Bristow Group Reports Financial Results For Its 2013 Fiscal First Quarter Ended June 30, 2012

- FIRST QUARTER GAAP NET INCOME OF $24 MILLION ($0.65 PER DILUTED SHARE) WITH FIRST QUARTER ADJUSTED NET INCOME OF $30 MILLION ($0.81 PER DILUTED SHARE), WHICH EXCLUDES THE IMPACT OF ASSET DISPOSITIONS AND A SPECIAL ITEM

- FIRST QUARTER OPERATING REVENUE OF $321 MILLION

- FIRST QUARTER ADJUSTED EBITDAR OF $84 MILLION, WHICH EXCLUDES THE IMPACT OF ASSET DISPOSITIONS AND A SPECIAL ITEM, AND OPERATING CASH FLOW OF $55 MILLION

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

Aug 06, 2012, 17:05 ET from Bristow Group Inc.

HOUSTON, Aug. 6, 2012 /PRNewswire/ -- Bristow Group Inc. (NYSE: BRS) today reported net income for the June 2012 quarter of $23.7 million, or $0.65 per diluted share, compared to net income of $21.0 million, or $0.57 per diluted share, in the same period a year ago.  Adjusted net income, which excludes asset dispositions and a special item, was $29.6 million, or $0.81 per diluted share, for the June 2012 quarter, an increase of $9.7 million, or $0.27 per diluted share, over the June 2011 quarter.

Operating revenue for the June 2012 quarter increased 12% to $320.7 million from $286.8 million in the June 2011 quarter, with revenue growth in Europe, West Africa and North America. 

Adjusted earnings before interest, taxes, depreciation, amortization and rent ("Adjusted EBITDAR"), which excludes asset dispositions and a special item, increased 26% to $84.3 million for the June 2012 quarter from $67.0 million in the same quarter a year ago.  Net cash provided by operating activities also increased, totaling $55.4 million in the June 2012 quarter compared to $52.9 million in the June 2011 quarter and $37.4 million in the March 2012 quarter.

The June 2012 quarter's GAAP net income was affected by the following items, the first two of which are not included in adjusted net income:

  • A loss on disposal of assets of $5.3 million (which includes non-cash impairment charges of $1.9 million associated with aircraft held for sale), compared with a gain on disposal of assets of $1.4 million in the June 2011 quarter,
  • A special charge of $2.2 million for severance costs related to the termination of a contract in the Southern North Sea, and
  • Compensation expense of approximately $2.0 million included in general and administrative expense related to the departure of an officer of the Company.

 

"The strong operating performance we experienced in our fiscal 2012 fourth quarter continued in the first quarter of fiscal 2013," said William E. Chiles, President and Chief Executive Officer of Bristow Group.  "We are benefitting from the strength of the deep-water markets as our results for the June 2012 quarter were driven by higher activity in the North Sea, recovery in the U.S. Gulf of Mexico, higher aircraft utilization levels in Nigeria and lower costs primarily at the corporate level."

Mr. Chiles continued, "We are expecting the solid revenue growth experienced over the recent quarters to continue throughout the remainder of fiscal 2013, and anticipate strong adjusted EBITDAR margins.  The Bristow Client Promise – to provide unmatched safety, reliability and hassle-free service – is making a real difference for our clients and as a result, we are being awarded new contracts with better terms for our value proposition."

FIRST QUARTER FY2013 RESULTS

  • Operating revenue increased 12% to $320.7 million compared to $286.8 million in the same period a year ago.
  • Operating income increased 10% to $40.0 million compared to $36.4 million in the June 2011 quarter.
  • Net income increased 12% to $23.7 million, or $0.65 per diluted share, compared to $21.0 million, or $0.57 per diluted share, in the June 2011 quarter.  Adjusted net income increased 49% to $29.6 million, or $0.81 per diluted share, compared to $19.9 million, or $0.54 per diluted share, in the June 2011 quarter. 
  • Adjusted EBITDAR increased 26% to $84.3 million compared to $67.0 million in the same period a year ago.
  • Cash totaled $227.3 million and our total liquidity, which includes cash and borrowing availability on our $200 million revolving credit facility, was $387 million as of June 30, 2012.

 

There continues to be strong demand both from new and existing clients in the Northern North Sea and in Norway.  To meet this demand, we have added new large aircraft to our Europe Business Unit over the past year.  These new aircraft, as well as an overall increase in flying activity, led to a 14% increase in operating revenue and an 11% increase in adjusted EBITDAR over the June 2011 quarter.  Adjusted EBITDAR margin of 32.2% was slightly lower than the prior year quarter's margin of 33.0%.

