Bristow Group Reports Strong Financial Results For Its 2014 Fiscal Second Quarter And Six Months Ended September 30, 2013

- SECOND QUARTER AND SIX MONTH GAAP NET INCOME OF $110.6 MILLION ($3.01 PER DILUTED SHARE) AND $137.5 MILLION ($3.75 PER DILUTED SHARE), INCLUDING A GAIN ON SALE OF AN UNCONSOLIDATED AFFILIATE OF $103.9 MILLION ($1.85 PER DILUTED SHARE)

- SECOND QUARTER AND SIX MONTH ADJUSTED NET INCOME OF $46.5 MILLION ($1.27 PER DILUTED SHARE) AND $83.5 MILLION ($2.28 PER DILUTED SHARE), WHICH EXCLUDES THE IMPACT OF ASSET DISPOSITIONS AND SPECIAL ITEMS (INCLUDING THE GAIN ON SALE OF AN UNCONSOLIDATED AFFILIATE)

- COMPANY INCREASES GUIDANCE FOR FULL FISCAL YEAR 2014 ADJUSTED EPS TO $4.25 - $4.55

Nov 07, 2013, 16:53 ET from Bristow Group Inc.

HOUSTON, Nov. 7, 2013 /PRNewswire/ -- Bristow Group Inc. (NYSE: BRS) today reported net income for the September 2013 quarter of $110.6 million, or $3.01 per diluted share, compared to net income of $29.7 million, or $0.82 per diluted share, in the same period a year ago.

The results for both the quarter and six-month period include a significant gain on the sale of the FB Entities, an unconsolidated U.K. affiliate, of $103.9 million, or $1.85 per diluted share. Adjusted net income, which excludes special items and asset disposition effects, including this gain, increased 60% to $46.5 million, or $1.27 per diluted share, for the September 2013 quarter, compared to $29.2 million or $0.80 per diluted share, in the September 2012 quarter.

Adjusted earnings before interest, taxes, depreciation, amortization and rent ("adjusted EBITDAR"), which also excludes special items and asset disposition effects, was $108.5 million for the September 2013 quarter compared to $84.9 million in the same period a year ago, an increase of 28%.  Net cash provided by operating activities totaled $96.1 million for the September 2013 quarter compared to $79.5 million in the September 2012 quarter.

The improvement in adjusted EBITDAR, adjusted net income and adjusted diluted earnings per share for the September 2013 quarter compared to the September 2012 quarter was primarily driven by:

  • Improved pricing and increased activity with new and existing clients in our Europe and West Africa Business Units, and
  • Aircraft operating in Canada for our Canadian affiliate, Cougar Helicopters Inc. ("Cougar"), beginning in October 2012.

This improvement was partially offset by:

  • A decrease in small aircraft activity in our U.S. Gulf of Mexico and Alaska operations, and
  • The end of short-term contracts and costs incurred in anticipation of new contracts that start during the fourth quarter of fiscal year 2014 in Australia.

"Similar to our first quarter of fiscal 2014, the second quarter was a record quarter for Bristow, with continued excellent top-line growth and improved margins compared to last year.  I am particularly proud of our team's focus as these results were achieved during a quarter in which a number of industry challenges arose," said William E. Chiles, President and Chief Executive Officer of Bristow Group.

"Our results in Europe now include operations from our search and rescue bases in Sumburgh and Stornoway in the U.K., where we've flown over 120 missions to date.  Combined with the continued contribution from West Africa and Brazil, both sequential and year over year quarterly adjusted EBITDAR margins improved." 

"Our Cougar affiliate in Atlantic Canada notably improved our business in North America. When combined with actions we are taking to restructure the Gulf of Mexico for more medium and large aircraft operations, Bristow is poised to further capitalize on deepwater expansion."

Mr. Chiles continued, "We saw five of our Eurocopter EC225s return to full revenue service in the September quarter, with the operational modifications progressing.  The commercial re-entry of these aircraft continues and we expect our full EC225 fleet to be available for a return to revenue service over the second half of fiscal 2014.  Our team's excellent first half performance and our belief in a solid second half performance allow us to increase our adjusted EPS fiscal 2014 guidance range to $4.25 to $4.55."

