![]() | News Release | |
2000 W. Sam Houston Parkway South | ||
Suite 1700 | ||
Houston, TX 77042 | ||
713-267-7600 Tel |
BRISTOW GROUP INC. REPORTS FISCAL 2007 SECOND QUARTER
FINANCIAL RESULTS; EARNINGS UP 30%
FINANCIAL RESULTS; EARNINGS UP 30%
HOUSTON (November 7, 2006)– Bristow Group Inc. (NYSE: BRS) today reported financial results for its fiscal 2007 second quarter and six months ended September 30, 2006.
Highlights included the following:
For the quarter ended September 30, 2006:
§ | Net income of $19.1 million increased 30.3 percent versus net income for the September quarter a year ago; earnings per diluted share of $0.79 rose 27.4 percent for the same three-month period; | ||
§ | Total revenue of $224.2 million increased by 15.3 percent over the second quarter a year ago due to increased revenues in all business units driven by increased flight hours, improved pricing and additional aircraft; | ||
§ | The earnings improvement was driven primarily by increases in revenues, gains on sales of older aircraft, and earnings from affiliates, partially offset by higher maintenance and salary expenses, and an increased effective tax rate; | ||
§ | The effective tax rate of 33 percent for the second fiscal quarter was in line with expectations; | ||
§ | Diluted earnings per share were reduced $0.02 due to the increase in weighted average shares from recently completed preferred stock offering. |
For the six months ended September 30, 2006:
§ | Net income of $36.3 million rose 36.5 percent versus net income for the six months ended September 30, 2005; earnings per diluted share of $1.52 rose 34.5 percent over the same period; | ||
§ | Total revenue in the first half of fiscal year 2007 increased by 18.6 percent to $445.3 million; the revenue increase was driven by increased flight hours, improved pricing and additional aircraft; | ||
§ | In addition to items impacting earnings for the second quarter, six-month results were also affected by foreign currency exchange losses. |
Capital and Liquidity:
§ | The recent issuance of our preferred stock provided $222.7 million in net proceeds; | ||
§ | The September 30, 2006 consolidated balance sheets reflect $794.4 million in stockholders’ investment and $260.5 million of indebtedness or 24.7 percent leverage; | ||
§ | Also at that time, we had $268.3 million in cash and an undrawn $100 million revolving credit facility; | ||
§ | We generated $48.7 million in cash from operations and spent $115.5 million on aircraft during the six months ended September 30, 2006; | ||
§ | Aircraft purchase commitments (including four large aircraft ordered in early October) totaled $403.0 million with options totaling $377.5 million. |
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Reports Fiscal 2007 Second Quarter Financial Results |
William E. Chiles, president and chief executive officer of Bristow Group Inc., said, “The very robust level of offshore oil and gas activity worldwide coupled with our strategic expansion of operations in new and existing markets have put Bristow Group in a position to produce record results in fiscal 2007. Although we are pleased with our financial results to date in fiscal 2007, we expect to realize the earnings power of our investments in new aircraft when a significant portion of the aircraft we are purchasing are placed in service and contributing to our earnings in late fiscal 2008. Our strong financial results and our recently completed preferred stock offering provide us the capital to make additional investments in our growth strategy by ordering more aircraft and/or investing in business acquisitions. If the market demand remains strong, we may access the capital markets for additional funds (likely on a leveraged basis) in calendar year 2007 to fund the remaining portion of our growth plans.”
CONFERENCE CALL
Management will conduct a conference call starting at 10:00 a.m. EST (9:00 a.m. CST) on Wednesday, November 8, 2006, to review financial results for the three and six months ended September 30, 2006. The conference call can be accessed as follows:
Via Webcast:
• | Visit Bristow Group’s investor relations Web page athttp://www.bristowgroup.com | ||
• | Live: Click on the link for “Q2 2007 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 U.S.:
• | Live: Dial toll free (800) 561-2813, passcode: 69789476 | ||
• | Replay: A telephone replay will be available through December 8, 2006, by dialing toll free (888) 286-8010, passcode: 21529507 |
Via Telephone outside the U.S.:
• | Live: Dial (617) 614-3529, passcode: 69789476 | ||
• | Replay: A telephone replay will be available through December 8, 2006, by dialing (617) 801-6888, passcode: 21529507 |
ABOUT BRISTOW GROUP INC.
