2014

Bristow Group Reports Financial Results For Its 2012 Fiscal Fourth Quarter And Year Ended March 31, 2012 - RECORD QUARTERLY AND FISCAL YEAR OPERATING REVENUE OF $319 MILLION AND $1.2 BILLION, AND RECORD FISCAL YEAR OPERATING CASH FLOW OF $231 MILLION

- FOURTH QUARTER AND FISCAL YEAR GAAP NET INCOME OF $14.2 MILLION ($0.39 PER DILUTED SHARE) AND $63.5 MILLION ($1.73 PER DILUTED SHARE)

- FOURTH QUARTER ADJUSTED NET INCOME AT RECORD LEVEL OF $44.6 MILLION ($1.22 PER DILUTED SHARE) AND FISCAL YEAR ADJUSTED NET INCOME OF $114.6 MILLION ($3.12 PER DILUTED SHARE), WHICH EXCLUDES THE IMPACT OF ASSET DISPOSITIONS AND SPECIAL ITEMS

- COMPANY INCREASES QUARTERLY DIVIDEND 33% TO $0.20 PER SHARE

- COMPANY SETS GUIDANCE RANGE FOR FULL FISCAL YEAR 2013 ADJUSTED EPS AT $3.25 - $3.55

HOUSTON, May 23, 2012 /PRNewswire/ -- Bristow Group Inc. (NYSE: BRS) today reported net income for the March 2012 quarter of $14.2 million, or $0.39 per diluted share, compared to net income of $30.9 million, or $0.84 per diluted share, in the same period a year ago.  Adjusted net income, which excludes special items and asset disposition effects, was $44.6 million, or $1.22 per diluted share, for the March 2012 quarter, an increase of $12.8 million, or $0.36 per diluted share, over the March 2011 quarter. 

Operating revenue for the March 2012 quarter increased 16% to $318.7 million from $273.7 million in the March 2011 quarter, with revenue growth across most of our business units led by Europe and West Africa. 

Adjusted earnings before interest, taxes, depreciation, amortization and rent ("Adjusted EBITDAR"), which excludes special items and asset disposition effects, was $99.5 million for the March 2012 quarter compared to $81.1 million in the same period a year ago.  Net cash provided by operating activities totaled $37.4 million for the March 2012 quarter compared to $36.0 million in the March 2011 quarter, and increased 53% to $231.3 million for the fiscal year ended March 31, 2012 from $151.4 million in the prior fiscal year.

The March 2012 quarter's GAAP net income performance was negatively affected by the following:

  • An impact of $30.7 million related to aircraft sales activities, including a loss on disposal of assets of $28.6 million (which includes non-cash impairment charges of $23.6 million associated with held for sale aircraft) and $2.1 million in direct costs associated with a sale transaction executed during the quarter involving 11 large aircraft,
  • Non-cash impairment charges related to inventory of $1.3 million and two medium aircraft of $2.7 million resulting from a review of our operational fleet,
  • A $5.1 million decrease in earnings from unconsolidated affiliates, primarily resulting from lower earnings from our investment in Brazil,
  • A $31.0 million increase in direct costs and general and administrative expenses over the same period a year ago, primarily associated with increased activity, increased rent expense associated with a shift toward the leasing of more aircraft in the latter half of the fiscal year and higher corporate compensation, and
  • A $0.8 million increase in tax expense as a result of an internal restructuring, partially offset by a reduction in tax expense from the release of a tax reserve in a foreign jurisdiction.

Excluding the gains and losses on disposals of assets and special items in the March 2012 and March 2011 quarters, adjusted EBITDAR, adjusted net income and adjusted EPS improved over the March 2011 quarter primarily due to significant revenue growth across a majority of our global operations and a lower effective tax rate.  See a break out of the special items impacting results for the March 2012 and March 2011 quarters at the end of this release.