SECOND QUARTER FY2014 RESULTS

  • Operating revenue increased 16% to $378.6 million compared to $326.0 million in the same period a year ago.
  • Operating income increased 14% to $53.9 million compared to $47.3 million in the September 2012 quarter.
  • Our GAAP net income increased by 273% to $110.6 million, or $3.01 per diluted share, compared to $29.7 million, or $0.82 per diluted share, in the September 2012 quarter. 
  • Our GAAP results for the September 2013 quarter were impacted by the following items that are excluded from our adjusted non-GAAP financial measures for the quarter:
    • The sale of our 50% interest in the FB Entities for £74 million, or approximately $112.2 million, resulting in a pre-tax gain of $103.9 million included as gain on sale of unconsolidated affiliate. This special item increased net income by $67.9 million and earnings per share by $1.85,
    • A loss on disposal of assets of $3.1 million, which compares to a loss of $1.3 million in the September 2012 quarter,
    • $1.5 million in inventory allowances as a result of our review of excess inventory on aircraft model types we sold or classified all or a significant portion of as held for sale, and
    • A charge of $0.5 million in costs associated with the planned closure of our Alaska operations which related primarily to employee severance and retention costs. We expect to incur approximately $3.5 million in additional costs related mostly to severance and retention through August 2014 to provide services for the remainder of the applicable remaining client contract terms and close our Alaska operations.
  • Adjusted net income, which excludes special items and asset disposition effects, increased 60% to $46.5 million, or $1.27 per diluted share, compared to $29.2 million, or $0.80 per diluted share, in the September 2012 quarter.
  • Adjusted EBITDAR, which excludes special items and asset disposition effects, increased 28% to $108.5 million compared to $84.9 million in the same period a year ago.
  • Cash as of September 30, 2013 totaled $313.5 million compared to $215.6 million as of March 31, 2013.  Our total liquidity, including cash on hand and availability on our revolving credit facility, was $618.0 million as of September 30, 2013 compared to $415.0 million as of March 31, 2013, a 49% increase.

SECOND QUARTER FY2014 BUSINESS UNIT RESULTS

Europe Business Unit

The addition of new large aircraft, along with an overall increase in activity with existing clients and new contracts primarily in the U.K. Northern North Sea, resulted in increased revenue of $24.1 million and were the primary contributors to revenue growth in our Europe Business Unit.  We increased our fleet in this region by executing operating leases for new large oil and gas aircraft beginning in late fiscal year 2012 and continuing through the September 2013 quarter, with the addition of the four search and rescue ("SAR") aircraft. Adjusted EBITDAR increased almost 28% year-over-year; however, adjusted EBITDAR margin increased only slightly to 35.3% in the September 2013 quarter compared to 34.6% in the September 2012 quarter primarily due to maintenance and salary increases year over year.  Sequential quarterly adjusted EBITDAR margins improved to 35.3% in the September 2013 quarter from 30.3% in the June 2013 quarter due to a full quarter of contribution from SAR work.

West Africa Business Unit

Activity levels continued to be strong in our West Africa Business Unit, leading to a 16.2% increase in operating revenue for the September 2013 quarter compared to the September 2012 quarter.  The increase in revenue and a decrease in import duties, partially offset by an increase in base repairs and maintenance expense as well as aircraft maintenance expense resulted in a 33.4% improvement in adjusted EBITDAR compared with September 2012 quarter as well as an increase in  adjusted EBITDAR margins to 30.4% for the September 2013 quarter compared to 26.5% for the September 2012 quarter.

North America Business Unit

Our entry into the Atlantic Canada region through our investment in Cougar in October 2012 drove the improvement in revenue, adjusted EBITDAR and adjusted EBITDAR margin in North America.  Aircraft operating for Cougar in Canada contributed $8.2 million in revenue in the September 2013 quarter.  Driven primarily by the revenue generated from new aircraft operating in Canada and the lower level of bad debt expense in September 2013, North America's adjusted EBITDAR and adjusted EBITDAR margin improved to $18.7 million and 31.0%, respectively, in the September 2013 quarter compared to $11.8 million and 20.7%, respectively, in the September 2012 quarter.