Bristow Group Inc. is a leading provider of helicopter services to the worldwide 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, China, Mexico, Nigeria, Russia and Trinidad. Additionally, the Company is a leading provider of production management services for oil and gas production facilities in the U.S. Gulf of Mexico. The Company’s Common Stock trades on the New York Stock Exchange under the symbol BRS.
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Bristow Group Inc. | Page3 | |
Reports Fiscal 2007 Second Quarter Financial Results |
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 future results, the addition of new aircraft to our fleet, future investments and future financing transactions. 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 three and six months ended September 30, 2006 and the annual report on Form 10-K for the year ended March 31, 2006. 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.
Investor Relations Contact:
Joe Baj – Bristow Group Inc.
(713) 267-7605
Joe Baj – Bristow Group Inc.
(713) 267-7605
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Bristow Group Inc. | Page4 | |
Reports Fiscal 2007 Second Quarter Financial Results |
BRISTOW GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Gross revenue: | ||||||||||||||||
Operating revenue from non-affiliates | $ | 191,341 | $ | 163,920 | $ | 373,127 | $ | 314,668 | ||||||||
Operating revenue from affiliates | 11,631 | 12,791 | 23,710 | 24,277 | ||||||||||||
Reimbursable revenue from non-affiliates | 20,091 | 16,912 | 46,216 | 34,340 | ||||||||||||
Reimbursable revenue from affiliates | 1,146 | 782 | 2,218 | 2,057 | ||||||||||||
224,209 | 194,405 | 445,271 | 375,342 | |||||||||||||
Operating expenses: | ||||||||||||||||
Direct costs | 148,872 | 126,510 | 287,341 | 249,062 | ||||||||||||
Reimbursable expense | 20,879 | 17,402 | 47,778 | 36,064 | ||||||||||||
Depreciation and amortization | 10,737 | 11,200 | 21,020 | 21,507 | ||||||||||||
General and administrative | 16,527 | 15,704 | 31,876 | 30,667 | ||||||||||||
Loss (gain) on disposal of assets | (3,667 | ) | 1,494 | (4,665 | ) | 902 | ||||||||||
193,348 | 172,310 | 383,350 | 338,202 | |||||||||||||
Operating income | 30,861 | 22,095 | 61,921 | 37,140 | ||||||||||||
Earnings from unconsolidated affiliates, net of losses | 1,728 | 373 | 3,287 | 419 | ||||||||||||
Interest income | 1,069 | 949 | 2,359 | 1,981 | ||||||||||||
Interest expense | (2,871 | ) | (3,677 | ) | (6,107 | ) | (7,385 | ) | ||||||||
Other income (expense), net | (1,308 | ) | (769 | ) | (6,093 | ) | 2,013 | |||||||||
Income before provision for income taxes and minority interest | 29,479 | 18,971 | 55,367 | 34,168 | ||||||||||||
Provision for income taxes | (9,728 | ) | (4,293 | ) | (18,271 | ) | (7,469 | ) | ||||||||
Minority interest | (676 | ) | (44 | ) | (792 | ) | (94 | ) | ||||||||
Net income | 19,075 | 14,634 | 36,304 | 26,605 | ||||||||||||
Preferred stock dividends | (321 | ) | — | (321 | ) | — | ||||||||||
Net income available to common stockholders | $ | 18,754 | $ | 14,634 | $ | 35,983 | $ | 26,605 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.80 | $ | 0.63 | $ | 1.54 | $ | 1.14 | ||||||||
Diluted | $ | 0.79 | $ | 0.62 | $ | 1.52 | $ | 1.13 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 23,453 | 23,342 | 23,423 | 23,331 | ||||||||||||
