 15,705 | | | 19,355 | | | 16,659 | | | 18,385 | | | 20,260 | | | 22,373 | |
| Gain on disposal of assets | | (992 | ) | | (3,670 | ) | | (1,044 | ) | | (4,909 | ) | | (584 | ) | | 757 | | | (4,094 | ) |
| | | 176,639 | | | 180,159 | | | 190,768 | | | 184,901 | | | 202,365 | | | 210,090 | | | 224,772 | |
| Operating income | | 29,641 | | | 29,470 | | | 20,241 | | | 31,776 | | | 28,786 | | | 49,718 | | | 36,748 | |
| Earnings from unconsolidated affiliates, net of losses | | 1,559 | | | 1,728 | | | 2,106 | | | 6,030 | | | 3,390 | | | 4,118 | | | 3,725 | |
| Interest income | | 1,248 | | | 1,012 | | | 3,767 | | | 2,689 | | | 2,124 | | | 3,960 | | | 3,697 | |
| Interest expense | | (3,236 | ) | | (2,871 | ) | | (2,539 | ) | | (2,294 | ) | | (2,928 | ) | | (6,523 | ) | | (6,684 | ) |
| Other income (expense), net | | (4,785 | ) | | (1,308 | ) | | (5,226 | ) | | 2,321 | | | 426 | | | 360 | | | 989 | |
Income from continuing operations before provision for income taxes and minority interest | | 24,427 | | | 28,031 | | | 18,349 | | | 40,522 | | | 31,798 | | | 51,633 | | | 38,475 | |
| Provision for income taxes | | (8,022 | ) | | (9,210 | ) | | (8,158 | ) | | (13,391 | ) | | (9,439 | ) | | (18,294 | ) | | (12,302 | ) |
| Minority interest | | (116 | ) | | (676 | ) | | (257 | ) | | (151 | ) | | (449 | ) | | (4 | ) | | 61 | |
| Income from continuing operations | | 16,289 | | | 18,145 | | | 9,934 | | | 26,980 | | | 21,910 | | | 33,335 | | | 26,234 | |
| Discontinued operations: | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from discontinued operations before provision for income taxes | | 1,461 | | | 1,448 | | | 812 | | | 688 | | | 1,157 | | | 962 | | | (1,429 | ) |
Provision for income taxes on discontinued operations | | (521 | ) | | (518 | ) | | (295 | ) | | (251 | ) | | (395 | ) | | (347 | ) | | (4,657 | ) |
Income (loss) from discontinued operations | | 940 | | | 930 | | | 517 | | | 437 | | | 762 | | | 615 | | | (6,086 | ) |
| Net income | | 17,229 | | | 19,075 | | | 10,451 | | | 27,417 | | | 22,672 | | | 33,950 | | | 20,148 | |
| Preferred stock dividends | | — | | | (321 | ) | | (3,150 | ) | | (3,162 | ) | | (3,162 | ) | | (3,163 | ) | | (3,162 | ) |
Net income available to common stockholders | $ | 17,229 | | $ | 18,754 | | $ | 7,301 | | $ | 24,255 | | $ | 19,510 | | $ | 30,787 | | $ | 16,986 | |
| Basic earnings per common share: | | | | | | | | | | | | | | | | | | | | | |
| Earnings from continuing operations | $ | 0.70 | | $ | 0.76 | | $ | 0.29 | | $ | 1.01 | | $ | 0.80 | | $ | 1.27 | | $ | 0.97 | |
Earnings (loss) from discontinued operations | | 0.04 | | | 0.04 | | | 0.02 | | | 0.02 | | | 0.03 | | | 0.03 | | | (0.26 | ) |
| Net earnings | $ | 0.74 | | $ | 0.80 | | $ | 0.31 | | $ | 1.03 | | $ | 0.83 | | $ | 1.30 | | $ | 0.71 | |
| Diluted earnings per common share: | | | | | | | | | | | | | | | | | | | | | |
| Earnings from continuing operations | $ | 0.69 | | $ | 0.75 | | $ | 0.29 | | $ | 0.89 | | $ | 0.73 | | $ | 1.10 | | $ | 0.86 | |
Earnings (loss) from discontinued operations | | 0.04 | | | 0.04 | | | 0.02 | | | 0.02 | | | 0.02 | | | 0.02 | | | (0.20 | ) |
| Net earnings | $ | 0.73 | | $ | 0.79 | | $ | 0.31 | | $ | 0.91 | | $ | 0.75 | | $ | 1.12 | | $ | 0.66 | |