Offsetting this improvement was a decline in activity in our U.S. Gulf of Mexico business, primarily related to small aircraft.  We recognize that the current operating environment in the North America business unit is challenging for our fleet mix and we are proactively restructuring our business by exiting the Alaska market and selling smaller aircraft with a long-term strategy of operating larger aircraft to service deepwater client contracts in the U.S. Gulf of Mexico.

Australia Business Unit

Operating revenue for Australia decreased 8.1% from $38.4 million in the September 2012 quarter to $35.3 million in the September 2013 due to the end of short-term contracts and the impact of foreign currency exchange rate changes.  As a result of costs incurred in the September 2013 quarter in anticipation of client contracts that start in the fourth quarter of this current fiscal year, adjusted EBITDAR and adjusted EBITDAR margin decreased in the September 2013 quarter to $7.4 million and 21.0%, respectively, from $10.8 million and 28.0%, respectively, in the September 2012 quarter. We continue to incur salaries and benefits, depreciation, insurance, training and lease costs in anticipation of the new contracts that start during the fourth quarter of fiscal year 2014.

Other International Business Unit

Operating revenue for our Other International Business Unit increased slightly due to an increase in activity in Trinidad and Brazil, partially offset by a decline in revenue resulting from the end of a short-term contract in Guyana, a decline in aircraft on contract in Mexico and Malaysia and a decline in activity in Russia. Adjusted EBITDAR and adjusted EBITDAR margin for the September 2013 quarter decreased to $12.6 million and 39.3%, respectively, compared to $14.2 million and 44.2%, respectively, in the September 2012 quarter, primarily due to a decline in aircraft on contract in Malaysia and a decline in activity and higher maintenance expense in Russia, partially offset by higher activity in Trinidad.

UPDATE ON EC225 OPERATIONS

Eurocopter, the manufacturer of the EC225 Super Puma aircraft, has indicated that they have determined the root causes of the gear shaft failure in the EC225 that occurred in 2012. This determination has been reviewed and verified by airworthiness authorities and independent third parties. The definitive solution to the problem will be a redesign of the gear shaft with earliest possible anticipated availability being in the middle of calendar year 2014.  However, in July 2013 the European Aviation Safety Authority (the "EASA") issued an airworthiness directive providing for interim solutions involving minor aircraft modifications and new maintenance/operating procedures for mitigating shaft failure and enhancing early detection.

The Civil Aviation Authorities in the U.K. and Norway have issued safety directives, which superseded and revoked the safety directive of October 2012 and now permit a return to service of the EC225 aircraft over harsh environments conditional upon compliance with the EASA airworthiness directive.  We have commenced the required modifications and are carrying out the required inspections on our EC225 fleet in the U.K., Norway and Australia.

On August 23, 2013, an AS332L2, operated by another helicopter company in our industry, ditched near Sumburgh Airport in the U.K. resulting in the loss of four lives.  To date, the investigation has not found any evidence of a technical fault and the ongoing work by the U.K. Air Accidents Investigation Branch continues to focus on the operational aspects of the flight.  

Currently, no client contracts have been cancelled in connection with the suspension in operations of the EC225 aircraft or AS332L2 ditching and we believe we have the contractual right to continue to receive monthly standing charges billed to our clients.  In certain instances, we have agreed to reduced monthly standing charge billings for the affected aircraft.  We have been able to substantially replace the lost utilization from the EC225 aircraft with other aircraft, mitigating the impact on our results of operations during the September 2013 quarter.

The current situation will continue until the necessary modifications are made to the EC225 fleet and we are confident that the interim modifications will allow us to operate the aircraft safely.  Some of our EC225 fleet have commenced returning to service in September 2013 and the operational modification process is progressing. Until the fleet is again fully operational and under commercial arrangements similar to before the operational suspension, this situation could have a material adverse effect on our future business, financial condition and results of operations.