Diluted | 24,248 | 23,618 | 23,882 | 23,603 | ||||||||||||
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Bristow Group Inc. | Page5 | |
Reports Fiscal 2007 Second Quarter Financial Results |
BRISTOW GROUP INC. AND SUBSIDIARIES
SELECTED OPERATING DATA
(In thousands, except flight hours and percentages)
(Unaudited)
SELECTED OPERATING DATA
(In thousands, except flight hours and percentages)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Flight hours (excludes unconsolidated affiliates): | ||||||||||||||||
Helicopter Services: | ||||||||||||||||
North America | 41,011 | 39,656 | 83,620 | 77,385 | ||||||||||||
South and Central America | 9,631 | 10,113 | 18,916 | 19,629 | ||||||||||||
Europe | 10,685 | 10,263 | 20,855 | 19,994 | ||||||||||||
West Africa | 9,179 | 8,625 | 18,062 | 16,969 | ||||||||||||
Southeast Asia | 3,063 | 3,005 | 6,269 | 5,727 | ||||||||||||
Other International | 2,426 | 1,689 | 4,478 | 3,292 | ||||||||||||
Consolidated total | 75,995 | 73,351 | 152,200 | 142,996 | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
Gross revenue: | ||||||||||||||||
Helicopter Services: | ||||||||||||||||
North America | $ | 66,304 | $ | 61,254 | $ | 133,105 | $ | 113,706 | ||||||||
South and Central America | 13,406 | 10,347 | 26,642 | 20,384 | ||||||||||||
Europe | 72,128 | 62,724 | 143,512 | 121,905 | ||||||||||||
West Africa | 31,210 | 26,539 | 62,946 | 52,449 | ||||||||||||
Southeast Asia | 17,626 | 14,688 | 34,665 | 28,496 | ||||||||||||
Other International | 12,183 | 8,081 | 21,135 | 15,669 | ||||||||||||
EH Centralized Operations | 14,727 | 12,522 | 29,132 | 24,922 | ||||||||||||
Intrasegment eliminations | (17,955 | ) | (16,712 | ) | (35,202 | ) | (32,136 | ) | ||||||||
Total Helicopter Services | 209,629 | 179,443 | 415,935 | 345,395 | ||||||||||||
Production Management Services | 17,784 | 16,942 | 35,468 | 33,911 | ||||||||||||
Corporate | — | 16 | (25 | ) | 32 | |||||||||||
Intersegment eliminations | (3,204 | ) | (1,996 | ) | (6,107 | ) | (3,996 | ) | ||||||||
Consolidated total | $ | 224,209 | $ | 194,405 | $ | 445,271 | $ | 375,342 | ||||||||
Operating income: | ||||||||||||||||
Helicopter Services: | ||||||||||||||||
North America | $ | 9,173 | $ | 14,592 | $ | 20,258 | $ | 24,374 | ||||||||
South and Central America | 3,289 | 202 | 6,914 | 615 | ||||||||||||
Europe | 8,436 | 10,004 | 17,460 | 16,924 | ||||||||||||
West Africa | 820 | 2,033 | 3,227 | 4,105 | ||||||||||||
Southeast Asia | 2,008 | 377 | 3,096 | 1,085 | ||||||||||||
Other International | 3,328 | 956 | 4,434 | 2,184 | ||||||||||||
EH Centralized Operations | 4,449 | 589 | 9,928 | (702 | ) | |||||||||||
Total Helicopter Services | 31,503 | 28,753 | 65,317 | 48,585 | ||||||||||||
Production Management Services | 1,394 | 1,238 | 2,808 | 2,559 | ||||||||||||
Gain (loss) on disposal of assets | 3,667 | (1,494 | ) | 4,665 | (902 | ) | ||||||||||
Corporate | (5,703 | ) | (6,402 | ) | (10,869 | ) | (13,102 | ) | ||||||||
Consolidated total | $ | 30,861 | $ | 22,095 | $ | 61,921 | $ | 37,140 | ||||||||
Operating margin: | ||||||||||||||||
Helicopter Services: | ||||||||||||||||
North America | 13.8 | % | 23.8 | % | 15.2 | % | 21.4 | % | ||||||||
South and Central America | 24.5 | % | 2.0 | % | 26.0 | % | 3.0 | % | ||||||||
Europe | 11.7 | % | 15.9 | % | 12.2 | % | 13.9 | % | ||||||||
West Africa | 2.6 | % | 7.7 | % | 5.1 | % | 7.8 | % | ||||||||