Activity levels continue to be strong in our West Africa Business Unit, where we saw a 12% increase in flight hours over the June 2011 quarter, leading to a 27% increase in operating revenue, a 37% increase in adjusted EBITDAR and an 8% increase in adjusted EBITDAR margin. 

The addition of S-92 large aircraft to our fleet of our North America Business Unit continues to drive operating improvement in the U.S. Gulf of Mexico along with the issuance of more drilling and completion permits.  Operating revenue increased 20% resulting from the addition of the new large aircraft despite no significant change in flight hours from the June 2011 quarter.  This revenue increase, coupled with a reduction in cost structure and the leasing of new aircraft, led to an almost doubling of adjusted EBITDAR and a significant increase in adjusted EBITDAR margin to 23.2% from 14.3% in the prior year quarter.  Adjusted EBITDAR margin also improved sequentially over the March 2012 quarter performance of 19.4%.

Despite a decrease in operating revenue in our Australia Business Unit, adjusted EBITDAR improved 25% and adjusted EBITDAR margin improved 34% over the June 2011 quarter in this market.  The improvement represents the result of significant work in this market to reduce costs and better utilize our existing fleet. 

Our Other International Business Unit was negatively affected by a decline in activity in Mexico, and an increase in operating costs in Trinidad and lower than expected earnings from Líder in Brazil.  Our earnings from Líder were less than expected for the June 2012 quarter due to changes in foreign exchange rates and startup costs that were incurred for new aircraft in advance of revenue generation.  We expect Líder's contribution to our earnings to remain unpredictable over the remainder of fiscal year 2013.  The results from Mexico, Trinidad and Brazil were the primary contributors to the 25% decrease in adjusted EBITDAR margin for Other International compared with the June 2011 quarter.

CONTRACT AWARDS

We recently announced that we have secured several major new multi-year contracts for the provision of a total of 20 large aircraft that are expected to generate in excess of $2 billion in revenue in Europe, Australia and Brazil.  This contract work, with higher pricing and improved terms, comes online over the period beginning in the September 2012 quarter through fiscal year 2015, with three aircraft starting work under these contracts in the September 2012 quarter, ten aircraft in fiscal year 2014 and seven aircraft in fiscal year 2015.

DIVIDEND

On July 31, 2012, our Board of Directors declared a sixth consecutive quarterly dividend.  This dividend of $0.20 per share will be paid on September 14, 2012 to shareholders of record on August 31, 2012.  Based on shares outstanding at June 30, 2012, total dividend payments to be made during the three months ended September 30, 2012 will be approximately $7.2 million.

GUIDANCE

Bristow is reaffirming today the adjusted earnings per share guidance provided in May 2012 for the full fiscal year 2013 of $3.25 to $3.55.

"Our 2013 guidance reaffirmation is based on the results of this historically strong first quarter of our fiscal year," said Jonathan E. Baliff, Senior Vice President and Chief Financial Officer of Bristow Group.  "In addition to the stronger performance and earnings per share growth year over year, we continued to generate significant operating cash flow.  This is a testament to the hard work of our global operations and commercial teams."

As a reminder, our GAAP earnings per share guidance does not include unrealized 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 and divestitures.  Changes in events or other circumstances that the Company cannot 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.

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Tuesday, August 7, 2012 to review financial results for the fiscal year 2013 first quarter ended June 30, 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 2013 First Quarter Earnings Conference Call"
  • Replay: A replay via webcast will be available approximately one hour after the call's completion and will be accessible for approximately 90 days

 

Via Telephone within the U.S.:

  • Live: Dial toll free 1-877-941-0843
  • Replay: A telephone replay will be available through August 21, 2012 and may be accessed by calling toll free 1-800-406-7325, passcode: 4552131#

 

Via Telephone outside the U.S.:

  • Live: Dial 1-480-629-9819
  • Replay: A telephone replay will be available through August 21, 2012 and may be accessed by calling 1-303-590-3030, passcode: 4552131#

 

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, 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 quarterly report on Form 10-Q for the quarter ended June 30, 2012 and the 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, percentages and flight hours)

(Unaudited)

 

Three Months Ended

June 30,

2012

2011

Gross Revenue:

Operating revenue

$

320,654

$

286,761

Reimbursable revenue

41,954

34,344

Total gross revenue

362,608

321,105

Operating expense:

Direct cost

222,768

196,622

Reimbursable expense

40,172

33,134

Depreciation and amortization

21,372

22,708

General and administrative

34,977

39,645

319,289

292,109

Gain (loss) on disposal of assets 

(5,315)

1,416

Earnings from unconsolidated

affiliates, net of losses

1,989

5,993

Operating income

39,993

36,405

Interest expense, net

(8,686)

(8,784)