Following the August 2013 accident and in conjunction with two other helicopter operators in the U.K., we have embarked upon a Joint Operator's Review of Safety to review current processes, procedures and equipment in order to identify best practice in the offshore helicopter industry, with a view to further enhancing safety for our clients and crew.  Bristow Group will readily and actively participate in a United Kingdom Parliamentary Inquiry on helicopter safety which commenced November 6, 2013 with written submissions requested by December 20, 2013.

DIVIDEND AND SHARE REPURCHASE

On November 5, 2013, our Board of Directors approved our eleventh consecutive quarterly dividend.  This dividend of $0.25 per share will be paid on December 13, 2013 to shareholders of record on November 29, 2013 and is 67% higher than the first dividend paid in June 2011.  Based on shares outstanding as of September 30, 2013, the total quarterly dividend payment will be approximately $9.2 million. Additionally, our Board of Directors extended the date to repurchase up to $100 million of shares of our Common Stock to November 5, 2014.

GUIDANCE

We are revising our adjusted diluted earnings per share guidance for the full fiscal year 2014 to $4.25 to $4.55, a $0.05 increase at each end of the range, reflecting our expectation for continued growth, and improving operational and capital efficiency.

"Our continued improvement in operating and commercial performance has delivered strong financial results, as seen in the over 28% growth in adjusted EBITDAR and 59% growth in adjusted EPS over the same period a year ago," said Jonathan E. Baliff, Senior Vice President and Chief Financial Officer of Bristow Group.

"Combined with the proceeds from the recent sale of our interest in the FB Entities, we have increased our overall liquidity by 49% to $618.0 million for oil and gas and civilian SAR growth.  This prudent balance sheet management commitment combined with our commitment to a growing quarterly dividend and potential share repurchases, provides our existing and future investors a unique, long term, and worthwhile path to invest in this industry."

As a reminder, our earnings per share guidance does not include the effects of asset dispositions and 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, we have not included the impact of any changes in accounting standards and any impact from significant acquisitions or divestitures.  Events or other circumstances that we do not currently anticipate or cannot predict  including any issues involved with the return to full revenue service of the EC225 aircraft and changes in the market and industry, could result in earnings per share for fiscal year 2014 that are significantly above or below this guidance.  Factors that could cause such changes are described below under the Forward-Looking Statements Disclosure and the Risk Factors in our quarterly report on Form 10-Q for the quarter ended September 30, 2013 and annual report on Form 10-K for the fiscal year ended March 31, 2013.

CONFERENCE CALL

Management will conduct a conference call starting at 10:00 a.m. ET (9:00 a.m. CT) on Friday, November 8, 2013 to review financial results for the fiscal year 2014 second quarter ended September 30, 2013.  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 2014 Second 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 1-866-225-8754
  • Replay: A telephone replay will be available through November 22, 2013 and may be accessed by calling toll free 1-800-406-7325, passcode: 4644904#

Via Telephone outside the U.S.:

  • Live: Dial 1-480-629-9818
  • Replay: A telephone replay will be available through November 22, 2013 and may be accessed by calling 1-303-590-3030, passcode: 4644904#

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 Australia, Brazil, Canada, 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, EC225 return to service, capital allocation strategy, operational and capital performance, shareholder return, liquidity and 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.  Risks and uncertainties include without limitation:  fluctuations in the demand for our services; fluctuations in worldwide prices of and demand for natural gas and oil; fluctuations in levels of natural gas and oil exploration and development activities; the impact of competition; actions by customers; the risk of reductions in spending on helicopter services by governmental agencies; changes in tax and other laws and regulations; changes in foreign exchange rates and controls; risks associated with international operations; operating risks inherent in our business, including the possibility of declining safety performance; general economic conditions including the capital and credit markets; our ability to obtain financing; the risk of grounding of segments of our fleet for extended periods of time or indefinitely; our ability to re-deploy our aircraft to regions with greater demand; our ability to acquire additional aircraft and dispose of older aircraft through sales into the aftermarket; the possibility that we do not achieve the anticipated benefit of our fleet investment program; availability of employees; and political instability, war or acts of terrorism in any of the countries where we operate.  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 September 30, 2013 and annual report on Form 10-K for the fiscal year ended March 31, 2013.  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 and percentages)