"During fiscal year 2012, we continued to make progress in increasing our total return to shareholders," said William E. Chiles, President and Chief Executive Officer of Bristow Group.  "Our results for the March quarter exceeded our internal expectations as a result of better utilization of our fleet, cost containment, and more demand for our premium product.  The strong adjusted EPS and EBITDAR performance was driven by Bristow's Client Promise – to provide unmatched safety, reliability and hassle-free service – and resulted in stronger revenue generation in Nigeria and noteworthy sequential improvement in margins in Australia and Europe."

"Going forward, we are expecting solid revenue growth in fiscal year 2013 while maintaining adjusted EBITDAR margins at the level attained in fiscal year 2012," Mr. Chiles added.  "Bristow's record revenue and operating cash flows during this last fiscal year demonstrate our financial strength and commitment to smarter growth and a balanced return for our shareholders. This is why our Board of Directors is increasing our quarterly dividend 33% to $0.20 per share effective this quarter, reinforcing our confidence in the unique business model and investment vehicle that our company and talented employees represent."

FOURTH QUARTER FY2012 RESULTS

  • Operating revenue increased 16% to $318.7 million compared to $273.7 million in the same period a year ago.
  • Operating income decreased by 47% to $26.2 million in the March 2012 quarter compared to $49.8 million in the March 2011 quarter, significantly impacted by non-cash impairment charges of $27.6 million.
  • Net income decreased by 54% to $14.2 million, or $0.39 per diluted share, compared to $30.9 million, or $0.84 per diluted share, in the March 2011 quarter.  Adjusted net income increased 41% to $44.6 million, or $1.22 per diluted share, compared to $31.7 million, or $0.86 per diluted share, in the March 2011 quarter. 
  • Adjusted EBITDAR, which excludes special items and asset disposition effects, increased 23% to $99.5 million for the March 2012 quarter compared to $81.1 million in the same period a year ago.
  • Cash as of March 31, 2012 totaled $262 million, up 125% from $116 million as of March 31, 2011.  Our total liquidity, including cash on hand and unused amounts on our revolving credit facility, was $402 million as of March 31, 2012, up 54% from $261 million as of March 31, 2011. 

Our Europe Business Unit experienced an increase in flying activity in the Northern North Sea in the U.K. and in Norway, which led to a 20% increase in operating revenue and improved adjusted EBITDAR margin to 36.1% from 34.4% in the prior year quarter.   

Our West Africa Business Unit saw increased flying activity over the prior year quarter from new and existing contracts plus ad hoc flying, which led to a 30% increase in operating revenue and improved adjusted EBITDAR margin to 36.6% from 34.3% in the prior year quarter. 

Our North America Business Unit continues to benefit from an increase in activity in the U.S. Gulf of Mexico as more drilling and completion permits are being issued and new large aircraft are operating in this market.  Operating revenue increased 7% resulting from the addition of new large aircraft during fiscal year 2012 despite a decrease in flight hours from the March 2011 quarter.  This revenue increase, coupled with a reduction in cost structure and the leasing of new aircraft, led to a more than doubling of adjusted EBITDAR margin to 19.4% from 8.5% in the prior year quarter.

Our Australia Business Unit saw an increase in revenue over the prior year quarter resulting from new contract work offsetting the loss of a major contract in May 2011.  We saw a turnaround in this market in the second half of fiscal year 2012.  The March 2012 quarter saw a sequential improvement with operating revenue of $43.4 million and adjusted EBITDAR margin of 35.6%, compared to $33.5 million and 23.5%, respectively, for the December 2011 quarter.  The second half of fiscal year 2012 saw operating revenue of $76.9 million, 8% higher than the first half of the year, and adjusted EBITDAR margin of 30.4% compared to 17.8% in the first half.

We continue to see substantial growth opportunity in our Other International Business Unit as new aircraft commence work in a number of locations.  However, our quarterly results were impacted negatively by earnings from Lider in Brazil due to a decline in aircraft utilization as certain aircraft were offline for maintenance, start up costs incurred in advance of revenue generation from new aircraft and changes in foreign currency exchange rates.  We expect Lider's results to improve over the remainder of calendar 2012, with the second half of the year being stronger than the first half as aircraft return to operations and new aircraft begin operating.  As a result of lower earnings from Lider in the March 2012 quarter, our adjusted EBITDAR margin for Other International decreased to 42.9% from 59.4% in the March 2011 quarter.