Other income (expense), net

(931)

204

Income before provision for income taxes

30,376

27,825

Provision for income taxes

(6,180)

(6,606)

Net income

24,196

21,219

Net income attributable to noncontrolling interests

(534)

(174)

Net income attributable to Bristow Group

$

23,662

$

21,045

Diluted earnings per common share

$

0.65

$

0.57

Operating margin

12.5%

12.7%

Flight hours

55,128

54,056

Non-GAAP financial measures:

Adjusted operating income

$

47,470

$

34,989

Adjusted operating income margin

14.8%

12.2%

Adjusted EBITDAR

$

84,273

$

67,025

Adjusted EBITDAR margin

26.3%

23.4%

Adjusted net income

$

29,618

$

19,878

Adjusted diluted earnings per share

$

0.81

$

0.54

 

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

June 30,

March 31,

2012

2012

ASSETS

Current assets:

Cash and cash equivalents 

$

227,250

$

261,550

Accounts receivable from non-affiliates

287,131

280,985

Accounts receivable from affiliates

4,828

5,235

Inventories 

157,543

157,825

Assets held for sale

18,100

18,710

Prepaid expenses and other current assets 

12,239

12,168

Total current assets 

707,091

736,473

Investment in unconsolidated affiliates 

201,042

205,100

Property and equipment – at cost:

Land and buildings 

81,816

80,835

Aircraft and equipment 

2,143,073

2,099,642

2,224,889

2,180,477

Less – Accumulated depreciation and amortization 

(467,887)

(457,702)

1,757,002

1,722,775

Goodwill 

29,339

29,644

Other assets 

45,905

46,371

Total assets

$

2,740,379

$

2,740,363

LIABILITIES AND STOCKHOLDERS' INVESTMENT

Current liabilities:

Accounts payable 

$

57,876

$

56,084

Accrued wages, benefits and related taxes 

42,815

44,325

Income taxes payable 

9,910

9,732

Other accrued taxes 

6,653

5,486

Deferred revenue 

12,914

14,576

Accrued maintenance and repairs 

16,182

14,252

Accrued interest 

7,950

2,300

Other accrued liabilities 

26,615

23,005

Deferred taxes 

14,963

15,070

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

16,562

14,375

Total current liabilities 

212,440

199,205

Long-term debt, less current maturities 

719,737

742,870

Accrued pension liabilities 

109,792

111,742

Other liabilities and deferred credits 

14,823

16,768

Deferred taxes 

142,388

147,954

Stockholders' investment:

Common shares

363

363

Additional paid-in capital 

705,984

703,628

Retained earnings 

1,009,952

993,435

Accumulated other comprehensive loss 

(158,934)

(159,239)

Treasury shares

(25,085)

(25,085)

Total Bristow Group Inc. stockholders' investment

1,532,280

1,513,102

Noncontrolling interests 

8,919

8,722

Total stockholders' investment

1,541,199

1,521,824

Total liabilities and stockholders' investment

$

2,740,379

$

2,740,363

 

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

Three Months Ended

June 30,

2012

2011

Cash flows from operating activities:

Net income

$

24,196

$

21,219

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

Depreciation and amortization

21,372

22,708

Deferred income taxes

(6,071)

2,949

Discount amortization on long-term debt

870

822

Loss (gain) on disposal of assets

5,315

(1,416)

Stock-based compensation

2,848

5,196

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

4,129

(1,393)

Tax benefit related to stock-based compensation

(404)

(101)

Increase (decrease) in cash resulting from changes in:

Accounts receivable

(10,081)

10,640

Inventories

(1,869)

(5,420)

Prepaid expenses and other assets

3,816

3,701

Accounts payable

960

(5,527)

Accrued liabilities

11,212

459

Other liabilities and deferred credits

(881)

(948)

Net cash provided by operating activities

55,412

52,889

Cash flows from investing activities:

Capital expenditures

(86,555)

(72,235)

Proceeds from asset dispositions

20,227

833

Investment in unconsolidated affiliates

(850)

Net cash used in investing activities

(67,178)

(71,402)

Cash flows from financing activities:

Proceeds from borrowings

55,000

Repayment of debt and debt redemption premiums

(21,800)

(31,274)

Partial prepayment of put/call obligation

(17)

(15)

Common stock dividends paid

(7,145)

(5,410)

Issuance of common stock

311

1,183

Tax benefit related to stock-based compensation

404

101

Net cash  provided by (used in) financing activities

(28,247)

19,585

Effect of exchange rate changes on cash and cash equivalents

5,713

(363)

Net increase (decrease) in cash and cash equivalents

(34,300)

709

Cash and cash equivalents at beginning of period

261,550

116,361

Cash and cash equivalents at end of period

$

227,250

$

117,070

 