(Unaudited)

Three Months Ended   September 30,

Six Months Ended   September 30,

2013

2012

2013

2012

Gross revenue:

Operating revenue from non-affiliates

$

353,849

$

319,663

$

690,097

$

634,512

Operating revenue from affiliates

24,781

6,288

48,080

12,093

Reimbursable revenue from non-affiliates

38,698

39,719

78,080

81,673

Reimbursable revenue from affiliates

84

65

84

417,328

365,754

816,322

728,362

Operating expense:

Direct cost

256,766

224,495

512,022

447,263

Reimbursable expense

36,314

38,634

73,057

78,806

Depreciation and amortization

23,858

23,321

46,677

44,693

General and administrative

46,479

37,708

86,787

72,685

363,417

324,158

718,543

643,447

Loss on disposal of assets

(3,064)

(1,262)

(4,785)

(6,577)

Earnings from unconsolidated affiliates, net of losses

3,088

6,994

17,060

8,983

Operating income

53,935

47,328

110,054

87,321

Interest income

762

263

881

351

Interest expense

(9,078)

(8,597)

(29,448)

(17,371)

Gain on sale of unconsolidated affiliate

103,924

103,924

Other income (expense), net

1,487

(218)

121

(1,149)

Income before provision for income taxes

151,030

38,776

185,532

69,152

Provision for income taxes

(41,146)

(8,342)

(48,736)

(14,522)

 Net income

109,884

30,434

136,796

54,630

Net income attributable to noncontrolling interests

722

(766)

696

(1,300)

Net income attributable to Bristow Group

$

110,606

$

29,668

$

137,492

$

53,330

Earnings per common share:

Basic

$

3.04

$

0.83

$

3.79

$

1.49

Diluted

$

3.01

$

0.82

$

3.75

$

1.46

Non-GAAAP measures:

Adjusted operating  income

$

59,087

$

46,274

$

117,752

$

93,276

Adjusted operating margin

15.6

%

14.2

%

16.0

%

14.4

%

Adjusted EBITDAR

$

108,508

$

84,922

$

211,806

$

168,727

Adjusted EBITDAR margin

28.7

%

26.1

%

28.7

%

26.1

%

Adjusted net income

$

46,504

$

29,153

$

83,544

$

58,425

Adjusted diluted earnings per share

$

1.27

$

0.80

$

2.28

$

1.60

 

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

September 30,   2013

March 31,    2013

ASSETS

Current assets:

Cash and cash equivalents

$

313,521

$

215,623

Accounts receivable from non-affiliates

232,767

254,520

Accounts receivable from affiliates

8,109

8,261

Inventories

158,622

153,969

Assets held for sale

26,719

8,290

Prepaid expenses and other current assets

30,950

35,095

Total current assets

770,688

675,758

Investment in unconsolidated affiliates

272,345

272,123

Property and equipment – at cost:

Land and buildings

111,406

108,593

Aircraft and equipment

2,441,399

2,306,054

2,552,805

2,414,647

Less – Accumulated depreciation and amortization

(518,142)

(493,575)

2,034,663

1,921,072

Goodwill

29,804

28,897

Other assets

58,492

52,842

Total assets

$

3,165,992

$

2,950,692

LIABILITIES AND STOCKHOLDERS' INVESTMENT

Current liabilities:

Accounts payable

$

70,157

$

69,821

Accrued wages, benefits and related taxes

49,122

56,084

Income taxes payable

32,964

11,659

Other accrued taxes

9,592

7,938

Deferred revenue

21,405

21,646

Accrued maintenance and repairs

17,109

15,391

Accrued interest

15,690

14,249

Other accrued liabilities

23,869

20,714

Deferred taxes

2,394

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

6,989

22,323

Total current liabilities

249,291

239,825

Long-term debt, less current maturities

824,094

764,946

Accrued pension liabilities

127,296

126,647

Other liabilities and deferred credits

49,529

57,196

Deferred taxes

155,303

151,121

Stockholders' investment:

Common stock

372

367

Additional paid-in capital

752,614

731,883

Retained earnings

1,214,157

1,094,803

Accumulated other comprehensive loss

(188,476)