FISCAL YEAR 2012 RESULTS

  • Operating revenue increased 8% to just under $1.2 billion compared to just over $1.1 billion a year ago.
  • Operating income decreased 39% to $115.8 million compared to $189.7 million in fiscal year 2011, significantly impacted by non-cash impairment charges of $57.6 million.
  • Net income decreased 52% to $63.5 million, or $1.73 per diluted share, compared to $132.3 million, or $3.60 per diluted share, for fiscal year 2011.  Adjusted net income increased slightly to $114.6 million, or $3.12 per diluted share, compared to $113.0 million, or $3.08 per diluted share, for fiscal year 2011.
  • Adjusted EBITDAR, which excludes special items and asset disposition effects, was $319.5 million compared to $297.7 million for fiscal year 2011.

FLEET MANAGEMENT AND LEASING STRATEGY

In fiscal year 2012, we fully implemented our new Bristow Value Added ("BVA") financial management framework — which replaced Return on Capital Employed ("ROCE") — to enhance our focus on the returns we deliver above our capital costs.  The BVA framework has yielded excellent results leading to a number of value-enhancing transactions.

In March 2012, we completed the sale of eleven large AS332L aircraft with cash proceeds of $28.9 million received in March relating to the first nine of these aircraft sold.  The final two aircraft will be sold in fiscal year 2013.  While resulting in a GAAP loss, this transaction allowed for the removal of older aircraft from our fleet that generated negative BVA and the reinvestment into newer, larger aircraft to generate positive BVA.

Also as a part of our BVA implementation, management commenced a new financing strategy in the December 2011 quarter whereby we will be using operating leases to a greater extent than in the past.  As part of this strategy, during the period from December 2011 through March 2012 we received $171.2 million for the sale of nine existing and in-construction aircraft that we subsequently leased back.

"We continue to see success in implementing BVA, with a 53% increase in operating cash flow combined with low-cost, capital-efficient operating leases in fiscal year 2012," said Jonathan E. Baliff, Senior Vice President and Chief Financial Officer of Bristow Group.  "We expect to enter into more operating leases in future periods, with an initial aim for these leases to account for 20% to 30% of our Large Aircraft Equivalent ("LACE") aircraft."

DIVIDEND

In May 2011, our Board of Directors initiated a dividend of $0.15 per share of our common stock and then subsequently declared dividends at the same level for the remaining three quarters of fiscal year 2012.  On May 18, 2012, our Board of Directors declared a dividend of $0.20 per share, a 33% increase from the previous level, reflecting management's confidence in our cash generation ability and commitment to return value to our shareholders while we continue to grow globally. 

This dividend will be paid on June 15, 2012 to shareholders of record on June 5, 2012.  Based on shares outstanding at March 31, 2012, total dividend payments to be made during the three months ended June 30, 2012 will be approximately $7.2 million.

GUIDANCE

Bristow is issuing diluted earnings per share guidance for the full fiscal year 2013 that began on April 1, 2012 of $3.25 to $3.55, reflecting our expectation for continued growth, operational and capital efficiency, and the benefit of the Bristow Client Promise initiative across our business units.

As a reminder, our GAAP earnings per share guidance does not include gains and losses on disposals of assets as well as special items because their timing and amounts are more variable and less predictable.  This guidance is based on current foreign currency exchange rates.  In providing this guidance, the Company has not included the impact of any changes in accounting standards and any impact from significant acquisitions or divestitures.  Changes in events or other circumstances that the Company does not currently anticipate or predict could result in earnings per share for fiscal year 2013 that are significantly above or below this guidance.  Factors that could cause such changes are described below under Forward-Looking Statements Disclosure.