BRISTOW GROUP INC. AND SUBSIDIARIES

SELECTED OPERATING DATA

(In thousands, except flight hours and percentages)

(Unaudited)

 

Three Months Ended

June 30,

2012

2011

Flight hours (excludes Bristow Academy and

unconsolidated affiliates):

Europe

17,236

14,182

West Africa

10,754

9,629

North America

20,169

20,434

Australia

2,792

3,382

Other International

4,177

6,429

Consolidated total

55,128

54,056

Operating revenue:

Europe

$

123,235

$

108,288

West Africa

66,355

52,251

North America

52,625

43,913

Australia

38,171

40,920

Other International

33,227

34,549

Corporate and other

7,420

6,847

Intrasegment eliminations

(379)

(7)

Consolidated total

$

320,654

$

286,761

Operating income (loss):

Europe

$

21,876

$

23,249

West Africa

16,131

11,231

North America

6,475

1,584

Australia

6,509

4,524

Other International

7,387

11,910

Corporate and other

(13,070)

(17,509)

Gain (loss) on disposal of assets

(5,315)

1,416

Consolidated total

$

39,993

$

36,405

Operating margin:

Europe

17.8%

21.5%

West Africa

24.3%

21.5%

North America

12.3%

3.6%

Australia

17.1%

11.1%

Other International

22.2%

34.5%

Consolidated total

12.5%

12.7%

Three Months Ended

June 30,

2012

2011

Adjusted EBITDAR:

Europe

$

39,664

$

35,700

West Africa

21,163

15,430

North America

12,200

6,267

Australia

10,325

8,281

Other International

12,014

16,624

Corporate and other

(11,093)

(15,277)

Consolidated total

$

84,273

$

67,025

Adjusted EBITDAR margin:

Europe

32.2%

33.0%

West Africa

31.9%

29.5%

North America

23.2%

14.3%

Australia

27.0%

20.2%

Other International

36.2%

48.1%

Consolidated total

26.3%

23.4%

 

BRISTOW GROUP INC. AND SUBSIDIARIES

AIRCRAFT COUNT

As of June 30, 2012

(Unaudited)

 

                    Aircraft in Consolidated Fleet

                    Helicopters

Small

Medium

Large

Training

Fixed

Wing

Unconsolidated Affiliates (3)

Total (1)(2)

Total

Europe

15

43

58

64

122

West Africa

10

25

7

3

45

45

North America

67

22

2

91

91

Australia

2

10

16

28

28

Other International

4

40

14

58

130

188

Corporate and other

77

77

77

Total

83

112

82

77

3

357

194

551

Aircraft not currently in fleet: (4)

    On order

17

17

    Under option

12

24

36

_________

(1)

Includes 17 aircraft held for sale and 56 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

North America   

Australia   

1

3

4

Other International   

7

7

Corporate and other  

Total   

11

6

17

                    Leased Aircraft in Consolidated Fleet

                    Helicopters

Small

Medium

Large

Training

Fixed Wing

Total

Europe   

8

8

West Africa   

1

1

North America   

1

11

2

14

Australia   

2

1

3

Other International   

Corporate and other  

30

30

Total   

3

12

11

30

56

(2)

The average age of our fleet, excluding training aircraft, was 12 years as of June 30, 2012.

(3)

The 194 aircraft operated by our unconsolidated affiliates do not include those aircraft leased from us.

(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 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

June 30,

2012

2011

(In thousands, except per share amounts) (Unaudited)

Adjusted operating income

$

47,470

$

34,989

Gain (loss) on disposal of assets

(5,315)

1,416

Severance costs for termination of a contract

(2,162)

Operating income

$

39,993

$

36,405

Adjusted EBITDAR

$

84,273

$

67,025

Gain (loss) on disposal of assets

(5,315)

1,416

Severance costs for termination of a contract

(2,162)

Depreciation and amortization

(21,372)

(22,708)

Rent expense

(16,274)

(8,953)

Interest expense

(8,774)

(8,955)

Provision for income taxes

(6,180)

(6,606)

Net income

$

24,196

$

21,219

Adjusted net income

$

29,618

$

19,878

Gain (loss) on disposal of assets

(4,234)

1,167

Severance costs for termination of a contract

(1,722)

Net income attributable to Bristow Group

$

23,662

$

21,045

Adjusted diluted earnings per share

$

0.81

$

0.54

Gain (loss) on disposal of assets

(0.12)

0.03

Severance costs for termination of a contract

(0.05)

Diluted earnings per share

0.65

0.57

 

SOURCE Bristow Group Inc.



RELATED LINKS

http://www.bristowgroup.com