Southeast Asia | 11.4 | % | 2.6 | % | 8.9 | % | 3.8 | % | ||||||||
Other International | 27.3 | % | 11.8 | % | 21.0 | % | 13.9 | % | ||||||||
EH Centralized Operations | 30.2 | % | 4.7 | % | 34.1 | % | -2.8 | % | ||||||||
Total Helicopter Services | 15.0 | % | 16.0 | % | 15.7 | % | 14.1 | % | ||||||||
Production Management Services | 7.8 | % | 7.3 | % | 7.9 | % | 7.5 | % | ||||||||
Consolidated total | 13.8 | % | 11.4 | % | 13.9 | % | 9.9 | % |
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Reports Fiscal 2007 Second Quarter Financial Results |
BRISTOW GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, | March 31, | |||||||
2006 | 2006 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 268,275 | $ | 122,482 | ||||
Accounts receivable from non-affiliates, net of allowance for doubtful accounts of $3.5 million and $4.6 million, respectively | 158,540 | 144,521 | ||||||
Accounts receivable from affiliates, net of allowance for doubtful accounts of $4.4 million and $4.6 million, respectively | 14,594 | 15,884 | ||||||
Inventories | 157,966 | 147,860 | ||||||
Prepaid expenses and other | 16,431 | 16,519 | ||||||
Total current assets | 615,806 | 447,266 | ||||||
Investments in unconsolidated affiliates | 42,101 | 39,912 | ||||||
Property and equipment — at cost: | ||||||||
Land and buildings | 47,254 | 40,672 | ||||||
Aircraft and equipment | 971,548 | 838,314 | ||||||
1,018,802 | 878,986 | |||||||
Less: accumulated depreciation and amortization | (287,978 | ) | (263,072 | ) | ||||
730,824 | 615,914 | |||||||
Goodwill | 26,807 | 26,837 | ||||||
Prepaid pension costs | 42,125 | 37,207 | ||||||
Other assets | 11,479 | 9,277 | ||||||
$ | 1,469,142 | $ | 1,176,413 | |||||
LIABILITIES AND STOCKHOLDERS’ INVESTMENT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 59,930 | $ | 41,227 | ||||
Accrued wages, benefits and related taxes | 38,645 | 45,958 | ||||||
Income taxes payable | 6,791 | 6,537 | ||||||
Other accrued taxes | 9,481 | 6,471 | ||||||
Deferred revenues | 12,468 | 9,994 | ||||||
Other accrued liabilities | 34,645 | 31,083 | ||||||
Deferred taxes | 10,030 | 5,025 | ||||||
Short-term borrowings and current maturities of long-term debt | 22,479 | 17,634 | ||||||
Total current liabilities | 194,469 | 163,929 | ||||||
Long-term debt, less current maturities | 238,064 | 247,662 | ||||||
Accrued pension liabilities | 146,937 | 136,521 | ||||||
Other liabilities and deferred credits | 17,620 | 18,016 | ||||||
Deferred taxes | 72,635 | 68,281 | ||||||
Minority interest | 4,980 | 4,307 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ investment: | ||||||||
5.50% mandatory convertible preferred stock, $.01 par value, authorized 4,600,000 shares; outstanding: 4,000,000 shares; entitled on liquidation to $200 million; net of offering costs of $6.4 million | 193,590 | — | ||||||
Common Stock, $0.01 par value, authorized 35,000,000 shares; outstanding: 23,491,378 shares as of September 30 and 23,385,473 shares as of March 31 (exclusive of 1,281,050 treasury shares) | 235 | 234 | ||||||
Additional paid-in capital | 164,286 | 158,762 | ||||||
Retained earnings | 483,828 | 447,524 | ||||||
Accumulated other comprehensive loss | (47,502 | ) | (68,823 | ) | ||||
794,437 | 537,697 | |||||||
$ | 1,469,142 | $ | 1,176,413 | |||||
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