"Our dedication to the Bristow Client Promise: to provide unmatched safety, reliability and hassle-free service, has the company positioned for continued success in fiscal year 2013." Mr. Baliff added, "Fiscal year 2013 EPS growth, when combined with our financial strength and commitment to a balanced return for investors, can deliver that success to our shareholders."

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Thursday, May 24, 2012 to review financial results for the fiscal year 2012 fourth quarter ended March 31, 2012.  This release and the most recent investor slide presentation are available in the investor relations area of our web page at www.bristowgroup.com.  The conference call can be accessed as follows:

Via Webcast:

  • Visit Bristow Group's investor relations Web page at www.bristowgroup.com
  • Live: Click on the link for "Bristow Group Fiscal 2012 Fourth 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 1-877-941-8609
  • Replay: A telephone replay will be available through June 7, 2012 and may be accessed by calling toll free 1-800-406-7325, passcode: 4533630#

Via Telephone outside the U.S.:

  • Live: Dial 1-480-629-9692
  • Replay: A telephone replay will be available through June 7, 2012 and may be accessed by calling 1-303-590-3030, passcode: 4533630#

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 and one of two helicopter service providers to the offshore energy industry with global operations.  The Company has major transportation operations in the North Sea, Nigeria and the U.S. Gulf of Mexico, and in most of the other major offshore oil and gas producing regions of the world, including Alaska, Australia, Brazil, 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 earnings guidance, capital allocation strategy, revenue growth, margins, the impact of activity levels, business performance, and other market and industry conditions.  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 Form 10-K for the fiscal year ended March 31, 2012.  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.

Linda McNeill
Investor Relations
(713) 267-7622

(financial tables follow)

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)










Three Months Ended


Fiscal Year Ended






March 31,


March 31,




2012


2011


2012


2011


Gross revenue:















Operating revenue from non-affiliates


$

313,642


$

263,118


$

1,170,299


$

1,051,829



Operating revenue from affiliates



5,067



10,625



28,928



63,067



Reimbursable revenue from non-affiliates 



39,557



36,452



142,088



117,366



Reimbursable revenue from affiliates 



105



(53)



488



546







358,371



310,142



1,341,803



1,232,808


Operating expense:















Direct cost



210,188



188,842



810,728



748,053



Reimbursable expense



37,760



34,542



136,922



114,288



Impairment of inventories



1,309





25,919





Depreciation and amortization



25,296



27,740



96,144



89,377



General and administrative



34,617



25,013



135,333



120,145







309,170



276,137



1,205,046



1,071,863
















Gain (loss) on disposal of assets



(28,610)



5,096



(31,670)



8,678


Earnings from unconsolidated affiliates, net of losses



5,622



10,746



10,679



20,101



Operating income



26,213



49,847



115,766



189,724


















Interest income



107



215



560



1,092


Interest expense



(9,960)



(9,924)



(38,130)



(46,187)


Other income (expense), net



638



(1,842)



1,246



(4,230)



Income before provision for income taxes



16,998



38,296



79,442



140,399


Provision for income taxes



(2,422)



(7,071)



(14,201)



(7,104)



Net income



14,576



31,225



65,241



133,295



Net income attributable to noncontrolling interests



(334)



(357)



(1,711)



(980)



Net income attributable to Bristow Group


$

14,242


$

30,868


$

63,530


$

132,315

















Earnings per common share:















Basic


$

0.40


$

0.85


$

1.76


$

3.67



Diluted


$

0.39


$

0.84


$

1.73


$

3.60


















Adjusted EBITDAR


$

99,458


$

81,055


$

319,488


$

297,714


Adjusted operating income


$

60,964


$

50,057


$

180,864


$

182,852


Adjusted net income


$

44,558


$

31,711


$

114,641


$

113,045


Adjusted earnings per share


$

1.22


$

0.86


$

3.12


$

3.08


















 

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)










March 31,


March 31,




2012


2011












ASSETS

Current assets:









Cash and cash equivalents


$

261,550


$

116,361



Accounts receivable from non-affiliates



280,985



247,135



Accounts receivable from affiliates



5,235



15,384



Inventories



157,825



196,207



Assets held for sale



18,710



31,556



Prepaid expenses and other current assets



12,168



22,118




Total current assets



736,473



628,761


Investment in unconsolidated affiliates



205,100



208,634


Property and equipment – at cost:









Land and buildings



80,835



98,054



Aircraft and equipment



2,099,642



2,116,259







2,180,477



2,214,313



Less – Accumulated depreciation and amortization



(457,702)



(446,431)







1,722,775



1,767,882


Goodwill



29,644



32,047


Other assets



46,371



38,030




Total assets


$

2,740,363


$

2,675,354












LIABILITIES AND STOCKHOLDERS' INVESTMENT


Current liabilities:









Accounts payable


$

56,084


$

56,972



Accrued wages, benefits and related taxes



44,325



34,538



Income taxes payable



9,732



15,557



Other accrued taxes



5,486



4,048



Deferred revenues



14,576



9,613



Accrued maintenance and repairs



14,252



16,269



Accrued interest



2,300



2,279



Other accrued liabilities



23,005



19,613



Deferred taxes



15,070



12,176



Short-term borrowings and current maturities of long-term debt



14,375



8,979




Total current liabilities



199,205



180,044


Long-term debt, less current maturities



742,870



698,482


Accrued pension liabilities



111,742



99,645


Other liabilities and deferred credits



16,768



30,109


Deferred taxes



147,954



148,299










Stockholders' investment:









Common stock



363



363



Additional paid-in capital



703,628



689,795



Retained earnings



993,435



951,660



Accumulated other comprehensive loss



(159,239)



(130,117)



Treasury shares



(25,085)





Total Bristow Group Inc. stockholders' investment



1,513,102



1,511,701



Noncontrolling interests



8,722



7,074




Total stockholders' investment



1,521,824



1,518,775




Total liabilities and stockholders' investment


$

2,740,363


$

2,675,354














 

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)












Fiscal Year ended





March 31,





2012


2011







Cash flows from operating activities:




Net income


$

65,241


$

133,295


Adjustments to reconcile net income to net cash provided by operating activities:









Depreciation and amortization



96,144



89,377



Deferred income taxes



(16,288)



3,617



Discount amortization on long-term debt



3,380



3,176



(Gain) loss on disposal of assets



31,670



(8,678)



Gain on sale of joint ventures





(572)



Impairment of inventories



25,919





Impairment of Heliservicio investment





2,445



Stock-based compensation



11,510



12,601



Equity in earnings from unconsolidated affiliates less than (in excess of)










dividends received



5,486



(6,221)



Tax benefit related to stock-based compensation



(354)



(512)


Increase (decrease) in cash resulting from changes in:









Accounts receivable



(12,847)



(53,445)



Inventories



7,364



(4,718)



Prepaid expenses and other assets



1,926



4,475



Accounts payable



2,675



4,819



Accrued liabilities



14,607



(10,573)



Other liabilities and deferred credits



(5,086)



(17,731)


Net cash provided by operating activities



231,347



151,355












Cash flows from investing activities:









Capital expenditures



(326,420)



(145,518)



Deposits on assets held for sale



200



4,021



Proceeds from sale of joint ventures





1,291



Proceeds from asset dispositions



239,843



27,364



Investment in unconsolidated affiliates



(2,378)




Net cash used in investing activities



(88,755)



(112,842)












Cash flows from financing activities:









Proceeds from borrowings



159,993



253,013



Debt issuance costs



(871)



(3,339)



Repayment of debt and debt redemption premiums



(113,419)



(266,105)



Distributions to noncontrolling interest owners





(638)



Partial prepayment of put/call obligation



(63)



(59)



Acquisition of noncontrolling interests



(262)



(800)



Repurchase of common stock



(25,085)





Common stock dividends paid



(21,616)





Issuance of common stock



5,293



1,953



Tax benefit related to stock-based compensation



354



512


Net cash provided by financing activities



4,324



(15,463)