(199,683)

Treasury shares

(26,304)

(26,304)

Total Bristow Group stockholders' investment

1,752,363

1,601,066

Noncontrolling interests

8,116

9,891

Total stockholders' investment

1,760,479

1,610,957

Total liabilities and stockholders' investment

$

3,165,992

$

2,950,692

 

BRISTOW GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Six Months Ended   September 30,

2013

2012

Cash flows from operating activities:

Net income

$

136,796

$

54,630

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

Depreciation and amortization

46,677

44,693

Deferred income taxes

7,352

(4,592)

Write-off of deferred financing fees

12,733

Discount amortization on long-term debt

1,722

1,772

Loss on disposal of assets

4,785

6,577

Gain on sale of unconsolidated affiliate

(103,924)

Stock-based compensation

6,625

5,523

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

(8,061)

(2,866)

Tax benefit related to stock-based compensation

(4,234)

(433)

Increase (decrease) in cash resulting from changes in:

Accounts receivable

28,508

20,786

Inventories

1,926

(46)

Prepaid expenses and other assets

8,940

729

Accounts payable

(2,577)

(3,426)

Accrued liabilities

5,756

11,777

Other liabilities and deferred credits

(10,548)

(226)

Net cash provided by operating activities

132,476

134,898

Cash flows from investing activities:

Capital expenditures

(339,559)

(113,405)

Proceeds from asset dispositions

155,603

96,376

Proceeds from sale of unconsolidated affiliate

112,210

Investment in unconsolidated affiliate

(7,153)

Net cash used in investing activities

(71,746)

(24,182)

Cash flows from financing activities:

Proceeds from borrowings

160,146

Debt issuance costs

(15,152)

Repayment of debt

(117,748)

(24,300)

Partial prepayment of put/call obligation

(27)

(33)

Common stock dividends paid

(18,138)

(14,297)

Issuance of common stock

11,550

7,869

Tax benefit related to stock-based compensation

4,234

433

Net cash provided by (used in) financing activities

24,865

(30,328)

Effect of exchange rate changes on cash and cash equivalents

12,303

6,411

Net increase in cash and cash equivalents

97,898

86,799

Cash and cash equivalents at beginning of period

215,623

261,550

Cash and cash equivalents at end of period

$

313,521

$

348,349

 

BRISTOW GROUP INC. AND SUBSIDIARIES

SELECTED OPERATING DATA

(In thousands, except flight hours and percentages)

(Unaudited)

Three Months Ended   September 30,

Six Months Ended   September 30,

2013

2012

2013

2012

Flight hours (excluding Bristow Academy and unconsolidated affiliates):

Europe

16,871

15,900

33,165

33,136

West Africa

11,396

10,635

23,112

21,389

North America

16,419

20,561

32,341

40,730

Australia

2,263

2,961

5,057

5,753

Other International

3,633

4,981

6,998

9,158

Consolidated

50,582

55,038

100,673

110,166

Operating revenue:

Europe

$

156,352

$

124,993

$

293,511

$

248,228

West Africa

75,875

65,273

151,654

131,628

North America

60,353

56,982

118,588

109,607

Australia

35,326

38,448

73,539

76,619

Other International

32,150

32,085

65,043

65,312

Corporate and other

19,793

8,817

37,908

16,237

Intra-business unit eliminations

(1,219)

(647)

(2,066)

(1,026)

Consolidated

$

378,630

$

325,951

$

738,177

$

646,605

Operating income (loss):

Europe

$

32,958

$

27,008

$

52,979

$

48,884

West Africa

18,231

13,430

37,484

29,561

North America

9,164

6,130

17,287

12,605

Australia

2,508

6,829

5,788

13,338

Other International

8,654

10,354

27,096

17,741

Corporate and other

(14,516)

(15,161)

(25,795)

(28,231)

Loss on disposal of assets

(3,064)

(1,262)

(4,785)

(6,577)

Consolidated

$

53,935

$

47,328

$

110,054

$

87,321

Operating margin:

Europe

21.1

%

21.6

%

18.1

%

19.7

%

West Africa

24.0

%

20.6

%

24.7

%

22.5

%

North America

15.2

%

10.8

%

14.6

%

11.5

%

Australia

7.1

%

17.8

%

7.9

%

17.4

%

Other International

26.9

%

32.3

%

41.7

%

27.2

%

Consolidated

14.2

%

14.5

%

14.9

%

13.5

%

Adjusted EBITDAR:

Europe

$

55,190

$

43,245

$

96,682

$

82,909

West Africa

23,075

17,297

46,795

38,460

North America

18,692

11,767

35,715

23,967

Australia

7,413

10,766

14,187

21,091

Other International

12,648

14,169

34,833

25,715

Corporate and other

(8,510)

(12,322)

(16,406)

(23,415)

Consolidated

$

108,508

$

84,922

$

211,806

$

168,727

Adjusted EBITDAR margin:

Europe

35.3

%

34.6

%

32.9

%

33.4

%

West Africa

30.4

%

26.5

%

30.9

%

29.2

%

North America

31.0

%

20.7

%

30.1

%

21.9

%

Australia

21.0

%

28.0

%

19.3

%

27.5

%

Other International

39.3

%

44.2

%

53.6

%

39.4

%

Consolidated

28.7

%

26.1

%

28.7

%

26.1

%

 

BRISTOW GROUP INC. AND SUBSIDIARIES

AIRCRAFT COUNT

As of September 30, 2013

(Unaudited)

Aircraft in Consolidated Fleet

Percentage

of Current Period

Operating

Revenue

Helicopters

Small

Medium

Large

Training

Fixed

Wing

Unconsolidated

Affiliates (3)

Total (1)(2)

Total

Europe

40

%

10

54

64

64

West Africa

21

%

9

26

6

3

44

44

North America

16

%

60

24

11

95

95

Australia

10

%

2

7

15

24

24

Other International

9

%

2

32

13

47

127

174

Corporate and other

4

%

76

76

76

Total

100

%

73

99

99

76

3

350

127

477

Aircraft not currently in fleet: (4)

On order

15

42

57

Under option

22

41

63

_________

(1)

 Includes 26 aircraft held for sale and 76 leased aircraft as follows:

Held for Sale Aircraft in Consolidated Fleet

Helicopters

Small

Medium

Large

Training

Fixed

Wing

Total

Europe

West Africa

1

1

North America

19

19

Australia

Other International

4

4

Corporate and other

2

2

Total

19

5

2

26

Leased Aircraft in Consolidated Fleet

Helicopters

Small

Medium

Large

Training

Fixed

Wing

Total

Europe

1

20

21

West Africa

1

1

North America

1

13

3

17

Australia

2

2

3

7

Other International

Corporate and other

30

30

Total

3

17

26

30

76

 

(2)

The average age of our fleet, excluding training aircraft, was 11 years as of September 30, 2013.

(3)

The 127 aircraft operated by our unconsolidated affiliates do not include those aircraft leased from us. Includes 56 helicopters (primarily medium) and 29 fixed wing aircraft owned and managed by Líder, our unconsolidated affiliate in Brazil, which is included in our Other International business unit. On July 14, 2013, we sold our interest in an unconsolidated affiliate operating 64 aircraft in Europe.

(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. 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   September 30,

Six Months Ended   September 30,

2013

2012

2013

2012

(In thousands, except

 per share amounts)

Adjusted operating income

$

59,087

$

46,274

$

117,752

$

93,276

Loss on disposal of assets

(3,064)

(1,262)

(4,785)

(6,577)

Special items

(2,088)

2,316

(2,913)

622

Operating income

$

53,935

$

47,328

$

110,054

$

87,321

Adjusted EBITDAR

$

108,508

$

84,922

$

211,806

$

168,727

Loss on disposal of assets

(3,064)

(1,262)

(4,785)

(6,577)

Special items

101,836

2,316

101,011

622

Depreciation and amortization

(23,858)

(23,321)

(46,677)

(44,693)

Rent expense

(23,314)

(15,282)

(46,375)

(31,556)

Interest expense

(9,078)

(8,597)

(29,448)

(17,371)