Effect of exchange rate changes on cash and cash equivalents



(1,727)



15,518


Net increase in cash and cash equivalents



145,189



38,568


Cash and cash equivalents at beginning of period



116,361



77,793


Cash and cash equivalents at end of period


$

261,550


$

116,361


 

BRISTOW GROUP INC. AND SUBSIDIARIES

SELECTED OPERATING DATA

(In thousands, except flight hours and percentages)

(Unaudited)









Three Months Ended



Fiscal Year Ended



March 31,



March 31,



2012



2011



2012



2011


Flight hours (excludes Bristow Academy and unconsolidated affiliates) :
















Europe


15,974




13,388




59,506




54,463


West Africa


10,454




9,173




41,737




38,390


North America


15,447




16,741




74,348




81,503


Australia


2,945




3,825




11,131




13,618


Other International


3,280




10,423




22,288




45,894




48,100




53,550




209,010




233,868


Operating revenue:
















Europe

$

121,027



$

101,236



$

449,854



$

384,927


West Africa


66,156




50,813




246,349




217,256


North America


42,342




39,640




176,545




191,411


Australia


43,389




40,799




148,268




146,722


Other International


34,557




36,263




141,504




146,020


Corporate and other


11,904




7,405




38,447




32,803


Intrasegment eliminations


(666)




(2,413)




(1,740)




(4,243)


Consolidated total

$

318,709



$

273,743



$

1,199,227



$

1,114,896


















Operating income (loss):
















Europe

$

26,650



$

23,939



$

94,277



$

89,320


West Africa


18,288




13,262




63,768




62,051


North America


2,389




(1,602)




8,378




14,527


Australia


11,601




9,312




19,840




30,497


Other International


9,890




17,076




36,343




42,038


Corporate and other


(13,995)




(17,235)




(75,170)




(57,387)


Gain (loss) on disposal of other assets


(28,610)




5,095




(31,670)




8,678


Consolidated total

$

26,213



$

49,847



$

115,766



$

189,724


















Operating margin:
















Europe


22.0

%


23.6

%


21.0

%


23.2

%

West Africa


27.6

%


26.1

%


25.9

%


28.6

%

North America


5.6

%


(4.0)

%


4.7

%


7.6

%

Australia


26.7

%


22.8

%


13.4

%


20.8

%

Other International


28.6

%


47.1

%


25.7

%


28.8

%

Consolidated total


8.2

%


18.2

%


9.7

%


17.0

%

















Adjusted EBITDAR:
















Europe

$

43,678



$

34,801



$

147,870



$

125,843


West Africa


24,223




17,432




86,158




76,411


North America


8,226




3,379




30,609




35,469


Australia


15,463




12,691




36,026




43,053


Other International


14,828




21,540




55,960




57,385


Corporate and other


(6,960)




(8,788)




(37,135)




(40,447)


Consolidated total

$

99,458



$

81,055



$

319,488



$

297,714


















Adjusted EBITDAR margin:
















Europe


36.1

%


34.4

%


32.9

%


32.7

%

West Africa


36.6

%


34.3

%


35.0

%


35.2

%

North America


19.4

%


8.5

%


17.3

%


18.5

%

Australia


35.6

%


31.1

%


24.3

%


29.3

%

Other International


42.9

%


59.4

%


39.5

%


39.3

%

Consolidated total


31.2

%


29.6

%


26.6

%


26.7

%

 

BRISTOW GROUP INC. AND SUBSIDIARIES

AIRCRAFT COUNT

As of March 31, 2012

(Unaudited)











Aircraft in Consolidated Fleet








Helicopters












Small


Medium


Large


Training


Fixed   Wing


Total

(1)

Unconsolidated Affiliates (2) (3)


Total

Europe



15


41




56


64


120

West Africa


10


25


7



4


46



46

North America


67


23


2




92



92

Australia


2


10


17




29



29

Other International


4


43


15




62


131


193

Corporate and other





76



76



76

Total


83


116


82


76


4


361


195


556

Aircraft not currently in fleet:(4)

















On order




15




15





Under option



12


28




40
























(1)

Includes 19 aircraft held for sale and 57 leased aircraft as follows:













Held for Sale Aircraft in Consolidated Fleet








Helicopters












Small


Medium


Large


Training


Fixed Wing


Total






Europe



2


3




5






West Africa



1





1






Australia



1


3




4






Other International



6


1




7






Corporate and other





2



2






Total



10


7


2



19


























Leased Aircraft in Consolidated Fleet








Helicopters












Small


Medium


Large


Training


Fixed Wing


Total






Europe




9




9






West Africa



1




1


2






North America


1


11


2




14






Australia


2



1




3






Other International




1




1






Corporate and other





28



28






Total


3


12


13


28


1


57






















(2)

The 195 aircraft operated by our unconsolidated affiliates do not include those aircraft leased from us

(3)

Includes 53 helicopters (primarily medium) and 33 fixed wing aircraft owned by Lider, our unconsolidated affiliate in Brazil, included in our Other International business unit

(4)

This table does not reflect aircraft which our unconsolidated affiliates may have on order or under option





















BRISTOW GROUP INC. AND SUBSIDIARIES

GAAP RECONCILIATIONS

These financial measures have not been prepared in accordance with generally accepted accounting principles ("GAAP") and have not been audited or reviewed by our independent auditor.  These financial measures are therefore considered non-GAAP financial measures.  Adjusted EBITDAR is calculated by taking our net income and adjusting for interest expense, depreciation and amortization, rent expense, benefit (provision) for income taxes, gain (loss) on disposal of assets and special items, if any.  Adjusted operating income, adjusted net income and adjusted diluted earnings per share are each adjusted for gain (loss) on disposal of assets and special items, if any, during the reported periods.  Management believes these non-GAAP financial measures provide meaningful supplemental information regarding our results because they exclude amounts that management does not consider part of our normal and recurring operations when assessing and measuring the operational and financial performance of the organization.  A description of the adjustments to and reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measures is as follows:











Three Months Ended


Fiscal Year Ended





March 31,


March 31,





2012



2011


2012



2011





 (In thousands, except per share amounts)

(Unaudited)


















Adjusted EBITDAR


$

99,458



$

81,055


$

319,488



$

297,714



Gain (loss) on disposal of assets



(28,610)




5,096



(31,670)




8,678



Special items



(3,451)




(2,445)



(28,061)




(1,245)



Rent expense



(15,143)




(7,746)



(46,041)




(29,184)



Interest expense



(9,960)




(9,924)



(38,130)




(46,187)



Depreciation and amortization



(25,296)




(27,740)



(96,144)




(89,377)



Benefit (provision) for income taxes



(2,422)




(7,071)



(14,201)




(7,104)


Net income


$

14,576



$

31,225


$

65,241



$

133,295



















Adjusted operating income


$

60,964



$

50,057


$

180,864



$

182,852



Gain (loss) on disposal of assets



(28,610)




5,096



(31,670)




8,678



Special items



(6,141)




(5,306)



(33,428)




(1,806)


Operating income


$

26,213



$

49,847


$

115,766



$

189,724



















Adjusted net income


$

44,558



$

31,711


$

114,641



$

113,045



Gain (loss) on disposal of assets



(24,533)




4,195



(26,008)




7,145



Special items



(5,783)




(5,038)



(25,103)




12,125


Net income attributable to Bristow Group


$

14,242



$

30,868


$

63,530



$

132,315




































Adjusted earnings per share


$

1.22



$

0.86


$

3.12



$

3.08



Gain (loss) on disposal of assets



(0.67)




0.11



(0.71)




0.19



Special items



(0.16)




(0.13)



(0.68)




0.34


Earnings per share



0.39




0.84



1.73




3.60
































Three Months Ended

March 31, 2012






Adjusted

Operating

Income


Adjusted

EBITDAR


Adjusted

Net Income


Adjusted

Diluted Earnings

Per Share








 (In thousands, except per share amounts)

(Unaudited)