Provision for income taxes

(41,146)

(8,342)

(48,736)

(14,522)

Net income

$

109,884

$

30,434

$

136,796

$

54,630

Adjusted net income

$

46,504

$

29,153

$

83,544

$

58,425

Loss on disposal of assets

(2,438)

(990)

(3,780)

(5,196)

Special items

66,540

1,505

57,728

101

Net income attributable to Bristow Group

$

110,606

$

29,668

$

137,492

$

53,330

Adjusted diluted earnings per share

$

1.27

$

0.80

$

2.28

$

1.60

Loss on disposal of assets

(0.07)

(0.03)

(0.10)

(0.14)

Special items

1.81

0.04

1.58

Diluted earnings per share

3.01

0.82

3.75

1.46

 

Three Months Ended   September 30, 2013

Adjusted

Operating

Income

Adjusted

EBITDAR

Adjusted

Net Income

Adjusted

Diluted

Earnings

Per

Share

(In thousands, except per share amounts)

Gain on sale of unconsolidated affiliate (1)

$

$

103,924

$

67,897

$

1.85

Inventory allowances (2)

(1,539)

(1,539)

(1,000)

(0.03)

Alaska closure (3)

(549)

(549)

(357)

(0.01)

Total special items

$

(2,088)

$

101,836

$

66,540

1.81

Three Months Ended   September 30, 2012

Adjusted

Operating

Income

Adjusted

EBITDAR

Adjusted

Net Income

Adjusted

Diluted

Earnings

Per

Share

(In thousands, except per share amounts)

Líder correction (4)

$

2,316

$

2,316

$

1,505

$

0.04

Total special items

$

2,316

$

2,316

$

1,505

0.04

Six Months Ended   September 30, 2013

Adjusted

Operating

Income

Adjusted

EBITDAR

Adjusted

Net Income

Adjusted

Diluted

Earnings

Per

Share

(In thousands, except per share amounts)

Gain on sale of unconsolidated affiliate (1)

$

$

103,924

$

67,897

$

1.85

Cancellation of potential financing (5)

(8,276)

(0.23)

Inventory allowances (2)

(2,364)

(2,364)

(1,536)

(0.04)

Alaska closure (3)

(549)

(549)

(357)

(0.01)

Total special items

$

(2,913)

$

101,011

$

57,728

1.58

Six Months Ended   September 30, 2012

Adjusted

Operating

Income

Adjusted

EBITDAR

Adjusted

Net Income

Adjusted

Diluted

Earnings

Per

Share

(In thousands, except per share amounts)

Líder correction (4)

$

2,784

$

2,784

$

1,809

$

0.05

Severance costs for termination of a contract (6)

(2,162)

(2,162)

(1,708)

(0.05)

Total special items

$

622

$

622

$

101

 

_________

(1)

Relates to a gain resulting from the sale of our 50% interest in the FB Entities for £74 million, or approximately $112.2 million.

(2)

During the six months ended September 30, 2013, we increased our inventory allowance by $2.4 million as a result of our review of excess inventory on aircraft model types we ceased ownership of or classified all or a significant portion of as held for sale; $1.5 million of this allowance was rewarded during the three months ended September 30, 2013. A majority of this allowance relates to small aircraft types operating primarily in our North America business unit as we continue to move toward operating a fleet of mostly large and medium aircraft in this market.

(3)

Relates to a charge of $0.5 million associated with the planned closure of our Alaska operations which related primarily to employee severance and retention costs.

(4)

Relates to a calculation error related to Líder that affected our earnings from unconsolidated affiliate by $2.8 million.

(5)

Relates to a charge to interest expense of $12.7 million, resulting from the write-off of unamortized deferred financing fees related to a potential financing in connection with our bid to provide SAR services in the U.K. During the June 2013 quarter, we increased our borrowing capacity on our revolving credit facility from $200 million to $350 million and cancelled this potential financing.

(6)

Relates to $2.2 million of severance costs related to the termination of a contract in the Southern North Sea in the September 2012 quarter.

 

 

SOURCE Bristow Group Inc.



RELATED LINKS

http://www.bristowgroup.com