Impairment of inventories(1)


$

(1,309)


$

(1,309)


$

(934)


$

(0.03)



Impairment of aircraft(2)



(2,690)





(2,661)



(0.07)



AS332L sale costs(3)



(2,142)



(2,142)



(1,393)



(0.04)



Tax items(4)







(795)



(0.02)




Total special items


$

(6,141)


$

(3,451)


$

(5,783)



(0.16)















Three Months Ended

March 31, 2011






Adjusted

Operating

Income


Adjusted

EBITDAR


Adjusted

Net Income


Adjusted

Diluted Earnings

Per

Share









 (In thousands, except per share amounts)

(Unaudited)



Impairment of IT system(5)


$

(5,306)


$


$

(3,449)


$

(0.09)



Impairment of investment in affiliate(6)





(2,445)



(1,589)



(0.04)




Total special items


$

(5,306)


$

(2,445)


$

(5,038)



(0.13)














Fiscal Year Ended

March 31, 2012






Adjusted

Operating

Income


Adjusted

EBITDAR


Adjusted

Net Income


Adjusted

Diluted Earnings

Per Share








 (In thousands, except per share amounts)

(Unaudited)



Impairment of inventories(1)


$

(25,919)


$

(25,919)


$

(18,514)


$

(0.50)



Impairment of aircraft(2)



(2,690)





(2,661)



(0.07)



Impairment of assets in Creole,  

   Louisiana(7)



(2,677)





(1,740)



(0.05)



AS332L sale costs(3)



(2,142)



(2,142)



(1,393)



(0.04)



Tax items(4)







(795)



(0.02)




Total special items


$

(33,428)


$

(28,061)


$

(25,103)



(0.68)















Fiscal Year Ended

March 31, 2011






Adjusted

Operating

Income


Adjusted

EBITDAR


Adjusted

Net Income


Adjusted

Diluted Earnings

Per

Share









 (In thousands, except per share amounts)

(Unaudited)



Impairment of IT system(5)


$

(5,306)


$


$

(3,449)


$

(0.09)



Impairment of investment in affiliate(6)





(2,445)



(1,589)



(0.04)



Power-by-the-hour credit(8)



3,500



3,500



2,520



0.07



Retirement of 6 1/8% Senior Notes(9)





(2,300)



(3,055)



(0.08)



Tax items(4)







17,698



0.48




Total special items


$

(1,806)


$

(1,245)


$

12,125



0.34




(1)

Represents the non-cash write-down of inventory spare parts to lower of cost or market value as management has made the determination to operate certain types of aircraft for a shorter period than originally anticipated.



(2)

Represents a non-cash impairment charge for two medium aircraft, which management intends to sell prior to the previously estimated useful life of the aircraft, recorded in depreciation and amortization expense resulting from the review of our operational fleet.



(3)

Represents direct costs recorded as a result of the sale transaction executed in March 2012 to sell 11 large aircraft.



(4)

The amount for the three months and fiscal year ended March 31, 2012 represents an increase in tax expense related to dividend inclusion as a result of internal realignment, partially offset by a reduction in tax expense from a change from deduction of foreign taxes paid to use of the taxes paid as credits to offset U.S. tax liabilities and a benefit from the release of a tax reserve in a foreign jurisdiction due to a favorable response to a ruling request.  The amount for the fiscal year ended March 31, 2011 represents the impact of a reduction in the provision for income taxes related to adjustments to deferred tax liabilities that were no longer required as a result of a restructuring during the fiscal year ended March 31, 2011.



(5)

Represents additional depreciation expense recorded as a result of the non-cash impairment of previously capitalized internal software costs as the related project was abandoned in the March 2011 quarter.



(6)

Represents a non-cash charge recorded as a reduction in other income (expense), net related to the impairment of our 24% investment in Heliservicio, an unconsolidated affiliate in Mexico, resulting from the sale of the investment which was pending as of March 31, 2011 and closed on July 15, 2011.



(7)

Represents a non-cash impairment charge recorded in d